THG Quarterly // June 2018

THE LATEST NEWS FROM THE HERITAGE GROUP JUNE 2018

IN THIS ISSUE

T H E H E R I TA G E G R O U P | T H G R P. C O M

P2 O N E H E R I TA G E : DOT OUTREACH P3 M A C R O T R E N D S Q 2 : AUTONOMOUS VEHICLES Heritage Family, In my end of year note in December, I wrote about the results from our 2017 Companywide Employee Survey. Over the past several months we have been working hard to respond to your feedback with a simple mantra: “You Asked, We Listened.”

For example, we heard loud and clear that young leaders wanted a pathway to

professional and personal growth so we launched two new training programs:

P4 P E O P L E I N T H E S P O T L I G H T : CARALYN CLARK SOMETHING YOU SHOULD KNOW HRG LIGHTER FLUID STUDY

Connect, Collaborate and Innovate and Leadership Exploration and Development.

We also heard that we needed to improve internal communications at The

Heritage Group. There was a thirst to better understand what The Heritage Group and our family of companies were doing. And were interested in finding ways to collaborate and innovate together.

We heard you loud and clear and have taken steps to improve communications

and stay better connected. This inaugural issue of the THG Quarterly newsletter is yet another example of our commitment to share information about The Heritage Group and to continue learning from each other. We will publish this newsletter on a quarterly basis and will ensure all employees receive it via email or at company facilities.

Beyond sharing news about THG and our people, this is also an opportunity to

create a dialogue. This newsletter is for you so please reach out and tell me on how we can improve this newsletter. Please also share your ideas on success stories we should highlight in future issues.

Thank you for your continued commitment to THG. 2018 has been an incredible

year, and the road ahead is filled with opportunities for THG, our business, and our people.

Amy

Be Safe.

AN UPDATE FROM AMY SCHUMACHER PRESIDENT OF THE HERITAGE GROUP

P5 B U S I N E S S U P D AT E : BIOSYNTHETIC TECHNOLOGIES ACQUIRED P6 C E N T E R S TA G E : UPDATES FROM THE CENTER

IT DEMONSTRATED HOW PROFESSIONAL, GIVING AND COMMITTED THG IS TO THE ROADBUILDING INDUSTRY.

STATE OUTREACH

DEPARTMENTS OF TRANSPORTATION

Over the past several months, several

Valley and Asphalt Materials to provide

and committed THG is to the road-

Heritage Group companies have met

an excellent facility for the course.

building industry.

Additionally, in April Champaign

have increased their outreach to the

The class typically attracts 60

Indiana and Illinois Departments of

students comprised of contractor,

Asphalt hosted approximately 10 Illinois

Transportation. This outreach deepens

consultant and INDOT technicians

Department of Transportation repre-

our existing relationships and creates

that are required to pass the class to

sentatives at The Center. In addition to

new opportunities for us to work together

become certified to test and approve

getting a tour of the facility, including

to enhance our local infrastructure.

HMA mixes used on DOT jobs. The class

the Heritage Group, the IDOT officials

included members of the THG team and

were also briefed on the wide array of

hosted the Indiana Department of

In January 2018, The Heritage Group

representatives from customers of U.S.

services and materials THG produces

Transportation/Asphalt Pavement

Aggregates and Asphalt Materials. This

and provides the entire industry.

Association of Indiana Certified QC/QA

enabled THG to showcase the new facility

Technican class at the Center. This was

to customers, agencies representatives

Champaign Asphalt is hopeful it can

an excellent opportunity for the Heritage

as well as competitors. In addition to

host more representatives from the

Research Group along with APAI members

being a great networking event, it also

IDOT over the next several months.

Milestone, Walsh and Kelly, Wabash

demonstrated how professional, giving

Š THE HERITAGE GROUP 2018 | THGRP.COM | J U N E 2 018 | PAGE 2

It was a productive visit and

MACROTRENDS Q2

AUTONOMOUS VEHICLES Autonomous vehicles are slowly becoming a

30K

reality and will likely transform our transportation system, economy, and the way we work and live. While we are still decades away from a complete switch to fully autonomous vehicles, we have already begun to see partially autonomous vehicles on the road.

