1
2017: THE EVOLUTIONARY GROWTH
DEAR STAKEHOLDERS
“2017 HAS BEEN A VERY EVENTFUL YEAR FOR OUR GROUP, WITH MAJOR MILESTONES REACHED, EXTRAORDINARY BUSINESS RESULTS DELIVERED AND NEW DEVELOPMENT OPPORTUNITIES OPENING UP FOR OUR PERSONNEL. THIS PATH HAS LED US TO BECOME THE GROUP WE ARE TODAY: SOLID, RELIABLE AND RESPONSIBLE. MAIRE TECNIMONT LISTED ON THE MILAN STOCK EXCHANGE TEN YEARS AGO. THIS MAJOR STEP BROUGHT A DEEPER AWARENESS OF THE IMPACTS OF OUR OPERATIONS ON THE BROAD SCOPE OF OUTSIDE STAKEHOLDERS. WE ARE POSITIVELY LOOKING TOWARDS THE FUTURE, AND WE WANT TO ACTIVELY PLAY OUR ROLE IN THE ENERGY TRANSITION.”
Fabrizio Di Amato Maire Tecnimont Chairman and Majority Shareholder
“THE MAIRE TECNIMONT GROUP HAS GROWN STEADILY OVER RECENT YEARS BOTH IN SIZE AND IN TERMS OF FINANCIAL RESULTS. SUCH EXTRAORDINARY DEVELOPMENT IN AN EVER-CHANGING INTERNATIONAL ENVIRONMENT AND A CHALLENGING MARKET DEMONSTRATES THE CAPABILITY OF OUR ORGANIZATION TO TURN UNCERTAINTIES INTO OPPORTUNITIES. WE ARE CLOSELY TIED TO THE DEMAND FOR PETROCHEMICAL PRODUCTS AND FERTILIZERS, WHICH IN TURN DEPENDS ON DEMOGRAPHIC AND DEVELOPMENTAL FACTORS, IN ADDITION TO INDUSTRIALIZATION. AS A GENERAL CONTRACTOR WITH A HIGHLY TECHNOLOGICAL DNA, WE ARE READY TO TAP INTO NEW MARKET TRENDS AND ARE DEVELOPING OUR EXPERTISE IN BIOCHEMICALS AND BIOPLASTICS.”
Pierroberto Folgiero Maire Tecnimont Group CEO and Managing Director
MISSION
Our mission is to be a world-class, technology-driven engineering, procurement and construction contractor. We want to make competence, entrepreneurship and adaptiveness our key success factors.
VISION
We focus our industrial vision on distinctive competences and technologies in the hydrocarbon processing sector namely petrochemicals, fertilizers and oil&gas refining industries, working to gradually get ready to a new paradigm of growth made of renewable energies and green chemistry. We cover the entire value chain from end to end and we offer a variable mix of services with high flexibility. 5
2017
50
40
OPERATING COMPANIES
COUNTRIES
FINANCIALS
WHERE MAIRE TECNIMONT OPERATES
€3.5 bln
€7.2 bln
SUPPLY CHAIN
PRESENCE
GROUP HIGHLIGHTS
€2.2 bln
18,500+ 50%
REVENUES
TOT GOOD AND SERVICES
BACKLOG
VENDORS
€4.3 bln ORDER INTAKE
GOODS AND SERVICES
*
PURCHASED LOCALLY
ORDERED IN THE YEAR
* Referred to 8 projects that best represent the business of the Group both in terms of progress and as a type of product and technology.
6
PEOPLE TRAINING
+
5,443 EMPLOYEES
HSE
PROFESSIONALS
IN ELECTRICAL AND INSTRUMENTATION
OUT OF WHICH
2,732
70
ENGINEERING DEGREE
NATIONALITIES
2.4 mln
88 mln
HRS OF TRAINING
MAN-HOURS
0.046
0.150
WORKED ON SITE
(INCL. HSE AND SUB-CONTRACTORS)
TRIR**
LTIF ON SITE**
(TOTAL RECORDABLE INJURY RATE)
(LOST TIME INJURY FREQ.)
TECHNOLOGY
~3,000
1,200 PATENTS
5
93
CENTERS
PROJECTS
INNOVATION
** Referred to Technology, Engineering and Construction Business Unit.
7
INNOVATION
BUSINESS STRUCTURE
Listed on the Milan Stock Exchange since 2007 and rooted in well-recognized Italian engineering brands, the Group is among the top-ranking worldwide market players.
8
INDUSTRY HYDROCARBON
NON-HYDROCARBON
NEW BUSINESS
RENEWABLES & GREEN
PROJECT DEVELOPMENT
PETROCHEMICALS
OIL&GAS REFINING
FERTILIZERS
POWER
CONTRACTORS BUSINESS MODEL OUR THREE SOULS
TECHNOLOGISTS
ENTREPRENEURS
WE ARE A LEADING PROVIDER OF ENGINEERING & CONSTRUCTION, TECHNOLOGY & LICENSING, AND ENERGY BUSINESS DEVELOPMENT & VENTURES WORLDWIDE, CONTRIBUTING TO THE TRANSFORMATION OF NATURAL RESOURCES INTO INNOVATIVE PRODUCTS FOR A MYRIAD OF EVERYDAY APPLICATIONS.
WE OFFER A BROAD SCOPE OF SERVICES ON AN INDIVIDUAL OR COMBINED BASIS, COMPRISING LICENSING, ENGINEERING, PROCUREMENT OF MATERIALS AND EQUIPMENT AND CONSTRUCTION SUPERVISION, INCLUDING OUR PROJECT MANAGEMENT EXPERTISE. We have built relevant references for full EPC turnkey complex projects, featuring a flexible and consistent model that maximizes local content in every part of the world. Alongside business excellence, our Group focuses on the various facets of sustainability to ensure long-lasting growth, sharing value with and targeting results for our stakeholders.
Our technological roots go back to the pioneers of the hydrocarbon chemical engineering industry. We provide customers with proprietary and third-party technologies for the design and manufacture of a wide range of processing plants.
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Our execution strategy is based on a world-class health and safety performance, significantly ahead of the industry benchmark. Maire Tecnimont also has expertise in the design and engineering of power generation plants and major public works. We are equipped to deliver large-scale renewable energy plants generating power from wind and solar resources. We also leverage a distinctive technology-driven model for project development, enabling us to embrace early involvement in clients’ investment initiatives.
RESPONSIVENESS TO MARKET DISCONTINUITIES The next future of the Group will be positively characterized by the execution of the record backlog thanks to our distinctive focus on downstream. It is giving very good visibility on the business dynamics for the next 2/3 years in an industry which, conversely, is experiencing a phase of discontinuity.
Leveraging our distinctive technology driven business, we pursue a project development approach through an early involvement in clients’ investment initiatives, in order to contribute not only technical expertise but also financing schemes. Commercially we are leveraging our position of excellence in petchem and fertilizers sector to assist our clients in brownfield revamping initiatives.
WE ARE FOCUSED ON DELIVER RESULTS WITH MAXIMUM OPERATIONAL AND FINANCIAL DISCIPLINE. WE WILL CONTINUE TO FOSTER OUR EXPANSION IN GEOGRAPHIES DIFFERENT FROM THE HISTORICAL ONES SUCH AS OMAN, MALAYSIA AND INDONESIA; WE WILL STRENGTHEN OURSELVES IN SOUTH AMERICA, WHILE UNITED STATES DOWNSTREAM DEVELOPMENTS REMAIN ON OUR BUSINESS SCOPE.
We will continue to invest on technology and on our best-in-class services engineering. We will develop Siluria potential in the olefins business contributing to its industrialization process, while we will explore the adjacencies of our urea/ fertilizers technological leadership.
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Simultaneously we will continue to enhance our execution capabilities in larger and more complex “integrated projects” in order to accommodate better and better increasing market demand for multidisciplinary efforts. We are progressing fast track on our own digital transformation, highly impacting business operations, processes and organization. OUR VISION ON RENEWABLE ENERGIES REMAINS POSITIVE REGARDING VERY LARGE PLANTS IN NEW GEOGRAPHIES; WE CONTINUE TO WORK IN ORDER TO GRADUALLY GET READY TO A NEW PARADIGM OF GROWTH IN THE DIRECTION OF GREEN CHEMISTRY AND BIO CHEMICALS.
DEDICATED REVAMPING ENGINEERING INITIATIVES
NEW WAY OF ORIGINATING BUSINESS THROUGH EARLY INVOLVEMENT IN INVESTMENT INITIATIVES
- SILURIA TECHNOLOGIES - H2S CRACKING - TECHNOLOGIES ADJACENT TO UREA (ANNA) - SPECIALITIES
- OMAN - MALAYSIA - INDONESIA
- REINFORCING COMPETENCES TO TACKLE INCREASING SCALE AND COMPLEXITY OF PLANTS
- PHILIPPINES - AMERICAS
- DIGITALIZATION
- WIND, SOLAR - BIO-CHEMICALS - RECYCLING
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OUR PRESENCE IN THE WORLD
40
COUNTRIES
50
COMPANIES
~1,500 PROJECTS
Headquarters Main offices and engineering centers Subsidiaries, branch and representative offices Main projects* * Referred to ongoing projects above €1 mln value, excluding Licensing, Maintenance and Intercompany
12
13
GLOBAL AND TECHNOLOGICAL LEADERSHIP
PETROCHEMICALS
WELL ROOTED TECHNOLOGY ORIENTATION: MARKET LEADER (#1) FOR INSTALLED CAPACITY
30% 40%
FERTILIZERS
54%
MARKET SHARE IN
LICENSING UREA PLANTS TECHNOLOGY (#1 WORLDWIDE)*
MARKET SHARE IN
POLYOLEFIN PLANTS
34%
MARKET SHARE IN
LDPE PLANTS
MARKET SHARE IN
LICENSING UREA GRANULATION TECHNOLOGY (#2 WORLDWIDE)*
* Data are based on corporate analysis
SINCE 1970
SINCE 1924 MORE THAN
180
POLYETHYLENE AND POLYPROPYLENE PLANTS
172
AMMONIA AND UREA PLANTS COMPLETED
COMPLETED
1,200 14
INDIVIDUAL PATENTS
OIL&GAS REFINING
WELL RECOGNIZED LEADERSHIP IN LICENSING HYDROGEN TECHNOLOGY AND IN LICENSING SULPHUR RECOVERY AND TAIL GAS TREATMENT TECHNOLOGY
WORLD CLASS TRACK RECORD IN LARGE GAS TREATMENT PLANTS AND REFINERY PROCESS UNITS
SINCE 1971 MORE THAN
230
HYDROGEN AND SULPHUR RECOVERY UNIT PROJECTS COMPLETED
STRONG COMMITMENT TO TECHNOLOGY DEVELOPMENT
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TECHNOLOGY DEVELOPMENT AND R&D
IN THE CURRENT HIGHLY COMPETITIVE O&G SECTOR, INNOVATION AND SUSTAINABLE DEVELOPMENT ARE CRUCIAL FOR THE CREATION OF VALUE FOR OUR ORGANIZATION, FOR OUR CLIENTS AND FOR OUR COMMUNITIES. Combining diverse talents and investing in human capital and R&D have been part of our DNA for more than 50 years. Innovation is the conversion of new concepts and insights into successful market applications. It can only be achieved by closely linking the identification of market opportunities with technical expertise development.
R&D projects follow the most advanced Project Management techniques within a new innovation strategy featuring a more efficient allocation of resources (human, financial, technological). The Maire Tecnimont Group owns and manages valuable proprietary technologies and intellectual property pertaining to oil&gas refining, chemical and petrochemical, fertilizer and power sectors. Technological innovation and engineering improvement investment have increased in the 2015-2017 period and is likely to grow further over the coming years. Green and sustainable and environmental friendly technologies have top priority.
As innovation is also one of the Group’s main competitive advantages, we continuously focus on R&D and our portfolio of proprietary innovative technologies in order to strengthen our position as a technology provider to the refining, power, oil & gas and petrochemical industries. Tecnimont actively scouts innovative technologies through a dedicated vehicle, MET Gas.
EFFORTS ARE PARTICULARLY FOCUSED ON: DEVELOPING INNOVATIVE END-PRODUCTS
PRODUCING EXISTING PRODUCTS FROM NEW / DIFFERENT RAW MATERIALS
e.g. controlled release fertilizers or micro nutrient rich fertilizers
e.g. the production of Ethylene and Propylene from Natural Gas and Acid Gas purification technology to obtain pure methane from Natural Gas, rich in acidic components
CUTTING PLANT INVESTMENT AND OPERATIONAL COSTS
REDUCING THE IMPACT OF PETROLEUM REFINERY, CHEMICAL AND PETROCHEMICAL PLANTS ON THE ENVIRONMENT
e.g. “Ultra-Low energy urea plant” requiring 40% less steam for the production of urea, or the H2S cracking technology that cuts initial outlay by up to 30%, as well operating costs by up to 30%
e.g. SO2 emission 1/10 reduction (compared to Best Available Technique “BAT“) with the new generation of Sulphur Recovery Unit, zero ammonia emission technology for urea plants and the “envirocare“ scrubbing technology that significantly cuts (5 times) the impact of urea dust emissions
16
COLLABORATION WITH UNIVERSITIES AND RESEARCH CENTERS
THE MAIRE TECNIMONT GROUP HAS A LONG HISTORY OF COLLABORATION WITH MAJOR UNIVERSITIES, TECHNOLOGY SUPPLIERS, RESEARCH CENTERS AND COMMERCIAL PARTNERS.
