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uni UPDATE – Internal newsletter for Ammeraal Beltech modular sales organisation December 2009 Ammeraal Beltech Modular A/S Page 1 of 12 With the Roller Coaster, Hollywood Rocket, Directly to Santa in No Time….. Product of The Month: uni QNB uni QNB Plastic Modular Belts and The Corrugated Industry Recertification of Our Quality Management System 2009 in a Modular Perspective Modular Know-how Seminar on Infonet The Marketing Support Team in Ammeraal Beltech Modular Send you Christmas greetings We have received this very nice Christmas Greeting from Italy. With the Roller Coaster, Hollywood Rocket, Directly to Santa in No Time….. The gremlins teased us… In the last edition of uni UPDATE, an unfortunate error appeared in the article about the roller coaster, Hollywood Rocket – universal projects. The article mentioned that the roller coaster runs with a speed of 118 km/hour – this is rather extreme, unless the roller coaster changes name to Rocket Express to Santa. The correct speed is 0.33 m/sec. We apologize for the incorrect information. Karin Lund See Christmas Greeting 2009 from modular marketing page 11. True to tradition, this December edition of uni UPDATE contains some Christmas fun. We can reveal that this year some very special crawling pixies will be presented.

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Page 1: UNI QNB

uni UPDATE – Internal newsletter for Ammeraal Beltech modular sales organisation December 2009

Ammeraal Beltech Modular A/S Page 1 of 12

• With the Roller Coaster, Hollywood Rocket, Directly to Santa in No Time…..

• Product of The Month: uni QNB uni QNB Plastic Modular Belts and The Corrugated Industry

• Recertification of Our Quality Management System

• 2009 in a Modular Perspective

• Modular Know-how Seminar on Infonet

• The Marketing Support Team in Ammeraal Beltech Modular Send you Christmas greetings

We have received this very nice Christmas Greeting from Italy.

With the Roller Coaster, Hollywood Rocket, Directly to Santa in No Time….. The gremlins teased us… In the last edition of uni UPDATE, an unfortunate error appeared in the article about the roller coaster, Hollywood Rocket – universal projects. The article mentioned that the roller coaster runs with a speed of 118 km/hour – this is rather extreme, unless the roller coaster changes name to Rocket Express to Santa. The correct speed is 0.33 m/sec. We apologize for the incorrect information. Karin Lund

See Christmas Greeting 2009 from modular marketing page 11. True to tradition, this December edition of uni UPDATE contains some Christmas fun. We can reveal that this year some very special crawling pixies will be presented.

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uni UPDATE – Internal newsletter December 2009

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Story of the month/Product of the month

Product of The Month: uni QNB uni QNB Plastic Modular Belts and The Corrugated Industry uni-chains QNB plastic modular belts are now accepted as the new material handling standard in modern corrugated production plants. They are found on most new installations and are also being retrofitted into older production lines. The total installed volume of uni QNB plastic modular belts continues to grow each year as plant operators learn the advantages and understand they represent totally reliable solutions. Each year, many new plants fully equipped with thousands of square meters of uni modular plastic belts are built and hundreds of conveyors with uni QNB belts are now installed across the global corrugated industry. In addition the future still remains bright. In order to survive under current market conditions, corrugated plants must be lean and highly efficient, proven savings made by installing the automatic conveyor systems result in further investments still being made.

The beginning was very different. Traditional conveyor systems in corrugated plants used roller tracks, belt over roller and roller slat chain conveyor combinations. These all exhibited problems such as stack creep, resulting in an elephant’s foot stack profile, stack instability, snagging and toppling of stacks. On these traditional handling systems lower layers in stacks frequently have had to be written off because of contact pressure points marking sheets. Also dirt and surface oxides from rollers marked bottom sheets. Although the advantages of the plastic modular belts in the corrugated industry are now obvious, it took time to build confidence within the industry. Early progress in this industry was slow. Roller conveyors were very low priced and the first modular conveyors were expensive to build. Step by step the conveyor OEMS reduced the cost of construction and the installed base started to grow. Reliability is critical within corrugated production plants and from the beginning uni QNB proved to be very reliable, but this was achieved only after extensive co-operation and development carried out with our key OEM customers. Others have tried and failed, indicating the importance of attention needed to even the smallest details. News of the modular belt technology has now spread around the corrugated industry. When proposals are submitted for new installations the incorporation of plastic modular belts has now become the accepted standard solution.

