The version for the print

  • 2007 August 14

    CBI: applying flexible technologies

    Blending can surely be acknowledged as a new stage in production of oil products. It implies mixing of products under certain conditions. Modern blenders are cost-efficient, timesaving, mobile and easy to operate. They make it possible to improve the quality and to produce new types of fuel as well as to ensure fast supply of product to vessels. Tommy Christensen, partner and managing director of CBI Engineering A/S, tells about the advantages of CBI blenders.

     

    - Mr. Christensen, could you, please, tell how the idea appeared to found CBI?

     

    - CBI Engineering A/S was founded in 1980 in Denmark. It was my business-idea realized owing to my technical education and experience. We started with development and servicing of projects for refineries, domestic and export oil terminals, as well as with introduction of environmental programs. The next stage of our activities was the development and introduction of a blender into the world bunker industry. We used to install our equipment all over the world at refineries, bunker terminals, floating storages and bunker barges. Besides, we developed the projects for discharge of rail tank cars and loading of motor transport with oil products.

    In 2001 I entered partnership with Mr. Henrik Naaby, former Managing Director of Danish Steel Mill and today running our Asien office from Bangkok.

     

    - What is the structure of CBI today?

     

    - The company’s main office is in Denmark with production facilities - we outsource most of our production and have own production in Bangkok to support our projects in Europe to become competitive. We also have office in Tallinn (Estonia) - CBI Baltic Engineering - from where we service customers in the Baltic Countries and some Russian clients.

    In total we are 14 employees - technical staff is 10 and administration/sales is 4. For the time being we have some 10.000 man-hours in production in Bangkok. We also have production facilities in Delhi. From India we import the equipment to our Danish workshop for pre-sale acceptance trials. We have licenses for production of blenders in Europe, Asia and USA.

     

    -What are major suppliers of CBI?

     

    - We try to control the development from manufacturing to end-user, and through OEM (Original Equipment Manufacture) agreement with few chosen suppliers we are able to supply equipment at prices were direct from factory - we have focus on added value to our customers and do not enter business we cannot control and support to our customers. Some of our suppliers are Gruppo Isoil (Italy), Shand & Jurs (Chicago), VAF Instruments (Holland), DESMI Pumps (Denmark), VACONO (Germany) and HMT (England).

     

    - Does it mean CBI is not to diversify its business?

     

    - We have mastered two new directions though not within the frameworks of CBI but with participation of our company. In 1997, CBI participated in setting up of Firexpress A/S, the company specializing in development of technologies for firefighting at refineries, oil platforms and large cities where conventional equipment is hard to be applied. In 2000, CBI Track Collector A/S was set up as 100% subsidiary of our company. Its specialization is production of systems for collection of spillage around the rail tracks. Another 100% subsidiary of CBI Engineering A/S was set up in 2002. CBI Marine & Bunker ApS was established to focus on the Go4 Bunker Concept - new concept from Sourcing to Ship Manifold. We facilitate between many players how to improve the business and have control of the entire chain from Refinery to end-user.

     

    - What was your company’s production volume in 2006? What is the sales geography of CBI?

     

    - We have increased production with approximately 20% the last three years but in 2006 we increased with some 60% (15 units were sold) and it seems like 2007 we will increase production as well in the range of 40%.

    Russian customers are at present the biggest market for Blending & Metering products, while England and France for Environmental Protection around Rail Tracks. Asian market is about to open and we have decided to employ three engineers at our office in Bangkok to be educated and trained to support our customers in Asia. Mediterranean and Caribbean are also markets of importance, but yet not developed as Russian market where we have focus these years due to the demand of new technology to improve the day-to-day business.

     

    - When did you enter Russian market?

     

    - First blender was sold to EKOR in 1996 due to the fact that we supplied in Baltic, and people from EKOR were involved in some business in Tallinn and experienced the efficiency and understood at that time to take advantage. They still purchase our products when entering new areas, and do not question at all the supply. They just ask us to deliver as we usually do.

