New Zealand Heavy Engineering Research Association

NEW ZEALAND HEAVY ENGINEERING RESEARCH ASSOCIATION

About HERA HERA is the Research Association for the New Zealand metals engineering industry. Established in 1979 under the Heavy Engineering Research Levy Act as a member-based, not-for-profit Research Association, HERA today serves 600-plus industry members as their leading resource support centre.

HERA PURPOSE - Service heavy engineering sector interest - Facilitate access to markets - Provide Research & Development, technical training, advice and support - Provide a respected voice for the aspirations and concerns of members - Lead the movement towards a sustainable and internationally competitive industry

HERA Executive 2013/2014:

From left: Dr Troy Coyle (inset), Terry Duff, Mike Lehan, Bernard Hill, Alistair Fussell, Dr Wolfgang Scholz, David Moore, Peter Hutton, Noel Davies, Paul Bryant, John Frear, Sean Gledhill (inset), Prof Thomas Neitzert, Simon Ward (inset) Name Company Affiliation Membership Representation John Frear (Chairman) Best Bars Limited Ordinary & Associate Members Mike Lehan (Deputy Chairman) Page Macrae Engineering Ordinary & Associate Members Peter Hutton (Past Chairman) Fitzroy Engineering Group Ordinary & Associate Members Paul Bryant Steel & Tube Holdings Ordinary & Associate Members David Moore Grayson Engineering Ordinary & Associate Members Prof Thomas Neitzert Auckland University of Technology Ordinary & Associate Members Bernard Hill Hawkins Infrastructure Ordinary & Associate Members Terry Duff Southern Cross Engineering Ordinary & Associate Members Sean Gledhill AURECON Ordinary & Associate Members Noel Davies Hydraulink Fluid Connectors Heavy Engineering Educational & Research Foundation (HEERF) Dr Wolfgang Scholz HERA Director Dr Troy Coyle NZ Steel Representing the President NZ Steel Alistair Fussell Steel Construction New Zealand Co-opted representing SCNZ Simon Ward A-Ward Attachments NZ Manufacturing & Exporters Association (NZMEA)

About the Cover - Quality, Value, and Certainty through Innovation This year the New Zealand’s heavy engineering industry has made major progress on its sector wide promise to deliver quality, certainty and value through innovation. In co-operation with Steel Construction New Zealand, HERA put in place the Steel Fabricator Certification scheme aimed at demonstrating that certified companies produce consistent quality in line with New Zealand and international best practice standards, deliver value through ongoing innovation and certainty by being independently certified as meeting the claimed requirements.

1 Annual Report 2014 CONTENTS

HERA STRATEGIC FOCUS Page 2

JOINT MESSAGE FROM HERA CHAIRMAN & DIRECTOR Page 3

GROWTH & INNOVATION Page 5

RESEARCH & DEVELOPMENT Page 8

BUSINESS MODEL Page 10

TRAINING & EDUCATION Page 11

LEADERSHIP Page 13

METALS NZ CEO MESSAGE Page 15

HERA FINANCIAL STATEMENTS Page 16

HEAVY ENGINEERING EDUCATIONAL & RESEARCH FOUNDATION REPORT Page 18

HERA MEMBERS Page 19

HERA DIVISIONS & STAFF 2014 Page 22

HERA STRATEGIC FOCUS:

INDUSTRY VISION HERA MISSION To have New Zealand’s Metals Engineer- HERA to be the catalyst for research, ing Industry achieve world-class standards innovation, growth and development in for proﬁ tability, quality and sustainability New Zealand’s Metals Engineering Industry

The HERA Strategy has the five focus areas as identified in the diagram. The strategies developed and followed by HERA staff for each of the focus areas remained unchanged with key strategies such as :

• Maintain industry input in research road maps in each of the research focused HERA divisions Structural Systems, New Zealand Welding Centre and Industry Development • Develop NZ industry ‘competitive advantage’ • Use HERA Roadmap Process to develop Clean Energy business opportunities • Drive and support “Securing the Future of NZ Metals Engineering Industry” programme • Better use of technology to improve delivery of key messages and communications, e.g. improve online presence of HERA and metals industry • Use Standards as a means of innovation and through harmonisation to access to new markets • Develop and implement programmes to enhance productivity in key areas of metals fabrication such as welding and construction • Grow business opportunities through Certification • Product development work that embraces international best practice to facilitate export opportunities

Annual Report 2014 2 JOINT MESSAGE FROM HERA CHAIRMAN AND DIRECTOR

Industry Activity – Steel Con- over 4%. Considering this against implementation of the Steel Fab- struction Rock Star Performance the prevailing high exchange rate, ricator Certification scheme. Heavy steel usage in New Zealand this is a pleasing result but we are rose by 10% compared to last year, still well behind previous peaks. In a joint effort between HERA’s NZ bringing the total consumption to Welding Centre, SCNZ and lead- over 145,000 tonnes. The major As an industry sector, we need to ing construction industry members, growth was in sections with over 21% continue to advocate for more to be the industry-governed Authorised growth being indicative of the buoy- done by Government to support our National Body for Company Certi- ant building and construction market. high-value industry transformation fication (ANBCC) to IIW/ISO 3834 towards increased export contribu- has been put in place. All condi- However as the graph shows this tions. Imports were dominated by tions of the international scheme is still 12% short of the pre-2009/10 the high-value ship category and have been met and following an Global Financial Crisis peak, in- more than doubled as we typically international audit the HERA - AN- dicating operations are still below see when driven by big ticket items. BCC received its official accredi- industry capacity especially when tation to commence operations. considering newly-built steel fab- The particularly relevant steel rication capability. The fact that structures category (7308) showed However, most significant to note plate volumes stayed static is of an annual increase of 25% in im- is the extent of the industry buy concern, indicating that the general ports. While this is within the nor- in with one company concurrent- John Frear heavy fabrication area excluding mal fluctuation for this category, ly achieving their certification in HERA Chairman construction did not see a hoped- it is justifying ongoing focus on conjunction with the HERA audit. for expansion. From industry feed- increasing our competitiveness. Another 12 companies have for- back, we also know that some mem- mally signed up to the scheme. bers had a tough business year. Steel Construction Certiﬁ - cation Scheme Operational While demonstrating consistent Metals Based Exports Grew No doubt this year’s biggest industry quality and meeting international The heavy engineering import-ex- achievement in our effort to increase requirements is one driver; the port collective showed exports in competitiveness via the consistent critical factor has to be cost-effec- our tradable items sector grew by delivery of quality products was the tiveness. It is pleasing to see that for the first company achieving certification, the cost of remedial work in the year following implementation reduced by over 75%. HERA and SCNZ’s role now is shift- ing towards ensuring large scale uptake and product user awareness of the benefits. Informing and working with the regulator, it is pleasing to note that product conformance is taken more seriously in order to ensure that all construction, and particularly imported materials, meet the New Zealand requirements.

Securing the Future of New Zealand Metals Engineering HERA’s strategic focus on securing a sustainable and high-value metals engineering industry, achieved another milestone with the appointment of Gary Hook as CEO of Metals NZ at the end of 2013. Gary is now running the “Secur- ing the Future of New Zealand Metals Engineering” programme.

Source: Statistics New Zealand / HERA Recognising public sector procurement as the key client of our industry and with the potential to be the most significant lead user in- novator for our sector, HERA, supported by the Metals NZ activities, engaged extensively in the Gov- ernment’s procurement reforms. Outcomes included submissions to the All of Government (AoG) procurement initiatives, participation in the Government Procure- ment Reform Business Refer- ence Group and ongoing high level advocacy on the issue.

Having the Five Principles of Government Procurement as approved Government policy including Get the Best Deal for Everyone, which includes the re- quirement for Balanced Decision Making, is a powerful require- ment supporting local industry participation and needs constant Note: Exports from NZ Steel and the NZ Aluminium Smelter are not included reinforcement to decision-mak- 3 Annual Report 2014 ers. HERA will continue working HEAVY ENGINEERING RESEARCH ASSOCIATION towards Metals NZ becoming government-industry co-funding self-funded and independent, from the previous Tech-NZ to the environment will no doubt re-ener- with the aim to effectively com- new Callaghan Innovation R&D gise all those working within HERA pliment HERA’s role as an R&D grant funding rules, and these is- House and our industry network. and education services provider. sues are still not fully resolved. Acknowledgement Financial Performance – Surplus However, progress made in ad- Looking back, it was a turnaround Marks Turnaround dressing the challenges has con- year for HERA; signalling regained After a long time in the planning, this firmed continuation of the pro- strength in our way forward to ensure year HERA ended up with a healthy gramme. The manufacture of at our industry’s future. The achieve- surplus of over $500k on the back least two New Zealand-manufac- ment would not be possible without of better-than-budgeted industry tured Organic Rankin Cycle pilot the incredible support of our mem- activity translating into higher-than- plants is the measurable outcome bers, including the many individuals budgeted levy income. Other fac- at the end of the next two years. who freely give time for the common tors include unspent salary com- • Welding Technology R&D good. This also applies to individu- ponents planned for new activities NZWC’s R&D focus was on the als from our partner organisations but unactivated due to difficulty in AGGAT programme with contribu- and key stakeholders outside the in- obtaining specialist staff required, tions to the development of the dustry, including from Government, and also better-than-budgeted self- Materials Knowledge Base, includ- its departments, and the many re- generated income. This surplus will ing a multi-sample heat exchanger search providers we interface with. now assist in paying for the com- test bed for geothermal fluids, the Dr Wolfgang Scholz prehensive HERA House refurbish- establishment of the AGGAT col- Our thanks go out to all of those Director ment, which was previously de- laboration platform and contribu- who contributed and this in- ferred due to constrained finances. tions to the Expert Design Tool. cludes HERA’s committed team of 20 plus staff, visiting schol- R&D Outcomes Other research supported the ars and associated contributors. • Steel Construction Research adoption of the IIW/Eurocode 3 fa- The main thrust of HERA’s steel tigue design provision in the AS/NZ 2013/14 HERA SUCCESS STORIES construction research was on the 5100.6 bridge standard and seismic Industry Advocacy improvement of steel construction damage accumulation research in - Metals NZ CEO Gary Hook established & running standards and design guidelines. the contexts of driving low-dam- “Securing the Future of New Zealand Metals Engineer- age steel structures’ development. ing” programme Primary outcomes were the publi- - Responded to many calls for submissions & dealt directly cation of the Steel and Composite A commercial project for MBIE de- with Ministers & reference groups on industry issues Bridge Design Standard AS/NZS livered a forensic guide for the as- - Held business opportunities & industry issues meetings in 5100.6, significant progress with sessment of damaged steel struc- co-operation with Metals NZ joint Australian and New Zealand tures, which was also published as a Steel-concrete Composite Design HERA Report. The continuation with Heavy Engineering Industry Development Standard for buildings AS/NZS Konstanz University in Germany of - Second year of AGGAT programme science base in co- 2327, development of AS/NZS Fab- the long-term corrosion research operation with universities of Canterbury & Auckland rication and Erection Draft Stand- programme of welded lower-cost al- - Comprehensive AGGAT Research Roadmap completed & ard as a joint project with SCNZ ternative stainless steel grades deliv- published, & joint NZGA/HERA AGGAT Workshop held and the Australian Steel Institute ered two further international papers. - Completion of business case for New Zealand Marine (ASI), launch of HERA Publication Energy Centre & submission to Government P4001:2013 Seismic Design of Ec- Outlook - Web-based multi-capability company register operational centrically Braced Frames in con- The steel construction sector no doubt & NZ Geothermal Capability Register updated & re-issued junction with a seminar series, and looks forward to growth in the year - Extensive industry support, networking & advocacy pro- development of new provisions for ahead with steel being seen as the gramme maintained composite slabs using high strength leading material for use in multi-sto- steel, including recommendations rey construction. The sector with its Structural Systems for the revisions of Eurocode 4. increased capacity is well-prepared - HERA Design Guide on Eccentrically Braced Frames to meet the expected demand, and launched Several commercial research with the emphasis on product con- - Launch of Australasian Environmental Product Declara- projects were also performed formance and cost-competiveness, tion Programme funded through Sustainable Steel Council for industry members oper- should exceed client expectations. - Composite Bridge Design Guide published by NZTA ating in overseas markets. - Completed new fabrication and erection code of practice • General Heavy Engineering HERA expects steel volumes for the through a joint initiative with SCNZ and ASI About half of HERA’s members coming year to at least match this - HERA finite element simulations and major UK loaded fire operate in the diverse heavy and year’s figures, so core levy funding is test provide cost savings of $180k to 40-storey building metals engineering industry sec- budgeted accordingly. This optimism, - Board of Directors level input to Australasian Certification tors. Following prior years’ prior- however, is not shared in the general Authority for Reinforcing & Structural Steels ity-setting work, the R&D focus metals engineering sector and predic- on renewable energy continued. tions for growth particularly in export NZ Welding Centre are for a relatively small expansion. - Established certification body - HERA ANBCC, IIW ANB The establishment of a New Zealand for Company Certification to IIW MCS ISO 3834 Marine Energy Centre came a big In addition to the ongoing activities - Developed Steel Fabricator Certification scheme step closer to potential realisation to improve the competitive position - Record attendance of seminars & courses - 260+ with a detailed business case devel- of our industry, HERA’s R&D focus attendees - with 86 of them at Welding Supervisor & oped in co-operation between HERA, in Structural Systems is for the de- Welding Inspector courses AWATEA and the European Marine velopment of a steel construction - HERA ANB has issued 23 AS2214 Welding Supervisor Energy Centre in Orkney, Scotland innovation research partnership certificates & for the first time 22 diplomas for the Interna- and was delivered to Government proposal. For the Industry Develop- tional Welding Inspector qualifications IWI-B and IWI-S for funding support consideration. ment division, it is the execution of - Research project “Performance Evaluation of Alternative the market development elements Stainless Steel Grades” completed The Government co-funded Above of the AGGAT programme. And for Ground Geothermal and Allied the NZWC, it is its contribution to I & QC Centre Technologies (AGGAT) programme the AGGAT materials research aim. - Maintained training and advisory programme with part- entered its second year. The pro- time commitment of former Manager Peter Hayward gramme has been rather chal- There is of course the positive lenging in managing the academic prospect of moving back into a HERA Information Centre (HIC) interface, and also in gaining the fully-refurbished HERA House - In line with HERA House refurbishment, implemented required industry contributions. towards the end of 2014. After move towards digital HERA Library years of delayed HERA House - Supported Metals NZ, and AGGAT, HERA Verified and IIW The industry contribution challenge maintenance, being able to work ANB & SFC programmes was largely due to the changes in in a refreshed and contemporary Annual Report 2014 4 FOCUS: GROWTH & INNOVATION