Improve corrugated plant production flow and efficiency using uni-chains QNB plastic modular belts. Production of corrugated board is a high volume but very competitive manufacturing industry. An industry where only the very fittest can survive. uni QNB belt has become the belt of choice for automation of these corrugated plants.

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uni UPDATE – Internal newsletter December 2009

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Modern high performance corrugators produce massive volumes of product - a 3m wide corrugator running at 400m/min outputs 1200 square meters of board per minute. Without an intelligent automated materials handling system, it is almost impossible to remove and control flows of this tremendous product volume and at the same time coordinate downstream production activities. Traditional product removal methods via forklift trucks are no longer the economic option for these modern plants. Investment in an integrated intelligent handling system incorporating plastic modular belts has become the new standard for the corrugated industry.

Downstream from the corrugator, converting machines need constant feeding with an uninterrupted flow of board to ensure they operate at maximum efficiency. With several different converting machines operating, demand on the materials handling system quickly becomes complex and any delay in material supply results in loss of output capacity. The performance of the materials handling system thus determines the overall success of the production plant. Successful corrugated plant operation is all about FLOW not handling and storage. Flow between corrugator and downstream equipment is balanced using a work in progress storage area. The work in progress storage system is based around a series of parallel modular belt bi-directional conveyors fed by a transfer car. Stacks of products are automatically moved in and out of the store area as required by down stream processes. The modern corrugated plant is highly efficient and complex to control. Therefore fully automatic handling of products is a key to plant profitability. Good use of automatic conveyor handling systems combined with intelligent control software will maximise the production capacity of a plant by ensuring work flow, efficiency and greatly influence profitability.

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uni UPDATE – Internal newsletter December 2009

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uni QNB modular belt. A few examples of corrugated plant applications: CORRUGATOR TAKE AWAY CONVEYORS Output from the corrugator must be continually cleared. A series of conveyors are used to clear products away from the corrugator down stackers. uni QNB belts form a clean hygienic modern production environment. The plastic belt surface fully supports corrugated products being conveyed and ensures safe mark free handling. This full clean modular belt surface is especially an advantage when handling stacks of boards with sensitive liners, micro flutes, lightweight board and products intended for later direct food contact applications.

Safety of plant personnel is critical to maintain at all times. Within a complex plant layout several points will exist where it is necessary for personnel to cross the conveyor system. Modular belt equipped conveyors with their flat surface offer major improvements compared to roller conveyors; you can walk on the modular belts. Personnel often cross conveyors in the stacker take away area, thus a much safer and cleaner working environment is obtained. To increase safety, uni-chains offer the option of uni QNB belt with special non-slip surface for use in pedestrian crossing areas. In addition yellow strips or yellow edge links can be incorporated into the belts to increase visual awareness of a moving conveyor surface. For higher output, plant transfer cars with multiple belts are provided to increase capacity to move the high volumes of product. Stacks of corrugated board are assembled on the down-stacker take away conveyors ready for collection by transfer cars which

automatically take the stack to its next production process step or move the stack into the work storage area. CROSS PUSHING Cross pushing is used to double sideways stack patterns. Two stacks are then loaded onto a transfer car simultaneously which results in faster car loading and response times. This arrangement is an advantage where long transfer car travel distance exists and improves system response times.

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uni UPDATE – Internal newsletter December 2009

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TRANSFER CARS Transfer cars automatically move stacks sideways across the conveyor system. The modular belts are bi-directional allowing loading and unloading from either side. Cars can achieve transit speeds of up-to around 3 meters per second thus quickly can reach the far locations and return in time to receive the next load of stacks. Below: Note the high stack quality (straightness of stack) maintained after transfer from car onto storage conveyors WORK STORE AREA

Ideally product will move immediately and directly from step to step through the converting process but in practice this flow is not always balanced, hence the need for work in progress storage. The work in progress area must be carefully managed and optimised to ensure overall operational efficiency. Excessive storage capacity and its misuse can lead to inefficient plant operation. Double height systems have been developed for plants requiring large storage capacity with limited ground floor space. Transfer cars incorporate conveyors mounted on lift tables to service both store levels. All store conveyors are bi-directional to allow loading and unloading from same end by a transfer car. Work storage conveyors in some plant layouts are arranged to allow transfer cars to access both ends, this

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uni UPDATE – Internal newsletter December 2009

