HEXAGON RAGASCO

IMPROVE “SMARTNESS”

Rune Ulekleiv
Gjøvik 23.09.15
CONTENT

• Presentation Hexagon Composites

̵ Presentation Business units and products

• Hexagon Ragasco - 20 years with innovation.

̵ Hexagon Ragasco –The historie from 1993
̵ What characterizes us today

• The award «Norges smarteste bedrift»

• The Future.

2
PRESENTATION – HEXAGON COMPOSITES

Business units
THE HEXAGON GROUP OF COMPANIES

• Sales of NOK 1 651 million in 2014

• Public company listed on the Oslo Stock Exchange
HEXAGON COMPOSITES
WHERE WE ARE
LONG EXPERIENCE IN A GROWING INDUSTRY

7
HIGH PRESSURE – LINCOLN AND RAUFOSS
HEXAGON RAGASCO
HEXAGON RAGASCO 2014
HEXAGON RAGASCO LPG
HEXAGON RAGASCO

VISION

Hexagon Ragasco is the global leader

worldwide in composite LPG cylinders

13
VALUES

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

• Our six focus areas:

1. Environment

2. Working conditions

3. Local community

4. Ethical behaviour

5. Product safety

6. Supply chain

14
WHO WE ARE

• The world’s leading manufacturer

of state-of-the-art composite LPG
cylinders for lifestyle and business
applications.
OUR MISSION

Through our passion to transform the use of portable gas into a safer and
more user friendly experience, we offer smart cylinders that enhance a
modern lifestyle. With lightweight and durable efficiency, we bring effortless
confidence to the use of gas – wherever, whenever. We give you and your
customers the peace of mind to focus on things that matter most in daily
life.
BUSINESS CONCEPT HEXAGON RAGASCO

• The reference supplier of mass produced cylinders in composite for

LPG and equivalent
• As reference supplier we are adding value for customer and end user by
having competitive edge at state-of-the-art solutions, uncompromised
quality, cost efficient product and world-class automated production
• Primary areas for end usage is households, leisure activities, catering
kitchen and fork lift trucks. Global market leading player within this niche.
• The market is global. The primary market platform is Europe. Markets
with largest growth potential for composite cylinders are in Asia, Middle
East and Americas. Differing distribution solutions for empty containers
will be considered in chosen markets

17
 OUR CYLINDERS ARE CURRENTLY IN USE IN:

Americas • Malaysia • Germany Middle East and

• Barbados • Maldives • Greece Africa
• Bermuda • New Zealand • Hungary • Angola
• Canada • Philippines • Iceland • Ghana
• Colombia • Sri Lanka • Ireland • Iraq
• Dominica • Tahiti • Italy • Israel
• Grenada • Taiwan • Latvia • Kenya
• Guyana • Lithuania • Mauritius
• Mexico Europe • Luxemburg • Nigeria
• Paraguay • Albania • Netherlands • Qatar
• St. Lucia • Austria • Norway • Rwanda
• St. Vincent • Belgium • Poland • Saudi Arabia
• USA • Bulgaria • Portugal • South Africa
• Venezuela • Croatia • Romania • South Sudan
• Czech Republic • Russia • Sudan
• Denmark • Slovakia • Zimbabwe
Asia Pacific
• Estonia • Spain
• Australia
• Finland • Sweden
• India
• France • Switzerland
• Indonesia
• UK
OUR PRODUCTS
OUR CYLINDERS ARE:

Safer
• Pressure tests show our composite
cylinders withstand more than 50%
higher burst
pressures than their steel counterparts

• Unrivalled safety record

• Our cylinders will not BLEVE

• Less risk of rupture and explosion in

case of fire

• Greater reassurance for your business

and your customers
OUR CYLINDERS ARE:

Lighter
• Our composite cylinders are half
the weight of their steel
equivalents
• Easier to handle and transport
- and ultimately less costly as you
spend less money to haul more
gas
• For consumers, easier to lift,
change and refill
OUR CYLINDERS ARE:

Accumulated maintenance over

Corrosion-free time of Hexagon Ragasco cylinders
vs steel
• Composite cylinders do not rust,
corrode or deteriorate like steel

