Rune Ulekleiv

HEXAGON RAGASCO

IMPROVE “SMARTNESS”

Gjøvik 23.09.15

CONTENT

• Presentation Hexagon Composites Presentation Business units and products

• Hexagon Ragasco - 20 years with innovation. Hexagon Ragasco –The historie from 1993

What characterizes us today

• The award «Norges smarteste bedrift»

• The Future.

2

Business units

PRESENTATION – HEXAGON COMPOSITES

THE HEXAGON GROUP OF COMPANIES

• Sales of NOK 1 651 million in 2014

• Public company listed on the Oslo Stock Exchange

HEXAGON COMPOSITES

WHERE WE ARE

LONG EXPERIENCE IN A GROWING INDUSTRY

7

HIGH PRESSURE – LINCOLN AND RAUFOSS

HEXAGON RAGASCO

HEXAGON RAGASCO 2014

HEXAGON RAGASCO LPG

HEXAGON RAGASCO

13

Hexagon Ragasco is the global leader

worldwide in composite LPG cylinders

VISION

• Committed to conduct our operations in an economically, social and environmentally responsible way

• Our six focus areas:

1. Environment

2. Working conditions

3. Local community

4. Ethical behaviour

5. Product safety

6. Supply chain

VALUES

14

WHO WE ARE

• The world’s leading manufacturer

of state-of-the-art composite LPG

cylinders for lifestyle and business

applications.

OUR MISSION

Through our passion to transform the use of portable gas into a safer and

more user friendly experience, we offer smart cylinders that enhance a

modern lifestyle. With lightweight and durable efficiency, we bring effortless

confidence to the use of gas – wherever, whenever. We give you and your

customers the peace of mind to focus on things that matter most in daily

life.

17

• The reference supplier of mass produced cylinders in composite for

LPG and equivalent

• As reference supplier we are adding value for customer and end user by

having competitive edge at state-of-the-art solutions, uncompromised

quality, cost efficient product and world-class automated production

• Primary areas for end usage is households, leisure activities, catering

kitchen and fork lift trucks. Global market leading player within this niche.

• The market is global. The primary market platform is Europe. Markets

with largest growth potential for composite cylinders are in Asia, Middle

East and Americas. Differing distribution solutions for empty containers

will be considered in chosen markets

BUSINESS CONCEPT HEXAGON RAGASCO

Americas

• Barbados

• Bermuda

• Canada

• Colombia

• Dominica

• Grenada

• Guyana

• Mexico

• Paraguay

• St. Lucia

• St. Vincent

• USA

• Venezuela

Asia Pacific

• Australia

• India

• Indonesia

• Malaysia

• Maldives

• New Zealand

• Philippines

• Sri Lanka

• Tahiti

• Taiwan

Europe

• Albania

• Austria

• Belgium

• Bulgaria

• Croatia

• Czech Republic

• Denmark

• Estonia

• Finland

• France

• Germany

• Greece

• Hungary

• Iceland

• Ireland

• Italy

• Latvia

• Lithuania

• Luxemburg

• Netherlands

• Norway

• Poland

• Portugal

• Romania

• Russia

• Slovakia

• Spain

• Sweden

• Switzerland

• UK

Middle East and Africa

• Angola

• Ghana

• Iraq

• Israel

• Kenya

• Mauritius

• Nigeria

• Qatar

• Rwanda

• Saudi Arabia

• South Africa

• South Sudan

• Sudan

• Zimbabwe

OUR CYLINDERS ARE CURRENTLY IN USE IN:

OUR PRODUCTS

OUR CYLINDERS ARE:

Safer • Pressure tests show our composite

cylinders withstand more than 50% higher burst pressures than their steel counterparts

• Unrivalled safety record

• Our cylinders will not BLEVE

• Less risk of rupture and explosion in case of fire

• Greater reassurance for your business and your customers

OUR CYLINDERS ARE:

Lighter • Our composite cylinders are half

the weight of their steel

equivalents

• Easier to handle and transport

- and ultimately less costly as you

spend less money to haul more

gas

• For consumers, easier to lift,

change and refill

OUR CYLINDERS ARE:

