August 2008 issue - Weir Minerals

http://groupintranet.weir.co.ukWeir Bulletin 3FROM THE CHIEF EXECUTIVEStrategic focusdelivers resultsIn the first half of 2008, the Group’s continuing operations deliveredsignificantly improved revenue, profit and earnings per share whencompared to the same period in 2007.The Group’s performance clearly demonstrates the effective executionof our strategy to focus resources at higher growth, longer cycle markets.The strength of the current order book and contribution from the recentacquisitions will deliver further progress in the second half of the year.2008 first half order input at £734m was 32% above the prior yearperiod reflecting like for like growth of 18% and first time contributionsfrom SPM and Warman. Each of our core businesses delivered goodgrowth. Minerals order input grew 16% to £403m, Oil & Gas order inputgrew 125% to £141m and Power & Industrial input grew 52% to £158m.Minerals DivisionThe Minerals Division now includes all group operations with primary salesto the mining, flue gas desulphurisation and oil sands markets. First halforder input grew 16% to £403m with good progress across all of theGroup’s major mining markets and continuing buoyant conditions inpower, industrial and oil.Revenue increased 29% to £340m with significant growth in SouthAmerica, Africa and China combining with the first time contribution fromWarman and Multiflo. Operating profit increased 45% to £53.4m andmargins increased to 15.7%.While all businesses within the Minerals Division continue to experiencestrong market conditions, the Netherlands operation deserves specialmention due to its significant and continued success in new project workfor major pipelines.In March this year, Warman was added to the portfolio of operationsand has substantially increased Minerals position in the high growthAfrican market. The new African regional team is now in place and theacquisition is making excellent progress.The outlook for Minerals most important end markets remains positivewith substantial new project activity expected in the foreseeable future.The spares stream will continue to benefit from the growing installed baseand the addition of Warman will provide a further engine for growth.Oil & Gas DivisionThe Oil & Gas Division includes the Group’s upstream and downstreambusinesses along with the substantial oil and gas service operations acrossthe globe. First half order input grew 125% to £141m with good progressacross all of the division’s most significant markets and a first timecontribution of £58m from SPM.Revenue increased 135% to £129m with good levels of growth across alloperations and a half year contribution of £70m from SPM. Operatingprofit including joint ventures increased 266% to £27.8m while marginsreflected the significant contribution from SPM’s high margin operationsand increased to 21.6%.The prospects for the Oil & Gas Division are excellent. In upstream,North American gas storage levels are below the five year average andprices have increased more than 60% over the same period last year,providing a very encouraging platform for SPM. In downstream, the needfor increased refining capacity underpins a period of further growth atGabbioneta.power related service centres in Canada, the UK, India, the Middle East andAfrica. First half order input grew 52% to £158m with excellent progress inpower which more than doubled to £94m against £43m in the first half of2007.The division supplies critical safety valves to the power generation marketswhere enquiry levels and government approvals have never been strongerand the low-cost Chinese business is being used to grow competitivenessand increase margins. The global network of service operations specialise inthe maintenance, upgrade and management of power and industrial assets.Revenue increased 10.0% to £100m with significant growth in the powermarkets in China, North America and the UK increasing power-related salesto £45m against £32m in the first half of last year. Operating profitincreased 41% to £6.2m while margins increased to 6.2%.On the back of the Group’s continued commitment to the powergeneration market, the division won new build, upgrade and maintenancework in all of its core markets during the first half of the year. The Frenchbusiness secured new nuclear programmes in China while the Servicesbusiness was awarded an £11m contract to upgrade a power generationoperation in Libya. The US operations both secured new project work inChina and considerably increased new orders domestically.The outlook for Power & Industrial remains encouraging with improvedmargins expected from the core business and significant enquiriesunderpinning confidence in the market. Our current under-utilised installedcapacity provides a significant platform for top-line growth and marginexpansion.StrategyWith effect from 1 May, the Group reorganised its operating units into threesector focused divisions in the higher growth markets of mining, oil & gasand power & industrials. This reorganisation was undertaken with anobjective to extend offerings to customers and further leverage the extensivegeographic position of the Group.In March, we successfully concluded the acquisition of Warman for aconsideration of £113.8m. The business significantly enhances the Group’spresence in the African mining market and contributed £19.4m of revenueand £2.9m of operating profits during the 15 weeks of ownership in the firsthalf of 2008.In June, we announced the acquisition of Mesa, a privately–owned Texasbased supplier of pumps and flow equipment to the upstream oil and gasindustry for a consideration of US$40m. The company has annual sales ofover $20m and operates at mid teens margins and will complement SPM’sposition in the North American market.In July, we acquired 75% of Standard Oilfield Services in Baku for aconsideration of cUS$16m. The business is involved in the supply of oil fieldservice equipment to customers in Azerbaijan and the Caspian region. Thecompany has expected 2008 full year revenue of US$12m and operates atmid teens margins.The Group continues to invest in organic development and extending itspresence in higher growth markets. Continued investments in new andupgraded facilities and ongoing search for high quality acquisitions underpinnear-term plans for top line growth.OutlookIn the second half of 2008 the Group is expected to deliver growth inrevenue and profit when compared to the same period in 2007.My thanks go to all our people at all levels of our organisation for theircontinued contribution to our success and for their tremendous enthusiasmand commitment.Mark SelwayChief ExecutivePower & Industrial DivisionThe Power & Industrial Division includes the combined activities of theGroup’s valves operations, a speciality pump business in Utah and the

4 Weir Bulletin March 2008 Access the Group IntranetContractsGEHO PD order for a worldfirst in bauxite slurry pipelinesWeir MineralsNetherlandshas beenawarded asecond major order from Brazil forGEHO piston diaphragm pumps.The pumps will be used fortransporting bauxite slurry througha 245 km pipeline, the world’s firstlong distance bauxite slurrypipeline. The first order for theParagominas pipeline was awardedin 2004.The Brazilian Mineracao BauxitaParagominas pipeline has nowbeen in operation since early 2007,proving that bauxite can bepumped economically over a longdistance. The pipeline feeds theexpansion of the Alunorte refineryfrom the abundant resources atParagominas´ Miltonia mine. Sincethe start of operation the pipelineoperated well and achieved targetproduction requirements with ahigh availability and at lowoperating costs. For that reasonVale decided to increase thecapacity and procured theadditional GEHO ® pumps againfrom Weir Minerals Netherlands.The use of a pipeline to transportbauxite now makes the explorationGEHO piston diaphragm pumps in operation at the Paragominas bauxite slurry pipelineof remotely located bauxitedeposits more economicalcompared with railway andtrucking. Bauxites vary significantlyin particle size degradation andNorth Sea success with Nexendewatering properties whichrequire a technical study todetermine the feasibility andeconomics for each project. Theuse of caustics as transportmedium, for shorter distances, witha recirculation pipe for the returncaustic may provide an option foreliminating the dewatering issuealtogether.Weir Oil & GasServicesAberdeen havesigned a fiveyear contract with Nexen PetroleumUK for the provision of pumpmanagement services for the Scottand Buzzard fields in the UKContinental Shelf.The Buzzard platform firstproduced oil in January 2007 and isone of the largest North Seadiscoveries in the last decade. In itsfirst year of operation, with thesupport of Weir Services, Buzzardachieved first quartile uptimeperformance for a new offshorefacility in the UK North Sea.Scott was discovered in 1987 andbegan producing in September1993. In recent years, the Scottplatform has undergone a significantmaintenance turnaround andfacilities upgrade to improvereliability and extend facility life.The major factors that secured theagreement included strongcommissioning and start up supportfor the Buzzard Project, creation andmanagement of robust sparingstrategies, quality of work and firstclass engineering support.The agreement which has theoption of an additional two yearsincludes key performance indicatorswhere Weir are incentivised tocontinually add value, optimiseequipment and system performance.Gary Cochrane, key accountsmanager, Oil & Gas said “We areThe Scott platform discovered in 1987excited by the opportunity to furtherdevelop our relationship with Nexen,an ambitious operator who haverecently become a major presence inthe North Sea. We intend to rise tothe challenge of continuallyimproving the service and managingthe equipment and contract toexceed our client’s expectationswherever possible.”

