Md appe spain 16 01-2015

Aon Risk Solutions Global Risk Consulting Risk Control & Engineering

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Material Damage Inspection Report

APPE

Casarrubios del Monte (Toledo) - Spain

January, 2015 Prepared by: Beatriz Martínez Del Campo Senior Consultant Global Risk Consulting

APPE Casarrubios del Monte (Toledo) - Spain

Aon Risk Solutions | Global Risk Consulting | Risk Control & Engineering

Table of Contents 1. EXECUTIVE SUMMARY 1

Fire 1 Business Interruption 1 Perils 1 Security & Money 1

2. LOSS ESTIMATE STUDY 2 Fire and Business Interruption Loss 2

3. FIRE (INCLUDING EXPLOSION) 4 Location and Exposures 4 Construction 4 Occupancy 6 Special Hazards 9 Site Services 10 Fire Protections 14 Management Planning and Control 17 Loss Experience 17

4. BUSINESS INTERRUPTION 18 Production and Process Flow 18 Market and Trends 18 Dependency 18 Recovery 19 Business Continuity Management 19

5. SPECIAL PERILS 20 Wind and Water 20 Impact 20 Riot & Malicious 20 Others 20 Loss Experience 20

6. SECURITY 21 Contents 21 Physical 21 Electrical 21 Guards/Patrols 21 Management & Control 21 Cash Handling & Holding 21 CCTV 21 Access Control 21 Loss Experience 21

7. SITE PLAN 22 8. PHOTOGRAPHS 24



Disclaimer "This report and any recommendations in it are based on certain observations made by us and/or from information supplied to us from sources which Aon believes it is entitled to assume are reliable. Conditions may have changed since our survey and/or the preparation of this report, and the reader must take this into account when acting in reliance on it. It is not, and is not intended to be, exhaustive or conclusive, covering every hazard or risk potential, nor to guarantee compliance with any statute or regulation, nor does its preparation and submission to insurers relieve you of your obligation to make full disclosure of all material facts to your insurers. It is offered to assist you in your assessment and/or management of risk. If you are in any doubt as to whether a fact is material and should be disclosed to your insurers, you should promptly discuss this with your insurance broker, if at all possible prior to the binding of the insurance contract. "

Senior Consultant Beatriz Martínez Del Campo For and on behalf of Aon Risk Solutions Global Risk Consulting 23 January 2015

Confidentiality Clause

“The information contained within this document is confidential to both Aon Risk Solutions and APPE and has been produced solely for the purpose of our discussions regarding the latter's insurance programme. The contents may not be reproduced or disclosed to any third party without the prior written approval of Aon Risk Solutions and Aon Risk Solutions disclaims any liability whatsoever to any such third party. Please also read the important notes above". Copyright - Aon plc 2015.



Site Visit Details

Group Name: APPE

Subsidiary Name: Artenius Pet Packaging Iberia, S.A.APPE

Site Address: Avda.Constitución s/n – Parcelas 290-293, P.I. Monte Boyal

45950 Casarrubios del Monte – Toledo (Spain)

Occupancy: Manufacturing of monolayer PET preforms and PET bottles.

Conferred with: Antonio de Molina – Engineering Responsible

Site Contact Details:

Prepared By: Beatriz Martínez Del Campo

Consultant’s Contact Details: Aon Risk Solutions Global Risk Consulting – Risk Control & Engineering

Office: Aon Spain Rosario Pino, 14-16 28020 Madrid - Spain

Mobile: 618 944 261 E-mail: [email protected]

Date of Visit: 16th of January, 2015

Resurvey Due Date:

Document Ref: MD APPE Spain 16-01-2015


Aon Risk Solutions | Global Risk Consulting | Risk Control & Engineering Page 1

1. Executive Summary

Fire APPE Toledo is a company dedicated to the manufacture of monolayer PET preforms.

The activity takes place in several units that form a single area. All are adjacent and are interconnected; there is no compartmentalization within the building. Over 75% of the total area is dedicated to finished product storage. Non-combustible materials have been used in the building construction.

The protections are based fire extinguisher, hose reels, hydrants with broad coverage (almost 100% of the area) and fire detection in all areas. The new part of the store (enlargement) is provided with automatic sprinklers. There is a double water reservoir and two pump groups.

Facility maintenance and housekeeping are considered adequate. It is considered that protective measures against fire, given the occupancy, could be improved in some aspects, such as partitioning between warehouses and production, sprinkler systems, etc.

