issue 7 dec. 2011 - cristal corporate website magazine/issue 7 - 2012.pdf · ... arc ilmenite...

Issue 7 Dec. 2011

PHOTOCATALYTIC TIO2 COMES OF AGE / INTRODUCING CRISTAL ACADEMY / INVESTING IN THE FUTURE / ASHTABULA SELECTED FOR MAJOR EXPANSION

CG DEC 2011-PRESS.indd 1 24/03/12 1:07 PM

Surprisingly whiteIt’s time to take control of colour

www.cristalglobal.com

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25 INFORMATION TECHNOLOGY ENRICHING THE END-USER EXPERIENCE 37 CASE STUDY ROADMAPS TO OPERATIONAL EXCELLENCE

C O N T E N T S

Cristal Global selects the Ashtabula Complex for a significant expansion that will increase Plant 1 capacity by 20%.

Marc Vemeiren from Belgium emerges as the Global Grand Winner of the Cristal Global 2011 Photography Contest.

S ITE

ASHTABULA SELECTED FORMAJOR EXPANSION

TALENT

OUR BESTSHOTS

21 29

CAPACITY BUILDING

INVESTING INTHE FUTURE

HUMAN RESOURCES

INTRODUCINGCRISTAL ACADEMY

Cristal Global is building two fully scalable AC Arc ilmenite smelting furnaces in Yanbu, Saudi Arabia, to avert shortages of high-grade TiO2 ore.

The Academy will support global and local knowledge development, knowledge transfer and best practice learning and development.

11 16

A trial conducted by King’s College with the backing of Transport for London endorses CristalACTiV™ as a de-polluting technology.

New studies in Europe show dangerous levels of nitrogen oxides (NOx) and other pollutants in several cities.

URBAN PLANNING

PHOTOCATALYTICTiO2 COMES OF AGE

WATCH

EUROPE: POLLUTIONAND PROMISE

3 8

CRISTAL GLOBE - December 2011 Issue 7 1CG DEC 2011-PRESS.indd 3 24/03/12 1:29 PM

MULTI-PRONGED THRUST

Some of the most significant developments in Cristal Global in 2011 are contained in this edition. They imply a determined push for all-round excellence within our worldwide family. Most notable is the emergence of independent trial data endorsing CristalACTiV™ technology, which opens up vast areas in urban planning worldwide to new considerations in the quest to rid the air of the smog we breathe. As Mark Stoll, Cristal Global Vice President-Commercial, said at a conference in London in November to unveil the results of the CristalACTiV™ trial conducted by King’s College with the backing of Transport for London: “CristalACTiV™ is potentially THE responsible investment of the decade.”

Cristal Global also moved last year to bring new capacity to the titanium feedstock markets and avert potential shortages of high-grade TiO2 by embarking on building two fully scalable AC Arc ilmenite smelting furnaces in Yanbu, Saudi Arabia. Involving the expertise of Outotec, a world leader of sustainable minerals and metals processing solutions, the plant is expected to be the cleanest of its type in the world.

What’s more, an estimated $35 million will be invested in our Ashtabula Complex for process improvements that will increase Plant 1 capacity by 20% in view of growing customer demand for TiO2.

Equally,HR development will get a boost with the launch of the global Cristal Academy in 2012. According to Dr. Talal Al-Shair, the Academy “will not only ensure that we can more closely align our people’s work with our organizational goals, but, for the first time, Cristal will be leading the chemical and mining world by taking a global partnership approach to the learning and development.”

Exciting years lie ahead. Major IT projects completed in 2011 will keep empowering the end-user and accommodate future business growth. New opportunity, talent and determination are converging to bring out the best in the global Cristal family, a sampling of which can been seen in our report on “Let Your Colors Fly,” the Cristal Global 2011 Photography Contest that attracted 56 entries from our sites around the world to produce 12 winners.

Wish you an even uplifting year of new achievement. ❄

e d i t o r i a l

2 CRISTAL GLOBE - December 2011 Issue 7

PUBLISHER

Cristal Global Corporate CommunicationsP.O. Box 13586Jeddah 21414Kingdom of Saudi Arabia

CRISTAL GLOBAL CHAIRMAN & CEODr. Talal Al-Shair

PRESIDENTJamal Nahas

EXECUTIVE COMMITTEEAbdalla A. Ibrahim, SVP FinanceJohn E. Hall, SVP Business Development

