OHL Industrialmemoria.ohl.es/media/4066/013_b3_industrial_en.pdf · OHL Industrial, a division created in 2008, ... plant for Minera Escondida ... Sustainability Report 2015 • B3

OHL Group Annual Report 2015

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B3OHL Industrial, a division created in 2008, is specialized in the development of the engineering and construction of major industrial facilities under the turnkey mode.

La Jacinta Solar photovoltaic plant. Uruguay.

OHLIndustrial

OHL Group Annual Report 2015 OHL Group Annual Report 2015

Sustainability Report 2015 • B3 OHL Industrial Sustainability Report 2015 • B3 OHL Industrial

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BUSINESS PERFORMANCE IN 2015

During 2015, OHL Industrial has maintained its determination to become a reference in the turnkey projects sector (Engineering, Procurement and Construction, EPC), complementing its activity with the provision of operation & maintenance services for industrial plants, the engineering and construction of equipment for the mining and cement sectors and the development of fire protection systems.

This division’s sales totaled 352 million euros in 2015, increasing 50.3% with respect to the previous year. OHL Industrial, in line with the Strategic Plan 2015-2020, has focused its international development on the OHL Group’s home markets, obtaining major contracts in Mexico and Chile.

The trend in the Oil&Gas and mining markets during 2015 has posed an enormous challenge. The drastic plunge in oil prices and the outlook for stagnated mineral ore prices have curtailed planned investment in both sectors, intensifying the competition among EPC companies.

In this context, the objectives of OHL Industrial for the next few years continue to reflect its commitments to sustainability and cash generation established in the Strategic Plan, prioritizing the contracting of projects in the sectors with higher returns and cash generation capacity.

OHL Industrial - Position

Strong international focus.

Integrated development of EPC (Engineering, Procurement and Construction) projects and provider of operation & maintenance (O&M).

Concentration of growth of the business in the electricity generation, mining and Oil&Gas sectors, while maintaining the equipment and transportation of solids, fire protection and security businesses.

OHL Industrial - Markets

America: the United States, Mexico, Colombia, Peru, Chile, Guatemala, Uruguay and Honduras.

Europe: Spain.

Middle East: Jordan, Oman, United Arab Emirates and Saudi Arabia.

Southeast Asia: Vietnam.

The division has made a significant effort during 2015 for reinforcing its technical and management capacities, as well as for the development and implementation of advanced computer systems that will enable it to maximize the efficiency of its operations.

MILESTONES IN THE YEAR

EPC PROJECTS

2015 has been a year of consolidation of the operating model designed by OHL Industrial for the performance of EPC projects, executing all of its projects in accordance with that operating model and production and control system.

In this context, the most significant milestone reached in 2015 was in Mexico with the award by the Federal Electricity Commission (CFE) of the 770 MW Empalme I combined cycle plant, in the State of Sonora. Empalme I is the first plant of this kind to be built by OHL Industrial on a turnkey basis. The facility will supply electricity to the northern region of Mexico, where the energy demand will increase at the rate of 3.6% yearly, according to CFE estimates.


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In Mexico, together with this new contract, the performance of other major EPC energy and Oil&Gas projects has continued:

• The 60 MW cogeneration plant in Coatzacoalcos,Veracruz, and the 30 MW plant at the FranciscoMadero I refinery in Tamaulipas, both of which willbe delivered in 2016.

• In addition, work is moving ahead at a steady paceon the hydrogen plant for the Ing. Héctor R. LaraSosa refinery in Nuevo León, the sulfur solidificationplant and the Degollado re-pumping station.

In Guatemala, OHL Industrial is performing one of the country’s main renewable energy projects: the 57.7 MW Xacbal Delta hydropower plant. Significant progress has been made during 2015, with the excavation of the intake tunnel practically completed, while work continues in the area of the dam for the diverting of the Xacbal River in early 2016. In the course of this project, OHL Industrial is also carrying out a valuable community involvement effort in the local communities.

