1. ATEX ZONE 2 HAZARDOUS DUTY™ MOTORS

2. Background ATEX = “Atmosphere Explosible”
European Union (EU) Directive 94/9/EC
Mandatory (by law) for covered equipment placed into service July 1, 2003
Covers equipment with potential ignition source, or components of equipment, such as electric motors

3. Requirements for certification
“Notified Body” conformity assessment:
EC Type examination (inspection of design)
Production Quality Assurance
Product Verification
Internal Production Control
Must have CE mark to confirm compliance
ATEX directive based on CENELEC and IEC standards

4. Area Classification Class I - Flammable gases, vapors & mists
Zone 0 “Explosive continuously”
Zone 1 “Explosive under normal conditions”
Zone 2 “Explosive under abnormal conditions”
Class II - Combustible dusts
Zone 20 (same as Zone 0, for dusts vs gases)
Zone 21 (same as Zone 1, for dusts vs gases)
Zone 22 (same as Zone 2, for dusts vs gases)

5. Categories of Use Categories M1 and M2 refer to mining
Categories 1G and 1D refer to Zone 0
Category 2G - Zone 1/Gas (non-mining)
Category 3G - Zone 2/Gas (non-mining)
Category 2D - Zone 21/Dust (non-mining)
Category 3D - Zone 22/Dust (non-mining)

6. Equipment Groups Group I (applicable to mining equipment)
Group II (non-mining):
Group IIA (propane-type gases)
Gases covered under NFPA Group D
Group IIB (ethylene gases)
Gases covered under NFPA Group C
Group IIC (acetylene and hydrogen)
Gases covered under NFPA Groups A and B

7. Class II Flammable gases, liquids and mists
Group IIA - Propane, acetone, ammonia, benzine, butane, ethanol, gasoline, hexane, methane, natural gas, naphtha
Group IIB - Ethylene, ether, ethyl
Group IIC - Acetylene, hydrogen, butadiene, ethylene oxide, propylene oxide, acrolein

8. Class II Combustible Dusts*
Group E - metal (N/A from Marathon)
Group F - coal, coke, carbon black, charcoal
Group G - grain, flour, wood, plastic, chemical
Noted as “D” on nameplate marking
* ATEX does not define dust groups, as categorized for gases (eg. IIA, IIB, IIC)

9. Class III Ignitable Fibers & Flyings
Class III locations
Division 1: Easily ignitable fibers or materials producing combustible flyings are handled, manufactured or used.
Division 2: Easily ignitable fibers are stored or handled.
No material groups defined
Not available from Marathon Electric

10. Class I; Zone 0, 1 & 2 Protection Methods
Zone 0 - not applicable to motors
Zone 1:
“Flameproof” (‘d’), IEC50018 compliant
“Increased Safety” (‘e’), IEC50019 compliant
Zone 2:
“Non-Sparking” (‘nA’), IEC50021 compliant

11. Temperature codes

12. Required markings CE Marking
ID # of Notified Body (Intertek Testing & Certification, Ltd.)
EU Explosive Atmosphere symbol
Equipment Group (I=Mining, II=Above-ground/non-mining)
Category (2=Zone 1, 3=Zone 2)
Gas (G) or Dust (D); if both, may list D only
0359
II G
Explosion Protection
Protection Method
Gas Group (omit if Dust or if all gas groups included)
Temperature Code (see previous slide)
IP Code
Ex nA IIC T IP56

13. ATEX markings
CE Mark asserts that equipment meets all essential requirements of the relevant European Directive. It is often accompanied by the Notified Body identification number. “CE” may have originally stood for “Conformite Europeenne” (European Conformity).
Ex Mark is the European Union (EU) Explosive Atmosphere Symbol, and is found on any equipment whose end use or installation may be within a hazardous location as determined by the authority having jurisdiction.
0359

