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BUSINESS NEWS CGH Group Bulletin June 2013

Dear Friends, With a few days delay our June bulletin is again here for you . South Africa is clearly the theme of 2013 . As you will see a lot has happened in the last 3 months and we are ready to tackle the South African market as from next month . Several new products have been launched : I think of our manifold and crash barrier , new water filters , first LPG reference in the Russian market , international cooperation with market leaders like Nupigeco… And we don’t stop there , new developments are on the table . The new Morroco factory is running at speed with an order intake end of June 17% above 2012 proving that even in crisis times quality and efficiency are the way to succeed . The next half of 2013 will be busy as well and we need all your power and dynamism to continue the line of success . But I have no doubt that with the capital in people CGH Group has , this will be no problem .

Chris D’Hondt - CEO of CGH Group

I wish you all a splendid holiday time and a great second half of the year . Kind regards , Chris D’Hondt

June’s news: 

Machines for Petrotank RSA

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LPG in Russia

TCI’s participation in exhibitions in Ufa and Baku

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CGH Polska’s first order in Water Filters segment

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Welcome to our RSA sales team !!!

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Petrotank RSA signs distributorship with Nupigeco in Bologna

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OMV Yemen team’s training

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Shipment and start-up of Petrotank South Africa

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Petrotank Morocco’s first order from SDCC

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CGH Polska prepares machines for the new factory of Petrotank RSA For the new tank production in Johannesburg, three production lines for tanks were prepared and tested by CGH Polska, ready to be installed.

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1 assembly line DEUMA and welding line for tanks dia. 1600 up to dia. 2900

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1 assembly line for tanks dia. 1600 up to dia. 2500

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1 assembly line for small tanks dia. 1250 up to dia. 1600

To the lines belong 2 cutting shears, 2 rollers for steel plates and a bending machine. To finish the tanks, a grit-blasting unit and a painting unit for Endoprene-coating was provided. The machines are new or were reviewed, refurbished if necessary, adopted to the needs of Petrotank RSA and finally tested . In the photos you see some of the machines just before shipment.

Tank production line

WIMA painting unit - Graco pump 2k

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Assembly unit for tanks with crimped plates

Bending machine

Cutting shear Piesok

Many thanks to the maintenance team and the painting team at CGH Polska, who worked on the project from January until May 2013, often even on Saturdays.

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LPG in Russia In June 2013 in Tumen (Siberia) the first installation of Thermoflex / LPG in Russia took place. We are happy to mark another new point on the world map with our product !

Thermoflex installation in Tumen

TCI’s participation in Ufa Exhibition

TCI engaged Mr Victor Tsyganov as its Russian Agent. Victor studied international economic relations and was working previously as engineer in the department of material-technical supply and equipment, LLC «Gazprom transgaz Ufa».

Victor represented TCI at the UFA exhibition in Moscow where he made his first promising contacts in order to develop the business with Thermoflex pipes all over Russia.

Victor Tsyganov on Ufa Exhibition in Moscow

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Caspian Oil & Gas Baku Exhibition In order to develop the business with Thermoflex pipes around the Black and the Caspian Seas, TCI decided to exhibit in Azerbaijan (Baku) during the Caspian Oil & Gas exhibition. A couple of years ago, TCI already sold some pipes to Azerbaijan’s neighbouring country Georgia but since then nothing else happened. Victor Tsyganov was also present because most of the people don’t speak English but only Azeri or Russian.

TCI’s representatives during meetings with customers at the Caspian Oil & Gas Exhibition in Baku

During this exhibition we had some interesting contacts with the local MOCs (Socar, BP, Global Energy Azerbaijan) and at the same time had the chance to meet with our Turkish agent – Troya Engineering Company – who organized some meetings up-front and assisted us at our booth because they speak the Azeri language. Troya has the intention of organizing a technical meeting with all the MOCs in Azerbaijan in order to really penetrate the market.

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FIRST ORDER FOR WATER FILTERS IN CGH POLSKA !

CGH Polska received its first order in the new segment – Water Filters.

The product is a verticle pressure tank, with piping/equipment inside. It is painted inside (standard tank body is dishend + segment 1500 mm + dishend) Pressure Filters are used for oxidation and filtration of water for reduction of iron, manganese, ammonium, arsenic, and acidity in the ground and surface water. It is used in every city and village as part of water treatment units currently mandated in Poland under their modernization process. Filters are also popular in industrial segment as part of demineralization installations or ion exchangers. Industrial filters are more complex, compared to water filters. They are equipped very often with inside rubber layer and stainless steel piping systems. Currently new sales engineer – Krzysztof Bonin - is working on different projects with a total value of approximately 3Mpln in both fresh waters and industrial filters segments.

