IN THIS ISSUEmines, two copper smelters, a copper rolling mill, wire rod plant and a number of auxiliary businesses. KgMH is the ninth largest producer of copper and third largest

THE

Solutions from ESCO

IN THIS ISSUE

Caption

Interview with EP President Cal Collins (p. 8)Single Point of Contact Training (p. 14)Swiss Dealer Celebrates 50th Anniversary (p. 15)53rd Annual Dealer Executive Policy Meeting (p. 18)

ESCO® ProFill™ dragline bucket getting full loads at a Wyoming coal mine (p. 10)

MA

RC

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2010

ESCO is a leading manufacturer of technically-rich metal wear parts and components for industrial applications.

ESCO is a leading global provider of highly engineered consumable products and solutions for challenging industrial applications in the resources, infrastructure, power generation and transportation markets.

We operate on six continents supplying ESCO branded products through a global distribution network, close to our customers, delivering superior quality, value and speed.

For nearly a century, customers have looked to ESCO for productivity improvement, responsive service and innovative solutions to their most difficult problems related to wear, impact, corrosion or heat resistance.

ESCO is committed to eliminating waste in all that we do and to business practices that lead to sustainable economic, environmental and social benefits.

ESCO MISSION

• Show the strengths and problem-solving capabilities of ESCO’s business groups

• Spotlight ESCO’s successes in the diverse markets it serves

• Communicate the values and traditions that make ESCO unique

• Help build lasting and mutually beneficial relationships with customers

EDGE MISSION

Printed in the USA on100% recycled / 100% post consumer waste paper.

© 2010 ESCO Corporation.All Rights Reserved.

The EDGE: Solutions from ESCOThe Magazine of ESCO CorporationMarch 2010 Volume 7 Issue 1

EditorJohn Howard

DesignerStephanie Travis

The EDGE staff would like to thank the following individuals for their help on this issue:

Juraj Almasi, François Baril, Ivan Carlos, Cal Collins, Becki Dale, Pat Fonner, Steve Ghormley, Mark Gilbertson, Dick Halbert, Steven Hyde, Lew Gray, Curt Griffith, Julie Herbert, Dennis Jamison, Grant Kleckner, Kelvin Kennedy, Ken Kubo, Heidi Lowe, Mark Mallory, Dariusz Organiściuk, Mike Passen,Marion Pender, Dave Poer, Robert Rado, Lubomir Repaty, Ryszard Sługocki, Mike Sparks, and Brent Wismer.

The EDGE is published three times per year.

Readers’ comments and suggestionsare always welcome.

EDGE MagazineESCO Corporation2141 NW 25th AvenuePortland, Oregon USA 97210e-mail: [email protected]

ESCO is a leading manufacturer of technically-rich metal wear parts and components for industrial applications.

Did you know this magazine is online?

Each issue of the EDGE is posted on ESCO’s corporate web site as an electronic PDF and can be accessed here:

www.escocorp.com/media/edge_magazine.html

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We want to hear from you! Send us your thoughts:

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ESCO is a leading manufacturer of technically-rich metal wear parts and components for industrial applications.ESCO is a leading manufacturer of technically-rich metal wear parts and components for industrial applications.

4

ECOnOMIC OPTIMISM IS SlOWly BuIlDIng

My sense is the economic downturn that shook the world in 2009 is beginning to give way to a more confident outlook in 2010. Mighty

Caterpillar, the world’s leading heavy equipment manufacturer, and others in the industry are reporting improving orders as mining and construction activity begins to pick up. The employment figures in the united States are better than last year as most firms have stopped layoffs and some are cautiously beginning to take on temporary workers and contractors to meet growing demand for products and services.

Pat Fonner, vice president for global sales and marketing for ESCO’s Engineered Products group, reported that the mood was “a little more optimistic” at the Dealer Council and Dealer Executive Policy Meetings in San Antonio in January. “We’ve seen this before,” he said. “The construction market will come back. It is not a matter of whether it will happen, it is a matter of when. Most people believe there will be an up-tick in the latter half of 2010 and, in fact, there was much discussion with our dealers about being ready for the expected increase in volume.” Paul Pope, general manager for global inventory and demand planning, reassured dealers that ESCO is prepared to respond to any surge in demand that may be coming in the months ahead.

Pat also referred to ESCO’s “long term view” of customer service and commitment to develop and offer products that reduce customers’ cost of operation in a safe manner.

The new ProFill™ dragline bucket, profiled in an article on pages 10 to 13, is a good example of an innovative earthmoving product from ESCO that is allowing a forward-looking coal mining customer to reduce cost and improve mining efficiency. I am no engineer or dragline operator, but even my untrained eye could see the heaping loads and quick and efficient loading that our ProFill buckets were providing our friends at the Cordero Rojo Mine near gillette, Wyoming.

Mining activity in general has remained pretty strong throughout this recession. “gold prices are near historic highs and gold mining is going full speed and consuming ESCO® wear parts,” noted Mark Mallory, vice president for north American sales. “Copper mines have rebounded to profitable levels, and oil prices have stabilized in the $75 to $80 dollar range, which has put most companies working in the oil sands back into a growth and investment mentality. This is providing a good opportunity for ESCO to grow sales in ‘green paint’ as well as the processing side of the business.”

Snowplow blade sales are another bright spot for ESCO as the eastern united States experienced a series of snowstorms of historic proportions this winter. (Please see article on page 4.) As one of the nation’s leading suppliers of blades, ESCO has been working 24/7 to keep up with the demands of state highway departments and municipalities as they dig out and replace worn blades.

The articles in this issue, including the interview with Cal Collins, president of ESCO Engineered Products, should give readers optimism about the year ahead. From market excitement about the ultralok® tooth system, to manufacturing process improvements at ESCO Turbine Technologies plants, to ESCO’s winning an Oregon’s Most Admired Company award, there is much to feel positive about.

– John R. Howard, editor

SINGLE POINT OF CONTACT TRAINING 14

OSCAR MEIER AG CELEBRATES 50 YEARS 15

TT MEXICO OPTIMIZING FLOW AND QUALITY 16

AR ADJUSTS TO CHANGING ECONOMY 17

DEALER EXECUTIVE POLICY MEETING 18

PROMOTIONS AND NEW HIRES 20

SERVICE ANNIVERSARIES 22

10

FROM THE EDITOR

6

21

CONTENTS

PROFILL™ BUCKETS FAVORED AT CPE CORDERO ROJO MINE

SNOWPLOW BLADES

EVERSHARP™ LIP SYSTEM ATPOLISH UNDERGROUND MINE

BUCKET WHEELS REVISITED

T his winter has featured unusually cold temperatures and heavy snowfall in large sections of north America, Europe and Asia. Big snow storms have blasted eastern

Canada, the Plains, Midwest and northeastern united States, prompting some to ask, “Where is the global warming?”

Ice, snow and frigid wind are generally bad news for those who must live, travel and work in such conditions. But wintry weather is welcome news for one of ESCO’s product lines: snowplow blades.

