Issue 9 2015

DistributionNOW has a new face Also: Doing business in Sweden A new greener technology Today’s workers 2015

A new leader grabs the steering wheel with both hands 4 Th e fi rst non-family member to head up operations took over in January 2015. He talks to Velan View about his background and what he hopes to accomplish.

The new face of DistributionNOW 6 Th is supplier partner has seen signifi cant changes in the last few years brought about by two major purchases, a name change, and a spinoff . Th e resulting new company is a major powerhouse.

Success in Sweden requires a good partner… and expertise 4 11 Alnab, Velan’s distributing partner in Sweden, has several ingredients necessary for doing excellent business in that country. Two of those ingredients are the ability to develop top-notch customer relationships and a staff with the right kind of knowledge.

The move to green: Velan adopts new nanostructured coating 15 One way Velan meets its goal of fi nding ways to make the valve business more environmentally friendly is by using new technologies such as the nanostructured coating. Th is coating promises to be a good replacement for hard chrome plating.

Understanding generational diff erences 19 By recognizing and studying the generations that make up today’s workforce—how they interact, how they feel about their work, and what they want in life—companies can gain an edge in attracting and retaining employees.

6 Shutting down safely 23 Nicola Lucchesi, Velan ABV, writes about what procedures should be followed for emergency shutdown valves in off shore safety systems.

Cover photography: Inside DistributionNOW's Edmonton warehouse (see story on page 6). Ron Harrington: Learning teamwork with a diff erent twist From left to right: Bill Patrick, Velan Regional 27 Ron began his professional years as a teacher and coach. He discusses with Manager, Western Canada; Lori Olinyk, DNOW Velan View how that background has translated into a lucrative career in sales. Account Specialist; Kent Langstaff , DNOW Director of Supply Chain; and Rod Hill, DNOW Category Lead – Valves & Automation Introducing: 700 Valve Supply Photo credit: Wiktor Skupinski, Latitude Photography 31 Velan has a new partner in Houston that is helping the company expand its capability in certain specialty valve areas such as high nickel alloys.

Editor-in-Chief: Tracy Fairchild Co-Editors: Judy Tibbs and Genilee Parente Velan Worldwide Headquarters, 7007 Côte de Liesse, Montreal, QC H4T 1G2 Assistant Editor: Charles Rondos Tel: +1 514 748 7743 Fax: +1 514 748 8635 www.velan.com Writers: Tracy Fairchild, Genilee Parente ©2015 Velan Inc. All rights reserved. Design and layout: Kathy Conklin Photography: George Smid; Wiktor Skupinski, Th e Velan name and logo are trademarks of Velan. Latitude Photography, Loïc Pravaz, and Mike Zablotsky Other marks are the trademarks of their respective owners. Printed in Canada

2 | Velan View | 2015 CEO’s message

hese are challenging times in the valve Tindustry as everyone in the energy markets contends with the impact of the low price of oil and strong U.S. dollar. This has likewise been a time of change at Velan. My father retired from his position as Executive Chairman of the Board after 65 years of enthusiastic and devoted service to the company he founded. At the “ripe old age” of 97, he was appointed to the honorary position of Founder and Chairman Emeritus. I was appointed Chairman in addition to my CEO responsibilities. We also successfully hired Yves Leduc this past January as the first non-Velan family member to hold the position of President since the company was founded in 1950. Yves has shown himself to be a strong and passionate leader, and he is determined to bring positive change to the company. I am very happy that we have found such a talented leader to join our company, and I believe that he will have a very positive impact on the future of the company. At first, Yves is taking responsibility for Velan North America as well as for some Together with Rob Velan, who also holds with Hardide, which enables us to offer specific tasks with a global scope. He will an M.B.A. and is now Vice President, Sales nanostructured coatings. And we zero in take on increasing global and corporate Administration (North America), these men on the challenges we face alongside other responsibilities as he gains knowledge and represent the third generation of Velans in companies like us in building a better experience about our company. To read an the business. They are smart, well educated, workforce by understanding what attracts interview in which Yves shares some of and ready to help Yves take the company to new, young talent into our industry. his insights into Velan and the industry the next level. We hope you find this magazine to be in general, go to page 4. As is our tradition in the Velan View, a useful compilation of interesting topics Even though we hired a non-family we have profiled a number of our dis- and people in our industry. If you have President, Velan is still very much a family tributors in this latest issue. We spotlight ideas about topics we should cover or business, and I am glad that my son Dan DistributionNOW, one of our partners people or companies we should profile, returned to the business as Vice President, operating out of western Canada. We also please let us know. Marketing after getting a Masters in talk with part of the management team at I wish you all good health, happiness, Business Administration (M.B.A.). Swedish distributor Alnab Armatur AB, as and success in all your endeavors. Also, Ivan’s son Shane, who has a Ph.D. in well as a new distributor that will help us in Computer Science and Operations Research the specialty valve market: 700 Valve Supply. from the University of Montreal, recently In keeping with our dedication to staying joined the company as Director, Strategic on the forefront of technological design Tom Velan, CEO, Velan Planning and Special Projects. and R&D, we explore our relationship

2015 | www.velan.com | 3 Yves Leduc A new leader grabs the steering wheel with both hands Yves Leduc took over the position of President of Velan on January 26, 2015. His entry into the fold is historically significant because he’s the first non-family member to head up operations.

he Velan family is the backbone which is an exciting field that basically Tof this company, but we felt the affects most of the world today. tremendous growth of the last few years I wanted to join Velan in particular required bringing in someone with a because of its history and foundation. I fresh perspective. We are very pleased to have had the opportunity to work for other Like Velan, Rotax relies heavily on have found someone with the talent and companies with the kind of long proven machining operations, as well as assembly. background that Yves brings to the table,” track record that Velan has. Bombardier And so, as the person responsible for the says Tom Velan, former President and Recreational Products (BRP), for example, development of lean enterprise, I think my current CEO. is a family-run business that has been Austrian experience helped me quickly Yves comes to the company from BRP around since 1942. Companies such as BRP understand Velan’s manufacturing model. Inc., where he was a corporate officer as well and Velan carry a rich heritage, and they Later, coming to North America, I as Vice President and General Manager of tend to have values that are tangible and headed BRP’s largest division, overseeing the North American Division since 2006. authentic—a sturdy base upon which to manufacturing, sales, marketing, logistics, Velan View asked Yves to fill readers in build a platform for success. and network development. on why he’s joined Velan and what he hopes to accomplish. What skills and background have you What are you hoping to accomplish brought to the Velan organization? here at Velan? Why were you interested in working I am a lawyer by background, which gives One of my main areas of effort will be for Velan? me a solid understanding of the rules and to find ways to increase our focus on our Velan has a tremendous reputation for regulations that govern any industry. When customers—not just our global network quality in what it does and how it operates I decided to expand beyond the legal field, of distributors, but also the end users. both in North America and around the I went to work for a global consulting I viscerally believe the customer should world. I wanted to be part of that. company where I gained business and influence most of what we do in product My exposure to Velan began almost eight management perspective. Much of my development, manufacturing, application months before I accepted this position. background with that company and others development, and marketing, as well as I developed a relationship with the Velan has been in the industrial worlds such as service. In addition, Velan could maximize family, got to know the valve industry pulp and paper, chemical, and most recently, its market efforts by borrowing some of the better, and talked to experts about both making recreational products. best practices from the consumer products the company and the industry. My level of At BRP, I had the privilege of running industry, including consistently delivering excitement at the possibility of joining the several business units and being exposed its brand message and its association with company grew steadily over that period. By to almost every key function within the innovation the time of my appointment, I felt greatly company. In particular, I spent six years honored to be selected for this new role by at Rotax in Austria, BRP’s engine division How will you achieve those goals? a company that’s been around well over where, before becoming its General First, I need to spend a good deal of time 60 years and has achieved so much success. Manager, I headed production planning, understanding the company itself because I wanted to be part of the valve industry materials management, supply chain I believe that culture and people are what itself because it’s part of the energy picture, logistics, and project management. truly powers any business today. If you don’t

4 | Velan View | 2015 understand the people, you don’t understand I think there is tremendous opportunity for where the company is coming from or why growth just by marketing effectively (again “One of my main areas of certain decisions were made, and you will here, learning from the retail industry) and miss the boat. making it known what superior valves we effort will be to find ways to I’m immersing myself in this business, make and how they can be used in increas- increase our focus on our walking the plants, talking with employees, ingly challenging environments. customers—not just our discussing strategies, talking to customers global network of distributors, and business partners. The next step, which How will Velan keep up with what’s but also the end users.” I’m working on now, will be to diagnose happening in the valve world? what’s strong and what needs improvement. What I’m finding is that this industry is —Yves Leduc, President, Velan I’ll work with the team on defining the one where innovation needs to be sharply focus areas where we can both leverage our defined in terms of how it will truly create strengths—those areas that make us unique value for existing or new customers. We have we’ve already established within countries, in this world—and identify areas where we these long-established standards to which we can deliver sharper customer solutions need to improve. valves for specific applications such as oil and get closer to the operator. Companies One of our goals will be to identify ways and gas must conform. But it’s our ability that don’t have the global footprint we have in which we can improve delivery to our to understand new customer needs and will be faced with time and knowledge customers. This mandate comes from the demands and quickly adapt existing designs issues that we don’t face because our global fact that industry and manufacturing to new areas that will translate into success connections are already strong. have evolved in the last decade and a half. going forward. Fortunately, Velan is terrific It’s also important for us, however, to Increasingly, companies such as Velan at this because research and development leverage our vertical knowledge. Each of are asked to design and make valves and is in our DNA. Founder A.K. Velan is an our plants and locations has capabilities related equipment created specifically for a engineer himself so it’s always been a central and specialties, and we want to encourage particular end user as opposed to delivering focus of the company. those capabilities, continuously learning stock. Although we still have a solid amount The questions we’ll address moving to use them more efficiently. We want both of straight manufacturing for distributor- forward include how to do more research concentration and flexibility. based stock, new requirements for valves and development and how to target fast- that can address higher temperatures, more growing segments and areas that might be Will Velan address the brain-drain corrosive processes, and other challenges new for us. This should not be a problem issue of retiring employees and the place specific demands on the company. because innovation is the air we breathe. need to bring in new blood and trans- Velan is already quite good at delivering fer knowledge between the two? these types of more specialized valves for What opportunities and challenges I have faced this issue before because of my power plants, refineries, energy companies, do you see in being a worldwide exposure to long-standing companies, and and other end users. But the company has company? I recognize the importance of these issues grown so fast in the last few years, it’s time One of the strengths that Velan has is that in today’s workforce. We’ll need to focus on to step back and assess our situation. We’ll when you look at this company and compare making sure mentoring and training are be looking at how we can improve delivery it with the general landscape, we are already part of regular daily business. We’ll need to and reduce lead times. established and have a strong global foot- find ways to attract the new talent we need. Another area we’re studying is pure print. We have a wealth and depth of knowl- Velan has a great number of incredibly growth opportunity. Velan has built its edge that few other companies have, as well experienced and loyal employees and some reputation on multi-turn gate, globe, and as a terrific brand reputation for quality that are close to retirement. Those employees check pressure seal valves in industries we’ve built up over decades. This provides us and their knowledge are one of the great such as the U.S. Navy and applications an additional opportunity to optimize our resources of this company. Because of this, such as nuclear. But it’s surprising to me operations as markets evolve. we’ll be looking for ways to consistently how relatively unknown some of our other We also have the advantage of closer pass the torch from one generation to products are, such as quarter-turn valves, contact with customers. We are some- the next. |V| V triple-offset valves, and dual-plate check times three or four tiers away from the valves. So we need to look for new areas end use of our valves in a plant or facility. where these products can be used, such as But with the technologies we have today for additional markets in upstream oil and gas. communicating and with the partnerships

2015 | www.velan.com | 5 The new face of DistributionNOW Expertise times expansion equals more opportunity

Employees gather for a group photo inside DistributionNOW’s warehouse in Edmonton, Alberta.