In Honduras, the raw materials grinding, conveyance and storage facility for the Cementos del Norte factory has been operational since June 2015. This project included the start-up of a shale and limestone storage and conveyance circuit and a new 900 t/h grinding installation.

Delivery was made to the division’s customer in Uruguay of the 65 MW La Jacinta Solar photovoltaic plant, the first large-scale solar plant in this country and one of the largest in Latin America. The plant supplies 35,000 households and will reduce around 74,142 tons (t) of CO

2 emissions yearly.

In Oman a contract is being performed for the modernization of two hydrocarbon plants, the Saih Nihayda gas plant and the Saih Rawl processing plant, for maximizing the recovery of hydrocarbon condensates present in the natural gas. The contract has called for the deployment of significant logistics for setting up a camp for accommodating 600 people in the desert.

In Jordan, OHL Industrial is building a strategic reserve terminal for petroleum products that will have a capacity for 340,000 t of petroleum by-products and 10,000 of liquefied petroleum gas (LPG). The engineering and supply activities are nearly finalized, and the construction is well advanced, particularly the assembly of the LPG spheres and the diesel storage tanks.

ENGINEERING AND SUPPLIES OF EQUIPMENT

MINING AND CEMENT

In 2015, OHL Industrial won a contract for the supply of 30 new sets of equipment and the modernization of four existing sets for the expansion of the lead, copper and zinc ore treatment line at the Colquijirca Mine, in Pasco, Peru, owned by Sociedad Minera El Brocal. This project arose from the customer-supplier relationship, underpinned following the successful completion by OHL Industrial of two EPC projects for the same mine.

Also, the division successfully concluded the supply of 36 conveyor belts and 16 process drums for the fertilizer plant of the Ma’aden mining company located in Ras Al Khair, Saudi Arabia.

The award of combined cycle, Empalme I in Mexico I,has been the most important milestone in the field of EPC projects in 2015



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FIRE PROTECTION, SECURITY AND TELECOMMUNICATIONS SYSTEMS

New contracts have been obtained in Spain for the design, supply and installation of passive fire protection in the majority of the nuclear power plants, including those for the HVAC ducts in the Ascó and Almaraz plants. The work performed during the refueling period at the Cofrentes nuclear power plant and for the installations in the new alternative emergency management centers stands out among these contracts.

In the active protection sector, the number of awards has increased in refineries (Cepsa), the industrial, food and mining sectors, with projects for the Mayoral and Mango, OSI Foods and EMED Tartessus automated warehouses, among others.

With respect to construction and infrastructures, the communications, security and fire protection systems were installed in the Terrassa railway stations of FGC (Ferrocarrils de la Generalitat de Catalunya) and in hotel projects in the Canary Islands.

In the context of the international market, Chepro has opened an office in Mexico, Chepro MEX, has won the installations contract for the Gustavo Adolfo Fricke Hospital in Chile, and has started up the fire extinguishing systems of a thermal plant in Suez (Egypt).

SERVICE CONTRACTS

The trend in operation & maintenance (O&M) service contracts has been highly favorable in 2015, and high returns and production figures were obtained from all of them.

An outstanding example is the rhyolite crushing plant for Minera Escondida (BHP Billiton) in Chile, where 100% of the figures guaranteed and the contract objectives were attained.

Also in Chile, the O&M of the copper treatment plant for Codelco has been consolidated, reaching production figures in excess of 610,000 tons per month. Thanks to this work, OHL Industrial was named preferred contractor by Codelco in the División Ministro Hales, awarding it the leaching contract for the oxides plant. This customer has also granted OHL Industrial the Health, Safety and Environment (HSE) award for “zero accidents”, in recognition of 380,185 hours of accident-free work.

In Uruguay, the operation & maintenance of the 65 MW La Jacinta Solar photovoltaic plant has been underway since October 2015, where the hours of availability attained exceed 99.5%.

