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Heatec Meeting Feb 19 th , 2014

Heatec Meeting Feb 19 th , 2014. Federally Chartered Founded in 1988 Head Office, Calgary, Alberta Service Office, Edmonton, Alberta Presently over 30 employees on staff. Company Profile. Industrial equipment and packaging Commercial boilers and ancillaries Rental boilers

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Heatec Meeting Feb 19 th , 2014

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  1. Heatec Meeting Feb 19th, 2014

  2. Federally Chartered • Founded in 1988 • Head Office, Calgary, Alberta • Service Office, Edmonton, Alberta • Presently over 30 employees on staff Company Profile

  3. Industrial equipment and packaging • Commercial boilers and ancillaries • Rental boilers • Service and parts Market Segments

  4. Sale of Industrial Heaters, Boilers and WHRU’s • Complete package design to customer specifications • Turnkey modules designed to eliminate field fabrication requirements Industrial Equipment and Packaging

  5. Spectra Energy, Drawings and Models • Paramount Phase II, Drawings and Models • Husky Energy – Model • Secure Energy – Model • Paramount Arc Boiler – Model • Conoco Surmount – Model • Bellatrix – Model • Inlet Sweetening - Model Recent Projects Review

  6. Spectra

  7. Spectra

  8. Paramount Phase II

  9. Paramount Phase II

  10. Secure Energy

  11. Secure Energy

  12. Secure Energy

  13. Secure Energy

  14. Spectra Energy, Drawings and Models • Paramount Phase II, Drawings and Models • Secure Energy – Model • Husky Energy - Model • Paramount Arc Boiler – Model • Conoco Surmount – Model • Bellatrix – Model • Inlet Sweetening - Model Recent Projects Review

  15. Approximately 80% of heaters sold were not packaged • Packaging was done by plant integrators or tendered separately • Gas, SAGD, Oil end users Canadian Market - Historical

  16. Approximately 85% of heaters sold are with complete packaging by HTH • RFQ’s are coming direct from end user/engineering firms • LNG plants are starting to come out through EPC’s • Rail car loading stations have been coming out through EPC’s Canadian Market - Current

  17. SAGD activity has fallen off over last 12 months • Natural gas plant activity has increased over last 12 months Canadian Market - Current

  18. CDN dollar has weakend by 10% in last 4 months • Analysts predict another 5-10% slide by end of 2014 • Effect of US exchange rate changes has a limited impact on Canadian manufacturers Canadian Market Factors

  19. Wellons • Petrotech • Sigma Thermal • GTS • Cleaver • Saskatoon Canadian Market Competition

  20. Fabrication facility in BC lower mainland • Lower cost base than Alberta • Some of their coils are getting wound locally in the lower mainland • We have seen one site where they were done by Tulsa Tube Canadian Manufacturers - Wellons

  21. Fabrication facility in Calgary • Subcontract out winding of pipe sections • Weld sections together in their facility • Older units were fabricated in Europe Canadian Manufacturers - Petrotech

  22. Fabrication facility in Saskatoon Sask • Firetube boiler manufacturer • Very high (majority) of engineers insist on specifying 50F delta T max. This appears to be the limit Saskatoon will go to on high temp glycol • We are successful in driving the delta T up on some projects Canadian Manufacturers - Saskatoon

  23. Cost of Firetube design approx 60 to 70% of Heatec coil (vessel only). Based on Superior Boiler • Efficiency of Firetube design is above helical coil, especially on the lower temp glycol designs • Firetube designs don’t vary duty and firing rate based on fluid/temp. Canadian Manufacturers - Saskatoon

  24. Wellons – Dawson • Petrotech – Pelican lake • Sigma Thermal – Foster Creek Review Competition Pics

  25. Wellons

  26. Petrotech

  27. Sigma

  28. Standardized information for all proposals • Peripheral information not required in quotation (TOP, Company Description, Etc)(Sample #1 of modified Quote) (Tabular better for HTH) • HTH using standard RFQ template. Quotes come with incorrect information (Sample #2 of RFQ template and Quote Received) Heatec Sales Support

  29. Re-use existing CRN’s, 10 year limitation without resubmittal for review • How can HTH Sales reduce load on Heatec Sales department? Heatec Sales Support

  30. Exhaust exit out side of heater option? Lower packaging costs on some projects • Reduced stack outlet size? Lower packaging cost on some projects • Coil exit out side of shell at burner end of heater? Cleaner layout in building, reduced packaging costs (smaller building, heater/building interface simplified) Heatec – Design Changes

  31. One or two points of contact at facility • Standard information required for all project submittals(ITP, Schedule) • Standard commercial documentation required on all projects (MTR’s and packing list for coil material, Hydrotest cert for coil) for Heatech milestones Heatec Project Support

  32. Use HTH project reference number in all correspondence as well as Heatec SO number. Reduced confusion • How can HTH reduce load on Heatec projects department? Open Discussion • HTH uses a modified Heatec template to issue PO. We get questions on what ASME Section is required. Should we us a different form? (sample #3 in folder) Heatec Project Support

  33. Investment in facilities to respond to market requirements • Expansion of staffing to meet higher sales and project loading Heatech Future Direction

  34. Shop Expansion • 9000 sqft assembly bay • 120 000 lb four point lift • 28’ clear hook height

  35. Shop Expansion • Full load out capability • Structural/Stack assembly pad • Completion spring of 2015

  36. Review mins of May 31, 2013 meeting

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