UNIVERSITIES AND RESEARCH CENTERS ITALIAN UNIVERSITIES
Over recent years, the Maire Tecnimont Group has stepped up its collaboration with top Italian and foreign universities, developing research projects and exchanging views and ideas and thus creating a strong bridge between the academic and industrial world.
EUROPEAN UNIVERSITIES
Politecnico di Milano University of Rome “La Sapienza” Campus Bio-Medico University of Rome University of Salerno
Maire Tecnimont’s long-standing collaboration with the Politecnico di Milano has been further strengthened through research project partnerships, in addition to teaching and the organization of seminars.
University of L’Aquila
University of Leuven Technical University of Eindhoven Ecole Des Mines in Paris
University of Bologna Politecnico di Torino
The collaboration with the Campus Bio-Medico University of Rome, in force since 2011 with the creation of the “University & Private Enterprise Committee”, specifically targets the defining/updating of course training programs and technological research/development.
INTERNATIONAL RESEARCH INSTITUTIONS
Tecnalia
BUSINESS PARTNERSHIPS
Protomation Envirocare
Intertek Laboratories
17
Holland Novochem
LICENSING AND PORTFOLIO The Maire Tecnimont Group owns more than 1,200 patents, most of which in the area of urea and fertilizers, in addition to other areas.
The following table lists the amount of families and equivalents. A family has different equivalents (same invention but filed in a different country).
NRs. OF PATENTS OF THE GROUP
109
1,200
FAMILY BASED
EQUIVALENTS
INNOVATION AND R&D AS INNOVATION IS ALSO ONE OF THE PRIME AREAS OF COMPETITIVE ADVANTAGE FOR THE GROUP, WE CONTINUOUSLY STRENGTHEN R&D AND OUR PORTFOLIO OF PROPRIETARY INNOVATIVE TECHNOLOGIES IN ORDER TO BOOST OUR POSITION AS A TECHNOLOGY PROVIDER TO THE REFINING, POWER, OIL & GAS AND PETROCHEMICAL INDUSTRIES.
We deliver a number of innovation projects every year, also thanks to the Maire Tecnimont Innovation Centre (MTIC), and actively cooperate with leading research centers and industrial partners to continuously improve the overall performance of our technologies.
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GAS TO PROPYLENE TECHNOLOGY
THE MAIRE TECNIMONT GROUP IN 2016 ACQUIRED A MINORITY HOLDING IN SILURIA TECHNOLOGIES INC. Siluria is a technology company based in San Francisco which has developed innovative industrial technologies for the production of chemicals and fuel made from natural gas. The technologies are based on an innovative and proprietary “OCM” (Oxidative Coupling of Methane) process for the direct conversion of methane into ethylene and propylene. With this investment, the Maire Tecnimont Group becomes Siluria’s exclusive partner for the development, commercialization and licensing of this innovative technology.
The Maire Tecnimont Group and Siluria have combined their respective technologies and expertise to develop and commercialize the GAS TO PROPYLENE Technology, a unique and paradigm-breaking process to directly convert gases rich in methane into one of the most important base chemical products - Propylene. For decades, propylene has been produced through a high-energy and capital intense process. Our GAS TO PROPYLENE Technology makes the production of propylene possible via an innovative process at far higher energy efficiency. This means lower temperatures, the reduced consumption of fossil fuels and ultimately lower greenhouse gases.
INNOVATION AND R&D
5
INNOVATION CENTERS
~39
PEOPLE INVOLVED IN R&D AS FULL TIME EQUIVALENT
19
93
INNOVATION PROJECTS
17
PARTNERSHIPS FOR TECHNOLOGICAL DEVELOPMENT
GOVERNANCE & ORGANIZATION
The corporate governance system of Maire Tecnimont essentially focuses on creating stakeholder value over the medium-long term, conscious of the societal impact of company and Group activities and the underlying need to consider the interests of all stakeholders adequately.
20
1
2
3
6
4
7
5
8
10
9
11
12
BOARD OF DIRECTORS* 1 FABRIZIO DI AMATO CHAIRMAN, EXECUTIVE
5 PATRIZIA RIVA DIRECTOR, INDEPENDENT
2 PIERROBERTO FOLGIERO CHIEF EXECUTIVE OFFICER, EXECUTIVE
6 GABRIELLA CHERSICLA DIRECTOR, INDEPENDENT CONTROL RISK AND SUSTAINABILITY COMMITEE CHAIRMAN, RELATED-PARTY COMMITEE CHAIRMAN
3 LUIGI ALFIERI DIRECTOR, NON EXECUTIVE 4 STEFANO FIORINI DIRECTOR, NON EXECUTIVE
8 ANDREA PELLEGRINI DIRECTOR, INDEPENDENT REMUNERATION COMMITTEE CHAIRMAN 9 VITTORIA GIUSTINIANI DIRECTOR, INDEPENDENT
7 MAURIZIA SQUINZI DIRECTOR, INDEPENDENT * As of 27 April 2016
BOARD OF STATUTORY AUDITORS* 10 FRANCESCO FALLACARA CHAIRMAN
11 GIORGIO LOLI STANDING STATUTORY AUDITOR
21
12 ANTONIA DI BELLA STANDING STATUTORY AUDITOR
1
3
2
4
7
9
8
11
5
12
15
6
10
13
14
17
16
GROUP MANAGEMENT TEAM 1 FABRIZIO DI AMATO CHAIRMAN 2 PIERROBERTO FOLGIERO GROUP CHIEF EXECUTIVE OFFICER
7 GIANNI BARDAZZI GROUP SPECIAL INITIATIVES AND REGIONS COORDINATION SENIOR VICE PRESIDENT, RUSSIA AND CASPIAN REGION VICE PRESIDENT
3 ALESSANDRO BERNINI GROUP CHIEF FINANCIAL OFFICER
8 FABIO FAGIOLI GROUP GENERAL COUNSEL
4 FRANCO GHIRINGHELLI HUMAN RESOURCES, ORGANIZATION AND ICT SENIOR VICE PRESIDENT
9 ENRICO ROLANDELLI TECNIMONT ENGINEERING & PROJECTS VICE PRESIDENT
5 GIOVANNI SALE GROUP CORPORATE STRATEGY SENIOR VICE PRESIDENT, AMERICAS REGION VICE PRESIDENT 6 PEJMAN DJAVDAN TECHNOLOGY PRESIDENT, STAMICARBON MANAGING DIRECTOR
10 FRANCO BROGGI TECNIMONT CONSTRUCTION & SUBCONTRACTS CONSTRUCTION VICE PRESIDENT 11 MARIO RUZZA TECNIMONT PRIVATE LIMITED CHAIRMAN AND MANAGING DIRECTOR
22
12 PAOLO MONDO GROUP PROCUREMENT VICE PRESIDENT 13 ANDREA VENA KT COMMERCIAL VICE PRESIDENT 14 OSCAR SPALMACH KT PROJECTS EXECUTION VICE PRESIDENT 15 CARMINE BIELLO NEOSIA MANAGING DIRECTOR RENEWABLES 16 SALVATORE ESPOSITO NEOSIA MANAGING DIRECTOR INFRASTRUCTURES 17 GAETANO IAQUANIELLO KT INNOVATION STRATEGY VICE PRESIDENT
18
20
19
21
22
24
27
25
28
23
26
29
30
18 MASSIMO SICARI MIDDLE EAST REGION VICE PRESIDENT
23 STEPHEN ZWART STAMICARBON LICENSING, SALES & SERVICE VICE PRESIDENT
28 CARLO NICOLAIS HEAD OF INSTITUTIONAL RELATIONS AND COMMUNICATION
19 DAVIDE PELIZZOLA SUB-SAHARAN AFRICA REGION VICE PRESIDENT
24 ALDO ALESSANDRO BERTOZZI KT CONSTRUCTION & SUBCONTRACTS VICE PRESIDENT
20 FABIO FRITELLI GROUP FINANCE VICE PRESIDENT
25 GIUSEPPE GUADAGNO GROUP INITIATIVES VICE PRESIDENT
29 SIMONA DOLCE HEAD OF GROUP CORPORATE AFFAIRS, GOVERNANCE & COMPLIANCE
21 PONZIANO PRANDI NORTH AFRICA REGION VICE PRESIDENT
26 MILIND V. BARIDE GROUP PROJECT CONTROL & CONTRACT MANAGEMENT VICE PRESIDENT, INDIA REGION VICE PRESIDENT
22 INHO JEE SOUTH EAST ASIA AND AUSTRALIAN REGION VICE PRESIDENT
27 MICHELE COLOZZI KT TECHNOLOGY DEVELOPMENT AND LICENSING VICE PRESIDENT
23
30 DAMIANO D’ALESSANDRO GROUP HSE, PROJECT QUALITY AND RISK MANAGEMENT HEAD OF DEPARTMENT
FINANCIAL HIGHLIGHTS
REVENUES
BACKLOG
8000
3,524
4,000 3,500
2,435
3,000 2,500 2,000
6,893
6,516
6000 5000
1,670
3000 2000
1,000
1000
500 0
0 2015
2016
2017
in €MN
EBITDA
31.12.2015
31.12.2016
250
150
131
127
193
160
120
80 60 40
50
20
0
2015
85
100
100
in €MN
31.12.2017
CONSOLIDATED NET INCOME
140
200
7,229
4000
1,500
in €MN
7000
2016
2017
24
0
in €MN
44
2015
2016
2017
REVENUES breakdown by sector
95%
5%
TECHNOLOGY, ENGINEERING & CONSTRUCTION
INFRASTRUCTURE & CIVIL ENGINEERING
BACKLOG breakdown by geographic area
63%
20%
7%
8%
2%
EUROPE*
MIDDLE EAST
ASIA
AFRICA
OTHERS
* Out of which the vast majority pertains to Russian Federation
25
SHAREHOLDER NOTEBOOK
In 2017, the capitalization of the Issuer increased by 67.4% from Euro 788,260,950 on December 31, 2016 to Euro 1,319,267,745 on December 31, 2017.
- The announcement, at the beginning of June, of the contract signed with JSC NIPIgaspererabotka for the No. 3 package of the Amursky gas treatment plant worth Euro 3.9 billion and the subsequent increase, at the end of July, of management’s year-end guidance, resulting in analysts further revising upwards their recommendations and driving the share price higher;
The share performance in 2017 was significantly influenced by: - The announcement, in March 2017, of strong FY2016 results, and the overall increase of the analysts’ recommendations and target prices;
- A contraction, in the second part of the year, principally due to profittaking following a doubling of the share price in the initial 8 months. - The divestment by Ardeco of a 5% equity stake, equal to 50% of its holding. The average daily trading volume in 2017 was 1,441,635 shares, and the average price was Euro 3.91. The graph highlights Maire Tecnimont’s 53.7% outperformance vs. the FTSE Italia MIB (composed of the 40 largest market cap companies).
MAIRE TECNIMONT S.p.A. SHARE CAPITAL (at 31 December 2017) EXPRESSED IN No. OF SHARES
EXPRESSED IN No. OF VOTING RIGHTS
SHARE CAPITAL
€19,689,550
€19,689,550
TOTAL
305,527,500
473,192,634
FLOATING SHARE CAPITAL
137,862,366
122,307,366
45.123%
25.847%
FLOATING SHARE CAPITAL %
MILAN STOCK EXCHANGE ORDINARY SHARE PRICE (€) 01/01 - 31/12/2017 MAXIMUM (SEPTEMBER 12, 2017)
5.40
MINIMUM (FEBRUARY 27, 2017)
2.518
AVERAGE
3.91
PERIOD-END (DECEMBER 29, 2017)
4.318
STOCK MARKET CAPITALIZATION (AT DECEMBER 31, 2017) 26
1,319,267,745
MAIRE TECNIMONT 2017 SHARE PERFORMANCE AGAINST THE FTSE MIB
250
200
150
100
50
Maire Tecnimont
FTSE MIB Index
0
DEC 16
JAN 17
FEB 17
MAR 17
APR 17
27
MAY 17
JUN 17
JUL 17
AUG 17
SEP 17
OCT 17
NOV 17
DEC 17
EDITED BY Maire Tecnimont Institutional Relations & Communication Department GRAPHIC DESIGN Visualmade PHOTOS Maire Tecnimont Group Image Bank PRINTING Gam Edit June 2018 Special thanks to all those who contributed to the drafting of this report.
www.mairetecnimont.com
SUSTAINABILITY MEANS ACTING RESPONSIBLY EACH AND EVERY DAY
SUSTAINABILITY STRATEGY
LONG-TERM VALUE CREATION IS ONLY POSSIBLE THROUGH AN AWARENESS AND SENSITIVITY TO THE IMPACTS OF OUR BUSINESS AT ALL LEVELS. A broad sustainability strategy, but concentrated on clear objectives, reduces our exposure to external stresses and makes us more resilient and capable of preserving value for our stakeholders, maximizing at the same time the possibility to tap into opportunities emerging from the ongoing energy transition. As a compass for our sustainability strategy, the Sustainable Development Goals (SDGs) help us to stay focused to our environmental, social and governance (ESG) efforts, contributing to a more balanced and organic development of how we do business across all spheres. Technical excellence, global footprint, flexibility in the range of services offered, accountable project-based risk-management, an asset-light model and financial discipline are among the pillars of the Group business strategy to build long-term economic growth. In this perspective, the quality of human capital is a pivotal and differentiating factor for Maire Tecnimont’s economic value creation.
