Corporate Social Responsibility Report

CONTENTS

1. INTRODUCTION: Messages from the President and the Managing Director 2

2. THE YEAR 2017 AT AMPO, AT A GLANCE 4

3. MISSION, VISION AND VALUES 5

4. COMMITMENTS OF AMPO:

4.1. Commitment to our employees 6

4.2. Commitment to Customers 18

4.3. Commitment to society 26

4.4. Commitment to the environment 30

4.5. Commitment to our collaborators 38

5. MAIN MILESTONES OF 2017 46 1. INTRODUCTION

Message from the President of AMPO, Jon Gorrotxategi

2017 has been a complicated year all over the world for our sector, with high In this report you will also find the main milestones of the year for AMPO, instability in the oil and gas industry, and to which we annually allocate some among which are the opening of our new Indian plant, the work carried out on 80% of our sales. Even so AMPO has confronted this reality with an enormous the new machining plant in Idiazabal, introduction of the LEAN Manufacturing capacity of adaptation and effort, and with the firm objective of continuing to culture and the design of a new model of organisational culture and leadership prepare ourselves for the challenges of the future. We have therefore continued at AMPO. to move forward with our plan of investments amounting to €16M, thanks to In 2018 we will continue to build a sustainable future, the basis of which is our which we have been able to grow as a company, increase our solution range solid social commitment, exactly as we have done throughout the 53 years of and promote a new strategy of cultural transformation at AMPO. We have also our history. opened a new stage, after having defined a new Strategic Plan for the 2017- 2020 period. I would like to take the opportunity to thank all our Customers and collaborators for their trust in our project and inform them that we will also continue working In this document we present you for the second year running with the AMPO constantly to adapt to the needs of the market and offer greater added value. Social Commitment Report, where we explain the cooperative’s annual social And to do it we will continue to enjoy the backing of the effort, the commitment activity in relation to our Customers, our People, society, the environment and and the enthusiasm of all of the People who make up the AMPO group. our collaborators throughout 2017. An activity based on our firm commitment to a fair and sustainable human development, as indicated in our mission. AMPO, the project shared by all of us. JON GORROTXATEGI President

2 INTRODUCTION · AMPO Message from the Managing Director of AMPO, Pablo Excellence will form part of the AMPO DNA, and to achieve it we will have the Mendizabal contribution of all People at AMPO. We will also need the help of our Customers and other collaborators such as suppliers, universities, technology centres, start- 2017 has constituted a phase in which AMPO has taken significant steps ups, different consortiums and associations, and the support of the institutions. towards establishing its foundations of the future. A future we have drawn by defining our new Strategic Plan for the 2017-2020 period, when we expect to AMPO is part of a community and, as a result, it is of vital importance for us see a growth in our activity and as a result, to continue generating wealth in to continually relate to the area around us and to be an active agent within it. our environment. We are and will be an active project, committed to its Customers, its People, Meanwhile, we have also started to introduce the LEAN Manufacturing culture, society and the environment. which has the objective to reduce delivery times for our Customers and to generate higher added value in the market, placing us on the road to business excellence.

Another truly important landmark for the history of AMPO was the opening this PABLO MENDIZABAL June of a new plant, AMPO INDIA, thanks to which we will be able to produce Managing Director valves of bigger size in the country, as well as increasing the production capacity of the branch. AMPO’s commitment to internationalisation is firm and in the coming years we will continue to strengthen our international presence in other markets such as the Middle East, Russia, the area of the Caspian Sea and Africa, among others. But commitment to our roots in Idiazabal will remain in place. And proof of this is the new machining plant on which construction is almost finished. This new installation of 12,500 m2 will help us to supply our Customers with components of higher added value, a superior machining capability and a better service.

2017 has also been key when taking the first steps in the process to design our new organisational culture and leadership model, in which some 80 People are involved in its initial phase. A project which we have entitled “Working on change” and which has the objective to create a process of organisational development guaranteeing a model of progress towards achievement of the cooperative objectives and towards a culture of excellence. 2. THE YEAR 2017 AT AMPO, AT A GLANCE TEAM • Idiazabal: 428 people • India: 239 people 12% women in the staff 3% women in the staff Average age: 40 Average age: 32 95% are cooperative members

• TURNOVER: €103,000,000 Number of SUPPLIERS: € purchased in a • INVESTMENT: €16,000,000 100-km radius: More than 500 €41,340,000 • SALES:

FOUNDRY: More than 5,000 Tonnes

4% 6% SOCIAL PROJECTS: per sector: 12% 26% VALVES GNL Mining €471,000 intended. Quantity: 118 projects Refinery, Offshore petrochemicals Others 52% and energy

CONSUMPTIONS:

Presence in 60 countries Export: 92,70% Electricity Natural Gas Water 20 MkWh 60 MkWh 47.396 m3 INVESTMENT IN PREVENTION Product development and Innovation intensity: AND ENVIRONMENTAL IMPROVEMENTS: research lines amount: 30 More than 2% €2,800,000

4 THE YEAR 2017 AT AMPO · At a glance 3. MISSION, VISION, VALUES VALUES AND COMMITMENTS AND COMMITMENTS

• Customer satisfaction, which, by providing the guarantee for its future, is its top priority.

• To maximise the professionalism of its People by allowing and encouraging their creativity and making them players in a permanently innovative project.

• Teamwork is the basis on which freedom, responsibility and leadership become integrated and coexist to MISSION obtain an efficiency based on a commitment to both quality and quantity.

• Communication, information and transparency in order to share knowledge, experience and skills as AMPO is defined as a “Project based on People” which, VISION well as to accept and exercise the responsibilities and underpinned by teamwork and communication, pursues assume the risks attached to them. the total satisfaction of their own People, Customers and external stakeholders, as well as profit which makes fair • To share its project with suppliers, Customers and and sustainable human development possible within a To offer castings, valves and other activities in the global society with an enriching and exciting vision of the framework of cooperative principles. marketplace which provide solutions to the needs of the future. Customers. • A commitment to quality, service, cost and health and safety in the workplace, which are understood to be fundamental keys of the activity and, all of this, in order to achieve excellence.

These values are a binding part of all projects and activities in which AMPO takes part.

MISSION, VISION AND VALUES 5 4. COMMITMENTS OF AMPO

4.1. COMMITMENT TO OUR EMPLOYEES

The wellbeing, satisfaction and professional development of People at AMPO is one of our company’s major priorities. People are the central axis of our mission, our values, our strategy and our management, which is why we refer to ourselves as a People-based project.

6 COMMITMENTS OF AMPO · Commitment to our employees All our teams work to a system of self-management; they know and participate in the objectives and strategy of AMPO, objectives which are always defined and agreed to at the cooperative’s General Assembly. The AMPO team currently consists of some 700 People EMPLOYMENT EVOLUTION EMPLOYMENT QUALITY between our staff in Idiazabal and in India, as well as our broad commercial network. For all our People, Customer satisfaction, the guarantee of our future, holds top priority. Despite the year’s unstable situation owing to the oil crisis, At the end of 2017, 95% of the workers at Idiazabal were All are therefore committed not only to quality, service and we must point out that in 2017 we managed to maintain cooperative members, and the remaining 5% were People cost, but also to health and safety at work on the road to our work force, with no dismissals. contracted while waiting for the opportunity to become excellence. In turn, AMPO is fully committed not only to members. These figures demonstrate AMPO’s commitment achieving the best possible professional competence of In 2017 we also introduced a special voluntary early to People. Here, instead of issuing short contracts for its People by enabling and promoting their creativity and retirement scheme with advantageous conditions for our periods of high production, we only recruit People to making them the lead players of a constantly innovating members aged 57 and over, meaning that we will soon occupy positions destined to become consolidated in the project, but also to sharing the project by fostering be able to take on new younger workers and give them future. communication, information and transparency. the opportunity to join our project. As far as AMPO INDIA is concerned, it has to be said that By way of an example, below you will find different On the other hand, the number of workers at AMPO India our workers in Coimbatore enjoy better working conditions aspects related to our organisational model, our policies on continues to rise steadily thanks to the setting up of a new than others in their area, meaning that the standard of employment and People management, our communications plant and the subsequent increase in our production employment is very high. and training models, etc. capacity.

COMMITMENTS OF AMPO · Commitment to our employees 7 process of organisational development for guaranteed The training took the shape of workshops and group and progress towards achievement of the cooperative objectives individual coaching sessions. ORGANISATIONAL and towards a culture of excellence. CULTURE MODEL At the end of the year, around 20 direct leaders were A first diagnosis of the situation was therefore made and introduced to the project and a workshop was organised the foundations of the new cultural model established. at which an agreement was reached on what was to be This was followed by the introduction of action-related expected of an AMPO leader. During 2018 this team Since 2003, AMPO has been employing a horizontal training and skills to both the AMPO board of directors will receive active training to acquire the skills assigned People-based organisational and management style. and to other indirect teams, with the participation of some to the figure of the leader and, subsequently, to continue Based on the objective of strengthening leadership and 80 People in this initial stage. This training enjoyed the designing the AMPO leadership model. teamwork at AMPO, in 2017 we took the first steps in the active participation of People, enabled by processes of With the definition of this new cultural model we aim to process to create and design a new model of organisational collaboration and motivated by a more active attitude become an excellent organisation while increasing the culture and leadership among People at AMPO. This towards learning, teamwork, leadership, self-management, feeling of belonging to AMPO and the satisfaction of our project, entitled “Working on change”, aims to create a participation, communication and progress. People.

8 COMMITMENTS OF AMPO · Commitment to our employees In 2017 we invested €292,800 in introducing the plan, → Courses on health & safety at work. 10% more than in 2016. → Courses on regulations and adaptations. TRAINING → Courses on managing documents and certificates. The number of training hours received by People at AMPO → Courses on measurements. in 2017 amounted to 8,083 hours, distributed into 74 → Course on cooperative training. training actions. Aware of the importance of training when it comes to → Course on managing supply and demand. consolidating the organisation’s continuous improvement We must also point out that the total number of People → Course on storage, conservation and packaging. processes and the quality of its products and services, trained in these different actions were 202 (with 391 → Course on what to do in the event of an as well as the need to continually adapt to the new participations). (The first total refers to the number of environmental emergency. challenges emerging every year and to broaden People’s People actually trained and the second to the number of → Course on refining and petrochemical processes. skills in order to make them more flexible, AMPO puts a participations ⇒ i.e. the same Person may attend several → Course for radioactive installations technicians. great deal of effort into training its people. courses). → Computer courses. → Courses on production procedures. Today we therefore have a biennial training plan which The average number of Hours per Person trained was → Course on cooperative education. encompasses all aspects of developing knowledge, skills 40.01 in 2017, a rise of 12% compared to 2016. → Courses on communications skills. and attitudes in People. Among others, the training sessions carried out were: → Level 2 ultrasound qualification. As a result, in 2017 we continued to introduce the training → Language courses: English, Italian, French, → Course on hydraulics. plan defined in 2016, adapting it to the yearly challenges Basque, German, Portuguese. → Workshop on sutures. of the organisation while taking account of the increased → Workshops and coaching sessions for development → Course on controller functions. complexity of our solutions and the rise in our Customers’ of the new organisational culture model. → Course on innovative initiatives focussed on expectations at both the commercial and the engineering → Courses on visual inspection and the inspection of promoting circular economy. levels. coatings. → Course on first aid. → Course on how to use lifting platforms. → Etc.

Also worthy of mention is the continuous flow of People between the Idiazabal and India plants in order to train colleagues in different subjects, such as: valve assembly, quality, painting, shipments, engineering, etc.