EDITORRamesh [email protected]+ 91 80 41162633

ASSOCIATE EDITORShom Seth

CONSULTANTMax Martin

DESIGN/PICTURE RESEARCH/STUDIOWarren Hannington/U. Shanker

COVERMarc Vermeiren’s entry that fetched him the Global Grand Winner Award in the Cristal Global 2011 Photography Contest. (Page 29)


CRISTAL GLOBE - December 2011 Issue 7 3

Writing on the wall at the Cristal Global’s “Photocatalysis: Choose to Improve Your Air Quality Conference” held in London, Nov.17

PHOTOCATALYTICTiO2 COMES OF AGE

One of the most important technologies of our times is unveiled at Cristal Global’s “Photocatalysis: Choose to Improve Your Air Quality Conference” in London. Analysis of data obtained from a four-year trial conducted by King’s College with the backing of Transport for London shows that CristalACTiV™ technology can well be implemented on a large scale to reduce nitrogen oxide levels dangerous to human health and have real public health benefits for urban environments. Ramesh Balan reports.

u r b a n p l a n n i n g


d e p o l l u t i o n

David Salter, Six Sigma Master Black Belt-Cristal Global, presents the methodology and findings

In a groundbreaking development for the titanium dioxide industry, study results suggest what the BBC has headlined as the possibility of “‘Smog-eating’ material breaking into the big time” with Cristal Global’s CristalACTiV™ technology. The

trial using CristalACTiV™ ultrafine titanium dioxide photocatalytic technology was conducted by King’s College with the backing of Transport for London over a four-year period in the London borough of Camden.

Its results were unveiled at “Photocatalysis: Choose to Improve Your Air Quality Conference” held by Cristal Global in London, November 17.

The conference presented the exacting parameters used in the Camden trial to replicate lab performance of CristalACTiV™ transparent colloid coating in real-world scenario.

The aim of the trial was to examine a possible solution to a major global problem:

‘The greatest form of leadership we can take is one that not only benefits our business, but works in partnership with our clients to enhance the lives of the world’s population.

Mark StollCristal Global Vice President-Commercial




CAMDEN NOx REDUCTION TRIALResults and Analysis

David Salter, Six Sigma Master Black Belt-Cristal Global, presents the methodology and findings

SIZE OF EFFECT

Size of drop in mean concentrationsNO•A drop of up to 36 μg/m3 (from 66 to 29 μg/m3), representing up to a 55% reduction in NO levelsNO2 •A drop of up to 15 μg/m3 (from 75 to 60 μg/m3) or approximately 20% reduction in NO2 levels

Calculated rate of removal at average peak concentrationsNO•100 mg/m2/hr•Every m2 of the wall removing 0.9kg NO per yearNO2

•44 mg/m2/hr•Every m2 of the wall removing 0.38kg NO2 per year

TRIAL SITE, TIMELINES

• Trial site – courtyard in St Martin’s College, Camden• One wall in courtyard treated with CristalACTiV™ transparent colloid. Area covered – 135m2.• Monitoring at the site from 2007 – 2010• Baseline data gathered 2007 – Feb 2009• CristalACTiV™ colloid applied March 2009• Concrete surface of wall repaired• Wall covered in August 2010 to remove effect

DATA GATHERING

• NO, NO2 and NOx readings every 15 minutes• Chemiluminescence monitor• Two sampling points – next to wall and 1.5m from wall• Weather station data at St Martin’s College and Bexley• Wind Speed and direction• Sunlight• Humidity / rain• Bexley data used for underlying wind direction

Should CristalACTiV™ technology be implemented on a large scale, nitrogen oxide (NOx) levels dangerous to human health at 200 μg/m3 an hour could be significantly reduced, thus allowing many major cities around the world to achieve their air quality standards.

In the independently managed and financed study conducted in a courtyard at St. Martin’s Art College in Holborn from July 2007 to December 2010, CristalACTiV™ treatment was applied to a wall on March 16, 2009.

Analysis of the trial data showed that CristalACTiV™ treatment neutralized up to 55% nitrogen oxide (NO) and 20% nitrogen dioxide (NO2) in the atmosphere in the immediate vicinity to the treated external surface, depending on the strengths and direction of the wind and the amount of ultraviolet light, instrumental in the process. (Artificial and reflected light are proven enough to drive the reaction.)

Commenting on the study methodology and results, a globally renowned expert on

the impact of science and technology on society, Prof. Tony Ryan, Pro Vice Chancellor for the Faculty of Science of the University of Sheffield, said: “It’s been notoriously difficult to prove that any of the existing photocatalysis technology genuinely works and reduces the amount of NOx in the air. This is due to significant airflow and winds in urban environments, which dilutes any de-polluting effects of photocatalytic materials in open spaces. This test therefore used a combination of methods, including monitoring in open and semi-closed space environments.