«A broad sustainability strategy make us more resilient and capable of preserving value for our stakeholders.»
MORE FAR-REACHING STEP IN MAIRE TECNIMONT’S SUSTAINABILITY STRATEGY CONCERNS THE ENHANCEMENT OF LOCAL CONTENT, WHEREVER WE WORK, WHENEVER POSSIBLE. AS A GENERAL CONTRACTOR FOR LARGE INDUSTRIAL PLANTS, THE POTENTIAL OF OUR BUSINESS DECISIONS, THE IMPACTS ON OUR SUPPLY CHAIN AND OUR HIGH-LEVEL EXPERTISE ALLOW US TO PLAY A SIGNIFICANT ROLE IN THE DEVELOPMENT OF THE TERRITORIES IN WHICH WE OPERATE. The Group sustainability vision stems from its capacity to become a “processing engineer” for the new forms of energy and raw materials for manufacturing emerging globally.
GROUP COMMITMENT TO THE SDGs AND UN GLOBAL COMPACT
SINCE 2011, THE MAIRE TECNIMONT GROUP PLEDGED ITS SUPPORT TO THE TEN PRINCIPLES BEHIND THE UN GLOBAL COMPACT, THE UN’S LARGEST CORPORATE CITIZENSHIP AND SUSTAINABILITY INITIATIVE AND BECAME ONE OF ITS MORE THAN 12,000 PARTICIPANTS.
The Maire Tecnimont Group also welcomes and supports the Sustainable Development Goals and their focus on achieving a more sustainable world. The Group is aware of the fundamental contribution that each company can make and has incorporated the values and principles of social and environmental responsibility into its business model.
It is a clear commitment to public accountability and transparency that we renew every year through the Communication on Progress document, which summarises our actions to embed the UN principles into our everyday work.
The Group, taking into consideration its business activities and a strong commitment to concretely support the achievement of the SDGs at a global level, has identified the goals to which it can contribute most through extensive internal engagement, involving all the significant functions of each Group company.
3
With the final approval of Group Top Management, Maire Tecnimont then clearly defined its Sustainability Vision and, accordingly, its specific commitment and goals - which are closely linked with the business strategy - for each SDG as shown in the following page.
OUR SUSTAINABLE DEVELOPMENT GOALS —— TO ENABLE THE WORLD TO ACHIEVE FOOD SECURITY —— TO IMPROVE SUSTAINABLE AGRICULTURE BY INCREASING CROP YIELDS AND IMPROVING THE USE OF SUSTAINABLE MACRO- AND MICRO-NUTRIENTS
—— TO PROTECT WORKERS’ SAFETY —— TO PROMOTE WORKERS’ HEALTH —— TO PROMOTE A MORE SUSTAINABLE SUPPLY CHAIN
—— TO STRENGTHEN THE KNOWLEDGE AND SKILLS OF THE ENTIRE WORKFORCE
—— TO PROMOTE EQUAL EMPLOYMENT OPPORTUNITIES FOR MEN AND WOMEN
—— TO STRENGTHEN RENEWABLE ENERGY SECTOR PRESENCE
—— TO PROMOTE THE PROTECTION OF HUMAN AND WORKERS’ RIGHTS —— TO CONTRIBUTE TO THE DEVELOPMENT AND ECONOMIC GROWTH OF THE COUNTRIES WHERE THE COMPANY OPERATES
—— TO PROMOTE R&D ACTIVITIES PURSUING TECHNOLOGICAL INNOVATION
—— TO PROMOTE THE DEVELOPMENT OF RESILIENT AND SUSTAINABLE INFRASTRUCTURE, ALSO WITH A LONG-TERM OUTLOOK
—— TO APPLY INTERNATIONAL GUIDELINES AND BAT TO REDUCE THE ENVIRONMENTAL IMPACTS OF PRODUCTION (BAT JUSTIFICATION REPORT WORK INSTRUCTION AVAILABLE AS TCM GUIDELINE)
—— TO REDUCE THE CARBON FOOTPRINT OF THE GROUP AND ITS CLIENTS
—— TO PROTECT THE ECOSYSTEMS AFFECTED BY CONSTRUCTION SITE OPERATIONS
—— TO STEP UP INVOLVEMENT IN WORKING TABLES ON SUSTAINABILITY ISSUES —— TO PROMOTE AND CONSOLIDATE UNIVERSITY PARTNERSHIPS —— TO PROMOTE AND CONSOLIDATE INNOVATION PARTNERSHIPS
MANAGING RISKS AND OPPORTUNITIES
THE RISK MANAGEMENT PROCESS IS BASED ON GUIDELINES AND STANDARDS DEFINED AT A MAIRE TECNIMONT AND SUBSIDIARY LEVEL IN ORDER TO PROVIDE A TRACEABLE AND TRANSPARENT WAY OF ANALYZING AND CONTROLLING RISKS AND OPPORTUNITIES IN ACCORDANCE WITH THE STRATEGIC OBJECTIVES.
At corporate level, the risks are assessed and reviewed on a quarterly basis for comprehensive control of the enterprise risks, providing therefore a reasonable assurance that corporate objectives can be achieved. At project level, in order to ensure the analysis and monitoring of risks throughout all the phases of the project life cycle and to prioritize the level of focus/attention on the subsequent phases of Tendering and Execution, a Macro Risk Rating is calculated from the pre-tendering phase for every commercial initiative.
The process allows the monitoring and controlling of the crossdepartmental risks affecting the various corporate functions of the Group (Enterprise Risks) and the operational risks, applied to the commercial phase (Pre-tendering) and bid phase (Tendering) and during the implementation (Execution) of projects.
During the tendering and execution phase, a specific risk analysis is performed, evaluating the probability of occurrence and the impact, the gross and the residual risk value, and a specific Mitigation Control Plan.
5
The risk analysis is then regularly updated, depending on the macro risk rating of the project, in order to monitor project risk evolution. The evolution of the risk portfolio is regularly reported to Maire Tecnimont’s Control and Risk Committee. CONTINUOUS INTERNAL COMMUNICATION AND TRAINING ACTIVITIES ARE PLANNED AND ROLLED OUT AS PART OF THE OPERATING TOOLS AND REPORTING OF THE ENTERPRISE RISK MANAGEMENT SYSTEM, IN VIEW OF THE MAJOR COMMITMENT ASSIGNED BY MAIRE TECNIMONT TOP MANAGEMENT.
MATERIALITY ANALYSIS
MATERIALITY IS ABOUT IDENTIFYING THE KEY TOPICS FOR MAIRE TECNIMONT AND ITS STAKEHOLDERS, WHICH CAN ACT AS MANAGEMENT LEVERS TO CREATE LONG-TERM VALUE TO SUPPORT THE GROUP’S STRATEGY.
Materiality analysis is a pillar of our sustainability strategy, is consistent with the core business and meets stakeholder expectations. For this purpose, the Group has instigated a process meeting the requirements of the leading sustainability reporting standards, the GRI Standards, with the goal of identifying the most relevant topics for the company and its stakeholders.
The results of the assessment identify the stakeholder relations to be strengthened, our business priorities and the aspects on which to focus sustainability disclosure, as reflecting the organization’s most significant economic, environmental and social impacts. The process is shown hereafter.
THE PROCESS
IDENTIFICATION OF RELEVANT TOPICS
ASSESSMENT OF RELEVANT TOPICS
1
3 Research and analysis of internal (existing disclosure, internal policies, procedures, etc.) and external sources (review of standard setters’ publications and peer/ competitor benchmark)
6 Meetings with Group representatives for the assessment of the importance of each aspect of the topic list identified in the previous phase
4
2
Aggregation of the assessment results provided by each Group representative, through a weighting system based on each sister company’s revenues and full time equivalent employees
Identification and validation of a topic list with 29 potentially relevant aspects
5 Development of the materiality matrix
6
VALIDATION AND REVIEW
Validation of the materiality matrix and topics identified by the Group CEO
7 Annually, at the start of the reporting period, review of the topics identified and of the materiality analysis performed
MATERIALITY MATRIX 5,0
R&D AND INNOVATION
5
HUMAN CAPITAL DEVELOPMENT
ETHICS AND COMPLIANCE
1,5
5
IMPORTANCE FOR THE STAKEHOLDERS
4,5
ECONOMIC DEVELOPMENT
HUMAN RIGHTS
DIVERSITY
EMPLOYMENT LOCAL COMMUNITIES
4,0
ENERGY EFFICENCY
MANAGEMENT
WATER MANAGMENT
BIODIVERSITY
WASTE MANAGMENT
GRIEVANCE MECHANISM
EFFICENT USE OF RAW MATERIALS
3,5
RESPONSIBLE SUPPLY CHAIN
GHG EMISSIONS
SPILLS
ANTI-CORRUPTION
LOCAL ECONOMIC DEVELOPMENT
INDUSTRIAL RELATIONS
INDIGENOUS RIGHTS
HEALTH & SAFETY OF EMPLOYEES & CONTRACTORS
CUSTOMER RELATIONS
RESPONSIBLE MARKETING
RELATIONS WITH PUBLIC INSTITUTIONS SAFEGUARD OF CUSTOMER INFORMATION
TRANSPORT EFFICENCY
FAIR COMPETITION
3,0
INTERNAL COMMUNICATION
3,0
2,5
3,5
4,0
4,5
IMPORTANCE FOR THE GROUP
MATERIALITY THRESHOLDS
VERY MATERIAL
MATERIAL
more than 4.0
between 3.5 and 4.0
NOT MATERIAL less than 3.5
For more information about materiality analysis please check "Creating Value - 2017 Sustainability Report". 7
5,0
GOVERNANCE & ETHICS
The corporate governance system of Maire Tecnimont essentially focuses on creating shareholder value over the medium-long term, conscious of the societal impact of Company and Group activities and the underlying need to consider the interests of all stakeholders adequately. Maire Tecnimont’s governance is based on the traditional model that includes a General Shareholders’ Meeting, a Board of Directors and a Board of Statutory Auditors.
«Ethics and compliance as key factors to maintain and strengthen the stakeholder’s confidence.» SDGs
The Board of Directors has established two internal committees with advisory functions, the Remuneration Committee and the Control Risk and Sustainability Committee, in accordance with the Corporate Governance Code of Borsa Italiana S.p.A (“Corporate Governance Code”), with which Maire Tecnimont complies. The Board of Directors has also established a Related Party Committee which is assigned the tasks and duties set out by the Related Parties Regulation issued by CONSOB, the Italian Authority for listed companies. The Board of Directors has appointed a Supervisory Body (“231 Supervisory Body”) involved in the operation, observance and updating of the 231 Model and in implementing at the Company the provisions of Italian Legislative Decree 231/2001.
MAIRE TECNIMONT GOVERNANCE
MANAGEMENT BODIES
RELATED-PARTY COMMITTEE
CONTROL BODIES
It carries out those tasks reserved to it by the CONSOB Related Parties Regulation and the related procedure adopted by the Company.
MANAGEMENT AND CONTROL BODIES SUPERVISORY BODIES
INDEPENDENT AUDITORS They have a mandate to form an opinion on the financial statments and to verify the proper keeping of the company accounts and the correct reporting of the operating events in the accounting records.
THE SHAREHOLDERS’ MEETING It adopts resolutions on issues indicated by the law, such as approval of financial statements, appointment of the Board of Directors, Board of Statutory Auditors, Independent Auditors and amendments to the Company's By-laws.
REMUNERATION COMMITTEE It formulates proposals regarding the remuneration of the Directors, including those holding special offices, and the executives of the Group.
BOARD OF DIRECTORS It determines and pursues the strategic objectives of the Company and the Group.
BOARD OF STATUTORY AUDITORS It monitors the compliance with the law and the Company’s By-laws, the principles of good administration and the suitability of the organisational, administrative and accounting structure.
CONTROL RISK AND SUSTAINABILITY COMMITTEE It assists the Board of Directors in assessing the suitability of the internal control and risk management system including the risks relevant for the sphere of sustainability.
231 SUPERVISORY BODY It carries out activities on the operation, observance and updating of the "Model 231" and on the implementation, within the Company, of the provisions of the Legislative Decree 231/2001.
5
INDEPENDENT DIRECTORS
9
OF APPOINTED DIRECTORS
The number of independent directors (5 independent directors of 9 appointed directors), all non-executive directors, exceeds that required by law and the Maire Tecnimont By-Laws.
The Board of Directors and Board of Statutory Auditors are well-balanced in terms of diversity and professional and managerial background.
Similarly, Committees are composed of non-executive directors, the majority of whom are independent, including the chairman.
BOARD OF DIRECTORS FABRIZIO DI AMATO CHAIRMAN
STEFANO FIORINI DIRECTOR
MAURIZIA SQUINZI DIRECTOR
PIERROBERTO FOLGIERO CEO & COO
PATRIZIA RIVA DIRECTOR
ANDREA PELLEGRINI DIRECTOR
LUIGI ALFIERI DIRECTOR
GABRIELLA CHERSICLA DIRECTOR
VITTORIA GIUSTINIANI DIRECTOR
Further information about diversity of Board of Directors and Board of Statutory Auditors can be found in the 2017 Corporate Governance and Ownership Structure Report.
GOVERNANCE OF SUSTAINABILITY MAIRE TECNIMONT HAS FURTHER IMPROVED OWN CORPORATE GOVERNANCE ALIGNING IT TO THE SUSTAINABILITY INTERNATIONAL BEST PRACTICE STANDARDS.
