NEWSLETTERCoatings & Linings Pipeline Rehabilitation

ANTICORROSION PROTECTIVE SYSTEMS

www.aps-corporate.com August 2015 Issue 15NEWSLETTER

Special ized in Qual i ty – Since 1978 Special ized in Qual i ty – Since 1978

Sneak Peek in this Issue: Message from the Chairman• Message from the Chairman

• InFocus: Pipeline Rehabilitation

• U Value

• News and Events

• HSE Updates

• HR Corner

• Employee Spotlight

• APS Announcement

WEFTEC 2015Illinois, USASeptember 26-30

Subsea Asia 2015Jakarta,IndonesiaNovember 4-7

ADIPEC 2015Abu Dhabi, UAENovember 9-12

Trenchless TechnologyRoad ShowsBritish Columbia, CanadaNovember 17-19

Upcoming Events

Much of our early work revolved around the corrosion protection of new pipelines with specialized coatings (for external) and linings (for internal) systems, applying materials ranging from high-build epoxies and polyurethanes to glass-flake reinforced polyesters and vinyl esters. While still representing an important part of our activities within our Coatings & Linings Division, APS started to receive an ever-increasing demand from both the oil & gas and utility market for rehabilitation

of aging and defective pipelines. During the 90’s, this was achieved with thermoplastic polymers. This demand, and our subsequent urge and eagerness to satisfy such requirements, prompted the establishment of what we today regard as our Pipeline Rehabilitation Division. Within our Pipeline Rehabilitation Division, our service offering ranges from specialized inspection, cleaning and repair` services for localized repair(s) within a pipeline to a number of unique close-fit

lining options like Compression-Fit-Lining (CFL) using HDPE, Compact Pipe and PrimusLine. In the case of Compression Fit Lining, the term Pipeline Rehabilitation can be misleading as many of the projects carried out over the past few years have actually incorporated insertion of an HDPE corrosion barrier into new water injection pipelines. In order to stay ahead of the game we try to be constantly in tune with the market and to anticipate the increasing demands relative to temperatures

PIPELINE REHABILITATION DIVISION

As you will see, the theme of this month’s newsletter is that of pipeline rehabilitation, a topic that as most of you already know is very dear to my heart.Our regional activities have always, from our very beginnings, encompassed pipelining and pipeline coating. In the late seventies and early eighties, when we were establishing roots around the region, this work was almost entirely undertaken to new pipelines, which in those days were being frequently installed. This often involved both yard/shop coating activities and site field joint coatings.To a degree, the same is still true today, at least in respect of the number of new pipelines installed, but today of course, many of the older pipelines constructed back in the seventies and eighties are now in need of replacement or rehabilitation simply because the ravages of time have worked their evil ways on the condition of these ageing assets.It was in fact, back in the early nineties that we first involved ourselves in the process of pipeline rehabilitation through our relationship with British Gas in

the Swagelining system which we licensed then, but which we have since developed into our Compression Fit lining or CFL system. At that time, one of our major Oil & Gas customers actually needed a corrosion resistant liner for new and existing high pressure water injection pipelines and it seemed to us that a tight fit polymer lining was the obvious solution. British Gas was able such a system but it had, until that point, only been used to rehabilitate low pressure utility gas and water pipes.Having adopted the system and successfully utilized it for high pressure W.I. lines it then quite naturally occurred to us that there might be a regional market for it in its original guise, for the rehabilitation of defective utility pipes, which then progressed to our examination of what other techniques such as Channeline, CIPP, Danby, etc was available to add to our overall portfolio of rehabilitation services.After a couple of extremely active decades during which we have completed many outstanding projects such as Equate, Palm Island, 185/40, several thousand meters of CFL, having acquired the Channeline and Danby businesses and developed IFL, here we are today, in a position whereby the Pipeline Rehabilitation activities of APS are among the most important that we offer & of having the technical broad expertise to be one of the world’s leading pipeline rehabilitation operatives. We currently export Channeline and Danby to most continents and are growing the markets for those products on a yearly basis. IFL is gaining in popularity with Petronas operators and edging increasingly closer to a more global realization month by month.We therefore live in – not just hope – but real belief, that the rehabilitation business will provide as much of a new lease of life to our efforts to grow our business, as it does to those structures and pipelines we remediate!

