March 2015 Business News Bulletin INSIDE EDITION: Destined to success... Annual evaluation by C.D.E. 2 First Thermoflex/LPG installation in Germany 2 Dear All, PetroForum Africa 2015 3 A quick view on the start of 2015. Certificate of Credibility by Creditreform Positive note in Petrotank South Africa (Pty) Ltd 3 4 In March we participated at Petroforum Africa, the yearly African conference for service station equipment. A lot of oil companies were represented and we had very good one to one sessions during those 3 days. Stainless steel tanks 4 In the mean time our South African factory accelerates its production efficiency and is getting closer and closer to our other factories. Workshops for African customers Petrotank sponsors annual Golf Day Art contest for children organized by the Social Fund of CGH Polska CGH Polska completed a project for waxes and oils factory in Swisłocz, Belarus The 20 th anniversary of work at CGH Polska "Smiling day for children from the orphanages 5 5 6 7 8 8 Morocco used the calmer winter months to change the blasting installations and convert them to turbine systems; first tests look very promising. In Poland a special programme has started to train and educate young people to become quality welders concluding with a UDT certificate proving their skills and giving them more opportunities in our competitive industrial world. I wish you a warm Spring in Europe and Fall in South Africa!!! Kind regards, Chris D Hondt Freight companies in South Africa 9
PAGE 2 B USIN ESS N EWS B ULLET IN Annual evaluation by C.D.E. We are proud to announce that CGH Belgium has obtained once again an almost perfect annual evaluation from C.D.E. in France for the delivery of tank parts. For several years that we have received an "A-rate" supplier assessment. This assessment is part of C.D.E.'s quality assurance system, and their goal is to bring all of their suppliers of parts which have an affect the quality of their products at level A. This proves that our efforts to supply the best possible quality in the shortest possible delivery time are highly appreciated by C.D.E. and that they are very satisfied with our relationship in general. For sure, this result is thanks to excellent cooperation between the two CGH affiliates: CGH Polska & CGH Belgium, who do their utmost to keep every customer satisfied. We are planning to keep-up this good work for the future and we will try to expand our cooperation with C.D.E.. First Thermoflex/LPG installation in Germany LPG equipment manufacturer, CGH Belgium s new partner for Thermoflex/LPG in Germany has completed its first project in the German market. The Thermoflex/LPG pipe was installed at a station in Frechen connecting a 6.400 litre underground LPG tank with a dispenser. As this was the first Thermoflex/LPG project in Germany the technicians were trained on-site by CGH Belgium. The crew was clearly surprised by the simplicity, the speed and safety of the Thermoflex/LPG piping system. The company invested in a small portable Hydroscand H16P crimping machine to facilitate the crimping process in limited spaces. This crimping equipment was supplied by CGH Belgium together with the Thermoflex/LPG reels and couplings. After this successful pilot project, our German partner will start a marketing campaign promoting the Thermoflex/LPG pipes in the German market and in the regions were they are also present. CGH Belgium is looking forward to this new partnership.
MAR C H 2015 PAGE 3 PetroForum Africa 2015 PetroForum Africa 2015 took place at The Maslow Hotel in Johannesburg from 2-3 March. Together with the meetings program, there were conference sessions, workshops and site visits to local service stations. The third PetroForum for Africa is the Continent s most important gathering of fuel retail and fuel distribution specialists. As an invitation-only event, the forum provides a secure environment for important discussions around the key drivers shaping this fast -developing sector. The 3-day-event provides participants with access to a series of conference sessions, workshops and face-to-face meetings. Through its unique program of one-to-ones, the forum will open doors to new business opportunities and significant savings for attending organisations. PetroForum Africa 2015 brought together over 40 oil companies from across Africa for one-to-one meetings and networking. Taking the Silver partnership at the forum was the ideal opportunity for Petrotank RSA and also for CGH Group in general to inform a large group of international customers about our products, activities and new developments. Certificate of Credibility by Creditreform Creditreform Rating Agency, having analysised CGH Polska s financial reports and credibility, granted their Solvency Credibility Certificate on 3 rd of March 2015. We are pleased to announce that the overall assessment of the financial standing of our company, in particular payment capability and creditworthiness, was rated as very good, and the granted Creditreform scoring of 237. Creditreform was established in 1879 in Germany and now it is one of the world's three largest organizations involved in the assessment of the creditworthiness of companies and debt collection and accounts receivable management.
