ANTICORROSION PROTECTIVE SYSTEMS Coatings & Linings Pipeline Rehabilitation Division Division NEWSLETTER www.aps-corporate.com NEWSLETTER June 2014 Issue 2

Sneak Peek in this Issue: Message from the Chairman Message from the Chairman This month, I find myself penning the Chairman’s letter from the News and Events comfort of the lounge in the Intercon Hotel in , having just checked in early this morning. It’s a good location to do Marketing News so. From where I am sat right now, I can look out of the window, across the road and see into the windows of our 21st story office in HSE Updates JalanBinjai. I’m looking forward to what I know will be a busy two weeks in town, filled with meetings with Petronas, the Subsea Asia APS Corporate Identity Exhibition, staff interviews and side trips to Labuan and possibly – APS Strapline even China. I am being joined on this trip by Terry Galvin, who will be leading HR Corner the interview process for a new Chief Operating Officer here in KL, necessitated by the new contracts that have recently been flowing Employee Spotlight in to APS Malaysia. We currently have 4 kms. of IFL pipeline rehabilitation, split over 4 pipelines that must be completed before the end of this year, the materials APS Corporate Identity for which are under manufacture as we speak. Next year, we anticipate the quantity will increase to – APS Website as much as 10 kms, representative of very respectable growth. New Faces in APS Malaysia Joining me also, are Jim Dymock and Saeed, here to tackle issues relative to the finalization of project documentation and software development. A busy period indeed for all concerned. Upcoming Events One of the principal aspects we have to consider during the employment of any senior manager is how the individual candidates may fit in with the core values of the company. Many of you will have Offshore Northern Seas Stavanger, Norway, August 25-28 heard that we shall also soon be beginning the search for Graham Young’s ultimate successor, with the plan established to bring in somebody to work alongside him for an extended period whilst they Oil & Gas Thailand 2014 learn the ropes. During the course of formulating an idea of what it is we are looking for in such , Thailand, September 2-4 candidates, it has been an interesting and useful exercise in terms of remembering the Values and No Dig Live 2014 Visions that have historically made APS a success. These values run through the core of all that we Coventry, UK, September 16-18 do. They are more than just guidelines, they represent a true belief in what the company stands for in terms of excellence and service to the customer. They must be understood, appreciated and ADIPEC 2014 , UAE, November 3-6 remembered by every company employee.

OSEA 2014 This year represents our 36th year as an entity here in the . For 36 years we have Marine Bay Sands, claimed to be the best at all that we do. It’s all well good to make those claims, but can we and do we December 2-5 still truly deliver? Can we and do we still have justification to be able to take pride in all that we do in a way we once did? I am a huge believer in leading by example and I can assure you all that from the top down, the enthusiasm toward the deliverance of excellence is no less burning bright now, than it was 36 years ago. I do however have a sense that we all occasionally need reminding of our values and for that reason, shall be making a determined effort over the weeks ahead to reinforce the beliefs that I feel are most important to the business and to each and every one of us. I hope that you will enjoy this, the second of our monthly publications and my thanks again to those who contribute and those also, who work so hard in the preparation of the edition.

Specialized in Quality – Since 1978 Specialized in Quality – Since 1978 ANTICORROSION PROTECTIVE SYSTEMS Coatings & Linings Pipeline Rehabilitation Division Division www.aps-corporate.com NEWSLETTER June 2014 Issue 2 NEWSLETTER News and Events MARKETING NEWS - EVENTS AND EXHIBITIONS Major Projects • IFL: Sarawak Operation - PETRONAS SKO: 4 pipelines of 6” with IFL to be completed before the end of 2014 • Pipeline Rehabilitation: Occidental of Oman 4-year call out contract; HDPE Compression Fit Lining (CFL); first work-order worth over 2 million USD • Coatings & Linings: Gorica – Baker Hughes – Lining of 40 frac- tanks and 6 road transporters • Coatings & Linings: Shell Nigeria – External coating & Neoprene cladding of 236 bends, 24”