ESCO entered the snowplow blade business in 1989 when it purchased Bucyrus Blades, Inc. In 2000, when it also purchased Pacal blades, ESCO became one of north America’s leading suppliers of cutting edges of all types including snowplow blades.

Historic Winter of 2010 Demands lots of Snow Removalby John R. Howard

ESCO manufactures and sells snowplow blades under both the ESCO® and Pacal® brand names. Three grades of blades are offered: ForgeTemp® high carbon steel blades, flame-hardened blades, and blades with tungsten carbide inserts. Flame-hardened blades generally last 2-3 times longer than standard high carbon steel blades. Tungsten carbide inserted blades can last 20 to 30 times longer than standard steel. ESCO manufactures the snowplow blades in its Bucyrus, Ohio and Steinbach, Manitoba plants.

Carbide inserted blades are favored on plows that work freeways and the big interstate highways where there are no manhole covers or other obstructions that can damage brittle carbides. Carbide blades cost more but last much longer, providing excellent value.

Wintery Weather is good for ESCO’s Snowplow Blade Business

Tandem snowplows clear a highway on Bainbridge Island, Washington.

THE EDGE MARCH 20104

“Our business is usage driven. In a heavy winter, we will make blades

full-bore nearly all year long.”

– Dick Halbert

Snowplows themselves come in a wide variety of shapes and sizes from huge highway rigs to small attachments for pickup trucks and farm tractors. Accordingly, the snowplow blades are offered in a variety of dimensions. A pickup truck typically will use a blade measuring 3/8” thick by 6” tall by 7-8 feet wide. A highway plow, on the other hand, typically uses a blade 1” thick by 8” tall and up to 16 feet wide. These often come in 2-3 sections. ESCO also offers snowplow blade attachments including shoes, front runners, v-noses, and one-way noses.

“There are literally thousands of iterations of snowplows and attachments,” noted Randy yaussy, ESCO’s blade products manager. In addition to supplying typical snow plows, ESCO makes blades for motor graders which are also used for snow removal.

ESCO sells and distributes snowplow blades through four channels: direct sales by bid to large state and provincial highway departments; direct sales to snowplow original equipment manufacturers (OEMs); sales through the ESCO dealer organization; and sales through the Pacal dealer network.

“Our business is usage driven,” said veteran ESCO district manager Dick Halbert, who has sold snowplow blades for nearly 35 years. Obviously, the greatest blade usage occurs in the months of December through March. Anticipating this, states, provinces, counties, cities and dealers generally stock-up on blades in the fall so that they are prepared for the storms of winter. While ESCO manufactures snowplow blades year-round, peak production and delivery occurs in the late summer and fall.

“In a heavy snow winter, we’ll make blades full-bore nearly all year long,” Dick added. “That’s why we encourage our customers to plan ahead and stock plenty of blades because if a large part of the country gets slammed and blade usage spikes, we might have trouble keeping up with demand even working around-the-clock, seven days a week.”

At the time this article was written in mid-February, much of the eastern half of the country was being slammed with unusually heavy snow — a bad thing for transportation, but a good thing for ESCO’s snowplow blade business.

THE EDGE MARCH 2010 5

ESCO® EverSharp™ lips Performing Deep underground in Poland

ESCO’s EverSharp lip system for underground load-haul-dump (LHD) machines offers the advantages of long wear, weld-free

attachment, and a profile that stays sharp throughout its wear life. THE EDGE MARCH 20106

ESCO® EverSharp™ lips Performing Deep underground in Poland

Over 1,000 meters (3,300 feet) beneath the Polish countryside cast components of the EverSharp lip system are warding off the impact and abrasion of

subterranean dolomite and sandstone. The technologically advanced ESCO bucket lips are helping load-haul-dump (lHD) underground mining machines take big bites of copper and silver-bearing ore for Poland’s leading mining company, KgMH.

KgMH Polska Miedź S.A. is a publicly traded company headquartered in lubin, Poland. Founded in 1961, the firm operates three mines, two copper smelters, a copper rolling mill, wire rod plant and a number of auxiliary businesses. KgMH is the ninth largest producer of copper and third largest producer of silver in the world. It employs 18,000 workers and is a major contributor to the Polish economy. It produces over 500,000 metric tons of electrolytic copper, 1,200 tons of silver, and over 900 kilograms of gold annually, earning a handsome profit for its shareholders.

In 2008, KgMH agreed to a trial of ESCO’s new EverSharp lip system for underground load-haul-dump machines. lip wear on the buckets had been an ongoing maintenance challenge for the mines. The company utilizes 14 lHD machines with 8.5 m buckets and 11 machines with 5.5 m buckets in its Rudna, lubin and Polkowice-Sierszowice Mines. Mr. Janusz Źurek, chief mechanical & electrical engineer for KMgH underground mines, worked closely with ESCO’s Robert Rado to set-up the trial. The trial commenced in July, 2008. After one full year of very good performance, the trial was considered a success and the company ordered additional EverSharp lips.

“The lip definitely met our expectations,” said Janusz Źurek. ESCO’s EverSharp cast lip system provided many more hours of wear life compared to plate lips. The weld-free, mechanical attachment design also appeals to the mine officials.

“We try to avoid welding underground,” said deputy chief mechanic Henry Omański “Welding is time-consuming and it releases unwanted gasses into the atmosphere. The EverSharp system allows us to change the lip without welding. It also increases output and decreases our cost per hour of operation.”

ESCO dealer REnOX, headquartered Olsztyn, Poland, works hard to meet the various wear parts and undercarriage needs of KgMH. ESCO’s Robert Rado and REnOX salesman Darek Organiściuk call regularly on the lubin and Rudna mines to advise and check on the performance of the ESCO EverSharp lip systems and other products supplied by REnOX.


Ryszard Sługocki and RENOX salesman Darek Organiściuk discuss the EverSharp lip with lip wear template attached.

Ryszard checks lip wear at Rudna Mine.

“The lip definitely met our

expectations.”– Janusz Zurek,

chief mechanical & electrical engineer

InTERvIEW Cal Collins

Group President, ESCO Engineered Products

Cal earned a law degree in 1986 from Brigham young university’s law school and in 1998 a master of business administration degree (MBA) from

university of Oregon through their OEMBA program. He joined ESCO in 2000 as assistant general counsel, and one year later became vice president & general counsel. He subsequently served as vice president for administration then group vice president for operations. In 2009, he was promoted to president of ESCO’s Engineered Products group.

Cal is the son nick Collins who served as ESCO’s president from 1979 to 1995. This interview with EDgE editor John Howard took place in January, 2010.

Growing up in an ESCO family, what are some of your earliest memories of ESCO, Cal?

I have very good memories. ESCO was the only place where Dad ever worked. He came home with stories after his business travels. I remember the barbecues that my parents hosted for visitors and the management group. And of course we kids enjoyed the ESCO picnics. I have a picture at home in my home office that my dad gave to me when I started at ESCO – it is of me at about age three sitting next to a large ESCO mining point in a gravel yard. So, I feel like I have a little ESCO in my blood. I’m proud to work at ESCO. It is a wonderful organization with great people and great products.