http://groupintranet.weir.co.ukWeir Bulletin 5ContractsA first forAlloa inhydroAlan Stewart, generalmanager, Alloa operations,Weir Power & IndustrialServices EuropeWeir Power & Industrial ServicesAlloa has secured its first majorhydro refurbishment project inIreland. The project is for theElectricity Supply Board’s TurloughHill pumped storage station inCounty Wicklow. The plant wasbuilt between 1968 and 1974 andhas four units which generate atotal of 292 MW and whenoperating in reverse pumps absorb272 MW.The station is the only pumpedstorage scheme in Ireland and iscritical to the electrical distributionsystem providing security ofsupply and the provision of peakpower.The contract is for the completerefurbishment of the turbine,including site dismantling,condition assessment,replacement/repair of specifiedcomponents, site reassembly andcommissioning.The hydro market in Ireland hasa similar age profile to the UK andthis is the first rehabilitationcontract in Ireland for many years.The contract follows Power &Industrial Services benchmarkperformance in hydrorefurbishment in the UK. Thecustomer visited a number ofprevious projects to review theend result which highlighted thebenefits of a positive reputation inthe market place.Project manager Stuart Wilkinscommented, “We are delighted toreceive this strategically importantcontract from the ElectricitySupply Board which gives us theopportunity to demonstrate ourextensive capabilities in this sectordirectly to the customer.”Rio Tinto Alcan awardmajor power upgradeMembers of the Navy squad and visitors in the main tunnel during construction, circa 1927Weir Power &IndustrialServices Alloaand alliancepartner, Andritz VA Tech Hydro havebeen awarded a significantrefurbishment contract by Rio TintoAlcan.The contract is for the supply,installation and commissioning of fivehydro turbine generator units andancillary equipment at LochaberPower Station in the ScottishHighlands. The mechanical scope ofworks will be shared with partnerQatarPetroleumhas awardeda three yearoperation and maintenancecontract for desalination units toWeir Oil & Gas Services Dubai.The contract will cover theprovision of staff and materials toassist with plant optimisation andtechnical support including troubleshooting and root cause analysisthrough Weir’s wider plantexperience to ensure a minimumAndritz VA Tech Hydro who will haveoverall design responsibility to supplythe Francis turbine and governors.Weir will supply new main inlet valves,mechanical balance of plant, siteinfrastructure and installation.Lochaber Power Station was builtwith the intention of supplying electricpower to the nearby aluminiumsmelter located at Fort William,between Loch Linnhe and Ben Nevis.Construction began in 1924 andwas completed in 1929 when thestation was the largest hydroelectricinstallation in the United Kingdom.Qatar Petroleum awardscontract to Weir Dubaiavailability of 95% to meet theoperational demand in Halul Island.Qatar Petroleum represents theState of Qatar government as themain operator and asset holder ofall facilities on the Island. HalulThe station will remain in operationduring the modernisation whichinvolves existing horizontal twin jetPelton turbines driving double DCgenerating units being replaced withhorizontal Francis turbines driving ACgenerators.The project is a continuation of anumber of successful contracts thathave been jointly executed by Weirwith VA Tech in the recent past. Thefirst unit will be installed andcommissioned in 2009 followed bytwo units in 2010 and two units in2011.terminal receives incoming crudeoil and the terminal operationscannot be conducted withoutcertain facilities includingdesalination plants and potablewater system.Qatar Petroleum has placed thiscontract for a third consecutiveperiod with Weir Dubai based oncustomer focus and commitmentto engineering excellence alongwith strong performance incontinuously meeting thecustomer requirements.

6 Weir Bulletin March 2008 Access the Group IntranetContractsTen year contractcontinues at MafraqTeamworksecures majorcontract forupgrade inPakistanBy FAISAL JAMIL, regional salesmanager, Weir Oil & Gas ServicesMiddle EastPak American Fertilisersin IskanderabadMafraq waste water treatment plant in Abu DhabiWeir Oil & GasServices in AbuDhabi havesuccessfullyrenegotiated their existing operationsand maintenance contract at Mafraqwaste water treatment plant. Therevised contract includes thesubstantial addition of a second plantin Al Ain, the second major city in theEmirate of Abu Dhabi.The new three year contract, witha two year extension option, has agreater emphasis on performancebased criteria. Additional keyperformance indicators will bedeveloped with the customer, AbuCollahuasi isa majorcopperproducer innorthern Chile located 4,500meters above sea level. It is ownedby Compañía Minera Doña Inés deCollahuasi SCM and is a jointventure between Xstrata PLC,AngloAmerican and a Japaneseconsortium led by Mitsui & Co Ltd.Weir Minerals Chile has been aDhabi Sewerage Services Companywho have a strategic objective tomove the company in stages towarda full asset management/ serviceprovider business model.Ian Wilkes, general manager ofWeir Oil & Gas Services Abu Dhabisaid “The terms of the new contractgive us greater flexibility in efficientlymanaging our resources as well asfinancial incentives for cost effectiveperformance.”Both the Abu Dhabi and Al Aintreatment plants are currentlyseverely overloaded and the Weirteam will work closely with thecustomer to assist them instrategic partner at the mine forseveral years and has beenawarded a five year contract toservice all Weir equipmentoperating at the plant includingpumps, cyclones, valves, rubberlining spools and millcomponents.The contract will be served bythe Iquique Regional Service andSales office team, headed by JulioGrado.overcoming the challenges createdby the rapid population increase andsocio-economic growth in the region.The successful conclusion to thenegotiations has been achieved as aresult of a continuous ten yearassociation and relationship with thecustomer, coupled with Weir’sprofessionalism and integrity indelivering high quality engineeringand management services in a verycompetitive market. The contractaward is testament to the hard workand dedication of the Abu Dhabiteam, particularly to Peter Glover andhis contracts team in securing thishigh profile contract.Vulco win strategic partner contractCavex hydrocyclone clusterin CollahuasiWeir Oil & Gas Services Dubai hassuccessfully negotiated a majorcontract to upgrade andcommission two AEG-Kanis steamturbines at Pak American FertilisersLtd, Iskanderabad, Pakistan.The contract for the repair,refurbishment andre-commissioning of the turbinesincludes new rotor blades andnozzle blocks with emphasis onimproved turbine performance.The successful conclusion of thenegotiations were achieved as aresult of continuous customercommunication, coupled with theWESCO professionalism andintegrity in delivering high qualityengineering and managementservices in a very competitivemarket.The two AEG-Kanis condensingtype steam turbines have been inoperation since 1958 and were lastoverhauled in 1994.Instrumental in securing thecontract were Weir Dubai’sregional sales manager Faisal Jamilwith the strong technical supportof Lee Oliver and Kearney Doughtyof Weir Turbomachinery in Barton,UK. An excellent example ofcollaboration and team workacross the regions.