PAGE 4 B USIN ESS N EWS B ULLET IN Positive note in Petrotank South Africa (Pty) Ltd The New Year kicked off on a very positive note!! We received an order for 6 x 45 m 3 double skin underground tanks for aviation fuel storage. The tanks are complete with an internal coating which makes them suitable for the aviation fuel. We have also received an order for 100 m³ Aboveground Tank. At the beginning of February we launched the self bunded mobile tank and received the very first orders soon thereafter. Stainless steel tanks In February CGH Polska completed a project for two double-skin tanks with volumes of 50 m³ (single chamber) and 100m³ (two-chamber), for a new Polish customer. The company is engaged in the implementation of investments in industrial and public buildings; typically turn-key solutions. The tanks which have been ordered are designed for storage of alcohol. Therefore the inner tanks, manhole and piping are made of stainless steel (316L), whereas the outer jackets are made of carbon steel. The tanks were produced at the factory of CGH Polska, and, working with steel which is 6 times more expensive than carbon steel, all staff put 100% attention on quality and perfect results. Except pickling and passivation, all production steps were in-house. This is example of another project, executed and delivered according to schedule, within an agreed time-frame. As the customers were very much satisfied, we hope to receive more orders soon. Double-skin, two-chamber tank with a capacity of 100 m 3 (316L + S235JR) Double-skin, single chamber tank with a capacity of 50m 3 (316L + S235JR)
MAR C H 2015 PAGE 5 Workshops for African customers During the PetroForum 2015 event, held March 2 nd to 4 th in the Maslow hotel in Johannesburg, CGH Belgium and Petrotank RSA conducted a workshop on double skin steel/ steel tanks. The highly attended presentation focused on the differences between the European EN12285-1 standard and the local South African standard. In particular the advantages of the polyurethane (Endoprene) coating versus the locally used polyester and glass reinforced polyester were explained. It was further made clear to the audience that Petrotank s highly automated manufacturing process is the only path to high quality tanks needed for the safe underground storage of hydrocarbons. The last part of the presentation showed the various innovations made possible with double skin steel / steel tanks. They include pre-fitted chassis for improved safety during transport and handling at the building site, pre-fitted manways and compact stations completely assembled in the factory. The combination of a compartmented tank with a manifold shows how the oil company s marketing departments get the flexibility they are looking for. The workshop was an excellent occasion for both CGH Belgium and Petrotank to present their product range and professional services. On Friday, 20 February, Petrotank Bloemfontein together with a befriended company, joined forces in hosting their annual golf day. Petrotank was the main sponsor of this event that was hosted by Bloemfontein Golf Club. One hundred and forty four golfers participated in this event. Golfers from Cape Town to Pretoria attended the day. Petrotank earmarked this event to display Aboveground tanks to the farming community. With the current electricity crisis we are experiencing in South Africa, storage facilities for backup power supply is of utmost importance. With farms being far and wide apart the community is looking at the possibility of installing Aboveground tanks to make accessibility to Diesel easier. According to Mr Boet Wilken, Chairman of the Southern Free State Agricultural Union, the day was a huge success and he thanked Petrotank for their contribution to the community. Petrotank sponsors annual Golf Day
PAGE 6 B USIN ESS N EWS B ULLET IN Art contest for children organized by the Social Fund of CGH Polska At the end of December, the Social Fund of CGH Polska once again organized the Season s Art Contest for the children of CGH Polska employees. As usual, the competition attracted a lot of interest and many interesting and inventive artworks were sent in. Most of the drawings pertained to the activities of CGH Group. The jury split contestants into the three age groups - 0-6 years, 7-11 years, 12-15 years. The main awards for the competition were vouchers to the kids store. On top of that, each participant received two gifts 2015 wall calendar with her / his own artwork and an interesting book. List of winners in the contest: Weronika Kończal, 13 years, The Winner Krzysztof Pakulski, 12 years, Distinction Maja Senska,15 years, Distinction Kamil Włoczewski, 9 years, The Winner Przemysław Iwan, 11 years, Distinction Jakub Olwig, 7 years, Distinction Jan Cieślak, 4 years, The Winner Tomasz Iwan, 4 years, Distinction Amelia Piekut, 2 years, Distinction Many thanks to the children, who took up the challenge and tried their best in the competition.
MAR C H 2015 PAGE 7 CGH Polska completed a project for waxes and oils factory in Swisłocz, Belarus In February 2015 CGH Polska finished the third - and the last - stage of a project for a Byelorussian waxes and oils factory in Swislocz. During the first stage of the project, CGH Polska produced and delivered 24 vertical tanks: 16 with volume of 80 m 3 and 8 with volume of 50 m 3. All the tanks were equipped with heating cables, and covered with 100 mm insulation with aluminium plates. Our professional approach to the customer resulted shortly in the next order for another 4 vertical tanks with volume of 50 m 3 each. The design was the same as in the first stage. In parallel negotiations for stage 3 continued for the delivery of 29 aboveground vertical tanks with volumes of 10 m 3, 4 m 3 and 32 m 3. Shortly after delivery of stage 1, CGH received the order. Thanks to the strong commitment of our team at CGH Polska, we delivered to the factory in Swislocz a total 57 vertical, heated and insulated tanks within the period May 2014 until February 2015. Below a few photos showing the tanks at our factory from the current delivery. 10 m 3 tank during installation of heating cables. 10 m 3 tank during insulation process. Railings for 10 m 3 tanks ready for shipment. Tank with platform frame. Finished tanks waiting for shipment.
PAGE 8 B USIN ESS N EWS B ULLET IN The 20 th anniversary of work at CGH Polska On 9 th of February 2015 Mrs. Anna Strzałkowska celebrated her 20 th anniversary of work at CGH Polska. Anna has been working in our Bydgoszcz factory for 20 years, and was employed in the company Stel Car (first name of CGH) by Willy Carpentier himself, on 6 th of February 1995. Congratulations and we wish you further professional success and prosperity in your personal life!!! On the left: Anna Strzałkowska, Łukasz Codro, Andreas Veit, Marta Adamczak, Krzysztof Jańczak. "Smiling day for children from the orphanages During Christmas CGH Polska supported the charity event, organized by a very popular newspaper in the region (Gazeta Pomorska). Through that action more than 200 children from orphanages and other childcare centers in the region had a chance to participate in games and contests, which took place at a big kids entertainment center in Bydgoszcz (Family Park). All the orphans could use mega slides, pits filled with plastic balls, climbing wall, rally cars. Kids curious about science had a chance to participate in activities with Professor Inquisitive. For all the children these were unforgettable moments, bringing lots of smiles and joy to their faces.
MAR C H 2015 PAGE 9 Freight companies in South Africa Freight companies are now obliged to haul Petrotank s tanks only with a YELLOW truck!!! uups..this one didn t comply!!! CGH Group News Bulletin Srebrna 39 85-461 Bydgoszcz, Polska Tel: +48 52 370 6666 Faks: +48 52 370 6660 E-mail: katarzyna.legawiec@cgh.com.pl