• Longer lasting and cleaner in use

OUR CYLINDERS ARE:

Translucent
• Easy to see the liquid gas level
• Easy to check gas level in use
• Eliminates the need for inaccurate
gauges
• Unique feature for user-friendly
use, builds customer trust and
preference
CONSTRUCTION OF OUR CYLINDERS

1. Seamless polymer 2. Fibre structure holds 3. Fully-integrated outer

liner contains the gas the pressure and casing protects the
valve and the pressure
prevents bursting of vessel, and gives our
the pressure vessel cylinders its unique
appearance
VALVE/ CYLINDER INTERFACE

Standard Interface
Dependent on country

M26 or M34 thread and

O-ring for tightness

LPG Flow diffuser to

eliminate any risk of
charge from static
electricity
TECHNICAL SPECIFICATIONS

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

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

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

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

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

Height (mm) 384 468 571 595 622 715

Diameter (mm) 305 305 305 305 305 305

1. All values are nominal. 2. Without valve

TECHNICAL SPECIFICATIONS

Specifications1 11 lbs 17 lbs 22 lbs 31 lbs

Propane Capacity (lbs) 11 16,85 22 31

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

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

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

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

Diameter (in) 12 12 12 12

1. All values are nominal. 2. With valve

CERTIFICATIONS

International certifications North America

• Approved according to ISO9001: Quality Management
Systems

• Approved according to ISO11119-3: Gas cylinders –

Refillable composite gas cylinders and tubes. Part 3: • USA - Department of Transportation (DOT) Special
Fully wrapped reinforced composite gas cylinders and Permit SP-12706
tubes up to 450L with non-load sharing metallic or non-
metallic liners.

• EN 12245 Transportable Gas Cylinders- Fully-wrapped

composite cylinders
• Canada - Transport Canada (TC) Equivalence
• EN 14427 Transportable refillable composite cylinders Certificate, Level of Safety SU-5931
for LPG – Design and construction

• Other approvals in around 70 countries

All Type Approval certificates issued by TÜV Rheinland

OUR QUALITY ASSURANCE

• Strict QA system ensures total

traceability – from raw materials
through to finished products
• Over 35 points during manufacture
where production data on each
cylinder is collected and stored
WHY CONVERT TO COMPOSITES?

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

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

Increase market share

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

Protect market share

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

Reduce operational expenses

Reduce your logistics and refurbishment costs.
LIFESTYLE APPLICATIONS

Marine Mobile home BBQ

DOMESTIC APPLICATIONS

Heating Cooking
BUSINESS APPLICATIONS

Fork lift trucks Lawn-mowing Floor polishing

Credit: Briggs & Stratton Products Group

A BIT OF THE HISTORY

20 years with innovation

 DEVELOPMENT - HISTORY
new high pressure
T4 CNG
composite tanks
for Mercedes
Benz B-class

2015
2008
LUP project with Statoil Improved cylinder
to develoip first T4 LPG 2005 for BTz
cylinders 2002
Development of Won IPR court case
Composite structures First CNG system 2000 in France
for defense developed Neoplan
applications in Raufoss 1997 Development
Development and of new LPG
Technology A.S start up of LPG boss and
1980’s 1993 First CNG T3 CNG production plant antistatic
vessel developed device New permeation
for Marintek and tight CNG liner for
Volvo PC Mercedes Benz B-
Development and production start up class
of 1 and 1,8 L High Pressure Vessels
for MATRA Defence

35
TESTIMONIALS

• Since we introduced the composite LPG cylinders from Hexagon

Ragasco in 1999, we have sold over 1.5 million units in Northern Europe,
especially in Sweden, Norway and Finland. Hexagon Ragasco’s modern
propane cylinders helped us increase our market share and the growth
we have experienced since the launch has surpassed our best estimates
and expectations.
Regional Product Manager, Europe North, AGA, Linde Group.
• We were the first to introduce Hexagon Ragasco composite cylinders in
Israel not only as a product that would increase our sales, but also would
reinforce our position as market leader and innovator. Focusing on its
lightweight and translucency, we named it "PICKSEE”.
Within two months, and together with targeted marketing campaigns
mainly for barbecue use, sales of cylinders increased dramatically and
our market share grew. New customers are seeking the new
revolutionary cylinder; it is a market game changer.
Vice Chairman, AMISRAGAS, Israel.
TESTIMONIALS

• Hexagon Ragasco composite LPG cylinders are changing the LPG industry in
the Philippines with the introduction of safer, more convenient and more
durable characteristics for home-use compared to steel cylinders. EC Gas
customers have reported good reviews wherein they greatly appreciate the
translucency of the cylinders and the appealing design.
Division Manager, Eastern Composite Gas, Philippines.