In this sphere, it has been assigned new tasks to the existing Control and Risk Committee, set up within the Maire Tecnimont Board of Directors. In particular, the new Control Risk and Sustainability Committee, so renamed on 25th January 2018, will support - among other matters - the Maire Tecnimont Board of Directors in evaluating all relevant risks for the sustainability of the long-term activities of the Company and the Group.
10
Moreover it has been implemented the Internal Sustainability Committee, a strategic advisory body for the Managing Director of the Maire Tecnimont S.p.A., in charge of providing support in the definition of the policies for the sustainable management of the business, of the related development programs, guidelines and objectives, also related to Corporate Giving, monitoring their achievement, and in the analysis of the interactions with the stakeholders.
In addition, a new function called Sustainability Reporting, directly reporting to the Chief Financial Officer, has been appointed with the responsibility to draft the Group Sustainability Report (“Sustainability Report”), containing the NonFinancial Statement as per the Legislative Decree 254/2016 (“NFS”). Furthermore, the Function will be in charge of planning and monitoring the Sustainability-related activities, in coordination with the Company’s relevant Functions.
ETHICS AND COMPLIANCE
ETHICS AND COMPLIANCE ARE THE KEY FACTORS IN THE CONDUCT OF MAIRE TECNIMONT GROUP BUSINESS FOR MAINTAINING AND STRENGTHENING STAKEHOLDER CONFIDENCE.
The Group Code of Ethics applies to the Board of Directors, Auditors, all employees and outside collaborators (consultants, business partners, etc.), suppliers, sub-contractors, clients and any other parties who at any level or point in time come in contact with Maire Tecnimont or act for and on its behalf.
Maire Tecnimont, in building the Group’s identity, has established the following fundamental principles: a business-centered and customeroriented approach, the respect and development of human resources and a commitment to environmental and safety issues.
The Board of Directors of Maire Tecnimont S.p.A. has adopted its own 231 Model, thus responding to the need to ensure fairness and transparency in the conduct of business and the management of company operations. The Board of Directors has therefore appointed a 231 Supervisory Body with autonomous powers of initiative and control.
The Group has consistently developed and updated the appropriate corporate governance tools: the Group Code of Ethics and the Organisation, Management and Control Model as per Italian Legislative Decree 231/2001 (“231 Model”).
Aside from the Group Code of Ethics, the 231 Model establishes a set of rules and principles of control and conduct to be adopted and implemented in order to mitigate the risk of committing the offences referred to in Italian Legislative Decree 231/2001, including corruption and the violation of environmental protection and workers’ health and safety rules. The rules of the 231 Model integrate with those of the Group Code of Ethics, which must be adopted by all Group subsidiaries, both in Italy and abroad to ensure that the conduct of business and the management of company operations have carried out always and everywhere in compliance with ethics and integrity. Group’s ethical culture is also defined by its corporate standards and procedures.
FIGHTING CORRUPTION
AS A MULTINATIONAL GROUP CONDUCTING BUSINESS IN OVER 40 COUNTRIES, THE MAIRE TECNIMONT GROUP AND ITS PERSONNEL ARE SUBJECT TO THE LOCAL LAWS, INCLUDING ANY THAT RATIFY INTERNATIONAL CONVENTIONS AND PROHIBIT THE CORRUPTION OF PUBLIC OFFICIALS AND PRIVATE PARTIES.
liability of legal entities for offences committed by their directors, employees or associates in Italy or abroad, in the interest or to the advantage of such legal entities. Through specific risk assessment (“Risk Assessment 231”) it has been identified the activities at risk for crimes provided by Italian Legislative Decree 231/2001, including corruption against public administration and corruption between private individuals and for each of those activities preventive measures have been designed and implemented.
As located in Italy, both Maire Tecnimont and its personnel are subject to Italian law, specifically the provisions of Legislative Decree 231/2001 and subsequent amendments which regulate the administrative 11
In particular, with reference to cash inflows and outflows, it has been provided that each transaction must be executed in compliance with the regulation and the system of delegation and proxies, and must be traceable, properly justified and posted in the corporate system. Maire Tecnimont personnel is informed of and trained on the importance of compliance with legislation and the 231 Model, so as to clearly understand the different risks and preventive measures. A compliance training program has therefore been put in place and is mandatory for all Executives, Managers and Employees.
PEOPLE AT THE CENTER
THE GROUP SUCCESSES AND RESULTS ARE BASED ON THE CONTRIBUTION OF OUR PEOPLE. THE DEVELOPMENT OF OUR HUMAN CAPITAL IS CONSIDERED A KEY SUCCESS FACTOR IN AN INCREASINGLY COMPETITIVE ENVIRONMENT. Our commitment to these aspects is also reflected in the guarantee for the respect of workers’ rights and the fair and equal treatment of women and men, as well as in the ongoing improvement of our working environment. In fact, several initiatives and programs have been promoted and rolled out regarding professional development and work-life balance, supporting our People contribution to the achievement of Group objectives. Human Capital is one of the principal assets of our Group: as mentioned above, skilled and committed resources are essential elements in an increasingly competitive and complex market. EXCELLENCE, INNOVATION, ACCOUNTABILITY AND TEAM COLLABORATION ARE KEY FEATURES OF THE MAIRE TECNIMONT GROUP AND OUR IDENTITY. Operating in more than 40 countries, through approximately 50 corporate vehicles, strengthening our employer brand and enhancing and keeping alive the sense of belonging and engagement of our People are essential requirements.
«The development of human capital: a key success factor in an increasingly competitive environment.» SDGs
The Group has launched several innovative engagement initiatives aimed at making our People feel and act like entrepreneurs. In addition, we are committed to maintaining a welcoming and stimulating working environment, as well as encouraging dialogue and exchange of different points of view, to continuously improve work life, as supporting elements of business development. Thanks to the everyday decisions and efforts of our People, we have managed to reach our goals and we will be able to face our future challenges.
OUR EMPLOYEES
(data as of December 31, 2017)
This Plan is designed to encourage involvement of the employees in the Company’s value growth and pursuit of Corporate objectives, supporting the Group’s development, also through reinforcing motivation and the sense of belonging and loyalty over the long-term. The Employees Share Ownership Plan, over the three-years period 2016-2018, provides the grant of Maire Tecnimont shares to employees of the Group in relation to the achievement of a Group industrial parameter.
5,443
EMPLOYEES OUT OF WHICH
FEMALES
MALES
1,003
EMPLOYEES SHARE OWNERSHIP PLAN 2016 - 2018
4,440
97% SECOND CYCLE
4,182
PARTICIPATIONS
2017
SMART WORKING
MAIRE4YOU
The Be Adaptive Program, carried out in close collaboration with Research Center of the Polytechnic of Milan, and launched in December 2016, has introduced in the Group a new way of working, implementing a very innovative “smart working” approach, discussed together with the Trade Unions.
Under the Engagement and Incentive Policy 2016-2018, the Group launched for most of its Italian Companies a Flexible Benefits Plan called “MAIRE4YOU”, in line with the most innovative compensation policies. The plan recognizes to beneficiaries a personal flexible benefits fund to be utilized for a vast range of services, such as the reimbursement of medical and educational expenses, interest on mortgages, funding of a supplementary pension scheme, access to various goods and services and, lastly, vouchers. The beneficiaries can access their flexible benefits fund through a dedicated platform, enabling the creation of a package of goods and services satisfying personal and household needs, while at the same time optimizing spending capacity thanks to tax and contribution advantages under Italian law.
The main goal of the program is to keep our people at the center, giving them the real possibility of improving their work-life balance and enhancing work efficiency by choosing proactively their own best place to work. To achieve sustainable growth the Program introduces new ways of developing working processes and managing human resources, as well as an innovative organizational model which combines business and individual needs, facilitating the growth of the sense of responsibility and the sharing in achieving Company business objectives. The Be Adaptive Program can improve Company performances through increasing operational and planning autonomy, reducing costs and improving work-life balance. At the same time, the environment and the local communities will benefit from the C02 reduction generated by the choice of working from home or from co-working areas – thus significantly reducing the usage of public and private transportation.
13
EMPLOYEES BY CATEGORY
(data as of December 31, 2017)
587
1,879
2,857
120
EXECUTIVES
MIDDLE MANAGEMENT
WHITE COLLARS
BLUE COLLARS
( 11% )
( 35% )
( 52% )
( 2% )
OUT OF WHICH
FEMALE
45
( 8% )
297
656
( 16% )
5
( 23% )
( 4% )
EMPLOYEES BY OPERATING GEOGRAPHIC ZONE ITALY & REST OF EUROPE
2,381
( 43,7% )
RUSSIA & CASPIAN REGION
INDIA & REST OF ASIA
1,791
415
( 32.9% )
( 7.6% )
(data as of December 31, 2017)
AMERICAS REGION
MIDDLE EAST REGION
49
( 0.9% )
681
( 12.5% )
EMPLOYEES BY MACRO PROFESSIONAL AREA
NORTH AFRICA REGION & SUB-SAHARAN AFRICA REGION
126
( 2.3% )
(avg. data year 2017)
2,543
151
1,207
750
600
ENGINEERING
COMMERCIAL AREA
OPERATIONS
STAFF AREA
REST OF TECHNICAL AREAS
( 48.4% )
( 2.9% )
( 23.0% )
14
( 14.3% )
( 11.4% )
EMPLOYEES BY AGE
689
3,703
1,051
(data as of December 31, 2017)
UNDER 30
FROM 31 TO 50
OVER 51
( 13% )
( 68% )
( 19% )
EMPLOYEES BY TYPE OF CONTRACT
4,836
607
(data as of December 31, 2017)
PERMANENT EMPLOYEES
FIX TERM EMPLOYEES
PERMANENT EMPLOYEES: HIRES AND DEPARTURES
378
( 89% )
( 11% )
2.9 %
HIRES
(permanent contract)
TURNOVER RATIO
(for voluntary reason)*
* The turnover ratio is calculated on total permanent headcount
3,600
2,732
(data as of December 31, 2017)
UNIVERSITY DEGREE
of which ENGINEERING DEGREE, vs UNIVERSITY DEGREE
TRAINING INITIATIVES
45,516
EMPLOYEES BY EDUCATION
( 66% )
TRAINING HOURS
( 76% )
2,680 PEOPLE TRAINED
PERFORMANCE AND CAREER DEVELOPMENT REVIEWS
522
1,404
1,828
EXECUTIVES
MIDDLE MANAGEMENT
WHITE COLLARS
( 89% )
15
( 75% )
( 64% )
PROTECTING HUMAN RIGHTS
THE RESPECT OF FUNDAMENTAL HUMAN RIGHTS IS AN ESSENTIAL ELEMENT OF THE MAIRE TECNIMONT GROUP’S VISION. THE COMPANY RECOGNIZES THE DIVERSITY OF THE COUNTRIES IN WHICH IT OPERATES AND OF ITS CUSTOMERS, SUPPLIERS, AND EMPLOYEES AND EACH IS VALUED AS A STRATEGIC ASSET.
The standard, whose key elements are based on the UN Declaration of Human Rights, the ILO conventions, international Human Rights norms and domestic labour law, sets voluntary benchmarks to be met by employers in the workplace, regarding workers’ rights, workplace conditions and the management system, through a risk-based approach identifying and prioritizing areas of current or potential noncompliance.
The Maire Tecnimont Group, in compliance with the SA8000 Standard and the United Nations’ Universal Declaration of Human Rights, recognizes and promotes among its employees and business partners respect for the individual, their dignity and their values as a core aspect of its identity and of its conduct.
The following table reports: the total number of employees trained during the reporting period, number of employees and the percentage of employees trained on Human Rights aspects for SA8000’s certified companies.
TOTAL NUMBER OF HOURS TRAINING ON HUMAN RIGHTS POLICIES
THE TOTAL NUMBER OF INCIDENTS OF DISCRIMINATION INVOLVING EMPLOYEES AND CONTRACTORS/ SUBCONTRACTORS WAS ‘ZERO’ IN THE 2015-2017 PERIOD. THE COMPANY HAS INVESTED SIGNIFICANTLY IN INTERNAL COMMUNICATION AND HUMAN RIGHTS TRAINING IN ORDER TO EDUCATE AND ENGAGE ALL EMPLOYEES IN THIS REGARD.
Maire Tecnimont’s position on safeguarding Human Rights is made clear to all stakeholders, both internal and external, through the Code of Ethics - a copy of which is provided to new hires and suppliers and is always available on the Corporate website.
The table on the right shows the total number of hours in the reporting period regarding training on Human Rights policies or procedures concerning the Human Rights aspects of operations.
In order to ensure ethical and responsible business management, the Group set the objective of improving the level of social responsibility by obtaining the SA8000:2014 certification.
2015
1,100
2016
1,391
2017
4,668
SA8000: 2014
TOTAL NUMBER OF EMPLOYEES TRAINED DURING THE REPORTING PERIOD 2015
2016
2017
TOTAL EMPLOYEES TRAINED
883
970
2,052
EMPLOYEES FOR SA8000'S CERTIFIED COMPANY
1,918
2,132
2,185
EMPLOYEES TRAINED FOR SA8000'S CERTIFIED COMPANY
46%
45%
94%
16
THE COMMITMENT TO HUMAN RIGHTS TRAINING INVOLVES IN ADDITION TO EMPLOYEES, ALSO SUB-CONTRACTORS.
In particular, alongside dedicated SA8000 Management Team and Worker Representative mailboxes, the Group has developed more structured ways to access the channels and ensure the anonymity of the complainant, as per the previously mentioned grievance mechanism.