     

    - What CBI equipment is the most popular at the market?

     

    - The most sold blender is the Flex Blender where all the equipment is build into a 10´ or 20´ CSC approved container, which is approved by Russian Maritime Register and ready to place on Bunker Barges and/or Oil Terminals. Bunker Monitor is in a very high demand as well then come flow-meter and finally PC Automation (computerized system, where all signals go to a PC (Computer) and they can automatically decide what quality to blend and following we will measure and calculate in order to give documentation to each customer). Most equipment is placed on Bunker Barges - some 75-80%.

     

    - What are your major competitors?

     

    - Our competitors are, funny enough, our own supplier VAF Instruments from Holland and secondly Jiskoot from the UK but we are the only supplier with the Mechanical Fuel Blender, which is very simple and easy to operate with no electrical components. It is proven to be very low priced, reliable and never have break-down.

     

     

    - What is your company’s development plan for the nearest 3-5 for years? Does the company plan opening of its representative office in Russia?

     

    - We have focus on development of our core-business, Marine & Bunker and Refinery & Terminal with a focus on Asia and further development of the Russian market.

    We have tried before to enter with own company in Russia, but it turned out that the price was added up so much we could not sell anything. Today we are servicing Russian clients direct from Denmark but we have once again asked ourselves if this is the time to establish our own office in St. Petersburg being the biggest single Bunker Market in Russia. No decision is made yet.

     

    - Do you plan to introduce any principally new equipment?

     

    - Yes we focus on being a turn-key supplier of deck equipment for Product Tankers up to 10.000 dwt, well supported by our manufacturing in Asia to find the right price level. And we keep developing the blending concept and a accessories at low price.

     

    - Does CBI develop new equipment alone or do you attract any design companies?

     

    - We carry out all development in own house - then we subcontract some works once defined.

     

    - Are there any blender units capable of production of heavy fuel oil or changing sulfur content in final product? What is the difference between such units? What units are more serviceable and what are the “units of future”?

     

    - Any blending unit can blend what it is asked to, but a blender cannot change the chemistry - what you put into the blender comes out in a decided ratio - then we can add additives etc. to push Pour Point and other but no sulphur. Sulphur comes from crude oil and will stay in final product unless de-sulphurized.

     

     

    - What is your forecast as regards shift in demand for blender units within 5-10 years?

     

    - The coming 5-10 years the demand will increase a lot - this comes from decrease in profit-margins, and all Bunker Barges between 500 to 10,000 dwt can carry a blender and gain profit. We plan develop partnership with Russian oil industry. CBI sees there are perspectives for the development of its business at this market.

     

    - Why do bunker companies need blenders?

     

    - There is a worldwide tendency to enlargement of a bunker market. Decline in profits make the companies seek for business optimization. One of the methods is to increase business efficiency. In particular, it may be raised through application of blender units.

     

    - What would you advise the companies, which are about to acquire a blender?

     

    - Acquisition of a blender should be an investment not waste of money. For that purpose it is important to research the market and the possibilities of different units. It is also necessary to go deeper into the processes, for example, supply of vessel with fuel via blender. It is important to consider the temperature, stability and compatibility of the product, as well as other factors. It is the basis for efficient bunkering.

     

    Note for information:

     

    Tommy Christensen

    Born January 14, 1954 in Assens, island of Fyn, Denmark

    Education: marine engineer, helicopter mechanic. Extra education in oil, financial, designing and ecological spheres.

    1970 - 74: Haarby Varme & Sanitet A/S

    1975 - 77: Frederikssund Oil Burner & Boiler Service

    1977 - 78: Weishaupt A/S - Industrial Burners and Steam Boiler Technology

    1979 - 80: Islef & Hagen A/S / Sophus Berendsen A/S

    In 1980, founded CBI Engineering A/S.

    Traveling 240 days a year. Has a paratrooper’s license and a pilot’s license category «A» for pilotage of single-engine with a capacity of up to 5,700 kg. Keen on diving, driving Harley Davidson.

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