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

the Danish market in 2001. Since then a great number of customers have
experienced the benefits of the composite gas cylinder branded under the tag
line: Light, Clear and Safe. Kosangas Light has made life easier for our
dealers, commercial and domestic customers – both for outdoors and indoors
use.
The lightweight cylinder has had an enormous influence on the popularity of
cylindered gas for home use and is today the first choice of gas cylinders; a
success story.
Nordic Marketing Manager, Kosan Gas a/s, Denmark, UGI Group.
10 MILLION CYLINDERS CAMPAIGN

38
THE AWARD

“Norges smarteste bedrift “

«Norges Smarteste Industribedrift» - From the jury

5. mai Erna Solberg gave the award to Hexagon Ragasco

”Hexagon Ragasco er risikovillig, og har evnet å mobilisere hele
organisasjonen i innovativ tankegang. Dette har resultert i egenutviklede
verktøy og løsninger, og engasjerte medarbeidere. Bedriften kan vise til en
enorm og imponerende produktivitetsvekst som resultat av kraftig satsing
og investering. Hexagon Ragasco beviser at det er mulig å lykkes i
høykostlandet Norge.”
CRITERIA - PRODUCTIVITY

• Through innovation, smart use of technology and continuous

improvement, cycle time per container has been reduced from 74
seconds to 14 seconds in 10 years. This corresponds to a speed increase
of over 500%. We have also made major investments in advanced control
systems, robots, grippers and proprietary equipment and tools to further
increase the capacity and productivity.
• Ten years ago we produced 250,000 containers per year with 10
operators on five shifts, while today we have a production capacity of
over 1.5 million per year, with 8 operators on 6 shifts.
̵ Productivity per operator is now over 650% of what it was in 2004.
CRITERIA - UNIQUENESS

Hexagon Ragasco is a venture company with a strong entrepreneurial

culture, characterized by short decision paths, and a large degree of
freedom. This has led us in a relatively short time to become a global
market leader in our niche. The product and production plant is devloped for
a higly effective mass production of quality parts.
CRITERIA - CLUSTER EFFECTS

• The company was established based on technology developed by

companies in the industrial cluster at Raufoss, and we have benefited
from the proximity to some of the world's leading and most advanced
companies in the international automotive and defense industries.

• Simultaneously Ragasco have gained world class knowledge in

automation, and high speed polymer tooling and production, that others
in the cluster can benefited from.
CRITERIA INNOVATION

• Based on technology from rocket motors we have developed composite

cylinders that has unique properties compared to traditional steel containers.
It is easier, it is translucent - enabling control of reservoir levels, it does not
rust and it does not explode in a fire.
• To succeed in mass production of the cylinder to many different customers,
we have made several innovations in product, process, machinery and
equipment, as challenges have emerged during the 15 years of production.
• One of many examples of this is a patented device that reduces static
electricity in the container, which, in early times, was a problem in some
markets.
• We are working continuously on new uses, and we have also developed a
high-pressure gas tank (CNG) for automotive customers like Mercedes and
Opel.
CRITERIA - USE OF TECHNOLOGY AND EXPERTISE

• Our factory is fully automated, we have advanced control systems, robots and grippers, and
we have made major machinery investments. We have also re-built the factory and designed
new tools for high speed thermoplastic production.