100% of sub-contractor workers receive human rights issue training. In compliance with the SA8000 Standard, we appoint a Social Performance Team, responsible for monitoring and maintaining the SA8000 Management System.
A special section of the corporate website allows both internal and external stakeholders to report alleged breaches of company policies and/or of SA8000 standard requirements.
GROUP COMMITMENT FOR WOMEN EMPOWERMENT IN INDIA
The Social Performance Team also conducts a periodic written risk assessment to identify and prioritize areas of current or potential noncompliance with the standard and ensure that corrective and preventative actions are effectively implemented. The risk assessment is conducted on the basis of the Enterprise Risk Management methodology.
MAIRE TECNIMONT GROUP KEEPS INVESTING ON TRAINING OPPORTUNITIES TO DISADVANTAGED WOMEN IN INDIA. Partnering with the local NGO CORP, our Group for the third year in a row promoted the active participation of more than 900 women in 13 disadvantaged neighborhoods of Greater Mumbai in the economic life of their communities.
Furthermore, at each Group Sister Company an SA8000 Workers’ representative has been elected to facilitate workers’ contact with company management on matters related to Social Responsibility. ON SITE, CONSTRUCTION MANAGEMENT PLAYS A LEAD ROLE IN INCREASING AWARENESS AND MONITORING OF HUMAN RIGHTS. All site personnel receive Social Responsibility training, both in a traditional classroom setting and through e-learning video clips. A CENTRAL ASPECT OF OUR VISION IS TO LISTEN AND GIVE VOICE TO THE VARIOUS GROUP INTERNAL AND EXTERNAL STAKEHOLDERS. We have therefore created a channel for all our stakeholders to send/ receive reports, as a direct way of receiving insights and suggestions to improve daily working life.
17
The project encompassed specific vocational training as well as education on women’s rights and empowerment, providing at the same time proper support services so to maximize women attendance. The approach to social and economic issues in an integrated but very pragmatic way, allowed to touch at the same time key topics in line with the UN Sustainable Development Goals our Group decided to embrace (SDG 2, SDG 3, SDG 4, SDG 5, SDG 8).
CREATING SUSTAINABLE VALUE
MAIRE TECNIMONT IS AWARE THAT CORPORATE RESPONSIBILITY IMPLIES NOT ONLY THE GENERATION OF ECONOMIC RESULTS, BUT ALSO TAKING INTO ACCOUNT SPECIFIC LOCAL COMMUNITY AND LOCAL ECONOMIC DEVELOPMENT NEEDS, ALONGSIDE STRONG AND RELIABLE SUPPLY CHAIN RELATIONSHIPS AND TRUSTING CUSTOMER RELATIONS.
«Interaction with local communities, reinforcement of supply chain, creation of value for clients to deliver sustainable value.» SDGs
Interacting with local communities and institutions, reinforcing the supply system and creating value for clients are fundamental aspects of Maire Tecnimont’s strategy to deliver sustainable value. This is viewed by the Group as a multi-dimensional opportunity - simultaneously bringing economic, social, and environmental benefits to stakeholders. This approach allows the Group not only to create and deliver sustainable value – considering the importance of projects, the size of plant and the operating locations – but also builds trust in the communities where the Group operates and helps clients to solve complex needs. IN ADDITION, MAIRE TECNIMONT’S FOCUS ON DEVELOPING LOCAL COMMUNITIES THROUGH AD-HOC CAPACITY BUILDING ACTIVITIES ALLOWS THE GROUP TO FIND THE RIGHT SET OF LOCAL SKILLS TO DEVELOP OUR COMPLEX PLANTS.
MANAGING A SUSTAINABLE SUPPLY CHAIN
THE MAIRE TECNIMONT GROUP IS CONSCIOUS OF THE KEY ROLE OF THE SUPPLY CHAIN IN ITS BUSINESS.
2017 HIGHLIGHTS
In order to make it stronger and more sustainable, over recent years a focus on vendors committed to equal opportunities, the respect of human rights and environmental protection in compliance with the code of ethics was developed. In order to excel on the EPC market, not only does the Maire Tecnimont Group consider an impeccable and strong supply chain necessary, but also a sustainable, reliable and ethical relationship with its suppliers, based on strong and measurable pillars. THE MAIRE TECNIMONT GROUP IS CONSTANTLY FOCUSED ON CHOOSING AND DEVELOPING STRONG RELATIONSHIPS WITH SUPPLIERS THAT MEET OR EXCEED THE HIGHEST STANDARDS FOR QUALITY AND SUSTAINABILITY.
ACTIVE SUPPLIERS (AT LEAST ONE ORDER PLACED IN 2017)
4,100+
NEW POSITIVE QUALIFICATIONS WITH SOCIAL AND ENVIRONMENTAL REQUIREMENTS
469
QUALIFICATION AUDIT PERFORMED
42
TOTAL PURCHASING VALUE
€2.20 BLN
PURCHASING VALUE ON LOCAL SUPPLIERS
€1.4 BLN
PERCENTAGE OF PURCHASING VALUE SPENT ON LOCAL SUPPLIER
64%
MAIRE TECNIMONT SUPPLY CHAIN
18,500+
50
SUPPLIERS
COUNTRIES
527
4
MATERIAL GROUPS
IPO’S/PROCUREMENT HUBS
(China, Egypt, Middle-East, Russia)
Maire Tecnimont’s supply chain structure has not significantly changed during the reporting period.
The Maire Tecnimont Group’s sustainable supply chain is managed in accordance with the procurement cycle of the relationship through the following steps:
THE QUALIFICATION PROCESS IS THE GATE The first part of the procurement process is vendor qualification, assessing the applicant by focusing on a range of areas: Industrial information
Supplier qualification via questionnaires on the E2Y platform and on-site audits
Financials Quality Management
On-site inspections Health, Safety and Environment Tender management (negotiation + order)
Human rights
Compliance (code of ethics, anti-corruption, anti-terrorism) SINCE 2016, ALL INFORMATION IS HANDLED THROUGH THE E2Y PLATFORM THAT ENSURES THE TRACEABILITY AND CONSISTENCY OF THE DATA EXCHANGED.
Performance measurement and evaluation
SEENERGY In June 2017, the Maire Tecnimont Group organized the “SEENERGY” Event, meeting our main suppliers and stressing that the Maire Tecnimont approach to its suppliers is not a mere Client-Vendor approach, but represents true industrial and technological cooperation where both sides benefit from each other. The event has been crucial in sharpening the focus on Social and Environmental issues. More than 120 chief executive officers and sales directors of Italian and international multinationals attended the event, representing more than €520 billion of turnover and a workforce of more than 2 million around the world.
SPEED, INTELLIGENCE AND COOPERATION IN PROCUREMENT: THE E2Y PROGRAM In 2015, Maire Tecnimont launched the E2Y procurement platform to enable a more effective, proactive, and integrated procurement cycle. All the phases of the procurement process are now electronically managed in compliance with both Group procedures and local and geographic needs. It enhances negotiation process transparency, ensuring a more efficient integration among Engineering, Procurement and Construction and faster negotiation - without compromising the quality of the supplier.
At present 100% of new suppliers are screened on environmental and social criteria. Depending on product/service offered, suppliers are subjected to due diligence to evaluate their compliance in the following area:
100%
Health, Safety and Environment
SUPPLIERS
Human rights
ARE SCREENED ON
Labor practices Compliance (code of ethics, anti-corruption, anti-terrorism)
ENVIRONMENTAL AND SOCIAL CRITERIA
20
After passing the qualification process, the supplier can participate in tenders. From tender to order, the Maire Tecnimont Group shares with the vendor all its Terms and Conditions that include environmental and social requirements in order to stress the importance of sustainability throughout the supply cycle. Periodically during the year, all the functions involved with the supply chain analyze suppliers’ performances to decide whether to continue collaboration, ask for corrective actions or to review the qualification status.
DEVELOPING LOCAL COMMUNITIES
LOCAL CONTENT STRATEGY Local Content Dynamization has become our main way of operating in both established and developing markets, ensuring not only a durable and profitable presence worldwide, but also business and personal development opportunities at a local level in the markets in which we operate.
WHEREVER IT OPERATES IN THE WORLD, MAIRE TECNIMONT PLAYS AN ACTIVE ROLE IN LOCAL COMMUNITY DEVELOPMENT, CONTRIBUTING TO THE SOCIAL AND ECONOMIC WELLBEING OF A TERRITORY.
This means creating local employment, strengthening local suppliers, increasing local ownership in the industry, promoting enterprise development, accelerating the transfer of skills and technologies and prioritizing the employment and training of local citizens.
LOCAL CONTENT STRATEGY OPERATIVE OBJECTIVE 1 2
ENHANCEMENT OF OPPORTUNITIES FOR LOCAL LABOUR FORCE
ENHANCEMENT OF OPPORTUNITIES FOR LOCALLY-BASED SUPPLIERS OF GOODS AND SERVICES
3
TRAINING AND PROGRESSION FOR LOCAL PEOPLE
4
DEVELOPMENT OF LOCAL SUPPLIERS
5
INVESTMENTS IN FIXED ASSETS NEARBY CONSTRUCTION SITES
ACTIONS 1 2
3
4
To employ local workforce
To require sub-contractors to use local workforce
Provision of direct assistance/support (also through workshops) to local firms on pre-qualification/accreditation process
Performance of meetings aimed at clarifying technical issues with prospective local sub-contractors
Coaching and mentoring programmes
Post-training employment opportunities in the local downstream and gas transformation industry and overseas
Cooperation with local training schools
Alerting local suppliers about tender opportunities, providing real-time support in how to navigate the vendor registration, pre-qualification and tendering process
Encourage first time Sub-contractors to maximize local SME participation in the project
Assistance to local employees in discovering job opportunities Upgrading local suppliers and partners through improvements in operational process, efficiency and quality assurance Collaboration with other organisations, such as other operators and contractors, public institutions and nongovernmental organisations
5
Investments in operational offices, manufacturing facilities, service facilities or other fixed assets
21
LOCAL CONTENT IN OUR BUSINESS
€3.9 BLN
€1.6 BLN
AGGREGATE VALUE OF THE CONTRACTUAL CONSIDERATIONS*
PURCHASES OF GOODS AND SERVICES PROVIDED LOCALLY*
YARA
NETHERLANDS FERTILIZERS
AMISTAD MEXICO
RENEWABLE ENERGY
TYPE OF PROJECT FERTILIZERS PETROCHEMICALS OIL&GAS REFINING RENEWABLE ENERGY
*
Referred to 8 projects that best represent the business
22
FOR MAIRE TECNIMONT, LOCAL CONTENT IS NOT ONLY EMPLOYED UPON A CLIENT’S REQUESTS, BUT IS A LONG-TERM PLANNING APPROACH OF THE GROUP, WITH THE GOAL OF TRANSFERRING VALUE TO LOCAL COMMUNITIES AND CREATING SHARED SOLUTIONS FOR CLIENTS.
In order to show the footprint in connection with our presence on the territory and to describe our strategies for the engagement of communities, the investments, the public-private partnerships and the creation of skills, we have identified a representative sample of our projects. In particular, we have identified the 8 projects that best represent the business of the group both in terms of progress, and as a type of product and technology.
With reference to these projects, against an aggregate value of the contractual considerations of about €3.9 billion, purchases of goods and services provided locally amount to EURO1.6 billion, corresponding to 50% of total purchases of goods and services estimated for these projects.
LOTOS K-214 POLAND
OIL&GAS REFINING
KINGISEPP
RUSSIAN FEDERATION PETROCHEMICALS
TEMPA ROSSA ITALY
OIL&GAS REFINING
KIMA
ORPIC
EGYPT
OMAN
FERTILIZERS
PETROCHEMICALS
RAPID
MALAYSIA PETROCHEMICALS
23
IMPORTANCE AND VALUE OF OUR HSE POLICY
FULLY IN LINE WITH SDGS NR. 3 AND NR. 15, MAIRE TECNIMONT IDENTIFIES THE HEALTH AND WELFARE OF THE INDIVIDUAL, THE SAFETY OF DESIGNED AND BUILT INDUSTRIAL PLANTS AND THE PROTECTION OF THE ENVIRONMENT AS ESSENTIAL CORPORATE OBJECTIVES. Focusing on the prevention of any type of incident and the mitigation of any impact on the ecosystem, the Group is committed to providing workplaces, services and industrial plants which comply with applicable legal requirements and the highest Health, Safety and Environment (HSE) standards, while also encouraging “work safely” and environmental protection approaches, for every area of Company operations and during all phases of project execution, both at home office and site level. THE DESIGN, PLANNING, IMPLEMENTATION, MONITORING AND CONTINUOUS IMPROVEMENT OF AN EFFICIENT AND EFFECTIVE HSE MANAGEMENT SYSTEM ARE THE MAIN DRIVERS BEHIND ESTABLISHING APPROPRIATE HSE PRIORITIES, OBJECTIVES AND TARGETS.
«Safely work and environmental protection during all phases of the project execution, both at home office and at site level.» SDGs
The monitoring and control of legal and other applicable requirements is also fundamental - including national and international laws, local requirements, agreements with local authorities or customers, voluntary principles and codes of practice, in addition to the satisfaction of the contractual requirements of our customers. The HSE Management System is certified by third party organization for the main operating companies according to the ISO 14001 standard for environmental management and to the OHSAS 18001 standard for occupational health and safety. In order to ensure the company's success, a HSE Policy is provided to all employees: it is a key guide for corporate functions and at the same time an asset and strategic value for the entire Group.