COMMITMENTS OF AMPO · Commitment to our employees 9 As a result, today we have two teams. On the one hand, People. At the end of 2017, and as a result of evolution in COMMUNICATION an internal communications team and, on the other, an the new organisational culture model project, we agreed AND PARTICIPATION IN external communications team. to revise and rearrange internal communications at AMPO to bring them into line with the needs of the process of MANAGEMENT The core objective of the external communications team change underway at our cooperative. We therefore is to define an annual communications plan and strategy created a new internal communications team, made up Communication is a key strategic factor for AMPO, given focussed on increasing notoriety of the AMPO brand of the General Director, the President, the HR team and that it is an indispensable tool for defining and sharing in both the market and society, maintaining our current the cooperative head of communications. Within the all information related to the corporate strategy with the position and transmitting values such as excellence and new internal Communications Plan the following internal AMPO People and with other groups of interest, including commitment. communication forums were designed and launched: Customers, suppliers, society, collaborators, etc. However, the internal communications team has a different role, given that its target public consists of the AMPO

10 COMMITMENTS OF AMPO · Commitment to our employees Both the Valves business and the Foundry and machining In the endeavour to bring Customers to the centre and In order to keep up to date with new tendencies and businesses will have their respective MONITORING benefit from the points in our relationship with them, we will therefore to continue developing the AMPO project, once TEAMS. Meeting every Friday, among other aspects the design new initiatives. For example, the recording of short a month we will organise talks by different companies, teams will monitor the objectives for the week. Once videos in which Customers explain their circumstances organisations, etc. These talks will be open to all People a month they will also analyse the monthly data of the and what they expect from AMPO. at AMPO. activity.

Aiming to ensure that all People at AMPO can share their In recent months we have launched several projects at We are currently immersed in a profound project of cultural concerns with the Managing Director, we will organise a AMPO including those related to LEAN Manufacturing, change at AMPO, and to help build it, we will launch the series of breakfasts/chats. Participants in these breakfasts the new organisational model, and actions arising from “AMPO NORTASUNA” project. Here the objective will be will have the opportunity to share their ideas with the the Strategic Plan 2017-2020. The objective will be to to leave the heirs of AMPO a far-reaching project already Managing Director over a one-hour period. share information on these projects in a more attractive up and running, to do which we will mobilise our People. way.

COMMITMENTS OF AMPO · Commitment to our employees 11 Besides these new initiatives, and to guarantee the best possible internal communications, the organisation also has a number of internal communications forums and tools:

COMMUNICATION FORUMS

→ General assembly:

This is the highest governing body and is the place where the organisational objective is expressed; its representatives are the Cooperative members-workers, regulated by AMPO’s Bylaws. All members have the same rights and obligations (one Person one vote), and make decisions on matters falling within their competence, such as: appointment of the Governing Council, the Supervisory Committee and the Social Council; approval of the accounts and balance sheets, distribution of surplus, social management, etc.; modifications to the Internal Regulations System, Articles of Association, etc.

In addition to the Ordinary General Assembly held in May, at which the Annual Accounts are presented and approved, in December another Extraordinary Assembly is held, at which the Ideas and Objectives for the following year are presented and approved. In other words, the Management Plan.

On the other hand, days prior to these General Assemblies, information meetings are also held, open to all members of the collective, at which the contents of the Assemblies are explained in detail. This enables us to obtain their feedback.

12 COMMITMENTS OF AMPO · Commitment to our employees COMMUNICATION CHANNELS

→ Jakintzazu magazine: :

This is a weekly newsletter, written in three languages (Basque, Spanish and English) and generally consisting of around 8 pages. This newsletter was first published in 2010 and is usually sent weekly to all people in the cooperative, → Monthly meetings: The topics discussed by the Social Council are later either by email or in paper format. The magazine contains To ensure that the monthly actions, decisions, etc. taken conveyed to all People by means of the Small Councils, articles and news on events at AMPO, with entries by both by the cooperative Coordinating Team (the Board which meet within each area or team. Each work group the Managing Director, the Governing Council and all of of Directors) and the Governing Council reach the whole elects their social representatives, who inform them on the the cooperative teams (sales, engineering, quality, India, collective, the bodies meet in the same week every month. topics discussed by the Social Council. The representatives AMPO Service, communication, innovation, production, At these meetings the monthly accounting statements in turn convey the concerns and suggestions of the Small purchases, computing, prevention and environment, HR, are studied in detail, together with their evolution with Council to the Social Council for their analysis and etc.). Also published is the weekly agenda of visits and respect to the “Ideas and Objectives” for the year (the debate. The Small Councils are enormously important birthdays. Management Plan), considering the pertinent investments forums for giving and receiving information on institutional and launching new actions, among many other aspects. and business matters. → Notice boards and screens: Notice boards are used to post different announcements, as The Governing Council meeting is usually followed by a → Weekly follow-up meetings: Social Council meeting that same afternoon. This is where are the screens installed in different areas of the company the Managing Director and the President of the Governing All the team leaders meet weekly to plan production for the premises. Here we can find urgent announcements, Council explain, among others, the decisions, actions and following week and commit to objectives. The information different kinds of information, visits, documents issued accounts of the month. The Social Council acts as the discussed at these meetings is later conveyed by the team by the HR team, the calendar, index tables, information link between the Governing Council, Board of Directors leaders to their team colleagues. Once a month appraisal about different company services, etc. and the staff with respect to employment matters affecting of the monthly activity is also made at these meetings. the member-workers by providing information, advice, → Email and phones: → Team meetings: consultation and making suggestions. The Social Council Today almost all of workers at AMPO have access to is made up of representatives of the different cooperative The majority of the teams hold meetings daily, monthly a personal or team email address at AMPO, and to a areas, meaning that the whole collective is represented. etc., as required. phone.

COMMITMENTS OF AMPO · Commitment to our employees 13 EQUALITY PLAN This plan has the objective to: Among other advances in 2017, a satisfaction survey was carried out on AMPO staff on work-life balance and • Protect the principle of equality and to ensure that on the design of a Work-Life Balance Plan, new equality it is applied throughout the cooperative. indicators were included, measures and resources were Since 2015, AMPO has been recognised as a Collaborative • Guarantee the principle of equal opportunities compiled for working women who may be the victims of Entity for the Equality of Women and Men by Emakunde, when hiring new employees. domestic abuse, and a Protocol was developed to prevent the Basque Institute for Women, due to the fact that it has • Guarantee the same economic and professional and take steps in situations of sexual harassment and both an Equality Committee and an Equality Plan. Today development opportunities to all People. discrimination. this Committee is made up of 13 people: 8 women and 5 • Promote the egalitarian use of forms of expression, Besides all of the above, AMPO has joined the Provincial men in total. both spoken and written. Council of ’s “Equality, Work-life Balance and The Equality Plan was designed for the 2014-2017 Shared Responsibility” programme, the aim of which is • Foster work-life balance. period, and we should point out that by late 2017, 75% of to launch new formulas of work-life balance, to promote said plan had been introduced, with many of the actions • Prevent and take steps in situations of sexual shared responsibility and to eradicate gender inequality pending introduction already underway. harassment and discrimination. in the workplace.

14 COMMITMENTS OF AMPO · Commitment to our employees and every one of us. As a result, in order to obtain the As far as the evaluation of risks at work is concerned, we highest possible participation and awareness, two work have also introduced a new application by OSARTEN to WORKPLACE HAZARD teams have been set in motion at AMPO: revise and update the structure of work stations and plan PREVENTION preventive actions. → The Health and Safety at Work Committee, which meets every three months. As well as applying preventive actions to work stations, we have also adapted some of our work installations, → The Prevention Team, which meets monthly with the At AMPO we are firmly committed to preventing risks such as the new machining centres. On the other hand, objective of developing and monitoring the Prevention at work and therefore constantly supervise all potential we have also adapted the foundry revealing booths to Plan. hazards, incidents and unsafe behaviour as well as meet the ATEX regulation. making programmed inspections in order to continually Besides this, in 2017 safety was incorporated to all the Hygiene is another of the aspects we are concerned about. improve the Health and Safety conditions of all workers. LEAN projects (application of the KAIZEN dynamics, As a result, in 2017 we designed a new sampling strategy All in accordance with legal requirements (Law on Health introduction of the 5S method, etc.) developed both in the to identify, limit and control exposure to formaldehyde, as and Safety at Work) and taking the OHSAS 18001 foundry and in the valves division. well as studying the introduction of a computer tool for standard as our reference. Prevention was also applied to the design and execution hygiene planning. One of the cooperative objectives in this area is to of a new machining factory and to the design of the On the other hand, we have given different training incorporate prevention to all activities and decisions at new valves division layout, particularly including the courses on prevention, such as: AMPO, because prevention is the responsibility of each installation of walkways and handrails, a reduction in the number of forklift trucks, etc. • Training on safety measures for the induction furnace.

• Course for all production heads on basic level prevention.

• Course on safety functions in induction melting.

• Training on what to do in the event of an environmental emergency.

• Course on theoretical/practical training for application of the CLP for controlling chemical products.

• Training on how to use lifting platforms.

• Course on ADR.

COMMITMENTS OF AMPO · Commitment to our employees 15 Also worthy of note is that in 2017 different programmes workshops where each of the participants received 12 OCCUPATIONAL HEALTH for improved health were carried out, particularly hours of training on healthy living habits. An explanation including the: was given regarding the importance of motivation in achieving change, stress management, taking their own AMPO has its own medical and physiotherapy service 1. FIFTY-FIFTY PROGRAMME: blood pressure, giving up tobacco, healthy eating and which is available to all workers in the cooperative. December 2017 saw the conclusion of the Fifty-Fifty regular physical exercise. Said training was accompanied Programme (devised by the prestigious cardiologist, by group dynamics to encourage internal change and to The Medical service carries out Health Surveillance for all Valentín Fuster), the objective of which was to improve the offer participants the possibility to develop capacities workers, in order to study and analyse interaction between overall health of People at AMPO by means of improving other than simple knowledge to help them improve. People and their working conditions and therefore detect their lifestyle habits thanks to self-monitoring the main potential diseases that can affect their health at the early Globally we can see that the programme had a beneficial factors of cardiovascular risk: excess weight/obesity, stages. This means that we can determine potential effect on healthy habits, since approximately 60% of the sedentary lifestyle, smoking and high blood pressure. limitations for developing the tasks involved in their work. participants have since improved their health habits and All this is achieved by means of health check-ups when Approximately 53 People from AMPO participated in factors, demonstrating healthier profiles at the end of the they start working with us and periodically according to the programme, 45 of whom actually completed it. The programme. previously established protocols and specific tests. initiative took the shape of educational and motivational

16 COMMITMENTS OF AMPO · Commitment to our employees 4. DETERMINATION OF COLLECTIVE AND INDIVIDUAL HEALTH CONDITION:

The AMPO medical service determines and continuously monitors collective and individual health.