• All production stages from raw material to finished container takes place in a compact plant of
4,000 m3. We have developed proprietary solutions to achieve the production goals. To run
very fast with high uptime, we depend on skilled and competent staff, and we are committed to
building expertise internally. We have a structured system that captures about 20 improvement
suggestions from operators each day. These proposals are evaluated and implemented by
special engineering team, to ensure and continuously improve productivity.
CRITERIA - SUSTAINABILITY

• Continuous focus on improvement and innovation means we have been

able to reduce the weight of the product by 30%. This has resulted in both
reduced material consumption, and emissions associated with transport
of containers through life. We have recently completed a project to
reduce control emissions from production and is now down 10% of the
permit. At the same time we are working on several projects for heat
zoning to reduce energy consumption.
CRITERIA - MARKET EFECTS

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

create a separate niche, while increasing market share on behalf of
traditional steel containers. Productivity improvements have made it
possible to reduce the retail price and thus expand from the Nordic
market to become the leading global supplier of composite propane
containers. We have an export share of 95%, and has sold over 10
million containers globally to over 60 countries. Additionally, we have
succeeded in making composite containers as the only standard in the
Nordic markets for private use
FUTURE

How to become smarter and improve further

HOW TO WORK «SMARTER»

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

• Definition of smart here – given as

̵ Productivity
̵ Uniqueness
̵ Cluster effects
̵ Innovation
̵ Use of technology and expertice
̵ Sustainability
̵ Market effects
MARKET UNDERSTANDING

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

customers and be sure to sell the products at a higher price
than the cost of producing them
FRANCE: MARKET CONCENTRATION
ANTARGAZ FRANCE ACQUIRES TOTALGAZ FRANCE

52
FRANCE: BIG OIL EXIT OF LPG COMPLETED
DCC ACQUIRES BUTAGAZ FROM ROYAL DUTCH SHELL

53
FLOGAS & BENEGAS: 1M HEX RAG CYLINDERS
20% OF DCC’S CYLINDERS HAVE BEEN SUPPLIED BY US

54
DCC WILL CONTINUE ITS ACQUISITIONS
UNDERLINES THE IMPORTANCE OF PRICE DISCIPLINE

55
OTHER EUROPEAN COUNTRIES

• We have started to open new markets

• Where next ?

56
US IS THE 2ND LARGEST LPG MARKET IN THE WORLD
MN TONNES

US LPG consumption by sector International comparison of LPG domestic consumption

US consumption 67
53 • US is the
2nd largest
Agriculture 2 Domestic
LPG market
in the world
Industry 2
• Per capita
Transport 0 domestic
consumption
Refinery 10 is higher
than for
Chemical 24 Europe

• Not 100%
Domestic 14 14
comparable:
We estimate
Bulk LPG 7 50% that ~50% of
6 mn US LPG sold
Cylinder LPG 7 50% cylinders in bulk for
use in places
instead of
~7 mn tonnes of LPG drives ~6 mn sales natural gas
of 20# cylinder/year; US (mainland)

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

RETAIL MERCHANDISING MATERIALS TO BE
USED BY RV DEALERS

• Supported retail sales with in store

merchandising materials.

Shelf-talker Hang Tags

Trifold Brochure

Pull-up Banner
OUR BUSINESS CASE

Cooking
BBQ &
Markets Heating
Markets
Customers are willing to pay for Composite cylinders
? ?
attributes (reduced weight, …)

LPG marketers can therefore recoup price of composite

? ?
cylinders upfront

LPG marketers must subsidise deposit of composite

? ?
cylinders upfront

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

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

59
 IMPROVE DIFFERENTIATION POSSIBILITIES
BY PROVIDING OUR CUSTOMERS WITH MORE CASING & BRANDING OPTIONS
WHILE RETAINING OUR TRADEMARKED FISHBONE PATTERN

Tetra Pak… or Hexagon Ragasco … and tomorrow

Elopak? Amtrol Alfa
today different Ø & casings

60
PRODUCTION

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

at a significantly lower unit cost than your competitor.
STATE-OF-THE-ART MANUFACTURING PLANT

• Advanced production plant in Norway –

the only one of its kind in the world
• Fully-automated, high-speed production
line, capable of producing up to 2 million
cylinders per year
• ISO9001 certification covers all steps in
the value chain and all processes
MANUFACTURING PROCESS