Corrosion-free • Composite cylinders do not rust,

corrode or deteriorate like steel

• Longer lasting and cleaner in use

Accumulated maintenance over

time of Hexagon Ragasco cylinders

vs steel

OUR CYLINDERS ARE:

Translucent • Easy to see the liquid gas level

• Easy to check gas level in use

• Eliminates the need for inaccurate

gauges

• Unique feature for user-friendly

use, builds customer trust and

preference

CONSTRUCTION OF OUR CYLINDERS

1. Seamless polymer

liner contains the gas

2. Fibre structure holds

the pressure and

prevents bursting of

the pressure vessel

3. Fully-integrated outer casing protects the valve and the pressure vessel, and gives our cylinders its unique appearance

VALVE/ CYLINDER INTERFACE

Standard Interface

Dependent on country

M26 or M34 thread and

O-ring for tightness

LPG Flow diffuser to

eliminate any risk of

charge from static

electricity

TECHNICAL SPECIFICATIONS

Specifications1 12,5 L 18,2 L 24,5 L 26,2 L 27,4 L 33,5 L

Propane Capacity (kg) 5,0 7,5 10,0 10,7 11,2 kg 14,0

Butane Capacity (kg) 6,0 8,5 12,0 12,8 13,4 kg 16,5

Empty weight2 (kg) 3,4 4,1 5,0 5,1 5,3 6,3

Water content (L) 12,5 18,2 24,5 26,2 27,4 33,5

Height (mm) 384 468 571 595 622 715

Diameter (mm) 305 305 305 305 305 305

1. All values are nominal. 2. Without valve

TECHNICAL SPECIFICATIONS

Specifications1 11 lbs 17 lbs 22 lbs 31 lbs

Propane Capacity (lbs) 11 16,85 22 31

Butane Capacity (lbs) 13,2 18,70 26 37

Tare weight2 (lbs) 8,6 10,3 12,0 15,4

Water capacity (lbs) 27,5 40,4 53 75

Height (in) 15,1 18,3 22,5 28,3

Diameter (in) 12 12 12 12

1. All values are nominal. 2. With valve

CERTIFICATIONS

International certifications North America • Approved according to ISO9001: Quality Management

Systems

• Approved according to ISO11119-3: Gas cylinders –

Refillable composite gas cylinders and tubes. Part 3:

Fully wrapped reinforced composite gas cylinders and

tubes up to 450L with non-load sharing metallic or non-

metallic liners.

• EN 12245 Transportable Gas Cylinders- Fully-wrapped

composite cylinders

• EN 14427 Transportable refillable composite cylinders

for LPG – Design and construction

• Other approvals in around 70 countries

• USA - Department of Transportation (DOT) Special

Permit SP-12706

• Canada - Transport Canada (TC) Equivalence

Certificate, Level of Safety SU-5931

All Type Approval certificates issued by TÜV Rheinland

OUR QUALITY ASSURANCE

• Strict QA system ensures total

traceability – from raw materials

through to finished products

• Over 35 points during manufacture

where production data on each

cylinder is collected and stored

WHY CONVERT TO COMPOSITES?

Growing demand

The market is ready for a more user-friendly, more cost-effective solution.

Consistent growth

Sales of composite cylinders have grown progressively wherever they have been introduced.

Increase market share

Claim market share in your area as the first to introduce composites.

Protect market share

Protect market share in your area where composites are already sold and exchanged.

Reduce operational expenses

Reduce your logistics and refurbishment costs.