The last two years have seen significant developments for one of Velan’s supplier partners, DistributionNOW (DNOW), which was formerly the distribution services division of National Oilwell Varco (NOV). In 2013, NOV purchased two major companies—the Wilson distribution business segment of Schlumberger Limited and major energy industry supplier CE Franklin. Then, in the middle of the clouds of dust raised by such major acquisitions, DNOW made a strategic decision: In June 2014, it spun off from NOV and became its own distribution company.

he result is a major powerhouse: a creating the new entity, the company has If anyone could make the transition Tcompany that has more than 330 come through with flying colors. smooth for employees, customers, and locations in more than 20 countries and is “We essentially were a 30-year-old child suppliers, it was the leadership at DNOW, an industry leader in providing pipe, valves, living at home whose parent says, ‘it’s time who are highly experienced, seasoned fittings, flanges, valve automation, and a to move out of the house, and oh, by the way, professionals who have been in the business host of other equipment and supplies to the we paid for the new house, for you,’” jokes for many years (see “The history behind the upstream, midstream, and downstream Scott Hauck, President of DistributionNOW relationship with DNOW” on page 10). oil and gas world, as well as the industrial Canada. “It was an exceptionally struc- “Such a major spinoff takes a massive effort markets. For Velan, that offers a huge tured spinoff process as we became our own on every single employee’s part,” Hauck opportunity to expand the relationship and publically traded company (NYSE: DNOW) explains. “You have to start from scratch in promote business in the oil and gas fields. and had absolutely no debt. This positioned every area from setting up human resources Though the spinoff was not an easy task us very well to go out and take the world on to finding the software needed to operate for the many DNOW staff responsible for and grow our business.” the most responsive distribution system,”

6 | Velan View | 2015 he says. “Having said that, the spinoff also “Believe it or not, of the 10 people offers great benefits both for the new com- on my Canadian management team, “I tell my employees that if pany and the employees involved,” he adds. nine of us started out on the job with they’ve been part of what For the company, becoming a new entity a broom in our hands,” Scott says. allowed it to put new systems into place “We’ve lived and breathed through every we’ve done in the last two that are focused specifically on becoming a step up every rung of this ladder.” years, they’ve been exposed top-notch equipment supplier and inventory The CEO and the Corporate President to more change than most manager. For the employees, it gives them both held the same position Scott people get in a 30-year career. experience and background that might did when they all started out in the Our employees took on the otherwise take much longer to gain. company. That speaks very well for “I tell my employees that if they’ve been the company's recruiting process and challenge, dug deep, and came part of what we’ve done in the last two years, provides employees with the opportunity through with flying colors.” they’ve been exposed to more change than for personal and professional growth. —Scott Hauck, President, most people get in a 30-year career. Our That background also includes Scott DistributionNOW Canada employees took on the challenge, dug deep, himself, who began in the business 33 years and came through with flying colors. While ago right out of college, working for one of nothing is perfect, today we are working NOV’s predecessors: National Supply. At the time, “I didn’t know a valve from on fine tuning our entire business through a Volkswagen,” he says. Nonetheless, he continuous improvement processes. It’s a Pushing the broom quickly learned on the job, “starting with journey, not a destination,” Scott says. Scott’s own hands-on experience started crawling all over drilling rigs, refineries, and At the same time, however, one of the in Billings, Montana, where he grew up. power plants,” he says. “In those days my reasons it worked so well for DNOW is He went to Montana State University in customers knew I was green, and they were because of the background of the people Bozeman, where he pursued a business very helpful in making sure I learned their running things: the leaders have a huge management and marketing degree. He was businesses. They taught me how to deliver amount of hands-on experience in the oil recruited by National Supply in 1981, one exceptional customer service to help them. and gas industries—they understand the of the last of a generation to start a career They told me my job was to make their life nuances of how their business works and in such a manner before the oil industry easier and I have lived to that customer how to get things done. crashed later in the decade. service mantra my entire career,” he adds.

DNOW’s headquarters in Calgary, Alberta (left to right): Bob Salmon, DNOW Technical Sales-Valves; Ernie Greig, DNOW Facilities and Construction Product Line Specialist–Valves; Bill Patrick, Velan Regional Manager, Western Canada; Hubert Murphy, DNOW Director of Sales–Total Valve Solutions; Paul Dion, Velan Vice President, Sales, Canada; Scott Hauck, DNOW President Distribution Services, Canada; Natalya Stone, DNOW Business Development Manager; Art Marjadsingh, DNOW Inside Sales; Gerry Drebit, DNOW Corporate Sales Manager; Mark Parekh, DNOW Manager–Major Project Sales; Chad Tuck, DNOW Vice President–Canadian Sales; Leo Shewchuk, Velan Regional Sales Manager, Western Canada.

2015 | www.velan.com | 7 learning about a wide variety of industries up that time because it was incredible,” Scott “Our first priority with Velan with some very helpful customers,” he says. says. Again, he was learning by starting at is to get people to understand After 17 years, opportunity struck in the ground level—this time during a very the form of a promotion to a job in project scary era. Scott’s first trip abroad was to the that upfront price needs to be integration and process design in Houston. Middle East right after September 11, 2001: weighed against the real value: He packed up his family and moved, which There were only nine people on the huge jet Customers who buy Velan will he says was hard, but beneficial. that took him overseas. not be replacing that valve “This business is all about change, and But although the first trip was sobering, anytime soon.” I often tell people that if you don’t like he quickly learned how fascinating interna- change, you should probably be in another tional business was. —Scott Hauck, President, industry. I’ve become adept at designing “By traveling to the different countries DistributionNOW, Canada processes around that change,” he says. and seeing what operations and cultures “I enjoy working with others to create were like there, I found out how much more ways to take cost, time, and effort out of a there was to learn about this business,” By the end of his first year he was man- process. Doing this can bring concrete value he says. aging a facility, which gave him a general to the company and job satisfaction to the The most recent opportunity meant operations background he built upon for employees.” another major change when he and his the next 16 years. In fact, change was also part of his next family moved to Canada, which was much “Eventually I was exposed to every aspect career step. He became Vice President of closer to his roots in Montana. With the of energy production from power plants and International Operations when the company creation of the new DNOW legal entity, refineries to coal mines and steam plants was just starting to go global. He was put in it also provided yet another way to use across a wide variety of products from charge of setting up NOV’s operating system his wide knowledge of the industry and pipes, valves, and fittings to fluid pumping, in nine countries. the processes that help it run, working artificial lift, industrial maintenance repair, “I had to spend a lot of time away from my alongside other leaders who have adapted and operating supplies. I cut my teeth family on the road, but I would never give to change and who know their stuff. “DNOW and NOV before it have a long history. One thing that has remained con- stant throughout is that we see expertise as a key resource,” Scott says. “When you have a leadership group that has ‘been there, done that,’ you have a team that does not need an advisor to tell them how to do their jobs. We know hogwash when we see it, and we hold our people accountable to do their jobs—to fix what's wrong or do whatever it takes, and to do it all with a sense of urgency,” he says. “Our people are our most important asset and the right people thrive in this professional, fast-paced environment.”

The relationship with Velan Because Velan has such a long-standing rela- tionship with DNOW staff as well as NOV’s staff and its predecessors, Scott says the spinoff, as well as the growth brought on by acquisitions, can only mean more business. “I sum up our relationship with Velan DNOW Edmonton employees: Rod Hill, DNOW Category Lead–Valves and Automation; Kent with two words: strategic and collaborative,” Langstaff, DNOW Director of Supply Chain; and Lori Olinyk, DNOW Account Specialist. Scott says.

8 | Velan View | 2015

Why coming to Canada is “returning home” Scott Hauck was delighted when he found out his new Scott is an active conservationist (as he believes we job with DNOW would mean living in Calgary, Canada, all should be), and fought to have drilling that was a city that is a mere eight hours from where he grew scheduled to be completed on his property done in a up in Billings, Montana. manner that would allow the least amount of impact on the environment. Knowing the advanced capabilities In the nine years he worked in Houston, Scott made of drilling technology today, his proposal will gladly be 19 car trips home—a 24-to-30-hour drive one way. considered as an option when the time comes. As much as “My wife and I bundled up three kids, two dogs, and some people would like you to believe otherwise, “no one a hedgehog and drove 1,600 miles each way,” he in our industry wants to hurt the environment and we all explains, a trip made necessary because flying the live here on the same earth and want the best for our kids whole crew was not only expensive but impractical: and future generations,” he says. they needed a car while they were there and where Scott says there is not a more passionate group of people do you put a hedgehog on a plane? than those in manufacturing, who voluntarily regulate However, that’s not all he means by “returning home.” their practices and spend millions on research and development, which they share, to find safer practices and “My greatest passion is the outdoors, and I always process for people and the environment. “We all live in the say Canada is like Montana on steroids,” he explains. same environment, and we all benefit from systems put Enjoying the great outdoors: Scott surrounded by Canada is beautiful, it’s big, and its citizens respect into place to protect our world. It may cost us more to do 1,000 acres of his property in Montana. the land, he points out, with some of the strictest business the right way, but you cannot really put a price on environmental laws in the world. As in Montana, there this,” he says. can make intelligent and informed decisions and have are wilderness areas protected by law forever where all the facts before they make a choice.” access can only be made on foot or on horseback. He adds, “I sit on the board of PSAC (Petroleum Services Association of Canada), and we often marvel at the He says that, “We do this to inform people in our He and his wife own about a thousand acres near misinformation that is out there about the industry. industry, government, the public, and those that might Billings: “On my own land, I don’t even have a cow. The Frankly, that is partially why we exist: to advocate for tend to advocate based on partial information or sound land is there not to serve commerce in any way but to the industry and get both sides of the story in front of bites. We are all in this together and it is our obligation remain a pristine piece of land where the resources will everyone. “The group doesn't exist just to make decisions to make sure we have all the right information,” remain untapped,” he says. that side with oil and gas, but also so people in general he concludes.