The 50 MW Arenales solar thermal plant in Morón de la Frontera (Seville) and the 50 MW biomass plant in San Juan del Puerto (Huelva), both in Spain, have also exceeded the figures expected.

In Mexico, the cogeneration plant in the Pajaritos complex located in Coatzacoalcos was finalized successfully, as has also been the case with the project management for the EPC of the Los Ramones 2, north and south, 42-inch gas pipeline.

O&M contracts have performed very well in 2015. All of them have reached high performance and production values


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XACBAL DELTA HYDROPOWER PLANT. GUATEMALA

READING AND WRITING CLASSES, TECHNICAL TRAINING AND AWARENESS- RAISING OF THE LOCAL COMMUNITY

Project Data

Name Xacbal Delta Hydropower Plant

Location Guatemala

Customer Grupo Terra

Start and end 2014

Contractor OHL Industrial

Value Generation

• Development of a strategic infrastructure.• Support to the local communities.• Promotion of the local economy.

In Guatemala, OHL Industrial is building the Xacbal Delta hydropower plant, in the town of Chanjul, department of Quiché.

Technical features of the works

The civil works include:

• A 37.5-m-high dam with maximum 60 m in width, with two upper spillways and a bottom outlet.

• Intake works.• 3.8 km tunnel with a surge tank.• Pressure piping, 3.7 m diameter and 330 m long.• Machinery house with a discharge channel, through which the water returns to

the riverbed.

Water from the Xacbal River will be used for generating the power. The river’s maximum useable flow is 45 m³/s and will turn the two vertical-shaft Francis turbines (29.2 MW per unit) installed in the machinery house.

Júa, Sotzil, Visich and Visiquichum are the communities located in the area of influence of the project. OHL Industrial is working to ensure that the construction of the plant will leave a positive legacy with them, not only by creating quality



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local employment, but also by organizing activities that will contribute to their progress and wellbeing.

For this purpose, OHL Industrial designed a Community Involvement Plan in response to some of the needs of the communities and to the customer’s contractual requirements. In addition, the company has put into place a communication and dialog plan that establishes mechanisms for maintaining open and fluid communication.

The mainstays of that plan consist of three programs devoted to bilingual reading and writing classes, technical training and the reinforcement of health and hygiene practices in the home.

The bilingual reading and writing program in Ixil and Spanish is aimed at the entire illiterate population over 16 years of age, but targeting women especially. This program is being carried out by liaising with the National Literacy Committee (Comité Nacional de Alfabetización - Conalfa) and is taught by local teachers contracted by OHL.

Contributions by the project

• Strategic infrastructure: 55 MW-capacity hydropower plant.

• Support to the communities: 163 people learned to read and write, 33 students trained for work and 90 indigenous women were taught how to make soap.

• Promotion of the local economy: creation of local employment and training forwork.

During 2015, 163 women participated in the program and acquired basic reading and writing skills in Ixil and Spanish. These skills are comparable with first and second grade levels of primary school. Course content on the level of third and fourth grade will be offered in 2016.

The technical training program is being carried out in conjunction with the technical training institute, Instituto de Capacitación Técnica (Intecap), and targets people over 16 who have a 6th-year primary school certificate, except in the courses intended specifically for women. The design of the courses for 2016 will be made by consulting with the local population.

Finally, the program for the reinforcement of health and hygiene practices in the home is carried out through an arrangement with the Guatemalan healthcare authorities and OHL Industrial’s medical services. It consists of the organization of day-long sessions aimed at the local population, focused particularly on the most common diseases in the area.

The issues dealt with in 2015 included:

• Nutrition and food safety.

• Respiratory diseases.

• Diseases caused by vectors.

• Sexually-transmitted diseases.

• Sexual hygiene and health for women.

• Training of work crews in first aid in the communities.

• Awareness-raising workshops about the consumption of alcohol.