As stated in its Mission, HERA is to be tors on the joint AS/NZ Welding Stand- the catalyst for research, innovation, ards Committee WD-003 Welding, WD- HERA ANBCC Report 2014 growth and development in New Zea- 002 Welding Consumables and ME-001 land’s metals engineering industry. The Pressure Equipment making a significant To provide New Zealand fabricators close interaction between industry mem- contribution to the update and devel- with the world-class certification system bers and HERA staff, and the fact that opment of relevant welding standards. to ISO 3834 ‘Management of Quality industry governs HERA and charges it in Welded Structures’, HERA has es- with the execution of its strat- tablished the certification arm HERA egy, assists HERA in pro- ANBCC - the International Institute of viding industry leadership. Welding (IIW) Authorised National Body for Companies Certification (ANBCC) for Steel Fabrication Certiﬁ ca- New Zealand to the IIW MCS ISO 3834. tion Scheme Up and R u nning

To maintain a competitive edge and to ensure safety and reliability of steel structures in New Zealand, SCNZ and HERA have developed a quality compliance IIW and HERA ANBCC assessment team at D&H Steel Construction Ltd (Left to right: Dean Pouwhare, Prof. Boyoung Lee, Alan Mc- scheme referred to as Steel Fabricator Cer- Clintock, David Gulland, Heath Johnston, Peter Hayward, Christian tification (SFC) scheme. Following inter- Ahrens, Cameron Rogers) national best practice, the SFC takes into account a risk-based approach introducing Standards Development Drives Innova- four Construction Categories for steel struction tures covering a wide range of applications. A key driver of metals industry innovation is advancement of adopted indus- The introduction of ISO 3834 – Qual- try standards and HERA plays a key ity Requirements for Fusion Welding is role in this. Being research focused, the key certification plank of the SFC well-connected to industry and research All activities of the HERA ANBCC are controlled by an independent Governing Board that includes representation from NZ fabrication industry and other interested parties. ISO 3834 as the core of the Steel Fabri- cator Certification (SFC) scheme reflects the significance of the quality of welded connections for the safety and reliability of steel structures. Welding is recognised as a so-called “special” process, which means, different to standard manufacturing processes such as machining, compliance verification of the welded joint is not possible without destroying it.

Therefore a procedural approach is taken which ensures welding processes are controlled from the very start and the welding quality management system ISO 3834 does cater for this. Staff competency is the key element of ISO 3834. For all tasks assigned staff has to be able to demonstrate adequate Building Maintenance Unit (BMU) designed by HERA member ETS Engineers designed and installed on Rankine Brown Building of Victoria technical knowledge. The exceptional at- University, Wellington. The BMU travels around corners with “swing arms” and pivoting bogies. tendance numbers for the HERA Weld- scheme and reflects the structural sig- providers and being internationally linked ing Supervisor and Inspector courses nificance of the quality of welded con- benefits this development and allows New in 2013/14 indicates that the training nections, as for example required during Zealand to make contributions particu- aspect is taken seriously by the industry. inelastic demand in major seismic events. larly in steel construction well-above what is expected from the size of its industry. A number of HERA and SCNZ mem- And to provide our industry with the in- ber companies have already commit- ternationally recognised certification, • Steel and Composite Bridge Activities ted to ISO 3834 with one being al- HERA applied to the International In- Through support from the New Zealand ready over the finish line. Confirmed stitute of Welding (IIW) to become the Transport Agency (NZTA) and the steel commitments by more industry mem- IIW-Authorised National Body for Com- industry, HERA developed a new de- bers will see many more companies pany Certification (HERA ANBCC) to sign guide on steel-concrete composite achieve certification in the coming year. IIW MCS ISO 3834 for New Zealand. bridges in collaboration with the UK Steel Construction Institute (SCI) and AECOM. Dr Wolfgang Scholz The HERA ANBCC in April 2014 has suc- Chairman HERA ANBCC cessfully passed the IIW audit conducted Published by NZTA as Research Report by auditors Mr Christian Ahrens of Germa- 525, the publication has been written in AS/NZS 5100.6 Committee, Dr Stephen ny and Prof. Boyoung Lee of Korea. The in- accordance with AS 5100.6 and compli- Hicks has been participating on the Steer- ternational auditors also witnessed the as- ments the 3rd edition of the NZTA Bridge ing Group for an NZTA research project sessment to the requirements of IIW MCS manual. To ensure that the contents are un- that was undertaken by Beca on es- ISO 3834 of D&H Steel Construction Ltd derstood, and can easily be translated into tablishing the appropriate fatigue load- by the HERA ANBCC assessment team. current design practice, the guide is ac- ing for road bridges in New Zealand. companied by three fully worked examples. The NZWC represents NZ welding fabrica- Published as NZTA Research Report 547, 5 Annual Report 2014 Through his position as Chair on the to provide greater international alignment, FOCUS: GROWTH & INNOVATION the recommendations are based on New Zealand on AS/NZS 2327 with Dr AS 5100.2 with modifications de- Stephen Hicks chairing the working group for rived from weigh-in-motion data col- composite slabs, as well as contributing to the Geothermal and Allied Technology (AGGAT) lected from around New Zealand. provisions on composite beams, composite programme which brings research capability columns and system design for serviceability. from a variety of sources to underpin the ef- Dr Stephen Hicks and Dr Michail forts of individual companies and is support- Karpenko have been developing new Kevin Cowie of SCNZ is responsible for draft- ed by co-funding from the Ministry for Busi- fatigue provisions for Section 13 of AS/ ing the provisions for seismic design, whilst ness Innovation and Employment (MBIE). NZS 5100.6, in close co-operation with Associate Prof. Charles Clifton of the Uni- the world authority on fatigue design versity of Auckland and Dr Tony Abu of the • Collaborations Driving Innovation Prof. Adolf Hobbacher, Germany togeth- University of Canterbury are drafting the Collaborations have been a defin- er with Dr. Fidelis Mashiri in Australia. design rules for fire resistance, which will in- ing characteristic of the past year clude the Slab Panel Method – a world-first and crucial to driving innovation. The new fatigue provisions eliminate the in international design standards on fire re- Following an approach to HERA by Aus- existing tedious calculation procedure of sistance. It is expected that the standard will tralian company Smith Innovation Tech- damage accumulation by the use of dam- be published for public comment in 2015. nology and Science, and a subsequent age equivalent factors λ, which relate meeting between them and HERA mem- the stresses from real traffic to the ide- • Joint AS/NZS Fabrication and Erection ber BOP Gearcutters, agreement was alised code-defined fatigue load model. Standard entered into further development of a As a joint HERA, SCNZ and ASI project, the rotary positive displacement expander As the λ-factors given internationally draft fabrication and erection standard has with potential application in products de- have been developed based on fatigue been completed and is now in the hands veloped through the AGGAT programme. load models used in Europe, HERA has of Standards Australia for final formatting. developed Australasian λ-factors by cali- The new standard has been given the des- brating the existing loading standard AS ignation AS/NZS 5131 and has taken in- 5100.2 with the proposed AS/NZS 5100.6. spiration from international standards EN In addition, it is proposed to introduce re- 1090 and ISO 10721. The new standard liability differentiation for fatigue design, will provide a direct link with the Impor- where different safety factors are used in tance Classes given in AS/NZS 1170 and design depending on whether the struc- will identify requirements for minimum levels ture is regularly inspected or not (known of fabrication and erection quality together as the ‘damage tolerant method’ and with minimum competencies for welding ‘safe life method’, respectively). Work personnel. It is expected that the draft for on AS/NZS 5100.6 has now been com- public comment will be published in 2015. pleted and the draft for public comment is awaited from Standards Australia. HERA Industry Development Roadmap Process Starts with the Market • Steel and Composite Building Activi- The general heavy engineering industry From left: Bill Ross of BOP Gearcutters, and Errol and Ken Smith of ties development activities are based around SITAS Australia Work has been progressing well with the the HERA Industry Development Roadmap A collaboration with Konstanz Univer- development of the joint Australian and New Process that links market opportunities to sity in Germany on the development of Zealand steel-concrete composite design companies and to the research required a memory metal (Nitonol) engine saw standard for buildings AS/NZS 2327 (which to support the development of products, German student Mark Muller spend six will replace the existing NZS 3404 Section and to provide a pathway to market. This months at HERA undertaking research 13). There has been significant input from articulates with the HERA, Above Ground which has now developed into a collaboration including the University of Waikato. HERA Senior Research Engineer Dr Boaz Habib attended the Organic Rankine Cy- cle (ORC) Conference in Rotterdam, and visited turbine developer and AGGAT col- laborator Green Turbine. He also visited a number of ORC competitors and met with UK company Zero Emissions to discuss future collaborations on turbine development as part of the AGGAT programme. HERA member company PFS Engineer- ing in Hamilton has joined the AGGAT programme and is moving forward with the testing of their boundary layer turbine in an ORC setting. AGGAT member Advance Waitaki Replacement bridge - HERA member Eastbridge supplied 92m and 206m bridges for the upgrade project in the south island. These bridges Boiler Services, working with HERA’s indus- are weathering steel ladder deck designs and Eastbridge is assisting with the site erection try Development division has submitted an application for Callaghan Innovation funding support for the development of a gas engine ORC plant to be trialled at the En- rvirowaste landfill site at Hampton Downs. AGGAT researchers progressed during the year with the design of a materials test rig to be located at Contact Energy’s Wairakei geothermal resource in Taupo. This will allow multi-material comparative and discreet testing on live geothermal fluid, and contribute useful data to the geothermal materials database component of the AGGAT programme. A series of AGGAT Executive Briefings were conducted around the country by In- dustry Development General Manager Nick Inskip and Dr Boaz Habib which resulted in expressions of interest from thirty-two more companies in the AGGAT programme.

