2012 For Surface Protection

Customer Magazine by FSP

Largest project in the company's history from Sweden

Rolls-Royce propulsion units get durable surface treatment in Rauma

Cooperation with FSP allows Konecranes to focus on core business

Engineering unit develops standard painting system for Cargotec

Contents News Rolls-Royce propulsion units get durable surface treatment in Rauma Cooperation with FSP allows Konecranes to focus on core business Engineering unit develops standard painting system for Cargotec For Surface Protection is FSP’s customer magazine Editorial staff and layout: PR Agency VCA Cover photo: Antti Verkasalo Publisher: FSP Finnish Steel Painting Oy | Hiekkamäentie 4, FI-01150 Söderkulla, Finland | Tel. +358 9 278 6270 | Fax. +358 9 272 1636 Printed by Savion Kirjapaino Oy

About FSP

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SP Finnish Steel Painting Ltd, founded in 1964, is one of the largest surface treatment companies in Northern Europe. We employ more than 250 professionals, and our turnover for 2011 was about 30 million euros. Our almost 30 painting shops cover all parts of Finland. We also have ’ subsidiaries in Saue, Estonia and in Stargard Szczecinsk, Poland. We also have a branch office in Sweden.

We offer surface treatment services for bridges, storage tanks and large steel structures at our workshops or on location using our mobile equipment. We take full responsibility for projects following turn-key principles, which saves our customers time, increases their productivity and allows them to focus on their own core competencies.

Our strong business reputation, long experience in the industry and certified management system ensure that our durable, high-quality final products fulfil the most stringent industry standards. Our surface treatments protect our customers’ products, which improves their durability and operating life, as well as increasing maintenance intervals.

We follow the principles of sustainable development in our operations. We collect all waste, store chemicals safely and use non-polluting working methods.

We are constantly investing in the well-being and continued professional skill development of our workforce.

We follow the ISO 9001, ISO 14001 and OHSAS 18001 quality, environmental, occupational safety and health standards. Our clients include small, medium and large businesses. Please see our full range of services and references at www.fspcorp.com and get in touch! ■

We want to improve productivity

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his is still the answer we hear most often when we ask our client why they want to start cooperation with us. In this customer magazine, For Surface Protection, we share and discuss our latest news concerning the company’s internationalisation and the deep understanding of the needs of the surface treatment industry.

The reasons for cooperation are often well grounded. The client needs professional surface treatment services, which also promote the continuous improvement of quality. The client’s primary goal is to maintain the innovativeness of surface treatment and keep it at the forefront of development, through cooperation with an expert partner.

Clients also require short lead times, because in the supply chain, the surface treatment process has to take place at exactly the right time. Finished products have a tight delivery schedule agreed beforehand that everyone has to follow.

The client expects that their partner is able to offer considerable capacity, because production volumes might increase occasionally. So the partner has to be prepared to recruit more surface treatment workers from other plants of the company.

Times change and reporting must meet the requirements of current and also new quality and environmental legislation. The client needs a partner who can document the various technical work phases and conditions of surface treatment. Requirements to investigate new standard painting systems that meet constantly renewed standard needs are also becoming more common.

Our current clients include several mechanical engineering businesses operating in the international market. We want to be your solid partner.

We are currently one of Europe’s leading surface treatment companies. We have earned this top position with our promise of quality, reliability of delivery, environmental friendliness and work safety.

Turn the page and have a look at our company news and success stories that deserve to be known. Contact us and we can talk more about our services!

With co-operative regards

Ismo Rojo Vice President, International Operations ismo.rojo@fspcorp.com

Pentti Virtanen President pentti.virtanen@fspcorp.com Follow us on Facebook SURFACE 3

FSP is known to pay particular attention to quality, environmental protection and occupational safety

© Antti Verkasalo

Environmental protection a key factor at Lövö

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he Lövö Bridge was opened to traffic in spring 2011. Nearly 500 meters long, the Lövö Bridge project set strict requirements for surface treatment because the substructures of the bridge were given a durable and scenery-preserving surface in the delicate archipelago scenery.

As a result of a tender competition, FSP Finnish Steel Painting was chosen as the surface treatment provider because FSP is known to pay particular attention to quality, environmental protection and occupational safety.