• HDPE liner blow • Fiberglass • Pneumatic • HDPE outer

moulded filaments wound pressure test to casing injection
around liner and 30/33 bar. moulded. 3
oven cured Tightness test to pieces and
18 bar with mechanical joint
helium
 3 WAYS TO IMPROVE PRODUCTION CAPACITY

Beholder/år vid ulike syklustid og oppetid

Skift Oppetid % 13 12 11 10 9
4-skift 70 1 194 868 1 294 440 1 412 116 1 553 328 1 725 920
4-skift
3 Øke
2 75 1 280 215 1 386 900 1 512 982 1 664 280 1 849 200 1 skiftgang/planlagt
4-skift 80 1 365 563 1 479 360 1 613 847 1 775 232 1 972 480
4-skift 85 1 450 911 1 571 820 1 714 713 1 886 184 2 095 760 produksjonstid
5-skift 70 1 498 043 1 622 880 1 770 415 1 947 456 2 163 840
1 5-skift 2 75 1 605 046 1 738 800 1 896 873 2 086 560 2 318 400 2 Øke
5-skift 80 1 712 049 1 854 720 2 023 331 2 225 664 2 472 960
OEE/Oppetid
5-skift 85 1 819 052 1 970 640 2 149 789 2 364 768 2 627 520
6-skift 70 1 660 874 1 799 280 1 962 851 2 159 136 2 399 040 3 Redusere
6-skift 2 75 1 779 508 1 927 800 2 103 055 2 313 360 2 570 400 syklustid
6-skift 80 1 898 142 2 056 320 2 243 258 2 467 584 2 741 760
6-skift 85 2 016 775 2 184 840 2 383 462 2 621 808 2 913 120
UNDERSTAND ALL COST ELEMENT

Complet Product Cost from RAG-1 @ Max Capacity

Average Cylinder Cost (NOK)

2004 2005 2006 2007 2008 2009

Year
UNDERSTAND VOLUME SENSITIVITY- AND
PRICE CONSQUENCES

Break Even Cost Sensitivity @ RAG-1

Break Even Cost (NOK)

2004
2004 2005
2006
2005 2007

2006
2007

150 200 250 300 350 400 450 500 550 600 650 700
Production Volume (x1000)
FOCUS ON BOM

Materialcost LPG 10 kg
Cost (NOK)

Kost 2003 Kost Q2-2004 Kost EXP

Stage of Development
INCREASE FLEXIBILITY AND FIGHT FOR ADDED VALUE AND
AGAINST ADDED COST

68
PEOPLE AND ORGANIZATION

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

size an organization consisting of motivated people with the right
competencies, acting according to what is best for the company.
UNIQUE COMPETENCE

Sustain market leadership in

LPG composites industry
Grow the core by Open up new Expand internationally
1 building barriers
2 opportunities by
3 by building local
• High competence introducing flexibility production plant
level on productivity in production abroad
and atomization • Increased R&D • Feasibility study
• World class capacity last year done
competence in • Strong innovation • Lean generic
filament composite culture production site;
winding focus on cost and
• unique combination productivity
• «First mover»

Founded on a commitment to be leading on quality and productivity

70
 MARKET ORGANIZATION

Sales and Sales & Marketing Director

Marketing

Technical Support Manager Technical Marketing and Communications Manager

Support International
EMEA & APAC Marketing

Regional Sales Director Regional Sales Director

Sales Sales
Middle East, Europe &
Africa & India LATAM

Sales
Technical
Sales India, Nepal , Sales UK, Sales Sales
Sales Sales Support Sales
Middle East & Sri Lanka, Nederland & and Marketing North America
Scandinavia Latin America North America Asia Pacific
North Africa Australia & Africa North America & Caribbean
& Caribbean
NZ

Sales Manager Country Manager Sales Manager Sales Manager Sales Manager Sales Manager Sales Manager Technical Sales Manager
Support Manager