14. Marathon Hazardous Duty™ ATEX Zone 2 Certified motors

15. Marathon ATEX motors NEMA Design B (IEC Design N optional)
TEFC, IP56 (TENV/TEBC optional)
143T-449T frame, HP
EPACT efficiency (NEMA Premium® optional)
Explosion proof construction terminal box
Terminal block (single voltage motors only)
All cast iron construction
1.0 Service Factor
External (foot) ground

16. Marathon ATEX™ motors Inpro/Seal bearing isolator
Class F Max Guard® insulation system
Suitable for use with VFD
External frame ground
IEC and IEEE45 “Marine Duty”
Equipped with thermistors and thermostats
Two year warranty
Made in U.S.A.
Dual-marked* for NA coverage
* Requires investigation on a case-by-case basis.

17. Zone 2 Non-sparking “nA”
Non-sparking enclosure, low temperature
Gas groups IIA, IIB, IIC (marked IIC)
Temperature code varies by product line and power supply (VFD vs line power)
Class I (Gas) coverage
Compliant with IEC50021
Ex nA IIC T3; Group II, Category 3G

18. Typical Nameplate

19. Marketing Strategy
Leverage existing relationships with NA-based OEMs that export equipment
Emphasize lead-time advantage
Target competitive weaknesses (not full line, unknown entity in NA, questionable support, exchange rate)
Sell credibility (knowledgeable sales force, 3rd Party Certification)
Pull through with existing XP business
Target Oil & Gas market, forecasted above-average market performance

20. Oil & Gas Machinery Market circa 2005

21. Oil & Gas Machinery - Overview
Machine Tools - SIC Code
Market Growth Rate Projected - 6.3%
Customer Base - 22 customers
Potential Customers - 336/1026
Market Size - $95 million
Marketshare Leader
Reliance/Baldor, and IEC mfg.
Products - Fractional to 50HP. Strong move to variable speed
Business Plan - Yes
GP % %

22. Oil & Gas Machinery
Industry - This industry comprises establishments primarily engaged in manufacturing heavy machinery and equipment used by mining industries, such as coal breakers, mine cars, mineral cleaning machinery, concentration machinery, core drills, coat cutters, and rock crushing machinery.
Lead Companies - EaglePicher, J T Walker, Park Corp., MIC Industries, ESAB Group, Trumpf, Charles Machine Works, Hurco Co., Carl Zeiss IMT Corp., and Kennametal
Products Produced - Amalgamators, auger mining equipment, cages, car dumpers, clarifying machinery, cleaning machinery, concentration machinery crushers, feeders, grinders, hammer mills, loading machines, ore crushing, washing, screening, pellet mills, pulverizers, separating machinery, and stamping mills.

23. Oil & Gas Machinery
Market Trends - Market trends include embedding control and communications into the product along with providing faster machines, miniaturization, and sensors for machine diagnostics.
Market Size - Motor purchases for fractional and integral motors are approximately $95 million. $1,617 electric motor purchases per employee.
Market Growth Index - 6.3% to 7.3% in 2006.
Market Concentration - The top 12 states in descending order based on shipments are: Michigan, Ohio, Illinois, Wisconsin, New York, California, Connecticut, Pennsylvania, New Jersey, Indiana, Missouri, and North Carolina.

24. Oil & Gas Machinery
Market Drivers - Technical capability/support, field service response, high quality product, on-time delivery, rapid response on product development, sales force available when needed, inside sales rep to respond as needed.
Major Competitors – Reliance/Baldor, and IEC motors
Product Range - Subfractional to integral motors with a strong emphasis on inverter duty and definite purpose motors.
Channels - 60% OEM direct with the remaining purchases through PTDA, Hi-Tech, or NAED distributors (40%)
Opportunities - High speed capabilities, microMAX, “Servo Induction” motors, PMDC, and IEC motors.
Business Plan and Target Customers Identified - Yes

25. ATEX ZONE 2 HAZARDOUS DUTY™ MOTORS