You earned a law degree at BYU and served as ESCO’s general counsel for several years. How do you think your legal background helps you perform as president of the Engineered Products business unit?

As a lawyer I learned the importance of customer service. Whether you are a lawyer in private practice or a global provider of wear products and solutions, some things are universal, such as the importance of responsiveness to customer needs, the availability of your product or service, and the offering of a quality product or service.

lawyers are trained in logic and analytical thinking. These skills can be used to work on almost any kind of problem, including the problems we face every day in our business. As ESCO continues on its ‘lean journey’ it needs people who are skilled at problem-solving, whether it is formulating high level strategies to guide our business or figuring out how to reduce scrap on the shop floor.

After the downturn in business in 2009, have you seen an improvement in orders over the last few months?

I believe that the free fall of the past year is over. We are seeing positive trends on the mining side of the business, especially in emerging markets. That said, there is a degree of uncertainty about whether this trend will hold; only time will tell. On the construction side of our business, we are hopeful that the worst of it is behind us. While there isn’t a lot of optimism out there for market growth in 2010 on the construction side of the business, we expect that we will see increased construction demand in 2011.

ESCO fared better than many other companies during the downturn. What factors helped us weather the storm?

Quite simply our people, our culture and our commitment to QvS have helped us weather the recession. Without the good work that ESCO employees put into ‘lean’ over the past 10 years, we would not be in the position we are today.

As a management team, at the end of 2008 we moved quickly when we saw the recession coming. We did not know how deep or long the recession would last, but we were committed to staying ahead of it and protecting our business and market position. We quickly revised our growth plans for 2009 to a focus on protecting the business, conserving cash and weathering the storm. Today, I can say that ESCO, like it has done many times during its long history, has successfully weathered this storm and we are well positioned for return to growth.

Now that it is behind us, how would you assess 2009?

It was certainly a difficult year for ESCO, but I believe we did a good job of coping with the downturn. going into 2009, Pat Fonner and I set three goals for Engineered Products: First, protect the business and position ourselves for expansion when our markets turn around. Second, drive global expansion of our business outside north America and Western Europe. Third, continue to drive growth through our business development and new product development processes. looking back, our organization did a great job of executing on these objectives.

Product innovation has been a hallmark of ESCO’s success over these last 96 years. Would you say ESCO is as innovative today as it has been in the past?


MOST ADMIRED COMPAny AWARD

yes, our engineers continue to develop outstanding products, but product innovation is very difficult to sustain. We are working hard to improve cycle time for new product development and to standardize and improve processes relating to product lifecycle management. However, I believe innovation at ESCO extends beyond products -- we are progressive in our approach to process management and continuous improvement at ESCO. We are taking QvS principles and applying them to all aspects of our business, including engineering, marketing, sales, and now in our strategic planning and execution processes. To me this is true innovation.

You say that product innovation is hard to sustain. Yet we continue to be a leader in providing products that solve problems for our customers.

Absolutely. Our ultralok® construction tooth system is a great example. ESCO recently received a Top 100 Products Award from Construction Equipment magazine for the hammerless ultralok tooth system. Other good examples are our new Whisler Plus™ lip systems, ProFill™ dragline buckets, and the innovative Kwik-Tip Double Roll Crusher Tips that we developed, patented and introduced up in the oil sands in Canada.

Prior to your promotion to Engineered Products president, you served as VP in charge of global manufacturing. As you visited our plants in North America, Europe and Asia, what impressions did you take way from those operations?

I was impressed by each plant’s commitment to QvS process management and key business metrics. given the challenging market conditions this past year, it would have been tempting for us to take a pass on QvS process management and wait until things got better. Instead, our manufacturing sites accepted challenging goals for reducing inventories, reducing scrap rates, improving safety, improving on-time deliveries, and — on top of all this — continue with the deployment of QvS process management. I’m very impressed with and appreciative of all the hard work our plants have done and continue to do.

The theme of this issue of the EDGE is ‘Optimism.’ Are you optimistic about the future of ESCO Engineered Products, and if so, why?

I’m very optimistic. This is a great time to be at ESCO. We have positioned Engineered Products to come out of this recession stronger and better than ever. The ESCO brand is world-class. We will continue to grow and deliver Quality, value and Speed to our customers in a way that our competitors cannot match. ESCO has aggressive plans for 2010 and beyond; plans for growth, market penetration, introduction and sale of new products, using QvS to improve our business processes, and, finally, making it easier for our customers to do business with ESCO.

Please tell our readers a little about your family.

ESCO was recently honored by the Portland Business

Journal newspaper as one of Oregon’s Most Admired Companies in 2009. Our company was selected on the basis of a survey of 2,000 area business leaders. The Portland Business Journal is one of 40 weekly news magazines across the country owned by American City Business Journals.

The survey asked local CEOs to nominate companies on the basis of innovation, quality of management, quality of products or services, community involvement, and the effectiveness of their branding and marketing. When the votes were tallied, ESCO was one of the top Oregon companies selected in the Traditional Manufacturing sector.

At an awards luncheon held on December 10 at the Portland Hilton Hotel, ESCO’s Jeff Kershaw accepted the plaque and recognition on behalf of the company. Attended by over 800 people, the event was co-sponsored by Kaiser, Wells Fargo and Oregon State university.

I have four girls ages 17 through 27, and my wife Stephanie has three children who are now raised and married. Two of my daughters are in college, my oldest works in retail, and my youngest is still in high school. Stephanie owns a business that she started 25 years ago called Silhouette Marketing. It provides trained food demonstrators throughout the Pacific northwest and Alaska.

As you have taken on greater responsibility as EP president, has it become more challenging to find time for your family and personal activities?

ESCO and my work is a big part of my life. It is always difficult to find balance between work and family. I enjoy reading, spending time with the family, and playing a little golf. As a family, we generally get over to Central Oregon once or twice each summer for a vacation. Occasionally, my wife Stephanie and youngest daughter Erika have been able to travel with me to visit our manufacturing plants. It has been fun having them with me to see ESCO’s business firsthand.

Thank you, Cal.


Cloud Peak Energy is a leader in Efficient

Coal Productionby John Howard

GIllETTE, WyOMIng — Cloud Peak Energy (nySE: ClD) is a newly formed, publicly traded coal producer headquartered in gillette. The 1,500

employees of Cloud Peak Energy (CPE) have built a reputation for innovation, extremely efficient coal production, environmental responsibility and outstanding safety.

The company operates three surface coal mines in the Powder River Basin: the Antelope and Cordero Rojo Mines in Wyoming and the Spring Creek Mine in Montana. In addition, CPE owns a 50 percent non-operating interest in the Decker Mine in Montana. In 2009, the company produced about 93 million tons of low sulfur, high quality sub-bituminous coal. This output is generally shipped by rail and sold by contract to electricity producers throughout the united States.