APS Contract Signing with Al Ghalbi Our Pipeline Rehabilitation Division Head, Steven Latimer, secured a 4-year call-out contract for HDPE Compression Fit Lining with the end-user Occidental Of Oman and the main contractor Al Ghalbi. Dale Fisk, APS Commercial Manager, is seen here in the picture shaking hands with Al Ghalbi’s Projects Director, Eng. Salim Yaarubi during the contract signing ceremony on the 19th of May. “We are now in full swing to prepare for execution of the first work-order, worth over 2 million USD, starting in the month of July. This 4-year call-out contract is marking the return of APS to Oman with With the 2014 the CFL technology and is a first step in realizing the ambitious targets set for our Pipeline Rehabilitation Division over the coming years”; according to Steven Latimer. World Cup in Brazil opening, footie fever is about to grip the “Offshore visit in China for China Oil Company” country. Get involved Dean Wilson and Saeed Mohammed Wazed recently went on a site visit and be a winner with offshore China for an IFL project for China National Oil Company. The site visit our very own World was conducted to assess the practical conditions on the basis of which an official proposal will be submitted to CNOC for IFL lining a 2.7 KM – 12” flow line. cup sweepstakes. A similar site visit is planned in the month of June with Dean Wilson and Steven 32 nations gunning Latimer, offshore Abu-Dhabi for the operating company ZADCO for IFL lining for glory at the 2014 of a 3.6KM - 8” flow line. It is expected that both projects will be executed World Cup. For APS somewhere in the first quarter of 2015. staff who joined, each will be allowed IFL Video goes live in youtube! to have one team. Names of all participants in one hat and names of the teams in another hat. In this way draw APS Headquarters Relocation: Progression is On will be as random New video for IFL Installation has been A design review of the existing Zetas facility was under- taken and considerable modifications to as possible. APS uploaded in youtube and is already the layout & impro-vements were planned. shared to different groups in LinkedIn. Winners with their The facility upgrade is overseen by Robert Walters, Group Chairman and Dr Terry Galvin, Group HR Check this out! winning team will be Director. We’ll keep you updated, so stay tuned. officially announced on July Newsletter. MARKETING NEWS - EVENTS AND EXHIBITIONS

“All in One Rhythm” SPE Asset Integrity Management - “Changing the Culture, Raising the Bar” The SPE Asset Integrity Management was held on 13th to 14th of May 2014 at Park Hyatt Abu Dhabi Hotel and Villas, Saadiyat Island Abu Dhabi, UAE. The workshop aimed to explore asset integrity management taking a wider view “In any given beyond inspection, maintenance, and repair moment we have activities and consider the wider asset two options: integrity risks and concerns sometimes to step forward highlighted as a root cause of substandard into growth or equipment integrity. to step back The two day workshop has maximized into safety” the exchange of ideas among attendees and presenters through brief technical - Abraham Maslow presentations followed by extended Q&A periods. This event was attended by Dennis Snijders and Jim Dymock, who was one of the presenters.

Specialized in Quality – Since 1978 ANTICORROSION PROTECTIVE SYSTEMS Coatings & Linings Pipeline Rehabilitation Division Division NEWSLETTER www.aps-corporate.com NEWSLETTER June 2014 Issue 2 MARKETING NEWS - EVENTS AND EXHIBITIONS 1st Annual International Pipeline Coating Conference 2014 SUBSEA Asia 2014 June Celebrants The SUBSEA Asia 2014 Conference took place on the 11th of June 2014 while the SUBSEA Asia 2014 Exhibition opened its doors to Exhibitors and Trade Visitors from 12-13 of June. This event 2nd - Mohd Salleh Awang took place at Kuala Lumpur Convention Centre. This event 8th - Romeo Carpio was Asia’s most specialised 11th - Veron Lim The 1st Annual International Pipeline Coating Conference subsea engineering and leading sales platform for technology was launched on 28-29 May 2014 in Sofitel Abu Dhabi, 18th - Jim Morse UAE. This is the first event of its kind to be held in the suppliers looking to capitalise in Middle East. This has been attended by Graham Young this expanding sector. 26th - Steven Latimer and Dennis Snijders.

HSE Updates-Incentives and Rewards for Health & Safety APS has introduced the “Monthly Incentive and Rewards for Health & Safety” last May 2014. The launching of this HSE Incentive Scheme is to promote motivation for employees by modifying employee behavior through awareness and awards which helps to become more proactive in correcting potential hazards, unsafe conditions and behaviors resulting in strengthening our company safety culture. This implementation has been initiated by our HSE Manager, Afroz Aga.