ROAD DEATHS EACH YEAR. THE LEADING CAUSE: HUMAN ERRORS

The numbers of these vehicles and their level of autonomy will increase as the technology becomes more sophisticated.

Major automakers and tech giants such as Autonomous vehicles use a combination of

Google, Tesla, and Uber are investing billions

radar, optics, sonar, lidar (light detection and

of dollars to reach the goal of fully autono-

ranging), GPS, and infrared sensors to gather

mous fleets of vehicles. The major barrier is

data about their environment allowing the

the need for extensive testing to enable the

car to be driven without human intervention.

vehicles to make the right decisions on the

Partially autonomous vehicles are available

road. The decision making process of au-

today and provide functions such as lane

tonomous vehicles will be greatly enhanced

assist, keeping the car within the lanes of

as they become commonplace on the road

a highway, and crash avoidance features,

and we adapt our infrastructure to this

allowing the car to remain a safe distance

new level of transportation. This will allow

from other cars without the driver’s help.

autonomous vehicles to communicate with

120 BILLION

$

AMOUNT TRAFFIC CONGESTION COSTS THE U.S. EACH YEAR

other autonomous vehicles and interact with The potential impact of autonomous

technologies embedded in the infrastructure

vehicles extends far beyond the benefits

to share data and coordinate movements.

they will provide for personal transportation and freight. The technology has the

Autonomous vehicles will greatly impact

potential to save thousands of lives and

several of the industries The Heritage Group

add billions of dollars to the economy each

is involved in, and we are preparing for this

year. Autonomous vehicles will rid traffic

challenge. The Heritage Group is leading an

of most human errors, the largest cause of

effort to create the intelligent highways of

the 30,000 deaths each year on the road.

the future with passive and active sensors

Further, roads filled with connected, auton-

built into the infrastructure of the road.

omous vehicles will significantly reduce

This and other efforts will help us turn the

traffic congestion, which currently costs

challenge of autonomous vehicles into an

the U.S. around $120 billion a year.

opportunity for future growth.

Š THE HERITAGE GROUP 2018 | THGRP.COM | J U N E 2 018 | PAGE 3

FUTURE

OF ROADS THG PROJECT THAT EXAMINES IMPACT OF AUTONOMOUS VEHICLES

SOMETHING YOU SHOULD KNOW FUN SCIENCE: HRG LIGHTER FLUID STUDY HRG held a BBQ at The Center to compare two new and eco-friendly Calumet lighter fluids with popular competitors. Participants not only provided valuable feedback, but were also treated to chicken, burgers, shrimp and veggies.

N C A R A LY

CLARK

PEOPLE IN THE SPOTLIGHT After 27 years at The Heritage Group,

She made hundreds of acetate presentations,

Caralyn Clark retired in May 2018. Caralyn

took thousands of messages, and helped

was an institution at The Heritage Group

ensure HRG scientists could focus on

and spent the majority of her career at

research and innovation by ensuring

the Heritage Research Group.

administrative operations ran smoothly.

She began her career in The Heritage

But more importantly, Caralyn brought

Group’s Word Processing Department in

folks together. She loved HRG and helped

1991 during a time when most employees

onboard hundreds of employees over the

did not have their own computers. Instead,

years, making them feel welcome. She

employees would hand-write their docu-

was also known for making homemade

ments and put them in a little wire basket.

birthday cakes for each and every HRG

The word processing department would

staff member. She always took requests

then pull them out, type up, and give back

and tried to accommodate them as much

to the originator. But after two years, a

as possible.

colleague encouraged Caralyn to apply for a position in the R&D group. She got the

Caralyn had a big heart and will be missed,

job and spent the next 25 years in a variety

but after nearly 30 years of working with

of roles in that group.