HERA member Downer Group installed many of the components used in client Contact Energy’s Te Mihi geothermal power station Annual Report 2014 6 FOCUS: GROWTH & INNOVATION

The NZ delegation shown above that attended consisted of Dr. Jung HyungChul (left, University of Canterbury), Tony Gray (middle, Geothermal Energy Solutions) and Dr. Boaz Habib (right, HERA). Promoting Industry Capability Work continued on updat- ing the func- tionality of Bioreactor by HERA member PFS Engineering for Contact Energy. This is a plant focused on removing H2S from the water discharged from the industry Wairakei PowerStation before it goes into the Waikato river member capa- Below: Bird’s eye view of a geothermal plant taken by a Un-piloted Airborne Vehicle (UAV) mounted camera operated by HERA member bilities regis- Linetech Consulting. The unit operates in a “no go” area from a people safety perspective - it avoided the risks of climbing, and was quick and ter displayed cost-effective. (Inset The UAV unit itself) on the HERA web site. The NZ Geother- mal Capability Register that showcases the capabilities on NZ companies has been fully reviewed and updated and is now available as HERA Re- port R5-35:2014 as a hard copy, and as a PDF and a searchable directory on the HERA and AGGAT web sites. Tariff concession application monitor- ing of products imports wishing to be exempt from import duty continue to be performed on behalf of industry members. The increased opening of our border due to free trade agreements is reducing this engagement and the opportunity to promote local alternatives to importers is definitely reducing.

Visitors being shown around a oil recycling process module fabricated by HERA member Fitzroy Engineering Group in New Plymouth for Northern Oil Refining 7 Annual Report 2014 in the Queensland city of Gladstone. They will produce approximately 60 million litres of high quality hydrocarbon-based oils for re-blending and re-use FOCUS: RESEARCH & DEVELOPMENT

HERA R&D is closely linked to the growth was deemed to be ductile according to and innovation focus described previously international recommendations such that and advanced across all HERA divisions. plastic design principles may be used. The work has recently been published as an in- Structural Systems Research ternationally peer-reviewed paper within the • Research Leads to Revised Seismic Proceedings of the Institution or Civil Engi- Design Guide neers, Structures and Buildings Journal. HERA, in conjunction with Steel Con- struction New Zealand (SCNZ), launched • Safety Factors for Composite Beams HERA Publication P4001:2013 Seismic and Concrete Filled Coumns Design of Eccentrically Braced Frames Although steel-concrete composite con- at a seminar series in November 2013. struction is widely used, no work has been undertaken to evaluate the ap- As well as updat- propriate safety factors that should be ing the contents of used in design when considering the the former Eccentri- geometric tolerances and the variabil- cally Braced Frame ity of material strengths required in NZS, (EBF) section of AS and AS/NZS product standards. HERA Report R4- 76, the new publi- To remedy this situation, Dr Stephen cation includes a Hicks and former HERA Structural En- fully worked exam- gineer Andrew Pennington, have been ple of an 8-storey undertaking structural reliability analyses V-braced EBF. One of the bending resistance of composite of the key innova- beams to evaluate the required capacity tions that is now factors for Australasian design. The work included in HERA P4001 are design considered data from 164 full-scale beam Improved standard push test rig for shear stud connectors provisions for removable active EBF tests that have been undertaken around the research, the work has finally been links, which were developed from finite the world, which was supplemented with published as a peer-reviewed paper by element analyses conducted by HERA. over 3 million Monte Carlo simulations. the International Association for Bridge and Structural Engineering (IABSE). The advantage of a bolted replaceable ac- In addition, from consideration of an ex- tive link is that it allows for independent tensive database of 1,583 test results From full-scale ultimate load tests on control of beam stiffness and strength, re- covering a wide range of input param- 5 m, 10 m and 11.4m span compos- sulting in more efficient structures. It also eter values, a structural reliability study ite beams it was shown that the tradi- permits speedy inspection and replace- has also been undertaken in collabora- tional small-scale push test does not ment of damaged links following a major tion with the University of Western Syd- accurately represent the performance earthquake, significantly minimising the ney and University of New South Wales. of shear connectors within a beam. disruption time to re-occupy the building. The results show that the international de- An improved standard push test was • Design Rules for Composite Slabs Us- sign provisions used in European and North developed by Stephen, and was sub- ing High Strength Steel American practice may be safely extended sequently used to develop the revisions Through research and development to higher strength steels and concretes to the UK standard BS 5950-3.1. This work undertaken by HERA on composite than currently permitted. These findings improved test is currently being consid- slabs using decks formed from AS1397 have been implemented within the forth- ered for inclusion within AS/NZS 2327. G550 steel, as well as lower strength EN coming composite bridge and buildings 10326 S350GD steel, new provisions standards AS/NZS 5100.6, together with • Walkway-stair Vibration Assessment have been developed for the forthcom- AS/NZS 2327, and are expected to be pub- HERA FE Analyst Nandor Mago and ing AS/NZS 2327; also, revisions have lished in an international journal in 2015. Dr Stephen Hicks assisted the de- been recommended for Eurocode 4. signer by verifying that the vibrations • Performance of Stud Shear Connectors occasioned by walking activities, to- The research shows that, when a deck Prior to joining HERA in 2008, Dr gether with persons ascending and manufacturer establishes the longitudinal Stephen Hicks was responsible for a descending the stairs was unlikely shear resistance of the embossments on major UK research programme that to cause adverse responses from their particular profile, the lowest values was undertaken in response to con- the occupants within a new building. are achieved on decks with the highest cerns raised by Australian researchers From a modal analysis of the struc- yield strength that will be used in practice. on the ductility of headed stud connec- ture the general methodology giv- tors welded within profiled steel decking. en in SCI Publication 354, of which Moreover, although the ductility of the Stephen is a co-author, was applied G550 steel itself is low, the longitudinal Following the recent approval to dis- and it was found that the response shear behaviour of the composite slabs seminate the findings by the funders of of the walkway-stair was acceptable.

Staircase vibration Eigenmode Half of the fire test specimen showing the temperature distribution for 2-hours of ISO 834 fire loading. Photo of the slab waiting to be positioned over the furnace. Annual Report 2014 8 FOCUS: RESEARCH & DEVELOPMENT

• Concrete Filled Tubes Without Ap- 2013/14 Structural Systems Publications: - El Sarraf R: Performance of the Weathering plied Fire Protection Steel Components of SH1 Mercer to Long- The presence of load bearing concrete - Clifton GC, Cowie K: Seismic Design of Ec- swamp Off-ramp, HERA Report R4-146, 2014 within a hollow steel column has a ben- centrically Braced Frames, HERA Publication - Mago N, Hicks S, Simms WI. Sequentially eficial effect on the fire resistance of the 4001, Jones A, Hicks S, Fussell A (eds), 2013 Coupled Thermal-stress Analysis of a New steel section. Where hollow columns - El Sarraf R, Iles D, Momtahan A, Easey D, Steel-concrete Composite Slab Under Fire. are plain concrete filled, they will usu- Hicks S. Steel-concrete Composite Bridge 2014 SIMULIA Community Conference, 19-22 ally also be fire protected in the con- Design Guide. New Zealand Transport May 2014, pp. 247-260 ventional way using externally applied Agency, NZTA Research Report 525, ISBN: - Chaudhari T, MacRae G, Bull D, Chase G, 9780478407693, 09/2013, p.252 Hobbs M, Clifton C, Hicks S. Composite Slab protection but, in most cases, signifi- - Hicks SJ, Pennington AF, Jones AS. Longi- Effects on Beam-column Sub-assemblies: Fur- cant periods of fire resistance can be tudinal Shear Resistance of Composite Slabs. ther Development. 2014 New Zealand Society obtained without the need for external Proceedings of the Institution of Civil Engi- for Earthquake Engineering Annual Technical protection if the concrete is reinforced. neers Structures & Buildings. 2014, p. 8, DOI: Conference, 2014, Auckland, http://db.nzsee. http://dx.doi.org/10.1680/stbu.13.00078 org.nz/2014/oral/6_Chaudhari.pdf Following the April 2014 amendment to - Hicks S, Smith AL. Stud Shear Connec- - Uy B, Hicks S, Kang W. The Proposed Aus- EN 1994-1-2, Annex H the design rules tors in Composite Beams that Support Slabs tralasian Composite Bridge Standard, AS/NZS for concrete filled tubes are now limited with Profiled Steel Sheeting. Structural 5100 Part 6, Steel and composite construction. Engineering International. 2014. 24(2), pp. 7th New York City Bridge Conference, 2013, to only very stocky columns where the 246-253, DOI: http://dx.doi.org/10.2749/ New York, http://www.bridgeengineer.org/2013/ capacity is less sensitive to buckling. 101686614X13830790993122 forms/Conference2013.pdf In response to this limitation. FE Ana- lyst Nandor Mago has been working closely with the Polytechnic University 2013/2014 NZWC Publications: Karpenko M: Corrosion Resistance of Lean of Valencia in Spain to calibrate FE Alloy Alternatives for 300 Series Stainless - Karpenko M, Hicks S: New Zealand Guid- Steels – Part 1. Stainless Steel World, June models with tests and develop a HERA ance for the Investigation into Building 2014. capability to assist New Zealand design- Failures: Best Practice in Material Testing - Karpenko M, Hicks S: Guidance for the ers who wish to use this technology. - Steel Construction. IIW Document XV-1446- Investigation into Building Failures: Best 13, 2013 Practice in Material Testing - Steel Construc- Welding Technology Research - Gümpel P, Leu F, Burkert A, Lehmann J and tion. HERA Report R5-55:2014 • International Corrosion Study of Alternative Stainless Steels 2013/2014 Industry Development Publica- The NZ Welding Centre in co-operations: - Design Considerations for a Shape Memory Alloy tion with NZSSDA and the interna- Machine: HERA Report: R5-54 (draft) 2014 tional partners University of Applied - Above Ground Geothermal and Allied Technologies - Five papers by AGGAT researchers were published Sciences, Konstanz and BAM Berlin, Research Roadmap: HERA Report: R5-47 2014 or accepted for journal publication. Germany, completed a long-term re- - Geothermal Capability Register (3rd edition): HERA - AGGAT researchers made 10 presentations at search project investigating perform- Report: R5-35 2014 national and international conferences. ance of a range of lower-cost stainless steel grades in welded and unweld- ed condition, and different finishes.

The study also included long-term ex- posure corrosion tests simultaneously performed in New Zealand and Ger- many focusing at application in civil engineering, examining the effect of coastal and urban atmospheres. The research results have been published in the Stainless Steel World magazine. • AGGAT Materials Research In the Above Ground Geothermal Al- lied Technologies programme, the NZWC focused on the development of an experimental testing rig that allows simultaneous testing of up to 20 real size samples. It will be installed at Con- tact Energy’s geothermal site in Taupo. The generous support from industry members fabricating the test rig is ap- preciated and is recognised as industry co-funding to the programme. Further work included research into existing material databases, literature, case studies and research reports with the aim to have a customised AG- GAT material selection database ac- cessible for our industry members. Right: Two Dust Control Discharge Hoppers ready at Port Tauranga for shipping to Geelong Port, Australia. The hoppers are designed and manufactured by HERA member Page Macrae Engineering, and were sold to Boral Cement, Australia, 2013 .