Due to the lack of fire compartmentalization and automatic fire protection, MPL and MFL are considered 90%.

Business Interruption The nominal capacity of the plant is 2,100 million preforms and 80 million bottles. The production during the year 2014 amounted to 1800 million preforms, 21 million bottles and 6 million other different types of pots (containers).

The majority of the production machines are exchangeable, which makes the production more flexible and could reduce the production loss in case of any line to be destroyed. There are reportedly no specific bottlenecks regarding the production machines.

All the products could be produced in similar lines in other Artenius PPE production sites around Europe. If the moulds were destroyed during the incident, it would take 10 weeks to build new ones. Raw materials (PET) are mainly received from different suppliers and they have a wide range of clients. Contingency Plan has not been developed. We consider a reconstruction time of the plant between 12 and 18 months.

Perils There are not significant exposures from adjacent industries (more than 20 m) and the exposure to CatNat issues is considered Low in this area.

Security & Money The attractiveness of the contents, raw materials and finished products, is considered low.

The site is totally fenced and there is a CCTV system covering all the access points and some indoor areas. Access control systems are present for employees and visitors.

The office building is protected by volumetric intrusion detection and magnetic contacts. The maximum amount of cash is limited to 2000 € and 3000 dirham and it is stored in a strongbox.



2. Loss Estimate Study

Fire and Business Interruption Loss

Maximum Probable Loss

Property Loss Scenario

Due to the lack of fire compartmentalization, a fire in an area without automatic fire protection could spread throughout almost all the buildings.

Percentage 90

Business Interruption Scenario

In the described scenario, the stoppage would be total for at least 12 to 18 months.

Maximum Foreseeable Loss

Property Loss Scenario

Same scenario as MPL.

Percentage 90

Business Interruption Scenario

Same scenario as MPL.



Loss Estimate Definitions (Material Damage & Business Interruption)

Estimates of loss potential at each location are provided on the basis of the undernoted definitions and the

occurrence of a fire and/or explosion as potentially the most damaging.

1. Maximum Probable Loss

An estimate of the largest loss to be expected under normal circumstances, excluding a

catastrophic condition, with all available means of protection functioning as intended.

2. Maximum Foreseeable Loss

An estimate of the largest loss which may be expected under adverse circumstances, excluding a

catastrophic condition, but with protection equipment not working and no response from private

sources, with damage limited only by spacing of the structures, by a good blank fire wall or by lack

of continuity of combustibles. The capabilities of the public fire department can be considered,

keeping in mind delayed notification or response, adequacy of water supplies and accessibility.

CATASTROPHIC CONDITIONS which should be excluded from consideration in these loss

estimate definitions:

(a) Explosions resulting from massive releases of flammable vapours of gases, which might

involve large areas of the plant.

(b) Tank or vessel failures resulting in flammable liquid fires involving large areas of plant.

(c) Pressure rupture of process equipment resulting in widespread missile damage.

(d) Detonation of massive explosives.

(e) Seismic disturbances.

(f) Tidal waves or other natural phenomena.

(g) Falling aircraft.

(h) Terrorism

Where catastrophic risks exist, these should be defined and a separate loss estimate provided.



4. Fire (including Explosion)

Location and Exposures The site is located in an industrial area in the outskirts of the village of Casarrubios del Monte, Toledo, Spain. The nearest buildings to APPE Iberia are located more than 20m away:

North: Old factory without activity (20 m). South: Wood doors factory (25-30 m). East and West: Road and open fields.

Construction Plot of land: 41,363 m2. The first building (production and old warehouse) was erected in 1997. The last extension of the warehouse was built in 2006. The production area was not extended. The built area is approximately 22,492 m2. (Production 4,769 m2. Warehouse 17,500 m2).

Offices Two floor levels The built area is 1,348.84 m². (2 x 667.42 m²) Built in 1997 • Structure: Non-protected steel frame • Roof: Concrete. • External walls: Concrete, bricks and glass • Internal walls: Bricks

Production (injection) Two floor levels: Ground floor 2,860 m2 (production area, injection moulding machines and blow moulding machines) and mezzanines 1,144 m2 (Hoppers/drying area).