“I am now entirely convinced that photocatalytic TiO2 is now proven as a de-polluting technology – and am delighted that this breakthrough has been made, as it could have real public health benefits for urban environments,” the professor said.

‘Behavioral catalysts’The conference declared Cristal Global’s

aspiration to demonstrate genuine leadership by offering society at large a choice. “We want


Mold/bacteria

Hydrophilicity

Depollu�onCoa�ng

SOX

NOX

VOC TiO2

CaCO3

SOx / NOx + H2O

CO2+ H2O

VOC

CaSO4 / Ca(NO3 )2

+CO2 & H2O

H2SO4 / HNO3

CristalACTiV™CLEANS THE AIR,CLEANS ITSELF

Ultrafine TiO2 technology – CristalACTiV™ photocatalytic titanium dioxide – is an active transparent ingredient that can be added to any paint or building materials, and can be used on many surfaces on its own. These surfaces then draw dramatic volumes of nitrogen oxides (NOx) out of the air, effectively “eating pollution” by leveraging the ultra-violet light in sunlight.

our products to be catalysts, not only in the chemical sense, but also to act as behavioral catalysts to encourage the responsible, life enhancing choice – thereby helping to create a cleaner, brighter future for us all and for generations to come,” said Mark Stoll, Cristal Global Vice President-Commercial, in his speech. “The greatest form of leadership we can take is one that not only benefits our business, but works in partnership with our clients to enhance the lives of the world’s population.”

The Camden findings mean that a typical UK semi-detached house with some 80m2 of external walls, treated with the CristalACTiV™ solution, could neutralize the NOx emissions of more than 13 cars covering 20 km each per day, making a two-car household remove more car-generated air pollutants than it causes.

Besides, every 6m2 of external surface, covered or treated with CristalACTiV™, on average removes NOx emissions of one Euro 4 car (diesel and petrol/gasoline) per day, assuming that an average car travels on average 12 miles (20 km) within the London urban area and emits on average 3.3g of NOx a day. A separate product trial in Manila,

Philippines, conducted from 2009 to 2010, has also confirmed this data.

Cristal Global’s R&D operation in Stallingborough, UK, which holds numerous patents on photocatalytic technology for pollution control and NOx abatement, led the development of CristalACTiV™. “This is a groundbreaking result for the 25-year-old industry,” Stoll said about the innovative technology that can be used in a myriad of end products.

“What could link them is that by using CristalACTiV™, end users will have taken the choice to improve their local environment and the health of anyone in the vicinity, given that end users will save on maintenance costs and offset their own car emissions,” Mark said. “For local authorities it could mean avoiding regulatory burdens. CristalACTiV™ is potentially THE responsible investment of the decade.”

An active transparent ingredient, CristalACTiV™ can be added to any paint or building materials or used on many surfaces on its own. These surfaces then draw dramatic volumes of NO out of the air, effectively “eating pollution” by leveraging the ultraviolet light in sunlight.



continuing to possess strong air de-polluting qualities more than two to three years after the original photocatalytic paint application. In other materials, such as concrete, the de-polluting effects of CristalACTiV™ last for up to 15 years.

“TiO2 is one of the most important compounds that the majority of the world has never heard of,” Mark said, though it is used in a wide variety of everyday consumer products.

Produced from a naturally occurring mineral and possessing stable, inert, non-toxic qualities, TiO2 is the prized white pigment in use today. TiO2 pigments have diverse applications and are used in hundreds of everyday applications that include paints, plastics, powder coatings, inks, paper products, rubber and now environmental systems.

The BBC, in reporting the Camden trial results, described TiO2 likewise, as “a wholly unsung material.”

“Its brilliant white has made it a staple in pigments ... but its eco-credentials are still coming to the fore,” the BBC said, concluding that TiO2 “does a couple of clever tricks that mean we may well be seeing a lot of it in the future: it’s self-cleaning, and it breaks down pollutants in the air.”

For more information please visitwww.cristalactiv.com

❄


The coating also reduces nitrogen dioxide (NO2), a major contributor to respiratory diseases such as asthma. A separate study, independently conducted by the Paint Research Association, London, has proven that a CristalACTiV™ colloidal suspension demonstrated “excellent” activity against such bacteria as MRSA and Staphylococcus aureus (S. aureus) on glass and other surfaces like paint and stainless steel.