AGGAT heat exchange test rig

9 Annual Report 2014 Repassivation-Potential at 20 °C for a range of stainless steel grades and finishes tested FOCUS: BUSINESS MODEL

in income balance to 47% industry levy, a fire rating according to the more se- 27% govern- vere standard test requirements given ment and 25% by the European standard EN 1363-1. self-generated income as a Excellent correlation between the simu- result of the in- lations and the fire test were achieved, crease in indus- which led to unnecessary reinforcing bars try levy, while being eliminated from the floor. It is esti- traditionally this mated that the work led to cost-savings was more even of approximately $180,000 to the Cli- 1/3 1/3 1/3 bal- ent of a 40-storey building in Singapore. ance. Based on a total 13/14 An overview of the work was present- HERA income ed by Nandor Mago at the 2014 Simulia of $3.5 mil- Community Conference in the US. lion, the HERA surplus for the • HERA Collaborates On New ASI year was just Australian Steelwork Corrosion and over $500k. Coatings Guide A new Austral- As reported, ian Steelwork this was largely Corrosion and due to better- Coatings Guide than-budgeted has been pub- industry activ- lished by the ity translating Australian Steel into higher levy Institute (ASI). income, better- This design than-planned guide has been self-generated adapted from income and un- HERA Report derspending in- R4-133 enti- cluding on sala- tled New Zea- ry components land Steel- planned for work Corrosion new activities and Coatings Guide, which is the result of col- HERA’s business model as an industry but not activated. This surplus will help laboration efforts with HERA, the Galvanizers research, training and advocacy organisa- pay back HEERF loans of the last few Association of Australia (GAA), the Austral- tion is based on a balanced mix from Heavy years and will now assist HEERF to fund asian Corrosion Association (ACA) and ASI. Engineering Research Levy (HERL), Gov- the substantial HERA House refurbish- ernment and Heavy Engineering Educa- ment planned during the year. Cover- An associated IP agreement pro- tional and Research Foundation (HEERF) ing considerable deferred maintenance, vides for some ongoing HERA income co-funded R&D, self-generated income extending usable space and future- from sales of the guide in Australia. from contract research, consulting and proofing the look and feel of the build- training, members-based income from ing for the next 20-30 years will benefit membership fees as well as HERA con- this recognised industry meeting place. ference management and facilities hire. HERA Research Exports As a result of the significantly increased • Cost Savings to Composite Floor industry funding via the levy on heavy Design in Singapore steel, an increased focus on industry HERA’s efforts for diversification of income levy-funded research was considered in streams continue to show results. FE Ana- the 13/14 budget. However, HERA was lyst Nandor Mago and Dr Stephen Hicks unable to fully deliver on this plan due were responsible for numerical simulations to performance pressure from commit- to estimate the performance of a composite ted commercial projects, and inability to slab using a re-entrant profiled steel sheet. attract suitable qualified research staff. This was prior to a full-scale loaded fire The HERA 2013/14 income and expense test being undertaken at Warrington in streams are as outlined in the income and the UK to verify the performance pre- expenses diagrams. It shows the shift dicted by the simulations, and obtain Loaded fire test on composite slab at Warrington, UK

Annual Report 2014 10 FOCUS: TRAINING & EDUCATION

Although HERA is primarily a research with the best national and international provider, it also provides industry train- practice. The training is provided by the ing through filling the gaps that are not ANB Approved Training Body (ATB), provided through conventional education the HERA Training Centre. The courses providers. In 2013/14, seminars and cours- include the popular AS 2214 Welding es accounted for 5% of HERA income. Supervisor course and also the newly established International Welding In- HERA through its NZ Welding Centre spector IWI-B and IWI-S courses. A to- (NZWC) division is committed to pro- tal of 84 welding professionals attended viding technology courses that comply HERA’s training courses in 2013/14.

The 14m long, 4m width, 35-tonne LTS Skid for Greymouth Petroleum, LT separator, twin heat exchanger, piping and instrumentation fabricated by HERA member Tenix New Zealand at New Plymouth workshop. The scope of the Tenix contract included design to ASME VIII, AS1210, PD5500 Cat 1 TEMA R standards, all piping and instrumentation, protective coating system, and delivery to site

Below left: Welding consumable imports give a good indication of welding activity development Source: Statistics New Zealand / HERA

One of three 50t cranes fabricated by HERA member Baker Cranes Below right: Presentation of IIW Welding Inspection Diplomas to attendees of the course in Auckland lifting segments for Waterview Tunnel project

Minister Gerry Brownlee and MP Rt Hon Amy Adams with Pegasus Engineering MD Gavin Lawry at the opening of their new engineering facilities in Christchurch Main structure of the Isaac Theatre Royal in Christchurch fabricated by HERA member Pegasus Engineering. The original building was badly dam- 11 Annual Report 2014 aged after the earthquake and rebuilt, with strengthening of the original front facade and new roof structure installed FOCUS: TRAINING & EDUCATION

Left to right: Dr. Duane Miller, Lincoln Electric USA; Mr Duncan Hill, Lincoln Electric NZ; Dr Michail Karpenko, HERA; Dr. Wolf- gang Scholz, HERA Director In 2013/14, the NZWC has made contributions to technical events to an audi- ence of more than 260 professionals. The events included the SCNZ-organised Steel Structures seminar on seismic steel design and standard compliance, NZWC De- sign of Welded Connections seminars with world authority on welded designs Duane K. Miller from the Lincoln Electric Com- pany, USA, and a Quest Technology Fit- ness for Service course covering the basis for assessment of pressure plant equip- New 5-level car park servicing Christchurch’s Hazeldean Business Park - a development by Calder Stewart. The steel was fabricated and erected by ment for continued service in accordance HERA member Chapman Engineering with the primary floor beams (440 tonnes) supplied by HERA member Steltech Structural with the API 579 organised by the NZWC.

Seismic Design and Compliance Dr Stephen Hicks and Michail Karpenko delivered presentations on compliance of steel structures at a well-attended seminar series in Auckland, Wellington and Christch- urch on behalf of SCNZ. The presentations provided an overview of the current compliance requirements in the key structural steel design and welding standards (NZS 3404 and AS/NZS 1554), as well as presenting current industry initiatives to ensure quality and certainty in the delivery of structural steel projects. The seminar series also provided the platform for the launch of the new HERA Publication P4001:2013 - Seis- mic Design of Eccentrically Braced Frames. Polished stainless steel food grade dairy fan with 750kw motor designed and built by HERA member Windsor Engineering

HERA ANB Chairman’s Report 2014 and certifications by introducing mini- that comprises representation from the NZ mum requirements for training and edu- fabrication industry, training providers, uni- cation for personnel involved in weld- versities and other interested parties which ing activities more than 10 years ago. have a valid interest in the programmes.

Phil Stacey This scheme is now recognised in more These representatives give freely of their Chairman HERA ANB than 43 countries and is now acknowl- time and expertise – I thank them for their edged in many AS/NZS Standards. contributions and efforts in making this The IIW requirements are applied uni- first full year as successful as it has been. The HERA ANB has now com- formly by all countries involved and the pleted its first full year in operation. diplomas granted are mutually recognised. Statistics for the year 2013/14 are I believe Around the world, standards and regulations The organisations administering the sys- very impressive for our first year of opera- relating to the construction and welding of tem in each country are known as the tion: t h e HERA ANBCC (Authorised Nation- products recognise the importance of the IIW Authorised National Bodies (ANBs). al Body Certification Committee) issued: competency of welding coordination/super- 22 diplomas for the Internation- vision and welding inspection personnel. The ‘welding’ industry needs welding al Welding Inspector qualifications co-ordination/supervision and weld- IWI-B and IWI-S, These two roles are seen as essential ing inspection staff with specific techni- and 23 certificates for the AS 2214 to ensure not only greater productiv- cal knowledge that is not usually avail- Welding Supervisor qualification. ity, quality and integrity of welded com- able within a standard technical education. ponents, and plant maintenance, but also All the lecturers involved both from HERA for the delivery of improved public safety. This is a unique and very important niche and specific guest lecturers must be com- market that has been successfully filled mended for their commitment and qual- To maintain a competitive edge, New by the HERA ANB the International In- ity of teaching to obtain these results. Zealand industry requires a skilled work stitute of Welding (IIW) Authorised Na- force provided through tertiary education. tional Body (ANB) for New Zealand. HERA’s welding supervisor and welding inspection qualification programme is While following the domestic require- The HERA Training Centre policy is also central to the Steel Fabricator Cer- ments for qualified Welding Inspec- to provide courses that lead to both tification Scheme (SFC) that has been tors and Welding Supervisors, it is es- national and international qualifica- jointly developed by HERA and SCNZ. sential that technology-related training tions. HERA ANB implements the train- complies with internationally recognised ing and examination requirements for The Scheme is based on IIW’s world- standards and qualification systems. these welding-related qualifications. class Manufacturer Certification Scheme IIW MCS ISO 3834 that re- The International Institute of Welding All activities of the HERA ANB are controlled quires certified fabricators to have ap- (IIW) pioneered a series of qualifications by an independent ANB Governing Board propriately qualified staff in place.

Annual Report 2014 12 FOCUS: LEADERSHIP

Sustainable Steel Council Supports Australasian EPDs

Globally, manufacturers and their customers are increasingly recognising the value of En- vironmental Product Declarations (EPDs) as a robust science-based communication tool that provides information and data about the environmental performance of products. This is especially true for building and construction - a sector that uses numerous products and materials fulfilling different functions frequently in combination with other products, which makes assessment inherently challenging. This complexity The new 4-level office block in Christchurch’s Hazeldean Business Park by Calder Stewart Industries. It incorporates Buckling-Restrained has made it difficult for manufacturers to Braces (BRBs) with removable active links recommended by project consultant and HERA member Structure Design Ltd demonstrate the environmental creden- tials of their products, based on objective, transparent, performance-based criteria.

EPDs, backed by Life Cycle Assessment (LCA), are developed using consistent rules and are independently verified, providing a robust basis for measuring and communicat- ing environmental performance. They report on the environmental impacts of products for all or part of the life cycle, based on measured data such as amount and types of energy used, water use, amount and type of feed- stock materials, packaging and transport. EPDs are also increasingly being used by the major green building rating tools around the world, including the Green Building Council of Australia’s Green Star tool, BREEAM in the UK and LEED in USA. Building on the The MIT buuilding in Manukau completed by HERA member Hawkins Infrastructure Group with steel structure components supplied by HERA success of their web site that was launched member MJH Engineering last year, together with the support given to NZGBC on their BASE tool, the Sustainable Steel Council (SSC) is the only material-specific organisation that is seed-funding the development of an Australasian EPD Scheme. The Australasian EPD Programme has been created as a developer of Product Category Rules (PCRs) and Registrar of EPDs by the formation of a company jointly owned by Life Cycle Association of New Zealand (LCANZ) and the Australian Life Cycle Assessment Society (ALCAS) in alliance with the International EPD (IEPD) System which is operated by the Swedish Environmental Management Council, the world’s largest EPD registrar, to ensure recognition of the Australasian scheme and the associated EPDs internationally.

Australasian Certiﬁ cation Authority for Reinforcing and Structural Steels Air-cooled condenser built by HERA member ABS Boiler for client Technip in New Plymouth to the petrochemical industry

As steel is now being sourced from a wider range of suppliers, and the conformity assessment of products is a specialised skill, third-party conformity assessment is becoming the normal approach internationally.

The Australasian Certification Authority for Reinforcing and Structural Steels (ACRS) has become the first structural steel product certification body to be accredited by the Joint Accreditation System for Australia and New Zealand (JAS-ANZ) to ISO/IEC 17065: 2012. AdaptARC® trials at HERA member Culham Engineering. Inset: The Welding Expert Team at Culham with HERA’s Alan McClintock (centre) 13 Annual Report 2014 and Dale Flood, TRI TOOLS Inc. (centre right) FOCUS: LEADERSHIP

To ensure that New Zealand interests are represented at the board level, Dr Stephen Hicks of HERA and Nick Hill of BOINZ were elected as ACRS Directors in 2014.