Part of the strategy going forward will Bill Patrick (Regional Manager, Western their application issues and their delivery be continuing to spread the word about the Canada), and Leo Shewchuck (Regional requirements as well,” he says. true value of Velan’s product base. Manager, Sales, Western Canada) to develop As with his own staff, Scott credits not “Velan has a distinct product niche, espe- systems for servicing customers so lead times only Bill, but also the rest of the Velan cially in Western Canada where a lot of our are minimized, customers’ projects are not personnel with having the expertise today’s oil and gas business derives,” Scott explains. delayed, and we are the go-to team with customers demand, which he says is an “However,” he says, “many of the customers technical expertise and product,” he says. important part of the distribution world already know that you don’t choose a Velan “Bill Patrick, in particular, is a constant today. valve as much for price as for quality and presence within our company,” he adds. “Bill and the others we deal with at Velan exceptional fit for purpose and application." He knows the oil and gas business and have a strong technical background, they “When we explain to our customers that the technology that goes into it, “so he is educate both our people and, in some cases, you buy a Velan valve for its ability to be a continually working with us as we develop our customers. Our first priority with Velan solution to a problem, they get it. That’s better ways to predict and measure what our is to get people to understand that upfront the way we’ve always sold it,” he says. clients will need,” Scott says. price needs to be weighed against the real Collaboration is part of the DNOW The result for DNOW of the collaboration value: Customers who buy Velan will not be strategy, he adds. The staff at DNOW on inventorying product is stronger relation- replacing that valve anytime soon,” regularly joins forces with Velan staff to ships with existing and new customers. Scott says. |V V| develop better ways to plan and inventory “These strong ties are based on the fact the products, Scott says. that customers see that we look not just at “We are working hand in hand with Paul immediate needs, but future requirements Dion (Vice President of Sales, Canada), and how we can offer a unique solution to

2015 | www.velan.com | 9

The history behind the relationship Timeline DistributionNOW’s relationship with Velan stretches back to the earlier days DistributionNOW has been in business for more than 150 years. Serving the of distribution in Canada—when Velan did business with some of DNOW’s upstream, midstream, and downstream/industrial markets, it now stocks more predecessors. than 150,000 diverse products. Here’s a glimpse of its history:

1862 Oilwell oilfield equipment business established Back to the 80s: Pre-NOV 1878 Oilwell Supply formed During the 1980s, Lytle Specialties was the exclusive distributor of Velan valves from 1894 National Supply formed coast to coast in Canada. During that decade, Velan entered the oil and gas field in a 1921 Wilson Supply formed major way when y-pattern and pressure seal valves were approved by Imperial Oil, 1930 Oilwell Supply acquired by U.S. Steel which was the beginning of a long and successful steam valve program in western 1958 National Supply acquired by Armco Steel Canada. Velan became the sole holder of almost every maintenance, repair, and 1987 National Supply and Oilwell Supply merged to form National Oilwell operation contract for cast and forged steel valves in Canada. 1991 Wilson acquired Tyler Dawson “Many projects, including Shell Peace River and Caroline, were built with wall-to- 1993 Wilson acquired Wallace Company wall Velan products, and we participated in almost every major new project unless 1995 Continental Emsco and Franklin Supply merged to form CE Franklin they were looking strictly for absolute lowest price,” Paul Dion explains. 1996 National Oilwell, Inc. initial public offering (NOI) 1999 Wilson acquired Continental Emsco Co. Towards the end of the 1980s, United Westburne purchased Lytle Specialties along 2000 Wilson acquired Texas Mill Supply with distributors Donaldson, Pyrch & Hume and Dominion Oilfield. 2001 Wilson acquired Van Leeuwen Pipe and Tube Corporation Westburne then merged the three new divisions and added a fourth (RAFF Industrial and Mid-Valley Supply Supply) to form Dosco supply. 2005 National Oilwell and Varco International merged to form National Oilwell Varco (NOV) 2012 National Oilwell Varco acquired Wilson Supply and CE Franklin NOV enters the picture 2014 Distribution segment spins off from NOV to form DistributionNOW In 1999, National Oilwell’s first direct link with Velan occurred when the oil and gas equipment producer acquired Dosco as well as TS&M, a competitor distributor in Manitoba, Saskatchewan, and northern Ontario. Crude oil prices hit $30 per barrel in the early 2000s, which made oil sands projects very attractive. By 2005, prices started rising at unnatural rates to over $100 per barrel. The Canadian dollar hit parity with the U.S. dollar and shelved projects started looking potentially profitable, creating such a demand for products that even more competition came into the country from off shore. Business in Quebec and Atlantic Canada was diminishing while business in Western Canada, especially in the oil and gas areas, was booming. Velan’s relationship with National Oilwell was strengthened in 2006 when National Oilwell acquired Varco, a prolific supplier of oil field equipment, and became National Oilwell Varco (NOV). In mid-2008, the boom in Western Canada came to a halt as the financial crisis hit in the U.S. and heavily leveraged projects were shelved or cancelled. By 2010, the picture improved as the recession ended and almost every Canadian heavy oil project (except most upgrader projects) that had been cancelled went back on the books; new projects sprang up, and the Alberta market exploded once again. By 2012, National Oilwell Varco acquired U.S. company Wilson and then CE Franklin in Canada to become NOV Wilson. The company spun off from NOV and changed its name to DistributionNOW in 2014.

Scott Hauck, DNOW President, Distribution Services, Canada, with Paul Dion, Velan Vice President Sales, Canada.

10 | Velan View | 2015 Success in Sweden requires a good partner… and expertise

ars Eriksson, Operations Manager, Lexplains further what that means. “In our area of the world, it’s not enough just to hold a large stock of inventory and offer low prices,” he says. “You have to be a complete partner that offers technical support, understands the customer’s complete process, and offers very smart solutions to their problems,” he says. Sweden has only nine million people. It doesn’t manufacture very much of the equip- Rolf Arvidsson, Product Manager for ASME Products, with Jan-Erik Larsson, Managing ment used in industry; however, it has thriv- Director, Alnab. ing petroleum, pulp and paper, chemical, mining, and other industries. The suppliers that do well in Sweden are the ones that can There is a principle guiding businesses in the Nordic area of build bridges between manufacturers and the world that Alnab, Velan’s distributing partner in Sweden, the country’s end users. The main building says is responsible for its success: The company recognizes that block of those bridges is expertise. “the products we represent are the bonus of the deal. Yes, we “We are traders here in Sweden and have need to offer the best quality in our products, which is why we been for many centuries. As such, technical knowledge of our customers’ processes is key deal with Velan. But what we’re really selling to our customers to our success,” says Rolf Arvidsson, Product is knowledge,” says Jan-Erik Larsson, Managing Director of Manager for ASME Products and Velan’s the company. main daily contact person.

2015 | www.velan.com | 11 “Alnab built up our technical know-how over time, and we market that knowledge as one of the main values we offer to our customers.” —Rolf Arvidsson, Product Manager for ASME Products, Alnab

Forty years of trade Alnab was founded in 1975 by Arvid Lennart Nilsson, who started selling butterfly valves and steam and con- densate equipment (such as steamtraps, From left: Lars Eriksson, Operations Manager, Alnab; with Karl Laas, Velan Area Sales control valves, boiler equipment, and heat Manager, Germany and U.K.; and Rolf Arvidsson, Product Manager for ASME Products recovery systems). By 1987, when Nilsson at the 2014 Velan Distributor Conference in Mt-Tremblant, Quebec. stepped down and Peter Eriksson took over heading up the company, Alnab had become a market leader. Peter Eriksson to challenges in a particular industry for Velan in the picture doubled business for the company, and so many years. That’s vital to the industry In the 1980s and 1990s Alnab sold only a then decided to sell, the lucky buyer being given today’s marketplace challenges. small share of ASME valves, buying mostly Indutrade, a Swedish company with a “The last decade has seen the loss of a lot from Italian producers. (The greater share strategic plan to grow by acquisition. of personnel in end-user industries,” Rolf of equipment business in Europe is done Jan-Erik, who started with Alnab in 1987 explains. “As a result, we suppliers have a through the European standard—DIN.) at the age of 20, explains why Indutrade real marketplace advantage if we can keep Alnab learned about Velan and its abil- was the right company to take over. up the technical knowhow the industry ities to produce quality ASME products “Indutrade is a company set up to needs because it’s lost those people,” through Wolfgang Maar, who is now Velan’s encourage entrepreneurism,” Jan-Erik Rolf says. Executive Vice President, International explains. “Indutrade grows by acquisition; In other words, “Alnab built up our tech- Sales and Overseas Operations, but worked they acquire companies with technical nical know-how over time, and we market many years previously for Velan Germany. niche expertise. The companies are charac- that knowledge as one of the main values By the mid 2000s, Velan’s reputation also terized by high-tech knowhow and an abil- we offer to our customers,” Rolf says. had reached Nordic shores, and shortly ity to build enduring, close relationships with customers and suppliers. The business A “tall” order from a new kind of company philosophy is based on entrepreneurship, self-determination, and decentralized Through the efforts of Alnab, Velan valves are installed in the new extension of Preem´s bio-refinery, a new and leadership.” revolutionary way of producing diesel that is greener and uses waste products from the pulp and paper industry. That’s a good mix for Alnab’s main A mix of valves are being supplied to Swedish company SunPine, which opened a plant in 2010 that is the first to markets, which are refineries and petro- take what is called “tall oil” and turn it into a product that will be upgraded into a high-quality green diesel at chemical, power/energy, pulp and paper, the Preem Bio Refinery. chemical, steel, and mining. The staff of Tall oil is the waste product of the pulp industry—the black liquor that is a byproduct of wood as it’s ground and 30 employees has a heavy background in processed, then dissolved into a liquid. The resulting substance has chemical properties with favorable qualities engineering, and most of them have many being studied for many purposes. years with the company, learning about For the greener fuel, the tall oil is blended with regular diesel to make a better biodiesel that burns about 16% Alnab’s end-user industries by coming up cleaner than traditional diesel. The new fuel can then be used in the same machines as traditional diesel. with solutions to problems and answers

12 | Velan View | 2015 thereafter, Rob Velan introduced Alnab as Velan’s new strategic partner in Sweden. Today, Stefan Wingerath and Karl Laas (President and Managing Director, Velan Germany and U.K., and Area Sales Manager, respectively) “take very good care of us,” says Jan-Erik. Meanwhile, with the help of Velan’s European team, Alnab has gone from a small market share to “about 85% of the market share in Sweden on ASME gate, globe, and check valves,” he adds. Jan-Erik describes why Velan and Alnab have meshed so well. “The reason it works so well between Alnab and Velan is that both companies have been created by great entrepreneurs; the culture of the companies is very similar,” he says. The other reason is that both companies recognize the importance of having a one- Rolf Arvidsson and Lars Eriksson at the 2014 Velan Distributor Conference in on-one partnership in Sweden. Mt-Tremblant, Quebec.

