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Metal Cutting Factory
Case Study:Metal Cutting Factory

Background

Founded in 1952, this manufacturer of metal cutting tools has become one of Israel’s most profitable companies over the past decade, with subsidiaries in 60 countries, and factories in Europe, Asia, and the Americas. The company specializes in precision tools for the automotive, aerospace, and die-and-mold industries. On May 5, 2006, Berkshire Hathaway acquired 80% of the company for $4 billion.

A third of the company’s 6,000 employees are based at its Tefen headquarters, in the Galilee in northern Israel, where most of its research and development and much of its production take place.

Original Situation

The company’s Tefen factories were powered by over 1000 magnetic ballast 400 watt HID lamps. The factory suffered from continually declining illumination levels, caused by a wall blackening effect in each lamp that, over time, degraded the lumen output.

Metrolight approached the company with a solution for these declining illumination levels, which promised to significantly reduce their current energy and maintenance costs.

The Solution

The Metrolight solution included 400 watt Metrolight Smart Electronic Ballasts for HID™ dimmed to 280 watt level. These were all connected to a central computer running the Metrolight Control™ solution, for additional smart energy savings.

The Result

The company gained energy savings of 52% while nearly doubling light output, despite using lower wattage lamps. This light output was maintained even after four years of use.
Features Before Installation After Installation
Lamp Power Wattage / Setup 400 Watts 240 Watts
Power Consumption W 485 256
Lumens Measured 350 Lumens 650 Lumens
Operating Hours 24 24
Electricity Cost $ 0.10 0.10
Total Installation Cost $ - $240,000
Total Annual Electricity Cost $ (US$) $509,832 $269,107
Average Annual Maintenance Cost1 (US$) $8,640 $4,608
Total Annual Savings $ $244,757
ROI 0.98
Notes:
1. Relamping every 2 years with magnetic ballast and 5 years with Metrolight Smart Electronic Ballast for HID™

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