LIFESTYLE APPLICATIONS

Marine Mobile home BBQ

DOMESTIC APPLICATIONS

Heating Cooking

BUSINESS APPLICATIONS

Fork lift trucks Lawn-mowing Floor polishing

Credit: Briggs & Stratton Products Group

20 years with innovation

A BIT OF THE HISTORY

Development of Composite structures

for defense applications in Raufoss

Technology A.S

First CNG system developed Neoplan

1980’s

2000

LUP project with Statoil to develoip first T4 LPG

cylinders

1997

2002

2015

new high pressure T4 CNG

composite tanks for Mercedes Benz B-class

2005

2008

1993

Development and production start up

of 1 and 1,8 L High Pressure Vessels

for MATRA Defence

First CNG T3 CNG vessel developed for Marintek and

Volvo PC

New permeation tight CNG liner for Mercedes Benz B-

class

Development and start up of LPG production plant

Development of new LPG

boss and antistatic device

DEVELOPMENT - HISTORY

35

Improved cylinder for BTz

Won IPR court case in France

TESTIMONIALS

• Since we introduced the composite LPG cylinders from Hexagon Ragasco in 1999, we have sold over 1.5 million units in Northern Europe, especially in Sweden, Norway and Finland. Hexagon Ragasco’s modern propane cylinders helped us increase our market share and the growth we have experienced since the launch has surpassed our best estimates and expectations. Regional Product Manager, Europe North, AGA, Linde Group.

• We were the first to introduce Hexagon Ragasco composite cylinders in Israel not only as a product that would increase our sales, but also would reinforce our position as market leader and innovator. Focusing on its lightweight and translucency, we named it "PICKSEE”. Within two months, and together with targeted marketing campaigns mainly for barbecue use, sales of cylinders increased dramatically and our market share grew. New customers are seeking the new revolutionary cylinder; it is a market game changer. Vice Chairman, AMISRAGAS, Israel.

TESTIMONIALS

• Hexagon Ragasco composite LPG cylinders are changing the LPG industry in

the Philippines with the introduction of safer, more convenient and more

durable characteristics for home-use compared to steel cylinders. EC Gas

customers have reported good reviews wherein they greatly appreciate the

translucency of the cylinders and the appealing design.

Division Manager, Eastern Composite Gas, Philippines.

• We introduced Kosangas Light (Hexagon Ragasco composite cylinders) into

the Danish market in 2001. Since then a great number of customers have

experienced the benefits of the composite gas cylinder branded under the tag

line: Light, Clear and Safe. Kosangas Light has made life easier for our

dealers, commercial and domestic customers – both for outdoors and indoors

use.

The lightweight cylinder has had an enormous influence on the popularity of

cylindered gas for home use and is today the first choice of gas cylinders; a

success story.

Nordic Marketing Manager, Kosan Gas a/s, Denmark, UGI Group.

10 MILLION CYLINDERS CAMPAIGN

38

“Norges smarteste bedrift “

THE AWARD

«Norges Smarteste Industribedrift» - From the jury

5. mai Erna Solberg gave the award to Hexagon Ragasco

”Hexagon Ragasco er risikovillig, og har evnet å mobilisere hele

organisasjonen i innovativ tankegang. Dette har resultert i egenutviklede

verktøy og løsninger, og engasjerte medarbeidere. Bedriften kan vise til en

enorm og imponerende produktivitetsvekst som resultat av kraftig satsing

og investering. Hexagon Ragasco beviser at det er mulig å lykkes i

høykostlandet Norge.”

CRITERIA - PRODUCTIVITY

• Through innovation, smart use of technology and continuous

improvement, cycle time per container has been reduced from 74

seconds to 14 seconds in 10 years. This corresponds to a speed increase

of over 500%. We have also made major investments in advanced control

systems, robots, grippers and proprietary equipment and tools to further

increase the capacity and productivity.

• Ten years ago we produced 250,000 containers per year with 10

operators on five shifts, while today we have a production capacity of

over 1.5 million per year, with 8 operators on 6 shifts. Productivity per operator is now over 650% of what it was in 2004.

CRITERIA - UNIQUENESS

Hexagon Ragasco is a venture company with a strong entrepreneurial

culture, characterized by short decision paths, and a large degree of

freedom. This has led us in a relatively short time to become a global

market leader in our niche. The product and production plant is devloped for

a higly effective mass production of quality parts.

CRITERIA - CLUSTER EFFECTS

• The company was established based on technology developed by

companies in the industrial cluster at Raufoss, and we have benefited

from the proximity to some of the world's leading and most advanced

companies in the international automotive and defense industries.