http://groupintranet.weir.co.ukWeir Bulletin 7ContractsWarmanflexibility winsBy Bob Vanderpan, seniortechnical support engineerWeir MineralsNorthAmerica wona contractfrom Hibbing Taconite in theNorth Central Minnesota IronRange. Close cooperation withthe customer and the flexibility ofthe Warman pump range securedthe contract.The customer required majorcapacity improvements in theirtailings disposal method. Theproject requirements specificallymatched the abilities of theWarman 1000 psi high pressureAHPP model pump. Inanticipation of the project, WeirMinerals North America haveupgraded the existing 1000 psipump to full rubber linedcapability, extending the range ofthe applications for the Warmanhigh pressure pump that havebeen in operation at similaroperations since 1979.Hazleton winnuclear orderWeir Hazleton has received an orderfrom the Washington SavannahRiver Corporation (WSRC) forspecialty vertical sump pumps.Both units made to special designsconform with highest qualityrequirements of the US government.The units will be used for thesludge removal of highly radioactivewastes.Giant cyclone clusters on completionMajor iron orewinSangan ironore mine isone of thelargest oredeposits in the EMEA region withover 1,200 billion tonnes ofreserves. When they wanted tofully exploit this potential theyturned to Danieli SpA and theseparation solutions of WeirMinerals Europe.Danieli SpA is a leading supplierof equipment and plants to themetals industry throughout Europeand wanted a supplier withmatching credentials. Danieli SpAfelt confident that Weir Mineralswas the right choice and awardedthem with a contract.The contract involved a packageof Warman ® horizontal and verticalslurry pumps, Cavex ® hydrocylonesand Isogate ® slurry valves to ensureBy Martino Zanotti, field sales manager,Weir Minerals Europethat annual production targets of500,000 tonnes of metal perannum is reached.The contract was significant interms of the size of the cycloneorder and additional space had tobe rented to accommodate thegiant cyclone clusters. Downtimewill be minimised through the useof slurry pumps and plantrecoveries will be optimisedthrough the engineered hydraulicsof hydrocyclones.All of these benefits are ultimatelydelivered through one commonfactor. Weir Minerals corecompetences in wear resistantmaterials and engineeredhydraulics technologies, which givea global reputation for deliveringlow cost of ownership and ensuremaximum recoveries in challengingprocess applications.Multi-million Euro nuclear contract from ChinaBy STÉPHANE LAMOTTE, nuclear department general manager, Weir Power & Industrial FranceWeir Oil & GasAberdeenbegin newrelationshipwith FairfieldEnergyJill Cassidy, marketingcommunications co-ordinator,Weir Power & IndustrialServices EuropeWeir Oil & Gas Services Aberdeenhave signed a three year contractwith Fairfield Energy for theprovision of pump maintenanceservices for the recently acquiredDunlin Asset on the UK ContinentalShelf.Weir Aberdeen has a vastamount of knowledge andexperience gained over a numberof years managing the pumpmaintenance, prior to thedivestment of the Dunlin Asset byShell Exploration & Production. Itis this knowledge and experiencethat is vital in assisting FairfieldEnergy and AMEC with thesuccessful operation and futureplans to increase production.Gary Cochrane, operationsmanager Weir Oil & Gas ServicesAberdeen said “We are delighted tohave the opportunity to work withFairfield Energy and AMEC andmaintain our support for the DunlinField. I am sure our experience andengineering expertise will greatlyassist in achieving future targets.”As part of its11th five yearplan, whichruns until2011, China is increasing the nuclearportion of its electricity productionfrom 1.6% to 4% targeting 40 GWegenerated output by 2020. Thecountry forecasts an additionalrequirement of 30 GWe, or 30 newreactors of 1000 MWe each.Currently 11 reactors are inoperation with 22 under constructionor at design phase. To speed up theprocess, Chinese authorities havedecided to build several “copymodels” of the existing pressurisedwater reactor 1000MWe designinstalled in Ling Ao in Guangdongprovince.The China Nuclear PowerEngineering Company Ltd (CNPEC) asubsidiary of China GuangdongNuclear Power Company (CGNPC) isworking on the construction of 14new reactors at three differentlocations – Hongyanhe, Ningde andYangjiang.Weir Power & Industrial France hassigned a multi-million euro contractwith CNPEC.This contract will supply SEBIMbrand pilot operated safety valves forthe protection of the primary reactorheat removal and chemical/volumetric control circuits of these 14units.The first equipment is due byNovember 2009 with projecteddeliveries through till 2014.

8 Weir Bulletin March 2007ContractsMajor powercontract fromLibyaWeir Power& IndustrialDivisionscored amajor success in Libya by securinga multi-million pound contract at alarge coastal power station for asteel plant.The division will overhaul andre-commission a number ofturbines, pumps and valves on thepower and desalination plant. Thedelivery phase will run over 18months.Project director John Gallachersaid: “This is a major successagainst worldwide competitionand puts us in a strong position tocapitalise on that success in acountry which is undergoingmajor upgrades and increasing itspower capacity.”Isogate orderfrom GoldcorpBy Cal Cobb, valve productmanager, Weir Minerals NorthAmericaWeir MineralsNorthAmerica hasreceived anorder for Isogate knife gate valvesfrom M3 Engineering’s Tucson,Arizona office. M3, acting asengineering and procurementagent for Goldcorp, purchasedthe Isogate WS series and the 36”Isogate WB series valves for use inGoldcorp’s newly developedPeñasquito Mine Project inZacatecas, Mexico. Oncompletion the project willproduce 130,000 tons of gold,silver, copper, zinc and lead perday.In addition to the valves, WeirMinerals North America willprovide 650MCR pumps for themine’s mill circuit and severalsmaller mill pumps includinghorizontal rubber lined,horizontal froth, and verticalsump pumps.Territory presencemeans big businessin ChinaThe continuedsuccess of WeirValves &ControlsSuzhou operation has enabled thePower & Industrial Emerging Marketsteam to establish a strong foothold inthe territory. From this position ofstrength the team can providesupport to other Weir Power andIndustrial companies, maximising theopportunities in the region.The operation is now looking atdeveloping opportunities andinitiatives for Weir Specialty Pumps,now part of the Power & IndustrialDivision and increased after marketsupport services.Since the launch of the Chinesesales office in 1998 and themanufacturing operation in 2006,the team has worked with otherWeir Power & Industrial facilities tosecure a number of importantcontracts. More recently the teamhas helped other divisionalcompanies secure contractsincluding:Weir Power & Industrial France• GNPC/Hong Yan He, Ning De &Yang Jiang nuclear power plantprojects for Sebim Pilot OperatedSafety Valves;Weir Power & Industrial UK• SINOPEC /Tianjin and MaomingPetrochem for Hopkinsons GateValves and CGNPC / Ling Ao IInuclear power plant for a BatleyWeir WarmanAfrica will besupplying avariety ofpumps to Pilansberg PlatinumMines (Pty) Ltd, a wholly ownedsubsidiary of Boynton Investments(Pty) Ltd. Boynton Investmentshave been granted mining rightsSuzhou facility in ChinaButterfly and Hopkinsons SpringLoaded Bypass PackageWeir Power & Industrial US• Dongfang Electric PowerCorporation, Electric PowerCorporation and Harbin ElectricPower Corporation all for Atwood &Morrill FFRCV solutions.The Weir Production System is alsoproving key to continued success inChina, as have the quality standardsemployed by the Chinese operation.The organisation’s processes,combined with the procurementtraining of employees, played amajor part in the recent successfulaudit by Siemens of the Suzhoufacility.Andrew Will, sales and marketingdirector of the Emerging MarketsPumps for Pilansberg Platinumby the South African departmentof Minerals and Energy to over fourproperties in the Pilansberg projectarea.Ore will initially be mined fromthe Tuschenkomst propertyfollowed by the Ruighoekproperty. The total project area is14,511ha and is located on theteam said, “Being able to offer acomplete sales, manufacturing andafter sales market support servicessolution, all from within the territory,is providing customers with theadded value they demand.“Having a local presence in theChinese market is clearly valuableand is helping Weir Power &Industrial establish a competitiveedge in China.”Earlier this year, the Suzhou facilitywas included in Siemens approvedsupplier database for its powergeneration division following acustomer audit. The accreditationfurther strengthens the reputation ofSuzhou as a world classmanufacturer of products for thepower generation market and thecontinued growth of the operation.western limb of the BushveldComplex in South Africa’s NorthWest Province around thePilansberg intrusion and next toBarrick’s Sedibelo project. Theseprojects are estimated to containabout 90% of the world’s platinumresources and around 80% of itschrome.