Welding Fabrication Connects NZWC is closely linked to the SCNZ, NZSSDA, Metals NZ and international partners from the Academic and IIW environment. Dr Michail Karpenko represents HERA, HERA ANB and HERA ANBCC at the IIW. He also performs the Secretariat role for the NZSSDA. He is the Chief Executive of the HERA ANB and the Scheme Manager of HERA ANB.

There is a close collaboration with Compe- tenz – Training Centre Manager Alan Mc- Clintock contributes to the Sector Adviso- ry Group for Fabrication and Welding, and through the Director, HERA assisted the Governance Group overseeing the review of Mechanical Engineering Qualifications. Membership of university a d visory c o mmit- tees and industry a d visory b o ards complete the many HERA industry representation roles played. HERA senior staff also play leading roles on the Executive and Boards of its related industry associations, such as SCNZ, NASH, NZSSDA and Metals NZ.

Building Industry Export Opportunities

Industry Development General Manager Nick Inskip continued in his role representing the metals industry on the Executive of the Aotearoa Wave and Tidal Energy Asso- A new weather radar tower built and installed by HERA member ciation (AWATEA). He chairs the working Acme Engineering for the NZ Metservice on a hilltop just outside of Kaeo in Northland. This is the 4th in a series of towers that group on the development of a New Zealand Geothermal ORC low-heat capture system demonstrated at the ORC Acme have built and installed around the country for the Met- Conference attended by Dr Boaz Habib service.

Below: HERA member Farra Engineering celebrates its 150th anniversary this year and has been a HERA member for almost 30 of those years. Congratulations! Annual Report 2014 14 FOCUS: LEADERSHIP

Marine Energy Centre (NZMEC) and has been active in promoting the long-term industry opportunities that will accrue from the successful establishment of the centre. He travelled to Inverness in Scotland to meet with the Board of Directors of the European Marine Energy Centre (EMEC), and as result a business case has been developed and submitted to Govern- ment based on a joint venture with EMEC. Metals NZ CEO There are significant niche opportunities for marine energy aside from grid Gary Hook Learning from Fabricated Steel Imports presentation by Kristian connection, including a Scottish concept Nelson, Engineering Manager at McConnell Dowell Constructors on for offshore fish farms which are receiv- the Lower Hatea Bridge ing a lot of interest in New Zealand with I joined Metals New Zealand late in high prospects for local manufacture. 2013 to help further establish it as a respected ‘peak body’ representing the interests of a broader Metals HERA has continued to champion and sup- manufacturing and building industry. port an NZ Inc approach to Geothermal with a particular focus on above ground The immediate priorities for me in po- technologies. A key component of which, is sitioning Metals NZ have been to: developing the research agenda for above • Progress the ‘Securing the Future of ground technologies supported by the AG- New Zealand Metals Engineering’ GAT Research Roadmap which has been project finalised as HERA Report R5-47:2014. The • Responding to numerous Govt Agency AGGAT programme is governed through discussion papers and policy announcements Labour Party representatives David Parker and Andrew Little a Joint Venture Board which includes rep- meeting with the Metals NZ Executive members at New Zealand • Identify and generate key relationships Steel resentation from universities, industry and • ‘Be present’ and interact on key issues end-user companies with the intent of fos- affecting all member associations tering close and targeted co-operation. • To demonstrate the value of such peak appreciation for our supply chains and body efforts whilst we are not likely to see any structur- • Develop a Plan to include financing for al changes in the short term, there are two 2014/15 perceptions about the steel supply chains that we need to continue to work on col- ‘Securing the Future of Our Industry’ lectively being capacity and profitability. is about various projects in support of MBIE’s implementation of new pro- Establishing connections and building re- curement policy, rules, procedures and lationships is important and this year we tools centred aimed at best practice cri- have had a Metals NZ Executive interac- teria-based balanced decision making. tion with the Labour Party and numerous Executive interactions with National MBIE and various Government agen- Party politicians and Political advisors. cies appear to be currently challenged by time in designing and implementing new MBIE, NZ Customs and WorkSafe have procurement tools and processes and in also been targets in Wellington for Met- achieving decision maker compliance. als NZ advocacy interaction on various matters. I have also been working closely We have offered our help on numerous with the Building Industry Federation occasions to work with the process de- particularly on Building Materials and velopers and practitioners and this was Policy announcements and have facili- never going to be a short-term project. tated reciprocal membership with NZCID. The NZ Geothermal Capability Regis- In keeping with our supporting this shift, Some form of safety support for our Met- ter that showcases the capabilities of als NZ members is under evaluation. It NZ companies has been fully reviewed I am in the process of designing a workshop where MBIE and agency procurers has been identified as a common chal- and updated, and is now available as lenge facing businesses right now, with HERA Report R5-35:2014 as a hard copy, will be invited to join our industry members to jointly explore the appropriate WorkSafe operating with new vigour and as a PDF and a searchable direc- decision criteria, and factor weightings and targeting our higher risk work areas. tory on the HERA and AGGAT web sites. in line with the new policy objectives. Our SME businesses will always be search- Kick Starting Metals New Zealand This initiative, together with keeping a high ing for efficient ways of at least meeting As the last HERA strategy review showed, energy watch on the policy implementa- the minimum standards, and some form of the membership wants HERA to play tion, significant procurement projects de- ‘clubbing together’ could increase learning a strong advocacy role. HERA has re- cision making and positive case studies and reduce cost. I am also exploring this sponded to this task, particularly through from our sectors, will make up the activi- project with the intent of creating a value the Director’s and division managers’ ac- ties for this project for the coming year. proposition that may be of interest to the tions with industry-wide engagement. Aluminium metals manufacturing sector. The All of Government procurement However, based on the fact that HERA project for Building Materials was an- Metals NZ is planning for a higher is, first of all, an industry research as- nounced late 2013. Two material cat- level of industry participation for our sociation for the metals engineering in- egories were prioritized being steel and Conference - Sept 3rd - 5th 2015 in dustry, advocacy is at the core of many timber, and advisory panels created. Auckland. The Steel Innovations and more sector organisations, HERA has Metals NZ Conferences will be run con- been the driver to establish the united A number of collective and individual meet- currently at a single venue, with an industry voice Metals New Zealand. ings and visits were held allowing MBIE to Awards dinner on the Friday evening. openly explore for opportunities to lower This year saw the appointment of its first cost. It has just been announced that work We will be seeking to organize a week CEO, Gary Hook, and as his report shows, will stop on the steel supply chain reviews to of activities across the metals manu- his Metals NZ activities have delivered allow all resources to be focused on timber. facturing, building and construction first results. HERA will continue to support sectors, culminating with the Confer- Metals NZ and the “Securing the Future of We have been complimented on our ences that together will assist our ef- New Zealand Metals Engineering” project. efforts to give the MBIE staff a full forts in lifting the profile of our industry. 15 Annual Report 2014 HERA FINANCIAL STATEMENTS

REPORT OF THE INDE- STATEMENT OF FINANCIAL PERFORMANCE FOR YEAR ENDED 30 JUNE 2014 PENDENT AUDITOR ON THE Note 2014 2013 SUMMARY FINANCIAL STATE- Revenue MENTS Levies (Steel & Welding Consum.) 1,614,216 349,245 To the Executive Committee of Government Research – AGGAT 919,076 689,307 New Zealand Heavy Engineer- Tech NZ – Clean Energy - 239,588 ing Research Association Inc GRC-Deferred Income 828 1,398 Consultancy and Industry Project 129,591 239,465 The accompanying summary fi- Services to 3rd Party 22,441 21,076 nancial statements, which com- Member Subscriptions 165,143 162,254 prise the summary statement of Interest 8,840 2,804 financial position as at 30 June Other Income 49,662 25,432 2014, the summary statement of income statement and summary Publications 39,487 34,170 statement of changes in equity Welding Modules 21,262 76,568 for the year then ended, and re- Rent 77,411 77,179 lated notes, are derived from the Metals Conference - 32,173 audited financial statements of Seminars & Courses 188,259 215,953 Heavy Engineering Educational HEERF 9 147,031 74,309 and Research Foundation for Transfer from Backdated Welding Levy 20,320 58,100 the year ended 30 June 2014. Total Revenue 3,403,566 2,797,021 We expressed an unmodified Movement in AGGAT Deferred Income 29,753 (153,150) audit opinion on those financial Total Revenue (adjusted) 3,433,319 2,643,871 statements in our report dated 10 September 2014. Those financial Expenditure statements, and the summary fi- Staff Expenses 1,233,534 1,187,179 nancial statements, do not reflect Member Services 81,481 63,126 the effects of events that occurred Office & Other Expenses 192,685 177,478 subsequent to the date of our re- 68,581 146,578 port on those financial statements. Seminar Expenses Consulting Expenses 299,473 234,460 The summary financial statements External Research 675,772 516,313 do not contain all the disclosures HERA House Expenses 88,354 84,504 required for full financial state- Rent Expenses 206,860 206,860 ments under generally accepted Metals Conference Expenses - 2,843 accounting practice in New Zea- Impairment of property, plant and equipment 58,926 47,956 land. Reading the summary fi- Depreciation Expenses 27,312 - nancial statements, therefore, 2,932,975 2,667,296 is not a substitute for reading Total Expenditure the audited financial statements of Heavy Engineering Educa- NET (Deﬁ cit) SURPLUS FOR THE YEAR 500,344 (23,425) tional and Research Foundation Equity beginning of Year 44,512 67,937 Equity at the End of Year 544,856 44,512 Executive Committee’s Re- sponsibility for the Sum- mary Financial Statements The trustees are responsible for the preparation of a summary of BALANCE SHEET AS AT 30 JUNE 2014 the audited financial statements in accordance with FRS-43: Note 2014 2013 Summary Financial Statements. Assets Current Assets Auditor’s Responsibility Cash at Bank 2 8,991 50,266 Our responsibility is to express Call Accounts 3 443,166 15,187 an opinion on the summary fi- Bank - AGGAT 215,599 211,315 Accounts Receivable 4 160,637 213,543 nancial statements based on Inventory 10,931 8,148 our procedures, which were Other Pre-payments 5 176,978 98,874 conducted in accordance with TOTAL CURRENT ASSETS 1,016,302 597,333 International Standard on Audit- ing (New Zealand) (ISA (NZ)) Non Current Assets 810, “Engagements to Report on Fixed Assets 6 124,109 138,712 Summary Financial Statements”. NON CURRENT ASSETS 124,109 138,712 TOTAL ASSETS 1,140,411 736,045 Other than in our capacity as auditor we have no other relationship with or Equity & Liabilities interest in Heavy Engineering Edu- Accumulated Funds cational and Research Foundation Accumulated Funds 7 544,856 44,512 TOTAL EQUITY 544,856 44,512 Opinion In our opinion, the summary fi- Current Liabilities nancial statements derived from Accounts Payable 201,517 185,878 the audited financial statements GST Payable 31,488 12,164 of Heavy Engineering Educa- Holiday Pay Provision 49,064 56,110 tional and Research Foundation Advance from - HEERF 100,000 50,000 the year ended 30 June 2014 are Income in Advance 150,485 184,381 consistent, in all material respects, TOTAL CURRENT LIABILITIES 532,555 488,533 with those financial statements, in accordance with FRS-43. NON-CURRENT LIABILITIES Loan - HEERF 63,000 203,000

TOTAL EQUITY & LIABILITIES 1,140,411 736,045

CST Nexia Audit Chartered Accountants The specific disclosers included in the summary financial statements have been extracted from the full financial report dat- Manukau City, New Zealand ed 09/09/14. The summary financial statements cannot be expected to provide as complete an understanding as provided by the full financial statements. A full set of the audited financial statements is available on request from HERA.