• Simultaneously Ragasco have gained world class knowledge in

automation, and high speed polymer tooling and production, that others

in the cluster can benefited from.

CRITERIA INNOVATION

• Based on technology from rocket motors we have developed composite cylinders that has unique properties compared to traditional steel containers. It is easier, it is translucent - enabling control of reservoir levels, it does not rust and it does not explode in a fire.

• To succeed in mass production of the cylinder to many different customers, we have made several innovations in product, process, machinery and equipment, as challenges have emerged during the 15 years of production.

• One of many examples of this is a patented device that reduces static electricity in the container, which, in early times, was a problem in some markets.

• We are working continuously on new uses, and we have also developed a high-pressure gas tank (CNG) for automotive customers like Mercedes and Opel.

CRITERIA - USE OF TECHNOLOGY AND EXPERTISE

• Our factory is fully automated, we have advanced control systems, robots and grippers, and

we have made major machinery investments. We have also re-built the factory and designed

new tools for high speed thermoplastic production.

• All production stages from raw material to finished container takes place in a compact plant of

4,000 m3. We have developed proprietary solutions to achieve the production goals. To run

very fast with high uptime, we depend on skilled and competent staff, and we are committed to

building expertise internally. We have a structured system that captures about 20 improvement

suggestions from operators each day. These proposals are evaluated and implemented by

special engineering team, to ensure and continuously improve productivity.

CRITERIA - SUSTAINABILITY

• Continuous focus on improvement and innovation means we have been

able to reduce the weight of the product by 30%. This has resulted in both

reduced material consumption, and emissions associated with transport

of containers through life. We have recently completed a project to

reduce control emissions from production and is now down 10% of the

permit. At the same time we are working on several projects for heat

zoning to reduce energy consumption.

CRITERIA - MARKET EFECTS

• We have developed a very good product which has made it possible to

create a separate niche, while increasing market share on behalf of

traditional steel containers. Productivity improvements have made it

possible to reduce the retail price and thus expand from the Nordic

market to become the leading global supplier of composite propane

containers. We have an export share of 95%, and has sold over 10

million containers globally to over 60 countries. Additionally, we have

succeeded in making composite containers as the only standard in the

Nordic markets for private use

How to become smarter and improve further

FUTURE

HOW TO WORK «SMARTER»

• From internett Take naps as often as you can Spend time in nature Check your E mail every day --------- -----

• Definition of smart here – given as Productivity Uniqueness Cluster effects Innovation Use of technology and expertice Sustainability Market effects

If you want to be called smart, you must “know“ your

customers and be sure to sell the products at a higher price

than the cost of producing them

MARKET UNDERSTANDING

FRANCE: MARKET CONCENTRATION ANTARGAZ FRANCE ACQUIRES TOTALGAZ FRANCE

52

53

FRANCE: BIG OIL EXIT OF LPG COMPLETED DCC ACQUIRES BUTAGAZ FROM ROYAL DUTCH SHELL

FLOGAS & BENEGAS: 1M HEX RAG CYLINDERS 20% OF DCC’S CYLINDERS HAVE BEEN SUPPLIED BY US

54

DCC WILL CONTINUE ITS ACQUISITIONS UNDERLINES THE IMPORTANCE OF PRICE DISCIPLINE

55

OTHER EUROPEAN COUNTRIES

• We have started to open new markets

• Where next ?

56

US IS THE 2ND LARGEST LPG MARKET IN THE WORLD MN TONNES

50%

7

7

Domestic

Chemical 24

14

Transport

Industry 2

Agriculture

Refinery

2

US consumption

0

10

50% Bulk LPG

Cylinder LPG

67

US LPG consumption by sector

53

14

International comparison of LPG domestic consumption

• US is the

2nd largest

Domestic

LPG market

in the world

• Per capita

domestic

consumption

is higher

than for

Europe

• Not 100%

comparable:

We estimate

that ~50% of

US LPG sold

in bulk for

use in places

instead of

natural gas ~7 mn tonnes of LPG drives ~6 mn sales

of 20# cylinder/year; US (mainland)

6 mn

cylinders

1. Majority of the 6 million cylinders are sold to exchange businesses 57

RETAIL MERCHANDISING MATERIALS TO BE

USED BY RV DEALERS

• Supported retail sales with in store

merchandising materials.