HSE CULTURE AND TRAINING
TRAINING IS ESSENTIAL FOR THE CREATION OF VALUE FOR OUR STAKEHOLDERS AND TO ENSURE THE LONG-TERM HEALTH OF OUR BUSINESS.
It is a core strategic activity of the Group, which continuously develops the professional competences and skills of our employees. In terms of the activities performed on site, training is a key element for
incident prevention: entering a construction area exposes personnel to risks related to both field activities and the presence of chemicals, as the construction area is generally built within the industrial plants.
HSE TRAINING HOURS BY YEAR
HSE training hours for Home office, construction site and Operation and Maintenance Employees HSE training hours for Sub-contracting workers
3,453,855 hours have been dedicated to HSE courses over the last three years. The table above breaks down HSE training hours by year.
2015
2016
2017
18,328
23,521
55,728
326,248
706,700
2,323,330
The average hours of training per capita provided to employees at home office and construction sites for Maire Tecnimont Group on HSE and Social Accountability topics are 4.3 hours in 2015, 5.1 hours in 2016 and 11.1 hours in 2017.
In addition to that all subcontractor workers at construction sites receive training on HSE and Human Rights issues.
HSE TRAINING/CONSTRUCTION WORKING HOURS 3.0%
The ratio between HSE training hours and men-hours worked on site is increasing, from 1.48% in 2015 to 2.74% in 2017 and this reflects our strong focus and our high commitment on prevention and personnel training.
2.5%
2.74%
2.0%
2.09%
1.5% 1.0%
1.48%
0.5% 0.0% 2015 25
2016
2017
ENVIRONMENT PROTECTION
THE MAIRE TECNIMONT GROUP CONSIDERS ENVIRONMENTAL RESPONSIBILITY AS A KEY FACTOR IN SUPPORT OF SUSTAINABILITY AND CLOSELY CONNECTED TO THE ABILITY OF A BUSINESS TO CREATE ADDED AND SUSTAINABLE VALUE.
The ISO 14001 certification confirms that a consistent Environmental Management System has been established to regularly evaluate, control and mitigate environmental impacts from the execution of projects and home offices activities.
Maire Tecnimont is highly conscious of the contribution it can make during the construction phase on-site, by respecting local laws and regulations, promoting and expecting good practice from all subcontractors and being constantly ready to act in the case of spills or environmental damage.
Maire Tecnimont’s Environmental Policy focuses on monitoring energy consumption of construction and home office activities, to evaluate possible areas of improvement and implement the relative measures to reduce consumption.
The following tables of Energy Intensity and GHG Emission Intensity factors are mainly and strongly influenced by the number of EPC projects active during the year of observation and by the phase of each project as well, in particular the trends observed reflect the increase of projects number and more advanced phases in some projects from 2015 to 2017, as confirmed by the total worked hours observed in each period.
ENERGY INTENSITY
kJ/man-hours worked
20151
2016
2017
10,254
20,537
24,875
The Group’s energy intensity factors are calculated using both direct and indirect energy consumption as a numerator and man-hours worked as a denominator.
1 Site data for 2015 do not include all sites.
Worked hours have been acknowledged as representative of the Group’s overall activity.
GHG EMISSIONS INTENSITY
kg CO2 /man-hours worked
2 Site data for 2015 do not include all sites.
20152
2016
2017
0.99
1.64
1.92
The Group’s GHG emissions’ intensity factors are calculated using both direct and indirect emissions (Scope 1 and Scope 2 emissions) as a numerator and man-hours worked as adenominator. 26
Worked hours have been acknowledged as representative of the Group’s overall activity.
Waste production, or the lack of waste recycling, are factors that contribute to increased pollution, for example in terms of GHG emissions (CH4 in particular), spills on soil and water, odors and the occupation and deterioration of land.
Thanks to attentive management process, virtually everything is correctly collected and delivered to the waste companies ready to be recycled, in line with Maire Tecnimont Policy. The highest percentage of waste consists of paper; therefore, the digitalization of documents assists a "paper-less" approach which helps to reduce paper supplies and consequently paper waste.
THE GROUP HAS STARTED ALSO TO INCREASE THE PURCHASE OF RECYCLED PAPER, ENCOURAGING EVEN MORE A "RECYCLING CULTURE"!
CONSTRUCTION SITES WASTE MANAGEMENT 20153
2016
2017
Total weight of waste (tons)
128,454
402,301
929,284
Non hazardous (tons)
128,437
401,717
928,294
17
584
990
128,454
402,301
929,284
Recycling
54,156
88,392
109,660
Landfill
74,290
313,695
818,739
8
214
885
RECOVERY (%)
42.2%
22.0%
11.8%
DISPOSAL (%)
57.8%
78.0%
88.2%
Hazardous (tons) Total weight of waste by disposal method (tons)
Other (to be specified)
3 Site data for 2015 do not include all sites.
In 2016 and in particular in 2017, the waste data reflects the increased man-hours spent on sites. Waste data are impacted by significant soil excavations from construction sites: about 320 thousand tons in 2016 and 484 thousand tons in 2017.
The percentage of waste disposal (and therefore the percentage of recovery) is affected, in some cases, by the rules of construction site applied in the industrial site owned by the end user.
27
It is also affected by the limited availability, in some countries, of public and private collection networks and systems.
HEALTH & SAFETY PERFORMANCE
THE GROUP STRONGLY SUPPORTS A PREVENTATIVE APPROACH FOR REDUCING THE RISK OF ACCIDENTS AND THEIR ASSOCIATED EFFECTS, SAFEGUARDING THE HEALTH AND SAFETY OF ITS EMPLOYEES AND PERSONNEL UNDER ITS RESPONSIBILITY AND MINIMIZING NEGATIVE IMPACTS AT THE HEADQUARTERS AND AT CONSTRUCTION SITES AS WELL.
HSE performance monitoring at the headquarters and sites helps to provide a measure of the efforts and actions implemented by company management. The safety and health management system certified according to the OHSAS 18001 standard ensures the control, monitoring and maintenance of working environments, services and equipment, in accordance with the requirements of applicable law and in line with the standard.
Over the last three years, a total of more than 167 million manhours were worked at the Group home offices and construction sites world-wide (Olevano Biomass Power Plant man-hours are not included).
GROUP MAN-HOURS WORKED 2015
2016
2017
6,087,719
7,096,024
7,344,591
Sites Man-hours Employees & Sub-contractors
23,679,279
35,442,069
88,075,071
TOTAL
29,766,998
42,538,093
95,419,662
Home office Man-hours Employees
For the construction sites, the trend is consistently increasing each year, and in 2017 the Group reported more
28
than double the man-hours worked compared to 2016.
PERFORMANCE AT HEADQUARTERS
Over the last three years, 4 lost time injuries (LTI) in the office and 49 commuting events were recorded, thus outside company headquarters.
INJURIES OF MAIRE TECNIMONT GROUP EMPLOYEES AT THE HEADQUARTERS4 2015
2016
2017
Number of injuries
1
2
1
Number of lost work days
7
132
5
LTIF - Lost time injury frequency 5
0.033
0.056
0.027
LWDR - Lost Work Days Rate 6
0.230
3.720
0.136
4 Commuting events are not included. 5 Lost time injury frequency (LTIF) is the number of lost time injuries (fatalities + lost work day cases) /man-hours worked per 200,000 exposure hours. The LTIF indicator takes into account fatalities and injuries with lost days.
6 Lost Work Day Rate (LWDR) is the number of total lost days / man-hours worked per 200,000 exposure hours. LWDR is defined according to OSHA Forms 300 methodology.
29
We highlight that the lost workday rate (LWDR) which measures severity on the basis of the number of lost work days divided by the man-hours worked decreased significantly from 3.720 in 2016 to 0.136 in 2017.
PERFORMANCE AT CONSTRUCTION SITES
For the Technology, Engineering & Construction business unit (MET E&C) which includes those companies involved in Oil&Gas activity, the Group adopts the main performance indicators set out by OSHA (the US Occupational Safety and Health Administration) and IOGP (International Association of Oil&Gas Producers), in order to monitor and detect areas for improvement and to continuously promote a strong HSE approach on worksites.
Over the last three years, a total of over 144 million man-hours were worked in construction sites of the Maire Tecnimont Engineering & Construction business unit (MET E&C). The table below shows the main safety indicators for the Maire Tecnimont Group according to IOGP.
MET E&C BU - SAFETY INDICATORS ACCORDING TO IOGP
2015
2016
2017
22,886,726
34,641,636
86,695,854
LTIF - Lost time injury frequency7
0.087
0.087
0.046
TRIR - Total recordable injury rate8
0.262
0.895
0.150
Lost Work Day Rate9
8.520
2.540
2.503
Man-hours worked on construction sites (Employees + Subcontractor)
7 Lost time injury frequency (LTIF) is the number of lost time injuries (fatalities + lost work day cases) /man-hours worked per 1 million exposure hours. The LTIF indicator takes into account fatalities and injuries with lost days. 8 Total recordable injury rate (TRIR) is the number of recordable injuries (fatalities + lost work day cases + restricted work day cases +medical treatment cases)/man-hours worked per 1 million exposure hours.
30
The TRIR indicator takes into account: fatalities, injuries with lost days, restricted work day cases and medical treatment cases. 9 Lost Work Day Rate (LWDR) is the number of total lost days / manhours worked per 1 million exposure hours. LWDR is defined according to OSHA Forms 300 methodology.
Site Performance For Technology, Engineering & Construction Business Unit
The values and trends emerging according to these indicators are regularly compared with internationally recognized benchmarks, such as those provided annually by the IOGP for EPC contractors.
The graph indicates the reduction in the HSE indicators due to the continuous focus on HSE matters, considering also the significant increase in site man-hours worked in 2017.
MET E&C BU - LOST TIME INJURY FREQUENCY* 0.200 0.160
0.130
0.160
0.130 **
0.120 0.080
0.087
0.087
0.046
0.040 0.000 2015
2016
2017
*LTIF Construction refers to Report IOGP Nr. 2016s dated June 2017 “Safety Performance Indicators 2016 Data�. ** Maire Tecnimont Group safety indicators are regularly compared with internationally recognized benchmarks, such as those provided annually by the IOGP (International Association of Oil & Gas Producers) for EPC contractors. 2017 data for IOGP is not available yet (as benchmark data will be published in second quarter 2018) and for this reason the Group will keep maintain the same 2016's benchmark data also for year 2017. MET E&C BU
IOGP - Construction
Site Performance for Infrastructure and Civil Engineering Business Unit
For the Infrastructure and Civil Engineering business unit over the last three years, a total of over 2.9 million man-hours were worked on infrastructure construction sites. Man-hours worked on construction sites (Employees in Construction Sites + Subcontractor) for year 2015 were 792,553, for year 2016 were 800,433, and for 2017 were 1,379,217.
31
The recordable incident cases reported the following safety performance calculated across 1,000,000 hours worked for Injury Frequency Index (INAIL) and across 1,000 hours worked for Injury Severity Index (UNI: 7249). The Injury Frequency Index32 is 13.88 for year 2015, 23.74 for year 2016, 12.33 for year 2017; The Injury Severity Index33 is 0.320 for year 2015, 0.860 for year 2016, 0.247 for year 2017.
For more information please refer to "Creating Value - 2017 Sustainability Report" EDITED BY Maire Tecnimont Institutional Relations & Communication Department Sustainability Reporting Department GRAPHIC DESIGN Visualmade PHOTOS Maire Tecnimont Group Image Bank PRINTING Gam Edit June 2018 Special thanks to all those who contributed to the drafting of this report.
www.mairetecnimont.com
THE GROUP MOTTOS 1. RIDE THE TURNAROUND!
2. TAKE THE CHALLENGE!
COMPETENCE, ENTREPRENEURSHIP AND ADAPTIVENESS ARE THE KEY WORDS TO BE SUCCESSFUL IN OUR INDUSTRY IN THE NEW ERA WE ARE ENTERING.
The challenge of our Group: impeccably deliver our portfolio through operational and financial discipline.
Managing uncertainties is the core of our job… As a sailor faces the sea every day.
MASTER THE CHANGE, BE ACTIVELY PART OF IT!
LET THE PASSION FOR RESULTS DRIVE YOUR ACTIONS!
3. EVERY SINGLE DECISION COUNTS!
4. STEP UP AND MAKE THINGS HAPPEN!
THESE MOTTOS HAVE BEEN SPREAD THROUGHOUT OUR WORLDWIDE PREMISES TO COMMUNICATE TO ALL OUR STAKEHOLDERS THE BEAUTY OF THE CHALLENGE WE HAVE IN FRONT TO GET READY TO THE NEW DECADE.
Our work-success is the result of a thousand single choices made in the right sequence. There is no time for procrastination.
Talk and listen directly to your colleagues. Sending an e-mail could not be a solution. Let’s keep our doors open.
YOUR CONTRIBUTION MAKES A DIFFERENCE!
BEAT THE BUREAUCRATIC APPROACH!
5. BE ADAPTIVE!
6. WE ARE RESILIENT!
Fast changes in the market create discontinuities while opening also opportunities to the most responsive players.
Recovering quickly from drastic changes is part of our noble and precious DNA. We live in a tough environment, but adversity made us stronger.
AGILITY IS THE KEY!
LET’S CAPITALIZE ON LESSONS LEARNT!
7. NOT JUST THE COMPANY, THIS IS YOUR COMPANY!
8. OUR TOMORROW IS NOW!
Building together the success of our Group creates shared value to everyone.