5. COLLECTIVE PARTICIPATION IN VOLUNTARY BLOOD DONATION:

In Gipuzkoa 140 blood donations are needed every day to meet the provincial hemotherapy requirements. All People have the right to receive a transfusion when they need one, but that individual right must be maintained 2. FRUIT CORNERS: had dropped by 38%. However, more than 70% of the with gestures of solidarity from the community. As a result, participants succeeded in lowering their levels of LDL every year AMPO organises, at its work centre, a blood More and more companies care about their employees’ Cholesterol and increasing their HDL Cholesterol levels. donor day in which People usually participate voluntarily. diet, and this is something AMPO has been aware of In 2017, 30 People gave blood. for a long time. A few years ago, every week we would International guides on how to deal with dyslipidemia distribute 10 baskets of organic vegetables among our and cardiovascular prevention coincide on indicating as 6. COLLABORATION IN HEALTH employees, and in 2016 we installed fruit corners in an essential therapeutic objective reduction in the serum TRAINING: different parts of the company so that our workers could concentration of LDL Cholesterol. Eminently practical first aid courses were given on the help themselves free of charge. Today they are offered following subjects: Initial assessment in the event of accidents around 2 pieces of fruit every day. and Basic Life Support (BLS), Basic Cardiopulmonary According to the experts, the vitamins and water in fruit is Resuscitation (CPR) and Automated External Defibrillator the best way to activate the body and the mind. (DEA), how to treat injuries associated to traumatisms and the Emergency Plan. 3. 21 DAYS ON KAIKU BENECOL: Finally, we must also particularly mention the Physiotherapy In 2017, the AMPO medical service organised, in Service provided by AMPO. This service is available for collaboration with Osarten and Kaiku, a study on the 8 hours every day and can be used by the members of effects of consuming Kaiku Benecol in volunteers found to the collective at our installations. Thanks to this service, have a high level of cholesterol in their blood during the our members can receive therapy to relieve different kinds periodical tests carried out. After 21 days of consuming of pain through therapeutic exercise, heat, cold, light, Kaiku Benecol, the participants’ overall cholesterol levels manual techniques, etc.

COMMITMENTS OF AMPO · Commitment to our employees 17 4. COMMITMENTS OF AMPO

4.2. COMMITMENT TO CUSTOMERS

AMPO’s main objective is to build Customer loyalty, continually adapting to meet Customers’ needs and providing them with products, services and solutions that bring them greater added value. Value in terms of reliability, safety, service, quality, innovation and sustainability.

18 COMMITMENTS OF AMPO · Commitment to Customers SAFETY AND RELIABILITY

At AMPO, we take our commitment to safety and the some of the solutions available. For AMPO POYAM Engineering: Fluid-dynamic testing, seismic calculations, reliability of our solutions very seriously. We thoroughly VALVES, product reliability is essential, and it is considered mechanical analysis, thermographic simulation, P&ID adhere to all environmental standards and public safety in the development processes of all new projects. analysis, Finite Element Analysis, real torque testing, regulations on a global scale. research into gaskets, etc. It is worth pointing out that AMPO also signed collaboration With a huge installed base of valves and casting agreements with prestigious technology centres to be Materials: AMPO has its own foundry, which provides an components, operating in different oil & gas, chemical, able to continue developing the most innovative and excellent service and the highest quality components to petrochemical and mining plants in 5 continents for reliable solutions on the market for our Customers, jointly both the valves division and all its Customers, working as decades, we can say that AMPO solutions are reliable developing a range of improvement and research lines. an integral part of the manufacturing process. It is also at the very highest level. To do so, the company allocates worth pointing out that the innovation team is continually The valves we design and produce for high pressure and significant investment to innovation and technological working on cutting-edge designs to prevent wear, as well high temperature services also meet the Safety Integrity developments, constantly working on improvements to as in the development of new coatings to avoid friction Level (SIL), a standard that specifies the safety integrity the safety and reliability of its solutions. New condition between contact surfaces. The best product can avoid requirements that must be installed in all systems. monitoring technologies, new engineering solutions to corrosion, abrasion, adhesion or erosion, thus increasing adapt our valves to the most stringent levels of fugitive These valves also have a robust design, applying the service life of the valves. emissions, and the application of new coatings to help advanced technology both as regards engineering and protect the plants’ pipes from corrosion... these are just materials.

COMMITMENTS OF AMPO · Commitment to Customers 19 Furthermore, AMPO’s reliable solutions must guarantee maximum safety at the plant. This is why the AMPO SERVICE division guarantees technical assistance as quickly as possible anywhere around the world, and at any stage of the project. To do so, we have an extensive, highly experienced team of professionals at hand.

With this purpose in mind, we work in close collaboration with all the teams involved in the purchasing, installation, operation and maintenance of the valves at the plant, in order to transfer our knowledge about valves and, consequently, to ensure maximum safety, performance and maintenance of our equipment at the plant.

AMPO SERVICE also offers an integral preventive and predictive maintenance service to guarantee the valves perform correctly and the equipment works properly. In terms of preventive maintenance, we offer periodic inspections; and for predictive maintenance, we have developed an innovative system to monitor the installed valves anywhere in the world. This system detects potential errors that may arise in the valves installed at the plant, and makes it possible to prevent unexpected shutdowns. This system entails the valves being continually connected, so that we can monitor and analyse their status.

20 COMMITMENTS OF AMPO · Commitment to Customers • For this purpose, we have a team of Project Managers who ensure the production schedules are fulfilled to SERVICE the letter.

• We also have a QR coding system in production to guarantee the valves are completely traceable in At AMPO, our philosophy of service goes above and real time. As a result, all the information related to beyond the design, manufacture and maintenance of our each valve is saved on a system by means of these solutions. We aim to provide a comprehensive coverage codes: the different tests that they have undergone; of all the Customer’s needs, offering our problem-solving data related to the components and materials of each capacity and firm commitment always. valve; the traceability of the production process, etc. We know that one of our Customers’ most pressing needs In this way, we can give each product its own history, is to reduce delivery times. This is why, in 2017 we took making this information available to everyone at the significant steps forward in ourLEAN transformation press of a button. project, the main objective of which is to reduce delivery the new machining plant; ongoing improvement dynamics times for our Customers and thus offer them greater added on production lines, etc. value. This project is being developed in collaboration with specialists in advanced management models and, among We also currently offer a “Fast Track” service to restock other things, it is tackling the following tasks: redesigning valves and components when an urgent situation so the layout of the valves division; designing the layout of requires. In addition to this, the AMPO Service enables the Customer to have completely customised solutions, thanks to our technological capacity, even in the most severe service conditions. This is why the AMPO specialists get involved in every project when it comes to defining the necessary requirements alongside the Customer. The attention we offer is also close and personalised, a value which sets us apart from the rest.

This attention begins even before the order has been placed, as we carefully study all the requirements involved However, the service does not end with the delivery of and always suggest the optimum solution. During the valve the valves to the Customer, as once the valves have been production process, we remain in constant communication delivered, we advise on their installation and set-up, etc. with our Clients, offering a comprehensive service up until as well as providing ad-hoc services such as maintenance, the valves are delivered. training, restocking of components, etc.

COMMITMENTS OF AMPO · Commitment to Customers 21 and they have been accredited by the most important Intermediate and final inspections are carried out in all our external organisations around, such as Lloyd’s Register, areas of production. These inspections are documented QUALITY with the corresponding reports and certificates; they are Bureau Veritas (BV), Det Norske Veritas (DNV) and directly coordinated by an efficient, highly qualified team; American Bureau (ABS). AMPO also takes an active and they are always carried out in line with internal and part in international conventions such as that organised Quality is paramount for AMPO, so a quality guarantee external quality guarantee procedures and standards. All system is applied to all our production processes. These by the American Petroleum Institute (API), where the API phases, from the moment a purchase order is received up processes have been endorsed since 1991 with the standards are developed at the hand of EPC firms, end to the non-destructive testing (NDT), machining, assembly, ISO 9001, API spec Q1 and 6D, and SIL 3 standards, users and oil & gas equipment manufacturers. testing, painting and packaging, are carried out in keeping with the regulations stipulated in the Quality Assurance Manuals.

However, AMPO’s commitment to quality is not limited to merely complying with standards and inspections; this commitment is based on the implementation of a corporate culture in which quality is a priority, and where we adapt to meet our Customers’ needs. This is why the bases were set for the new AMPO Quality Systems Master Plan in 2017, which will be implemented in 2018. This Plan will be entirely based on the strictest quality standards.

As far as facilities are concerned, we have the most modern facilities available to carry out tests such as: X-ray, dye penetrant examination, ultrasonic tests, magnetic particle testing, PMI (Positive Material Identification), impact testing, visual inspections, hydrostatic tests, pneumatic tests, cryogenic testing or tests at low temperatures, fugitive emission testing, vacuum tests, tests at high temperatures, high pressure testing, etc. All these tests are carried out by highly qualified internal quality control personnel.

22 COMMITMENTS OF AMPO · Commitment to Customers COMMITMENTS OF AMPO · Commitment to Customers 23 INNOVATION

Backing innovation is indisputable, and it is the only way we can be prepared for the challenges of the future.

2017 was the year axial check valves, valves for buoy systems and valves for jacket systems were developed, which led us even further into the offshore and subsea markets. Apart from this, we have also worked on adapting our valves to the most stringent atmospheric emissions levels in force, in compliance with the SHELL-A level, optimising the top entry ball valve design, in the application of Through Conduit gate valves, …

Furthermore, in the case of the foundry, AMPO signed a collaboration agreement with CTI, by means of which the latter provided a consulting and operational advice service, implementing different lines of improvement and research on the ceramic moulding process, SCC [Shaped Centrifugal Casting], high alloy steels, patternless technology, the production of aluminium bronze castings, etc.

We have a great engineering team both at the foundry and the valve division working on developing new products, technologies and systems, also constantly collaborating with international research centres and prestigious universities.

In 2017 we had 30 product development and research lines operative, and the innovation intensity was more than 2%.

24 COMMITMENTS OF AMPO · Commitment to Customers All AMPO products are manufactured in compliance with The objective of these initiatives is to develop and apply SUSTAINABILITY the ISO 14001 standard. management systems and ideas that control and minimise any possible environmental impact. In 2017, AMPO also constructed the new machining plant, which was carried out in line with thorough environmental criteria and with the goal of obtaining LEED (Leadership Our firm commitment to the environment has led us to in Energy and Environmental Design) certification, which integrate new technological solutions in our products, and accredits sustainable buildings. The building includes site to include sustainability criteria in the construction and improvement measures, water saving, energy saving, maintenance of our facilities. more sustainable materials and resources, and a better We are working very hard to improve the valves’ quality indoor environment. performance in order to achieve zero-emission valves. Apart from this, we also constantly supervise all the We are also developing our own products based on the processes that affect production, and use renewable Ecodesign process, thus ensuring our solutions have a low energy sources in the development of new installations. environmental impact.

COMMITMENTS OF AMPO · Commitment to Customers 25 4. COMMITMENTS OF AMPO

4.3. COMMITMENT TO SOCIETY

To enable fair and sustainable human development. That’s AMPO’s core commitment to society in the local area where it goes about its activities. We are part of a community, and it is vital for us to continue relating to the environment and to perform as an active agent within that community.

26 COMMITMENTS OF AMPO · Commitment to society With this initiative AMPO seeks to socialise the scientific CULTURAL INITIATIVES AND research work carried out in the valley. ACTIVITIES But it also backs more local initiatives, among which we can particularly name its collaborations with:

• Local and regional cultural centres • Dance groups Consistent with the evolution of society’s needs, the AMPO supports and promotes cultural and traditional cooperative dedicates a significant amount of its economic activities in its surrounding environment. • Theatre groups resources and the dedication of its People to achieving • Schools and groups dedicated to the promotion of Worthy of mention is its sponsorship yet again in 2017 socioeconomic improvement of the environment and the music and singing of the “Gerriko Ikerlan Beka” competition, which has the society to which it belongs. objective to compile and publish research work on the • Associations of Bertsolaris (improvisors of Basque verse) In 2017 we promoted a total of 118 initiatives, to which Goierri region and its inhabitants. The research projects • Associations working to protect species in danger of we allocated approximately €471,000. submitted to the competition look into any sphere or extinction science related to the Goierri region: anthropology, Among other projects, AMPO promotes and supports the • Associations which promote organic foods toponymy, literature, health, industry, agriculture, biology, social economy and the cooperative movement, as well • Associations which promote Basque mythology history, economy, medicine, engineering, law, pedagogy, as all kinds of cultural, educational, sports and charity • Local magazines such as Goierrikaria and Aldaize psychology, philosophy, computer science, etc. In this initiatives and activities. All taking full consideration of edition the winning research project studies the emotional • Idiazabal Cheese Guild equality. creativity of students. • Groups fostering different kinds of local initiatives • Etc.