On their “off” hours floorball. It’s played like hockey with five players and a goalie for each team, but with a big difference: When Jan-Erik, Lars, and Rolf are not wearing their running shoes and a plastic ball on a wooden floor technical expert hats, they are busy pursuing their instead of skates and hockey pucks on the ice. personal passions. Some of those passions have to do with where they live: For example, despite the One thing the team has in common with all of the fact that Sweden is a country where most of the people in Sweden is that they are deeply loyal to population is concentrated in cities, it has a rich their country. abundance of nature, including many lakes, rivers, “Swedish citizens complain about high taxes. But and mountains in the north western area. we love our country. We can go up north and be in Although Lars and his wife love to travel to other a remote area or we can hop on a plane and shortly countries, you can find them at their cottage 300 be in Paris or Naples—somewhere completely Jan-Erik: Another day at the races. kilometers (186 miles) north of Gothenburg most different. When we come back from those trips weekends. abroad, we realize we are quite happy to be here,” northern archipelago of Gothenburg that has about 1,500 Lars says. “With some luck we can see wolves, bear, and elk. residents and is about 2 square miles (5.5 square km) in I take my ATV (all-terrain vehicle ) and go out into size. Rolf moved there as a young man when he fell in love the woods. We do a lot of fishing,” he says. with one of its residents. Rolf also does a lot of fishing, but for a different Jan-Erik on the other hand, takes a little different reason: Rolf lives on Björkö, an island located in the approach to enjoying the terrain and climate. When he was in his late teens, he was a motorcycle road racer, a career he had to give up when he joined the Alnab team and came into work a few times with an arm or a leg encased in plaster. Today, however, he’s returned to the race circuit with a different vehicle: a Porsche 911. “It’s a substitute for my motorcycle days but at least it’s on four wheels instead of two: It’s much safer,” he jokes. Then there are the sports of that country. Rolf developed a reputation in his youth as a tough soccer player, and Lars near his country cottage. Jan-Erik plays a sport that started there in Sweden: Rolf fishing for the catch of the day.

2015 | www.velan.com | 13 Lars explains why. “In Sweden, Sweden: Did you know? companies such as Velan definitely need to • Sweden is the English translation of “Sverige,” a have one strategic partner who has a very word formed from “Svea” (an old name for one of strong local presence. If you have more the nations that formed Sweden), and the word than one partner, end users are confused “rike” or “rige” (which means kingdom). Therefore, by loyalties, a price war begins, and profit Sverige = kingdom of Svea. disappears,” Lars explains. • The Swedish Empire controlled much of the Baltic On the other hand, because technical region during the 17th and early 18th centuries, expertise is such a significant part of the when Sweden was one of the great European value proposition, “your partner supplier powers. It conquered about half of the member states of the Holy Roman Empire. Sweden founded has to know your product’s capabilities overseas colonies, principally in the New World. and how those capabilities can be applied New Sweden was founded in the valley of the to Swedish industries,” Jan-Erik explains. Delaware River in 1638, and Sweden later laid Because most European industries are claim to a number of Caribbean islands. A string of dealing in DIN equipment and only a few Swedish forts and trading posts was constructed industries need ASME equipment, “this is along the coast of West Africa as well. especially critical in Sweden,” says Lars. • Sweden has the highest number of nuclear plants Some of the current projects that Velan per capita, with 10 reactors for nine million and Alnab are working on together are: inhabitants. Turning Torso skyscraper • The Preem refineries. Velan has supplied • Total taxation in Sweden amounts to 54.2 % of GDP, • Sweden has the highest number of patents granted the highest level worldwide. about 8,000 valves for a refinery in per capita of any European country. Swedish inventors Lysekil and one in Gothenburg, both for • The Oresund Bridge connecting Sweden and designed the three-point seatbelt, ultrasound/ECG, new projects and for shutdowns. Denmark is the longest combined road and rail adjustable wrench, pacemaker, computer mouse, • Alnab won the contract to supply all bridge in Europe. flat screen monitor, refrigerator, astronomical lens, and even the modern-day zipper, which featured an the cryogenic butterfly valves for the • Sweden didn't have an official language until 2009. enhanced “separable fastener” with interlocking teeth Skangas LNG project. Velan France • Sweden granted Norway independence in 1905. pulled together and apart by a slider. supplied the valves. • In Gothenburg, Velan valves are part • The Swedish capital, Stockholm, is known as the • If you think ABBA is Sweden’s most signficant export, Venice of the North: the central parts of the city you’re wrong! The engineering sector accounts for of a burgeoning new effort to produce consist of fourteen islands in the bay Riddarfjärden. 50% of output and exports. Telecommunications, the “green diesel” out of wood (tall oil), a automotive industry, and the pharmaceutical industries • Sweden has the highest number of McDonald’s and revolutionary new method of producing are also of great importance. Main export partners are personal computers per capita in Europe. cleaner diesel that is making scientific Germany, United States, and Norway. [Source: www. headlines (see sidebar on page 12). • The Turning Torso skyscraper is the tallest building tradingeconomics.com/sweden/exports, as of February Rolf explains that, “You do not win in Sweden and the second tallest apartment 12, 2015] building in Europe. projects like this without strong local • Sweden’s primary imports include machinery, presence and good customer relationships • One of the richest people in the world, Ingvar petroleum and petroleum products, chemicals, motor with the technical engineers and Kamprad, the founder of IKEA (in 1943), is Swedish. vehicles, iron and steel, foodstuffs, and clothing. applications specialists involved.” |V V|

The Oresund Bridge connecting Sweden and Denmark, the largest combined road and rail bridge in Europe. Photo credit: “Öresundsbron” by Henry von Platen

14 | Velan View | 2015 In keeping with the move to green

Velan adopts Hardide nanostructured coating

Known informally as “fish bowls,” these Velan balls and seats feature prominently in the top-entry ball valve design.

Since its inception in 1950, Velan has taken pride in its innovative and entrepreneurial spirit, pushing to find new designs and technologies to produce high-performance valve solutions. In more recent years, the company also has been called upon to find solutions to technological challenges that are friendly to the environment but still cost effective.

2015 | www.velan.com | 15 10,000 “Most recently, Hardide® 9,000 announced investment in a 8,000 new $7 million manufacturing 7,000 plant in Virginia that will 6,000 help the company further 5,000 roll out its range of specialist 4,000 nanostructured coatings 3,000 across North America.” up to failure (i.e., seat leak) 2,000 1,000 Number of differential pressure cycles Number of differential — Dan Wilson, North American 0 Business Development Manager, Hardide® Coatings Inc. Hard chrome plated ball Hardide coated ball Stellited® seats Stellited® seats

Th e above graph shows the results of a steam endurance test (600 psig at 600°F, 1 cycle per min.) performed on a 3" Class 300 Type M metal-seated ball valve. ne of those solutions will be an alter- Onative to a tried and trusted valve industry tool—hard chrome plating (HCP)— Th is is because leakages don’t just produce has been investigating alternative coatings. which is now under strict environmental emissions; they hamper operating effi ciency That hypothesis, which was formulated in regulation. Velan’s solution, after very tough and increase costs of labor and materials 1995 by economist Michael Porter, states scrutiny and consideration, is nanostruc- needed for repair. And that does not even that strict environmental regulations can tured coatings. consider the added cost of damage to a com- induce efficiency and encourage innovations pany’s reputation. that improve commercial competitiveness. Velan’s innovative drive One of the most recent environmental That’s important in this case because not The company has gone through a period of issues is how to deal with regulations only does the replacement for hard chrome growth over the past decade; revenues have coming out of the European Regulation have to perform to the same standards as increased substantially. What hasn’t changed on Registration, Evaluation, Authorisation HCP, it also needs to meet environmental is Velan’s approach to product development and Restriction of Chemicals. Th e new regulations and be cost-effective enough to and innovative technology. regulations will be here in 2017, and they are improve overall commercial competitiveness. As Luc Vernhes, Corporate Manager, similar to the U.S. Occupational Safety and Having reviewed and tested several Product Innovation and Technology, Health Administration (OSHA) controls alternatives, Velan has identifi ed explains, “Our products are optimized to on HCP. HCP was a proven valve industry nanostructured chemical vapour deposition provide customers with quality, safety, ease solution used for many years. However, (CVD) coatings as the best replacement for of operation, long service life, and low total many industries are now looking for a HCP. In tests, the nanostructured coatings cost of ownership. ‘Quality that lasts’ is not suitable replacement because of highly performed better than HCP for sliding just our tagline, it’s what we put into each toxic hexavalent chromium salts used in wear, scratch, adhesion, toughness, and valve.” the process. corrosion testing in saltwater environments. But innovation is only one key motiva- It will be hard to replace. HCP has Comparing relative costs showed that the tor. Increasingly, the company is looking excellent hardness and good resistance nanostructured coatings kept pace with for ways to provide clean technologies and to corrosive environments. It is also HCP when economy of scale is taken into eco-friendly products. Production plants easy to apply and low cost. However, account and when large volume and pre- are being driven not just by the need to environmentalists have found that even and post-coating operations are in eff ect. lower industrial waste and its eff ects, but by short-term exposure to chromium can In 2007, Luc contacted Hardide Coatings, economic challenges to operate more effi - cause skin irritation. the leading global innovator of low-temper- ciently. For example, today’s valve industry ature CVD tungsten carbide-based coatings, is focused heavily on issues surrounding Economic realities and expressed interest in testing the coating fugitive emissions (FE), which present a In keeping with the principle of “the Porter as a hard chrome replacement. Hardide was particularly important technical challenge. Hypothesis,” the Velan engineering team chosen because it off ers an extensive line of