71
 DEVELOPMENT ORGANIZATION PROPOSED FUTURE

Raufoss FOU R&D Director

support Development

Product Manager Product & Innovation Manager

Change FOU &
management Innovation

Innovation
Materials Lab Trainee Project
and Testing
Coordninatiion

Termoplastic
New Product
Process &
Development
tooling

Filament
winding and
Tool & process analysis
Technical Test and Development Manager
Drawings
support Homologation Industrial partners and
Analyzis Cluster work
• FEM
Manager Manager Test Manager • Mold flow
72
HEXAGON RAGASCO COMPETENCIES

73
AUTOMATED TERMOPLASTIC PROCESSING – TOOL
DESIGN AND COMPOSITE COMPETENCIES

74
DESIGN AND 3D MODELING COMPETENCE

3 Designs to be proposed to Butagas

1. Eksisting Viseo in PP or PEHD
2. Viseo 3 with lower cost design
Inner design to 3. Viseo 4 with cost oprtimum design
be completed

75
FROM INDUSTRY 1 TO 4
RFID: KEEPING TRACK OF YOUR CYLINDERS

• Hexagon Ragasco cylinders can

be supplied with RFID chips
installed by IDTEK
• All RFID numbers logged on a
customized company database
• Allows cost-effective management
of cylinder stocks through the
whole supply chain
• Allows improved rotation of
cylinders and better customer
service
• With RFID the Real Cylinder
Delivery Cycle can be measured
RFID: END-TO-END DIGITAL LPG OPERATIONS
BY PEGASUS

• Physical Tracking & CRM

• Digital Control & Benchmarking
NEW MARKING (EXAMPLES)

79
 NEW PRODUCT DESIGN WITH IMPROVED
D1 PROPERTIES

Explain Target, status and background

Values / Advantages: Analyses we need to do:

• New aestetic design -Enable customers to tailormake
cylinders • Identify new design possibilities and product features
/elements –end user and customer value evaluation.
• Improve properties
• Evaluate how to improve properties
Costs / Disadvantages:
• More complex production • Propose pattern, and design with possible added features,
and include material screening and specifications.

• Complete detailed engineering, and stipulate cost for new

designs (BOM, tooling, production, operations, machines.

• Evaluate possible IFU with Butagaz/Antargaz

• Structure product design ideas

̵ Create an overview of product design opportunities?

80

Decision:
PIECES OF EVIDENCE CONT.
IPR NEW DESIGN REGISTRATIONS

81
81
NEW PRODUCT OPPORTUNITIES

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

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

82
ZERO TOLERANCE FOR CORRUPTION

83
WHY CONSIDER A NEW PLANT ABROAD

• Increasing sales to distant regions & emerging local competition

• Customer requirements to local value added for technical approval of products
• Delivery and lead-time from Norway is long (6-8W) + capacity limitation some years
• Product cost DDP customer – (supplied from Norway incl transport & tariffs):
• More robust business model; Two production lines vs one
• Important to avoid cannibalization due to 2nd half utilization challenges @ Raufoss

84
 SUPPORT INITIATIVE LIKE I4PLASTICS ( WHEN
THEY COMPLY WITH STRATEGY)

• I4plastics main focal areas are within:

Infrastructure collaboration within plastic testing, processing and development

Research & Development projects with special focus on plastics and multi-materials
Plastic and composite education within Technical Collage and University Collages tailored
to industry need and requirements
Innovation speed and culture

̵ i4plastics runs from 2014-2017, with possible extension for 2 years.

̵ Annual budget: 4 MNOK – 12 MNOK total

85
RAUFOSS - THE POLYMER & COMPOSITE
CENTRE OF EXCELLENCE RESOURCES:
Hexagon Ragasco
• Motivated and change oriented Workforce, Highly Competent in Polymer and Composite Materials, and
automated Manufacture of polymer products, with skills in Chemistry, Product and Material testing and
Characterization, working in innovative and dynamic organisation, driven by deep market understanding.

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

• 3 PhDs, 4 MScs and 1 BScs experts on polymers and composites
• Supported by SINTEF Materials and Chemistry - approx xx scientists focusing on P&C downstream
processing
̵ Owned by several industrial companies focusing on materials technology: Hexagon Composites,
Hydro Aluminium, Raufoss Technology, Nammo, Kongsberg Automotive, Benteler.