The CPE mines all use large draglines to remove and replace the overburden. The coal itself is extracted by the truck and shovel method. The Wyodak coal seam that underlies the Powder River Basin ranges from 55 to 75 feet thick — one of the largest and thickest in the world. The coal ranges from 8,400 to 9,350 BTus and contains only 0.24 to 0.43 percent sulfur.

ESCO Responds to Cloud Peak Energy’s Drive for Better

Bucket PerformanceEarly in 2007, a team of engineering, production and maintenance managers at CPE (then owned by Rio Tinto) resolved to improve the efficiency of their dragline buckets while reducing energy consumption and strain-related repairs on the dragline machines. If possible, they wanted to standardize on buckets that would be lighter, fill better, fill faster, penetrate well and have good dumping characteristics.

At that time, the CPE mines used a variety of dragline bucket types, but the team felt there were shortcomings with each of them. The team challenged suppliers to design and build a better-performing bucket, one that filled more efficiently and would not over-load the dragline. They wanted a state-of-the-art bucket that maximized the payload without exceeding the gross allowable load. The winner of the challenge would be rewarded with multiple bucket orders.

ESCO took the challenge seriously. Coincidentally, ESCO had invested in an in-house model dragline research and testing facility and a full-time research engineer, Ken Kubo.


Powder River Basin coal mining company Cloud Peak Energy

collaborates with ESCO to develop a more

productive dragline bucket design


proceeded to order two of the unique buckets for their Cordero Rojo Mine — a 104 cubic yard bucket for their Marion 8750 and an 86 yard bucket for their Marion 8200. The buckets were lighter and smaller than the ones they replaced. “Although it seemed counter-intuitive to specify smaller buckets, we trusted what the modeling and testing showed us,” said lew gray. “When they hit the dirt, both ProFill buckets got bigger payloads than the older and larger buckets.”

ProFill™ Bucket line is BornMinExpo 2008 provided a good opportunity for ESCO to introduce the new product as the ProFill dragline bucket. “Actually, ProFill is a philosophy as much as a big piece of steel,” explained Steven Hyde. “Selecting from a number of patented design variables, we can build ProFill buckets to meet the specific needs of each customer. This ability to interact with the customer and provide a bucket that is custom-designed to meet their specific application and style of operation and maintenance is something that separates us from the competition.”

CPE’s Cordero Rojo Mine received the first two ProFill buckets in December of 2008. As soon as the operators adjusted to the new buckets, they noticed improved performance.

“It was obvious from the start that the buckets were filling better,” said Curt griffith. “They load downhill and work in all digging conditions. Once the operators learned to keep the rig-ging taut, the buckets performed as we hoped they would.”

“The material seems to fill the bucket in waves,” added Kelvin Kennedy. “It fills fuller and packs better. On average, the [ProFill] bucket fills in ten-and-a-half seconds compared to 12 seconds or more before. In most material, it takes only one-and-a-half bucket lengths to fill completely.” The lighter

The dragline team at ESCO had a number of new design concepts in various stages of development — features it could “pull off the shelf” to meet the unique needs of a specific customer and application.

Steven Hyde, ESCO’s lead engineer for dragline products, took the first of many trips to Wyoming in 2007 and 2008 to observe their mining operations and confer with the CPE team on bucket design criteria. Ken Kubo and other key engineering and sales personnel from ESCO and our dealer Trans Equipment were involved in the discussions.

“I give ESCO credit for listening to our requirements, responding with new design concepts and providing a model to test those concepts,” said lew gray, CPE’s director of technical services.

“Cloud Peak Energy’s criteria for bucket performance forced us to rethink what had become conventional wisdom in bucket design,” noted ESCO’s Steven Hyde. “Even though we enjoy a large share of the global dragline bucket market, we are still learning. In the case of Cloud Peak Energy, we had to throw out some old ideas and take some new ones off the shelf in order to push bucket performance to a new level.”

Curt griffith, CPE’s dragline production planner; and Kelvin Kennedy, manager of inspections, visited ESCO’s dragline research and development facility in Portland, Oregon. They observed models being tested, conferred with our engineers, and recommended specific improvements.

To meet CPE’s requirements, the ESCO engineers recommended a bucket design that was narrower and not tapered from front to back. It featured more sidewall taper from bottom to top, and the lip angle, tooth angles, and hitch height were all modified to satisfy CPE’s requirements. Moreover, the team identified areas where unnecessary weight and wear metal could be taken out of the design.

ESCO provided a one-eighth (approx.) scale model of an early version of what became a new bucket design. In a blind test, the model was tested against competitors’ bucket models at a test facility in Australia. In short, the patented “new bucket” from ESCO won the production comparison hands down. CPE

“It was obvious from the start the buckets were

filling better.”– Curt Griffith

On average eight coal trains leave the Cordero Rojo Mine daily.


and smaller ProFill buckets carry more payload than their larger predecessors. When the EDgE visited Cordero Rojo in February, we witnessed the efficiency of these new buckets which filled to the rim every pass.

After a full year of operation with the two new buckets, the Cordero Rojo Mine reports a substantial gain in net mate-rial moved. Cycle times are consistently shorter. In addition, they have experienced less dragline maintenance issues, and calculate that the machines use 18 percent less power to drag a ProFill bucket, a significant energy savings.

“In the spirit of continuous improvement, we continue to work with ESCO to optimize the buckets’ performance,” Kelvin Kennedy noted. Adjustments continue to be made in the hitch height, lip shroud angle, and the weight of various components. In the meantime, CPE has ordered five more ProFill buckets so that all of its mines benefit from increased productivity and commonality of parts.

Cordero Rojo’s sister mine, the Spring Creek Mine in Montana, took delivery of a 75 cubic yard ProFill bucket in December. Early results show productivity gains similar to those observed at Cordero Rojo.

“The operators like the way it handles,” said Dave Schwend, production planner at Spring Creek. “The bucket engages extremely well. It is balanced, fills quickly and dumps well. The numbers indicate it is delivering better production.”

ESCO’s experience with Cloud Peak Energy in developing the new ProFill dragline bucket has been a “win” for both the customer and manufacturer. While ESCO cannot guarantee that other customers will experience the same impressive performance gains that CPE has reported, it is clear that the new ProFill bucket offers advantages in specific materials and applications.

“This is an excellent example of how listening and collaborating with the people who use and depend on our products on a daily basis can lead to technological breakthroughs,” concluded Dennis Jamison, ESCO district manager.

Mule deer thrive on reclaimed Cordero Rojo Mine land.

Steven Hyde, ESCO’s lead engineer for dragline products, collaborated with engineer Ken Kubo and representatives from CPE to develop the highly efficient ProFill bucket design.

Curt, Kelvin, and ESCO district manager Dennis Jamison check out the inside of the ProFill bucket.

“It takes only one-and-a-half bucket lengths to fill completely.”

– Kelvin Kennedy

Curt and Dennis discuss ProFill bucket performance.