Coatings & Linings Pipeline RehabilitationANTICORROSION PROTECTIVE SYSTEMS

www.aps-corporate.com NEWSLETTER NEWSLETTERAugust 2015 Issue 15

Special ized in Qual i ty – Since 1978

As you might have noticed in last month’s newsletter, we have introduced the U-Value concept where we are focusing each month on an employee within the APS Group who really lived up to one of APS’s Core values. Though all these values are engrained in our company culture, just as a reminder to everyone; the core values are: Quality, Safety, Respect, Innovation, Customer Focus and Entrepreneurial Spirit. In this month U-Value publication we would like to highlight the achievements of Mr. Sanathlal living up to the core value of Entrepreneurial Spirit! Though entrepreneurial spirit is mostly linked to achievements in the fields of business development and sales , it relates equally to achievements in the field of operational excellence and in particular

efficiency improvements and cost reductions.As a consequence of the ongoing review of the Logistics and Procurement Function, Sanathlal reported already achieving a great deal. By ceasing the over-reliance upon a sole logistics supplier that we have been using for many years, Sanathlal achieved savings in the range of over of 370,000 AED over the last four month period, which means a potential saving of 1.1m AED per annum!The savings made by one single (though complex) measure has definitely raised the expectations of the Group Management and we are hopeful that many more of these operational excellence enhancing measures will follow suit. For sure this particular cost reduction is already a major contributor to our attempts to strengthen organizational performance and health.

U VALUE

Many people dream of success.

To me success can only be achieved

through repeated failure and introspection. In fact, success represents 1%

of your work which results from the 99% that is called failure.

Soichiro Honda – Founder, Honda

Corporation

September Celebrants

1st - Terry Galvin 3rd - Riyas Ahmed 6th - Maurice 19th - Hassan 21st - Rohana Anuar 29th - Rosemarie Abu

UAE Public Holidays: (September)22nd - Arafat (Haj) Day23rd to 25th - Eid Al Adha

APS Malaysia Public Holidays (September)16th - Malaysia Day 24th - Hari Raya Aidil Adha (Eid-al-Adha)- Office Closure- 23rd and 25th

Special Event

7th, 8th & 9th August- KL City Grand PrixKL Office will close on 7 August 2015 in view of closure of roads and anticipated traffic congestion within the office vicinity.

Channeline International has been awarded with the “Rehabilitation of Main Collectors A0 and B0” project in Bucharest, Romania. Total length is 10.5 km in which half is shotcrete and half is GRP relining. It will be consisted of 9 profiles with height ranges from

1200mm – 2200mm.The technical qualification criteria was at least one executed job in the last 3 years for design-and-built of the pipe rehabilitation with an interior height of more than 1500mm.Channeline gave a unique offer to the partner that was 20% more competitive than the offer from the other competitors.

and chemical/abrasion/pressure resistance coming from the oil & gas, power and utility industries. To do so, we rely upon our excellent relationships with raw material suppliers and pipe manufacturers from around the world who provide us with the ability to offer higher grade thermoplastic polymers and unique technology solutions to the vast client network we have achieved over many years.Our Pipeline Rehabilitation Division recently added the UV-Cured CIPP system from RELINE EUROPE to our service offering. This enables us to rehabilitate utility pipelines from 150mm to 1200mm in diameter using a UV light train to cure the resin impregnated glass-flake reinforced felt. This avoids potential challenges relative to curing of the CIPP line before insertion which is a common problem in the hot climates found in this region. Another major advantage is that the CIPP liner, the control box and the UV light train all come from the same supplier, which ensures a secure link between the liner material and the machinery required for installation and curing. These are great examples of our Division’s continuous drive to be innovative and provide our clients with quality services that not only meet but exceed their expectations.