The Heritage Group, she is now enjoying retirement with her husband, Ron, their

Over the years she worked closely with

children and grandchildren.

Tony Kriech and Herb Wissel to support the growth of the R&D group into what

Thank you, Caralyn for your dedication

is now The Heritage Research Group.

to The Heritage Group.

Š THE HERITAGE GROUP 2018 | THGRP.COM | J U N E 2 018 | PAGE 4

BUSINESS UPDATE:

BIOSYNTHETIC TECHNOLOGIES Calumet Specialty Products Partners partnered with The Heritage Group to make

BIOSYNTHETIC BASE OIL

a significant commitment to renewable base

OECD 301B READY BIODEGRADABILITY TEST

89.5% 65.3%

oil technology through the acquisition of Biosynthetic Technologies. The acquisition was announced on April 9, 2018 and represents our long-term vision of producing innovative value-enhancing specialty products for our customers and partners.

Following the acquisition, core members of the technology and marketing team of Biosynthetic Technologies joined the Biosyn Holdings, LLC a joint venture

ESTIOLIDE

| ISO 32 | SE68

ESTIOLIDE

| ISO 100 | SE158

% BIODEGRADED IN 28 DAYS

company created by Calumet Specialty Partners and The Heritage Research Group to continue the development and commer-

explored. Maybe even more importantly,

cialization of the estolides technology.

this approach demonstrated to a broad range of Heritage employees the power

This acquisition truly embodied the One

of a collaborative teamwork approach.

Heritage approach. Team members from Calumet, Heritage Research Group, Monu-

Currently, The Heritage Group and Calumet

ment, The Heritage Group and Biosynthetic

are exploring a range of alternatives

Technologies came together at the center

to maximize the value of the acquired

for 30 days where they assessed the tech-

estolides technology across a diverse

nology and came together to close a deal.

portfolio of products and solutions in a

This collaborative approach not only creat-

variety of end-markets. One of the first

ed a clear path forward for the technology,

potential uses of this proprietary technology

but also unlocked potential additional uses

is commercial production of renewable

for the technology that are currently being

esters at Calumets’ Missouri plant.

Š THE HERITAGE GROUP 2018 | THGRP.COM | J U N E 2 018 | PAGE 5

EVEN AFTER USE, OUR OILS ARE BIODEGRADABLE AND LESS TOXIC THAN PETROLEUM

THE LATEST HAPPENINGS AT THE CENTER

CENTER STAGE HOOSIER SCIENCE & ENGINEERING FAIR Roughly 150 students from across the state of Indiana came to The Center for their chance to make it to an international science fair. Students ranged from 4th grade to seniors in high school. More than 100 people came to judge the competition. The HSEF supports STEM education and the students are the top in their class from across the state with an interest in science/chemistry.

TALENT SUMMIT

HABITAT FOR HUMANITY BUILD

For the 10th year in a row, The Heritage Group partnered with Habitat for Humanity to build the components of a house in The Center parking lot for a deserving Indianapolis family. Over 50 THG employees participated in the build despite the cold weather.

The first Indy Talent Summit was held at The Center in April, bringing together 15 community and company leaders from across the Indianapolis area to discuss challenges, needs and resources related to employment and recruiting. Individuals from Lilly, Roche, Indy Chamber, T-Map, Ascend, in addition to many other organizations, were in attendance.

By taking a more collaborative effort in making our city a great place to work, we all win!

MITCH DANIELS FOUNDATION DINNER

The Center hosted the Mitch Daniels Foundation Dinner on March 22. The event was attended by more than 300 people, including leaders of the community and local and state elected officials.

At the event, Scott Dorsey was awarded the Daniels Prize Award for extraordinary contributions to leadership development in Indiana.

Do you know of an item that should be featured in our newsletter?

Please send content or photos to Will Hummel at whummel@thgrp.com

Š THE HERITAGE GROUP 2018 | THGRP.COM | J U N E 2 018 | PAGE 6