Pull-up Banner

Trifold Brochure

Shelf-talker Hang Tags

OUR BUSINESS CASE

BBQ

Markets

Cooking

&

Heating

Markets

• Composite cylinders allows LPG marketers to increase their value share by charging more per Kg of LPG

refilled

Content: 11Kg Content: 10Kg Content: 8Kg Content: 10,5Kg

59

? ?

? ?

? ?

Customers are willing to pay for Composite cylinders

attributes (reduced weight, …)

LPG marketers can therefore recoup price of composite

cylinders upfront

LPG marketers must subsidise deposit of composite

cylinders upfront

IMPROVE DIFFERENTIATION POSSIBILITIES BY PROVIDING OUR CUSTOMERS WITH MORE CASING & BRANDING OPTIONS

WHILE RETAINING OUR TRADEMARKED FISHBONE PATTERN

Tetra Pak… or

Elopak? Amtrol Alfa

Hexagon Ragasco … and tomorrow

today different Ø & casings

60

If you want to be called a smart producer, you must produce

at a significantly lower unit cost than your competitor.

PRODUCTION

STATE-OF-THE-ART MANUFACTURING PLANT

• Advanced production plant in Norway –

the only one of its kind in the world

• Fully-automated, high-speed production

line, capable of producing up to 2 million

cylinders per year

• ISO9001 certification covers all steps in

the value chain and all processes

MANUFACTURING PROCESS

• Fiberglass

filaments wound

around liner and

oven cured

• Pneumatic

pressure test to

30/33 bar.

Tightness test to

18 bar with

helium

• HDPE outer

casing injection

moulded. 3

pieces and

mechanical joint

• HDPE liner blow

moulded

Beholder/år vid ulike syklustid og oppetid

Skift Oppetid % 13 12 11 10 9

4-skift 70 1 194 868 1 294 440 1 412 116 1 553 328 1 725 920

4-skift 75 1 280 215 1 386 900 1 512 982 1 664 280 1 849 200

4-skift 80 1 365 563 1 479 360 1 613 847 1 775 232 1 972 480

4-skift 85 1 450 911 1 571 820 1 714 713 1 886 184 2 095 760

5-skift 70 1 498 043 1 622 880 1 770 415 1 947 456 2 163 840

5-skift 75 1 605 046 1 738 800 1 896 873 2 086 560 2 318 400

5-skift 80 1 712 049 1 854 720 2 023 331 2 225 664 2 472 960

5-skift 85 1 819 052 1 970 640 2 149 789 2 364 768 2 627 520

6-skift 70 1 660 874 1 799 280 1 962 851 2 159 136 2 399 040

6-skift 75 1 779 508 1 927 800 2 103 055 2 313 360 2 570 400

6-skift 80 1 898 142 2 056 320 2 243 258 2 467 584 2 741 760

6-skift 85 2 016 775 2 184 840 2 383 462 2 621 808 2 913 120

3 WAYS TO IMPROVE PRODUCTION CAPACITY

1

2

3

Øke

skiftgang/planlagt

produksjonstid

Øke

OEE/Oppetid

Redusere

syklustid

3 2

2

2

1

UNDERSTAND ALL COST ELEMENT

2004 2005 2006 2007 2008 2009

Ave

rag

e C

yli

nd

er

Co

st

(NO

K)

Year

Complet Product Cost from RAG-1 @ Max Capacity

UNDERSTAND VOLUME SENSITIVITY- AND

PRICE CONSQUENCES

150 200 250 300 350 400 450 500 550 600 650 700

Bre

ak E

ven

Co

st

(NO

K)

Production Volume (x1000)

Break Even Cost Sensitivity @ RAG-1

2004

2005

2006

2007

2004

2005

2006

2007

FOCUS ON BOM

Kost 2003 Kost Q2-2004 Kost EXP

Co

st

(NO

K)

Stage of Development

Materialcost LPG 10 kg

68

INCREASE FLEXIBILITY AND FIGHT FOR ADDED VALUE AND

AGAINST ADDED COST

If you want to be called a smart organization, you must structure and

size an organization consisting of motivated people with the right

competencies, acting according to what is best for the company.