Teams Improve Customer Service Through Single Point of Contact (SPOC) Training

ESCO’s Engineered Products inside sales teams in Portland, Oregon and Bucyrus, Ohio recently completed six months of training so that every customer service representative is

well-versed in all ESCO® products and effective ways to sell them. Previously, the Portland team specialized in cast wear parts, capital products and crushing products, while the Bucyrus team focused on rolled steel cutting edges for construction, graders and snow plows.

“It was inefficient to make our customers contact one team for one set of products, and a different team for another set of products,” noted Mark Mallory, vice president of north American sales. “now one inside contact provides information for all ESCO products.”

Early in 2009, Mark asked customer service managers Mike Sparks (Ohio) and Steve ghormley (Oregon) to plan and implement a training program to achieve single point of contact. With much guidance from Marion Pender of the Organizational Effectiveness Team, Mike and Steve developed overview materials targeted at all the customer service representatives, such as standard procedures, pricing, dealer expectations, diagnosing customer needs, and where to find answers to specific product questions.

“The training also emphasized the difference in selling a commodity versus selling a value-added product,” said Marion, who collaborated with Jim Ewing to develop the “selling ESCO” training module.

Each customer service representative was then teamed with a district manager and product specialist to develop a PowerPoint presentation on a specific product line. Once the presentations were developed and approved, the three-person teams delivered

their product training modules to their peers via video conferencing. In addition, several individuals from each site traveled to the other for days of valuable face-to-face training.

The training sessions began in June and were completed in mid-December.. Twenty-five customer service representatives participated in the training in both instructor and student roles. The training covered 13 product lines and customer material planning. After each presentation the participants were tested on the material. If they did not pass they reviewed the information and were re-tested until everyone passed.

The training has been beneficial both internally and externally. The customer now has the advantage of dealing with a “one stop shop” where one person can field all questions. Also, time zone issues have been minimized. Eastern customers don’t have to wait until late morning to call the west coast, for example. They can call Ohio, instead, at their convenience.

“We used to operate like a separate island from Bucyrus,” said Brent Wismer of the Portland team. “now we all know where to go for information and who to go to for blades as well as ‘green paint’. We’re definitely able to provide better service.”

Internally, the single point of contact training has resulted in stronger bench strength. Our customer service representatives are more broadly educated on the entire ESCO offering (except attachments, which are handled separately through ESCO’s Covington, Kentucky facility).

“Single point of contact training increased everyone’s product knowledge, strengthened employees’ presentation skills, and built a stronger sense of unity between our Ohio and Oregon inside sales teams,” concluded Mike Sparks. “It also increased the pool of qualified candidates to fill higher positions when they come open.”

Portland’s SPOC team front row from left, includes Clyde Travis, Dee Dee Weber, Steve Ghormley; middle row, Brent Wismer, Juan Franco, Rita Flores, Tony Brown; back row, Scott Vardsveen, Patrick Lenzini, Zoran Kos, James Ritzman, and Jasper Ciz.

Bucyrus Blade’s team front row from left, includes Cindy Landis, Marge Heid, Dorene Cole; middle row, Mark Fox, Eric Kick, Josh Rinehart, John Zeigler, Cheryl Sipe; back row, Mike Sparks, Craig Martin.


The firm of Oscar Meier Ag was established by Oscar Meier in Biel, Switzerland in 1959. As an expert of the construction equipment industry, he specialized

in importing and selling wear parts from the beginning, primarily undercarriage parts and tooth systems. Eight years after the company was established, Oscar Meier became the ESCO dealer for Switzerland.

In 1972, after extensive training, foreign travel, and valuable experience in the construction equipment industry, Oscar’s son, Rolf, became the company’s managing director. The company opened a welding shop in 1978. The firm outgrew its original facility in Biel and moved to larger facility Meinisberg in 1982.

The company was expanded in stages and today it consists of a two-floor office building, a mechanical workshop, welding shop, several warehouses and a large storage area outside.

To serve a growing market, Oscar Meier Ag has grown to approximately 25 employees. Today, Daniela Meier ueltschi —the third generation — is managing director of this successful, 50-year-old company.

Oscar Meier Ag celebrated its 50th anniversary with an open house event October 30 and 31. The celebration coincided with the inauguration of a new fabrication building, built on the basis of the growing demand for larger buckets and other construction assemblies.

In addition to touring the new facility, the more than 800 guests saw the complete OM product line including buckets, clutches and special tools. The new ESCO ultralok® tooth system was on display. Additionally, an ICE excavator attachment was demonstrated as well as a presentation of the fast new OM-lOCK quick coupling system for excavators.

ESCO congratulates Oscar Meier Ag for 50 years of excellent service to the Swiss construction market.

Swiss Dealer Oscar Meier Ag Celebrates

50th AnniversaryDaniela Meier Ueltschi, managing director; ESCO’s Mike Passen; and Rolf Meier, managing director, pose inside a large bucket during the Oscar Meier AG 50th anniversary celebration.

The Ultralok tooth system was on display during the anniversary celebration.


“We have not reached our goal of eliminating scrap altogether, but the

trend is downwards and our output in the shell area is more consistent and reliable.”

ESCO Turbine Technologies – Mexico uses Key Input variable Control to Optimize Flow and Quality

guAyMAS, MEXICO — The Turbine Technologies team at our Mexican plant has made process improvements that are reaping measurable gains in

casting quality and manufacturing efficiency.

The TT Mexico plant currently produces investment cast blades and damper seals for aircraft engines, turbo-charger blades and nozzle rings for locomotives, and ring segments and damper seals for land based power systems

Beginning early in 2009, Jim Snook, Turbine Technologies’ vice president for Engineering, initiated a Key Input variable (KIv) control program in the shell molding area at the guaymas site. Jim and Jan lane provided supervisor training in best practices and measurement techniques as preparation for the KIv control initiative. Measurement accuracy and consistency are crucial to control process variations.

Approximately 20 variables were tracked and controlled. These included shell weight, binder solids, room temperature, humidity, slurry temperature and specific gravity, drain programs in the robot, plate weight, and a number of other variables. Supervisors and shell mold operators used their training to make precise measurements and observations to determine how variations affected the finished castings.

Prior to the KIv control program, loose ceramic pouring cones were causing an unacceptable number of scrapped castings. By controlling and limiting the amount of slurry allowed to coat the cone, the team began to see far fewer defective castings related to loose cones.

Over the course of the year, the program has resulted in greater process consistency, fewer scrapped castings, and zero molds lost due to loose cones.

“We have not reached our goal of eliminating scrap altogether, but the trend is downwards and our output in the shell area is more consistent and reliable,” concluded Ivan Carlos, TT Mexico’s manufacturing engineering manager. He credits Jose Solis, luis Herrera, Miguel Zavala, and Jesus Zazueta for much of the progress made in controlling key input variables and improving production.

Luis Herrera and Miguel Zavala testing the slurry face coat.

The robotic mold-making equipment has been programmed for optimum shell weight and consistency.


TT Slovakia (AR) Adjusts to Changing Economy

The economic downturn that developed so quickly in late 2008 was especially challenging to AR, ESCO Turbine Technologies’ plant in Povazska Bystrica, Slovakia. Prior

to the recession, AR produced a number of aeronautical engine parts, but softening in the demand for commercial and military aircraft greatly affected the plant’s business in parts for aerospace.

