History of Electric Induction Heating

Starting Over

By James Farol Metcalf

Exchange of Letters with Rowan About IMM

To: Inductotherm, Henry Rowan
From: Jim Metcalf
Date: March 11, 1992

Dear Hank,

The situation at IMM Japan is as follows:

(1) I am waiting "at ease" until the vendor of the equipment is selected.

(2) IHI finance company will be the owner of the new equipment. They will lease it to IMM.

(3) The vendor will most likely be a sister company of IMM. The factory is a fully qualified fabrication facility in IWAKUNI with experience in vacuum facilities.

(4) Iwakuni has a business relationship with Fuji Electric and will use them if economic and technical requirements are satisfied.

IMM uses Fuji Trading (Kobe) as their sales agent and are under obligation (not fully understood) to use them as import agents if Consarc is the supplier. Fuji and old relationships was a problem for this project since 1988. Iwakuni has no obligations to Fuji Trading.

Inductotherm has the best proposal on the table at this time based on the technical features of the induction coil. In addition the proposal to use two 750 kW units to match the existing coil and supply 1500 kW at low voltage and low frequency to the new five ton coil led me to recommend Inductotherm as the favored supplier.

It was my intent to discuss stirring with Inductotherm during final purchasing stages so it was omitted from the specifications. Yamaguchi of IMM is aware of the feature but I did not sell him on the potential use of the pulse stirring feature.

A few weeks ago Yamaguchi asked me to specify 12 pulse in lieu of a filter. Last week I found that a filter will be specified which will also include the air melt facility. The staff at Aioi are responsible for the incoming power supply and the harmonics. Inductotherm in Japan know this staff. I did not study the air melt problem since it was our original intention to use the vacuum melting furnace to melt the small amount of metal for their sales. It now seems that air melt sales will be increased. I am not sure if they wish or plan to move the existing air melt facility from Tokyo.

I hope you will find a way to obtain the business.

Jim

I wanted to use Inductotherm equipment because it was the best. I was selling this fact hard in Japan.

INDUCTOTHERM INDUSTRIES INC.
RANCOCAS, N.J 08073
HENRY M. ROWAN, PRESIDENT
March 11, 1992

Mr. James F. Metcalf

Dear Jim:

Thanks for your FAX and the information on the IMM situation in Japan. It sounds most disappointing, and I gather you plan to consult with Iwakuni and Fuji Electric instead of using your unique influence on behalf of Consarc and Inductotherm.

We will keep struggling, of course, but perhaps with too little and too late.

It was nice of you to keep us posted.

Sincerely,
Henry M. Rowan.

I was not worried about my friendship with Rowan. I wanted Yamaguchi to buy the best equipment. I wanted Inductotherm to fight for the business.

To: Inductotherm, Henry Rowan
From: m Metcalf
Date: March 12, 1992

Dear Hank

Your fax letter of yesterday appears to miss the point.

My client is IMM and I am paid to assist them in purchasing and operating the best new vacuum melting facility in the world. Testing of new ideas on this project is my reward.

The new furnace was carefully planned and specifications were issued last October. Leybold made a serious effort to sell their VIDP system and Consarc offered equipment based upon a recent sale to Japan. None of the vendors made a serious attempt to understand the "Zero Leak" concept and the intent to cast bars and electrodes up to thirty feet long.

Inductotherm was given specifications in January and made an excellent proposal which was hand carried to the customer late last month. Your proposal has my highest recommendation. The president of Iwakuni probably thinks I am being partial to Inductotherm.

In an effort to make your offer stronger I sent detailed designs of the furnace motions device for your use on the project.

Iwakuni is a late entry to the project. They are a sister company with qualified manufacturing facilities that have barge facilities which can ship the assembled unit directly to the barge facilities of IMM. They have offered to build the unit to the exact specifications issued by IMM. Costs have not been settled and therefore other vendors are still in the picture.

My unique influence is being used on the behalf of Inductotherm because I believe it is in the best interest of IMM to purchase from you. I can not use any influence on behalf of Consarc because they have not shown an interest in the real specifications.

Please do more than struggle and find the way to win this business. I will help in any way possible. I am not being paid during the selection process and seek no compensation for my assistance to you.

Jim

Rowan saw the possibility of business, and that was always the best way to get his attention.

INDUCTOTHERM INDUSTRIES INC.
RANCOCAS, N.J 08073
HENRY M. ROWAN, PRESIDENT
Date: March 13, 1992

Mr. James F. Metcalf

Dear Jim:

Your March 12 FAX gives new hope. Perhaps I did misinterpret you earlier comments.

We will indeed persevere, and I believe Ralph Goodwin has been or will be in touch with you for any further input you can add.

I really do appreciate your interest.

Sincerely,
Henry M. Rowan.