P-rex presentation (to send out)

Founded, 1942 Feed Grain Mills Private Company Audited by PwC 36 Shareholders Merwin Family

Eriez Manufacturing Co.Eriez Manufacturing Co.(dba Eriez Magnetics)(dba Eriez Magnetics)

Eriez Manufacturing Co.Eriez Manufacturing Co.(dba Eriez Magnetics)(dba Eriez Magnetics)

Top Markets Products Sales Employees Global Reach Recycling

Strategy

Worldwide Affiliate LocationsWorldwide Affiliate Locations

Innovation in Scrap Drum Technology

Today’s Scrap Drum Today’s Scrap Drum TechnologyTechnology

Weak zones at the drum edges

Drop zone at the “transfer point”

Declining performance after start up (as they get hot, they lose strength)

The prime evidence, missed “meatballs”

Three major performance Three major performance shortcomings:shortcomings:

The Meatball Issue (or “cannonballs”, The Meatball Issue (or “cannonballs”, “knuckles”)“knuckles”)

A. They should go with the ferrous product• for easy hand picking or• automated separation using x-rayB. They should NOT go with the non-ferrous• damage to thin eddy and induction sensor

belts• will not be separated in the non-ferrous by

eddys or sensory equipment• will report to the fluff pile and

Cause loss of recovery Cause a fluff fire

C. 20 to 50 percent of Meatballs are missed by the current ferrous scrap drums

Weak Zones at the EdgesWeak Zones at the Edges

Electromagnet cross-Electromagnet cross-section section

Steel Core

Width of the Drum Face

Width of Field

Dead Zones at the EdgesDead Zones at the EdgesThe result is less ferrous separation at the edges, missed metals and poor recovery.

This area accounts for roughly 15 to 20% of the surface area of the drum.

The wider the Drum, worse the problem. An Electro-Magnetic Scrap DrumAn Electro-Magnetic Scrap Drum

Dead Zones at edges for other Dead Zones at edges for other drumsdrums

Electro-magnet Transfer Electro-magnet Transfer ZoneZone

This is another manufacturer’s radial design electro drum.

The remaining paint indicates where the drum has less edge strength.

Dead Zones regardless of Dead Zones regardless of ManufacturerManufacturerWhere paint is remaining on the drum shell indicates the weak zone, where ferrous is not attracted.

Drums must be greatly oversized in width to allow for these “weak zones”.

Oversized drums are also over priced drums.

72-Inch Dia. Electro Drum72-Inch Dia. Electro Drum

Working width of drum

Working width of the tray

Weak at the edgesWeak at the edgesElectro coil, a necessary component

Steel core, it does the attraction work

Electro coil “crowds out” valuable core width

The only solution is to oversize the drum in width

This solution is not cost efficient Space for the coil, an inherent Space for the coil, an inherent weaknessweakness

Next shortcomingNext shortcoming• Transfer point along drum face

• Electro drums have two coils:– 1st, to pick-up ferrous from the conveyor and

– 2nd, to transfer the ferrous over the top.

• Area between these two coils is a weakness.

Drop Zone at the Transfer Drop Zone at the Transfer PointPointThe transfer point has reduced magnet force and therefore “drops”.

Coil crowds out valuable internal space

This means lost recovery.

Electro-magnet Cross-section Electro-magnet Cross-section

Carrying Magnet

Pick-up Magnet

Drop Zone at the Transfer Drop Zone at the Transfer PointPoint

The area between these coils (about here) can drop metal creating additional burden and lost recovery

Electro-magnet Transfer Electro-magnet Transfer ZoneZone

Final shortcomingFinal shortcoming• Loss of strength during operation

• Electro drums consume electrical power and,– They heat up, like a light bulb during use

– The higher the heat the greater the loss in strength

• Formula: R2 = R1 x [1 + α x (T2 – T1)]

Operational PerformanceOperational Performance

All electros are strongest at their cold condition.

Losses during heat rise:30% to 50% of its Amp Turns20% to 30% of its Gauss~ 40% of its Force Index

Electros Lose Strength after Start Electros Lose Strength after Start UpUp

Loss of PerformanceLoss of Performancedue to heat due to heat

rise:rise: 60 to 70 percent of their initial strength

Operating gap is effectively reduced from 10 to just 6-inches or less for best recovery.

Losing recovery before noon, least effective during over-time, more hand sorting and

higher waste

Evidence, the missed “Meatballs & Evidence, the missed “Meatballs & Knuckles”Knuckles” Round objects are the most difficult to capture.

Usual items:electric motorsalternatorscrankshaft segments similar itemsoften with high copper

Trouble for the NF system.

This is the “acid test”.

There is a Better Way!Introducing …

The better way…The better way…Eriez P-Rex Eriez P-Rex

1. Greater strength improves recovery

2. Substantially better edge-of-drum strength

3. No “transfer point” drop in magnetic force

4. Nil decline in strength due to heat rise

5. Improved Cost and better Return-on-Investment

Greater Strength Greater Strength at any distanceat any distance60” P-Rex Drum Compared to 72” 60” P-Rex Drum Compared to 72” DrumDrum

3.5” to 6.5”

1100

Field Projection, Electro vs. P-Field Projection, Electro vs. P-RexRex

Electro

P-Rex

Drum Surface

““Edge-effect”Edge-effect”

The teal color is the working area.

The Electro has field reversal at the edge

No Transfer DropNo Transfer DropPermanent Permanent StrengthStrength

Electro Electro StrengthStrength

Temperature Rise EffectTemperature Rise Effect

Hot

Hot Cold

Cold

P-Rex All DayElectro Startup Condition Electro Operating Condition

Electro 60” x 96” Hot & Cold Electro 60” x 96” Hot & Cold ConditionsConditions

Advantages of Eriez P-Rex Advantages of Eriez P-Rex DrumDrumStronger, (at any distance!)

Wider (less edge loss)

Uniform strength over time (no electrical heat rise)

Results:Better Recovery

The P-Rex & the “Green The P-Rex & the “Green Bonus”Bonus”(environmentally and financially “green”)(environmentally and financially “green”)Lower purchase cost (no transformer/rectifier to purchase)

Lower operating cost(no transformer/rectifier to continually power and maintain plus no periodic rewinding of electrical coils)

Lower installation cost(no transformer/rectifier to install, wire and isolate)

P-Rex 60” x 96” DrumP-Rex 60” x 96” Drum

Comparing 72” Electro to Eriez Comparing 72” Electro to Eriez 60” P-Rex60” P-Rex

ERIEZ P-REX

72” ELECTRO

Summary of Summary of AdvantagesAdvantagesEdge-to-Edge Edge-to-Edge Magnetic Field Magnetic Field Electro core is narrower and therefore the field is narrower than the drum P-Rex magnetic material extends nearly to the edge of the drum.

Results in wider andmore efficient separation

Advantages – P-Rex DrumAdvantages – P-Rex Drum

No Drop Zone at the Transfer No Drop Zone at the Transfer Point Point

Consistent magnetic force throughout the transfer point

No dropped ferrous

More efficient separation and more recovery

Advantages – P-Rex DrumAdvantages – P-Rex Drum

Accept the “Meatball” challengeAccept the “Meatball” challenge

Send to Eriez your missed meat balls and we’ll show how the P-Rex will recover them.

More meatball recovery = more income for the operator and less downstream damage.