PEOPLE AND ORGANIZATION

UNIQUE COMPETENCE

1 2 3 Grow the core by

building barriers

• High competence

level on productivity

and atomization

• World class

competence in

filament composite

winding

• unique combination

Open up new

opportunities by

introducing flexibility

in production • Increased R&D

capacity last year

• Strong innovation

culture

Expand internationally

by building local

production plant

abroad

• Feasibility study

done

• Lean generic

production site;

focus on cost and

productivity

• «First mover»

Sustain market leadership in

LPG composites industry

Founded on a commitment to be leading on quality and productivity

70

MARKET ORGANIZATION

Sales and

Marketing

Sales

Latin America

International

Marketing

Sales Manager

Regional Sales Director

Sales Manager Sales Manager

Regional Sales Director

Country Manager

Marketing and Communications Manager

Technical

Support

EMEA & APAC

Sales & Marketing Director

Sales Manager Sales Manager Technical

Support Manager

Technical Support Manager

Sales Manager

Sales Manager

Sales

Middle East,

Africa & India

Sales

India, Nepal ,

Sri Lanka,

Australia &

NZ

Sales

North America

& Caribbean

Sales

and Marketing

North America

Technical

Support

North America

& Caribbean

Sales

Asia Pacific

Sales

Scandinavia

Sales UK,

Nederland &

Africa

Sales

Europe &

LATAM

Sales

Middle East &

North Africa

71

72

DEVELOPMENT ORGANIZATION PROPOSED FUTURE

FOU

Development

Trainee

FOU &

Innovation

Test and

Homologation Technical

support

Test Manager

Manager

Innovation Manager

Product &

Change

management

R&D Director

Materials Lab

and Testing

Filament

winding and

analysis

Termoplastic

Process &

tooling

New Product

Development

Tool & process

Development

Analyzis

• FEM

• Mold flow

Product Manager

Manager

Manager

Drawings

Innovation

Project

Coordninatiion

Industrial partners and

Cluster work

Raufoss

support

73

HEXAGON RAGASCO COMPETENCIES

74

AUTOMATED TERMOPLASTIC PROCESSING – TOOL

DESIGN AND COMPOSITE COMPETENCIES

75

DESIGN AND 3D MODELING COMPETENCE

3 Designs to be proposed to Butagas

1. Eksisting Viseo in PP or PEHD

2. Viseo 3 with lower cost design

3. Viseo 4 with cost oprtimum design Inner design to

be completed

FROM INDUSTRY 1 TO 4

RFID: KEEPING TRACK OF YOUR CYLINDERS

• Hexagon Ragasco cylinders can

be supplied with RFID chips

installed by IDTEK

• All RFID numbers logged on a

customized company database

• Allows cost-effective management

of cylinder stocks through the

whole supply chain

• Allows improved rotation of

cylinders and better customer

service

• With RFID the Real Cylinder

Delivery Cycle can be measured

RFID: END-TO-END DIGITAL LPG OPERATIONS

BY PEGASUS

• Physical Tracking & CRM

• Digital Control & Benchmarking

79

NEW MARKING (EXAMPLES)

80

NEW PRODUCT DESIGN WITH IMPROVED

PROPERTIES

Values / Advantages:

• New aestetic design -Enable customers to tailormake

cylinders

• Improve properties

Costs / Disadvantages:

• More complex production

Analyses we need to do:

• Identify new design possibilities and product features /elements –end user and customer value evaluation.

• Evaluate how to improve properties

• Propose pattern, and design with possible added features, and include material screening and specifications.

• Complete detailed engineering, and stipulate cost for new designs (BOM, tooling, production, operations, machines.

• Evaluate possible IFU with Butagaz/Antargaz

• Structure product design ideas Create an overview of product design opportunities?

