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ALBERTA STEEL MANUFACTURERS

BUILDING A SUSTAINABLE FUTURE

Paul Zubick, P.Eng. Canadian Institute for Steel Construction Alberta Regional Chairman

ALBERTA STEEL MANUFACTURERS (ASM)

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• ASM provides a vehicle for multi-stakeholder dialogue between suppliers, owners and others to explore how to strengthen and improve supply chains

• A key goal is to create a business environment that is collaborative, proactive, learning based and innovative – one that benefits everyone

Canadian Institute of Steel Construction (CISC) Mission: Canada’s voice for the steel construction industry, providing leadership in design and construction efficiency, quality and innovation. Activities: The CISC promotes the use and benefits of steel in construction, adds value to the construction and design community and supports the needs of the membership and industry through:

•Advocacy & Promotion •Quality Certification •Education and training •Industry codes and standards •Research and development •Support service to consultants (Solutions Centre) www.cisc-icca.ca

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APVMA

Mission Provide a forum for communication and discussion on issues concerning the industry and in so doing, improve the performance of individual member companies. Activities The APVMA promotes pressure vessels and heat exchangers fabricated in Alberta through the support of: - Educational institutions promoting the trades - The apprenticeship system - Research and development concerning welding technologies - Certification, and - Advocacy

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ALBERTA STEEL MANUFACTURERS (ASM): OUR VALUE PROPOSITION

1) Developing a Culture of Safety in the Workplace

2) Creating a Sustainable Workforce in Alberta

3) Reducing Total Cost of Ownership (TCO)

4) Building Local Centres of Excellence in supply

5) Quality Certification

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DEVELOPING A CULTURE OF SAFETY

APVMA and CISC member companies helped create the Manufacturers’ Health & Safety Association (MHSA) Mission To achieve work site wellness and reduce occupational injuries and illnesses in the manufacturing industry through education, training, advocacy and partnership. Activities - Assist Employers build a health and safety management system, refine an

existing program

- Employers know that a safety management system is a investment, obtaining a COR and being recognized is a good business practice

- Issuers of Certificates of Recognition for contract bidding purposes, rebates from the WCB

- Presents 35 courses in 6 cities, training more than 3,400 people per year

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CREATING A SUSTAINABLE WORKFORCE IN ALBERTA

- Support Alberta Apprenticeship programs for welders, steam fitters, structural and plate fitters, millwrights, boilermakers and ironworkers (1) totaling 14,657 individuals annually

- Provide support for CAREERS: The Next Generation - 125 scholarships and 90 research grants to Canadian

universities – totaling $3.1M - Training for nearly 2,900 industry professionals over the past

four years

- Total number of metal manufacturing-related apprentices registered in the provincial apprenticeship program in 2011 exceeded 10,800.

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(1) Source: www.tradesecrets.gov.ab.ca

Delivering Lower Total Cost of Ownership (TCO)

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• When comparing total cost of ownership – Domestic suppliers are highly competitive

•International suppliers can cost 25% or higher when compared to domestic, in addition to higher costs associated with time delays.

Delivering Lower Total Cost of Ownership (TCO)

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We have partnered with the University of Alberta and external consultants to conduct two benchmark industry studies: 1. Canadian Structural Steel Manufacturing Capacity Study Determine the annual capacity of the Canadian structural steel manufacturing industry, broken down in the following categories: structural steel, bridge work, non-pressurized structural plate work, and open web steel joists. 2. Total Cost of Construction Comparison Study between Canadian Manufactured Steelwork

and Asian Manufactured Steelwork Determine the final erected cost of structural steel manufactured in Canada compared to structural steel manufactured in Asia.

BUILDING LOCAL CENTRE OF EXCELLENCE IN SUPPLY

Local relationships provide for greater accountability, opportunity for collaboration and responsiveness

CISC Capacity - Alberta APVMA Capacity

- 20 members with more than 2,000,000 square feet of production facilities

- Monthly fabricating capacity in excess of 10,000 tonnes

- Individual projects with vessel dimensions 75 metres long, 10 metres in diameter, weighing 700 tonnes

- 31 members in the province of Alberta

- More than 16,000 tonnes per month of local capacity

- More than 100 other fabricator members nationally providing an additional 55,000 tonnes of capacity per month

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CERTIFICATION GUARANTEES YOU ARE DEALING WITH REPUTABLE BUSINESSES WITH QUALITY PROCEDURES

Comments

- Global certification standard

- Third party audits by the CWB Group / Quasar

- Audits every three years by ASME & ABSA

- Holders of current “U” stamp as per ASME

- Regular inspections by ABSA enforcing the Safety Codes Act

ASME = American Society of Mechanical Engineers ABSA = Alberta Boilers Safety Association 9

CORPORATE SOCIAL RESPONSIBILITY

Investing domestically provides benefits to Canadian economies

- More than $6.0M in charitable donations annually

- $1.0M “work-in-kind”

A Winning Partnership

ALBERTA STEEL MANUFACTURERS &

ALBERTA’S ENERGY SECTOR OWNERS