Weir Bulletin 9Customer FocusPower & Industrial targetMiddle East marketsProviding anall inclusivesales, manufacturingandservice support package for theWeir Power & Industrial divisionaloperations, the Middle Eastbusiness has grown significantlysince its launch in 2006.Beginning life back in 2005, theMiddle East manufacturingoperations developed when WeirValves & Controls startedmanufacturing the HopkinsonsLow Pressure parallel slide gatevalve in conjunction with WeirEngineering Services in Dubai.Machine castings were sourcedfrom a local foundry and othercomponents were supplied fromthe UAE, the UK and India. Thevalves were kitted at Weir Valves& Controls facility at the Jebel AliFree Zone in Dubai andassembled, tested and painted byWESCO’s valve servicing team.In 2006, WESCO’s valveservicing business merged withWeir Valves & Controls. This wasan excellent move as far as theMiddle East operation wasconcerned and since then thevalve manufacturing and servicebusiness has gone from strengthto strength.Last year Weir Valves &Controls Middle East obtainedISO 9001:2000 qualitycertification from Lloyds RegisterQuality Assurance, coveringmanufacturing, repair, serviceand refurbishment of valveproducts and sales andmarketing.Earlier this year the facilitymoved to Sharjah InternationalAirport Free Zone in the UnitedArab Emirates. Located in an idealarea, the zone offers excellentsea, land and air transport linkswith access to over two billionconsumers across the GulfCooperation Council countries,the Commonwealth ofIndependent States, Asian subcontinentand parts of Africa.Since the move to Sharjah theorganisation has seen rapidgrowth in product manufactureand on-site servicing. Capable ofworking across all markets in theregion, the local knowledge andcost effective location of theMiddle East operation is provinginvaluable. In the first half of theyear it successfully secured asignificant service contract withDugas involving 30 technicians.As well as working onHopkinsons Valves, the WeirPower & Industrial Middle Eastoperation is currently developingWeir Specialty Pumps and turbomachinery prospects in theregion.The Weir Group key accountmanagement process will be amajor opportunity for crossdivisional and group marketdevelopment.Amco-Weir receive award of appreciationSaudi team deliverscritical compressorrotor rebuildA catastrophicfailure in acentrifugal gascompressortrain used in fertiliser production at aSaudi petrochemical plant resulted inlost production and significantrevenue. This set a challenge forAmco-Weir. They needed to completethe repair in a 30 day turnaround.The compressor rotor wasre-engineered and rebuilt incooperation between Amco-Weir inSaudi Arabia and WeirTurbomachinery in Barton UK.Demonstrating world class technicalsupport, logistics of manufacturingand ultimate delivery.Components manufactured in theUK were hand carried to Saudi, whichincluded obtaining a Saudi visa withthe help of the client in less than fourby JOHN MORIN, generalmanager, Weir Oil & GasServices – Amco-Weirhours!After successful commissioning, thecustomer requested that Amco-Weirsubmit a “technical paper” on therepair procedure used in the overhaul.This service is not offered by theoriginal manufacturer. In addition,Amco-Weir has received another rotorfor overhaul and enquiries for furtherwork.John Morin, general manager ofAmco-Weir said “This was anexcellent example of working closelywith the client and of cooperation andsupport between Weir divisions inopening up new areas of business.The commitment to excellence by allthe joint venture team in Al-Khobar tomeet the 30 day deadline to repair,install and restart the compressortrain, despite a number of unforeseenobstacles, was commendable.”Weir SPM on show at Offshore Technology ConferenceIn May, WeirSPM wasamong 2,500companiesexhibiting at the 2008 OffshoreTechnology Conference (OTC) inHouston, Texas. Over 76,000visitors from over 100 countriesviewed the latest technologiesand product and service offeringsfrom the oil and gas industry.Weir SPM exhibited a variety ofpumps, flow control andinnovative safety products, as wellas focusing on the growingcapabilities of its post sale serviceoffering.Members of the Weir SPM salesteam from around the world wereon hand to meet with customers,as well as members of theengineering and productionteams. Weir SPM also participatedin the Global Petroleum Show inJune (see pages 10 & 11) and willbe showing at the Permian BasinInternational Oil Show in Texas inOctober.