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Technical training program

Courses given in 2015

SEA welding course(400 hours)

A total of 10 students participated. All received an official skills certificate given by Intecap and were placed in a job at the end of the course in OHL Industrial or in one of its subcontracts.

Course on frames and formwork (230 hours)

The five participants obtained an official certificate and employment with OHL Industrial or in one of the companies subcontracted for the project.

Basic mechanics course for diesel vehicles(230 hours)

There were 18 participants, who obtained an official certificate and work in OHL Industrial or in one of the companies subcontracted for the project.

Soap-making workshop Four workshops were organized especially for women, one per village. A total of 90 indigenous women participated and learned how to make soap, shampoo, soap for washing clothes, fabric softeners and other cleaning and personal hygiene products.

OHL will design a training program in 2016 for the creation of cooperatives for the manufacture and sale of these products.

Training of work crews.



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STRATEGIC RESERVE TERMINAL FOR PETROLEUM PRODUCTS. JORDAN

INTELLIGENT TOOLS AT THE SERVICE OF ENGINEERING

Project Data

Name ASTPP Jordan

Location Amman, Jordan

Customer Jordanian Ministry of Energy

Start and end 2014-2016

Budget 135 million €

Contractor OHL Industrial, in a consortium with the Jordanian company MID Contracting

Value Generation

• Development of a strategic infrastructure.• Innovation.

OHL Industrial is performing the project for a strategic reserve terminal for petroleum products near Amman, in Jordan. The terminal will have a capacity for storing 340,000 tons of petroleum by-products and 10,000 tons of liquefied petroleum gas. This contract is the first for OHL Industrial in Jordan’s Oil&Gas sector.

For the design of the terminal, OHL Industrial is using intelligent 3D models and the project performance methodology, Building Information Modeling (BIM).

The use of intelligent 3D models is key to the proper coordination and collaboration of the various areas of engineering participating in the design phase of industrial projects, as a result of the advantages provided, on:

• Enabling simultaneous work by teams in different disciplines of the sameproject.

• Ensuring the exchange of relevant information between the different teams in an integrated and automated manner.

• Minimizing errors arising in the manual input of data.

• Improving the coordination among the participants in the design.


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With the same objective of optimizing the collaboration among multidisciplinary teams, OHL Industrial applies the BIM methodology to all of the phases of the project. Its use makes it possible to aggregate and transmit all of the information necessary in the various phases of performance of the project: planning, design and supply and construction processes.

Advantages of the BIM model at OHL Industrial

• Identification of inconsistencies that can be generated as a consequence of theredundancy of data from different origins.

• Controlled transfer of information backed by mechanisms that make it possibleto return to a previous status and guarantee traceability.

• Assurance of the proper fulfillment of the company’s work flows, through theassignment of access permissions that restrict certain actions on the data.

• Reduction of the needs for access to the information through the integratedapplications, by providing information through the user interfaces of theintegrated system, thereby reducing the use of licenses and, consequently,costs.

BIM also integrates information of a non-technical nature but highly significant for the project, such as the information on completion dates and costs.

The integration of all of these activities enables a quick assessment of the impact that any alteration of what is initially planned could have on completion dates and costs, such as changes in the design or a delay in the delivery of a supply, among others.

As a result, this way of approaching the development of the plant enables OHL Industrial to:

• Optimize the coordination between the 2D and 3D design of the engineering.

• Detect problems in the design, such as possible interferences between thevarious disciplines.

• Generate drawings for assembly automatically on the basis of the designmodel.

• Automate the transfer of information from the design to the construction phase, such as, for example, the automated generation of trials for the start-up of the plant.

BIM project performance methodology



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Cogeneration plan in the Francisco Madero I refinery. México.

Documents

OHL Industrialmemoria.ohl.es/media/4066/013_b3_industrial_en.pdf · OHL Industrial, a division created in 2008, ... plant for Minera Escondida ... Sustainability Report 2015 • B3