Infrastructure
• Joint laboratories for materials characterisation and product testing
• Joint research laboratories, pilot plants and demonstrator facilities for polymer processing including 2
injection molding, automated assembly and others
• Manufacturing facilities for polymer downstream processing in 10+ companies

Network/relations
• Research institutes and Universities in Norway and abroad
• Public funding bodies (regional, national and European)
• Regional and national authorities related to business restructuring
86
SUSTAINABLE ENGNEERING -
COMPETENCE

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

with NTNU)

87
NEW RELEVANT BIA-PROJECTS

88
OVERALL FOCUS AREAS/
SUPPLY CHAIN STRATEGY:

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

production orders and customer

• Focus on total quality cost from the production to customer

89
• Continue improvements in Lean – both in administration and production
SUPPLY CHAIN -
LOGISTICS EXCELLENCE 2015 -->
Internally
ERP utilization Options
• Identify accurate Waste in Production for Optimization of
Product and Processes
• Cost Breakdown and Development
• Real Calculation of Production Orders
• SuperDagfinn – Warehouse Scanning System - work more
efficient
• Reduce manual failure
• Save time – Lean

• Serving the Customers better - > Customer Excellence –

Certificates, Serial No., RFID,

QR Code - Information read by Mobile Phone:

• Where to buy
• Where to refill
• How old is cylinder
• When to retest
• Country of Origin
90
QUALITY – BE PROACTIVE VS. CUSTOMERS

• Be proactive in relation to quality by:

• Visualizing key processes.
̵ Online curves in all production cells.

• Do not accept deviations and if they come analyze them

• Visualizing scrap
̵ Online curves in all production cells.

• Secure documentation and quality of purchased parts

• Service:
̵ Follow up non conformities and to proactive
̵ NAV to automatic generate a standardized COC.

• Continuous improvement:
̵ Run improvements according to the PDCA wheel.
̵ Implement all corrective actions within specified deadlines.
̵ Always fulfill all disciplines in the Non Conformity template. (8D-template)

91
ONLINE PROSESSDATA

92
 HSE – SICKNESS ABSENCE

Short-term Kids Long-term

Period Total % Work-related injuries Initiatives
% sickness% %
Absence No absence
from work
Q1 2014 1,96 % 0,33 % 1,29 % 3,57 % 1 3
Corrective actions
Q2 2014 1,98 % 0,20 % 1,03 % 3,20 % 0 3 are implemeted for
Q3 2014 2,57 % 0,14 % 0,76 % 3,47 % 0 3 all workrelated
Q4 2014 2,28 % 0,28 % 2,15 % 4,71 % 0 2
Totalt 2014 2,20 % 0,24 % 1,31 % 3,74 % 1 11 injuries
Q1 2015 4,37 % 0,57 % 2,13 % 7,07 % 0 4

Kids sickness%
Long-term %
Short-term %

H-verdi: 0
Q1 Q2 Q3 Q4 Totalt Q1 Target
2014 2014 2014 2014 2014 2015 Ved utgang mars: 421 dager uten fraværsskade
93
.
 IPR

IPR Titel Patentnumber Land LPG/CNG Valid from Offentlige Claims

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

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

Heft mellom liner og kompositt Forbehandlig + hovedbehandling

Patent Boss for pressure vessel 312048 Norge LPG 23.apr.99

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

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

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

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

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

Etableres Dec
Patent Pinch line free liner PCT Alle mulig LPG/CNG 2012 Endring mangler skisse, patent blåsewdor /konsept liner uten skreps

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

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

Trade marks Xstatic LPG Ragasco

Trade marks Hullmønster/Ragasco LpG Ragasco

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

̵ Understand your customers

̵ What is best for the company is best for you
̵ Define and follow strategy. Evaluate strategy before acting against it.
̵ Decision making at the lowest level possible.
̵ Lead competence, build motivation and innovative culture, more than actions
̵ Never loose main focus on costreduction and improvement
̵ Build barriers incl IPR, differenciate and increase value for your customers.
̵ Be international, and think and act globally
̵ Be aware of, and support the «money makers» in your company (Production)
̵ And not to forget; automation is a must, at least for production in Norway, and
add quality ensurance and improved process control.