10 Weir Bulletin March 2008 Access the Group IntranetCustomer FocusA new focus on our keyGroup PR manager HELEN WALKER reviews theOrganised for radical growth introduction of the new divisional structureMay 1, 2008 marked a majormilestone in the Weir Journey toExcellence. Following severalmonths of intensive planning, theGroup moved its reportingstructure to three sector focuseddivisions - Oil & Gas, Power &Industrial and Minerals with theServices businesses being integratedinto the three divisions to provide acomplete end to end offering to allcustomers.As the Group moved into its nextexciting phase, CEO Mark Selwaysaid: “We are talking aboutinvesting heavily in our commercialand geographic positions andmaking the customer thecentrepiece of Group’s focus. Morethan 90 percent of Group’s input isalready related to these threesectors and we are determined toget closer to our customers anddeliver end to end solutions, ratherthan just products.”Gabbioneta and SPM along withthe Middle East, Aberdeen andrelated US and Canadian Serviceoperations form the Oil & GasDivision – headed up by StephenBird, along with the two recentlyannounced acquisitions of MesaManufacturing in Texas andStandard Oilfield Services in Baku.The Minerals Division iscomplemented by Floway, Lewisand the Canadian pumps businessas well as the Australian Serviceoperations to accelerate theiraftermarket growth. The extendeddivision is run by Scot Smith.The third division is Power &Industrial, where the Group hassignificant ambitions to grow. PhilClifton has combined the existingValves businesses with WeirSpecialty Pumps and the power andrelated service operations in the UK,Canada and India.Steve Simone has a global role asmanaging director Services. Stevewill be ensuring the continuingintegral position of Services withinthe new divisions as well asestablishing a key commercialbenchmarking programme acrossthe divisions.Mark Selway added: “A sectorfocus helps in many ways. We willhave oil people talking oil markets,mining people talking miningmarkets and so on, and it will helpus channel our investments at thoseareas which provide strongestgrowth.”The Minerals Division has alreadyextended its offerings beyondpumps by bringing mill liners,cyclones and dewatering productsto existing customers and doubledsales in the past five years.The SPM acquisitiondemonstrated that by adopting asector focus companies can extendtheir offerings beyond pumps andvalves and into aligned productswhich can be sold and serviced byWeir globally.Realigning the Services businessto these particular sectorsintroduces another major enginefor growth as the services teams arealready very close to customersresponding and fixing problemsquickly. In all, the Group hasservices businesses in 17 countriescovering almost 70 locations.From the investors’ viewpoint,Weir – a new brand of company at the GlobalNICOLE BERNARD, marketing communications co-coordinator,Weir Power & Industrial, North America reportsThe new sector focused divisionalstructure of Weir Group made itsfirst public appearance at theGlobal Petroleum Show inCalgary, Canada in June.The Global Petroleum Showruns every other year and attractsapproximately 60,000 visitors.The Weir stand – one of thelargest ever taken by thecompany – enjoyed a primelocation to showcase andcommunicate the customerbenefits of the new structure tothe industry.The Weir Services marketingteam in Toronto had beenplanning the show sinceSeptember 2007, but when thenew Group structure wasannounced, they rose to thechallenge along with the otherdivisions to embrace the newClockwise from top left:Weir Minerals Flowaywelcome visitorsWeir SPM – drillingand well completionCanadian oil sandsection of Weir standbranding and messages – andsuccessfully delivered just in timefor the show.The stand was structured intocustomer focused market sectionswith the Weir companies andtheir demonstration equipmentwithin each section, identified bylarge colour coded banners.Duo-toned sector specificphotographs wrapped around theexterior walls of the in-boothhospitality lounge helpedcustomers identify the alignmentbetween the market sectors andthe Weir company brands,products and services.A Weir Oil & Gas purplebackdrop, entitled drilling & wellcompletion, featured Weir SPMequipment & services. WeirMinerals orange backdrop wasentitled Canadian Oil Sands and

http://groupintranet.weir.co.ukWeir Bulletin 11Customer Focussectors“I am looking for commitment and passion fromevery employee to make our transition to acustomer facing business a complete success.”MARK SELWAY CEOthe new structure is an excellentmove. They recognise that theGroup is in great markets but theycould not easily identify the profitdrivers under the previous reportingstructure.One analyst commented that thereorganisation to the three divisionshelped to reinforce the point thatWeir’s end market profile is ‘one ofthe most favourable in theuniverse.’ The comment went on“We believe the new structurecould also create new opportunitiesto build stronger customerrelationships as Weir’s servicesbusinesses become more closelyaligned with the manufacturingoperations.”Although the reporting structureof the Group has changed, thefundamentals of the business havenot changed. Mark told delegatesat this year’s Group managingdirectors’ conference: “Our attitudeto integrity, health and safety, andfinancial prudence will not change.In fact, I am expecting continuedprogress across every business – butthe emphasis will need to shift tomake customers and markets thecentrepiece of the Group’s andeach companies’ ambitions.“I am looking for commitmentand passion from every employeeto make our transition to acustomer facing business acomplete success.I know we have the rightstrategy, the right direction and thecapabilities to excel in a customerfacing organisation and I amconfident that this change willunlock all the potential we have inthe Group.“The re-organisation in itselfwon’t deliver the results, that’sdown to us, applying the “WeirWay” to everything we do...butnow with much more focus on keymarkets and customers.”Taking ona new lookFollowing the unveiling of thenew structure at the Group’sannual conference formanaging directors, thedivisional managing directorsand their teams set aboutcascading details of the neworganisation to their teamsglobally.Branding has been key to thetransition to the new divisions.Although the overall brandguidelines remain the same asbefore with a strong Weirumbrella brand, companieshave been embracing their newdivisional colours and styles instationery, marketing literature,uniforms and signage.The websites have moved toan interim stage to reflect thenew divisions, in advance of amajor website update to belaunched at the end of this year.Petroleum Showfeatured a variety of pumpexhibits currently utilised in thedevelopment of the Canadian OilSands industry. The blue of WeirPower & Industrial highlightedproduction & pipeline andfeatured Western Canada’sService Centre capabilities andengine solutions. The fourthsection entitled DownstreamRefining, featured productsolutions ranging fromprogressive cavity pumps toinstrumentation to filtrationsolutions.Bill Tipton, division marketingvice president for Oil & GasDivision said, “This was the firsttime that all three divisions underthe new Group structure wererepresented together in a globalindustry conference and we reallywanted an integrated messagethat would play for allparticipating Weir companies– we definitely were successful onthat front. Additionally, it wasvery interesting and encouragingto see the associates from thedifferent Weir companiesdeveloping intercompanyrelationships and learning moreabout each others products andservices – a benefit that willsupport our company growthaspirations!”Without a doubt, it was a verysuccessful show thanks to theToronto marketing team, theGlobal Petroleum Showcommittee and all the associatesacross the divisions, who workedwell together to deliver.Right: Warman Pumps andCavex cyclone on show