The quality of work was a key issue during the project, as a durable surface lengthens the required period between maintenance jobs. As a result of the high quality surface treatment, the bridge will last for decades before it requires any major maintenance. Surface treatment is an important part of the maintenance of the bridge during future decades, as the paint must protect the surface of the bridge from corrosion caused by the salty sea air. The paint must also suit the colours of the surroundings.

The monitoring of the quality does not end when the project is completed. FSP will inspect the conditions of the surface treatment during the following years. The surface treatment work used a new type of painting cradle system, which made smooth road traffic possible on the driving lanes.

In addition to environmental protection, occupational safety became a key issue. The drop to the water below was 19 meters. As legally required, the surface treatment workers used harnesses in the painting cradle. ■

In search of new surface treatment methods

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The surface of the bridge suits the scenery at the Kemiönsaari municipality archipelago perfectly.

SP is continuously searching for new surface treatment methods.

Before the methods can be practically applied, their characteristics are studied carefully. Key factors are the product’s durability, environmental friendliness and low cost to the customer.

Jukka Lähde, CTO at FSP, is currently supervising a Master's Thesis for the degree of Master of Science in Technology at Aalto University. The objective is to study the use of chemical corrosion protection and the testing method for organic surface coatings, the EIS measurement.

Modern chemical corrosion protection methods have evolved into a viable option for electro-chemical coating (e-coat), which is very commonly used for corrosion protection

treatment of cars. To be completed in autumn 2012, the Master’s Thesis clarifies features, limitations, applicable targets and safety of implementation for the method.

The EIS method delivers measurement data faster than the currently used testing method, salt spray testing. It can be used to check the condition of surface coating. The measurement helps to clarify whether the coating has to be completely replaced or if a touch up painting will be sufficient.

Each new alternative must be tested with modern methods and also proved in practice before they can be used for production. It has to be durable and environmentally friendly. ■

Largest project in the company's history from Sweden

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Internationalisation continues “We are excited about our first step toward the new market area and we will continue the internationalisation of our business. We are currently seeking more projects on the infrastructure sector in Sweden, and also within the country's petrochemical and energy industries,” Rojo says.

Before the surface treatment work is started, scaffoldings and protective tarpaulin is installed around the bridge to protect the surroundings. The project includes sand blasting, puttying and spray painting. In addition, the contract includes traffic arrangements. The bridges are hundreds of metres in length and the painted area totals over 20 000 square metres. ”The sand blasting waste is gathered and protected with tarpaulin so that waste or paint spray is not released into the surroundings. It is important that the environment is taken into account during the project, as there are cars, pedestrians and buildings in the immediate vicinity of the bridge," Rojo continues.

Cooperation with Trafikverket also signifies that FSP is able to provide services for internationalising Finnish companies both in the Swedish market and other market areas. ■

SP Finnish Steel Painting has received an order for the largest individual project in the company's history from Sweden.

FSP will be responsible for the surface treatment work of six bridges in the Gävleborg, Jämtland and Dalarna counties during 2012–2014. The project covers the repainting work of four arch bridges and two girder beam bridges. Trafikverket (the Swedish Transport Administration) chose FSP as the contractor for the project after a public price competition.

The project signifies a major first step in entering a new market area. The goal is to further strengthen the company's market position in Sweden in the next few years. The project employs 20 surface treatment workers and scaffolding workers. ”The received order shows that FSP has strong expertise within the industry, a good reputation regarding environmental protection and a high capacity to carry out maintenance work to large bridges all around Europe. The quality, environmental and OHSAS standards of FSP ensure the high quality of surface treatment work,” explains Ismo Rojo, Vice President, International Operations of FSP.

Four out of five extremely or very willing to recommend

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ccording to FSP’s nation-wide customer survey, FSP’s overall grade improved from last year, still remaining at a reasonably good level. Out of the survey participants, 74 percent estimated that FSP has succeeded in its operations well or very well. FSP's overall grade was 3.9 on a scale of 1–5, which corresponds to a good grade.

The survey, carried out in May-June 2012, was taken by 102 FSP’s customers and partners, who were asked to give their opinion on FSP’s expertise, communication channels, areas of emphasis and the company’s operation in general. FSP is seen as a reliable and safe partner, a strong quality expert and a customer-oriented service industry professional.

In the future, all FSP’s surface treatment services will grow even more significant than currently. At the moment, the three most utilised services are corrosion prevention painting, blast cleaning as well as washing and cleaning work.

In addition to corrosion prevention painting and blast cleaning, the areas of emphasis for surface treatment activities will be inspection services and powder coating as well as packaging and Engineering expert services.