• Height: 10.5 m • Structure: non- protected steel frame. • Roof: Steel deck roof insulated with fibreglass. • External walls: 2 meters of concrete blocks plus fibreglass metal

sandwich panels

Warehouse The warehouse is adjoining to the production area. The wall between production and storage was built with brick and concrete. There aren´t fire resistant doors installed on the wall openings. The warehouse was erected in three stages: first 8,580 m2, second 1979 m2 and third 6,766 m2.

• Height: 7.5 m. • Structure: non- protected steel frame • Roof: Steel deck roof insulated with fibreglass • External walls: 2 meters of concrete blocks plus fibreglass

metal sandwich panels.



The three areas inside the warehouse are also separated by 2 meters of concrete blocks plus fibreglass metal sandwich panels. There aren´t fire resistant doors installed on the wall openings.

The blow moulding area is located inside the warehouse. This area has been isolated with sandwich panels with fibreglass isolation for the walls and PUR for the roof.

Adjoining to this building there are other constructions. They were erected in 1997: - Garage and spare warehouse: 408 m². - Technical equipment: 276 m2 - Oils: 28.13 m2 - Gridding units: 318.75 m2 - Transfer room: 55 m2 - Maintenance of forklift trucks: 85 m2 - Warehouse office: 42 m2 Other buildings: - Transformers: 297 m2 - Tanks and fire pumps: 232 m2 - Access control room: 6 m2 Main fire compartments: There are several buildings inside but all of them are a single fire sector. There aren´t brick walls to divide the plant in fire sectors. There aren´t fire resistant doors installed on the wall openings between the warehouse and the production area. 75% of surface is occupied by the storage and 25% by production. Reportedly, there are non-combustible materials in the buildings but PUR panels in blow moulding area.



Occupancy Artenius PET Packaging specialises in the manufacturing of monolayer PET preforms using 18 injection-moulding machines. Additionally, using two blow moulding machines (Sidel and Kosme) and a single-stage machine (Nissei 70DPH), PET bottles are manufactured. The products are mainly used for the packing of beverages, food and personal care. Staff: About 87 people are employed on this site, with another 59 more workers located in client’s factories (blow moulding machines directly placed in the client’s factory). Operations take place in a 5 shift system, 24 hours a day, 7 days a week and 363 days per year (officially, they only close in 25th of December and 1st of January, although they also tend to close one more week during Christmas, which is used to carry out maintenance works). Raw materials, intermediate and ancillary products: The main raw material is PET resins; they use 60,000 ton/year. They have several suppliers for raw materials. Also dyes and barrier material are used, both non-combustible. Finished goods: 1800 million of PET preforms, 21 million bottles and 6 million other different types of pots (containers) per year (2014). Process The production process starts with the delivery of the raw material, being PET resins. These are delivered by truck and stored in 8 outdoor silos (8x150 m3), with the total storage capacity being some 1.000 t. From the silos, the resins are transported to the drying units through a mixing station by means of vacuum transport. The vacuum pumps are situated in the same area as the mixing and drying units, next to the silo area in two mezzanines in the production area. For the transport of resins, mainly steel pipes or steel flexible connections are used. Rarely (due to a break or an incident, for instance) plastic flexible connections can be used. The drying units are electrically heated and are equipped with a temperature monitoring system and single thermostatic protection. The material is treated at about 180ºC for 6 to 8 hours. From the drying unit the resin is fed to the injection moulding machines, with adding of dyes (either solid or liquid) on top of the machine. The injection moulding process takes place between 280 and 290ºC, with the machines heated electrically. There are 18 injection moulding machines (Husky). The operating pressure exceeds 100 bars and can go up to 180 bars. The additive (barrier material), stored in 200 litres metal drums, is aspired directly at each machine. The preforms are in every machine transferred to a robot plate where they are cooled down using an ice-water circuit, and packed in metal boxes or in cardboard boxes.



Additionally, APPE Iberia has two blow moulding machines and a single-stage machine (which performs the injection and the blow moulding for short series).

For the blow moulding activity, high-pressure compressor units are situated in the technical rooms (operating pressure of 40 bars). There are about 35 moulds located in the injection area, with an approximate replacement value and time of 400,000 € and 10 weeks. The moulds are stored in a specific area, within the production area.

A grinding unit is present in the plant for regrinding their own defective material in order to take advantage of it. The grinder has no specific protection, but the dust filter has a pressure relief systems.

Warehouses Storage of main raw material (PET pellets) takes place in 8 outdoor silos of approximately 125 t each. Apart from those silos, there are also 18 small drying units inside the plant for daily feeding the injection machines and some big-bags of raw material in the warehouse.