COMMITMENTS OF AMPO · Commitment to society 27 AMPO also aims to increase the use of and its normalisation, which is why it supports initiatives and associations, such as:

• The Goierri Cultural Association, whose aim is to promote cultural initiatives related to the Basque language. • The Association for the promotion and improvement of vocational education, developing didactic material in Basque for use at different levels of education. • Local associations fostering use of the Basque language by organising courses, discussion groups, radio programmes, competitions... among the inhabitants of — KORRIKA: A march organised every two years in the the region. EDUCATIONAL INITIATIVES AND Basque Country in favour of the Basque language, • Publications in local magazines and announcements on ACTIVITIES which also has the objective to raise funds for the radio stations. network of Basque teaching centres.

• Etc. Besides the above, it also supports other activities which At AMPO we believe that education is one of the factors foster and promote normalisation of the Basque language with greatest influence on the furthering and progress of It is also important to mention that AMPO has always at social level, such as Kilometroak and Korrika. In People and societies, which is why we collaborate with promoted the creation of schools, universities and the case of “Kilometroak”, it specifically sponsors the local schools and other organisations. As well as providing technology centres, such as: Goierri Eskola, LORTEK supervised bicycle park set up at the start of the route knowledge, education enriches culture, values and all of Technology Centre, etc. so that participants can ride their bike to the event and the factors which characterise us as People. leave it safely parked for the day. Thanks to this initiative, AMPO strengthens its commitment to sustainable mobility. Our initiatives in this sphere include: • Donations to schools in the territory.

• Promotion of Basque in the field of education, supporting activities and organisations such as:

— KILOMETROAK: An event organised by the Basque schools to promote use of the Basque language.

28 COMMITMENTS OF AMPO · Commitment to society giving a large number of youths the opportunity to enjoy the rugby experience. Today it has a team in SOCIAL INITIATIVES AND the top national category, although it also has line-ups ACTIVITIES in the lower divisions. We consider that the values of AMPO faithfully reflect the cooperative essence: teamwork, effort, dedication, involvement, Finally, we also collaborate with a variety of non-profit etc. associations, including: SPORT INITIATIVES AND – GOIERRI CYCLING TEAM: AMPO sponsors the Goierri • NAGUSILAN, an association focussed on active aging. ACTIVITIES region cycling team and backs cycling at different Besides Nagusilan, we also work directly with different levels. Among others, it promotes school cycling, the associations of pensioners and seniors in our area. junior and youth categories, the Elite Under-23s and • AECC, Spanish Association Against Cancer. At AMPO we also sponsor teams with a broad projection the amateur category. Thanks to this team, cyclists in in the surrounding area, such as: • The Gipuzkoa Food Bank, participating as volunteers in the valley have the possibility to practice cycling and to the Big Food Collection, and organising food collecting — AMPO ORDIZIA RUGBY: AMPO has now been obtain the training they need to enter the professional initiatives at AMPO. sponsoring the AMPO ORDIZIA rugby team for ranks. several years. The association was created in 1973, • The Association of parents of children with cancer in We also support other local sports communities, among Gipuzkoa, Aspanogi, whose mission is to improve the which are: quality of life in children with cancer and their families • Football, basketball, handball, swimming, athletics, and to meet their needs from the moment the disease is rural sports, boxing, tennis clubs, etc. diagnosed. • Mountaineering associations. • The Association of Retinosis Pigmentosa sufferers in • Classic cycling races and trials, and cycling marches. Gipuzkoa, Begisare. • Basque pelota and pala associations. • Associations which work to encourage living together • Etc. between citizens from different countries. • Etc.

COMMITMENTS OF AMPO · Commitment to society 29 4. COMMITMENTS OF AMPO

4.4. COMMITMENT TO THE ENVIRONMENT

At AMPO we are fully aware that a productive model that fails to respect the environment is not feasible. For that reason, in recent years, we have maintained a determined and economically backed commitment to minimise the environment impacts of our activity as much as possible.

30 COMMITMENTS OF AMPO · Commitment to the environment To this end, an exhaustive analysis of the application legislation was carried out, as well as a process of documentary and technical adaptation to said legislation, which culminated in obtaining the Integrated Environmental Authorisation in 2008.

AMPO’s commitment, however, is not only to comply with the legislation. It goes beyond that. As a result, once this adaptation was completed, the ISO 14001 certification was obtained by our valves division in 2009. Work continued in parallel, and this certification was obtained also by our foundry division, which joined both in 2015.

COMMITMENTS OF AMPO · Commitment to the environment 31 ATMOSPHERE WATER

Discharge into the river (m3) One of the main environmental aspects of industrial With respect to water, we have worked on two main lines: activities is emissions to the atmosphere. At AMPO, we 3.500 • Strict control of the pouring parameters, so that have defined the minimisation of these emissions as one of all the parameters of discharge into the river are our environmental priorities, which is why major investment below the permitted limits. 3.000 have been made in recent years in filtering technologies, 3.088 both in the foundry and painting booths, which have • Minimisation of the total dumping amounts. enabled us not only to comply with the emission limits, but For this purpose, during the last years, several 2.500 also to overcome them by a wide margin. actions have been carried out that have made it possible to reduce the total discharge into the This, along with an exhaustive preventive and predictive 2.000 river considerably, through the installation of maintenance, has given an extraordinary boost in the closed water circuits in various facilities such as minimisation of atmospheric emissions by AMPO. heat treatment, dye penetrant tests, ball cooling, 1.500 In 2017 construction works for the new machining plant etc. Subsequently, AMPO installed in 2015 an were developed in Idiazabal, where we installed a new evaporator to treat waters from the plant, which 1.000 1.162 suction and machining oil mists filtering network, with 8 has enabled a further reduction in the discharge filtration equipments integrated. of water into the river. This treated water is 808 subsequently used in the process. Therefore, these 500 AMPO currently has 32 particle filters and 10 filtering actions have a dual positive environmental impact, devices for oil mists. reducing water consumption and discharge into 0 the river. 2015 2016 2017

32 COMMITMENTS OF AMPO · Commitment to the environment NOISE

In 2008 we started an Action Plan against noise with the aim of assessing the impact of our activity in the environment. Subsequently, an initial noise map and a series of recommendations for improvement were obtained, which have been gradually introduced over the last few years. The main measures consisted of:

• The installation of silencers in the main suction chimneys (Induction furnaces, Ceramic Moulding, Shot blasting, Thermal sand recovery, demoulding machines,…). We currently have 12 silencers.

• Acoustic insulation of the main suction motors (Induction furnaces, Ceramic Moulding, Shot blasting, Thermal sand recovery, demoulding machines,…).

• Modification in the orientation of certain foci.

• Inclusion of environmental noise criteria in the new investments bidding document.

Thanks to these actions, the improvement has been notable and we have been able to reduce noise emissions considerably.

COMMITMENTS OF AMPO · Commitment to the environment 33 scraps, waste, etc. ensuring a safe storage, without any SOILS environmental impact. WASTE

The foundry processes generate large amounts of inert Over last years, AMPO has also advanced considerably ENVIRONMENTAL INVESTMENTS waste. Nevertheless, AMPO has had, since 2008, a in this field, improving the storage conditions of chemical mechanical sand recovery unit, products in the plant, extending the use of drum pallets, with a capacity of 20 tonnes per hour and a thermal sand recovery unit with a etc. AMPO’s environmental commitment has been supported capacity of 3 tonnes per hour. Later, in 2012, a chromite economically, which has enabled a great investment effort In 2017 we completed the construction of the waste sand recovery unit with a capacity of 5 tonnes per hour maintained over the past years in the different facilities storage marquee, within the framework of the new was installed. With this equipment, a large part of the already mentioned. machining plant construction. This construction has sand used in the moulding process is recovered, enabling been an important improvement in the storage of steel The total environmental investments have been as follows: its reintroduction in the process with a dual objective: to reduce the consumption of materials and to generate less waste.

In parallel, since 2015, we have worked alongside other Workplace hazard prevention and environmental investments (euros) foundries in collaboration with the Basque Government and Ihobe (Public Environmental Management Association 3.000.000 of the Basque Country) in a circular economy project to find different alternatives for the sands that cannot be 2.500.000 recovered, so that we can use the treated sand in other sectors as raw material, instead of dumping it in landfills. 2.000.000 Moreover, completely in line with the circular economy 1.500.000 philosophy, AMPO has since 2010 a chip treatment facility, which allows grinding, washing and briquetting 1.000.000 the chip generated as waste during our machining processes. Consequently, we are able to melt this material 500.000 again, reducing the generation of waste as well as raw material consumption.

0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

34 COMMITMENTS OF AMPO · Commitment to the environment COMMITMENTS OF AMPO · Commitment to the environment 35 ENERGY

Although AMPO has been carrying out different actions in terms of energy efficiency for years, in 2016 a comprehensive energy audit was carried out with the aim of obtaining a Global Energy Saving and Efficiency Action Plan, which will allow us to determine the main areas of action and prioritise the different actions to carry out during 2017 and 2020.

AMPO also has a cogeneration plant, which can produce heat and energy in a highly efficient way, since the heat generated in the combustion of natural gas is used for processes that require heating.

In line with this philosophy of energy saving, in 2014 a geothermal exchange installation was stablished to obtain heating in the rehabilitation of the Creativity House of AMPO.

Moreover, energy efficiency is a factor that is being given special importance in all new projects, such as the expansion project of the machining workshop, which has been carried out in accordance with LEED Certification. This certification provides a framework to create healthy, highly efficient and cost-saving green buildings. The most remarkable elements of this new building in terms of energy are:

• Installation of translucent panels in façades and roofs in order to maximize the entry of natural light and to reduce electricity consumption in terms of lighting.

• Installation of low consumption LED lighting.

• A green roof, which in addition to minimizing the visual impact of the factory, will allow a better thermal insulation.

36 COMMITMENTS OF AMPO · Commitment to the environment Gas natural consumption in the Foundry (kwh/kg prod)

- 6,5

+ 3 - 0,9

- 1,4

2013 2014 2015 2016 2017

Electricity consumption in the Foundry (kwh/kg prod)

+ 0,1 = + 0,8 - 0,5

2013 2014 2015 2016 2017

COMMITMENTS OF AMPO · Commitment to the environment 37 4. COMMITMENTS OF AMPO

4.5. COMMITMENT TO OUR COLLABORATORS

AMPO is part of a community and, as a result, it is of vital importance for us to continually relate to the area around us and to be an active agent within the community. The aim is to grow, and to help society grow.

38 COMMITMENTS OF AMPO · Commitment to our collaborators To do so, we rely on the assistance of our suppliers, whom long-term relationships with those collaborators who offer service; and optimise the cost of the services or materials we consider an important part of our value chain; we products and services that help us improve our competitive in question. actively collaborate with universities, technology centres standing, so that we can grow and develop together. We In addition, we search for the maximum integration of and start-ups; we participate in consortiums; we are active do so by promoting relationships based on trust and which our suppliers, as continual collaboration helps us to members of different associations; and we also maintain can be sustained over time. improve their processes and brings greater added value close relationships with institutions Another of the fundamental objectives of our supply chain to our project. For this purpose, we offer our suppliers management policy is to help maintain and protect the different levels of integration. For example, 14 of them local business fabric and to generate value in our local have the highest level of integration, and participate in environment. Based on this policy, in 2017 we made our production programme. purchases of approximately 41 million euros within a We are currently also working on the design of a new 100-kilometre radius. It is also worth pointing out that, OUR SUPPLIERS, PART OF purchasing model, which we plan to implement in 2018. in the case of development and innovation projects, as This model will have a more global vision and its objective OUR VALUE CHAIN well as in the case of solutions for after-sales services, will be to improve service and quality, among other things. we always work hand in hand with local suppliers who ensure optimum quality and excellent service.