As they say, when one door closes another one opens. In this case, the loss of a significant amount of aerospace business presented an opportunity for AR to develop its ability to make castings for the growing industrial gas turbine (IgT) market. Teams from ESCO Turbine Technologies Belgium and AR worked diligently together to plan, train and execute the IgT initiative at the Slovakian plant. Thierry Bodson and Bernard Polet from Belgium and Juraj Almasi, Juraj Svec and Juraj Olsiak provided the leadership that enabled AR to ramp-up IgT parts production.

The Turbine Technologies sales groups in both north America and Belgium were able to help secure a commitment from an OEM for 13 industrial gas turbine parts. AR got the order and earned customer qualification for all the parts in less than one year, including casting and machining. The entire ESCO Turbine Technologies organization is extremely proud of AR’s ability to adjust so rapidly and successfully to a major shift in the market.

AR has been part of the ESCO Turbine Technologies family since 2000. Since then, the plant has added vacuum melt

capability, earned QMS certification to AS 9100 standard, achieved level 2 non-destructive testing capability for FPI and X-ray, and is capable of

using ceramic cores in serial production. Through a highly qualified subcontractor, it has also added

machining and the ability to deliver finished castings. The plant employs 102 people. In addition to the

IgT castings mentioned above, AR continues to make investment castings for aerospace.

AR employee Peter Gaso works on an IGT casting.

IGT rotor blades like this are now being manufactured at AR.


Optimism was expressed at ESCO’s Dealer Executive Policy Meeting, held in San Antonio, Texas on January 21. The dealer meeting was held in

conjunction with the Associated Equipment Distributors (AED) Summit 2010 Convention and COnDEX trade show.

The breakfast meeting had the theme of “looking to the Future”. grant Kleckner, general sales manager – north America, welcomed the dealers and had the honor of naming the top dealers for 2009. Dealer service anniversaries were announced including a notable 60 year Award to voto Manufacturers Sales Company of Steubenville, Ohio. voto is one of ESCO’s longest standing dealers.

Cabana Earns 2009 leake Award

grant also had the privilege of announcing the 2009 gerry leake Excellence Award winner: Dana Cabana of Jordan Equipment. Beginning his career in 1971 with Babcock Equipment in Massachusetts, Dana was asked after 10 years to open a new store in Concord, new Hampshire. new Hampshire was dominated by an ESCO competitor in those days, but Dana built his team and, through hard work and determination, they were successful in getting ESCO into the marketplace. Today ESCO is widely used throughout the state.

In 1993, Dana and his wife Paula went to work for Jordan Equipment, an ESCO dealer since 1950. under Dana’s leadership, Jordan’s Pembroke store has been a leader in Super v® tooth system conversions, and now ultralok® system conversions.

“Our success has been due to our employees’ dedication and knowledge of the product,” Dana said. “They work as a team and have gained the trust of our customers by supplying them with the quality ESCO product.”

After the leake Award, vice President Mark Mallory addressed the assembled dealers on the topic of continuous improvement and its impact on sales. Engineered Products group President Cal Collins spoke to the dealers about key initiatives in 2010 and the importance of ESCO’s on-going commitment to Quality-value-Speed. group vice President Pat Fonner made closing comments and had the pleasure of presenting the dealer anniversary award plaques.

“Attendance was excellent at this year’s meeting, and almost every dealer expressed optimism about 2010,” noted Dave Poer, general sales manager. “Compared to last year when some dealers were concerned about survival, this year the talk was about being prepared for the growth in sales that is expected to gain momentum during the year.”

53rd Annual ESCO Dealer Executive Policy Meeting “look to the Future”

Mark Mallory and Pat Fonner present a 60 year award to Bill Gruver of Voto Manufacturing Sales Company.

Grant Kleckner presents the Gerry Leake Award to Dana Cabana of Jordan Equipment.

John, Jill and Kevin MacPherson proudly hold a 55 year dealer award.


Top North American Dealers in 2009

Carriere Industrial

Construction Machinery Industrial

Cutting Edge Supply

D.A. MacPherson

Equipment Sales & Service

GW Van Keppel

Interstate Equipment

Langer Equipment

Logan Corp

LSW Wear Parts

Modern Machinery

Nortrax Canada

Norx

Roland Machinery

Rudd Equipment

Sawtooth Supply

Severson Supply

Strongco

Tractor & Equipment

Trans Equipment

Years of Service

60 Years Voto Manufacturing Sales Co.

55 Years D.A. MacPherson, Inc.

35 Years Edward Ehrbar, Inc.

30 Years Rasmussen Equipment Company

25 Years Grogg Sales Texas Contractors EquipmentTractor & Equipment Co.

20 Years A.E. Finley & Associates Stribling Equipment Inc. Trans Equipment & Supply

15 Years Arnold Machinery Co. Waukesha-Pearce Industries, Inc. Wolverine Tractor & Equipment Co.

10 Years Balzer Pacific Equipment Co. Hill-Martin Corporation Sawtooth Supply Wear Parts and Equipment Co., Inc.

At left, Scott Laurence of Sawtooth Supply holds a 10 year award. At right, Jane and Ken Jones of Wear Parts and Equipment Co., Inc. with their 10 year ESCO dealer award.

At left, Dan Stracener and Steve McCondichie of Tractor & Equipment hold a 25 year dealer award. At right, Mike Green of Waukesha-Pearce Industries with Pat Fonner posing for a 15 year ESCO dealer award.

Bob Rasmussen and Randy Gallegos of Rasmussen Equipment Co. hold a 30 year dealer award.


Promotions and new Hires

Johan Nienaber Joins ESCO Holdings Pty Ltd. As Director of Sales – Australia

As of november 9, 2009, Johan nienaber became the first employee of ESCO Holdings Pty ltd., a new enterprise wholly-owned by ESCO Corporation. When the license agreement between ESCO and Bradken ends no later than 2011, ESCO Holdings Pty ltd. will assume sales and customer support for ESCO® products throughout the Australia, new Zealand and

Papua new guinea region.

Prior to joining ESCO, Johan served as general manager for mining for CQMS of Brisbane. He also worked 15 years for Bucyrus International, most recently as managing director for Australia. As ESCO Pty ltd.’s first employee, Johan will be tasked with developing ESCO’s business throughout the region.

Joe Weber Named Vice President of Turbine Technologies Group

Joe Weber has been named vice president of north American Operations for ESCO’s Turbine Technologies group (TT), reporting to Francois Baril, president. As such, Joe will be responsible for the facilities in Cleveland, Oriskany, Syracuse, Tempe and guaymas.

Joe earned a degree in industrial engineering from Oregon State

university and earned an MBA from Case Western Reserve university. He joined ESCO in 1983 and has served as general manager of ESCO Integrated Manufacturing, president of Turbine Technologies – Cleveland, and most recently vice president of uS Operations for the Turbine Technologies group.