Decision:

D1

Explain Target, status and background

81 81

PIECES OF EVIDENCE CONT.

IPR NEW DESIGN REGISTRATIONS

NEW PRODUCT OPPORTUNITIES

Focus on opening new market segments based on the same or similar technology as LPG, using the same production line enabling further economies of scale in production. At the same time the new product segment will support and strengthen the operations further taking out some of the seasonal variation in capacity utilization experienced over the year.

We believe that our world leading production capacity for composite vessels enables a market leading economies of scale in production. The fully automated production line enables product quality levels and a process repeatability level difficult to match for competition without substantial investments and competence cost. The fully automated production line combined with the economies of scale advantage is therefore a substantial barrier for other players or potential newcomers in the industry.

This may open new product and market opportunities:

82

ZERO TOLERANCE FOR CORRUPTION

83

WHY CONSIDER A NEW PLANT ABROAD

• Increasing sales to distant regions & emerging local competition

• Customer requirements to local value added for technical approval of products

• Delivery and lead-time from Norway is long (6-8W) + capacity limitation some years

• Product cost DDP customer – (supplied from Norway incl transport & tariffs):

• More robust business model; Two production lines vs one

• Important to avoid cannibalization due to 2nd half utilization challenges @ Raufoss

84

SUPPORT INITIATIVE LIKE I4PLASTICS ( WHEN

THEY COMPLY WITH STRATEGY)

85

• I4plastics main focal areas are within: Infrastructure collaboration within plastic testing, processing and development Research & Development projects with special focus on plastics and multi-materials Plastic and composite education within Technical Collage and University Collages tailored

to industry need and requirements Innovation speed and culture

i4plastics runs from 2014-2017, with possible extension for 2 years. Annual budget: 4 MNOK – 12 MNOK total

©

RAUFOSS - THE POLYMER & COMPOSITE

CENTRE OF EXCELLENCE RESOURCES:

86

Hexagon Ragasco

• Motivated and change oriented Workforce, Highly Competent in Polymer and Composite Materials, and

automated Manufacture of polymer products, with skills in Chemistry, Product and Material testing and

Characterization, working in innovative and dynamic organisation, driven by deep market understanding.

SINTEF Raufoss Manufacturing (SRM) – Polymer & Composite Competence: (NCE)

• 3 PhDs, 4 MScs and 1 BScs experts on polymers and composites

• Supported by SINTEF Materials and Chemistry - approx xx scientists focusing on P&C downstream

processing

Owned by several industrial companies focusing on materials technology: Hexagon Composites,

Hydro Aluminium, Raufoss Technology, Nammo, Kongsberg Automotive, Benteler.

Infrastructure

• Joint laboratories for materials characterisation and product testing

• Joint research laboratories, pilot plants and demonstrator facilities for polymer processing including 2

injection molding, automated assembly and others

• Manufacturing facilities for polymer downstream processing in 10+ companies

Network/relations

• Research institutes and Universities in Norway and abroad

• Public funding bodies (regional, national and European)

• Regional and national authorities related to business restructuring

SUSTAINABLE ENGNEERING -

COMPETENCE

• Life cycle assessment of composite cylinder started (part of SISVI project

with NTNU)

87

NEW RELEVANT BIA-PROJECTS

88

OVERALL FOCUS AREAS/

SUPPLY CHAIN STRATEGY:

89

• Utilize ERP-integrations – higher focus on calculations per item,

production orders and customer

• Focus on total quality cost from the production to customer

• Continue improvements in Lean – both in administration and production

90

SUPPLY CHAIN -

LOGISTICS EXCELLENCE 2015 --> Internally

ERP utilization Options

• Identify accurate Waste in Production for Optimization of

Product and Processes

• Cost Breakdown and Development

• Real Calculation of Production Orders

• SuperDagfinn – Warehouse Scanning System - work more

efficient

• Reduce manual failure

• Save time – Lean

• Serving the Customers better - > Customer Excellence –

Certificates, Serial No., RFID,

QR Code - Information read by Mobile Phone:

• Where to buy

• Where to refill

• How old is cylinder

• When to retest

• Country of Origin

QUALITY – BE PROACTIVE VS. CUSTOMERS

91

• Be proactive in relation to quality by:

• Visualizing key processes.