16 | Velan View | 2015 which the standard HCP coating was not appropriate. For example, this was the case “Velan has also successfully in a corrosive and erosive application found in the petrochemical sector, where metal- used the CVD tungsten carbide- seated ball valves protected by HCP were based coating on all wetted wearing prematurely. Velan collaborated trim parts of the Torqseal with the end user to clearly assess what was triple-offset butterfly valve for causing the premature failure, then selected severe service applications. the CVD tungsten carbide-based coating as the most suitable alternative material. Since Without Hardide, this would then, metal-seated ball valves provided with not have been possible.” A micrograph of Hardide coating on CVD tungsten carbide-based coating have — Craig Bekins, Director, austenitic stainless steel. been installed in these particular severe- Autoclave Projects and Product service applications and have performed nanostructured CVD coatings that signifi- to satisfactory results while radically Manager, Torqseal, Velan cantly increase the life of critical metal parts increasing meantime between failures. operating in abrasive, erosive, corrosive, and Another prime example of Velan usage of chemically aggressive environments around CVD tungsten carbide-based coating is for valves providing either lower cycle life or the world. industries that preclude plating processes, higher cost than conventional HCP. Velan Dan Wilson, North American Business such as certain nuclear power plants. now has experience with CVD tungsten Development Manager, and Robin Gillham, In those applications, Velan traditionally carbide-based coating for those services Flow Control Business Development offered alternative wear-resistant materials and can offer more economical solutions Manager from Hardide® Coatings Inc., to protect severe-service metal-seated ball that also provide higher performance than worked with Luc for many years, and a traditional products. relationship grew from basic coupon and According to Craig Bekins, Velan’s material testing to production qualification Director, Autoclave Projects and Product at companies in the petrochemical and Manager, Torqseal, “Velan has also power sectors. successfully used the CVD tungsten carbide- Meanwhile, Hardide is also actively based coating on all wetted trim parts of investing in the future of the industry. the Torqseal triple-offset butterfly valve “Most recently, Hardide announced for severe service applications. Without investment in a new $7 million manu- Hardide, this would not have been possible.” facturing plant in Virginia that will help The most notable case was an application the company further roll out its range of that included a combination of dry hot specialist nanostructured coatings across media and extremely fast and frequent North America,” says Dan. operation that required an ultimate solution. Following a review of all available materials, What these coatings do Hardide was selected as the only proven Hardide coatings extend the life of critical technology that could be applied to all components across a wide range of high- internal components without disrupting wear/high-value industries and applica- the precise geometry that the triple-offset tions. These industries include oil and gas, valve requires to maintain tight shut-off. The aerospace, defense, petrochemicals, and subject valves have been in service now for motorsports; the applications include down- over two years and have seen thousands of hole tools, control valves, cylinders, rotors, cycles. Once again, without Hardide, this pistons, pins, landing gear, turbine blades, would not have been possible. and many flow control components. Velan’s Torqseal triple-offset butterfly valve Over the years, Velan has provided valves Spreading the word with CVD tungsten carbide-based coating Photo credit: Hardide with CVD tungsten carbide-based coating on all wetted trim parts for severe service The results of what Velan has found with for many demanding applications for applications. nanostructured coatings has been published.

2015 | www.velan.com | 17 ing or breaking the thin hard top layer (which is the so-called “eggshell-effect”). This increases the load-carrying capacity of the overall coating system. “While we’re in the early days of research for this project, some multi-layer, hybrid- graded coating systems have already demonstrated sliding wear and mechanical performances that greatly exceed those of the standalone surface treatments,” Luc says. By working with Hardide Coatings and conducting independent research, Velan “has been able to identify a cost-effective, off-the-shelf coating with the potential to fully replace hard chrome on our severe service applications,” Luc says. “The nanostructured CVD Hardide coatings provide an excellent alternative to hard chrome and ensure that we continue to deliver innovative and high- quality products to our customers,” |V V| Photo credit: Hardide he concludes. A Velan ball on Hardide’s coordinate measuring machine. HARDIDE is a registered trademark of Hardide PLC, and is licensed to other members of the Hardide group.

Velan, together with Polytechnique Montreal is four times lower than hard chrome Velan adds a line University, wrote a paper in the Materials when using alumina counter bodies and Chemistry and Physics journal entitled similar wear mechanisms and when sliding After extensive testing, Velan now considers the “Alternatives for hard chrome plating: against Stellite®. It also suggests the Hardide Hardide coating process to be qualified and ready nanostructured coatings for severe- alternative should provide good performance for production orders of top-entry and split-body service valves.” It evaluates a variety of in slurry and corrosive services with various metal-seated ball valves up to pressure Class 600, with no further research and development efforts chromium-free protective coatings as counter bodies. required. alternatives for HCP for valve applications. Most recently, Velan is partnering A series of lab tests, including hardness, again with the Polytechnique Montreal A new “V” coating code has been created, and a micro scratch, pin-on-disk, and electro- to develop novel combinations of overlay price list developed to expedite quoting and the chemical polarization measurements, were layers with Hardide coating. Luc is in charge order entry process. Future work will include testing performed to compare the performance of of this area of research and development, on Power Ball valves to determine where Hardide can offer performance and price advantages over different coatings. which is designed to demonstrate the other coatings. In addition, mechanical resistance and synergy between hardfacing materials and fatigue resistance were evaluated using nanostructured films. prototype valves with coated balls under “In this study, we want to characterize severe tribo-corrosion conditions. The graded coating systems composed of two paper showed that the Hardide tungsten/ things: a thin top layer that provides superior tungsten carbide coating exhibits superior sliding wear properties, and a hardfacing resistance to wear and corrosion due to interlayer that reduces stresses between high hardness, good toughness, and high the top layer and the soft base material,” resistance to pitting. It concluded that the he explains. coating offers a rate of wear that is eight The hardfacing interlayer minimizes times lower and a friction coefficient that stresses and eliminates the risk of indent-

18 | Velan View | 2015 Building a better workforce

Understanding generational differences

Photo credit: iStockphoto

Today’s companies are more universal issue that comes up at Manufacturers Association) events, uses challenged than ever to find A almost any event in the valve industry this story to illustrate the problem: and keep the skilled labor they today is the need to attract new people “One of the worst things I ever saw with the right skills into the specialized, happened at an insurance company’s new need to run tomorrow’s suc- technical fields where valves and control employee orientation. This guy got up before cessful companies. One place devices are made and used. But to solve that a group of young people and announced: to begin meeting that challenge problem requires something that many of ‘17 years ago, I sat where you are sitting is to realize the differences be- those doing the hiring and training don’t now,’” Kennedy explains. That might have tween the different generations have: an understanding of the differences flown many years ago when the speaker was between the generations of yesterday and a young man, she says, but: “What he didn’t of workers and how bridges can those of tomorrow. know was that his audience members were be constructed so that they can Marilyn Moats Kennedy, a workforce saying to themselves: ‘Oh my. Couldn’t he work together smoothly. issues specialist and speaker at VMA (Valve get a decent job?’”

2015 | www.velan.com | 19 your parents’ house, longevity in a job is not major goals is to see that their children your goal,” she says. graduate college debt-free and that they save “Boomers are focused on for retirement,” she says. upward mobility and buying The generations When it comes to the workplace, the two more things because that is the For purposes of illustrating her point and are very different in how they view getting model of post-World War II explaining how different generations came things done. Boomers, for example, have America.” Younger genera- to be, Kennedy uses these four groups as been taught to take a team approach. reference points for most of the workforce: This is because their upbringing was tions, “just want to be able to • Baby Boomers born in 1946 to 1959 influenced by parents who went through cover their costs. They do not (ages 55‒68—about 38% of the population) World War II—parents who looked to the want more things. One of their • Cuspers born 1960-1968 U.S. military as an example of how to get major goals is to see that their (ages 46-54—11%) things done. children graduate college debt- • Busters born 1969-1978 “What we forget, however, is the amount (ages 36-45—20%) of training military forces have for making free and that they save for • Millennials born 1979-1990 teamwork operate—much more than anyone retirement.” (ages 24-36—15%) in private industry could afford,” Kennedy One of the major differences between comments. — Marilyn Moats Kennedy the oldest and youngest of these groups is Even baby boomers today have learned that when baby boomers were entering the there are flaws in the idea that everything is workforce, they were driven by the need best done through teamwork. The problem was that the speaker came to make money or, like with the speaker They’ve learned over time “that each from the baby boomer generation, but his at the insurance company, have a career. of the members of a team will not do the audience was part of the millennial and Millennials are driven by principles and the same amount of work,” she says, and they younger generations, which have an entirely need for self-satisfaction. have learned to put systems into place for different set of values. “Boomers are focused on upward mobility accountability. “He had no understanding that you don’t and buying more things because that is Meanwhile, when today’s young people talk longevity to people who live in the the model of post-World War II America,” were children, teachers and coaches moment,” Kennedy says. “If the worst thing Kennedy explains. Younger generations, presented them with the idea that “everyone you’ve experienced to date is a bad hangover “just want to be able to cover their costs. gets the same ribbon,” for participating in from a long night or if you’re still living in They do not want more things. One of their a sport or academic challenge, Kennedy explains. Such thinking “diminishes what you do as an individual,” she explains. As a Motivation across age cohorts result, they now have the attitude that “I’m going to be responsible for my own work. Boomer Cusper Buster Millennials I want to do the job on my own and be 1946–1959 1960–1968 1969–1978 1979–1990 evaluated on my own.” Another great difference is how important More Money Do well by doing good Time off Time off personal values and the freedom to express those values are in the workplace. Promotion Meeting organizational Mentoring Mentoring goals Older workers tend to participate in community service for its social Public recognition Boss’s recognition Meeting own goals Portable skills training and professional benefits so they join organizations such as the local Rotary or Peer recognition Bonuses Boss’s recognition Meeting own goals professional organizations, she says. Younger workers believe it’s important for the Desire for subordinates Mentoring others Skills training Bonuses company itself to be cause-oriented. When they are deciding where they want Control Bonuses Prep for self-employment to work, “They want to know what the owner Loyalty to self Latest technology Sales training truly values. Does he or she support the Salvation Army, participate in Big Brothers

20 | Velan View | 2015 Age Cohorts: Workplace characteristics “When you’re dealing with Boomer Cusper Buster Millennials 1946–1959 1960–1968 1969–1978 1979–1990 someone who is 18 or younger, you have to realize that the one Money/work ethic Money/principle Principle/satisfaction Principle/satisfaction thing he or she is not eager to do is to get a white collar job Work first Some of both Lifestyle first Lifestyle first and die at a desk.” Expected to lead Lead and follow No need to lead Lead if necessary — Marilyn Moats Kennedy Loyal to employer Some of both Loyal to skills Loyal to skills