These are extraordinary times. If we stay focused on our corridor of growth we will be ready to build the next decade of Maire Tecnimont.
BE ENTREPRENEUR IN A NETWORK OF ENTREPRENEURS!
THE FLOOR IS OURS!
PETROCHEMICALS
30%
MARKET SHARE IN POLYOLEFIN PLANTS (#1 WORLDWIDE FOR CAPACITY INSTALLED IN THE LAST TEN YEARS), INCLUDING A 40% SHARE IN LDPE
SINCE
1970
MORE THAN
180 POLYETHYLENE AND 44
COUNTRIES
POLYPROPYLENE PLANTS
The Group, through its subsidiary Tecnimont, has access to all first-class polyolefins technologies and has the size and capability to manage and execute several projects simultaneously using different technologies while ensuring confidentiality and preserving Licensors’ know-how. Tecnimont is included in the shortlist of preferred engineering contractors for many patented technologies, and can develop the Licensor’s process design package - the know-how documentation delivered by the technology provider to the Contractor - for and on behalf of the Licensor itself.
6
Tecnimont is able to perform a wide range of functions in the international market for polyolefins plants. These include acting as general contractor for entire petrochemical complexes, providing the complete chain of services, starting from feasibility studies and technology selection, through basic and detailed engineering, supply of equipment and materials, to supervision of erection, construction and commissioning, on an EPC LSTK basis, proceeding with assistance to start-up, operation & maintenance, revamping, preservation, de-commissioning and relocation.
7
16
ONGOING PROJECTS 1
2
3
4
HDPE PLANT - Sumgayit, Azerbaijan Client: SOCAR Polymer Contract type: EPC LLDPE-HDPE-PP PLANTS - Sohar, Oman Client: LIWA Plastic Industries Complex ORPIC Contract type: EPC POLYOLEFINS UNITS (RAPID) - Pengerang, Malaysia Client: PRPC Polymers Sdn Bhd (PETRONAS) Contract type: EPCC (JV HQC) HDPE PLANT (PETRONAS’ PENGERANG INTEGRATED COMPLEX (PIC)) - Pengerang, Malaysia Client: PRPC Polymers Sdn Bhd (PETRONAS) Contract type: EPCC (JV HQC)
5
6
7
8
NEW HDPE, PP REVAMPING - Batangas, Philippines Client: JG Summit Contract type: EPC (JV JGC Philippines)
9
HDPE PLANT - Corpus Christi, Texas, USA Client: Exxon-Sabic Contract type: FEED + CE
10
PETROCHEMICAL PLANT - Texas, USA Client: Undisclosed Contract type: FEED
11
ZPCC LDPE PLANT - Zhoushan City, China Client: Basell Polyolefine GMBH (for Zhejiang Petroleum & Chemical Co., Ltd.) Contract Type: PDP; BEDP; E; Ps SIDPEC PDH PLANT - Amerya, Egypt Client: UOP for SIDPEC Contract Type: FEED PP, U&O PLANT - Sumgayit, Azerbaijan Client: SOCAR Polymer Contract type: EPC
LDPE PLANT - Yulin Shaanxi, China Client: Shaanxi Yanchang Contract type: PDP, FEED, DEHP < 200 Mn Euro 200 to 500 Mn Euro 500 to 1,000 Mn Euro > 1,000 Mn Euro
18 14 13
1
11 8 9
23
12 10
17 24
15
22
20 21
2
19 5
3 4
MAIN COMPLETED PROJECTS 12
LDPE PLANT - Sadara, Kingdom of Saudi Arabia Client: Sadara Chemical Company Contract type: EPC
13
LDPE PLANT - Bratislava, Slovak Republic Client: Slovnaft Petrochemicals s.r.o. (MOL Group) Contract type: EPC
14
15
16
PDH PLANT - Police, Poland Client: Polska S.a Contract type: FEED + CE POLYOLEFINS COMPLEX - Rabigh, Kingdom of Saudi Arabia Client: Petro Rabigh (JV Aramco - Sumitomo) Contract type: EPC (Consortium Sumitomo Chemical Eng.Co) LDPE PLANT - Veracruz, Mexico Client: Etileno XXI Services BV Contract type: EP
17
PDH - PP PLANT - Al Jubail, Kingdom of Saudi Arabia Client: Al Waha (JV Sahara, LyondellBasell) Contract type: EPC (Consortium Daelim)
21
POLYOLEFINS COMPLEX - Ruwais, United Arab Emirates Client: BOROUGE 3 (JV ADNOC - Borealis) Contract type: EPC (JV Samsung)
18
PDH PLANT - Tobolsk, Western Siberia Client: Tobolsk Polymer LLC (JSC Sibur Holding) Contract type: EPC
22 PE - NAO PLANTS
19
LLDPE-HDPE-PP PLANTS - Dahej, Gujarat, India Client: OPAL (JV ONGC, GSPC, GAIL) Contract type: EPC
23 LDPE Plant Revamping
20 POLYOLEFINS COMPLEX
- Ruwais, United Arab Emirates Client: BOROUGE 2 (JV ADNOC - Borealis) Contract type: EPC
- Mesaieed, Qatar Client: Qatar Chemical Company II Contract type: EPC (Consortium Daewoo) - Daesan, Korea Client: Hanwha â&#x20AC;&#x201C; Total Contract type: FS, FEED, DEHP
24
FIRE WATER PIPING UPGRADE - Al Jubail, Kingdom of Saudi Arabia Client: Al Waha Petrochemicals Co Contract type: EPC
MAIN AVAILABLE TECHNOLOGIES PRODUCT
LICENSOR – TECHNOLOGY
COUNTRY
PP (POLYPROPYLENE)
BASELL POLIOLEFINE – Spheripol, Spherizone BOREALIS – Borstar PP CHEVRON PHILLIPS EXXONMOBIL GRACE (former DOW CHEMICAL) – Unipol PP INEOS – Innovene PP JAPAN POLYPROPYLENE Co. – JPP Horizone Process MITSUI CHEMICAL – Hypol II LUMMUS TECHNOLOGY – Novolen SUMITOMO
ITALY AUSTRIA USA USA USA USA JAPAN JAPAN USA JAPAN
LLDPE / HDPE (LINEAR LOW DENSITY / HIGH DENSITY
BASELL POLIOLEFINE – Spherilene BOREALIS – Borstar PE INEOS – Innovene G NOVACHEM - Advanced Sclairtech SUMITOMO UNIVATION – Unipol PE
ITALY AUSTRIA UK CANADA JAPAN USA
LDPE (LOW DENSITY POLYETHYLENE)
BASELL POLYOLEFINE – Lupotech T, Lupotech A EXXONMOBIL (EXCEPT HP DESIGN) SUMITOMO VERSALIS
GERMANY USA JAPAN ITALY
HDPE (HIGH DENSITY POLYETHYLENE)
BASELL POLYOLEFINE – Hostalen CHEVRON PHILLIPS EXXONMOBIL INEOS – Innovene S MITSUI CHEMICAL – Cx
GERMANY USA USA UK JAPAN
POLYETHYLENE)
POLYSTYRENE (EPS, HIPS, GPPS)
VERSALIS
ITALY
ABS
VERSALIS
ITALY
RUBBERS
GOODYEAR (SSBR) JAPAN SYNTHETIC RUBBER (SSBR) MICHELIN (PBR) SIBUR (IIR, BUTYL RUBBER) VERSALIS (ESBR, SBS, SB, LCBR, HCBR, EPDM, SSBR)
USA JAPAN FRANCE RUSSIA ITALY
STEAM CRACKING (FOR ETHYLENE, PROPYLENE, ETC)
KBR LINDE LUMMUS TECHNOLOGY TECHNIP / STONE & WEBSTER
USA GERMANY USA FRANCE / USA
PDH (PROPANE/ISOBUTANE DEHYDROGENATION)
LUMMUS TECHNOLOGY – Catofin UHDE – Star UOP – Oleflex YARSINTEZ
USA GERMANY USA RUSSIA
EO/EG (ETHYLENE OXIDE & ETHYLENE GLYCOL)
PETRON SCIENTECH INC. SCIENTIFIC DESIGN / SABTEC SHELL GLOBAL SOLUTIONS
USA USA / KSA HOLLAND
ACN (ACRYLONITRILE)
INEOS NITRILES (former BP, former SOHIO)
USA
PTA (PURIFIED TEREPHTHALIC ACID)
GRUPO PETROTEMEX (GPT) – Integrex iPTA MITSUBISHI CHEMICALS
MEXICO JAPAN
BUTADIENE
LUMMUS TECHNOLOGY / BASF (Extraction) LUMMUS TECHNOLOGY (Dehydrogenation) – Catadiene NIPPON ZEON (Extraction)
USA USA JAPAN
DICYCLOPENTADIENE
AXENS
FRANCE
ACETONE CYANOHYDRIN & MMA (METHYL METHACRYLATE) REPSOL
SPAIN
CUMENE/PHENOL/ACETONE
UOP
USA
LAB (LINEAR ALKYLBENZENES)
UOP
USA
LAO (LINEAR ALPHA OLEFINS)
AXENS CHEVRON PHILLIPS LUMMUS TECHNOLOGY - OCT
FRANCE USA USA
NYLON 6, NYLON 6.6
STAMICARBON (former NOY)
ITALY
PET (POLYETHYLENE TEREPHTHALATE )
GRUPO PETROTEMEX (GPT) – Integrex iPET STAMICARBON (former NOY)
MEXICO ITALY
1. VERSALIS 2. ZAT 3. AQUAFIL
ITALY POLAND ITALY
CPL (CAPROLACTAM):
1. AMMOXIMATION 2. From CYCLO HEXANE 3. BECKMANN REARR. + CPL PURIFICATION
FERTILIZERS SINCE
54%
1924
MARKET SHARE (#1 WORLDWIDE) IN LICENSING UREA SYNTHESIS PLANTS
98 AMMONIA PLANTS
74 UREA
PLANTS
34%
MARKET SHARE (#2 WORLDWIDE) IN LICENSING UREA GRANULATION TECHNOLOGY
The Group provides a wide and integrated range of services, from feasibility studies to basic engineering, from selecting licensors to developing lump-sum turnkey projects. Thanks to the acquisition of Stamicarbon, the Group is a benchmark player in the development of ammonia-urea E&C projects, ensuring the best technologies available on the market, granting licensing, executing procurement and construction of new urea plants and revamps of existing ones.
10 20
Over 250 urea plants around the world have used or are currently using our technology. Thanks to the expertise acquired in ammonia synthesis plants based on steam reforming of Natural Gas, the Group is also capable and willing to offer large scale methanol plants based on the most reliable and advanced technologies available worldwide.
ONGOING PROJECTS 1
2
3
FERTILIZERS COMPLEX - Aswan, Egypt Client: KIMA Contract type: EPC AMMONIA DEBOTTLENECKING - Annaba, Arzew, Algeria Client: Fertial Contract type: E YARA SLUISKIL - Sluiskil, The Netherlands Client: Yara International ASA Contract type: EPC
4
AMMONIA PLANT - Kingisepp, Russian Federation Client: EuroChem Mineral and Chemical Company Contract Type: EPC
5
AMMONIA/UREA PLANT - Kingisepp 2, Russian Federation Client: EuroChem Mineral and Chemical Company Contract Type: E
6
AMMONIA/UREA/NPK PLANT - Ethiopia Fertilizer Project ISBL Client: OCP Morocco Contract Type: E
MAIN COMPLETED PROJECTS 7
8
9
FERTILIZER COMPLEX PROJECT - Al-Jubail, Kingdom of Saudi Arabia Client: SAFCO Contract type: EPC
10 IOWA FERTILIZER COMPANY
UREA DEBOTTLENECKING & GRANULATION PLANT - Shuaiba, Kuwait Client: P.I.C. Contract type: EPC
11
- Wever, Iowa, USA Client: Orascom Construction Industries Contract type: EP
AMMONIA/UREA PLANT - Nevinnomyssk, Russian Federation Client: EuroChem Mineral and Chemical Company Contract type: E
AMMONIA PLANT NANGAL - Punjab, India Client: National Fertilizers Ltd. Contract type: EPC
< 200 Mn Euro 200 to 500 Mn Euro 500 to 1,000 Mn Euro > 1,000 Mn Euro
5 4 3 21
16
18
19 11 14
2
1
17
8 13
7
12
9
6 15
UREA LICENSING BUSINESS 12
EVOLVE CAPACITY™ Revamp - Henan Xianxiang, China Client: Henan XLX Fertilizer Contract type: Licensing, PDP
13
EVOLVE EMISSION™ Revamp - Al Jubail, Kingdom of Saudi Arabia Client: Al-Bayroni (Sabic affiliate) Contract type: Licensing, PDP
14
15
16
17
18
LAUNCH MELT™ Ultra Low Energy Design - Jiujiang, China Client: Jiujiang Xinlianxin Chemical Fertilizer Co., Ltd Contract type: Licensing and PDP EVOLVE PRODUCT™ - Grodno, Belarus Client: P.O. Azot, Grodno Contract type: Licensing and PDP
LAUNCH MELT™ Ultra Low Energy Design - Sanning, China Client: Hubei Sanning Chemical Industrial Co., Ltd Contract type: Licensing and PDP
19
LAUNCH MELT™ Pool Condenser Design - Brunei, Brunei Client: Brunei Fertilizer Industries Contract type: Licensing and PDP
20 EVOLVE CAPACITY™
LAUNCH MELT™ Pool Reactor Design and granulation - Togliatti, Russia Client: PJSC KuibyshevAzot Contract type: License, PDP and BEP
EVOLVE CAPACITY™ - Lutherstadt Wittenberg, Germany Client: SKW Piesteritz Contract type: Licensing, PDP, BEP and equipment
- Augusta, USA Client: PCS Nitrogen Augusta Contract type: Licencing, PDP and equipment
21
EVOLVE ENERGY™ - Geleen, The Netherlands Client: OCI Nitrogen B.V. Contract type: Licensing, PDP and equipment
ENHANCING TECHNOLOGY PORTFOLIO: NITRIC ACID PLANT DESIGN THE CHALLENGE
To design a nitric acid plant with maximum energy recovery and lowest investment costs for single-train capacities up to 1,600 mtpd (100% HNO3).