HSE Award Committee consists of: Safety Manager l HSE Officerl Yard Supervisor l Yard Coordinator Below are the May HSE Awardees presented by Dean Wilson and Roger Pitt.

Best Safe Worker Best Unsafe Observation Best Near Miss Best Safety Suggestion Best Driver Mr. Inocencio Hernandez Mr. Rishad Khan Mr. Jerome Castillo Mr. Abilash Mr. Baiju Anandally

APS Corporate Identity - APS Strapline Dennis Snijders, Business Development Manager

COATINGS & LININGS DIVISION Let me take this opportunity to explain our corporate strapline, Specialized in Quality – Since PIPELINE REHABILITATION DIVISION 1978, in more detail. We have tried to capture in this single line, most of the core values that our Chairman in his welcomes message is referring to and basically answers the question what made APS the company that we are today and paves the road to realizing our corporate ambitious vision for the future. Let me dissect the strapline and explain the reasoning behind it. First of all we are using the word “Specialized”, which basically refers to the fact that we are Solvent Free Epoxy and providing special – customer specific solutions, are at the forefront of technology and dare to CHANNELINE Polyurethane Systems GRP Structural Lining Systems dive into opportunities and niche markets that others would not think of. The development CHANNELINE APS’s Coatings & Linings Division provides application of factory and site based specialist coatings and INTL linings to the oil, gas, water and power industries. For Large Diameter Circular Plural component hot applied solvent free epoxy and polyurethane coating is the modern, fast, e cient and reliable method for the factory application of high performance materials to critical and globalization of IFL is a perfect example of such an innovative technology. If we than look and Non-Circular pipelines. Also favoured as a eld rehabilitation and eld joint coating system because of its tough, damage resistant capabilities, pipe can be bedded and backlled almost immediately after completion Structural Pipeline Rehabilitation which is of vital importance to the timely completion of fabrication and rehabilitation projects. at “Quality”, we can proudly say that we strive to bring our products and services to the market

Features: Features using the best people, that engineer the best solutions and install the best products to the • Custom-Made Production in • Fast Drying – Backfill Possible Any Shape or Size Required Several Minutes After Application • Fully Structural Rehabilitation Solution • High Temperature Resistance highest standards. This particular value kept us standing tall, even in times when the economy • Maximizing Hydraulic Capacity (PU up to 85°C and Epoxy up to 150°C) • Excellent Corrosion Resistance • Excellent Chemical, Abrasion and Impact Resistance • Excellent Impact and Abrasion Resistance • Excellent Bonding to 3LPE/PP and FBE was retracting, as we never compromised on quality. The last part of our strapline, “Since 1978”, • Expected Service Life of Over 50 Years • Excellent Resistance to Cathodic Protection at Elevated Temperatures Applications: Applications signifies the enormous history and build-up experience and knowledge of APS that has brought • Sewer Main Pipelines • External Buried Pipelines • Sewer Overflow Pipelines • External Buried Pipeline Field Joints • Sewer Interceptor Pipelines • External Pipe Bends, Fittings, Valves • Sewer Inverts • External Pipework Exposed to Horizontal us in the here and now, 36 years later. The fact that many employees from all levels are already • Storm Water Drains Directional Drilling/Thrust Boring • Seawater Cooling Pipelines • External Pipework in Marine Conditions: • Large Diameter Culverts and Tunnels Risers/Conductors And J-tubes for many years with us, emphasizes the presence of mutual respect between colleagues and • Railway & Road Culverts

Specialized in Quality – Since 1978 our solid reputation in the market signals respect between APS employees and our customers. Specialized in Quality – Since 1978 In conclusion a strapline that captures the essence of our existence and the foundation for future growth, through expression of our core values. Following the above let me just sum up the core values of our company: • Customer Focus: Tailored solutions for customer needs • Entrepreneurial Spirit: Pushing the boundaries of the achievable • Innovation: Being at the forefront of technology • Quality: Dedication to quality services and products • Respect: Valuing our internal and external customers • Safety: Commitment to safety at work All of the above core values except for “Safety”, come directly back in our strapline. Indirectly though, also the core value of “Safety” can be found back, as we cannot maintain excellence on all levels of the supply chain without the commitment from all our employees to safety at work. Extra resources have been made available over the past years to guarantee safe working practices throughout all operational facilities with the APS group. Our HSE Manager, Afroz Aga, also initiated a Safety Incentive Program to stimulate safe working practices. You have read more about this initiative elsewhere in this newsletter. After this rather extensive explanation of our strapline I hope we can all identify ourselves with: Specialized in Quality – Since 1978 !