PIPELINE REHABILITATION DIVISIONAs a pipeline rehabilitation contractor, we are the Middle East’s market leader providing the most comprehensive portfolio of pipeline rehabilitation solutions in the region. As Divisional Manager, it has become my personal challenge to strengthen our market leading position even further. I joined APS two years ago and have had the opportunity to put my 20 years of experience in pipeline rehabilitation in the USA and Australia to practice here in the Gulf region and Asia. Over the past 18 months we have re-organized our Division drastically, with an emphasis on appointing high caliber and experienced staff to key positions. The latest result in this ongoing process has been the appointment of David Henderson to the position of Operations Manager Middle East. With projects on the go across the Gulf region, as well as recent successful completion of a high profile project in Malaysia, the future looks very bright. Growth plans are aimed at expanding our position in the Gulf region by introducing new technologies and establishing our existing high quality pipeline rehabilitation services in the South East Asian region, with an emphasis on Malaysia and Thailand.

Pipeline Rehabilitation makes headway in Dubai

Rehabilitation of Main Collectors @ Bucharest, Romania

Our Pipeline rehabilitation crews are working for the main contractor Al-Naboodah on the Dubai Canal Project. Here in action with camera inspection on 300mm diameter potable water pipelines to identify defective joints. Also in Dubai Silicon Oasis, working for Emrill, our crews are preparing patch repair kits for 250 mm sewerage pipelines to stop infiltration of ground water through leaking joints.

News and Events

By: Steven Latimer, Divisional Manager Pipeline Rehabilitation

NEWSLETTERCoatings & Linings Pipeline Rehabilitation

ANTICORROSION PROTECTIVE SYSTEMS

www.aps-corporate.com August 2015 Issue 15NEWSLETTER

Special ized in Qual i ty – Since 1978 Special ized in Qual i ty – Since 1978

News and Events

Oxy Call-Out project – Progress Update

Petronas Carigali West Lutong IFL project

HSE Updates

The Pipeline Rehabilitation Division continuous its superb efforts on the Oxy call-out contract in Oman. At the moment crews are working on HDPE lining of 4”, 8”and 20” pipelines and we will soon be starting on another 10”pipeline. The client has informed our crew supervisor, Mr. Steven Fernandez, that they are very satisfied with the progress and the quality of the work. Well done to the HDPE Lining crews and keep up the good work!

APSM was awarded additional work scope from Petronas Carigali on the West Lutong IFL project in January this year. The additional scope was to design and install a Pressure and Temperature Monitoring System on an EPCIC basis on the pipelines previously installed with IFL.APSM commenced work on the project in January with the Engineering phase and culminated with the project team, led by Wan Muhamad Rashdan, mobilizing offshore for the installation and commissioning phases on 12 June 2015 and demobilized on 4th of July 2015.This new Pressure and Temperature Monitoring System will enable Petronas Carigali to remotely monitor the pressure and temperature of the pipelines, including from their offices onshore in Miri.The Monitoring System will trigger an alarm if process temperature exceeds warning level. It will also set off a shutdown process when the temperature is above danger / shutdown level.

This year’s Fire Evacuation Drill took only 1 minute and 33 seconds for the 135 employees to evacuate their workplace compared to last year’s 2 minutes. Thanks to everyone who cooperated during the drill and especially to APS trained wardens, Mr. Rajeev, Mr. Shibu and Mr. Ricky, who participated actively with a team spirit and ensured that all employees have evacuated the work area to muster at the assembly point.Thanks for making this drill a success.- Afroz Aga, HSE Manager-

Iftar gathering and Raya Gift GivingAPS Malaysia hosted an Iftar for all its employees on July 10 at Binjai 10 Restaurant, PNB Darby Park Hotel & Suites to instill friendship and promote social interaction among staff across departments, along with sharing Ramadhan spirit. During the event, both management and employees feasted on various selection of gourmet food and beverages that were served at the 10 Binjai Restaurant. All employees also received advance Raya gifts as 30 cookies hampers were handed out to them courtesy of the Management of APS Malaysia.The gathering was Management’s way of showing its appreciation to all employees for their hard work and dedication.