At AMPO, we are aware that our sustainability as a As regards endorsements, AMPO currently has over project does not only depend on our efforts, but on the 250 approved suppliers. The approval process for efforts of our entire value chain. That is why we consider suppliers backs a working model that aims to promote the relationship with our suppliers and collaborators to be ethical conduct in line with our strategy; reduce financial, fundamental. Taking this as a starting point, we promote operational and legal risks; ensure maximum levels of

COMMITMENTS OF AMPO · Commitment to our collaborators 39 • We organise visits and conferences at AMPO, so researchers with experience in the subject matter that students can see the industry in real life, first- take part directly in these projects. This type of hand. experience has two advantages: on one hand, the students from the campus have the chance • We jointly develop innovation and engineering to directly participate in research projects that projects in collaboration with universities’ support the needs of local businesses; and on engineering departments. This is the case with the the other hand, the companies are provided with MONDRAGON UNIBERTSITATEA Goierri campus, young engineers who are being trained in specific with which we collaborate in projects on materials, subjects, enriching the reserves for the local characterisation and optimisation of designs and industrial fabric. the development of innovative products, etc. Both students in their last year of study and teachers/

COLLABORATION WITH UNIVERSITIES

AMPO collaborates with different local universities, such as MONDRAGON UNIBERTSITATEA, TECNUN, DEUSTO and EHU, through the following policies and initiatives:

• We offer internships and End of Degree projects for different university disciplines. In the case of MONDRAGON UNIBERTSITATEA, we are assisted by the educational development cooperative, ALECOP. From an essentially social approach, they provide students with real contact with companies, whilst offering those companies the opportunity to work with People with suitable training.

• We participate in Employment Forums organized by diverse universities, collaborating in the training and incorporation of their students to the labour market.

40 COMMITMENTS OF AMPO · Commitment to our collaborators innovation network, such as CEIT, Tecnalia, Lortek, COLLABORATION WITH Mondragon Unibertsitatea and also with participation from the Energy Cluster. All this has the purpose of TECHNOLOGY CENTRES, START- generating a range of high-performance products with UPS AND CONSORTIUMS high added value, such as pipelines (umbilicals and Subsea Umbilical Riser Flowlines (SURF)), valves and fixings, all optimised for use in oil and gas exploration and production in non-conventional environments. AMPO also collaborates continuously with prestigious – GALDA 4.0: The objective of this consortium is to local and international technology centres, such as Lortek, produce sand moulds through machining. As a result, Ikerlan, CIET, Tekniker, CEIT, Azterlan, CTI, etc. who there would be no need to use wooden moulds and complement our knowledge and skills. the sand moulds would be produced directly from 3D We should also highlight that, in 2016 we began to plans sent by the Customer. This consortium is made collaborate with specialised technology-based start-ups up of companies such as Olazabal y Huarte, Guivisa, and with innovative business models, which offer us Zubiola, Euskatfund and the Ideko and Azterlan specific solutions to our needs, for example: technology centres. • Cybersecurity and Linux applications programming.

• PCB design and development of embedded systems.

• Development of web servers and database and to fouling, as well as providing them with high applications. aesthetic value. We take part in this project alongside • Development of ultra-low consumption electronic companies such as Orbea, Maier, ABB Niessen, and RFID communication. Cikautxo, Mugape, Irurena, and R+D institutions, such as IK4-Cidetec, Maier Technology Center, IK4- • Development of electronic systems for explosive Tekniker, Cikatek R&D and innovation centre and atmospheres. Mondragon Goi Eskola Politeknikoa. We also participate in different consortiums, collaborating – AMBAR: In order to take a competitive leap and with leading companies in the area, among which we improve and consolidate the technological and may highlight the following: commercial standing of Basque companies in the Oil – HAZITEK FUNCIONA4: This consortium aims to & Gas sector in marine environments, the AMBAR develop new surface finishes with a personalised consortium was created in 2016, and is made up function that will give the products greater resistance of TTI Tubacex, Erreka, Aceralava Tubacex and to corrosion, to mechanical surface degradation other agents in the Basque science, technology and

COMMITMENTS OF AMPO · Commitment to our collaborators 41 – GOILAN: Goilan strives to promote the growth of out that AMPO currently holds the Presidency of this cooperatives in its region, which is its main objective. Association. ACTIVE MEMBERS OF DIFFERENT In other words, the development of cooperativism Throughout 2017, AMPO participated in several ASSOCIATIONS in the region, promoting technological, human and commercial missions as well as fact-finding missions social training and education, and the development of organised by the Association, for example on one such companies and activities that generate a progressive mission to Turkmenistan. It also took part in several AMPO actively participates in the following associations, socio-economic transformation. collaboration agreements, including a cybersecurity whose objectives are defined below: – GOIERRI FOUNDATION: Its business purpose is to agreement with Entelgy. – GOIERRI VALLEY: This alliance was initially formed by promote training and the technical, economic and – FUNDIGEX: Fundigex is the Spanish Association 33 companies in the Goierri region in June 2017. Its social development of the Goierri region. of Casting Exporters, a non-profit organisation mission is to be the driving force behind the industrial – FLUIDEX: Fluidex is the Spanish Association for Fluid whose main objective is to promote the export and transformation of the Goierri region, through the Handling Solutions & Process Technologies, a non- internationalisation of companies in the foundry sector. active collaboration of associated companies, sharing profit association that has had a strong international knowledge and innovating to ensure the area’s future – NER GROUP: This is an Association in which different outlook since it began. The Association coordinates sustainability and industrial competitiveness. The organisations come together under the New Style programmes and working groups that promote alliance brings together leading companies in the of Relationships (organisational model). We share research, development and innovation strategies to region (CAF, Irizar, AMPO, Indar, Orkli, Jaso, GH,) experiences, synergies and knowledge. We also achieve a greater position in the market. In 2017, and SMEs that are mostly their suppliers. combine our efforts to improve, advance, be more the Association decided to back a Strategic Plan to efficient and achieve better results. All this with a clear define the lines of action to be followed in the future, concern for society, in pursuit of fair and sustainable and it did so with the opinions and observations of human development. its member companies, with the purpose of providing a better and greater service. It is also worth pointing

42 COMMITMENTS OF AMPO · Commitment to our collaborators COMMITMENTS OF AMPO · Commitment to our collaborators 43 RELATIONSHIP WITH INSTITUTIONS

At AMPO we believe that for society and business organisations to advance, there has to be continuous public-private collaboration, and this is why we maintain solid institutional relationships with all public agents, including the Basque Government, the Gipuzkoa Provincial Council, Idiazabal Town Council, the Goierri Regional Development Agency, Goieki, etc.

An example of this is the participation by representatives of the Basque Government (through the participation of the Basque business development agency, SPRI), of the Gipuzkoa Provincial Council, and of the Chamber of Commerce in the ceremony to mark the opening of the new AMPO INDIA plant in June, where they travelled to Coimbatore (Tamil Nadu, India) to see our new premises first-hand. From the Gipuzkoa Provincial Council we had the pleasure of receiving Ainhoa Aizpuru, Deputy for Economic Development, Rural Environment and Territorial Balance, and Antton Tomasena, Director of Economic Development. Also participating was the Director of SPRI, Alexander Arriola, the Director of Internationalisation, Miren Madinabeitia and the Director of SPRI INDIA, Hemant Agarwal, all on behalf of the Basque Government. Lastly, also in attendance was Amaia Ferro, the Director of Industry and Internationalisation at the Gipuzkoa Chamber of Commerce.

44 COMMITMENTS OF AMPO · Commitment to our collaborators On a different line, we are also participating in the highly qualified in different business fields. Apart from the Goierri region, through the active collaboration of “ETORKIZUNA ERAIKIZ” programme from the Gipuzkoa the “Gipuzkoa Talent” forum, AMPO also participated associated companies, sharing knowledge and innovating Provincial Council, where we have joined forces with in “Bizkaia Talent”, whose objective is similar to the to ensure the area’s future sustainability and industrial institutions to tackle the challenges facing Gipuzkoa, Gipuzkoa programme. competitiveness. For this purpose, the group had a playing an active part in two of the projects run by budget of 200,000 € in 2017. GOIERRI VALLEY includes As far as the region is concerned, we also have a the Provincial Council. The first of these projects is the driving forces such as CAF, Irizar, AMPO, Indar, Orkli, close relationship with GOIEKI, the Goierri Regional “Equality, Work-life Balance and Shared Responsibility” Jaso, GH,…. and also SMEs, such as Arri, Ederfil Becker, Development Agency, which is made up of the 18 Town programme, the aim of which is to launch new formulas Eredu, GetSubsea, Goieki, Gune, Hine, Labe-lan,…. Councils in the region, and with which we collaborate on of work-life balance, to promote shared responsibility and a range of projects in the industrial and social areas. At the same time, we continue to take part in the region’s to eradicate gender inequality at home. The second is in Industry Forum, which was created with the objective the “Gipuzkoa Talent” forum, the objective of which is 2017 was also a key year in terms of regional collaboration, in mind of promoting the region’s sustainability and to promote and encourage the region’s human capital, as the GOIERRI VALLEY alliance was launched in June. competitiveness, with collaboration from companies such and to connect it with those companies who require that This alliance was initially made up of 33 companies in as Orkli, Irizar, Indar, Hine, etc. as well as members of talent for their future challenges. This initiative aims to the region, including AMPO, and its mission is to be Goierri Eskola, Goierri Goi Maila Eskola, Goieki and attract, bring back and keep in the area People who are the driving force behind the industrial transformation of Lortek. In this forum, we are constantly reflecting on the challenges facing the region’s industrial development and the implementation of lines of work related to those challenges. Consequently, in 2017, one of the areas that they chose to work on was 4.0 Industry. Within the framework of this project, a range of workshops were organised on the subjects of big data, additive manufacturing, artificial vision, robotics and augmented reality, as well as evaluating the necessary profiles for this industry and conducting visits to companies to find out their experiences with these new technologies in person.

Finally, we should highlight that, in 2017, AMPO once again had the economic support of the institutions, having received different grants and subsidies to develop a range of R+D+i projects.

COMMITMENTS OF AMPO · Commitment to our collaborators 45 5. MAIN MILESTONES OF 2017

3400 AMPO valves installed there. It currently offers one of the most extensive ranges on the CUSTOMERS AND PROJECTS market for the Delayed Coking process, including: AMPO POYAM VALVES STRENGTHENS ITS HYDROCARBON DIVISION • Plug valves • Switch valves with controls AMPO POYAM VALVES has strengthened its hydrocarbon VALVES division with the incorporation of a highly experienced • Gate valves expert in refining and petrochemicals. • High temperature ball valves DAHEJ LNG PROJECT - PHASE III AMPO POYAM VALVES has been designing and • Pressure Seal valves for high pressure steam lines AMPO POYAM VALVES supplied over 1000 cryogenic producing high-tech valves for refining processes since valves for the third phase of the DAHEJ LNG project 1964, supplying the finest, most critical valves for the • Axial check valves in 2017, the end user of which was PETRONET LNG. sector. In total, different manual and motorised cryogenic ball valves were supplied, as well as cryogenic check, globe and gate valves.