Specialized in Quality – Since 1978 Specialized in Quality – Since 1978 ANTICORROSION PROTECTIVE SYSTEMS Coatings & Linings Pipeline Rehabilitation Division Division www.aps-corporate.com NEWSLETTER June 2014 Issue 2 NEWSLETTER HR Corner from Dr Terry Galvin Another month gone by already? Where does time go to? Within the HR Function, things have certainly been busy. On the recruitment front, arrangements have been finalised for the shortlist assessment of candidates for the role of COO, Malaysia, and the challenging task of finding Graham Young’s ultimate successor has begun. In addition, recruitment has now commenced to strengthen the capability of the Pipeline Rehabilitation Division within the context of a large influx of work and some ambitious plans for the future. Other tasks have included putting the finishing touches to a new employee induction programme; the systematic introduction of job descriptions; and compiling a competency framework which will guide many HR processes in the future. All exciting and interesting stuff! Reflecting upon the last month, that old saying of, “Time flies when you’re having fun” springs to mind. But hang on! There are the same number of hours in every working day, so how can some days, weeks and months seem shorter than others?In August 2012, Philip Gable and Bryan Pool, two Psychologists from the University of Alabama, carried out a series of experiments to clarify matters. Their studies revealed that not all positive, fun experiences lead to time passing quickly. Rather, their conclusion was that time flies only when you are pursuing specific goals. Interestingly, the current task of preparing job descriptions for all employees was prompted largelyby the dissatisfaction expressed by many concerning uncertainty regarding the aims and objectives of their roles. With new, up to date job descriptions, a sense of direction and the opportunity to pursue specific goals will surely be restored. At a broader level, more focus on our collective goals will come from the initiative currently under way to reacquaint all with the APS core values which have been so fundamental in guiding the success of the business over the last 36 years. One of the more interesting recent aspects of my own goal orientated work activities over the last month has been undertaking preparatory activities for our forthcoming move to the Zetas facility in DIP. I feel this relocation will represent something of a new beginning for APS. It will present an excellent opportunity for us all to become more focused upon achieving individual and corporate goals, ensuring a reinvigoration and re-energising of the company in its pursuit and deliveryof excellence.And our rewards? Well, in addition to securing greater job satisfaction and experiencing all the joys of being members of a winning team, it seems our working days will certainly become much shorter!

APS Corporate Identity - APS Website Employee Spotlight We are in the process of setting up a uniform corporate identity for the APS Group. Apart from letterheads, business cards, brochures, AdiziChe Mat exhibition backgrounds and other communication tools, we also Logistics Manager of APS Malaysia have been working hard to launch a new corporate website under the domain name www.aps-corporate.com, with the intention to AdiziChe Mat, 50, is a Logistics Manager of APS Malaysia. Prior incorporate the APS Malaysia and APS websites. to his current role, he has served Marulee (M) SdnBhd, a wholly Catch a glimpse of the new website! owned Japanese company specialized in making porcelain figurine since 1986 after he graduated from Nagoya Business School, Japan. He held positions as Director and General Manager at Marulee. His career in porcelain manufacturing industry spanned for 24 years. Adizi was born and raised in Kelantan, a state in northeast Malaysia. He is a father to six beautiful children and he is best described as a soft-spoken family man—not just to his family, but to APSM family too. His “fatherly” character always makes us feel comfortable talking to him despite his experience and seniority at office. Adizi is also a motorbike enthusiast who loves riding and for him, motorbike riding is not just his hobby and passion, it is a powerful “networking” tool. From this activity, het gets to know many ranks of people locally and internationally not to mention high profile figures both from government and corporate sector.

New Faces in APS Malaysia

ASYRAF AZRAN MUHAMAD ARSHI SHABANI Pipeline Engineer MUHAMAD BAKHTIAR Joined date: 19th May 2014 Jr. Mechanical / Piping Engineer Joined date: 12th May 2014

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Specialized in Quality – Since 1978