Fire Extinguisher TrainingA practical demonstration was provided to APS workers on how to use the fire extinguishers in case of real emergency.There are different types of fire extinguishers designed to fight different types of fires. One can actually make a fire

worse by using the fire extinguisher incorrectly or by using the wrong type of fire extinguisher.

Rehabilitation of Existing Culvert @ Warrensville, Ohio

Channeline once again proved that there is no limit to shape, size or form. The new two-piece box liner with dimensions of 4’-0.34” high and 9’-0.58” wide with 49mm wall thickness will be installed in Shaker Heights, Ohio, USA – Warrensville Country Road.

Client: Simplified Alternatives Inc.

Contractor: Triad Engineering & Contracting

Large Diameter HDPE Lining APS lived up to the challenge!

In last month’s newsletter we reported the remarkable achievement our APS crew in Malaysia, close-fit-lining 1.1 Meter diameter Caisson Pipes.And we surely did not want to withhold another great visual of this project. In the meantime all

crew members have returned back to our HQ in Dubai and are already working on other projects.

ISO 9001:2008 certificationAnticorrosion Protective Systems (M) Sdn Bhd is currently working to achieve ISO 9001:2008 certification. We have engaged Bureau Veritas (BV) as our certification body. This exercise started in April 2015 and the1st stage external audit was conducted on 10 July 2015.

From this audit, BV has recommended for the 2nd stage audit to be conducted. This will be in early September 2015.

Coatings & Linings Pipeline RehabilitationANTICORROSION PROTECTIVE SYSTEMS

www.aps-corporate.com NEWSLETTER NEWSLETTERAugust 2015 Issue 15

Special ized in Qual i ty – Since 1978

HR Corner from Dr Terry Galvin

As a reminder...this is YOUR newsletter. If you have something to share with us we welcomeall suggestions, announcements, etc. Please submit your comments to: maymonleon@apsdubai.com

Back in the mid-70’s, the IT community began to use the acronym WYSIWYG, or “What You See Is What You Get”, to describe onscreen content which corresponded closely to its appearance when printed. This expression had already become popularized through its use as a catchphrase in two prominent US comedy series and it remains commonplace to this day. Indeed, even English business magnate and media personality, Alan Sugar, used the phrase as the title of his recent autobiography.During the last two weeks, I have stumbled upon another acronym which, although not so popular and certainly not rolling off the tongue quite so readily, has far more significance to APS and the company’s determination to maintain its reputation as a dynamic and forward looking enterprise. It is WADITW or “We’ve Always Done It That Way”.Industrialist and author, Kenneth Heselton, is often acknowledged as originating this acronym in 1997 when he proposed that, each year, the WADITW Syndrome could be costing companies as much as $120,000 (i.e. almost $180,000 in 2015 values) in avoidable costs and missed opportunities arising from the associated resistance to change. Other writers have referred to the “WADITW Disease”, suggesting that those who use the expression as an excuse or justification for resisting change are the very personnel who holdback companies from achieving their true potential. Resistance to change was a topic addressed in the Newsletter of May 2015 which had as its theme the APS core competency