Annual Report 2014 16 HEAVY ENGINEERING RESEARCH ASSOCIATION

2014 2013 NOTES TO THE 2012 2. Bank Balance - Current Account 8. Related Party FINANCIAL STATEMENTS Current Account 8,991 50,266 Heavy Engineering Educational and CSA 943 940 Research Foundation (HEERF) is 1. Statement of Accounting 8,991 50,266 a related party to the Association. Policies Reporting Entity 3. Bank Balance Call Accounts It is related by the administrative and man- New Zealand Heavy Engineering Call Account 443,166 15,187 agement expertise the Association provides Research Association Inc. (HERA) to the Foundation, in the form of grants is an Incorporated Society and 4. Accounts Receivable provided to the association for the research these financial statements have been prepared in accordance with Trade Receivable 160,637 213,543 projects it undertakes. It is also the Asso- the Incorporated Societies Act 1908 Less Doubtful Debt - - ciation’s landlord, owning HERA House. on the 30th day of August 1978. 160,637 213,543 9. Income in Advance Basis of Preparation 5. Other Receivables & Prepayments Majority of Revenue in Advance rep- The financial statements of the Accrued Income 163,266 93,258 resent income in advance from vari- entity have been prepared in Prepayment 13,711 5,615 ous agencies, which funds the As- accordance with generally ac- 176,978 96,873 sociation for research and services. cepted accounting practice and the Financial Reporting Act 1993. The funding received for programmes 6. Fixed Assets ACCUM. NET BOOK The accounting principles rec- (projects) that were completed dur- ognised as appropriate for the 2014 COST DEPRECIATION VALUE ing the year is recognised as revenue measurement and reporting of Metallurgy Equipment 12,430 12,430 - in that year. The remaining monies yet earnings and financial position on Office Furniture 20,861 20,514 347 to be spent on projects in progress historical cost have been used. Fixtures & Fittings 82,955 82,955 - are treated as income in advance. Reliance is placed on the fact that HERA House Refur- the Association is a going concern. bishment 147,053 109,393 10,348 10. BNZ Bank Account Motor Vehicles 172,826 119,688 53,138 Statutory Basis The Association has a Visa credit Office Equipment 222,896 163,211 59,685 These financial statements have card facility with BNZ. The limit on all been prepared in accordance with Training Equipment 86,399 85,808 591 cards is $29,000. (2013: $26,000) “Old GAAP” in New Zealand. Old 745,420 593,999 124,109 GAAP comprises New Zealand ACCUM. NET BOOK Financial Reporting Standards 11. Audit Fees and Statements of Standard Ac- 2013 COST DEPRECIATION VALUE Audit fees have been included in of- counting Practice that existed prior Metallurgy Equipment 12,430 12,430 - fice and other expenses to the value of to the introduction of New Zea- Office Furniture 20,306 20,173 688 $5,000 (2013: $5,000). There was no land Equivalents to International Fixtures & Fittings 82,955 82,955 - Financial Reporting Standards. other remuneration paid to the Auditors. HERA House Refur- New Zealand Heavy Engineering Re- bishment 147,053 94,687 52,366 Motor Vehicles 158,649 126,206 32,443 search Association Inc. has chosen 12. Capital and Other Commit- Office Equipment 210,525 157,163 53,089 to apply Old GAAP because it meets ments the criteria for doing so; that is, it was Training Equipment 86,037 85,911 126 As at 30 June 2014 there were no out- applying Old GAAP at 30 June 2012, 718,237 579,525 138,712 and it is neither publicly accountable standing capital commitments. (2013: $nil) nor large as defined in the External Reporting Board’s Standard A1: Ap- 2014 2013 13. Contingent Liabilities plication of Accounting Standards. 7. Accumulated Funds As at 30 June 2014 there were no out- Opening Accumulated Fund 44,512 67,937 standing contingent liabilities. (2013: $nil) The Ministry of Commerce has ap- Net Surplus 500,344 (23,425) proved a new Accounting Standards 544,856 44,512 14. Levies Income Framework (incorporating a Tier Steel Levy has increased with effect from 1 Strategy) developed by the External Reporting Board (XRB). Under this July 2013 due to an amendment in Heavy Accounting Standards Framework, Engineering Research levy (HERL) Act. New Zealand Heavy Engineering Research Association Inc. is classi- 15. Post Balance Date Events fied as a Tier 3 reporting entity and As at 30 June 2014, there were no signifi- will be required to apply Public Ben- cant Post Balance Date Events. (2013: $nil) efit Entities Simple Format Report- ing Standard – Accrual (PSFR - A).

These standards have been developed by the XRB based on current International Public Sector Accounting Standards. The effective date for the new standards for Fixed Assets goods and services or the pledge Differential Reporting not for profit entities is expected Fixed Assets are recorded at histori- to award a grant/donation. New Zealand Heavy Engineering Re- to be for reporting periods be- cal cost less accumulated depreciation. search Association Inc is not pub- ginning on or after 1 April 2015. Historical cost is the value of considera- Impairment licly accountable and is not large. tion given to acquire the assets and the Annually, the Association assesses the Accordingly, it has taken advantage This means New Zealand Heavy value of other directly attributable costs carrying value of each asset. Where of all differential reporting exemp- Engineering Research Association which have been incurred in bringing the estimated recoverable amount tions allowed under the Framework Inc. expects to transition to the new the assets to the location and condition of the asset is less than its carrying for Differential Reporting, except that standards in preparing its 30 June necessary for their intended service. amount, the asset is written down. items in the Statement of Financial 2016 financial statements. The impairment is recognised in the Performance have been recognised Fixed assets are depreciated us- statement of financial performance. exclusive of Goods and Services Tax. Revenue ing the straight line method at rates: Grants and levies received with Office Equipment 15%-40% Goods and Services Tax Changes in Accounting Policies no conditions attached are recog- Office Furniture 15% All amounts are shown exclusive of There have been no changes in ac- nised as income when received. Fixture & Fittings 15% Goods and Services Tax (GST) ex- counting policies. Accounting poli- Revenues with conditions attached Training Centre 25% cept for receivables and payables cies have been applied on a ba- are only recognised when the re- Motor Vehicles 20% that are stated inclusive of GST. sis consistent with previous years. spective conditions are fully met. Metallurgy Lab 15% The GST receivable/payable to the House Refurbishment 10% IRD at balance date is shown in the Comparatives Project Sponsorship and Grant Statement of Financial Position. Where necessary comparatives have monies are recognised as income Accounts Payable been restated due to a reclassification in proportion to the degree of com- Accounts and other payables are rec- Taxation of some items between the different pletion of the respective project. ognised when the Association be- The Association is exempt from categories of the financial statements. comes obliged to make payments in income tax under the Income These reclassifications do not have an 17 Annual Report 2014 future resulting from the purchase of Tax Act 2007 section CW 49 (1). impact on the net deficit for prior year HEAVY ENGINEERING EDUCATIONAL & RESEARCH FOUNDATION

Summary Financial Statement In line with its objectives, the Foundation funded a number of projects related to the metals engineering industry, including student support for research projects.