The study also surveyed the customers’ willingness to recommend FSP, which remained at the same level as in previous years. One significant finding was that four out of five is very willing or extremely willing to recommend FSP to other service purchasers. Nine out of ten are at least somewhat willing to recommend FSP. ■

Five most important areas of expertise Strong knowledge in quality 3,7 Reliable and safe partner 3,7 Expertise in the best practices in the field 3,5 Know-how in post-sale customer service 3,5 Customer-oriented service culture 3,5 1

2

3

4

Source: FSP customer survey June 2012

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The aim is to maintain our surface treatment innovative and thus at the forefront of development

© Antti Verkasalo

Rolls-Royce propulsion units get durable surface treatment

© Jouni Porsanger

Matti Seppälä (left), Hannu Koivisto and Teuvo Palo inspect a propulsion unit at the Rolls Royce painting hall.

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he Rolls-Royce unit located in Rauma designs and manufactures 500 propulsion units annually. As the surface treatment partner of Rolls-Royce, FSP is responsible for the turn-key surface treatment solutions for propulsion units.

Rolls-Royce Oy Ab's Production Manager Matti Seppälä argues that there are three essential factors in the surface treatment cooperation with FSP. First, expertise is relevant because it means the continuous development of quality. ”We receive the turnkey solution for surface treatment from FSP, and also continuous advice on surface treatment product development. Our aim is to maintain our surface treatment innovative and thus at the forefront of development,” Seppälä states.

Previously, Rolls-Royce was responsible for the company's own surface treatment activities before taking the new surface treatment facilities into use. Now FSP's surface treatment is integrated into Rolls-Royce's propulsion unit production at the Rauma plant.

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”We wanted to concentrate on our core competencies and development as well as build even higher quality propulsion units with an expert surface treatment partner,” Seppälä explains.

Rapid lead time is decisive The second most significant feature of cooperation with FSP is the supply chain management and rapid lead times. The markets for propulsion units are largely located in Europe, Asia and the Americas. The finished products are sent to the clients by sea, and this is supported by Rauma's location on the coast. A part of the assembly components are sent by sea to Rauma. ”We want to bring the largest individual components of propulsion units at just the right time to the assembly line. This is why the surface treatment must be carried out quickly within the supply chain, as completed products have a certain set delivery time and room reserved on an outbound ship,” Seppälä says.

After protection has been applied and the final inspections have been made, the propulsion units are lifted on the truck that takes the units to the Port of Rauma.

Rolls-Royce High production peaks FSP's third key feature is flexibility, as the production amounts may occasionally rise very high. Site Manager at the FSP Rauma unit, Hannu Koivisto, explains that if necessary, FSP is able to bring more surface treatment workers from the company's other surface treatment shops. ”Schedules must be kept also during high production peaks. For this reason, a reliable surface treatment partner is vital,” states Teuvo Palo, Plant Manager at Rolls Royce Oy Ab. Propulsion units can rotate 360 degrees around the vertical axis.

The propulsion unit, weighing up to 100 tons, can have a propeller diameter of 4.5 meters. ”The surface treatment phases consist of shot blasting, washing, protection and base coating. The underwater part of the propulsion device gets a stronger surface treatment than the other painted parts, which are coated with polyurethane," Koivisto explains.

New production facilities in Rauma also ensure a short drying

time, because the temperature in the painting hall can be increased up to + 50 degrees Celsius. This contributes to rapid lead times and adherence to delivery schedules.

After the coverings have been taken off and the final inspections have been made, the propulsion units are lifted on the truck that takes the units to the Port of Rauma, from where they are sent by sea to the client.

Strict inspections The cooperation also includes quality control and strict inspections that FSP carries out during different work phases such as documentation. This is essential because RollsRoyce has specified high quality and environmental requirements and other standards.

The goal is to produce a corrosion resistant surface treatment, as the surface of propulsion devices has to endure demanding conditions. The cooperation between FSP and Rolls-Royce has progressed well so far, because inspections have been passed and there has been no reason for recalls. ■

At the moment, Rolls-Royce Oy Ab, operating in Rauma and in Kokkola, manufactures marine products, such as winch systems, propulsion units and waterjet units. Its clients include international shipping companies and shipyards. Up to 99.5 percent of production goes beyond Finnish borders.

