Southern Research and Siemens Business Opportunities January 2004
Southern Research Institute • Not-for-profit business founded in 1941 by Industry to help Industry • About 600 employees • Business Areas: • - Transportation/Automotive research - Drug development and discovery - Materials research and applications - Electromechanical systems - Image analysis research and applications - Environmental and energy - Chemical and biological defense - Homeland Defense Locations: Birmingham, Wilsonville and Fort Mc. Clellan, AL Frederick, MD; Research Triangle Park, NC Annandale, VA; and Fort Leonard Wood, MO 2
Southern Research Automotive Division • Born from initial work with Mercedes. Benz US International in 1998 • Located at the Engineering Research Center in Birmingham, AL • • • 85, 000 ft 2 A comprehensive R&D and testing facilities servicing Automotive clients nationwide. ISO 9001 and ISO 17025 Company 3
Materials Testing for Automotive Structures and Systems • • • Strength Verification and Testing: Thermal Property Analysis Failure Analysis of Components Weld/Bond Testing and Analysis Mechanical Testing of Parts and Systems • Systems and Failure Analysis of: – Electrical Systems and Components – Brake Systems and Components – Powertrain – Connection Systems (tubes, belts, etc. ) – Others • Hardness Verification and Testing 4
Environmental Testing and Simulation • Long-term Aging Studies • Environmental Simulation • -460° to 5000°F capabilities • Thermal Cycling of Parts and Systems • Saltwater Corrosion Testing • Saltwater Fog Testing • Vibration Simulation • Full Vehicle Chamber to be installed 1 st Qtr 2004 5
Noise Vibration & Harshness, Squeak and Rattle Spectrum Technologies Partnership • • • NVH Squeal and Rattle Development Root Cause Analysis Warranty Reduction Stress Analysis 18 years experience Automotive lighting expertise Component to full vehicle testing Environmental capabilities Full NVH program management and Design Sound Enclosures 6
SEM/Failure Analysis Laboratory • • • EDS Capabilities 11 -30, 000 x resolution Failure analysis Material Analysis Characterization of fracture surfaces Identification of inclusions using SEM/EDS Measurement of pearlite spacing Microstructural characterization Compositional analysis High-Resolution Imaging 7
Non-Destructive Evaluation • • • Microscopy verification and Analysis Surface and Contour Profiling Bonding Inspection and Analysis Corrosion Inspection Porosity Detection and Sizing Precision Thickness Gauging of Complex Parts Multiple Layer Inspection Radiography (X-ray) including CT, Scanning of Large Parts Ultrasonic Inspection and Testing Electrical Properties Evaluation Optical Metrology Conventional Metrology 8
High-Performance Computing • • Numerical geometry modeling Numerical mesh generation Scientific visualization and virtual environment technology High performance parallel computation Facility • The Intel® processor-based IBM x 335 Series Linux clusters with a total of 128 -processors • 1 Terabyte storage unit • One-wall stereoscopic display system • • • Fully integrated, projection-based VR system with head-tracking and stereo display which is 10 feet diagonal High resolution 8 ftx 8 ft display wall with a 3 x 3 configuration that is capable of a combined screen resolution of 3000 x 2300 pixels 20 -processor LINUX cluster using Super. Micro Server that is used to drive the projector array of the Vis. Wall. 9
Processing and Process Verification • Thermogravimetric Analysis (TGA) • Differential Scanning Calorimetry (DSC) • Dynamic Mechanical Analysis (DMA) • Constituent Mass and Volume Fractions in Cured Polymer Based Composites • Total and Apparent Porosity • Pore Size Distribution • Effective Porosity • Permeability 10
Specialty Machining • High-Speed CNC 3 Axis Vertical Machining Center • X, Y, Z travel = 60, 29, 26 inches • 20 tool magazine capacity • High-precision lathes (10 -21” swing) • Bridgeport milling machines • Surface grinders • OD grinders • Full sawing and grinding capabilities • High-speed steel to Diamond tooling • Full Welding Capabilities • Metal fabrication shop 11
Current Capabilities - Summary • • • Product R&D Materials R&D Failure analysis Material analysis Component testing Environmental simulation and conditioning • Quality assurance • System analysis and modeling • Specialized machining • Materials testing for automotive structures and systems • Non-destructive evaluation of materials • Processing and process verification • SEM Laboratory • Analytical Chemistry • Catalyst Research • Full program management • NVH (Noise Vibration and Harshness) 12