John Thomas Named Vice President for Blades and Attachments Engineered Products Group

John Thomas has accepted ad-ditional responsibilities as vice president of Blades and Attach-ments, reporting to Pat Fonner, EPg vice president for global Sales & Marketing

John is charged with growing market share and profits for these products, as well as providing strategic oversight of the entire value chain from steel purchases

through production to the customer. He continues to have operational responsibility for ESCO’s plants in Bucyrus, Stein-bach, Covington and Phoenix.

Lu Yong Joins ESCO Asia PacificAs General Sales Manager – China

Effective January 4, 2010, lu yong joined the ESCO Asia Pacific team as general sales manager for China, reporting to Percy Chang, managing director. lu yong’s principal responsibility will be to provide leadership in growing sales to end users in China. This will involve establishing multiple distribution channels, strengthening customer relations and enhancing

commercial activities in the Chinese market.

lu yong earned a bachelor’s degree from Wuxi light Industry university, and an MBA from a joint program offered by Shanghai Financial & Economic university and Webster university. He has 15 years of sales, business development and management experience. He has worked for Ingersoll-Rand, the China Investment Co. ltd., and most recently was a business unit head for Bobcat China.


By John R. Howard

The last issue of the EDgE featured ESCO’s growing business in wear parts for bucket wheel excavators, those enormous mining machines that continuously

scoop-up coal with multiple buckets mounted on a towering wheel. Mines in germany, Poland and the Czech Republic have begun using buckets fitted with ESCO® tooth systems to remove tough overburden and mine vast amounts of soft lignite coal. The lignite is used to generate electric power for much of central and eastern Europe.

At RWE’s Hambach Mine in germany, the new bucket wheel excavator buckets with ESCO Super v® teeth that we reported on went to work in november. The initial trials showed very encouraging results: less machine vibration, greater cutting depth, less machine energy expended, material broken into smaller pieces, and increased overall output. Breakage in the buckets themselves, however, interrupted the trials, which will resume after repairs.

In Poland, the Polish Power Engineering group (PgE) installed ESCO teeth on buckets on a bucket wheel excavator at the Bełchatów Mine. now PgE is using ESCO teeth on excavators at two of its lignite-producing mines in western Poland.

Bucket Wheel Excavators Revisited

ESCO V59AD points provide penetration and toughness for trial buckets at RWE’s Hambach Mine in Germany.

View beneath the bucket wheel excavator in Poland.


ESCO SERVICE ANNIVERSARIESTHE EDGE MARCH 201022

Ronald Crate40 • ESCO Syracuse

Ron is a toolmaker working in the tool room at Syracuse. He was born in Syracuse and graduated from Fayetteville Manlius High School. Ron lives in Fayetteville and has two children.

Jaswinder Atwal30 • ESCO Nisku

Jaswinder is a welder at ESCO nisku. Jaswinder was born in nava Shahar, Punjab, India. His first job at ESCO was a grinder and has also worked in ladle preparation. Jaswinder's favorite thing about working at ESCO are the good people and friendly environment. Jaswinder and his wife Pardeep live in Millwoods, Edmonton, A.B. They have three children. He enjoys holidays and spending time with family.

Bounmy Chanthapraseuth30 • ESCO Nisku

Bounmy works as a wheelbretor operator in nisku. He was born in laos and attended laos High School. His first job at ESCO was in molding and has also worked in painting. What Bounmy likes best about working at ESCO is the friendly environment. Bounmy lives in Edmonton, A.B. He has two children and two grandchildren.

Ernie Waite30 • ESCO Syracuse

Ernie is a manufacturing leader of wax at Syracuse. His first job at ESCO was as a wax injector. Other positions he has held were ceramic lab technician and manufacturing leader of shelling. Before joining ESCO, Ernie was self employed as a farm hand. Ernie and his wife valerie live in Erieville, ny. They have two children and two grandchildren. In his spare time Ernie enjoys hunting, camping with the family, and having fun with the grandkids.

Dale Gehring30 • ESCO Portland

Dale is the director of lean enterprise development. Dale was born in Oregon City, OR. He graduated from Oregon City High and Oregon State university. His first job at ESCO was plant engineering design engineer. Dale has also worked as an industrial engineer manager, main plant inspection manager, Portland manufacturing manager, project manager of the Covington startup, and San Diego and Plant 3 site manager. What Dale likes best about working for ESCO are the people. Dale and his wife Maribeth live in Oregon City and have three children and three grandchildren. Dales enjoys home restoration, gardening, white water rafting, fishing, and spending time with family.

Charles Caldwell25 • ESCO Bucyrus

Chuck is a carbide embedder, floater at Bucyrus. Prior to joining ESCO Chuck worked for global Door Company manufacturing roll up truck doors. Chuck’s first job at ESCO was a stop setter on punch. He has also worked in carbide embedding, mill, heat treat, burner, punch and drill areas. Chuck’s cousin Brian works in the Bar Cell as a saw operator. Chuck and his wife Sharon live in nevada, OH and have two children. When he’s not working Chuck enjoys watching nASCAR, cutting firewood, cooking, watching high school football.

Leo Tullio45 • ESCO Port Hope

leo was born in Italy and works in the Port Hope shipping department. He first joined ESCO as a yard helper and has also worked on the burning machine. leo and his wife Angelina have two daughters.

Marcia Feichtinger30 • ESCO Port Coquitlam

Marcia is a system analyst for Port Coquitlam. Before joining ESCO, she was a programer for Canadian Forest Products. Marcia first job at ESCO was a programer. What she likes best about working for ESCO are the people. Marcia was born in new Westminister, B.C. and graduated from British Columbia Institute of Technology in Computer Systems. Marcia and her husband norbert live in Port Moody, B.C. and have 2 children (both recipients of ESCO Scholarships). When not working Marcia enjoys backpacking, snowshoeing, kayaking, and spending time with family and friends.

Robert Chance25 • ESCO Bucyrus

Bob works as a mill operator. Bob was born in Bucyrus, OH and graduated from Wynford High School. Before he joined ESCO Bob worked for Crawford nursery for 15 years. Bob's first job at ESCO was a shear operator. Bob's son Shawn also works for ESCO as a team leader. He says what he likes most about working at ESCO is his fellow employees. Bob and his wife Phyllis live in nevada, OH. They have four children and fifteen grandchildren. In his spare time Bob enjoys watching his grandkids play sports and traveling.

Dan Chandler25 • ESCO Cleveland

Dan works as a welding engineering technician in Cleveland. He was born in Painesville, OH and graduated from Perry High School. Before joining ESCO, Dan worked in the food service industry. Dan’s first job at ESCO was working in the foundry. What he likes best about working at ESCO is being in a safe place. Dan and his wife Brenda live in Madison, OH and have two children. Dan’s favorite past time is collecting old motor bikes, toys, and 50’s/60’s memorabilia.

