The chart below shows the EPA Tier changes over time.
In the past, Canada has followed the same guidelines for diesel products sold and operated within Canada. Information available at the time this was written indicates that Canada will do the same as the transition is made to EPA Tier 4 Final.
Products having diesel engines under 25 HP will not require emissions after-treatment. There is some additional testing that engine manufacturers must complete for official compliance, but engine manufacturers anticipate being able to complete this testing without difficulty. For Lincoln Electric the diesel engine welder products under 25 HP are the Ranger 305 D and Vantage 300.
What is Changing
For diesel engines over 25 HP the EPA Tier 4 Final standards focus on reducing particulate emissions by 90% which will require the addition of emissions after-treatment. For the engines that Lincoln Electric purchases, the engine suppliers are using different emissions after-treatment methods to meet the new standards. Most products will require case changes to house the after-treatment components. This includes longer cases and changes in the roof area.
In addition to emissions after-treatment, the over 25 HP EPA Tier 4 Final engines will require ultra-low sulfur diesel (ULSD) fuel. This is diesel fuel with no more than 15 ppm (parts per million) of sulfur. This fuel is already in use in the U.S. for on-road diesels. Using fuel with sulfur content higher than 15 ppm will harm the engine, so it will be critical to use the correct fuel.
Each Lincoln Electric diesel engine welder with an EPA Tier 4 Final engine will be given a new K-number. Announcements will be made as the work for each product is completed and becomes available for sale in 2012 or 2013. Sales literature will be updated. Every effort will be made to ensure that the transition process goes as smoothly as possible, and is completed as soon as possible.
Price Increases in Year 2013
The impact of the new EPA Tier 4 Final standards will be substantially higher engine costs which will result in huge price increases for diesel engine-driven welder products sold and operated in the U.S. While final prices have not been established yet, price increases could be up to 50%! Since Canada is expected to follow the EPA Tier 4 Final guidelines, similar price increases are anticipated in 2013 for products to be sold and operated in Canada.
For areas of the world outside the U.S. and Canada, existing diesel welders will continue to be available in 2013, and price changes for 2013 are anticipated to be typical of year-to-year changes.
Lincoln Electric is increasing its manufacturing capacity to accommodate increased diesel engine welder orders in 2012. However, based on the upcoming price increases in 2013, Lincoln Electric recommends that customers take the following suggestions into consideration when making decisions regarding diesel engine welder orders for 2012:
As mentioned above, the engines in the Ranger 305 D and Vantage 300 will not require significant emissions after-treatment. For these engines the cost changes and product price changes for 2013 are anticipated to be typical of year-to-year changes. However, it will still be in your best interests to order earlier in 2012 rather than later in the year for the same reasons.
Note: Because of commitments Lincoln Electric must make in connection with engine purchases, all orders for diesel engine welders in 2012 will be non-cancelable.
Products for Outside the U.S. and Canada
Lincoln Electric plans to continue to offer existing diesel welders for the remainder of the global marketplace with the performance, reliability, price and value that you have come to expect.
Lincoln Electric looks forward to serving your diesel engine welder needs in 2012, 2013 and beyond.