Packing materials are stored also in the warehouse stored in a block storage configuration with storage height up to 5-6 metres).

The dyes are stored in metallic containers (25 l), inside the warehouse, up to 2 levels high.

Finished products (preforms) are packed in metal boxes or in cardboard boxes, and are directly stacked in the warehouse, up to 5 levels high (6 meters). Bottles are packed in plastic pallets, piled up to 4 levels high (6 meters) and then film wrapped. The maximum storage capacity is over 150,000,000 preforms. The products are grouped in compact islands of about 20x20 m.



Idle wooden pallets are stored outside the buildings. In general, the storage is separated from buildings.

Hydraulic oils are stored in a specific isolated room. There are currently 8 IBCs plastic containers) stored with a total quantity of 5,000 litres. The room is provided with containment for possible spillages of 1 m3.

Adjoining the obsolescent machinery warehouse there is a room to store dangerous wastes (oils, containers, fluorescent lights, etc.). All the liquid wastes are provided with appropriate spillage retention containment.

Finally, there is a small outdoors isolated area near the utilities area which has been set aside to store empty additives barrels (200 l metal drums).



Special Hazards Dust There are four fabric filters where dust generated during PET pellets transport is collected. One of these is located in the transfer room, other two on the mezzanines (dryers and hoppers area) and the last one in the grinding unit. The fabric filter located in the grinding area has an explosion vent ducted to the outside.

Packaging, Warehousing and High Piled Storage PET silos: There are 8 outdoor silos (150 m3 each one), with the total storage capacity being some 1.000 tons. Earthing connection devices are installed and used, interlocks are not present. The silos are not equipped with explosion vents.

Packaging:

Packing materials are stored also in the warehouse, stored in a block storage configuration with storage height up to 5-6 metres). Extinguishers, hose reels and fire detection are available.

High Piled Storage:

Preforms are packed in metal boxes or in cardboard boxes, and are directly stacked in the warehouse, up to 5 levels high (6 meters). Bottles are packed in plastic pallets, piled up to 4 levels high (6 meters) and then film wrapped. The products are grouped in compact islands of about 20x20 m. A sprinkler system was installed in 2006 covering the last extended warehouse area (approx. a third of the warehouse total area): • 12 mm/min/m2 @ 185 m2 • K-115, fast response, 141ºC

The design is not considerate adequate for the storage height.



Site Services Electricity Electricity is supplied through a single aerial 45 kV feeder. The low voltage installations are mainly centralised in a specific room (near the transformers, and separated from building 5m). The room is equipped with automatic fire detection and an automatic CO2 flooding system.

Transformer station #1

Transformers Location Use Load Ratio Capacity Coolant

Main Isolated substation outdoors 45/15 kV 8 MVA Oil

Secondary Isolated substation outdoors. Separated by walls 15/0.4 kV 5x2 MVA Oil

An oil analysis takes place on an annual basis (including gas and oil moisture analysis). There is a spare transformer, 2.000 kVA and it is planned to buy an 8 MVA spare transformer. Fire protection system: automatic atomizer water sprinklers.

Emergency power generator: No. IR Thermographies: Annually to main electrical equipment (high voltage and low voltage) by external maintainer. APPE Iberia has recently bought a thermographic camera and they make thermographies continuously. An explosion protection document, according the ATEX directives, was carried out in 2013. Lightning protection: Yes (3). Full coverage. Annually maintained and discharge counters annually checked.



Single-line diagram

Heating and Cooling Domestic type boilers used for non-productive buildings heating system.

Water, Gas, Air, Refrigeration, Cooling, Oils, Effluent Treatment etc. Water: The site is fed from the public main. The line supplies directly the process and, also, to a 575m3 tank, of which 30m3 are dedicated to production and 545m3 to fire protection. Industrial gases: The bottles of industrial gases (technical gases) which are used for laboratory and maintenance purposes are adequately stored inside an outdoor shed. The bottles are fixed to the wall. There are a few butane gas bottles for cooking, stored inside an outdoor area located in the maintenance area. Cooling: Two closed loop systems with chilled water for cooling purposes: - Moulding (water 10ºC). - Hydraulic oil and compressors (water 30ºC). Cooling units:

- 1 x 1203 KW – R134A. - 1 x 508 KW – R134A. - 2 x 899 KW – R134A. - 1 x 915 KW – R134.