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arrangement generally results in better process flow. Bi-directional conveyors ensure stacks are maintained in blocks without gaps between, any gaps between stacks on the belts is lost storage capacity. Wide stacks can be supported by two parallel conveyor belts. Pairs of modular belts are also used with a small gap between in order to allow in-conveyor bed mounting of stack detection sensors. With this arrangement sensors are better protected from mechanical damage and possible misalignment. CHANGING DIRECTION Many methods have been developed to allow change of direction. A few examples are presented below. Turntables

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uni UPDATE – Internal newsletter December 2009

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Cross Roads

90 deg transfer unit, which is bi-directional, results in a cross roads configuration. Products can cross simply straight ahead, turn left or right in any combination.

Swing Car

Similar construction to a transfer car but travels in a radial arc motion to turn stack direction.

Above: Right angle station and swing car system by Minda. Note the cross transfer in the right angle station also incorporates uni-chains uni QNB belting for both running directions (no roller chains used for cross direction).

PALLET INSERTER Pallets are used for transport of stacks to customers. Pallets are automatically inserted under each stack, and then full pallets are conveyed to dispatch areas by uni-chains uni QNB belts.

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uni UPDATE – Internal newsletter December 2009

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uni QNB THE LEADING MODULAR BELT FOR CORRUGATED Let’s keep it that way

Finished goods: Loaded pallet transportation on uni-chains uni QNB modular belt.

Our strength within the corrugated industry has been achieved by standardizing corrugated solutions based upon only a few components from the uni-chains uni QNB range, ensuring we offer the same solutions for all applications worldwide, ensuring we work around fully developed and tested configurations for each application, building high volumes for uni-chains production allowing attractive pricing, globally co-ordinating our actions to maintain our position and control. Many different solutions and conveyor construction methods are possible but to maintain our strength and image we must continue along our focused standardized approach. Help us keep uni-chains uni QNB the leading solution for corrugated. Please contact the corrugated team for guidance when working on corrugated projects. Graham Allen Manager R&D and Application Support Ammeraal Beltech Modular uni news

Recertification of Our Quality Management System In beginning of December, we had a two day external audit by DNV (Det Norske Veritas) on our Quality Management System. The objective of this audit was the recertification of Quality Management System from ISO9001: 2000 to ISO9001: 2008. During the two days, DVN visited all departments and examined the processes. DNV approved us to achieve certification to ISO9001: 2008. In connection with the audit, DNV made four deviations on our quality system. All four were considered minor deviations. Now both our management and the involved departments are in the process of clearing these deviations before the end of January 2010, so we will be ready to receive our new quality certificate in February. We are happy with the outcome and are also pleased with the fact that the quality system has worked well in 2009 considering that this year has been an exciting and different year in many ways. DNV has commended us for our good work and for having retained focus on customers, delivery and service. Among other things, they said that it is nice to see that it is still possible to achieve very impressive results, such as:

Delivery performance 97% Average complaints / month 10 Customer satisfaction 4.3 (scale 1 - 5) New, very impressive, "Engineering Manual"

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uni UPDATE – Internal newsletter December 2009

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Facts: ISO 9001 is the most common and globally recognized standard providing assurance for the quality of goods and services in supplier-customer relations. ISO 9001 is by far the most used and well-known standard for quality management systems in the world. More than one million companies are certified in 170 countries DNV is one of the world's leading certification bodies/registrars offering the latest in management systems certification services. With more than 70,000 certificates issued worldwide, DNV evokes a strong commitment to safety, quality, and concern for the environment. DNV has about 9,000 employees in 300 offices in 100 countries. Jens Ole Ewers Quality Technician Ammeraal Beltech Modular A/S uni news

2009 in a Modular Perspective As it is custom at this time of the year, one tends to look back on the year now coming to an end. Seen from the Modular Marketing Centre, it has been a hectic and very interesting year. Compared to 2008 our focus has been quite different this year. 2008 was characterized by our biggest product launch ever and with many resources spent on training and education of the sales force. Due to the difficult market situation, 2009 unfortunately started with some reductions in our resources and we had to say goodbye to good colleagues. From a product perspective, we have seen far less new products this year and we have turned our focus towards optimizing the services that we provide our customers - seen from the Marketing organisation in Denmark they are now mainly OpCos.