WOD-KAN FAIR Bydgoszcz , May 2013

Marcin Curyłło and Michał Dambecki from CGH Polska’s Technical Department were on CGH’s stand at Water Fair that took place in Bydgoszcz in May this year.

The filter in the picture will be delivered as part of the first order – filter dia 1600 – lateral distributor inside.

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WELCOME TO OUR RSA SALES TEAM !!!

RIANA BOTHA Sales Consultant - Tanks

Riana has 7 years’ experience in sales and marketing in the tank industry. She joined Petrotank SA on May- 1st 2013.

Petrotank South Africa, a member of the CGH Group, has been appointed as distributor in Southern Africa for the NUPI piping range. This will be in harmony and complementary to the TCI range of products and will give Petrotank South Africa the advantage of being a “one-stop-shop” to its valued customers. Furthermore, this will ensure that Petrotank South Africa is the leader in supplying a wide range of products and accessories for the retail petrol industry.

JACQUES BANN Sales Consultant - Accessories

Jacques has 5 years’ experience in sales and marketing of piping systems. He is specialist in NUPI systems and was engaged at Petrotank RSA on April 15th 2013.

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Petrotank RSA signs distributorship with Nupigeco in Bologna On Tuesday May 7th , CGH Group had a strategy meeting with NUPI , the worldleader in flexible piping , in Nupigeco’s production factory in Bologna . At this occasion Chris D’Hondt and Marco Genoni (CEO of NUPIGECO) signed a distributor contract for Petrotank South Africa becoming Nupigeco’s distributor for South Africa and surrounding countries . On the same occasion a closer cooperation between CGH Group and Nupigeco was discussed .

You see on the picture from left to right :

Maja Stirrat – area manager for Poland, Belgium, UK and others, Chris, Roberta Brusi – product manager SMARTFLEX, Jeff Booth – area manager Africa and Middle East

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TCI gives a Thermoflex training to OMV Yemen team in Romania

Already two years ago, TCI sold 12km of 4” Thermoflex pipes to OMV Yemen. These pipes were to be used as flow lines as an alternative to steel pipes. However, due to the dangerous and unstable political situation in this country, OMV employees had to leave Yemen and move to Dubai where they had to wait until the situation in Yemen became more stable. At the beginning of this year they got the green light to move back to Yemen and start the installation. Before installing our pipes, they had to be trained. As nobody from TCI felt comfortable going to Yemen, it was decided that the training would take place in Romania where the Videle project (cfr. CGH bulletin previous edition) was still ongoing. After a theoretical training, the OMV Yemen field engineers witnessed a 12” steel pipeline rehabilitation and had the possibility of putting on themselves several couplings. Till today, they haven’t installed our pipes yet but we were told that installations would start very soon. If everything works out fine during installation, more projects will follow in the future.

The OMV training in Romania After a theoretical training (…) engineers had the possibility to put on themselves several couplings.

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Shipment and start-up of Petrotank SA Willy Carpentier has been travelling in the past months to find and buy necessary machines for tank production in South Africa. He went as far as China to visit several suppliers. Some of the machines he acquired have been refurbished in Poland and built together with new parts bought from various locations ; others are brand new. In total 10 containers with machines were loaded in Poland, 1 in Belgium, 1 in Germany and 3 in China. From 15th July a Polish specialist team will go to South Africa to start with the assembling of the machines.

Welding towers and tank rotators loaded in China

Some shipments still need to be made, but after the installation of the machines which have been already sent, the first tanks can be produced in South Africa from the middle of August. The installation and first production batch will be made under Willy’s supervision to ensure a quality identical to the CGH standards.

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PETROTANK MOROCCO’S FIRST ORDER FROM SDCC The 6th of June PETROTANK SA Morocco signed a new contract for the supply of tanks for the new distribution company SDCC after international tender by SDCC. SDCC is a subsidiary of the biggest refinery in the Kingdom of Morocco, Samir.

Pictured from left to right: Mr Badr EL GBOURI - Sales Manager of SDCC Mr Jamal Khoujjane - MD of Petrotank showing the 1st order of double-walled tanks that will be installed in the first station of 200 to be completed before the end of 2018 Mr Aziz Lebetoubi - Technical Manager SDCC Mr Chris D’Hondt - CEO Group CGH

Willy Carpentier and Albert Moor, a Belgian expert in steel manufacturing spent a week at Berrechid to introduce optimal quality procedures and ISO techniques in the new factory. At the same occasion production processes will be looked at and optimized to work following the same standards as the rest

of the CGH companies. More weeks of Mr Moor have already been planned. From left to right: Khalid Fallaki - Production Manager, Jamal Khoujjane - MD, Willy Carpentier and Albert Moor.

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CGH Group Bulletin Contact: Marlena Arndt marlena.arndt@cgh.com.pl tel. +48 52 370 6666 mobile +48 692 458 737

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