Care deeply what Some of both Don’t care what Care selectively what others think others think others think “Here’s a big conflict that comes with Want others to work with Want others to work with Prefer to work alone Like small groups talking to today’s youth,” she explains. them them “When you’re dealing with someone who is 18 or younger, you have to realize that the Technically challenged Technically challenged Technically savvy State of the art one thing he or she is not eager to do is to get a white collar job and die at a desk.” Lip service to mission Care about mission Must have mission Must have mission Kennedy also says that too often, she sees industry technical professionals who Chain of command Mixed Individual first Individual first are talking to young people who almost apologize because the work is hard or I win, you lose Want to win I win, you win I win, you win repetitive. “They are putting ideas in young people’s and Sisters, or stand up for environmental and repeated exposure to your industry is minds that are negative when they should be causes? The younger generation may not important, and I’m amazed that more valve talking about outcomes—not about making pick a job based on those causes, but they and industrial company professionals don’t widgets. It would be so much better to start want to know the boss occasionally thinks go into the schools, bring a pizza, sit down with a tour of a facility and show them about something other than the bottom and tell these young people the advantages exactly what the job looks like and what the line,” Kennedy says. of what they do,” she says. product does,” she says. They need to start early because young To appeal to the millennial generation, How it translates people need to see how a professional can for example, they need to show how those The larger question today is not so much get from point A to point B with a career in widgets meet specific needs because that what each generation represents but how industry or manufacturing. generation loves to solve problems. the different generations interact. This is “Think about how many people go into Not many people know how vital valves because the boomers are the ones retiring medical school because they have high are in the infrastructure of the nation—how or about to retire and the older generations scores on the MCAT (Medical College they are in everything from pipelines to are also the ones doing the hiring and Admission Test). It’s not that they want to building operations. promoting. The younger people are treat people initially—they just get on a “Your websites and your presentations choosing a field or deciding whether to stay track that begins with doing well on a test,” should be telling people what valves are, with a job and seek upward mobility or go to she points out. who uses valves, and what that means to the another employer. The valve industry also should be world,” she says. “Don’t assume they know To get the needed fresh blood for industry reaching out to the nation’s technical because they don’t.” will require the older people to understand schools to find candidates who may have a What is not needed in dealing with what appeals to today’s youth, Kennedy real interest in technical fields. today’s younger generations is to tell them: explains. She suggests that for technical school “‘Someday you’ll be owner of a company.’ She suggests the valve industry start by students, companies sponsor regular “day That is not what they want to hear. They appealing at the junior high level. “Early on the job” tours of plants. want to know what they might be doing in

2015 | www.velan.com | 21 encouraging different generations so that While that can’t possibly happen, “maybe they will move up through the ranks of we can look at what that really means. We “Companies have to learn management. Here, too, the interaction can concentrate on things they don’t like to invest in the best today between the generations is key, Kennedy about the office such as office politics and because if you want to appeal says. constant meetings and find ways to give to the world’s youth, you For example, while the upper ranks of them what they want, such as the chance to can’t even have a whiff of boomers and even some cuspers are “tech- participate in social causes and flexibility nically challenged,” the younger generations with family situations,” she says. obsolescence. It spooks people.” have not only embraced technology, but She also points out that the youngest — Marilyn Moats Kennedy made it a daily requirement. generation (those born after 1990) are a “Companies have to learn to invest in the different breed, but says that may offer an best today because if you want to appeal advantage in the technical fields. Young to the world’s youth, you can’t even have people have an extreme interest in science a whiff of obsolescence. It spooks people,” and in mechanical things. three weeks, then three months, then three Kennedy says. “They care about using their hands and years,” she says. Boomers also need to realize that to appeal making things,” she adds. They also want assurance that what they to generations not motivated by money Meanwhile, “save your biggest paychecks will be doing will be useful and effective. requires facing the fact that “forever after no for the baby boomers” because they’ll need it Kennedy pointed to the paint industry as longer exists. If someone is doing a wonder- both for retirement and because that genera- a place where certain companies have been ful job after a couple of years, you need to tion was not taught to be frugal. Many were effective in doing just that by linking paint- start asking what else he or she would like to encouraged to use their homes as ATMs, ing to sustainability. learn,” she says. have revamped retirement plans and plan to “Some of the companies have been able Those generations moving up the ranks work until 75 or so. Many did not or could to show how vital painting can be to the want to know what else they can accomplish not save what they’ll need to be comfortable environment and how working for the in the job. For some, that may mean that the in old age or lost significant amounts during right paint company can make a difference international travel increasingly necessary in the latest recession. because of it,” she says. the business world may appeal. Overall, Kennedy says the companies Industries trying to appeal to the young It’s also vital to face the reality that the that give people the means to make their today have to relate what they do to the good issue of “having it all” that feminism first lifestyles work, convince them the company of the nation, to the economy, to the envi- struggled with is still around; however, it’s stands for something beyond making money ronment, she explains. expanded to include both genders. and show them the job and what the com- The boomers are a good source for “With younger generations focused pany makes is useful to the world, “stand a teaching these lessons because they have heavily on lifestyle as vital to their lives as much better chance of finding and keeping seen the industry as it’s evolved and they’ve career mobility, both men and women are the talent they need.” |V V| personally been on the tracks of movement looking for ways to make their personal lives that can occur within manufacturing work,” she says. companies, she adds. “The balance issue is a major one at all This article was written by Genilee Parente, managing “Young people want a story from someone levels of employment today and companies editor of VALVE Magazine and a writer for Velan View. believable, so don’t send young people out that can find a way to provide flexibility will Reprinted with permission from VALVE Magazine. to recruit other young people. The younger retain their workforce best,” she says. generations want people to tell them per- “The assumption used to be that if you sonal tales of what the industry did for them. recruited the best and the brightest, they Send those garrulous boomers proud of what would stay forever. Today, I often tell compa- they’ve done. Every alumnae group in the nies that the competition for good employees country has learned to use this technique is not so much between different companies and you should, too,” she says. that steal each other’s talent. The competi- tion is self-employment,” she says. The middle generations “There is such a backlash against working Beyond the challenges of bringing in new in offices today that everyone under the age people are the challenges of retaining and of 40 wants to work at home,” she adds.

22 | Velan View | 2015 Shutting down safely By Nicola Lucchesi, R&D Manager, Velan ABV Exploring good practices for emergency shutdown valves in offshore safety systems

Emergency shutdown valves are used in offshore production platforms as key components of the more complex emergency support systems (ESS).

he ESS themselves provide a level of damage to the environment that can result Background Tprotection by initiating shut-in func- from catastrophic events, such as what While the number of ESD systems needed tions and minimizing the consequences of happened in 1988 when the Piper Alpha in an offshore platform depends on its emergency situations, typically those related platform was destroyed and in 2003 with complexity and production capacity, to uncontrolled flooding, escape of hydro- the accident at the Brent Bravo facility. Both common levels of activation for different carbons, or outbreak of fire in hydrocarbon- those disasters were caused by the lack of hazard situations exist. For example, a carrying areas. The API RP 14C standards ESD valves. unit shutdown, where only a restricted written for designing, installing, and testing Because of their criticality, continuous area or individual process is involved in ESS address different aspects of it, which improvement in ESD design is a top priority the shutdown process, is less critical. A include emergency shutdown systems for safety management and increases the more serious situation would be a surface (ESD), gas detection, containment systems, reliability of an entire system. process shutdown, where all the production fire detection, and subsurface safety valve This article describes Velan ABV’s experi- activity halts and all the pipeline processes systems. ence in designing ESD valves and actuators. and injection shut-down valves (SDVs) fail, The aim of ESD is to protect personnel, It also illustrates how requirements can leaving some utilities, such as main power facilities, and equipment and minimize range greatly from facility to facility. generation, available. The third and most

Velan ABV's high-integrity, pressure- A typical schematic drawing of a safety instrumented system (SIS). protection system (HIPPS).

2015 | www.velan.com | 23 catastrophic level is total platform shutdown, function when required. This means the in which all the processes including valve’s design is essential in ensuring its power generation halt, the wellheads and reliability and availability. sub-surface safety valves close, and the blowdown valves open to depressurize Final control element design the platform. In this case, the only system The final control element is composed still active is the emergency generator for of three main components: the valve, the firefighting systems. actuator, and the local control panel. Each IEC 61508 and ISA 84.00.01 propose has its own subtask in the control loop. The the more general definition of a safety first is to ensure the closure member has instrumented system (SIS). SIS is described only two stable, discrete positions with the as a distinct and reliable system with the ability to stroke from one to the other under purpose of taking a process to a safe state any operative or emergency conditions. For when predetermined conditions are violated. valves, a second important subtask is to An SIS is composed of several sensors, guarantee a tight shutoff, with the obturator a programmable logic controller (PLC), (sealing member) in a closed position, with and a final control element. Sensors collect minor or no leakage. The actuator safety information necessary to determine if a function moves the obturator using an dangerous situation could occur. When such intrinsically safe mechanical device, usually An 18" (450mm) full bore class 2500 ESD a situation is identified, the PLC disconnects a powerful compressed set of springs, valve complete with a hydraulic SY actuator the power of the ESD solenoids and moves when the supply line is stopped by a PLC and manual PST device for offshore severe the valve into its safe position. emergency signal. The local control panel service. The implemented control loop function receives input signals, cuts off the supply is defined as a safety instrumented function line, and ensures the stroking time. when the line could contain dirty debris (SIF). Here, performance can be measured remaining from the piping assembly. in terms of reliability and availability. Valves Two major risks of dangerous failures are Reliability is the probability of performing API 6D and API 6A are the main standards seized seats and jammed stems, and these the correct logic safety function under for offshore valves, even when EPCs or negatively affect a target by closing a line specifically determined operating conditions operators integrate those standards with with a quarter-turn rotation of the ball. In for a defined time period. Availability is the their own specifications. Valves also could addition, the process fluid and the external fraction of the total time a protective system be required to meet the NORSOK standards environment also play a significant role is able to function on demand. developed by the Norwegian petroleum in determining the probability of a valve SIF is designed to minimize process risks industry to meet the needs of equipment failing. The operating fluid can be a single to a tolerable level, assigning to each risk a suitable for the extreme North Sea weather clean phase of crude oil, gas, condensates, safety integrity level (SIL). IEC 61508 and conditions. Commonly, a design agreement or a mixture. But no matter the mix, at the ISA 84.00.01 specify four possible discrete with the valve manufacturer must be beginning of the process, the fluid is dirty levels of reliability and further demand reached even when EPCs’ and operators’ and strongly abrasive. that platforms furnish quantifiable proof of specifications are influenced by experience A ball valve fixed in the same position for compliance. Generally, offshore processes lie and procurement policies. a long period also faces the risk that sand within levels SIL1 or SIL2, with SIL3 applied The most common ESD valve is the and debris could be pushed by the flow in for critical applications only. SIL4 is rarely trunnion ball valve. These valves can be the upstream ring cavity, creating a consol- used, though it is common in the avionics, either reduced or full bore, although all idated mass that can act as a wedge at the aerospace, and nuclear sectors. the valves installed to protect risers and bottom of the seat ring. This increases the The final control element is commonly exported oil and gas systems have to be full valves’ torque or, in the worst case scenario, acknowledged to be the weakest link in the bore so they are piggable. This is because causes the upstream seat to seize. To deal SIS loop (causing 40‒50% of the problems). this pipe cleaning method has to be done with this, the valve design should include Because the shutdown valve remains in carefully, demanding a perfect valve bore emergency sealing injection on its seats, one fixed position for what can be years, it alignment to ensure the pig does not damage whereby the injection of a lubricant or a can become stuck in that position with no the seats and ball surface. This is especially flushing fluid can act as a hydraulic push, guarantee it will perform its desired safety true during the first commissioning lifting the seat ring off the ball face.