Several water pumps for cooling: - 4 x 110 KW each, for moulding. One of them is in spare. - 5 x 30 KW each, for evaporators. One of them is in spare. - 3 x 45 KW each, for hydraulics closed loop. One of them is in

spare. - 2 x 15 KW each, for compressors. One of them is in spare.

Two cooling towers, 2 x 1600 kW. This machinery is located in technical rooms (outdoor area) closed to main building.

Compressors: - One high pressure (40 bars) compressor for the blow moulding machines, 235 kW. A new high

pressure compressor (40 bars) has been recently bought as spare, this compressor is on the premises but it has not yet been installed.

- Five low pressure (10 bars) compressors for the injection moulding machines, 5x90 kW:

2 Atlas Copco GA90 1 Atlas Copco GA90SD 2 Compare 6000N

- One very low pressure (6 bars) compressor for cooling the preforms, 75 kW.

The compressors are located in a technical room adjoining the main building.

Internal transport – Battery Chargers: The battery chargers are located within an outdoors specific room or in the compressors room.

AGV,s (Automatic Guide Vehicles) have been recently installed for the internal transport. These vehicles use lead gel batteries with no maintenance and negligible emission of gas. They also use an automatic battery change, where the battery replacement procedure is automatic, occurring with no operator in attendance.

Hydraulic systems The oil reservoir of each injection machine contains some 1000 to 2000 l hydraulic oil.



Process/computer monitoring The computer system is almost fully replicated (85%) on an external server. The computer room is protected with automatic fire detection and automatic FM-200 flooding system. They make daily, weekly and monthly backups. These backups are stored in a fireproof cabinet, located outside the computer room. Sewage treatment Just purge water from the refrigeration towers which is discharged into the industrial sewerage of the industrial estate. Discharges controls performed every six months. The control point is located in the car park. Certifications ISO 9001, 14001, 22000 & BRC.



Fire Protections Automatic Sprinklers A sprinkler system was installed in 2006 by PACISA covering the last extended warehouse area (see below diagram). • 12 mm/min/m2 • 185 m2 • K-115, fast response • 141ºC

Sprinkler Impairment Procedure Currently, sprinkler impairment procedure is not available.

Other Extinguishing Systems • Gas flooding system in the IT room. One bottle of 25 kg of FM-200. • Automatic atomizer water sprinklers in the power transformers area. Alarm check valve: Viking 4”

Valve VK 2008 (09540) 4” DN 100 Delage VLV E-1 // FLG-CRV. • Gas flooding system in the MLVS room. Six bottle of 54 kg of CO2.

Detection Systems and Alarms Full coverage (updated in 2014). Monitoring is local, in two points: control panel in the shift’s leader office (24h occupied) and in the stand guard. In case of detection, they call to several mobile phones of responsible persons of the plant. There are manual pull stations all over the plant.

Hand Appliances Extinguishers An adequate number of powder, water and CO2 fire extinguishers are present throughout the plant. All fire extinguishers are quarterly checked by an external company.



Hose reels There are fire hoses everywhere excepting in the injection area (including the mezzanine over it where the dryers are located). They are fed by the fire water ring main and are checked quarterly.

Water Supplies Hydrants Full coverage with 10 dry-barrel type hydrants around the building. Some of them have two 70 mm water outlets plus another 100 mm outlet, and some others have two 45 mm plus one 70 mm outlets. There are 6 auxiliary material cabinets (within less than 40 m distance from each hydrant).

Water supply 6” water ring main (excepting in the extended warehouse area, where it is 8”) with several underground shut-off valves.

Two fire water tanks:

• Buried tank: 575 m3 (30 m3 for cooling towers and 545 m3 for fire protection measures).

• 560 m3 (installed in extension of warehouse).