The DAHEJ LNG regasification plant is located in the state of Gujarat (India) and with the third phase of the project, the plant will increase its production capacity from 10 mmtpa to 15 mmtpa.

Beforehand, AMPO supplied over 2400 cryogenic globe, gate and check valves for the previous phases of the project. In the years 2005 and 2014, to be precise. As a result, the DAHEJ project will now have a base of over

46 MAIN MILESTONES OF 2017 · Customers and projects LIFT PLUG VALVES WITH HYDRAULIC heating oil, asphalt, anode and fuel grade petroleum entrusted AMPO POYAM VALVES with the design and ACTUATORS FOR THE GERMAN coke. manufacture of 750 high-performance valves for the oil REFINERY, MIRO The refinery produces 58,000 barrels a day, which are company’s different plants around Saudi Arabia.

In 2017, AMPO designed and manufactured several mostly distributed to Customers in south-west Germany, AMPO will give Saudi Aramco 750 high-performance lift plug valves with hydraulic actuators for the German northern Switzerland and western Austria. ball and check valves between 2017 and 2018, all Customer Mineraloelraffinerie Oberrhein GmbH (MiRO). The AMPO lift plug valves will be installed in the refinery’s covered inside with FBE (Fusion Bonded Epoxy) coating. This refinery is a joint venture between MiRO and Phillips delayed coker unit, and they have been designed and This coating helps to protect the plants’ pipelines from 66, and is located on the banks of the river Rhine in manufactured under the Bechtel Hydrocarbon Technology corrosion, as well as providing improved properties for the Karlsruhe, south-west Germany. Solutions licence, also in line with German regulations. valves to operate at high temperatures, and protecting the equipment against mechanical damage, etc. In addition, 750 FBE-COATED VALVES FOR SAUDI this covering adheres perfectly to interior surfaces. ARAMCO Furthermore, all the ball valves delivered will be large and Saudi Aramco, the state oil and gas company with for high pressure services (1500 lb), so they all come with headquarters in central-eastern Saudi Arabia, has metallic seats.

The facilities include: three crude units, fluid catalytic cracking (FCC), coking and calcination, hydrodesulphurisation, naphtha reformers, isomerisation, ethyl tert-butyl ether (ETBE) and alkylation units, which enable them to produce transport fuels, such as petrol, diesel and aviation fuel. However, they also produce other products such as raw petrochemical materials, home

MAIN MILESTONES OF 2017 · Customers and projects 47 AMPO SERVICE TOOK PART IN The size of the valves supplied and installed by AMPO THE COMMISSIONING OF THE ranged between 2” and 24”, and the pressure range PARAGOMINAS BAUXITE MINE varied between 150 and 900 lbs.

AMPO SERVICE collaborated in the commissioning of the It is worth pointing out that the AMPO SERVICE specialists Plateau Tailings Dam project in the Paragominas bauxite coordinated the start-up work for several months, in mine, located in the state of Pará, northern Brazil. A range collaboration with the Customer, and all to ensure work was of professionals and technical experts from AMPO SERVICE carried out as efficiently as possible. AMPO SERVICE also went to Brazil to ensure a total of 65 severe service valves provided training and advice to the plant’s maintenance were correctly installed at the plant, which AMPO POYAM technicians and operators. This training programme deals VALVES had supplied beforehand in 2016, as well as with aspects related to the valves, actuators, regulation, overseeing the correct installation of the hydraulic systems etc., and focuses on preventive maintenance and that drive the equipment. knowledge of the valves being used, to make sure the plant DOUBLE BLOCK AND BLEED (TWIN BALL) is as self-sufficient as possible. Optimum maintenance of the All these valves were installed in the tailings pipelines at VALVE TO ENSURE RELIABILITY AT SHELL’S equipment will also optimise the valves’ life. the plant belonging to the end user HYDRO (MINERAÇAO NMIF PLANT PARAGOMINAS S.A), whose main objective is to transport AXIAL CHECK VALVES FOR GURU AMPO POYAM VALVES supplied several actuated Double bauxite. GOBIND SINGH REFINERY Block and Bleed (twin ball) valves for the Northern Mindanao Import Facility (NMIF) in the Philippines. The EPC company and end user HMEL entrusted AMPO This plant was opened in July 2016, and it has a POYAM VALVES with the design and manufacture of storage capacity of 90 million litres of fuel to meet the several axial check valves, which will be installed at needs of millions of users in the Visayas and Mindanao GURU GOBIND SINGH, the fifth largest refinery in India. archipelagos. This refinery has contributed to increasing India’s refining capacity from 62 to 213 million tonnes. The end user SHELL and the EPC company JGC PHILIPPINES once again called on AMPO POYAM VALVES to design The axial check valves supplied will work under a hydrogen and manufacture these valves for a highly critical system and their purpose is to protect rotating equipment, application in which the line’s maximum insulation and preventing adverse flow and water hammer effect. Apart sealing are crucial to guarantee the system’s integrity. from this, we should also highlight that the equipment With this objective in mind, the twin ball valves have will operate at high temperatures, ranging from 326ºC gradually been replacing the two single ball valves to 423ºC. The AMPO engineering team has worked hard with continuous insulation, given that this is the more to offer the Customer an ideal technological solution, thus competitive and reliable solution. The DBB valves close the enabling minimum pressure drop in the valves. two balls simultaneously, thus ensuring the line is completely insulated and reducing the risk of atmospheric emissions.

48 MAIN MILESTONES OF 2017 · Customers and projects MAIN MILESTONES OF 2017 · Customers and projects 49 CRYOGENIC BUTTERFLY VALVES FOR THE plant is owned by FLUXYS LNG, who is also in charge of of this type of valve, and guaranteeing maximum reliability. ZEEBRUGGE LNG EXTENSION its activity. Consequently, AMPO POYAM VALVES can now offer the newest, most reliable triple eccentric butterfly valve for The Belgian natural gas operator, FLUXYS LNG and the This new order had 57 cryogenic butterfly valves, as well cryogenic services on the market today. EPC firm FELGUERA IHI once again entrusted AMPO as 1198 ball, globe, gate and check valves. POYAM VALVES with the design and manufacture of In addition to all this, we will also supply after-sales Ball and butterfly valves are quarter-turn valves that 1255 butterfly, ball, gate and check valves. These high- services at the terminal, supporting the construction and are mainly used for on/off applications. AMPO has tech valves will be installed on the fifth LNG storage tank commissioning of the facilities with a team of AMPO traditionally offered ball valves for this type of application, at the ZEEBRUGE LNG plant in Belgium, with a capacity SERVICE technical experts. Our participation will be but with the objective in mind of meeting our Customers’ for 180,000 cubic metres. essential, as the Customer needs to disassemble the needs and covering the low and medium pressure valve valves before their on-line installation, so as to be able In recent years, ZEEBRUGE LNG has become established range (up to 900 lb) and also for the large sizes with to assemble them again with our technical experts. Our as a major gas distribution platform, to the point that it butterfly valves, it has created an innovative butterfly valve technical staff will be involved in the start-up in order to now supplies 15% of the western European market. This design, finding a solution to several known disadvantages avoid any unforeseen incidents related to the valves.

2500# CRYOGENIC VALVES FOR A NORWEGIAN LNG CARRIER

Hyundai Heavy Industries and Knutsen OAS South Korea entrusted AMPO POYAM VALVES with the design and manufacture of a series of 2500# cryogenic ball valves, which will be installed on a Norwegian LNG carrier owned by KNUTSEN OAS SHIPPING and which is currently being built in South Korea by the engineering firm Hyundai Heavy Industries. These valves will specifically be installed on the carrier’s LNG pipes for the fuel inlet. The vessel includes gas/diesel-injected engines (ME-GI technology) and that is why the valves that are installed have to be able to stand high pressure levels.

50 MAIN MILESTONES OF 2017 · Customers and projects 36” AND 900 LBS PRESSURE SEAL GATE VALVES FOR A METHANOL PLANT

AMPO POYAM VALVES designed and manufactured actuated gate valves for high pressure services, which will be installed in a 5500 MTPD-capacity Methanol Unit.

These valves for high pressure services of up to 36” and 900 lbs are critical, due to their size, pressure and material. AMPO POYAM VALVES is one of the world’s leading manufacturers of high pressure gate, globe and pressure seal check valves, and it has a reputation for being a leader in reliable, safe solutions.

Our valves for high pressure are designed, produced and tested to guarantee sealing, and to ensure correct operation according to the ANSI, API, ASME, ASTME, BS and MSS standards. However, AMPO POYAM VALVES AMPO SERVICE OFFERS FAST-TRACK 70 CUSTOMER ASSISTANCES can also comply with any additional requirements or REPLACEMENT SERVICES WORLDWIDE specifications the Customer may have. In order to improve the service it offers its Customers, In 2017, AMPO SERVICE provided assistance to AMPO SERVICE provides a fast-track replacement service, Customers on 70 occasions, to offer support to the plants’ as well as a global spare parts management service for technical staff during equipment installation and plant its clients. start-up, as well as for valve maintenance work.

AMPO SERVICE has extensive experience working hand AMPO SERVICE always guarantees technical assistance in hand with technical staff at the plants and defining the in under 72 hours anywhere around the world, and at minimum availability of spare parts in order to deal with any stage of the project. To do so, we have an extensive, any unexpected problem on site with minimum impact on highly experienced team of professionals at hand. Our production. team also works in close collaboration with all the teams involved in the valve purchase, installation, operation As a result, AMPO SERVICE currently offers a range of and maintenance. The purpose of this is to transfer kits that cover the needs of each valve to tackle different our knowledge of valves and, consequently, to ensure situations: optimum performance and maintenance of our equipment a) Valve inspection kit at the plant. b) External leakage kit c) Internal passing repair kit d) Functionality repair kit e) Valve replacement MAIN MILESTONES OF 2017 · Customers and projects 51 FOUNDRY under gravity flow, and is mainly used in food and 100 PUMP COMPONENTS IN SUPER FULLY MACHINED STAINLESS pharmaceutical applications, as is the case here. DUPLEX MATERIAL FOR A DESALINATION STEEL CASTINGS FOR A LEADING PLANT IN OMAN MANUFACTURER OF ROTARY VALVES The common features of these applications are usually the following: they are fluids or adhesive, cohesive, corrosive AMPO supplied around 100 pump components in super A world leader in the design and manufacture of rotary products with a tendency to accumulate on swept surfaces, duplex material (Gr5A) for the BARKA DESALINATION valves commissioned AMPO FOUNDRY to make all the etc. and which are compatible with the use of stainless project, which is a consortium that is formed by SUEZ and fully machined stainless steel castings for its rotary valves. steel with polished or non-stick surfaces. its partners to finance, construct and operate a sea water These valves will be used for food and pharmaceutical As a result, AMPO FOUNDRY supplied the Customer desalination plant in Barka (Oman). applications all over the world. with all the foundry components in stainless steel with an The Customer is one of the most important pump manufacturers Rotary valves are one of the most common means of excellent surface finish. These products were produced in the world, and they chose AMPO FOUNDRY to make a feeding pneumatic conveyance systems, both for pressure using Ceramic Moulding technology, which enables total of 100 casting components such as impellers, casings and for vacuum. There are many other applications in AMPO to offer its Customers large castings and those with for volute pumps, side covers, etc. bringing the weight of all which they are used simply to measure the speed of a complex shapes, all with the very finest surface finishes. the components to 30 tonnes. controlled feed. It is a compact mechanical device that This technology is also highly automatic, which has made The reverse osmosis desalination plant in the Sultanate of is used to continually discharge bulk powder or granules it possible to increase its competitive edge. Oman will start to supply drinking water in April 2018, which will have a capacity of 281,000 m3 per day.