MRSA is among the greatly feared strains of S. aureus, which have become resistant to most antibiotics. Most often found associated with institutions such as hospitals, the strains are becoming increasingly prevalent in community-acquired infections, enjoying about 20% of the human population as its long-term carriers. They can cause a range of illnesses from minor skin infections, such as pimples, scalded skin syndrome, and abscesses, to life-threatening diseases such as pneumonia, meningitis, osteomyelitis, endocarditis, toxic shock syndrome (TSS), bacteremia, and sepsis.

The Paint Research Association’s tests showed that the CristalACTiV™ colloidal suspension eliminated between 99.0-99.9% of overall MRSA and S. aureus bacteria numbers. All testing was carried out in 2011 in compliance with ISO standard 27447: 2009.

Another major benefit to CristalACTiV™ derived products is that they are effectively self-cleaning. Dirt cannot adhere to the treated surface and can be washed away by rain thereby cutting maintenance costs from less need for cleaning or repainting.

CristalACTiV™ has also proven to be stable,

CristalACTiV™ technology that can be used in a myriad of end products. “This is a groundbreaking result for the 25-year old industry,” said Mark Stoll, Cristal Global Vice President-Commercial.


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EUROPE:POLLUTIONAND PROMISE


The recent scientific findings about the ability of surfaces treated with CristalACTiVTM to clean up urban atmosphere comes at a time of Europe-wide – indeed worldwide – concern

about a rise in harmful pollutants spewed out of factory smokestacks and car tailpipes.

New studies in Europe have revealed dangerous levels of nitrogen oxides (NOx) and other pollutants in several cities. There have been several initiatives to explore ways to bring their levels down using novel technologies. CristalACTiVTM treatment comes as a fine example for such new, affordable solutions being explored as a solution to the big problem of air purification.

In the context of atmospheric pollution, nitric oxide (NO) and nitrogen dioxide (NO2) that CristalACTiVTM deals with are significant. They are produced when fuels burn at a high temperature. NO2 irritates the windpipes and the lungs and can worsen asthma and possibly make you more prone to infections.

In addition, nitrogen oxides in the atmosphere can turn into nitric acid that causes acid rains or direct deposition straight onto the ground. In the troposphere, or the lowest portion of the atmosphere, during daylight, NO reacts with organic compounds to form NO2, which, in turn, is broken down by sunlight to regenerate NO. The oxygen atom from the second reaction then goes on to form ozone (O3) that has harmful effects on our respiratory systems and on sensitive plants at ground level. (However, the ozone layer in the upper atmosphere is beneficial as it blocks potentially damaging electromagnetic radiation.) So these chemicals have a significant impact on the quality of the air we breathe.

Air quality has been a major issue of concern in Europe over the past two decades and more. There has been a marked improvement between 1990 and 2009, as emissions of most pollutants have fallen, according to a recent report from the European Environment Agency (EEA). However, many EU countries

Europe’s air quality is generally getting better but many EU countries would have exceeded the emissions ceilings in 2010 for at least one pollutant, according to the European Environment Agency. Max Martin reports.

w a t c h


Saudi Arabia is the region’s largest and strongest economy and the 24th strongest economy globally. The Ministry of Commerce is developing a new industrial development strategy to encourage regional diversification, foreign direct investment, private sector involvement, and the introduction of knowledge-based industries in Saudi Arabia, including financial services, TMT, logistics and utilities.


would have exceeded the emissions ceilings in 2010 for at least one pollutant, according to the report. Besides, despite sustained efforts, levels of ground-level ozone and particulate matter have remained more or less unchanged, the report added.

Experts rate ammonia (NH3) from agriculture and nitrogen oxides (NOx) from combustion processes as the main air pollutants in Europe and ozone and particulate matter the most harmful to health. “Europe’s air quality is generally getting better, but concentrations of some pollutants are still endangering people’s health,” says Prof. Jacqueline McGlade,

Executive Director of EEA. “To improve air quality further, we need

to use many different kinds of policies and measures. These could include reducing emissions levels at source, better urban planning to reduce people’s exposure and lifestyle changes at the individual level.”

Another recent EEA report showed that air pollution from the 10,000 largest polluting facilities in Europe cost citizens between 102 and 169 billion euros in 2009. This report analyzed the costs of harm to health and the environment caused by air pollution. Air pollutants, which contribute to acid rain and

New studies in Europe show dangerous levels of nitrogen oxides (NOx) and other pollutants in several cities. Cityscape illustration by M. Ameen


can cause respiratory problems – sulphur dioxide (SO2), ammonia (NH3), particulate matter (PM10) and nitrogen oxides (NOx) – were found to cause 38-105 billion euros of damage a year.