The Rauma unit of RollsRoyce has become the global leader of propulsion unit production and it designs and manufactures 500 propulsion units annually. The power range of the units is from a few hundred kilowatts to 10 megawatts. The propulsion system that meets the requirements of the client can be customised for different vessels by utilising modern technology. Propulsion systems are manufactured for e.g. tugboats, icebreakers and other specialised vessels.

In its two Finland-based factories, the company employs nearly 500 industry experts.

The annual turnover is approximately 600 million euros. ■ SURFACE 7

Through cooperation Konecranes wanted to enable the continuous improvement of surface treatment

According to Mika Mattila, Konecranes focuses on its core competencies as a result of the partnership with FSP. Kati Pajunen is the Work Manager at FSP's Hyvinkää production plant.

© Antti Verkasalo

Cooperation with FSP allows Konecranes to focus on core business

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onecranes manufactures lifting solutions for efficient operation at its Hyvinkää factory, in particular to the international market. Konecranes, one of Finland's leading lifting appliance manufacturers, is satisfied with FSP's high quality surface treatment work, environmental reporting and adherence to schedules.

Konecranes’ Gear Factory Manager Mika Mattila believes that Konecranes has benefited from the cooperation with FSP at their Hyvinkää factory.

"We chose FSP as our surface treatment partner, because we wanted to improve our utilisation rate and enable the continuous improvement of surface treatment," Mattila explains.

The goal of the partnership is to provide additional value through improvements in quality, thus benefitting the clients of Konecranes both in Finland and in the international market. Previously Konecranes was responsible for its own surface treatment activities at the Hyvinkää factory. Now FSP's painting activities have been integrated as a part of crane and component

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manufacturing at the factory.

"We did not outsource surface treatment in order to cut down costs. The reason was our desire to focus on our core competencies, their development and the building of prerequisites for business growth," Mattila explains.

Rapid lead time improves competitiveness The Konecranes Hyvinkää factory delivers thousands of gear units annually and tens of gear units go through at the paint shop during one week. According to Mattila, the cooperation opens up possibilities to further shorten lead times for gears at the factory facilities and to improve competitiveness.

Partners have already this year paid particular attention to the completion of projects, making sure that schedules are met. The goal is to ensure that products endure changing weather conditions and corrosion.

"Products include gear units and steel structures of cranes. In addition, we offer surface treatment to other

Konecranes • serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals • provides lifting solutions and services for lifting equipment and machine tools • turnover EUR 1,896 million (2011) • 11,700 employees, at 609 locations in 47 countries

Big suppliers launched cooperation with FSP

FSP offers surface treatment to gear units and steel structures of cranes and other small components.

In addition, FSP offers surface treatment to other small components too.

small components according to the client's requirements," explains Kati Pajunen, Work Manager at FSP's Hyvinkää surface treatment production shop.

Pajunen specifies that surface treatment consists of the following phases. The completed gear units of Konecranes are painted and protected from corrosion. Similarly, steel structures such as the main support of the crane, maintenance platforms, lifting platforms and hooks are blasted and painted, after which they are assembled together.

Challenges in reporting must be tackled Modern technologies are combined with steel structures during

Surface treatment is carried out at FSP´s Hyvinkää production shop.

the assembly phase, thus forming an ingeniously functioning crane.

Finishing painting is also carried out during this phase.

FSP produces detailed documentation, for instance, on the conditions during the blasting and painting phases. The cooperation was initially driven by Konecranes' desire to outsource quality reporting to FSP. "As an expert company within the industry, FSP pays attention to the new quality and environmental directives in the surface treatment industry. The reporting must respond to current and future challenges," Mattila explains. ■

FSP Finnish Steel Painting has launched several cooperation projects with big systems suppliers and manufacturers both in Finland and abroad during the past two years.

At the end of 2011, FSP began nationwide cooperation with the Jyväskylä-based Komas Group. Through the cooperation agreement, Komas wanted to centralise the surface treatment activities of its machined steel structures to one certified service provider. Previously Komas had bought surface treatment services from approximately 20 providers around Finland.

Komas is a well-known systems supplier and its operation covers machining, assembling, hydraulics and logistics services.

Sampo-Rosenlew Ltd has been cooperating with FSP since December 2010. FSP is responsible for surface treatment at Sampo-Rosenlew’s factory in Konepajaranta, Pori.