Statement of Financial Position as at 30 June 2014 Income & Expenditure for year ended 30 June 2014 NOTE 2014 2013 2014 2013 ACCUMULATED FUNDS INCOME Equity funds at start of year 2,388,694 2,301,096 Rent 206,860 206,860 Net surplus for the year 51,561 87,598 Interest 33,540 31,868 Equity funds at end of year 2,440,255 2,388,694 Bequest Interest 1,075 660 N. Calavrias Interest 117 160 REPRESENTED BY City Council Refund - 6,725 Current Assets Donation - 4,000 Bank 251,012 49,488 Total Income 241,592 250,273 Call Account 20,292 40,028 Short-term Deposit 606,348 781,523 EXPENDITURE STD - N. Calavrias 5,583 5,460 Blding Maintenance 1,150 605 Endowment Fund 457 454 Blding Managmt Fee 6,000 6,000 Noel Davies Advance to HERA 100,000 50,000 Trust Administration 10,000 10,000 HEERF Chairman Accrued Income 6,986 9,007 Grants to HERA 127,121 87,354 Accounts Receivable - 4,000 HERA House - 10,965 Chairman’s Report K.Smith - Bequest 39,601 37,813 Bank Charges 149 140 The Heavy Engineering Edu- GST 14,504 - K.Smith Award - 2,000 cational & Research Founda- 1,044,783 977,773 Audit Fees 1,200 1,200 tion (HEERF) is a Charitable Total Fixed Assets 1,333,672 1,218,083 145,620 118,264 Trust established by HERA to Loan - HERA 63,000 203,000 Depreciation 44,411 44,411 promote the study and under- TOTAL ASSETS 2,441,455 2,398,856 standing of the use of ferrous Total Expenditure 190,031 162,675 and non-ferrous metals in the Current Liabilities engineering industry. HEERF Accounts Payable 1,200 7,432 Net Surplus/ Deﬁ cit) 51,561 87,598 receives income from the GST Payable - 2,730 property ‘HERA House’ which TOTAL LIABILITIES 1,200 10,162 HERA settled on the Trust and NET TOTAL ASSETS 2,440,255 2,388,694 an endowment fund created in 2005/06, receiving donations 1. Statement of Accounting Policies using the straight-line method at 1% will be funded from the Foundation’s from those interested to sup- (a) General Accounting Policies of the cost price, Air Conditioning Unit cash reserves and bank borrowings. port the HEERF objectives. The Heavy Engineering Educational at 6% and Roof & Cladding at 10%. and Research Foundation (the Foun- 3. Related Parties dation) is a charitable trust established Differential Reporting The Foundation is related to New Zealand In 2013/2014, the Founda- under the Charitable Trusts Act 1957. The Foundation is a qualifying entity under Heavy Engineering Research Associa- tion contributed $127,121 the New Zealand Society of Accountants tion (HERA). Members of the Foundation to HERA’s research and in- (b) Particular Accounting Policies Differential Reporting Framework The en- are appointed by the HERA Executive. dustry development efforts. The particular accounting policies, which ma- tity qualifies under the size criteria, and terially affect the measurement of financial because it is not publicly accountable. HERA is the tenant of the land and Support included research performance and the financial position, are: The Foundation has not taken advantage building owned by the Foundation and scholarships supporting of the differential reporting exemptions pays rent. The Foundation pays fees to Income Tax available to it in respect of FRS-19: Ac- HERA for the management and admin- HERA steel construction and The Foundation has a charitable sta- counting for Goods and Services Tax. istration of the building. The Founda- Above Ground Geothermal tus from the Inland Revenue Depart- tion during the year has given a loan of and Allied (AGGAT) research ment, hence is exempt from income tax. (c) Changes in Accounting Policies $163,000 (2013: $253,000) to HERA. programmes. In the AGGAT There have been no changes in ac- space, HEERF scholarships Fixed Assets counting policies. Accounting poli- This includes an advance of $100,000 covered two PhD students, Fixed assets have been shown at cost less cies have been applied on a ba- and will be paid back by HERA in the - one at the University of Can- depreciation. Buildings are depreciated sis consistent with previous years. year 2014-15 hence classified as cur- terbury (UC) and another one rent. . The remaining balance of $63,000 at the University of Auckland This industry sponsorship of the 2. Commitments & Contingent is an interest-free loan and not re- prestigious NZEE Awards has al- Liabilities payable within the next 12 months. (UoA). In steel construc- There are no contingent liabili- tion, focus was on seismic ready in its first year raised the ties as at 30 June 2014. (2013: nil) 5. Post Balance Date Events research also with two PhD awareness of o ur industry’s contri- There were no significant post bal- scholarships one at UC and bution to engineering excellence. The Board of Trustees of Heavy Engi- ance date events. (2013: $nil) one at UoA in a co-operative neering Educational Research Founda- programme with Portland This year saw the long antici- tion (HEERF) is committed to financially 6. Bequest State Univerisity in America. pated start of the HERA House support the operations of New Zealand The income from the bequest is to refurbishment. With HERA’s Heavy Engineering Research Association be applied to a prize which shall be funding constraints addressed, (HERA) to fulfil its financial obligations to given bi-annually subject to the term The HEERF visiting scholar its third parties in the foreseeable future set by the late Mr K.Smith. This be- programme supported the the refurbishment planning was and to continue trading a s a going concern. quest is deposited with BNZ. This be- well-attended ‘Design of completed and it is anticipated quest has been recognised as income. Welded Connection – Fatigue that a $1.8M funding contribu- The Board of Trustees has approved and Seismic Applications’ lec- tion from HEERF will bring HERA the project for refurbishment and exten- ture series of US-based Dr. House up to current office stand- sion to HERA House (Atrium). The to- Duane Miller, a recognised ards, and provide a place for tal capital commitment on this project is world authority on the de- industry to work and meet in an estimated at $1.94m (excl GST), which sign of welded connections. environment which showcases our industry. Work is expected 4. Fixed Assets to be completed end of October COST ACCUM. BOOK VALUE In the industry promotion DEP. area, this year HEERF sup- and we look forward to welcom- ing our members at the opening. Land 244,602 - 244,602 ported mechanical engineer- Land Development 24,489 24,489 ing university student awards Atrium Upgrade 93,808 18,762 75,046 at the UoA and Auckland An exciting research and visiting scholar programme has Building Upgrade 311,019 149,101 161,918 University of Technology. For Air Condition Units 157,300 93,388 63,912 the first time HEERF sup- been outlined to the Trustees for 2014/15-year, and we are Building 1,049,091 285,368 763,705 ported HERA sponsorship 1,880,309 546,637 1,333,672 of the IPENZ organised New looking forward to ongoing Zealand Engineering Ex- top-class research supporting cellence (NZEE) Awards. the future of our New Zealand metals engineering industry. Annual Report 2014 18 HEAVY ENGINEERING RESEARCH ASSOCIATION MEMBERS Total HERA membership as of June 30, 2014 was 621 members. They are: AFFILIATE MEMBERS Fletcher Easysteel Hawkins Infrastructure S & T Holdings Vulcan Steel Ltd Fulton Hogan Ltd HTC Ltd TBS Corporation Welding Technology Inst of Australia ASSOCIATE MEMBERS S.A.F.E Engineering Ltd Gamman Industrial Componentry Ltd Peninsula Engineering Ltd A & S Engineering Ltd General Engineering North Shore Pet Food Division HW A W Trinder Ltd George Grant Engineering (GGE) Phoenix Steel Ltd ABB Power Limited Gisborne Development Incorporated Piako Transport Engineering Acrow Limited Global Engineering Products Ltd Pilcher Engineering Ltd Active Engineering Ltd Gray Construction Port of Napier Ltd Advanced Plasma Technology Greenlane Biogas Precision Turning & Manufacturing Ltd Aimecs Ltd Greymouth Petroleum (Hydraulink) Airwork (NZ) Ltd Harford Greenhouses Pro Custom Concepts Ltd All Steel Services Ltd Hayes International Pyramid Engineering Alloy Yachts International Limited HEB Construction Ltd Quality Auto Machinists (1988) Ltd ALRO Truck Smash Repairs Honnor Drilling Ltd Queenstown Engineering 2009 Ltd Alstom Northern Wagons Howard Wright Limited Razos Engineering Ltd Angus Robertson Mechanical Howick Engineering Ltd Read Industrial Ltd APV New Zealand Ltd Hydraulink Fluid Connectors Ltd Red Steel Limited ATCO Controls Ltd Hytools NZ Ltd Renold New Zealand Ltd ATI Engineering Ltd Iain Codling Stainless Steel Rex Barnes Engineering Awesome Awnings Ltd IBA Engineering RNZAF Axiam Engineering Limited Ipsco Ltd Roadmaster Trailers Ltd Bailey Engineering Ltd J & D McLennan Ltd Rocktec Ltd Baker Cranes Ltd J J Niven Enginering Ltd ROTIG Ltd BBC Technologies Ltd J P Marshall & Co Ltd Ruakaka Engineering Bedford Engineering Ltd Jay Cee Welding Ltd Service Engineers Ltd Bernie Jordan JB Attachments Ltd Sharland Engineering Best Bars Ltd Jetweld Engineering Ship Constructors Ltd Bitumen Equipment Ltd Keith M J Adams Simpsons Mobile Weld Testing Ltd BOP Gear Cutters Ltd Kernohan Engineering Ltd Smartweld Ltd Bradken Dunedin Kerry Dines Ltd Snorkel Elevating Work Platforms Brightwater Lakeland Steel Products Ltd Southern Cross Engineering Limited C J Saunders Engineering Ltd Laser Welding Ltd Southern Equipment Centre Calder Stewart Steel Leonard Products Ltd Specialised Container Services Cambridge Welding Service (1953) Ltd Liddells Contracting Ltd Specialist Energy Engineering Develop- Campbell Tube Products Ltd Linear Design ments (S.E.E.D) Canco Engineering Ltd Longhare Engineering Ltd Stafford Engineering Ltd CAS Enterprises Ltd Longveld Engineering Ltd Stainless Down Under CFM Engineering Ltd Mace Engineering Ltd Stainless Engineering Co Ltd Christian Church Community Trust Machine Part Welding Ltd Stark Bros Ltd Consolidated Engineering Company Ltd Maskell Productions Ltd StaTec Manufacturing Contract Connections Ltd MB Century Steelbro NZ Ltd Cook Brothers Construction McEwans (Division of Cut & Fold Ltd) Steelfort Engineering Company Ltd Courtney Engineering Michael Harris (NZ) Ltd Steelpipe Limited Croucher & Crowder Engineering Co Ltd Mike Christie Sheetmetals Ltd Stevensons Structural Engineers Ltd Cuddon Limited Millers Mechanical (NZ) Ltd Stewart & Cavalier Ltd Culham Engineering Co Milmeq Limited Stud Welding New Zealand Ltd D R Howells Engineering Co Ltd Mobridge Ltd Superior Pak Ltd Dan Cosgrove Ltd Modern Transport Engineers Ltd Taslo Engineering Dawn Group Ltd Mooloo Stockcrates Ltd Tasman Engineering Company Dimond Morgan Engineering Technical Welding Services (1998) Domett Trailers Morgan O’Shea Engineering The 4711 Training Centre Donovan Group NZ Ltd Morrow Equipment Co (NZ) The School of Welding Drury Construction Ltd Mouats Engineering Ltd Tidd Ross Todd Ltd DSK Engineering Ltd MSC Engineering Traction Lab Ltd Duncan Agriculture Ltd Mulcahy Engineering Ltd Transfleet Equipment Ltd Eastbridge Ltd Multi Engineering Transport & Engineering Ltd Eastern Institute of Technology Murray Landon Trident 2000 Ltd Ede Engineering Napier Engineering & Contracting Ltd Truweld Engineering Kerikeri Ltd EHL Group NDA Group Ullrich Aluminium Co Electropar Necklen Engineering Ltd Verissimo Engineering Ltd Engineering Contractors Ltd Nelson Reliance Eng Co Ltd Victoria Park Alliance Enterprize Steel Nelson Stud Welding Ltd Villa Maria Estate Eric Paton Ltd Niemac Industrial Ltd W M Ross Engineering Ltd Etech Industries NZ Ltd Noble Engineering Services Ltd Wainuiomata Training Centre Fairbrother Industries Ltd North Shore Towbars 2006 Ltd Wallace & Cooper Ltd .T/A Andar Holdings Fairfax Industries Ltd NZMP Kauri Waratah NZ Limited Farmex Hawkes Bay Ltd Otago Polytechnic Warner Construction Ltd Felix Research Labs Otahuhu Engineering Ltd Webforge NZ Fraser Fire & Rescue Outside Broadcasting Weld Fabrication Engineering Ltd Fruehauf Limited Pacific Timber Engineering Ltd Weld Tests Hawkes Bay Fyran Marine Ltd Parr & Co Limited Welding Services Nelson Ltd Patchell Industries Ltd Welding Technology Ltd 19 Annual Report 2014 Pearson Engineering Ltd Wells & Boe Ltd HEAVY ENGINEERING RESEARCH ASSOCIATION MEMBERS

Westside Welding Ltd Geoff Kell Consulting Ltd Whangarei Engineering Company Ltd GHD Ltd Redco NZ Ltd Wilson Bros Engineering Ltd (SAECOWi- Gray Consulting Engineers Ltd Richardson Stevens Consultants (1996) lson) GVK Design & Engineering Consultants Ruamoko Solutions Ltd Wilson Precast Construction Ltd Hadley & Robinson Ltd Windflow Technology Ltd Sawrey Consulting Engineers Ltd Hanlon & Partners Ltd Windsor Engineering Sigma Consulting Engineers Ltd. Wyma Engineering NZ Ltd Harrison Grierson Consultants Ltd Sigma Ltd Zealsteel Ltd Hawthorn Geddes Engineers & Architects Silvester Clark Consulting Engineers Zeanova Ltd HFC-Harris Foster Consultants Ltd Southern QA Ltd Hill Design Engineering Ltd Spencer Holmes Ltd HLK Jacob Limited Spiire New Zealand Ltd ORDINARY CONSULTANTS Holmes Consulting Group Stephen Mitchell Engineers Abacus Engineering Ltd Hugh Barnes Consultants Ltd Stiffe Hooker Ltd ACH Consulting Limited Independent Technology Ltd (ITL) Stiles & Hooker Ltd AECOM New Zealand Ltd. Index Engineering Ltd Strata Group Consultants Ltd Airey Consultants Ltd Jacobs New Zealand Ltd - (Formally SKM) Stratum Consultants Ltd Allan Estcourt Ltd JAWA Structures Ltd Structural Concepts Ltd Amtec Engineering Ltd JNG Engineers Ltd Structure Design Antro Enterprises Limited Kerslake & Partners Tasman SV Consulting Aurecon New Zealand Ltd Kevin O’Connor & Associates Ltd TH Consultants Ltd Babbage Consultants Ltd Kirk Roberts Consulting Engineers Thorburn Consultants (NZ) Ltd Base Consulting Engineers Ltd KM-Mechanical Ltd Thorne Dwyer Structures Batchelar McDougall Consulting Ltd Kordia Ltd TM Consultants Ltd Beca Ltd Les Boulton & Associates Ltd Tonkin & Taylor Belcher Industries Ltd Lewis & Barrow Ltd Transport Design & Certification BGT Structures (Auckland) Ltd Lewis Bradford & Associates Ltd Transport Technology Ltd Bill Cassidy & Associates LGE Consulting Ltd Transtech Dynamics Ltd Bloxam Burnett & Olliver Ltd LHT Design Tse Taranaki & Associates Limited Blueprint Consulting Limited LineTech Consulting Ltd UCOL BPL Group Lough Downey Ltd URS New Zealand Ltd BSK Consulting Engineers Ltd M.A. Corkery & Associates Ltd Verstoep & Taylor Ltd Buchanan & Fletcher Ltd MacDonald Barnett Partners Ltd W Stringer Consulting Cameron Gibson & Wells Ltd Manktelow Consulting Engineers Ltd Waikato Engineering Design Ltd Centraus Structural Consulting Ltd Marino Consultants & Associates WH & NF Johnston Ltd Chambers Consultants Ltd Markplan Consulting Ltd Worley Parsons New Zealand Ltd Zigliani Technologies Ltd Chapman Oulsnam Speirs Limited Matrix Applied Computing Ltd Chapman Sanders Consultants MEC Engineering Consultants Charles Consulting Metal Test Ltd ORDINARY FABRICATORS Chester Consultants Ltd MH Design Ltd Chris W Howell & Associates Ltd A&G Price Mighty River Power Limited (MRP) Acme Engineering Ltd Civil Engineering Central Ltd Milward Finlay Lobb Ltd CLC Consulting Group Ltd Active Welding Limited Mitchell Vranjes Consulting Engineers Ltd Clendon Burns & Park Ltd Advance Boiler Services NZ Ltd Motovated Design and Analysis Ltd Compusoft Engineering Allied Industrial Engineering Ltd MSC Consulting Group Ltd Coulter Engineering Services Ltd Amtec Engineering Ltd MTL Create Ltd Atco Steel Developments Ltd MWH New Zealand Ltd David Smart Consulting Ltd Babcock (NZ) Ltd Nagel Consultants Ltd Davidson Group Ltd BDC Engineering Net Ltd Davis Ogilvie & Partners Ltd BDS VIRCON Nigel Harwood Engineering Consultant Day Consultants Belcher Industries Ltd North End Engineering DBCon Ltd BLM Engineering Co Ltd Design Engineering (SI) Ltd Novare Design Ltd Bromley Steel Design Management Consultants Limited OBD Consultants Ltd Burleigh Engineering Ltd DezignWorks BOP Ltd OCEL Consultants NZ Ltd Chapman Engineering Ltd DHC Consulting Limited Optimech International Ltd Combustion Control Ltd Dobbie Engineers Ltd Opus International Consultants Ltd CSP Pacific Dodd Civil Consultants PB New Zealand Ltd. Cullen Engineering Co Ltd Don Thomson Consulting Engineers Ltd Peter Swan Consulting Engineers D C Weld Ltd Dunning Thornton Consultants Ltd PFP Systems (NZ) Ltd D&H Steel Construction Limited Eastern Consulting Ltd Plant & Platform Consultants Ltd Design Production Ltd EMC-2 Pont Consultants Dispatch and Garlick Ltd Engenium Ltd Powell Fenwick Consultants Ltd E B McDonald Ltd Engineering Design Consultants Limited Powerhouse Forestry Ltd E4 Engineering (EDC) Prendos New Zealand Limited East Coast Steelwork Ltd ETS Engineers Ltd Protocold Services Ltd Eastland Engineering 2004 Ltd Evan Douglas Consulting Engineers Q Designz Limited Energyworks Ltd Fairclough and King Consultants Ltd R B Knowles & Associates Ltd Equipment Engineering (2008) Ltd Fletcher Construction R D Sullivan & Associates Ewing Construction Ltd Forbes Consultants R J Nelligan & Associates Ltd Farra Engineering Limited Fraser Thomas Limited R W & V Roberts Consultancy Fitzroy Engineering Group Ltd GDC Consultants Ltd RCR Energy Systems Ltd Annual Report 2014 20 HEAVY ENGINEERING RESEARCH ASSOCIATION MEMBERS

