CGH bedrijfskrant september 2013

CGH Group NEWS BULLETIN

September 2013

Summer is gone...

Dear friends,

Inside this number: New customer in Germany

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XL Container for New Caledonia

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Orders in drilling business for Exxon Mobil to Iraq

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New order from Drillmec

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TCI goes rural

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Other PGNiG assets show their interest in Thermoflex pipes to transport reservoir water

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Final works in Petrotank RSA

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New order in water filters segment

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CGH Nordic receive orders on tanks for Otjikoto Mine Power Plant in Namibia, Africa

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Our employees

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Whilst we all are running around, getting orders and realizing great projects, we are unexpectedly and shockingly faced with a fact that makes all this disappear and of less importance. Indeed, the sudden loss of a great colleague and friend makes us realize how short and unpredictable life is.

Janek was a good man - appreciated by everybody - respected for his work capacity, his humour and his friendship. In a flash, he was taken from us in a most terrible car accident on his way to work for the company.

Robert, his son, and Artur - his good friend who travelled with him daily to and from Bydgoszcz home - were badly hurt in the accident and are still fighting for their lives.

We write words of respect and say goodbye to Janek further in this bulletin. We share our feelings of loss and great sadness with the families and beloved ones whom Janek has left behind.

Best regards, Chris D’Hondt

Chris D’Hondt CEO of CGH Group

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CGH Group

New customer in Germany

“The tanks are manufactured according to DIN norm and come with a compliancecertificate of TÜV Nord Systems.”

In May 2013 CGH Polska entered into a 2-year contract with BP Europe SE / ARAL in Germany for the delivery of fuel tanks. Under the brand name ARAL, BP operates the largest network of fuel-stations in Germany with about 2500 stations.

The tanks are manufactured according to DIN norm and come with a compliancecertificate of TÜV Nord Systems. The QS-system and production of CGH Polska was audited by TÜV Nord Systems in June and the first delivery of tanks to Berlin took place in July.

Up to now we delivered tanks for 4 newly-built ARAL fuel stations to Germany and another one is scheduled for the middle of September.

September 2013

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XL Container for New Caledonia

CGH Poland delivered in August a container station for our distributor in France, who is implementing a project for the supply of tanks and dispensers to Pacific Group in New Caledonia.

Container station CG3 is a standard product, based on a tank with a capacity of V30m3 (15/15) diameter of 2500 mm. On the equipment list is also a loading pump for gasoline.

The steel structure and tank are painted in class C5 resistant paint for the marine environment and the walls are made of insulated sandwich panels with customer graphics and logos.

It was the 25th project done for our distributor in France since 2009.

Orders in drilling business for Exxon Mobil to Iraq CGH Polska received a third order from Drillmec for a set of diesel storage tanks used at the oil well surface installation for petroleum and gas exploration.

We received the first order in 2012 for two storage tanks of capacity 60m3, each put on a platform to move them on to site. The tanks were supplied with pumps and automatic tank gauges and were delivered from Poland.

A similar project (2 tanks from CGH each 80m3) was delivered to Kurdistan beginning 2013.

Currently, a third project is being undertaken for oil well surface installation of petroleum and gas extraction in Iraq operated by Exxon Mobil.

The Exxon Mobil, bought in Italy a drilling device for shale gas exploration together with 3 tanks 80m3 equipped with pumps, filters and level monitoring. Drillmec Italy ordered the tanks in CGH Polska. When tanks are completed, they will be shipped at the end of September from Bydgoszcz to Italy, then transported by ship to the Middle East.

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September 2013

TCI goes rural

To drive up the production of three Lithuanian collective farms which were built during the Soviet empire, it as decided to invest in a giant corn drying installation. In the past some smaller dryers were powered by diesel engines but for this upgrade the new installations are powered by Propane gas. For the connections between the underground LPG tanks and the drying units, it was decided to install the advanced Thermoflex/LPG pipes from TCI. Using this high pressure Thermoflex/LPG pipe is definitely a cheaper solution than using an ordinary low pressure PE pipe in combination with an expensive vaporizer.

This solution was proposed by Melvilus, a Lithuanian gas installation company which got into contact with TCI at the European LP Gas event in Brussels last year. Melvilus will continue to promote this solution to other collective farms in Lithuania, Belarus and Kaliningrad.

We’re looking forward already to the World LP Gas Forum 2013 in October in London. Who knows what new and interesting applications the show will bring us this year?