24 | Velan View | 2015 Debris can often be trapped between high-pressure valves, design precautions are a valve’s seats and the ball, where it can taken to achieve the right coupling between The number and potential scratch the contact surfaces during strokes the stem and actuator. Narrow tolerances, complexity of the variables and thus compromise the tight shutoff longer bushings, and reference pins help to function. Soft-seated valves are considered guarantee a perfect alignment between axes. involved in designing ESD more vulnerable to this situation than hard valves for offshore processes seats. Even though some Engineering, Actuation can be overwhelming. Only Procurement, Construction (EPC) profes- The most common actuator for ESD systems through close collaboration sionals prefer the soft-seated design because is a pneumatic scotch yoke spring return, between EPCs, end users, and of its zero leakage capacity, metal-seated though the hydraulic version is also a valid valves with tungsten carbide hardfacing are alternative. In contrast, a double-acting valve manufacturers from the more reliable. configuration is rare. This is because, even start to the finish of a project Wellhead fluids also may have consider- though it is more compact and cheaper, a can the right decisions be able amounts of hydrogen sulfide (H2S), backup supply tank and a more complex consistently made. which corrodes the internal wetted surface. control are needed when used for ESD To counter this, the valve material must applications. meet NACE MR-01-75 standards and Velan ABV has its own brand of actuators, design pressure and temperature, and corrosion-resistant alloys are recommended MOSS actuators, which are designed, man- class-rating pressure at maximum piping for protecting seat and sealing areas. ufactured, and tested in-house to cover the temperature. Since no standard rules apply, Confined spaces are mainly exposed to full range of quarter-turn valves. EPCs generally make their choice during aggressive pitting and crevice corrosion. Actuator sizing is often a discussion point the piping design. The first of the three is Because of nickel alloy’s excellent weld between EPCs and manufacturers. Because less conservative and not recommended for deposition characteristics and superior of the severe nature of the service, EPCs tend emergency purposes, whereas the last of crevice-corrosion resistance, these alloys to be too conservative in their specifications, the three ensures the interchangeability of are commonly used. forcing manufacturers to select oversized valves with the same piping class. From one An important precaution for avoiding actuators. The debate with EPCs then gener- criterion to the next, the increase of torque stem jam is using external seals to isolate ally focuses on two main points: the condi- can be remarkable, at times more than the bushing areas from the outside envi- tion at which the valve torques are calculated 50–70%. ronment. When valves are in a horizontal and the applicable safety margin (SM). The actuator sizing has to include a safety position or located in splash zones, seawater Valve torque is influenced by pressure margin to compensate for deterioration of and rain can seep into the stem packing, drop and temperature. There are three main a valve’s performance during its lifetime. leading to premature stem failures from cor- situations where torque can be determined: EPCs and end users define three different rosion. Furthermore, for fast operations of operating pressure and temperature, applications to establish this safety margin: general (150% SM), emergency (200% SM), and special (250% SM). Actuator-torqued values are always calculated at the lowest set pressure of the supply air in the facility to ensure valves are operable in the event of pressure fluctuation. At the same time, the actuator’s ability to withstand the maximum supply pressure must be verified, since some EPCs do not allow the installation of protection devices such as air-filter regulators and relief valves. An improper combination of these can lead to valves equipped with oversized actuators that provide little benefit in terms of size, weight, and maximum output torque. This can negatively affect the valve A Velan ABV HIPPS system showing the open logic control panel. design itself, requiring a higher maximum

2015 | www.velan.com | 25 allowable stem torque (MAST), which can time will not be satisfactory even if the for offshore processes can be overwhelming. be achieved by changing the stem material control panel is correctly sized. Only through close collaboration between or, less favorably, by requiring the rede- EPCs, end users, and valve manufacturers sign of the valve to give it a greater stem Testing from the start to the finish of a project can diameter. The only way to completely verify the status the right decisions be consistently made. The most dangerous failure is a spring of an in-line ESD valve is by a proof test Velan ABV has developed a new research rupture, which is mainly caused by long that strokes the valve from a fully open to a project for an actuator concept that can exposure to a corrosive environment. As a fully closed position. This operation often exceed most of the current limitations. The result, springs are always provided with a requires total shutdown of the process, main features of this project are innovative protective coating and hermetically sealed which can only be done during a scheduled quarter-turn devices with higher efficiency, in a welded cartridge. Also, a good practice plant shutdown. Installing a smart partial- low friction, and better torque linearity, all is to ensure a minimum water protection stroking test (PST) device in the control of which help address the issue of actuation level, IP 67, by adding seals to prevent panel is a common practice. This is done to oversizing. seawater from going inside the scotch yoke perform on-line diagnostic testing to find at The project, which was begun in 2013 in housing. For the pneumatic model, avoiding least a percentage of total failures. partnership with the University of Florence, entry of salty air inside the backside The PST moves the ESD valve 10–20% of should bear positive fruit by the end of this chamber of the cylinder is recommended. the stroke, receiving feedback about valve year. |V V| A closed loop is generally implemented to travel position and actuator pneumatic lead part of the clean air supply released pressure. This data supports the diagnostic References from the supply chamber. analysis of the valve performance. When 1. API RP 14C, “Recommended Practice for Analysis, Design, Installation, and Testing of Basic Surface difficulties are found, the test will be Safety Systems for Offshore Production Platforms” Control panels automatically aborted and the operator 2. Angus Mather, ‘Offshore Engineering’ Bertrams, rd Being able to choose the right components, is alerted with a signal. Even though PST 3 Revised edition, October 2011 accessories, and tubing is strongly does not eliminate the need for full-stroke 3. J. Peters, “Emergency Shutdown Valve Study: Industry Operating Experiences and Views: The influenced by the maximum stroking testing (since tight shutoff capacity cannot way forward,” Health and Safety Executive (HSE) Report. Offshore Technology Report-OTO 97 018 time. Fast closures are usually desired in be detected, for example), its frequent use 4. Meghdut Manna, “Need for an industry standard ESD systems, and a closure velocity of one increases the reliability and availability of for ESD valves from an engineering and safety point second per inch of valve size is standard. the whole system. of view,” Safety Users Group, February 2005 Higher velocity is a critical requirement 5. Gilberto Beduhn Machado, “ESD in DP Vessel – For Safety, not for Blackout,” Dynamic Positioning and must be taken into account during Conclusion Conference, October 2009 the valve/actuator design. For big valves, The number and potential complexity of the 6. German Luna-Mejias, “Using ESD Valves as in which the inertia of the movable variables involved in designing ESD valves Safeguards, Myth or Reality?”, 9th Global Congress on Process Safety, April 2013 components is elevated, special devices such as hydraulic dampers have to be installed to mitigate the impact at the end of the stroke. About the author During a failure situation, the closing Nicola Lucchesi received his degree in Mechanical velocity depends on how fast the air is Engineering in 2004 from the University of Pisa and released from the cylinder. Quick exhaust has collaborated for five years with the Laboratory valves are commonly assembled on the of Perceptual Robotics (PERCRO), part of the Scuola actuators, sized by the necessary flow rate. Superiore Sant’Anna, Pisa, Italy, as a Ph.D. student in Generally, EPCs do not require certain Robotic Automation. opening times, and a three-times higher He joined Velan ABV in 2009 as R&D Manager, focused on solution is accepted. The opening time optimizing the design of actuated valves equipped with depends on how fast the air is supplied pneumatic and hydraulic accessories and intended for to the actuator against the spring force. critical and control services. The components involved include air- He is the inventor of two patents for Velan and the author filter regulators, pilot valves, and solenoid of several articles. Since 2012, Nicola has spearheaded operating valves. One note about the the high-efficiency valves project in partnership with the University of Florence. inlet piping diameters: If the EPCs do not Nicola Lucchesi properly design the pipe bore, the opening

26 | Velan View | 2015 Ron Harrington Learning teamwork with a different twist

When people ask Ron Harrington, Regional Sales Manager NE, to list something about his back- ground that many people don’t know, he names his original job: He studied education in college and was a history teacher and a coach at the high school level for 12 years.

Ron Harrington, Regional Sales Manager NE, Velan (middle), speaking to attendees at the 2014 Velan Distributor Conference in Mt-Tremblant.

2015 | www.velan.com | 27 know that’s not the typical road to a He had a friend in industrial sales that I career in industrial sales, but it’s been an looked at Ron’s skills and said he thought interesting ride and I actually think being the change from teacher to sales was a good a teacher prepared me well for my second fit. Ron agreed and found his first sales job career. And who knows, maybe somewhere selling instrumentation valves and fittings. in my distant future there will be a New “As a teacher, you’re always presenting Jersey high school in need of a history topics to your classes,” Ron explains. “You teacher and a JV basketball coach—beats have to have a thorough understanding of hanging around on the beach all day,” your specialization (history in my case) Ron says. and you have to have the communications As is true of teaching, the ability to com- skills to impart what you know to others,” municate is critical in a sales profession. As he says. is likewise true with coaching, having the As a sales professional, “you are often right team in place is vital to winning. giving presentations to a group of people “I learned early in my 20-year career with that typically have a lot of experience in the Velan that when you work for this company, field and a high level of technical know- you work with a team of professionals—both Ron teaching history at Foran High School how. If you’re going to convince them what internal teams and our distributor partners,” in 1975 in Milford, Connecticut. you are offering is a fit to their needs, you Ron says. “I also learned quickly how critical need to understand exactly what your it is to keep a smooth flow of information “For one thing, I was just itchy for a products can do, as well as the capabilities back and forth among team members,” change. I loved teaching and it was always of the company you work for,” he says. he adds. a challenging job. But in my 30s, I realized When he came to Velan, he also got his that when you’re in education, all you’ve ever own coach: Paul Lee, who Ron says has Bridging two worlds known is school: grammar school then high been his mentor. The question most people ask after they find school then college and finally your first job. “I started out as a District Manager under out Ron used to be a teacher is: why did he I was at a place in my life where I felt like if I Paul. At that time Paul was handling the make that leap? didn’t try something different then, I might Bechtel MPA, and the territory demanded His answer is multi-faceted. never do it,” he said. additional coverage. Working closely with

At home with Ron Teaching provided a few other benefits to Ron’s life besides contributing to his success in sales. For one thing, being a coach gave him a life-long passion for sports. Ron continued his coaching after he left the high school environment by serving as a youth basketball coach for the community and his church, beginning with his oldest daughter’s co-ed team when she was in the fourth grade, and continuing long past his youngest daughter’s college graduation. He is a huge tennis enthusiast both in the summer for regular tennis, and in the winter through platform tennis—an outdoor winter sport. Teaching and coaching also introduced him to his wife of 29 years, Olivia, who hails from Bolivia and was studying abroad in the U.S. when she first met Ron. After her studies were completed, she returned to her home in Bolivia and lived there for about eight years. They reconnected when she returned to the U.S. to visit while working as an airline attendant for Argentina Airlines. The Harrington family vacationing on the Outer Banks, North Carolina. From left: Bradley, Danielle, Lindsey, Carolyn, Olivia, and Ron.