Sampo-Rosenlew is one of the leading combine-harvester manufacturers in the Nordic countries. It also manufactures industrial washing machines and forestry machines and carries out subcontracting work for the metal industry. ■ SURFACE 9

Through cooperation Cargotec introduces simple operation models, improves quality and cuts costs

In addition to the expert service project, FSP cooperates with Cargotec at the Raisio production facilities. Antti Orelma, Design Engineer at Cargotec (left) and Jarno Mäenpää, FSP's Work Manager, inspect the surface of the auxiliary frame before final assembly. © Antti Verkasalo

Engineering unit develops standard painting system for Cargotec

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argotec Finland manufactures Multilift product family demountables and cargo handling solutions at its factory in Raisio. FSP's Engineering unit is currently working with a new standard painting system that will meet the new standard requirements of Cargotec.

FSP's Engineering unit offers expert and inspection services and is now responsible for developing a new standard painting system for Cargotec Finland Ltd's Raisio factory.

The goal is to utilise the system extensively in the sales and planning phases of Cargotec's future projects, which will speed up the process, increase productivity and cut the overall costs. ”We chose FSP to carry out the investigation, because we wanted to have a professional partner with a high level of expertise and knowledge on quality and environmental systems,” explains Antti Orelma, Design Engineer at Cargotec Finland Ltd's Raisio unit.

Orelma continues that the selection was also speeded up by the company's wish to concentrate on its core areas of expertise.

Cargotec Ltd • improves the efficiency of cargo flows on land and at sea • daughter brands, Hiab, Kalmar and MacGregor are recognised leaders in cargo and load handling solutions around the world • turnover EUR 3.1 billion (2011) • employs approximately 10,500 people

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The project progresses in stages First, FSP looks into requirements which the new standard painting system will bring out. Certain requirements have already come up, such as the specific standards required by Cargotec's client groups, which the painting system must support.

The Multilift product family manufactured at the Raisio unit belongs to the Hiab business area.

The second stage involves the investigation of alternative painting systems. During this stage, FSP will study, in cooperation with paint suppliers, how the paints suit the painting system and meet the standard requirements. ”We request paint suppliers to deliver, for instance, certificates and statements concerning compliance with standards. Finally we assess how the paints can reasonably be adapted at the Raisio unit,” concludes Jukka Lähde, CTO, responsible for FSP's Engineering unit.

Optimised system as end result The next step includes a joint meeting between FSP and Cargotec, which assesses the suitability of alternative systems for product development and production.

The third stage involves the decision-making. Partners will jointly select the standard painting system that meets the set requirements.

Concurrently, the process description, required thicknesses and other guidelines are brought up.

As a result of the investigation work, there is a new standard painting system that is optimised for the Cargotec unit and which supports new standards. ”The concrete primary goal is to shorten lead time during a surface treatment project. In addition, the goal is to introduce simple operation models to the clients of Cargotec, to improve quality and to cut costs,” Orelma explains.

Close cooperation in Raisio In addition to the expert service project, FSP cooperates with Cargotec at the Raisio production facilities.

FSP's surface treatment activities are closely integrated with Cargotec's assembly line.

A majority of the surface treated products is shipped to Europe and Asia, where products have a strong market position in most countries. The clients include waste treatment companies and private transport entrepreneurs, among others. ■

Frosio inspection ensures high quality FSP's Engineering unit works closely with its clients to carry out Frosio inspections in accordance with Norsok requirements. The main objective is to monitor the quality of the surface treatment of steel structures in accordance with the Norsok standard.

FSP employs three Frosio certified inspectors, who inspect the whole surface treatment system at the client's location and document e.g. the entire process and painting conditions.

If required, FSP also carries out Frosio inspection at client locations, where some other subcontractor has performed the surface treatment work.

The aim is to audit subcontractors’ process quality, monitor quality control and point out possible deficiencies.

Inspections are carried out at project sites, machine shops and shipyards for companies operating in Finland and in the international market. These expert services can be ordered from FSP according to agreement. ■ SURFACE 11

For Surface Protection

A Longer Life Span

We surface treat machinery, equipment, ships, bridges, storage tanks, steel structures and drilling rigs on a turnkey basis.

We rely on clean working methods and ensure recycling and safe storage. We comply with the quality, environmental and OHS standards ISO 9001, ISO 14001 and OHSAS 18001.

© Shutterstock

FSP Finnish Steel Painting Ltd Hiekkamäentie 4 FI-01150 Söderkulla Tel. +358 9 278 6270 Fax +358 9 272 1636 www.fspcorp.com