52 MAIN MILESTONES OF 2017 · Customers and projects KEY COMPONENTS FOR THE MARINE AFTERMARKET COMPONENTS FOR COMPONENTS FOR COMPRESSORS PROPULSION SECTOR HYDRO TURBINES FOR DIFFERENT An American compressor manufacturer based in Europe POWER PLANTS IN COLOMBIA Leading manufacturers in the sector called on AMPO’s commissioned AMPO FOUNDRY to make a significant innovative casting technologies to develop their critical A leading international manufacturer of hydroelectric number of semi-finished casting components for performance components for waterjets. energy equipment called on AMPO FOUNDRY for the compressors. aftermarket manufacture of machined components in Components that were traditionally designed to be made The development and production of the components for stainless steel for hydro turbines which will be installed using sand casting processes or welded construction, compressors came about on this occasion using ceramic in the La Guaca and Paraíso power plants in Colombia. have been replaced by ceramic moulding and SCC moulding technology, through which large casting (Shaped Centrifugal Castings) processes, to achieve AMPO supplied approximately 20 aftermarket casting components or with complex shapes can be made. shorter delivery times and better surface finishes. components for hydroelectric energy equipment, such as: The components for compressors were made to measure caps, covers, rings and brake shields for the servo motor. Impellers, housings and diffusers, along with other in accordance with the American Client’s requirements. They are all machined and made of CA6NM steel. components for the marine sector, were designed and Apart from this, it is worth pointing out that the American manufactured using these processes to be able to benefit In this case, AMPO FOUNDRY used its cutting-edge sand compressor manufacturer felt that service was key in this from major improvements in cost and quality, including: casting facilities to manufacture large batches and, also project, and by using AMPO’s patternless technology, reduction in weight, rapid prototyping, patternless its new automatic ceramic moulding installations for single both the supplier and the Client were able to meet their moulding, improvements in the components’ integrity and batches. For short series, patternless technology was also commitments as regards delivery times, which up until better surface finishes. used. This system enables AMPO to produce the ceramic recently had been unthinkable. shells in just one day. Different vessels, including coastguard boats, passenger DISTRICT HEATING VALVE CASTINGS ferries and service vessels for wind farms will, from now on, be driven by AMPO components. A leading international manufacturer of district heating valves for the entire heating network (from district heating power plants to pumping stations and buildings) entrusted AMPO FOUNDRY with the manufacture of large (>DN1000) pre-machined components in stainless steel.

The weight of the components in this project ranged from 600 kg to 1.2 tonnes.

MAIN MILESTONES OF 2017 · Customers and projects 53 To do so, we are finishing the construction of a 12,500 Apart from these new machining centres, new cladding INVESTMENTS m2 plant adjacent to the current facilities, which will be technology will be installed here. To be more specific, equipped with new smart machining centres, such as: a highly automated vertical machine that will carry out interior weld overlays. This will help us to continue offering BOST VERTICAL LATHES: This lathe has a flexible all types of coatings on any kind of material within a manufacturing system (10 pallets) and the following shorter response time, and using special materials. EXECUTION OF THE CONSTRUCTION features: one of the two vertical lathes has a C axis, the WORKS ON THE NEW MACHINING maximum lathe diameter is 2500 mm, it has over 520 Along with this equipment, our premises also have other PLANT IN IDIAZABAL tools, and a real optimised SMD, etc. machining centres, lathes, grinders, saws, to name but a few, and all kinds of installations for carrying out non- Progress was made in 2017 in the works on the new MCM 5-AXIS MACHINING CENTRE: This machine has destructive testing, e.g.: X-ray, dye penetrant, magnetic machining plant in Idiazabal. The main objective of this a flexible manufacturing system (24 pallets) and the particle, PMI, picling, 3D control, etc. new plant will be to supply our Clients with higher added following features: the maximum lathe diameter is 1400 value components, a superior machining capability and a mm, it has over 650 tools, and a real optimised SMD, etc. better service.

54 MAIN MILESTONES OF 2017 · Investments In addition, we should highlight the fact that the construction building includes site improvement measures, water INTRODUCTION OF THE LEAN of the new plant is being carried out in line with thorough saving, energy saving, more sustainable materials and MANUFACTURING CULTURE environmental criteria and with the goal of obtaining resources, and a better quality indoor environment. Our service philosophy at AMPO goes above and beyond LEED (Leadership in Energy and Environmental Design) the design, manufacture and maintenance of our solutions. certification, which accredits sustainable buildings. The This is why, in 2017, we took significant steps forward in our LEAN transformation project.

One of the main objectives of this project is to reduce delivery times for our Customers, and to do so we continue to work hand in hand with specialists in advanced management models.

Within the framework of this project, we have several lines of work in operation, such as:

• Valve division layout design

• New machining plant layout design

• Continuous improvement dynamics in several production lines

• Etc.

MAIN MILESTONES OF 2017 · Investments 55 2017-2020 STRATEGIC PLAN • Vision of the sector’s future: Juan Andrés Díez de • Innovation management: Pedro Alberto Gómez, partner Ulzurrun, General Manager of Engineering at ENAGAS. and expert in innovation at PwC. In 2017, AMPO designed its Strategic Plan for the years 2017-2020, in which a large team of People from AMPO • Energy and Industry 4.0: Andrea Dolfi, Italy & Iberia and • Current challenges in the valves and actuators industry: took part, and with the collaboration of experts from Balkans Digital Sales Manager, GENERAL ELECTRIC OIL Peter France, CEO of ROTORK. & GAS. PwC. To define and design this Plan, the Cooperative also • New business environments: Adolfo Ramírez, General organised a range of presentations that were open to • Vision of the sector’s future: Grant Wood, Managing Manager of Technology at Santander Spain. everyone at AMPO, and which dealt with different topical Director at ROTORK CONTROLS. subjects. Below are just some of the presentation titles, along with a list of speakers:

• Industry 4.0 and Digital: Charles Kirby Isasi, Partner at PwC - Industry 4.0 Lead in Spain.

• 3D Printing: Charles Kirby Isasi, Partner at PwC - Industry 4.0 Lead in Spain.

• Mining sector: Robert Novotny, Partner at PwC.

• Oil & gas market trends: Óscar Barrero, Head Partner of Consulting Services for the Energy & Utilities sector, PwC Spain, and Gerardo Fernández, Senior Manager at Strategy &, part of the PwC network.

• Changes and how to manage them: Guillermo Dorronsoro, Dean at the DEUSTO BUSINESS SCHOOL.

• Oil & gas sector: global vision and trends in the Supply Chain: José Luis Bernal, Executive Director Supply Chain, REPSOL.

• Strategic recommendations: Pedro Esnaola, President of the GIPUZKOA CHAMBER OF COMMERCE.

• Oil & gas sector: a challenging and uncertain environment: Ivan Marten, Senior Partner and Managing Vice Chairman Energy Practice, THE BOSTON CONSULTING GROUP.

• Strategic recommendations: Joseba Jayo, General Manager of Corporate Development, VELATIA.

56 MAIN MILESTONES OF 2017 · Investments DESIGN AND INTRODUCTION With the definition of this new cultural model we aim to to flow reductions, rapid self-dampening response to OF A NEW CULTURAL MODEL OF become an excellent organisation while increasing the noticeable flow reductions, maintenance-free due to ORGANISATION AND LEADERSHIP: feeling of belonging to AMPO. having a non-slam design and not having any soft parts, “WORKING ON CHANGE” seals or O-rings which would wear, cause misalignment or need replacing, light and compact design, silent In 2017 we took the first steps in the process to create operation, customisable design, flexibility in installation, and design a new model of organisational culture and DEVELOPMENT AND etc. leadership among People at AMPO. INNOVATION This project, entitled “Working on change” (Aldaketa DEVELOPMENT OF THE VALVE FOR lantzen), aims to create a process of organisational BUOY OFFLOADING SYSTEMS development for guaranteed progress towards VALVES CALM buoys are the main offshore loading terminals for a achievement of the cooperative objectives and towards a wide range of applications, depths and vessel sizes, both culture of excellence. DEVELOPMENT OF THE AXIAL CHECK for small operators and for large crude carriers (VLCC). This process is being developed through teamwork. VALVE These buoys are the most relevant, due to the ease with which the vessels can berth and load, as well as for safety A first diagnosis of the situation was therefore made and For the first time, in 2017, AMPO POYAM VALVES reasons. the foundations of the new cultural model established. designed and manufactured highly reliable axial check This was followed by the introduction of action-related valves. These valves are mainly used to protect rotary AMPO POYAM VALVES has developed two types of training and skills to both the AMPO Board of Directors systems and equipment at plants. valves for buoy offloading systems. On one hand, it offers and to other indirect teams, with the participation of some “turntable” type valves, and on the other, it has “centre 80 People in this initial stage. This training enjoyed the wheel” type valves. active participation of People, enabled by processes of collaboration and motivated by a more active attitude towards learning, leadership, self-management, participation and progress.

The training took the shape of workshops and group and individual coaching sessions.

At the end of the year, around 20 direct leaders were introduced to the project and a workshop was organised The AMPO engineering team has worked hard to develop at which an agreement was reached on what was to be an ideal technological solution, enabling minimum expected of an AMPO leader. During 2018 this team pressure drop in these valves. The main advantages of will receive active training to acquire the skills assigned our product are: zero emissions, minimum pressure loss, to the figure of the leader and, subsequently, to continue stable operation that circumvents the problem of “water designing the AMPO leadership model. hammer”, dynamic behaviour, the disc reacts immediately

MAIN MILESTONES OF 2017 · Development and innovation 57 DEVELOPMENT OF THE VALVE FOR AMPO POYAM VALVES has developed a group of ball on the market. Specifically in the case of services at JACKET SYSTEMS valves for jacket systems in keeping with API standards, high temperatures, they comply with the SHELL-A level. with satisfactory results in the field. To achieve this level of sealing, the AMPO engineering Jacket valves are used to regulate the flow of sea water and innovation team researched into the valves’ gaskets, when installing the jacket systems on the sea bed. SHELL-A LEVELS OF ATMOSPHERIC studying the turn valves in cryogenics, turn and linear Consequently, when these platforms are being installed EMISSIONS IN HIGH TEMPERATURE valves at high temperatures, thermographic simulations, on the sea bed, the jacket platform is normally flooded SERVICES etc. to control the system’s balance and sway until it is finally AMPO POYAM VALVES has the capacity to adapt its locked in place. valves to the most stringent atmospheric emissions levels

58 MAIN MILESTONES OF 2017 · Development and innovation OPTIMISATION OF THE TOP ENTRY BALL REPLACE DOUBLE BLOCK AND BLEED VALVE DESIGN VALVES WITH THROUGH CONDUIT GATE VALVES AMPO POYAM VALVES has optimised the design of its Top Entry ball valves, which were first manufactured in AMPO POYAM VALVES designs and manufactures 1986. The new design increases the product’s reliability, double expanding and through conduit valves, which but it also brings significant improvements in the product’s are considered to be critical valves due to their operation competitiveness. Our Customers can benefit from this in the most severe environments, as is the case with competitive edge. AMPO POYAM VALVES is the leading marine platforms, FPSOs, refinery pipelines and tank brand in cryogenic ball valves, thanks to its experience, pipelines. These valves are mainly used for the following quality and level of Customer satisfaction. It is also worth applications: Methanol, scale inhibitors, disposal systems, pointing out that it has achieved a level of quality with low pressure preheaters, LSFO products, crude oil feed, zero leaks. ULSD products, untreated diesel, ARDS feed, ATB/LSFO products, ATK/DPK products, fuel gas (mod sour). IMPLEMENTATION OF THE HYDRO DESIGN TOOL Double Block & Bleed valves are mainly known as twin ball valves and are commonly used for these applications, In collaboration with a Research Centre, AMPO has but the engineering team at AMPO has worked hard developed a custom-made tool to quickly and accurately to develop a more reliable and competitive solution for calculate the different design parameters for its swing check this type of service, reducing the weight and the space valves; angle of the disc according to flow, minimum fluid required at the plant for this equipment, which is key on speed so that the disc reaches the highest point, pressure floating marine platforms. As a result, AMPO POYAM loss with different angles, flow coefficients for different VALVES can now offer a more reliable and competitive angles, position of the counterweight or absorber, closure solution than the twin ball valves for this type of severe times, closure speed, force in the absorber, etc. This tool is application: Double expanding and through conduit gate based on different fluid-dynamic analyses, from which we valves. have extracted the analytical formulas that have made it Our extensive knowledge in valve engineering has made it possible to achieve the results smoothly. possible to develop the most innovative double expanding and through conduit gate valve on the market, the main advantages of which are as follows: bidirectionality, double block and bleed (DBB), double insulation bleed (DIB-1), special AMPO seats for positive sealing, external pressure relief, expanding gate with tungsten carbide- coated metal seats, and a distinctive key aspect.