14 Weir Bulletin March 2008 Access the Group IntranetBusiness ImprovementBy GRAHAM DONALD, technicalmanager – Southwest, WeirMinerals AustraliaBHP Billiton’s Ravensthorpenickel operations officially openBHP Billiton’sRavensthorpenickeloperationofficially opened in May this yearwith a ceremony officiated by BHPBilliton’s chairman Don Argus,Western Australian Premier, AlanCarpenter and Federal ResourcesMinister, Martin Ferguson.The opening of the plantshowcased Weir’s capabilities withthe successful collaborative effortbetween Weir Minerals and WeirMinerals Services businesses inAustralia.Weir Minerals Australia hassupplied various products usedthroughout the plant and securedthe contract for the off-sitemaintenance of the pumps andvalves for the operating plant.During the commissioningstage, Weir Minerals advised thecustomer on design changes andassisted in trials of the beneficiationplant. These contributions resultedin increased outputs with apotential upgrade currently beingevaluated.Weir Minerals Services Australia,in conjunction with specialists fromoverseas Weir operations combinedtheir expertise in the design, supplyand installation of the two seawater desalination plants, ademineralisation plant and thewaste water treatment plant andwill continue to service the plant inthe future.Minerals sales teamexpands in ChinaWeir MineralsChina hasexpanded thesales team inShanghai and Beijing to improvesupport to customers in the growingChinese mineral market. Specialistshave been appointed to handlecustomer needs for Cavex cyclonesand Isogate valves. The existing teamwho support and service Warmanpumps has also expanded. By theend of 2008, sales engineers will belocated in seven major Chinese citiesand the first Total Care service centrein the territory will be open.The expanding sales team ensuresthat customers receive the WeirMinerals products as well as ongoingservice solutions to support thoseproducts. This includes regularcustomer visits to assist in the upgradeprojects currently in progress, onsitetraining and current equipmentperformance optimisation. Sha Li,sales and marketing director forChina, reports: “Mutual trust isestablished through joint design andthe risk of using poor performing andlow quality replicated product isreduced”This year seven major mineralprojects have been awarded forWarman, Cavex and Isogate productsfor gold, copper, lead/zinc and coalmineral processing plants. The abilityto supply a range of products andsizes has allowed optimisationequipment selections, especially forimportant mill circuit duties wherecyclone and pump requirements havebeen matched. Sales also include theWarman AHF horizontal froth pump,a higher efficiency and easiermaintenance product compared tothe more common vertical frothpumps used in the Chinese mineralmarket.A new centre for Weir SPM“What tookyou so long toopen here?”was theresponse from oil service companycustomers during Weir SPM’s latestservice centre opening.“The new Longview, Texasbranch has drawn attention andpraise of all eight service companiesin the area”, said Ray Gilbert, vicepresident sales & service centres forWeir Oil & Gas Division.As it increases its geographicpresence along with its customerbase, Weir SPM has begunimplementing plans to open severalnew service facilities around theworld aimed at providing a quickresponse capability for customers.These service facilities will offer flowcontrol recertification, new productsales, pump repair in select locationsand other post sale support services.Weir SPM hosted a grandopening celebration at its Longviewfacility where over 250 customersfrom the area joined members of theteam for a barbeque and tour of thenew facility. Products including theSafety Hammer, Safety Iron and FlowLine Safety Restraint System were ondisplay in the new facility. “Longviewis centrally located for East Texascustomers and is a welcome sourceof recertification services by the localwell service companies, “ said DavidMeadows, service centre manager atLongview.Ray Gilbert added: “Even thoughthe East Texas region is a large, wellestablished area, the future is verypromising for Weir SPM. The rigcount has almost doubled over thelast five years and Longview islocated close to the recentlydiscovered Haynesville oil shaledeposits which cover northwestLouisiana.”Weir SPM has also recentlyestablished service centers in Searcy,Arkansas and Villahermosa, Mexico.

http://groupintranet.weir.co.ukWeir Bulletin 15Business ImprovementInvestmentbrings newopportunitiesto BartonSteve Simone opens the Barton facilityWeir Power & Industrial opened anew workshop facility at the Bartonon Humber site. Customers andsuppliers from all over the UK andoverseas attended.The investment in the new buildingbrings a number of benefits to thebusiness as the workshop managerJohn Fillingham explained. “As well asexpanding our facilities our craneagecapacity has been trebled, meaningwe can accommodate much largermachinery than before.“The workshop can handle steamturbine components up to 75Mw;opening up new opportunities andmarkets and we have the potential totake on larger more technicallychallenging projects.”The workshop is fully insulated,with an energy efficient heatingsystem and is equipped to recyclerainwater for use in its pressurewashing facility.The facility has already won aneight year maintenance contract at anincineration plant in South EastEngland and significant potential hasbeen identified within local industry.Field services manager MartinSeaton said: “As a purpose builtfacility, the workshop will enable us tofurther improve the standard ofservice to local customers, throughgreater efficiency and a faster responsetime. It will prove invaluable to Weir’sinternational business, where we haverecently been involved in projects inPakistan, Egypt, West Africa, thePhilippines and the Middle East.”Neil Mackmin, operations directorfor Turbomachinery added: “The newfacility is a key part of our long termstrategic plan to develop the businessand to significantly expand ourparticipation in the globalturbomachinery business.”Weir SPM builds itsfirst manifold trailerBy MATT TREIDA, marketing co-ordinator, Weir SPMWeir SPMcompleted itsfirstproduction ofa Safety Iron Manifold Trailer inJune. A manifold trailer is a highpressure manifold system consistingof low and high pressure pipe andvalves that are permanentlymounted onto a trailer allowing thesystem to be transported to a wellsite as needed. The manifold permitsmultiple fracturing pumps to beconnected into a single source,facilitating the high pressure fluidand proppant mixture to bepumped into the well head duringfracturing operations.The Weir SPM manifold trailer isdistinguished from competitors inthe industry through the utilisationof Safety Iron , Weir SPM’s provenclamp connecting flow line system,designed to increase safety on sitewhile providing a superiorperforming connection whencompared to the traditional hammerunion connection. The beneficial useof Safety Iron in semi-permanentapplications ideally lends itself foruse in the manifold trailer.Completing the first trailer wastruly a multi-departmentalaccomplishment. Project leaderAllen Sutton said: “We pulledtogether an energetic andresourceful team to deliver thisexciting new product line. Whenwe’ve discussed the Safety Iron Manifold Trailer with customers,they’ve shown keen interest in ouroffer. The product will be a big itemfor growing the flow productbusiness.” The Safety Iron Manifold Trailer was designedthrough communication withvarious customers and the first trailerwas delivered to Key Energy Servicesin Odessa, Texas. The product is anexcellent addition to the SafetyIron family of products as well as agreat addition to the whole productportfolio manufactured by the WeirSPM flow control team.New facility forspecialist coatingsWeir specialist coating systems unitrecently moved to a new highly efficientfacility integrated within the Northwichcentre of engineering excellence.Investment in the new facility provides an excellent workingenvironment and a higher standard in protective coatingexpertise. Completion and transition of the facility took sixmonths and is now fully operational. One of the first orderscompleted was for a British Energy power station.