New Engineering Manual From a technical point of view, the most important activity in 2009 was the release of the new engineering manual. We have received many

positive reactions from the market and our sales organisation. We trust that with this new tool we can offer our customers even better technical advice and recommendation - thus enhancing our

reputation as true solution providers giving added value to our customers in designing optimum conveyor solutions.

Service Improvements During 2009, our Supply Chain team, the Logistic team and Fulfilment have been through some difficult times with reduction in resources. However, they have been able to set new standards for the service levels to the market. There have been improvements with regards to response-time, as well as improvements in delivery time, and they have kept delivery performance above 98%. So on behalf of the Marketing team, I would like to use this opportunity to express our appreciation for the improvements realized in 2009 including the massive work on Service Level Agreements illustrating a commitment to service that I trust will support our target for growth for 2010.

Pricing As 2009 turned out to be a very competitive year with less market growth than we have been accustomed to, we have seen very aggressive pricing from our competitors. To support our market position we have made major price reductions on some key products. Our price reductions have mainly been on “commodity” products, where it has been difficult to sell on unique features. By reducing the non-standard belt width pricing and removing a range of fees, we have supported the replacement business, when OEM business was down. The reduction of prices in high volume chains in June might explain why we have seen sales growth in volume continuously over the last 3 months.

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uni UPDATE – Internal newsletter December 2009

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Belt sales in square meter from the Danish MU do not show a clear picture, but November turned out to be the best month in volume (when uni QNB is excluded)

uni QNB is in volume by far the biggest seller but a clear effect of the price reduction made in June cannot be seen from the sales figures.

All in all, we had a very good start in January , but we have been struggling with the sales since this month.

I hope that the work done by all of our colleagues in Denmark and around the globe, battling to support and grow the Modular sales, has built the foundation for the sales growth needed in 2010. And for those of you looking for new products, we can promise that 2010 will bring expansions to our assortment and a completely unique new belt for the meat segment. On behalf of the modular segment, I take this opportunity to wish all of you a Merry Christmas and a successful 2010. Peter Broe Product Manager Ammeraal Beltech Modular A/S uni news

Modular Know-how Seminar on Infonet

The presentations of the Modular Know-how

Seminar held in Denmark on October 27th – 29th

2009 are now available on the Ammeraal Beltech

infonet.

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uni UPDATE – Internal newsletter December 2009

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The Marketing Support Team in Ammeraal Beltech Modular Send You Christmas Greetings Crawling Pixies Give More Effective Employees Employees work better, if they are allowed to decorate the office. A survey from University of Exeter shows this, writes the Danish magazine, Arbejdsmiljø. More Motivated and Efficient If you are allowed to leave your mark on the office, motivation and efficiency will go up by almost a third. The point is that job satisfaction is created when you are allowed to act independently. ‘It is all about autonomy. Being able to make your own decisions, is an extremely important happiness factor - it does not matter, if it is regarding work time, work content or decoration in the office’, says Alexander Kjerulf, author of several books about job satisfaction. Dull Offices Kill Creativity ‘The controlled grey, white and black open-plan offices give a bad result when it comes to well-being and production. If you work in a colourful environment and are allowed to mess about, you become more creative’, says Alexander Kjerulf. ‘The brain is stimulated by variation in your surroundings and you will get more energy and joy into the work process’, Alexander Kjerulf continues. He encourages to put up paper chains, crawling pixies and other Christmas decorations – altogether decorate your office with posters from your favourite movie or drawings made by your children. ‘In this way, the office will be your own place’, he says.

Crawling Pixies A Danish tradition known since the 1940s are pixies cut in cardboard and placed here and there in the house. They are called crawling pixies and it was the humorous cartoonist, Frederik Bramming, who in 1947 named the cut pixies due to the fact that they were ‘crawling on furniture, picture frames, paintings, door frames, window sills etc.’ See the uni crawling pixies 2009 next page! The uni crawling pixies are Joakim, Stig, Stig, Marian, Germ, Coop, Kenneth, Jens, Peter, Graham, Chris, Johnny Stine and Karin.

Sales Region Nordic

Fulfilment

Belt assembly

The Marketing Support Team in Ammeraal Beltech Modular sends you Christmas greetings. The uni crawling pixies 2009 wish you all a Merry Christmas and hope that we will bring joy to all your offices.

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uni UPDATE – Internal newsletter December 2009

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The uni crawling pixies 2009 wish you all a Merry Christmas and hope that

we will bring joy to all your offices.