Janet Dusseau25 • ESCO Syracuse

Janet works as an assistant controller. She was born in Syracuse, ny, graduated from West genesee High School and Auburn Community College. Janet's first job was working at her father's ice cream stand at 15. She first joined ESCO in accounts payable and has also worked in receivables, general ledger, and payroll. What Janet likes about working at ESCO is the people she works with and doing something worthwhile. Janet lives in Weedsport, ny and has one child and one grandchild. In her spare time she enjoys sewing, gardening, and spending time with family.

Ralph “Bud” McCarthy25 • ESCO Bucyrus

Bud is a CnC burner operator in Bucyrus, OH. Bud was born in new Washington, OH and graduated from Buckeye Central High. He worked as a service manager for Stephens Olds & Cad before joining ESCO. His first job at ESCO was as a stop setter. What Bud enjoys most about working at ESCO are his coworkers. Bud and his wife Teresa live in Bucyrus, OH and have three children and one grandchild. In his spare time Bud likes hunting, fishing, and watching sports.

ESCO SERVICE ANNIVERSARIES THE EDGE MARCH 2010 23

John (Phil) Hoice20 • ESCO Portland

Phil is an account manager II in Portland,OR. He was born in norfolk, vA, graduated from Sandia High School in Albuquerque, nM where he also attended the university of new Mexico. Prior to joining ESCO as a inside sales representative for the former Engineered Metals group/SteelDistribution group he worked 11 years in salesfor ESCO dealer Plateau Supply in Albuquerqueand Farmington. Phil and his wife Julie live inBrush Prairie, WA and they have five children and 10 grandchildren. Phil enjoys golfing, fishing and chasing after grandkids in his spare time.

Eric Draper20 • ESCO DM

Eric is the branch manager/sales manager for Farmington, nM. He was born in Salt lake City, uT and graduated from Cottonwood High School where he attended the university of utah. Before Eric joined ESCO he worked for Industrial Parts Depot (IPD). His first job at ESCO was district manager and has worked as a sales manager, and ESCOSuPPly branch manager. Eric enjoys the people, customers, opportunities, and learning the retail side of ESCO's business. Eric and his wife Karla have one son and live in Mesa, AZ.

Dean Lecy20 • ESCO Cleveland

Dean was born in Redwood Falls, Mn. He graduated from Charles F. Brush High and Cuyahoga Community College with a degree in Mechanical Engineering Technology. Dean is a maintenance technician in Cleveland. Before joining ESCO, Dean served 2 years in the Army. Dean’s son, Eric also works for ESCO in the maintenance department. Dean and his wife JoAnn live in Mentor-on-the-lake, OH. In his free time Dean enjoys golfing and fishing.

Bagicha Rai20 • ESCO Nisku

Bagicha was born in laliya, Punjab/India. In addition to his current position as a wheelbrator operator, Bagicha has also worked as a fork lift driver, tumble blast, grinding, and painting. Prior to ESCO he worked in a restaurant as a cook. Bagicha and his wife Aman gurpreet live in Millwoods, Edmonton, AB and have two children. Bagicha enjoys holidays and spending time with his family.

Gurnam Malhi20 • ESCO Nisku

gurnam is a welder in nisku. He was born in Kalabakra, Punjab/India and went to Kalabakra High School and Tanda College in Punjab, India. When gurnam first joined ESCO, he started as a grinder and also worked in arc, painting, and cutting. His two brothers, Harbhajan Malhi and Satnam Malhi also work for ESCO in the grinding department. gurnam and his wife Sukhjit live in Milwoods, Edmonton, AB and have three children. In his free time he enjoys spending time with family, playing soccer, and going to temple for prayer.

Allen Robinson25 • ESCO Portland

Allen is an IT application support manager. He was born in Fort Smith, AR and grew up in Orange, TX. Allen has a B.S. in Engineering Technology from the university of Houston and an M.S. in Computer Science from California State university. When he first joined ESCO he worked in inside sales for the former Engineered Metals group (EMg)/Steel Distribution group in Houston. Allen's other positions include: operations manager, EMg for Houston and Hayward, CA, group capital equipment manager, EMg, IT application developer for EMg, and IT manager, EMg. Allen and his wife Patricia live in lake Oswego, OR. They have two children.

Keith Naufzinger25 • ESCO Bucyrus

Keith was born in Bucyrus, OH. He works as a drill operator. Before joining ESCO Keith worked at Timken and a Ford dealership as a mechanic. Keith's first job at ESCO was a punch operator and has also worked on the grader blade line. Keith and his wife Donna live in Bucyrus, OH. They have two children and five grandchildren. Keith enjoys collecting old Cushman Motor Scooters, old wooden wheel bicycles, Model A Ford cars, American Flyer toy trains, and learning how to play golf.

Alex Rizzuti20 • ESCO Portland

Alex is the dimensional/gage engineering team leader in Portland. He was born in Portland, graduated from laSalle High and received his BS in Mechanical Engineering from Portland State university. Prior to joining ESCO as a dimensional gage engineer, Alex worked for Tektronix. What he likes best about his job are the people he works with. Alex lives in Milwaukie, OR and enjoys spending time with family and friends.

Wayne “Homer” Miller20 • ESCO Syracuse

Wayne is a straightener in small structures 2 at Syracuse. He was first hired as a brown wax machine operator. Wayne was born in Oneida, ny and graduated from Stockbridge valley Central High. Before joining ESCO Wayne was in the u.S. Marine Corps. Wayne enjoys the everyday challenge of working at ESCO. Wayne and his wife Dawn live in vernon, ny and have three children. In his spare time he enjoys watching sports and the outdoors of central new york.

Barry Tukendorf25 • ESCO Port Hope

Barry works in the Millwright-Maintenance Department. He was born in Port Hope, Ontario. Before joining ESCO Barry worked on his families tobacco farm. Barry's first job at ESCO was a grinder and has also worked in the fab shop, machine shop, and arc air. Barry and his wife Julie live in Port Hope and have two children. In his spare time Barry enjoys biking and renovating their home.

Edward Buescher20 • ESCO Portland

Edward (Ed) is a manufacturing engineer for plant 3 in Portland, OR. He was born in Indiana and graduated from Bellmont High School. Ed has a BS in Mechanical Engineering from Purdue university and a Masters in Engineering Management from Portland State university. Before joining ESCO Ed was a construction framer. His first job at ESCO was a methods engineer at plant 1. He lives in Warren, OR and has three sons. In his spare time he enjoys motorcycle and ATv riding, hunting, fishing, and camping.

Service anniversaries not pictured

35 yearsJames E. Stevenson

(Newton)

25 yearsKathie Lea Stenson

(Phoenix)

ESCO CORPORATION

2141 NW 25th Avenue

Portland, Oregon 97210-2578

United States of America

ESCO is preparing to highlight the Ultralok® tooth system and other value-added products at the upcoming BAUMA

Tradeshow in Munich, Germany April 19-24, 2010.

PRESORTED STANDARD

US POSTAGE

PAID

Portland, Oregon

Permit No. 382

Documents

IN THIS ISSUEmines, two copper smelters, a copper rolling mill, wire rod plant and a number of auxiliary businesses. KgMH is the ninth largest producer of copper and third largest