16 Weir Bulletin March 2008 Access the Group IntranetBusiness ImprovementTotal Carein thePeruvianAndesBy JOSÉ A. GHIVARELLO, generalmanager, Weir Minerals PerúCajamarca is apicturesquetown locatedin thenortheast Peruvian Andes. Theregion is one of Peru’s mostimportant mining areas where aseries of new mining projects areplanned, including Newmont MinasConga copper operations in 2011and Anglo American Michiquillay in2012.Weir Minerals new Total Carecentre in Cajamarca startedoperations at the end of 2007 tocoincide with the startup of twoimportant projects: NewmontYanacocha, South America’s largestgold producer Goldfields CerroCorona, a greenfield copper mine.Its main business focus providescontinuous, short term and face toface support to customers, allowingthe operation to build long termcommercial relationships thatdifferentiate the company from thecompetitors.Minerals at EXPOMINWeir Minerals featured prominentlyin Latin America’s largest miningshow in April. The biennialExpomin 2008, one of the top threemining shows in the world, tookplace in Santiago, Chile with over900 exhibitors and more than 3000brands represented.Weir Minerals Latin America wasjoined by Weir Minerals Netherlandswith Geho products and WeirMinerals Floway from California,who joined Minerals in the recentdivisional re-organisation. Geho wasrepresented by Jos Sloesen andFloway with Luis Betancourt andCraig Hickerson.The well presented display had anexcellent location with morecustomers visiting than anticipateddue to the continuing growingdemand for mining equipment.Capbreton pumping systemThe town ofCapbreton inFrance hadbeen removingsand from the Boucarot channel byloading lorries in the north andtransporting and disposing in southernbeaches. The costly solution wasnon-ecological and restrictive. WeirMinerals France was asked to conducta feasibility study on the transfer ofsand by Eurotechnologie, a hydroejector specialist.Following the study, Weir MineralsFrance installed a pumping systemdesigned to solve the beach erosionproblem on the Aquitaine coast.There are currently only two othersystems of this type in use throughoutthe world.A bypass hydraulic system nowoperates with a hydro ejector. Thesystem is capable of transferring anaverage of 180 m3/h of sand,corresponding to 12 to 15 weeks’operation by lorry.Supporting the craftsmen of the futureBy TREVOR MACKAY, workshop supervisor, Weir Minerals Services AustraliaThird yearfitter andmachinistapprenticesfrom Wollongong Technical andFurther Education Institution recentlytoured the Wollongong facilitywhere service centre manager, JoeMonteleone and workshopsupervisor Trevor Mackay hosted aseries of information sessions.The students were undertakingthe “Pump and PumpingMaintenance” module of theircourse and most had no previousexposure to a varied range ofpumps.The interactive sessionsencouraged students to getinvolved, demonstrating thedifferent styles of pumps, theiroperation and the numerousmethods and techniques involved inthe repair process. The students wereparticularly interested in mechanicalseals, types and applicationsincluding the variety of materialsused in pumps and troubleshootingpumps in service.The students were eager to learnand embraced the opportunity totour the facility enthusiastically. Theoverall feedback was very positiveand the institution has requestedthat the sessions become a regularpart of the training programme.

http://groupintranet.weir.co.ukWeir Bulletin 17Business People ImprovementLong Service AwardsOver 200years ofservice werecelebratedrecently by six Weir Valves andControls UK employees at a dinnerand presentation of Long ServiceAwards in Huddersfield. 40 yearservice awards were made bymanaging director Neil Williams toJohn Skilbeck, Ashley Crossland,Alyson Benson and Steve Brookeand 25 year awards to Nick Russelland Mike Cowell, pictured withtheir partners.Earlier in the year, Geoff Firth, asenior draftsman in the engineeringdepartment, celebrated hisretirement of 15 years service atlunch with work colleagues wherehe was presented with gifts byengineering director TerenceScrutton.Weir Minerals Indiasupport localcommunitySuccessfulapprenticeshippartnershipWeir MineralsIndia aims toimprove thequality of lifefor all its stakeholders through aseries of initiatives that provide aplatform for employees to helptheir communities. Employeeshave named the initiatives WeirCares and these fall into threecategories.‘We @ Weir’ focuses on workplace initiatives and identifiesemployees and family members asthe beneficiary group.In 2007 employee educationprogrammes were introduced forall shop floor employees. This yearthe planned educationprogrammes consist of basiccomputer training, an advancedcourse in English and personalitydevelopment programmes.Health awareness and preventivehealth care was launched in 2007and is continuing to developthroughout 2008. The programmeincludes initiatives to train shopfloor employees and facilitate themto educate their communitymembers.Employee engagementprogrammes have been set up toallow employees and their familiesto celebrate a day of culturalprogrammes and events.‘WEIR 4 U’ focuses oncommunity outreach initiatives andidentifies society and thecommunity as the beneficiarygroup. Child labour, education andhealth are the areas identified byWeir 4 U for the year 2008.During 2007 a school wasadopted under the National ChildLabour Project (NCLP). The schoolfunctions in a community centreadjacent to a slum which targetschild labourers aged between 4and 14. The aim is to help childrenthrough active involvement in theirupbringing by providing betterfacilities, visiting and interactingwith them and their parents,supporting coaching, assisting withteaching equipment, books,clothes and also by providingfinancial support for children andtheir carers. In order to meetfinancial requirements, a specialfund was set up in May withcontributions from Weir MineralsIndia and its employees.An industrial training institutewas identified for mentoring andguiding youngsters throughvarious planned activities as part ofthe youth mentoring programme.Employees devote their personaltime towards this initiative.A blood donation camp,organised in the factory during2007, will continue on an annualbasis.A tracking team is also in place tomonitor and evaluate the progressof ‘We @ Weir ‘ and ‘Weir Cares’ asthe company continues to identifyother actions to support sociallyresponsible initiatives on anongoing basis.Alloa apprentices DavidBridgeman, Adam Dowd, StuartRice, Neil Paterson and LewisIrvine have successfullycompleted their first year training.They all achieved thequalifications – SVQ Level 2Performing EngineeringOperations and NationalCertificate in MechanicalEngineering – during acomprehensive and intense 36week training programme.The successful partnershipbetween Weir Power & Industrialand East Kilbride Group TrainingCentre is now entering its tenthyear, during which 34 apprenticeshave undergone training.Training advisor Jim Lewarscontinues supporting theapprentices in Alloa for theremaining three years of theirapprenticeship which culminatesin an SVQ Level 3 in MechanicalManufacturing and an HNC inMechanical Engineering.

18 Weir Bulletin March 2008 Access the Group IntranetPeopleWeir Minerals helpBolivian flood victimsSupport forthe ChinaearthquakereliefOscar Bauer, Ricardo Garib, Freddy Bersatti, Fredy Torrijo, Ruddy Cayoja, Andrés CostaWeir MineralsSouth Americadonated a highcapacityextraction water pump to the Boliviangovernment at the recent Expomintrade show in Santiago, Chile.The donation was an act of supportand gratitude from Weir Minerals tothe Bolivian people, affected byrecent floods. The Bolivian generalconsul in Chile, Mr. Freddy Bersatti,indicated that the device will beassigned to the Santa Cruzdepartment, a zone often affected byfloods and weather emergencies.Ricardo Garib, Weir Mineralsregional director, explained that thedonation was the company’s way ofshowing its gratitude to a countrythat has welcomed it for 40 years.“That’s why we feel it is our duty togive our support in this matter,” hesaid.In addition to the water pump, thecompany also offered Bolivianauthorities a Weir Minerals technicalteam to support the pump’sinstallation.Mr. Garib and Mr. Bersatti werejoined at the presentation by WeirMinerals Chilean executives OscarBauer, sales manager in Chile andAndrés Costa, exports manager.Representing the Boliviangovernment were Freddy Torrijo,adjunct general consul, and RuddyCayoja, commercial attaché.For more than half a century, WeirMinerals has been an equipment andspare parts supplier, contributing tothe mining and industrial fields’development process in Chile andthroughout Latin America. WeirMinerals have actively participated inmost of the great mining projects inChile and in several other world classprojects in the region.On Monday, 12 May a majorearthquake, measuring 8.0 on theRichter scale jolted south westernChina’s Sichuan Province,destroying buildings, roads,schools and hospitals, as well asinfrastructure includingcommunication networks andelectrical power towers.Tens of thousands of peopledied or are missing and more than45 million people were affectedby the earthquake – the worstnatural disaster to hit China in 30years. Weir employees in bothChina and Australia have beencollecting for the disaster relieffund since May.With divisional support fromboth Minerals and Power &Industrial, who have facilities inChina, over £10,000 has beenraised for the relief efforts, with asubstantial part of this going tothe Red Cross earthquake reliefappeal. To date, over 800,000survivors have received assistancefrom the Red Cross.The Leadership Developmentprogramme has been an integralpart of Weirs people developmentcalendar since its introduction in2003. The two week long event isaimed at developing seniormanagers and potential seniormanagers to achieve theirmaximum potential. The mostrecent programme was held inScotland between November 2007and February 2008 where twentyfive employees from across Groupand all divisions participated.During the programme the teamdecided to support BBC Childrenin Need and donated a generous£280 to the charity.Generous Leaders