Each tank feeds two fire pump sets:

• Set 1 (connected to the 575 m3 tank) -- 1 x diesel pump; Itur 145 kW; 300 m3/h; 9 bar -- 1 x electric pump; Itur 180 CV; 300 m3/h; 9 bar -- 1 x jockey; Itur 5.5 CV, 6 m3/h

• Set 2 (connected to the 560 m3 tank) (it is not independent from the system 1. It is to increase its capacity)

-- 1 x diesel pump; Nijhuis 100 kW, 228 m3/h; 9.4 bar -- 1 x jockey; Nijhuis 4 KW, 6 m3/h, 10 bar

According the external company, the start sequence of the pumps is:

• Jockey2: Starts at 7 and stops at 8.5 bar • Jockey1: Starts at 6.5 and stops at 7.5 bar • Electric1: Starts at 5.4 bar • Diesel1: Starts at 4 bar • Diesel2: Starts at 4 bar

Fire Team Private fire brigades: There is an Emergency manager and a First response team that consists of at least 2 people per shift. There is no emergency back-up team. Training: The emergency team get biannual training (also with “real” fire). Moreover, training sessions are organised for new employees. Fire Brigade The nearest public fire brigade is located in Navalcarnero, at some 15 km from the site, resulting in a response time of less than 15 minutes.

Smoke Venting System There are no smoke venting systems



Management Planning and Control Maintenance Programme Maintenance Own preventive maintenance (10 people) carried out in both injection and blowing sections while maintenance of auxiliary services (compressors, transformers, etc.) is subcontracted to external specialized subcontractors. Maintenance is done according to fixed schedules, with a series of maintenance jobs regularly done. The maintenance department operates in a 5-shift system. All maintenance activities are registered and controlled by specific software GMAO. Spare parts are stored in the maintenance area. The cooling loop, at least, has a spare water pumps. Moulds are cleaned using dry ice and small parts are ultrasonically cleaned.

Fire protection equipment: Quarterly by a specialized external company (Inmarepro) to all the fire fighting systems. They perform yearly tests to the fire pumps, delivering the performance curves (performance curve for the Diesel 2 pump was not reported in 2015). The performance curves for the pumps (Electric Pump and Diesel 1 – 2015 report) comply with the Spanish standards. The fire pumps are started every week by APPE maintenance staff.

Self Inspection Self-inspections are carried out daily by maintenance staff to the fire protection equipment. There is a formal shift handover procedure, with an overlap of at least 15 to 30 minutes for the team leaders. Housekeeping conditions were found to be good.

Emergency Organisation Private fire brigades: There is an Emergency manager and a First response team that consists of at least 2 people per shift. There is no emergency back-up team Training: The emergency team get regular training (also with “real” fire). Moreover, training sessions are organised for new employees. Emergency drills: Semiannually per shift (ten per year). A written hot work permit form is in force and well applied including control rounds and sign-off procedures.

Fire Risk Assessment Periodic reviews by the engineering team of insurance company.

Loss Experience

Date Incident Cost

No significant



5. Business Interruption

Production and Process Flow Turnover (2014): 110 MM €. Gross Profit: 5.270.000 €. Seasonality: High from April to August, gradually falling during the colder months (with the exception of a peak at Christmas).

Market and Trends Artenius is a leading global packaging manufacturer offering a broad range of plastic, fibre, metal and glass packaging products, along with packaging-related services. The exceptional properties of PET (excellent shine, transparency, high resistance to impact, low permeability to gases and dimensional stability) guarantee the requirements demanded of packs intended for preserving and transporting products for foodstuff use. Moreover, its small weight implies large savings in transport, and fundamentally user safety in the event of possible breakage. Artenius has production plants in Spain, Germany, France, Belgium, UK, Poland, Turkey and Morocco. APPE Iberia, S.A. was originally built in 1997. Mid 2002, the Amcor-group acquired the APPE Iberia plant. From that moment, the site was known as Amcor PET Packaging Europe. In 2007, the Amcor group was acquired by the Spanish group La Seda de Barcelona (LSB). As we were informed, APPE Iberia plant is likely to be bought by an external company. The goods produced in this plant are mainly dedicated to, after being blown moulded, bottle drinks, but also fresh and frozen food, dairy products, cleaning products, etc. About 1800 million preforms are manufactured per year. 2100 million preforms are the total annual maximum capacity of the plant. A part of these preforms are blown to bottles on site (20-25 million bottles).

Dependency

Inter-Group: Reportedly, there is no interdependency with La Seda Group or APPE Group in terms of raw material supply (PET) or clients.

Buildings: Standard buildings.

Machinery:

The majority of the production machines are exchangeable, which makes the production more flexible and could reduce the production loss in case of any line to be destroyed. The main differences between machines are caused by the number of cavities and the clamping force.

There are reportedly no specific bottlenecks regarding the production machines.



Utilities:

Process is not critical, so in case of power outage there should not normally be any more problems but the loss of the intermediate production. Anyway, there is a spare 5MVA transformer and it is planned to buy a spare 8MVA transformer.