of Change Orientation. At that time some useful tips were offered to overcome the underlying fear that is so often the source of this resistance as well as the motivator for keeping things the way they are.The signs are that many of us have taken on board these guidelines as, since that time, the degree of Change Orientation actually witnessed within the business has been truly impressive. For instance, a recent review of the Channeline operation prompted an amazing amount of innovative suggestions and recommendations from all concerned. Rather than witnessing the WADITW Syndrome in evidence, Tim Webb and I encountered employees at all levels demonstrating unquestionable eagerness to recommend a wide variety of changes to reduce operating costs and enhance efficiencies. Well done to you all! Elsewhere within the current Newsletter, reference is made to another employee’s determination to avoid the WADITW trap which has resulted in significant ongoing financial benefits to our business. So another well done to Sanathlal! The list goes on! At the beginning of this month, personnel within the DIP and Channeline facilities embraced wholeheartedly a significant change in modus operandi with the introduction of biometric attendance recording. At around the same time, our Divisional Secretaries extended their roles with enthusiasm to encompass travel coordination responsibilities within the context of the newly introduced Travel Policy and Procedures. Further, the recent establishment of our strategic alliance with Cape Middle East must surely demonstrate our undeniable willingness to challenge the status quo whenever the opportunity arises for business enhancement.Having already achieved such a great deal, let’s continue our remarkable efforts to cast aside considerations of WADITW in order to realize the company’s true potential. And, in the process, let’s also be determined to do all possible to ensure APS continues to be a dynamic and forward looking enterprise and one which instills confidence in our customers by assuring them that, “What You See Is What You Get”!

APS Announcement

Employee SpotlightName: Marife AlegriaPosition: Executive Secretary - Pipeline Rehabilitation Division Years with APS: Five (5) monthsMain job responsibilities: Provides clerical and administrative support to Pipeline Rehabilitation Division.Marife is the third child amongst 4 daughters. She graduated from Polytechnic University of the Philippines with a Bachelor’s Degree in Computer Data Processing Management. She grew up in Anda, Pangasinan, Philippines - the so-called “Mother of the Hundred Islands” and the famous tourist destination for its caves and beaches. She was raised by her grandmother and uncle since she was three months old.Marife lived a normal and simple childhood. As a kid, she was allowed to play around her neighborhood until almost dark. Growing up, she used to sell snacks in the salt fields and harvest buri leaves to sell and earn money for her allowance. Living in the province far away from the bustling city

life is not an opportunity served on a silver platter. She had to walk 2 kilometers or take a wooden cart drawn by water buffalo to get clean water for drinking, bathing and washing. But it was the life she wholeheartedly embraced. According to her, she would not be who she is today to her family, relatives and friends, if not for the wonderful memories of her humble childhood. The challenging experiences in her early days were not just her source of inspiration, the reason of her motivation, but it taught her that it’s always good to remember where you come from.Favorite line from a movie? ”Life was like a box of chocolates; you never know what you’re gonna get.” Forrest Gump movie.

Raya Open House for Employees & Family Members

Baby Shower

APS Malaysia recently had a Raya Open House for over 200 employees, family members and other invited guests. The event was hosted by Tuan Hj Muhd Opandi Che Wook, Managing Director of APS Malaysia at his residence in Ampang. The guests were treated to a sumptuous

array of delicious Malay culinary repertoire served in a stall concept. One specialty is ‘Kambing Golek’ which was well liked to all guests. The guests enjoyed ‘family gathering’ and making new friends. The Raya spirit had enable the renewal of ties and forging of new ones.

Katrina Limjoco was treated to a surprise baby shower by her APS colleagues on Wednesday, 5th of August 2015. When the surprise baby shower happened, Katrina could not help but cry out of sheer joy and happiness. Everything for her was unexpected. It was held in Courtyard Marriott, Dubai Investment Park.

Katrina is set to give birth to a baby boy first week next month. With only a few weeks to her delivery, APS wishes Katrina all the best and bliss as she awaits her bundle of joy.

We wish Amira Nor Azman, who has been the APSM Receptionist since 5 May 2014, good

luck for her future endeavors as she will leave APS Malaysia to secure additional educational qualifications.

For her future career, Amira is looking forward to become an Education Consultant.