http://groupintranet.weir.co.ukWeir Bulletin 19Business Awards/ ImprovementPeopleAgents come to townWeir Valvesand ControlsUK recentlyheld a twoday international agentsconference at its facility in Elland.Agents were invited from acrossthe world to meet the UK teamand hear their plans for the future.The agents also had theopportunity to address questionsdirectly to senior managers andproduct managers.Peter O’Reilly, Weir Valves &Controls UK sales & marketingdirector said: “It was extremelyencouraging to see so many of ouragents attend the conference andto hear that they foresee greatopportunities for our products ineach of their respective markets.They were all extremely excited byour plans providing very valuablefeedback.”New ROLESDave Athey has been appointed as CEO WeirWarman Africa with responsibility for both WeirMinerals businesses in Africa. Dave previously workedas managing director for Murray & Roberts EngineeringSolutions and general manager for Murray & RobertsCementation.Robb Clawson has been appointed as vicepresident marketing communications for MineralsDivision, based in Madison.Prior to joining Weir, Robb served as marketingcommunications director for Rexnord Industries (RBSGlobal, Inc) where he was responsible for internal andexternal communications.NICOLO GAVOTTI has been appointed as generaldirector of Weir Gabbioneta, based in Milan, Italy.Nicolo previously worked as general manager ofKuller, a leading international ground engineeringspecialist and was located in Sardegna, Cagliari.Fred Bradner has been appointed as director of technology for WeirMinerals Division reporting to Scot Smith. Fred will be based at Artarmonfrom September at which time Geoff Moore will assume the role ofdivisional marketing director.Prior to joining Weir, Fred served as technical director for 3M. He hasalso held assignments in Asia, USA and Europe.Weir Gabbionetawins InternationalBest Factory AwardWeir Gabbioneta has been namedas International Best Factory bySDA Bocconi School ofManagement in Milan.The International Best FactoryAward, designed in the UK in1992 by Cranfield School ofManagement and ManagementToday magazine, was introducedin Italy in 1998 where it ismanaged by SDA Bocconi and IlSole24Ore with sponsorship bythe Italian Ministry of Industry.This benchmarking awardmonitors performance key sectorsof the industry and identifies bestpractices that determine theachievement of above averageperformance in the sector.Weir Gabbioneta’s Sesto SanGiovanni plant in Milanmanufactures centrifugal pumpsfor the petrochemicals sector,supplying a quality product withcharacteristics and performancesignificantly higher than thesector average.To improve competitiveness thecompany has radically reorganisedits production processes in recentyears, through the introduction ofthe Weir Production System. Theintroduction and adoption of leanproduction required involvementof personnel at all levels of theorganisation allowing thecompany to achieve good levelsof improvement in productionlead times and work in process. Inturn, the high rates ofimprovement registered not onlyin operating activities, but also inthe company’s economic andfinancial indicators, mostimportantly turnover increasingby 70% in over one year.

20 Weir BulletinContact detailsHead OfficeThe Weir Group PLCClydesdale Bank Exchange20 Waterloo StreetGlasgow G2 6DBTelephone: 0141 637 7111Fax: 0141 221 9789www.weir.co.ukDivisional HeadquartersWeir Minerals DivisionPO Box 7610Madison, WI 53716–3315USATelephone: 001 608 221 2261Facsimile: 001 608 221 5807www.weirminerals.comWeir Oil & Gas Division149 Newlands RoadCathcart, Glasgow G44 4EXTelephone: 0141 637 7111Facsimile: 0141 637 0215www.weiroilandgas.comWeir Power & IndustrialDivisionUnit 1, Cartwright CourtBradley Business ParkHuddersfieldHD2 1GNTelephone: 01484 824200Facsimile: 01484 824230www.weirpowerandindustrial.comWeir LGE ProcessYoung House42 Discovery TerraceHeriot–Watt UniversityResearch ParkEdinburgh EH14 4APTelephone: 0131 317 8787Facsimile: 0131 452 3333www.weir.co.ukWeir Materials & FoundriesNewton HeathManchesterM40 2BATelephone: 0161 954 4665Facsimile: 0161 954 4739www.weir.co.ukBusiness Awards ImprovementWeir Minerals Europereceives Queen’sAward for EnterpriseWeir MineralsEurope hasbeenhonoured withthe Queen’s Award for Enterprise.The award was announced in April,when managing director KevinSpencer attended a special eventannouncing this year’s winners inLondon.In July, Kevin, along with NigelHalstead, Todmorden’s night shiftmanager with 42 years service,attended a reception for this year’s 78winners given by The Queen andPrince Philip at Buckingham Palace.Also in July, the Lord Lieutenant forWest Yorkshire Dr Ingrid Roscoepresented the crystal award to Kevinat a special luncheon for staff andinvited guests at the plant.Weir Group chief executive MarkSelway also presented the MostImproved Facility Award (see pictureabove) which had been made to theplant earlier in the year. Thecelebrations were completed with afamily open day.The Weir Minerals business atTodmorden in West Yorkshire hasoperated on the same site since 1893.It became part of Warman in 1976and part of the Weir Group in 1999.Weir Minerals Europe exports toover 50 countries with offices in 11countries. The company employs 426people world-wide with 380 based inTodmorden. Over the past five yearsthere has been considerableinvestment in the development of theproduction facility in terms ofequipment and people, including theimplementation of the WeirProduction System reflecting Leanmanufacturing techniques. Trainingprogrammes and implementation ofbest practice across the world ensurecontinued improvements in bothquality and efficiency.Kevin Spencer summarised theachievement over recent years: “Thisaward is in recognition of the work byall employees both in Todmorden andoverseas as well as our suppliers andothers connected with the company.There have been a number of changesover the past five years to get us wherewe are today and our employees havetaken these on board and supportedus throughout.”Next Issue – March 2009Do you have any articles forBulletin? Please submit yourstory ideas, copy and photosto your divisional managingdirector. Our aim is to sharebest practice through thepages of the magazine.We want to hear from you.Helen Walker, Editorhelen.walker@weir.co.uk+44 141 308 3739Rebecca Silvar.silva@weir.co.uk+44 141 308 3741Access the Group Intranet –http://groupintranet.weir.co.ukThe Todmorden team with the enterprise award flagKevin meets the QueenWeir Minerals SouthAmerican facility inChile had somespecial visitors in July.The Vulco plant in Santiago celebratedits 75th anniversary with ‘Happy Birthday’being played by the Chile Army band fromthe local regiment based nearby. Regionalmanaging director Ricardo Garib said that ayear of celebration was planned mainlyaround community projects.