The 40 bar compressor was one bottleneck regarding the auxiliary equipment but a new 40 bar spare compressor has been acquired (not yet installed). Anyway, it is only used to carry out the blow moulding operations, which could be perfectly done in third party companies.

External:

Main clients: Grupo Leche Pascual (Main client: 11% turnover); García Carrión; Scheweppes; Orangina Scheweppes; Persan; Font Bella & Lanjarón; Pepsico; Sumol Compal;…

Main suppliers: CEPSA (Main supplier: 15%PET), Novapet, Plastiverd, LSB, LOTTE,… As there is a quite wide market for PET material, it would be easy to APPE Iberia to buy it from other suppliers.

Recovery We consider a reconstruction time of the plant between 12 and 18 months. All the products could be produced in similar lines in other Artenius PPE production sites around Europe if the moulds in this factory were saved. If the moulds were destroyed during the incident, it would take some 10 weeks to build new ones. Moreover, it would be possible to produce all the products in third party companies. There is a stock of raw materials (PET) for at least two weeks during low season and one week during high season. There is a stock of PET preforms for at least three weeks during low season and two weeks during high season. With reference to recovery potential measures that could be taken in conjunction with other plants of the Group: • Some moulds for very common products could be shared between different APPE plants. • In case of a serious loss, some other plants could support them by producing part of the preforms.

Anyway, considering the huge production volume, the other plants would only be able to recover around a 25% of the total production of this plant.

• In the case of blown bottles, it is more difficult because there are very few plants of APPE group to produce bottles (but there are third party companies being able to do it).

Business Continuity Management As we were informed, The La Seda de Barcelona Group is currently developing a general Contingency Plan for all his PET injection factories.



6. Special Perils

Wind and Water Flooding Exposition: Very low (nearest river > 4.5 km). Experience: No. Water spillage Exposition: Low. Experience: No. Wind Exposition: Medium. Zone 1 according Munich Re: 81 km/h to 120 km/h probable maximum. Experience: No. Snowloading Exposition: Low. Experience: No. Hailstorm Exposition: Medium. Experience: No.

Impact Air crash Exposition: Low. Aerodrome for small planes within 5-10 km. Experience: No.

Riot & Malicious The exposure to Riot and Malicious is considered Low in this area.

Others

Loss Experience

Date Incident Cost

No experience. No incidents.



7. Security

Contents The attractiveness of the contents, raw materials and finished products, is considered low.

Physical The site is totally fenced:

-- Front area: 1 m concrete base + metallic lattice up to a total height of 3 m. -- Rear area: 1 m concrete base + wire mesh up to a total height of 3 m.

Electrical Volumetric intrusion detection and magnetic contacts in office building.

The alarm signals are transmitted to an external company. In case of alarm signal, they call to several mobile phones of responsible persons of the plant.

Guards/Patrols There is a security guard from 8 a.m. to 8 p.m. on the stand guard in order to control access to the plant. During idle periods there is a security guard 24 hours per day. For its part, the industrial estate has a 24/7 security service with ongoing rounds by car.

Management & Control There are a limited number of people with access to the plant during idle periods.

Cash Handling & Holding The maximum amount of cash is limited to 2000 € and 3000 dirham. It is stored in a strongbox inside a locked room.

CCTV There is a CCTV system covering all the access points and some indoor areas. The images are recorded and stored for 20 days. There are 51 fixed cameras activated by movement.

Access Control Access control systems are present with a fingerprint system for employees and a registration with badge for visitors.

Loss Experience

Date Incident Cost

2008 During one night, the strongbox was broken and the cash stolen



7. Site Plan





8. Photographs

Injection Moulding Machines

Blow Moulding Machine: SIDEL

Blow Moulding Machine: KOSME



Moulds Storage

Finished Products Warehouse (sprinkler protected)

Sprinkler Valves



High pressure compressor

Spare high pressure compressor



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http://www.insurancejournal.com/news/international/2012/12/12/273624.htm

http://www.aon-esolutions.com/

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http://aon.mediaroom.com/2013-02-21-Risk-Insurance-magazine-honors-47-Aon-brokers-and-consultants-with-Power-Broker-designation

http://www.aon.com/human-capital-consulting/consulting/health_benefits_consultants.jsp

http://aon.com/

http://www.aon.com/manchesterunited

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