“Using this high pressure Thermoflex/ LPG pipe is definitely a cheaper solution than using an ordinary low pressure PE pipe in combination with an expensive vaporizer.”

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CGH Group

Other PGNiG assets show their interest in Thermoflex pipes to transport reservoir water

“Two new projects were discovered for Thermoflex pipes in order to replace corroded steel pipelines used to transport reservoir water.”

After a successful installation of the 900m high pressure water reservoir water line in Ujazd (cfr. previous CGH bulletins), TCI attracted the interest of other PGNiG companies in Thermoflex pipes. On the August 29th 2013, PGNiG Tarnów invited TCI to give an in depth presentation about Thermoflex pipes. Decision making people from the Upstream and Technical Department were invited to attend this presentation.

Maciej Gajc (CGH Project Manager), explained together with Karim D’Hondt (TCI Business Development Manager), the advantages and applications of Thermoflex pipes.

Two new projects were discovered for Thermoflex pipes in order to replace corroded steel pipelines used to transport reservoir water. These projects will probably be executed next year as PGNiG resolves some problems with the land owners.

Final works in Petrotank RSA Almost all is set! The official plant opening of our new factory in South Africa is planned for October 24th. For the last two months workers from CGH Polska were in Krugersdorp to help with setting-up the production lines and with assembling the new machines.

Look at the next page how the progress looks like...

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September 2013

View of mounted production line in RSA for tanks’ welding.

Rafał Bogusz from CGH Polska prepares foundation for bending machine before pouring.

RSA’s worker makes first cuts on a guillotine machine.

Bending machine with a newly poured foundation.

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CGH Group

New order in water filters segment In August, Instalcompact, a key engineering company in Poland in segment of water systems, placed an order for the supply of 12 filters and 3 aerators for the fresh water treatment installation.

Filters and aerators are based on a single skinned vertical tank painted inside with paint certified for a drinking water. The filter body is a dishend + 2200mm cylinder.

The value of the contract exceeds EUR 100 000.

It is planned to sign a framework agreement for the supply of all water tank to Instalcompact.

A different order from Instalkompact is for storage single-wall tank V 100m3 for drinking water.

CGH Nordic receive orders on tanks for Otjikoto Mine Power Plant in Namibia, Africa CGH Nordic A/S has won a contract to deliver tanks to a new gold mine in Otjikoto, Namibia. The contract consists of 6 different tanks for the power plant. The tanks will be delivered including isolation and heating pipe / element.

The Otjikoto gold project is located 300 kilometres north of Namibia’s capital city of Windhoek between the towns of Otjiwarongo and Otavi.

Construction is scheduled for completion in the fourth quarter of 2014 when mill production is expected to begin and the first gold production from the Otjikoto gold project is scheduled.

The tanks produced by CGH will be ready for shipment primo November 2013. The client will then take care of the +15.000km long transportion.

Currently, B2Gold Namibia employs more than 150 people and expects to increase this to more than 600 people in the third quarter.

Pre-production expenditures for the first half of the year totalled approximately $65.8 million (on a cash basis), including mobile equipment purchases of $22.9 million.

Our client Semco Maritime will visit our production facility in Poland, and we look forward to presenting our factory.

CGH Nordic A/S has now delivered tanks from the south of Africia to the north of Greenland, and feels confident that the amount of orders coming from outside the normal “local area” will continue to increase.

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CGH Group

Our employees BABY ON BOARD! Anzhelika Kobylkina , general director of CGH Rus gave birth on July 12th to a beautiful son Ivan.

Congratulations from the whole of CGH to the proud parents!

R.I.P.

Jan Janeczko 1954 –2013

Wednesday, August 28th, will be the day that stays for a long time in our memories.

On his way to work, in a terrible car crash, our colleague Jan Janeczko died.

Janek was known as a warm, kind and funny person. Always smiling and very helpful.

Whenever asked for help, he was always there. A lot of us saw him as a person who would give his heart on a hand if he only could. Colleagues from production will remember him as an avid angler. He always had rods in a boot of his car… just in case.

Janek worked for CGH Polska for last 10 years.

Rest in peace Janek.

You’ll stay forever in our memory.

CGH Group News Bulletin Srebrna 39 85461 Bydgoszcz, Poland Phone: +48 52 370 6666 Fax: +48 52 370 6660 E-mail: marlena.arndt@cgh.com.pl