Online curves in all production cells.

• Do not accept deviations and if they come analyze them

• Visualizing scrap

Online curves in all production cells.

• Secure documentation and quality of purchased parts

• Service:

Follow up non conformities and to proactive

NAV to automatic generate a standardized COC.

• Continuous improvement:

Run improvements according to the PDCA wheel.

Implement all corrective actions within specified deadlines.

Always fulfill all disciplines in the Non Conformity template. (8D-template)

92

ONLINE PROSESSDATA

HSE – SICKNESS ABSENCE

93

Period Short-term

%

Kids

sickness%

Long-term

%Total % Initiatives

Absence

from work

No absence

Q1 2014 1,96 % 0,33 % 1,29 % 3,57 % 1 3

Q2 2014 1,98 % 0,20 % 1,03 % 3,20 % 0 3

Q3 2014 2,57 % 0,14 % 0,76 % 3,47 % 0 3

Q4 2014 2,28 % 0,28 % 2,15 % 4,71 % 0 2

Totalt 2014 2,20 % 0,24 % 1,31 % 3,74 % 1 11

Q1 2015 4,37 % 0,57 % 2,13 % 7,07 % 0 4

Work-related injuries

Corrective actions are implemeted for all workrelated injuries

H-verdi: 0

Ved utgang mars: 421 dager uten fraværsskade.

.

Q12014

Q22014

Q32014

Q42014

Totalt2014

Q12015

Target

Kids sickness%

Long-term %

Short-term %

IPR

IPR Titel Patentnumber Land LPG/CNG Valid from Offentlige Claims

Patent Pressure vessel 306226 / 958473 / 960 /2003 EU LPG 31.jan.97

Konsept Hullmønster/transparens/støtsikker Patent Adhesion 309667 / 1204833 / 6582540 EU/NA LPG/CNG 29.apr.99

Heft mellom liner og kompositt Forbehandlig + hovedbehandling Patent Boss for pressure vessel 312048 Norge LPG 23.apr.99

Patent End Plug 320654 Norge/EU LPG 26.nov.02

Sikrer posisjonering av Patent Reduction of static electricity 328047/05722099.8/328047/7656642 Ventil dyse 19.mar.04

Patent Boss 1 PCT Alle mulig CNG 28.12.2012 Rattle snake, 2 diametre , gjengelengde kontra tettelengde

Patent Boss 2 PCT Alle mulig CNG 28.12.2012 Hindre trykkoppbygging. Utlufting over gjenge/utlufting

Patent Boss lip thickness PCT Alle mulig LPG/CNG xx.xx 2012/13 Patent LPG boss etter ? Tykkelse/

Patent Pinch line free liner PCT Alle mulig LPG/CNG Etableres Dec

2012 Endring mangler skisse, patent blåsewdor /konsept liner uten skreps

Patent Vertical curing/drop protection PCT Alle mulig CNG June 2012 Herde uten rotasjon. Endecaps/overflatefolie

Design Vertical curing/drop protection PCT Alle mulig CNG June 2012 Produkt design Endecaps/overflatefolie m integrert merking

Trade marks Xstatic LPG Ragasco

Trade marks Hullmønster/Ragasco LpG Ragasco

Generelt IPR Teknologi hemmeligholdelse LPG/CNG Sikre teknologi unngå innsikt/ fotoforbud/kultur/konfidensialitet

SMART IMPROVEMENTS

Understand your customers

What is best for the company is best for you

Define and follow strategy. Evaluate strategy before acting against it.

Decision making at the lowest level possible.

Lead competence, build motivation and innovative culture, more than actions

Never loose main focus on costreduction and improvement

Build barriers incl IPR, differenciate and increase value for your customers.

Be international, and think and act globally

Be aware of, and support the «money makers» in your company (Production)

And not to forget; automation is a must, at least for production in Norway, and

add quality ensurance and improved process control.