GROUP’S SOLUTION
The Group, through its operating company Stamicarbon, has been licensing a range of nitrate technologies since the 1930s and has designed over 40 nitric acid plants. By applying many decades of experience and retaining the reliability and operability from industrially proven elements, we are able to offer our customers a best-in-class, dual-pressure nitric acid technology for single-train capacities up to 1,600 mtpd (100% HNO3). Our solution is designed for maximum energy recovery with lower investment costs that meets the highest safety and environmental emission standards. We are eager to incorporate customer requests into our bespoke plant designs in order to meet specific design requirements.
WHAT WE OFFER • Renowned reputation globally • Outstanding technologies and services • Tailor-made plant designs that meet customer specific needs • Full life cycle support
OIL&GAS REFINING 130,000 BOPD 73,000 BOPD
CRUDE REFINERY CAPACITY, CORU MOSCOW REFINERY UPGRADING PROJECT
OIL TREATMENT CAPACITY, ADCO AL DABB’IYA PHASE III PROJECT
370 KM
GATHERING AND EXPORT PIPELINE NETWORK, ADCO AL DABB’IYA PHASE III PROJECT
88,000 TONS
STEEL STRUCTURES GAZPROM (NIPIGAS) AMURSKI GAS PROCESSING PLANT
2,150 MMSCFD GAS TREATMENT CAPACITY, GASCO HABSHAN 5 * SEE FERTILIZERS VALUE CHAIN AT PAGE ** SEE POWER VALUE CHAIN AT PAGE
The Group, through its subsidiaries Tecnimont and KT–Kinetics Technology, has grown with considerable expertise and numerous references in the oil and gas sector, including refining and LNG terminals. We have consolidated our position in oil and gas, both upstream and downstream, with contracts for mega-gas processing complexes, oil field development mega-project and refinery in many the process units. The Group has matured first-class reputation in the Gulf region by its successful completion of EPC contracts in the Kingdom of Saudi Arabia, Kuwait, Qatar and the UAE. The Group has also won major contracts in Russian Federation, CIS, Europe (Poland), Azerbaijan and India. Moreover, through KT, the Group operates internationally as a provider of proprietary technologies in Sulphur recovery and hydrogen production and as supplier of critical equipment. Significant EPC/EPCm refinery projects are under execution in SOCAR Baku Refinery, in GAZPROMNEFT Moscow and OMSK Refineries (New complete Hydroskimming Refinery, new DCU Unit), in Total Antwerp refinery (ROG) and LOTOS Gdansk Refinery (DCU Complex, Naphta hydrotreater, vacuum distillation, HPU).
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ONGOING PROJECTS 1
OIL GATHERING, TREATMENT, EXPORT AL DABB’IYA PHASE III - Abu Dhabi, United Arab Emirates Client: ADCO Contract type: EPC
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DELAYED COKER COMPLEX PROJECT AND HYDROWAX VACUUM DISTILLATION - Gdansk, Poland Client: LOTOS Asfalt SP. ZO.O Contract type: EPC
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COMBINED OIL REFINING UNIT (CORU) MOSCOW REFINERY - Russian Federation Client: JSC Gazprom Neft Moscow Refinery Contract type: EPCm IGD EXPANSION PROJECT (IGD-E1), GAS TREATMENT AND MARINE WORKS - Das Island, United Arab Emirates Client: ADGAS (Adnoc Group) Contract type: EPC (Consortium Archirodon)
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CLEAN FUEL PROJECT - Rabigh, Kingdom of Saudi Arabia Client: Petro Rabigh Contract type: EPC
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NEW HYDROGEN PRODUCTION UNIT CADEREYTA REFINERY - Cadereyta (Monterrey), Mexico Client: Pemex Refinación Contract type: EPC
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MODULARIZED HPU, HDT, DEWAXING OF DIESEL FUEL PROJECT - Omsk, Russia Client: JSC Gazprom Neft Contract type: EP – LS SULPHUR RECOVERY UNIT - Mostorod, Egypt Client: Egyptian Refinery Company Contract type: EP SULPHUR RECOVERY UNIT, SOUR WATER STRIPPER, AMINE RECOVERY - Milazzo, Italy Client: RAM (Raffineria di Milazzo) Contract type: EPC – LS
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HYDROGEN PLANT - Al Daura, Iraq Client: Midland Refineries Company Contract type: EPC – LS OIL AND GAS TREATMENT “TEMPA ROSSA“ - Corleto Perticara, Italy Client: Total E&P Italia SpA (Total Group) Contract type: EPSCC AMURSKI GAS PROCESSING PLANT, UI&O PACKAGE 3 – Amurski, Russian Federation Client: JSC NIPIGas (General Contractor for GAZPROM) Contract type: EPC (Consortium SEG) MODERNIZATION BAKU OIL REFINERY, HAOR PROJECT - Baku, Azerbaijan Client: SOCAR HAOR (JV KT) Contract type: EPC DELAYED COKING UNIT (DCU) OMSK REFINERY - Omsk, Russian Federation Client: JSC Gazprom Neft Omsk Refinery Contract type: EPCm
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MAIN COMPLETED PROJECTS 15
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INTEGRATED GAS DEVELOPMENT, HABSHAN 5 - Abu Dhabi, United Arab Emirates Client: GASCO Contract type: EPC (JV JGC) AROMATICS COMPLEX - Shuaiba, Kuwait Client: Kuwait Paraxylene Production Company (KPPC) Contract type: EPC (Consortium SKEC) WAFA GAS PLANTS PROJECT - Mellitah and Ghadames Basin, Libya Client: AGIP GAS BV Contract type: EPC (JV JGC)
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LNG TERMINAL CHENTOUJIA - Guangdong, China Client: Guangdong LNG JEO Contract type: EPC (JV Saipem)
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SULPHUR RECOVERY UNIT - Burgas, Bulgaria Client: OOO Lukoil Neftochim Burgas AD Contract type: EPC
- Khabarovsk, Russian Federation Client: Khabarovsk Oil Refinery Contract type: EP – LS
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PRODUCTION PLANT - Perm, Russian Federation Client: Lukoil Permnefteorgsintez Contract type: EPC
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MILD HYDROCRACKING UNIT - Busalla, Italy Client: IPLOM Contract type: EPC
- Rijeka, Croatia Client: Ina Industrija Nafte Contract type: EPC
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24 SULPHUR RECOVERY UNIT & TAIL
GAS TREATMENT - Nynashamn, Sweden Client: Nynash Refinery AB Contract type: EPC – LSTK
25 REFINERY OFF GAS (ROG)
PROJECT - Antwerp, Belgium Client: Total Olefins Antwerp Contract type: EPC
< 200 Mn Euro 200 to 500 Mn Euro 500 to 1,000 Mn Euro > 1,000 Mn Euro
INTEGRATING GROUP COMPETENCES FOR REFINING The Group intends to leverage the existing capabilities in Oil&Gas Refining of two contractors Tecnimont and KT–Kinetics Technology in order to synergistically target Refining as specific business focus. This commercial proposition is based on the current drivers in the industry which on the one hand push towards an increase of the conversion rate of the oil barrel processing, thanks to the best available technologies, and on the other hand request “clean fuel programs” in line with stringent environmental regulations not only in matured but also in emerging countries. Moreover, in the oil and gas market a worldwide trend is arising consisting in the combination of refining and petrochemical units into large integrated complexes, improving efficiency of the output. The companies’ skills are not limited to process engineering, but concern all the disciplines involved in project management, from feasibility to the turn-key phase, guaranteeing the project a design-to-cost engineering and a construction-driven approach. Examples of projects ongoing are: OMSK and Lotos Delayed Cokers – in which the improvement of output efficiency and the mitigation of environmental impacts are combined with partnerships with strategic Polish suppliers and local subcontractors – and upgrading and modernization of important existing major refineries: Combined Oil Refinery Unit (CORU) Project by JSC Gazprom Neft, and Socar Baku Modernization Project, which represents a capital milestone in downstream refining.
POWER
#7
WORLD TOP 10 POWER MARKET ENGINEERING COMPANIES 2016*
44
COUNTRIES
21,000
MW INSTALLED
280
PROJECTS SINCE
1962 *ENR Global Sourcebook 2016 Directory
The Group can count on considerable expertise and experience in the engineering and design of advanced electricity generation projects in Italy and abroad. Our skills embrace simple and combined-cycle gas turbines, cogeneration, coal-fired plants, and biomass plants; electricity generating units forming part of Maire Tecnimont’s oil & gas, petrochemicals and fertilizer projects; electricity distribution networks for civil and industrial use; and district heating systems. The Group also provides clients with project management consultancy services and due diligence services, along with feasibility studies and front-end engineering design. Our high-level engineering services match the use of resources to the specific needs of Clients and to their projects.
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We deliver reliable facilities based on the most advanced technologies with the minimum environmental impact, thus ensuring that energy costs remain low throughout the supply chain and minimizing the impact on final consumers and project stakeholders.
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ONGOING PROJECTS 1
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PULVERISED COAL POWER PLANT 2X376 MW - Punta Catalina, Dominican Republic Client: CDEEE Contract type: EP (Consortium Odebrecht and Estrella) OIL AND GAS TREATMENT “TEMPA ROSSA” 38 MW - Corleto Perticara, Italy* Client: Total E&P Italia S.p.A. (Total Group) Contract type: EPSCC
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FERTIZER COMPLEX 27 MW - Aswan, Egypt* Client: KIMA Contract type: EPC AMMONIA COMPLEX 18 MW - Kingisepp, Russian Federation* Client: Kingisepp Russia Contract type: EPC *Utility plant **Power utilities projects < 200 Mn Euro 200 to 500 Mn Euro 500 to 1,000 Mn Euro > 1,000 Mn Euro
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COMBINED CYCLE 850 MW - Turbigo, Italy Client: Edipower Contract type: EPC (Consortium Techint, Siemens)
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COMBINED CYCLE 840 MW - Piacenza, Italy Client: Edipower Contract type: EPC (Consortium Techint, Siemens)
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COAL POWER PLANT 720 MW - Ceará, Brazil Client: MPX Pecem Geraçao de Energia S.A. (MPX and EDP) Contract type: EPC Third Line “Pecem 2” 365 MW (Consortium Efacec)
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COAL POWER PLANT 370 MW - Coronel, Chile Client: Colbun Electricity Company Contract type: EPC (Consortium SES) BOCAMINA COAL POWER PLANT 370 MW - Coronel, Chile Client: ENDESA Chile Contract type: EPC (Consortium SES)
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- Maranhão, Brazil Client: Diferencial Energia Empreendimentos e Participaçoes Ltda (MPX) Contract type: EPC (Consortium Efacec)
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WAFA GAS PLANTS PROJECT DESERT & COASTAL 120 MW - Mellitah and Ghadames Basin, Libya** Client: AGIP GAS BV Contract type: EPC (JV JGC) COMBINED CYCLE 97 MW - Valona, Albania Client: Albanian Electro-Energy Government Authority (KESH) Contract type: EPC IOWA AMMONIA COMPLEX 20 MW - Wever, Iowa, USA* Client: ORASCOM E&C Contract type: EP
NEOSIA: GROUPâ&#x20AC;&#x2122;S COMMITMENT TO RENEWABLE ENERGIES Maire Tecnimont is focused on renewable power generation through the dedicated subsidiary NEOSIA, operating worldwide in wind and solar sectors. The Group strategy is based on the view that renewable energy projects have been increasing their size in many geographies and the project management experience of a reputable engineering contractor as Maire Tecnimont can be positively recognized by international operators. Neosia provides high quality services along the whole value chain, from development and design to EPC, leveraging the Group global network.
WIND FARMS (MEXICO) In February 2017 the Group has been awarded a contract related to Detailed Engineering, Procurement, Construction, Pre-Commissioning and Commissioning of Civil and Electrical Infrastructure for a Wind Project. The Plant, located in the state of Coahuila, Mexico, will be one of the largest wind plant in the country placed in an area of about 10,000 ha. Construction phase involves more than 1,000 people at peak with a high impact in terms of local workforce employment, both in subcontracting (almost 100% local) and in supervising activities. More than 135 km of internal roads have been realized with 550,000 m3 of earth movement; 4,000 ton of steel and 45,000 m3 of concrete have been used for wind turbine foundations. 90 km of HV overhead line will connect the plant to the grid, through a dedicated 230/138kV switching station of 90,000 m2. Once active, the entire wind farm will provide to 450,000 Mexican households with energy from renewable sources, avoiding emissions of around 435,000 tons of CO2 per year equal to those produced by more than 70,000 cars. The project entails local flora and fauna redemption before operation and during execution phase 2 water wells have been restored in the desert areas of the site.