Our Strategic Partners • Spectrum Technologies • Full NVH laboratory • Light duty chassis dyno facility • Acquisition in progress • University of Alabama at Birmingham • High-performance computing, enabling technologies • Materials science • University of Alabama-Tuscaloosa • Engine dyno facilities • Noise and Vibration 13
Some of Our Current Customers • OEM’s • Mercedes-Benz US International, Honda, AM General • Suppliers • ZF Industries, Dana Corp. , AP Technoglass, CRH North America, Delphi, Continental Teves, • Heavy Truck • Webb Wheel 14
Our Broader Market SRI/ SRA Navistar Toyota 15
SRI/Siemens Growth Opportunities Fuels, Lubricants, Emissions • Strategic hire to drive technology growth • 1 st Qtr 2004 • Joint hire with University of Alabama • Develop emissions business based on established models • Consortium based participation • Develop state-of-the-art facilities in conjunction with UA, Barber Motor Sports Park, and others • Showcase for latest Siemens engine and chassis dynamometer facilities • EPA compliant engine and chassis dyno facilities • Emissions research • Fuels and lubricants development • Test bed for our Green House Gas Technology Center 16
SRI/Siemens Growth Opportunities Noise, Vibration, and Harshness • SRI is acquiring Spectrum Technologies • 6000 ft² of NVH equipment • 18 years of expertise • 2 nd – 3 rd qtr 2004 • Equipment partnerships • 4 wd chassis facilities coupled with a hemi-anechoic chamber • Mileage accumulation dynos • Onboard diagnostics • Durability assessment • Fleet testing • EPA drive cycles 17
SRI/Siemens Phase I Emissions and NVH Related Equipment • Located at the Alabama Institute for Manufacturing Excellence (AIME) center at The University of Alabama. • This would be a public/private partnership between Southern Research and UA to develop stateof-the-art research laboratories for automotive clients that facilitates commercial testing and fundamental research opportunities. • World-wide exposure to our facilities and Siemens equipment 18
SRI/Siemens Phase I - Equipment • 4 wd Chassis Dyno • Suitable for NVH applications • To be coupled with an Anechoic Chamber • Medium Duty Engine Dyno Facility • <450 HP • Certifiable by the EPA • Fuels, lubricants, and emissions research and testing • Heavy Duty Diesel Dyno • Certifiable by the EPA • Fuels, lubricants, and emissions research and testing 19
SRI/Siemens Phase I – Financial Options • Existing space will be modified or new construction will be built to house the equipment • Combination of UA, SRI, State and Federal funds. • Space is already available for the chassis dyno facility • Option 1 is to setup a very attractive lease arrangement where SRI would pick up the lease and operate the facilities. • Possible profit share arrangement for revenue generated on the equipment • Option 2 is to purchase the equipment outright at a discounted price • This is less attractive to us since our capital resources are limited and would have to phase in the Phase I outline. 20
SRI/Siemens Phase I – Benefits • State of the art, world-class research facilities for Southern Research and the University of Alabama • Facilitates new and ongoing research efforts • Helps our local manufacturing base • Additional infrastructure to attract engineering and R&D companies to the area. • Greater exposure of us to Siemens's potential customers for the other services that we provide • Provides a showcase of Siemens equipment to potential Siemens customers • Allows the engineering and sales team access to the equipment to demonstrate the capabilities to their clients making their sales job easier. • Exposes Siemens to all of our customers and associates the brand with “research quality” • Potential tax advantages by providing equipment to not-for–profit entities. 21
SRI/Siemens - Beyond Phase I • Southern Research Institute, The University of Alabama, and our other partners are committed to developing comprehensive automotive R&D facilities in the South to attract the customers, people, businesses, and talent that is necessary to expand our successes in this industry. • Our association with Siemens at this stage can lead us and Siemens to a path of success as we both expand our North American presence. • The short-term need for Phase I equipment will quickly turn into a much larger need for additional equipment as our businesses grow in these areas. By being a partner in our business growth early on, our relationship will grow with expanded facilities and equipment purchases. 22
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