MAIN MILESTONES OF 2017 · Development and innovation 59 FOUNDRY to AMPO with the objective of bringing greater added DEVELOPMENT OF ALUMINIUM BRONZE value to the foundry Customers. CASTINGS COLLABORATION AGREEMENT This agreement will help AMPO to continue offering its WITH CTI (CASTINGS TECHNOLOGY Throughout 2017 the AMPO Foundry engineering Customers the most innovative and reliable solutions on the INTERNATIONAL) team worked, in collaboration with CTI, on a project to market. In conjunction with CTI, it is also developing lines manufacture aluminium bronze castings. AMPO and CTI (Castings Technology International) signed of improvement and research into ceramic moulding, SCC, The objective of this, for AMPO, is to increase its range of a collaboration agreement whereby the technology firm high alloy steels, patternless technology, the production of materials and gradually add aluminium bronze to its list. will provide consulting and operational advisory services aluminium bronze castings, etc,

PARTICIPATION IN THE GALDA 4.0 CONSORTIUM

AMPO FOUNDRY has taken an active part in the Galda 4.0 consortium, the objective of which is to achieve sand moulds that are machined by a robot. This would mean that there would be no need to use wooden moulds and the sand moulds could be manufactured directly from 3D plans sent by the Customers.

60 MAIN MILESTONES OF 2017 · Development and innovation The inauguration commenced at 4:00 p.m. with a will be able to produce valves of up to 72” at its factory traditional reception, followed by a tour of the factory in India, which is an exact copy of the Idiazabal plant. EVENTS facilities. In attendance at this event were: the Deputy They have the most advanced equipment available, with for Economic Development, Rural Environment and cranes of up to 50 tonnes, test bench for valve testing of Territorial Balance, Ainhoa Aizpuru; Alexander Arriola, up to 2500 lbs, etc. In total, the plant covers an area of INAUGURATION OF THE NEW AMPO Director of SPRI; Antton Tomasena, Director of Economic approximately 15,000 square metres and has facilities for INDIA PLANT Development at the Gipuzkoa Provincial Council; Miren valve assembly, test benches, painting, shipping, offices, Madinabeitia, Director of Internationalisation at SPRI; etc. The cooperative arrived in India in 2009, with the On 6th June in Coimbatore (Tamil Nadu, India), Hemant Agarwal, Director of SPRI INDIA; and Amaia aim of fulfilling its Cients’ demands and requirements, AMPO held the opening ceremony of its new plant for Ferro, Director of Internationalisation at the Gipuzkoa and to offer them the best alternative on the market. They manufacturing valves in India, and representatives from Chamber of Commerce. began with a workforce of just 20 People and today the Gipuzkoa Provincial Council, the Basque Government there are approximately 240 People working there. The and the Chamber of Commerce were present at the After the institutional ceremony, on 7th June they construction of this new plant was completed in April, inauguration. The design, construction and start-up of presented their new facilities (which are 100% owned which meant production could then commence in these these facilities have entailed an investment of 13 million by the Cooperative) to 20 global Customers, including new facilities. euros, and will enable AMPO to increase the production SHELL, RELIANCE, INDIAN OIL CORPORATION, TECNICAS capacity of this subsidiary. REUNIDAS, FLUOR, TECHNIP, etc. From now on, AMPO

MAIN MILESTONES OF 2017 · Events 61 VALVE WORLD AMERICAS EXHIBITION in the industry, and that is why we decided to continue already patented. And on the other, we took a valve with our participation in this trade fair for the third consecutive high technological value. Hundreds of Customers visited From 20th to 21st June, AMPO participated in the Valve year. We took a representative sample of our casting the stand, and we had the chance to discuss current and World Americas Expo & Conference in Houston (USA) products and valves with us. On one hand, we took casting future projects with them. with a stand (915) located in the George R. Brown components in M-35.1 and CY-40 material that had been PARTICIPATION IN THE API Convention Center. This is one of the most specific events produced using our new SCC process, which we have CONVENTIONS

In 2017, AMPO took part in the two spring and autumn conventions organised by the API (American Petroleum Institute) and held in the USA. The objective of these meetings is usually to develop the API standards, as well as promoting networking and open debates on topics of interest in the oil & gas industry.

Representatives of the companies that make products or equipment related to the oil & gas sector attend these conventions, as well as EPC firms and end clients.

They usually divide us equipment manufacturers into the following working groups to discuss API standards: heat transfer equipment, mechanical equipment, valves and pipelines, refining equipment, storage tanks on the ground, materials and corrosion, electrical equipment, mechanical integrity and inspection, and instrumentation and control systems. AMPO usually takes part in the “Valves and Pipelines” group.

Consequently, it is worth highlighting that AMPO plays an active role in the preparation of API standards, and easily applies them in the development of its valves.

62 MAIN MILESTONES OF 2017 · Events ATTENDANCE AT THE VALVE any unexpected shutdowns, with the cost-saving that this thermal generation installations, engineering firms and MANUFACTURER SYMPOSIUM entails. consultants, and in general, all technical staff related to energy and the environment. ORGANISED BY SAUDI ARAMCO We also had the opportunity to take an active part in a On 1st and 2nd November, AMPO POYAM VALVES took debate on ARAMCO’s current specifications, contributing Leire Colomo, Innovation & Technology Development part in the valve manufacturer symposium organised by our point of view and sharing our experience with the Director at AMPO POYAM VALVES, was invited to ARAMCO and held in The Hague, the Netherlands. The purpose of improving existing specifications. participate as a speaker at this seminar, in which she spoke about the technological system of LNG equipment main objective of this forum, organised by ARAMCO, ARAMCO kindly acknowledged our work with a letter of and the challenges facing their adaptation to LH2. was to share and exchange information between the appreciation. major valve manufacturers worldwide. The integration of liquefaction and regasification processes AMPO POYAM VALVES is currently one of the main SPEAKERS AT THE HYDROGEN AND in natural gas and hydrogen production, based on energy manufacturers of high-tech valves, and due to our INDUSTRY SEMINAR storage, results in the energy mix being more and more extensive experience working with ARAMCO on different A seminar was held on 16th February in Bilbao (Spain) sustainable. Applying the associated technologies makes projects and applications, we were invited to this event to on the technological opportunities in the liquefaction and the system of industrial use feasible, and facilitates present our newest solutions, such as the valve condition regasification of natural gas and hydrogen. The event was a significant reduction in greenhouse gas emissions monitoring system. This technology enables our Customers sponsored by SENER and organised by SuPrEn. it was and the elimination of sources of contamination, which to go from reactive/preventive maintenance to predictive held in the conference hall of the COIIB and was aimed consequently has a beneficial effect on the population’s maintenance, offering the chance to detect any potential at industrial firms that use natural gas and hydrogen in health and on the environment. errors that may arise in the future in the valves installed at their manufacturing processes, companies that distribute the plant in question, thereby making it possible to prevent industrial gases, companies that manage electrical and

MAIN MILESTONES OF 2017 · Events 63 DELEGATE CONVENTIONS

AMPO currently has an extensive network of delegates and representatives around the world, with presence in over 60 countries worldwide.

In order to analyse the current year, and mainly to design the commercial strategy for the following year, in November we held the annual delegates conventions in Idiazabal.

At these events, we shared the latest organisational and technical advances that have taken place at AMPO, as well as the most recent developments in solutions and technologies. In addition, the AMPO’s New Strategic Plan for 2017-2020 was outlined, sharing information with the delegates about future projects, etc. They also had the chance to see the new machining facility in person, where AMPO has installed its smart machining centres.

CELEBRATION OF THE AMPO RETIREES’ DAY

With the aim of keeping the bond alive between the current members and the retired members, the Cooperative celebrated the AMPO retirees’ day on 5th October. In total, 93 pensioners came together for this celebration. experiencing, and of the main milestones of 2017 The pensioners were then offered a tour of the new The pensioners arrived at AMPO first thing in the morning, (including the opening of the new plant in India, the new machining facility and the new Ceramic Moulding and the President, Jon Gorrotxategi, and the Managing machining facility in Idiazabal, the LEAN Project, etc.), as premises. Director, Pablo Mendizabal, informed them of the well as a presentation of the subjects AMPO was handling And to end the day, the 93 pensioners were treated to Cooperative’s current situation. Among other things, they with a view to the future. At the end of the presentation, lunch at the Mujika restaurant in Lierni, along with a were told of the difficult situation the sector was currently there was a short show by the comedian Angel Alkain. significant number of representatives from AMPO.

64 MAIN MILESTONES OF 2017 · Events ANNUAL GENERAL ASSEMBLIES

On 19th May, the Annual General Meeting was held in Idiazabal, at which the annual accounts were submitted and approved.

On 22nd December an Extraordinary General Meeting was also held. At this meeting, the Management Plan (known in the Cooperative as “Ideas and Objectives”) for 2018 was presented. Both meetings ended with a celebratory lunch for all AMPO personnel.

to digitise all the areas of AMPO’s value chain in a AMPO ON THE “TEKNOPOLIS” OTHER NEWS distinctive and competitive way that is clearly aligned with PROGRAMME ON ETB the business objectives. In January, the TV programme “Teknopolis” on ETB To do so, they plan to implement technologies for digital (Basque Country autonomous TV channel) broadcast DIGITAL TRANSFORMATION PLAN Customer access and order management, Sourcing 4.0 a story on AMPO, in which they talked about the high technologies, smart factory and integrated planning reliability valves that we have developed for the mining In 2017, AMPO designed a digital transformation plan concepts, logistics based on data, and inventory sector and the condition monitoring device that we are for the period 2018-2022. The aim of this plan will be management in real time, digital services and service working on. management, etc. Teknopolis is a television programme that focuses on science and technology for the general public in the Basque Country, informing about news related to different fields and the advances being made both in the Basque Country and elsewhere.

AMPO ON THE TV PROGRAMME “CONNECT WITH THE MARKET” ON RTVE 2

In March, AMPO participated in the TV programme “Connect with the Market” on RTVE La2 (Spanish national television channel 2), in which they talked about the process of introducing AMPO in India.

MAIN MILESTONES OF 2017 · Other news 65

AMPO HEADQUARTERS · 20213 IDIAZABAL · GIPUZKOA-SPAIN www.ampo.com · [email protected]