28 | Velan View | 2015 Paul, I learned early on what it takes to be “the learning curve has been quite intense, successful at Velan,” Ron says. and you have a very high volume of work,” One of the requirements is knowledge, he says. However, working with Velan “we “I started out as a District both of clients and of sales techniques. have the needed support to get the job Manager under Paul. At that “Paul has a tremendous amount of knowl- done, beginning with our solid leadership time Paul was handling the edge about our end-user markets. He also structure as established by A.K. Velan and Bechtel MPA, and the territory knows how to address issues in a reasonable carried on by our current executive team. and professional manner,” he says. The Velan commitment to innovation and demanded additional coverage. The two have similar work habits as well quality is mirrored in their leadership style. Working closely with Paul, I as similar approaches to selling, Ron says. The Velans have created an atmosphere that learned early on what it takes For example, “I am always very careful to fosters creativity while adhering to best to be successful at Velan.” remember that I represent Velan and I must practices.” make decisions that are in the best interests The sector of Velan staff that contributes —Ron Harrington, Regional Sales of the company.” to Ron's efforts has many facets, starting Manager NE, Velan with the team that puts quotation packages Attention to the details together. Ron, who has a diverse territory that “There are many stars that shine in our stretches from New England to Washington, quotations group, and Velan is known for must be efficiently entered and expedited. D.C., and includes eastern New York State, its excellent project bid packages. It takes a “We get many compliments from clients eastern Pennsylvania, and metropolitan special, talented person with a wide skill- and distributors on the professional way areas such as New York City, Boston, and set to put together a competitively priced our projects are administered, not just Philadelphia, also says he could not do what and technically sound quotation. The job on day-to-day operations but also special he does without the expertise of the Velan requires great attention to detail, a trait this circumstances that require expedited internal teams. team has in abundance,” deliveries,” he says. As Northeast Regional Manager, Ron Ron says. Finally, there is the engineering team and has clients that range from A&E firms to Next comes the sales administration team, manufacturing staff and quality assurance, power plants, from pulp and paper to the which consists of people who are incredibly who all work to ensure that Velan’s valves chemical and refining industries. As a result, detail-oriented, as these complex orders are of the highest quality, Ron says. “Their expertise is immeasurable—some of what we do is art, not science!” There is also the Field Service Engineering Department, which Ron says has one of the toughest Shortly thereafter, they started a family of three girls and and most critical jobs in the company. one boy. The family bought a 150-year-old home in New And equally important are the networks of Jersey fit for the large clan. The house sits on the historical external agents and distributors Ron relies site of a church in Bergen County, and Ron has spent on to initiate sales in the northeast. “Simply many years updating the homestead. It now includes a put, if we don’t get the opportunities and two-story barn in the backyard that features an office work together to get the order we can’t be and workshop and is affectionately referred to within the family as the “Velan Northeast Regional Sales Office.” successful as a company,” he adds. Ron also has two older sons, who have followed in his His advice to others footsteps with sales careers and have started their own families. Ron says one of the developments in the industry that he sees as a problem is the lack The big family and a love of barbecuing are among Ron’s of “young blood” coming into the industry. other passions in life. “There used to be many more young “We have a big yard and a big house, and we love nothing people in the valve business,” he says. “Many better than all getting together on a Sunday afternoon to would start in the distribution business and spend some family time with our dog Brooklyn running around outside,” Ron says. learn from the inside out. That doesn’t seem “Coach Harrington” on the basketball court. to be the case anymore,” he says.

2015 | www.velan.com | 29 “What we do at Velan is not easy since so many details go into the design of a valve. We make a very precise product that is critical to infrastructure as well as a multitude of markets. We need to show aspiring job seekers what a challenging and exciting business designing and manufacturing valves can be.” —Ron Harrington, Regional Sales Manager NE, Velan

As a result, companies in the business of Ron discussing sales strategies during the 2014 Distributor Conference at Mt-Tremblant with Bill Dunne, Vice President of selling industrial goods need to find ways to Sales, Deacon Industrial. promote the career opportunities available to young professionals. In industrial sales, for example, “it’s a From the boss’ perspective challenging position, but it offers a wealth Paul Lee, Velan’s Vice President of U.S. Sales (Eastern Ron also has the level head that Paul says helps him of benefits,” he says. “There is room for Division), says he’s been impressed with Ron deal with one of the most challenging of Velan’s sales advancement for those who work hard; you Harrington since the day he first met him. territories: the northeast. get to travel and you have the chance to meet “I found out in that first interview that he had two “He’s a master at maintaining relationships and at a wide variety of people.” traits going for him that I consider positives: He was an keeping things from spiraling out of control,” he says. There are interesting things happening ex-athlete and he was a family man,” Paul says. He gives the example of “the ugliest meeting I’ve ever every day, he adds, and for those who enjoy “Athletes understand competition and they know how been in,” which involved a paper mill customer and a a challenge—it’s there for sure. to perform on a team,” he explains. “Having strong distributor. “Whenever I get the opportunity to go family ties shows stability.” “One of the individuals in that meeting was out of to Montreal with a client and we tour the Paul adds that it’s been deeply satisfying to see that control and even though he was not a Velan employee, plants, I come home invigorated,” he says. his initial reactions were correct and that there’s a lot our reputation could have been harmed by the way You’re also dealing with products that more about Ron that makes him effective in the job. he was acting. Ron and I walked out of that meeting have global markets to serve. One of them is the ability to react calmly amid a storm. in shock. But we regrouped, tightened our belts, and got back in there to lessen the impact of the situation “What we do at Velan is not easy,” Ron “I joke with Ron about his start here because for some and, at the same time, we let the individual know his explains, “since so many details go into the reason the first week he started, he got his office all set behavior was unacceptable,” he says. design of a valve. We make a very precise up then nothing much happened. The second week, product that is critical to infrastructure as however, all hell broke loose and it hasn’t stopped That kind of cool thinking is something Paul depends since then,” he jokes. upon. well as a multitude of markets. We need to show aspiring job seekers what a challenging In fact, just a few weeks after Ron started, Paul had In the world of keeping customers happy and products and exciting business designing and manu- open heart surgery. moving, “It’s important to have someone who can analyze the situation, share his viewpoints and then facturing valves can be,” he adds. |V V| “I couldn’t drive for a month, couldn’t even talk for that work with me on a common solution,” he concludes. first week. Ron stepped in and kept everything going for me,” Paul says.

30 | Velan View | 2015 Introducing 700 Valve Supply Expanding our reach in high nickel

One of the ways for a company to grow its overall market share is to identify a potential niche market and expand it, finding ways to build on the company’s strengths. Fitting right into that slot is Velan’s newest master distributor: 700 Valve Supply, Houston.

00 Valve Supply does what few compa- Hitting the ground running 7nies do: It keeps a stock of high nickel While 700 Valve Supply is less than two alloy gate, globe, check, and ball valves on years old, the company did not go through hand. Velan will be supplying those valves. the traditional start-up process. It has the Left to right, front row: 700 Valve Supply’s “We’ve produced these valves for many backing of a major powerhouse in Texas— CEO, Jerod White with his wife Bette, CFO; and General Manager Matt Spiller. years, but this is the first agreement to owners Bette and Jerod White, who run Back row: Velan's CEO, Tom Velan; provide a massive order of inventory,” more than a dozen businesses in that neck Vice President, Ivan Velan; and Vice says Mark Tilley, Velan’s Regional Sales of the world. President, Sales Administration (North Manager, Houston. The Whites own 26,000 acres of land in America), Rob Velan. For 700 Valve Supply, the choice of going Texas, including the 13,000-acre 700 Springs with Velan represented a great opportunity. Ranch, which is known worldwide for its “Our mission is different from that of areas of conservation as well as hunting and with Mark’s as they briefly worked for some other wholesalers: We were not look- recreation. the same company. ing to offer a wide range of brand names. “The name of the ranch comes from the When Matt took on the challenge of We are a value-added company, and we land’s 700 naturally fed springs. Jerod and starting the new venture for the Whites, he wanted one solid brand that is known for Bette, a hard-working and down-to-earth looked to Mark and Velan as a natural fit. quality,” says Matt Spiller, General Manager couple, wanted the new company to reflect “We both recognized the lack of of 700 Valve Supply. its connection to the ranch,” Matt explains. a competitive product in the high “We are starting with an extensive inven- Matt brought expertise to the White’s nickel field,” says Matt. “I knew Velan’s tory of alloy 20, Hastelloy, Inconel, and latest venture because he was highly reputation, and I knew that the Whites Monel products. Over the next few years, experienced in the high nickel alloy field. needed a quality product for the stock.” we intend to massively increase that inven- “By the time the new company got started, Mark adds that, “Velan has always tory by gaining more market share, then we had laid the ground work. The first day produced high nickel, but the competition we’ll expand into other materials,” he adds. we opened, we had almost $8 million in is very stiff and our business had clear To do so, the company must attract the stock orders placed,” he says. room to expand. Also, when a plant or attention of Velan’s network of distributors Matt has been involved in the valve world distributor needs these valves, they need who serve the industries where high nickel since he was 14, working in the warehouse them quickly, which is why keeping alloys are used (e.g., petrochemical, chemi- of a major valve company where his mother stock makes sense. While the market cal, pulp and paper, and refineries). was employed. He worked his way through is not as broad as some, it’s a profitable “These users are the ones that must deal college in the company, then took over field and offers great possibilities. With with acid in the process; stainless steel and quality control after he graduated. Two jobs our partnership with 700 Valve Supply, more traditional materials tend to get eaten later he was almost 100% focused on the we meet a specific, high-demand niche up in such processes,” Matt explains. high nickel market and his path crossed market,” he says. |V V|

2015 | www.velan.com | 31 For François Martel, one of Velan’s Field Engineering Service Technicians, the term “pressures of the job” has a whole new meaning. Over the years, he has been escorted to the job site by machine-gun-armed guards, worked with radiation levels so high he could only be on site for brief periods, learned how to avoid poisonous snakes and spiders, and arranged to be met at his incoming plane with a fresh suitcase of clothes so he could travel to another project half way around the world. Velan. Quality that lasts.

What you might not know about François is that he likes +1 514 748 7743 challenges off the job too. That’s why he’s just signed up www.velan.com for scuba diving lessons so he can explore a whole new underwater world when he’s not literally up in the air.

Velan: We’re more than just valves.