Gisborne Engineering Ltd Waikato Steel Fabricators Ltd BDS VIRCON Gray Brothers Engineering Warren Engineering Ltd CADPRO Systems Ltd Grayson Engineering Ltd Weld IT Ltd Christchurch Polytechnic Institute of Tech- H J Asmuss & Co Ltd Welding & Engineering Ltd nology (CPIT) Haarslev Industries (Formally Flo-Dry) Welding Inspection Services CSP Coating Systems Hornell Industries Ltd Weldtrade Engineering Ltd D C Weld Ltd HSM Engineering (NZ) Ltd Weldwell New Zealand Department Of CorrectionsDispatch and Garlick Ltd Integrated Maintenance Group Limited Weldworks Limited Genesis Energy Ltd (IMG Ltd) Whakatiki Engineering (1984) Ltd Gisborne Engineering Ltd J & R Slecht Limited Wilkinson Transport Engineers Independent Oilfield Inspection Services J Steel Australasia Pty Ltd Wine Country Sheetmetal & Engineering KiwiRail Limited Jensen Steel Fabricators Ltd Manukau Institute of Technology John Jones Steel Ltd Materials & Testing Laboratories Kawerau Engineering Ltd ORDINARY PRODUCT SUPPLIERS Meridian Energy Ltd Kraft Engineering Ltd Advance Boiler Services NZ Ltd Metal Tech Education Ltd Lyttelton Engineering Ltd Akzo Nobel Coatings Ltd Metal Test Ltd Mahurangi Sheetmetals Ltd Alfa Group Ltd Motovated Design and Analysis Ltd Mainarc Engineering Services Ltd Altex Coatings Ltd New Zealand Refining Co Ltd Martin Engineering (PN) Ltd Amtec Engineering Ltd New Zealand Transport Agency (NZTA) Nova Energy Ltd MaxiTRANS Industries (NZ) Pty Ltd Aotea Machinery Ltd Ballance Agri-Nutrients Ltd NZ Army-Trade Training School McConnell Dowell Constructors Ltd NZ Welding School (MACDOW) BCD Group Ltd BOC Gases New Zealand Ltd Port of Tauranga Limited McGrath Industries Limited Cable Price (NZ) Ltd Prendos New Zealand Limited McKenzie & Ridley (Kawerau) Ltd Combustion Control Ltd RNZN Operational Support Group Mercer Stainless Ltd Crow Refractory Ltd Robert Page Engineering Ltd MGE Engineering Ltd D C Weld Ltd SCA Engineering Pty Ltd Mitchell Vranjes Consulting Engineers Denis Cunningham Ltd SGS New Zealand Limited MJH Engineering Ltd Dexion New Zealand Southern Institute of Technology Modern Construction Ltd Digitalweld Southern QA Ltd Monocrane Zolo Ltd Dispatch and Garlick Ltd Steel Pencil Holdings Limited Morgan Steel Dulux Powder & Industrial Coatings Stork Cooperheat New Zealand Ltd New Zealand Steel Ltd Enviroservices (2002) Ltd Structurflex Limited Survey NZ Newton Weld Equipment Ltd FiltrationTechnology (Filtec) S & T Stainless Ltd TankTest NZ Ltd NZ Army-Trade Training School Techlogic NZ Oceania Aviation Ltd H J Asmuss & Co Ltd Hobeca Trading Co Ltd Tenix Otahuhu Welding Ltd Juken New Zealand Ltd (Wairarapa) Transport Technology Ltd P J Hindin Engineering KiwiRail Limited Transtech Dynamics Ltd Page Macrae Engineering Mainzeal Property & Construction Ltd Trustpower Ltd Pakuranga Engineering Ltd Martin Engineering (PN) Ltd UCOL Parfoot Engineering Limited Modern Maintenance Products Ltd Unitec Institute of Technology Patton Engineering Ltd New Zealand Steel Ltd University of Auckland & UniServices Pegasus Engineering Ltd North End Engineering Victoria University of Wellington PFS Engineering Ltd Oceania Aviation Ltd Waikato Institute of Technology (WINTEC) Pipe & Tube Welding Engineering Ltd Onesteel NZ Limited Weatherford New Zealand Wellington Institute of Technology Powerhouse Forestry Ltd Pacific Steel Group Pipes NZ Limited (WELTECH) RCR Energy Systems Ltd X-Ray Laboratories Ltd Rees Engineering Ltd PPT Sandvik New Zealand Ltd RNZN Operational Support Group Speedfloor NZ Roadrunner Manufacturing (NZ) Ltd Steel & Tube Stainless RECIPROCAL MEMBERS Robert Page Engineering Ltd Steel Co Limited Sabre Engineering Ltd American Institute of Steel Construction Steltech Structural Limited American Welding Society SCA Engineering Pty Ltd Tenix Australasian Corrosion Association South Pacific Industrial Ltd. The Fletcher Construction Co Ltd - Trading Australian Steel Institute Southern Spars Limited as Piletech Bio Energy Association of New Zealand Speedfloor NZ Traydec (NZ) Ltd British Constructional Steelwork Associa- Steltech Structural Limited Trustpower Ltd tion Building Research Association of New Stevenson Engineering Ltd Wattyl (NZ) Ltd Weld IT Ltd Zealand Structurflex Limited Canadian Institute of Steel Construction Tanker Engineering Specialists Ltd Welding Engineers NZ Ltd Canadian Welding Bureau TankTest NZ Ltd Competenz Taymac Limited Crane Association of NZ (Inc) ORDINARY SERVICES PROVIDERS DVS - German Welding Society Ten4 Ltd National Association of Steel Framed Tenix Active Welding Limited Housing Texco Steel Ltd Advance Boiler Services NZ Ltd National Library of New Zealand Titan Marine Engineering AKSA Ltd New Zealand Geothermal Association Track Industries Ltd Alpha Training & Development Centre Ltd NZ Defence Industry Association NZ Institute of Economic Research Tranzweld Altex Coatings Ltd Amtec Engineering Ltd NZ Marine Industry Association Turnco Engineering Limited PreFabNZ Inc United Engineering Services Ltd Aoraki Polytechnic Steel Construction Institute Auckland Council Universal Engineering Ltd Steel Construction New Zealand AUT University Straterra Inc 21 Annual Report 2014 Bay of Plenty Polytechnic Waikato Engineering Careers Association HERA DIVISIONS

HERA STRUCTURE The Association is based at HERA policy on items relating to R&D and House in Manukau, Auckland. With- heavy engineering industry develop- in HERA House are the offices of ment and communicates this to Gov- HERA and associated organisations ernment and other relevant bodies. Metals NZ, NASH and SCNZ, as well as a conference facility which Research is selected on the advice of can cater for up to 120 participants. subject-specific industry advisory panels and is usually of applied nature with Through its specialist staff it pro- short- to medium-term implementation. vides a combination of research, HERA’s research activities encom- training, advisory, industry de- pass the areas of steel construction, velopment and promotional serv- general heavy engineering, including ices, making it the national centre welding/joining, clean energy technol- for metals-based product design, ogy, industry capability and marketing. manufacturing technology, inspection and quality assurance. HERA HERA incorporates the activities of the is an accredited training provider Heavy Engineering Industry Develop- under NZQA and the International ment Division, Structural Systems Di- Institute of Welding (IIW) guidelines. vision, New Zealand Welding Centre, Inspection & Quality Control Centre, HERA also performs industry advocacy and its Information Centre with the fol- functions developing HERA member lowing specific services and activities:

Structural Systems Division • Provides advice on significant issues • Provision of educational material for • Sets priorities for NZ steel and com- to the metals industry training posite construction R&D through the • Performs targeted business develop- • Provides SFC scheme Steel Research Panel ment initiatives for the heavy engi- • Applied research supporting the use neering sector Inspection & Quality Control of steel and composite elements and • Leads AGGAT research programme Centre systems • Courses covering welding inspec- New Zealand Welding Centre • Input into New Zealand’s perform tion and NDT inspection methods • Specialised welding and joining ance-based Building Control System • Inspection-related seminars such as research, including technology trans- • Technology transfer mainly in the form Management Appreciation in Quality fer to industry of new processes of advice, training, consultation and Control and Inspection and techniques including Finite Element Analysis • Welding consultation, including HERA Information Centre • Product and services compliance practical welding advice • Library and publication services under ‘HERA Verfied’ certification • Educational courses and seminars, • Distribution of HERA and New including training leading to NZQA Zealand and overseas organisa- Heavy Engineering Industry and IIW qualifications tions’ publications Development Division • Maintains registry of and promotes • Providing input into national and • Membership management capabilities of the membership international welding-related training • Industry capabilities marketing

HERA STAFF 2014

Administration Director Dr Wolfgang Scholz Accounts Officer Kam Subramani

HERA Information Centre Manager Brian Low Resources Officer Gillian Casidy Receptionist Raewyn Porter

Heavy Engineering Industry Development General Manager Nick Inskip Senior Research Engineer - Clean Energy Dr Boaz Habib

Inspection & Quality Control Centre Manager Peter Hayward

Structural Systems General Manager Dr Stephen Hicks Finite Element Analyst Nandor Mago

New Zealand Welding Centre General Manager Dr Michail Karpenko Standing, from left: Holger Heinzel, Nandor Mago, Dr Boaz Habib, Gillian Casidy, Raewyn Senior Welding Engineer Alan McClintock Porter, Maud Tacci, Kam Subramani, Franz Thole, Alan McClintock Research Engineer Holger Heinzel Sitting, from left: Brian Low, Dr Stephen Hicks, Dr Wolfgang Scholz, Nick Inskip, Dr Michail Karpenko Inset: Peter Hayward Annual Report 2014 22