There is concern within individual European

countries too. Recently the UK Department for Environment, Food and Rural Affairs (DEFRA) has noted that parts of UK have not achieved full compliance with the annual NO2 limit value set by the EU, though the levels were within the EU limits for most of the country. Three zones which exceeded the hourly mean limit value are Greater London, Glasgow and North East Scotland. Meeting London’s targets could be tough – the report suggests that it could perhaps be done only as late as 2025. According to experts, this reality could raise concerns about hosting the Olympics in 2012, when there will a lot of vehicular movement, and potential exposure to a lot of visitors. During the 2008 Beijing Olympics, the Chinese government had to put in place restrictions in transport and industry to pollution within acceptable limits.

DEFRA has suggested a host of measures aimed at cutting down pollution in the longer term in the UK. They include sops for shifting bulk transport from road to rail, retail delivery at off-peak hours, and better pricing for vehicles that pollute less. Across Europe, there are several measures that look at prevention and mitigation of the pollution problem. One such initiative is LIFE+, the EU’s financial instrument that supports environmental projects. Under this initiative, Photocatalytic remediation Processes on Air Quality (PhotoPAQ) aims at providing new solutions for improving urban air quality. The PhotoPAQ project evaluates the feasibility of using TiO2 based products to solve the air pollution problem under real atmospheric conditions – a promising route as results suggest.

Eventually the PhotoPaq project aims to address a range of issues related to the optimum use of different types of materials in different European landscapes for different applications. That means tests will probe what real life conditions, at which city point, and at what traffic density maximum reduction of pollution can be expected. Different solutions are emerging, like a silver lining beyond the dark clouds of pollution. ❄

MAIN EEAFINDINGSREGARDINGPOLLUTIONParticulate matter20% of the EU urban population lives in areas where the EU air quality 24-hour limit value for PM10 (inhalable particles measuring 10 micros or less) concentration was exceeded in 2009.

OzoneOzone levels did not fall significantly between 1999 and 2009. Approximately 17% of European citizens live in areas where the EU target for ozone concentration was exceeded in 2009.

Sulfur dioxide (SO2)From 1999 to 2009, Europe cut SO2 levels by roughly 50%, leading to declines in acid rain and reduced acidification. Still 68-85 % of the EU urban population is potentially exposed to levels above the WHO guidelines.

Nitrogen dioxide (NO2)NO2 concentrations have declined slightly in recent years. But the levels exceeded at hotspots, such as main roads. 12% of the European urban population lives in areas with urban background (non-traffic) concentrations of NO2 exceeding EU and WHO levels.

Heavy metalsAtmospheric levels of arsenic, cadmium, lead and nickel are generally low in Europe. However, heavy metal levels can build up in soils, sediments and organisms – a significant proportion of European ecosystems are still at risk.

(WHO guidelines are more stringent than EU standards)

Source: EEA



c a p a c i t y b u i l d i n g

INVESTING INTHE FUTURECristal Global is bringing new capacity to the titanium feedstock markets by building two fully scalable AC Arc ilmenite smelting furnaces in Yanbu, Saudi Arabia, at a time when the industry is facing shortages of high-grade TiO2 ore. The project has significant competitive advantages of location and energy due to Saudi Arabia’s abundant natural resources and ongoing investment in its internal logistics.

Cristal Global has embarked on a project to bring equilibrium across the vertical titanium dioxide industry value chain for its customers and partners through a groundbreaking

partnership with Outotec, a leading provider of sustainable minerals and metals processing solutions.,

The move to build two fully scalable AC Arc ilmenite smelting furnaces in Yanbu, Saudi Arabia on a turnkey basis and bring a new source of 85% TiO2 slag on to the market is significant for an industry facing potential shortages of high-grade TiO2 ore beginning in 2013.

“The reality is that there is not nearly enough high-grade TiO2 ore to meet the growing demand of pigment producers as the existing high-grade feedstock deposits have been depleted with little reinvestment,” said Thomas Van Valkenburgh, Cristal Global Vice President-Supply Chain.

Titanium mineral sands – the key strategic feedstock – have been getting more and more

expensive, Tom said in a speech to industry delegates during the 2011 TZMI Congress in Hong Kong, November. “The data from TZMI suggests that the chloride ore market will remain tight over the next few years, resulting in potential supply deficits,” he said. “In the meantime, TiO2 demand has grown by 26% since the financial downturn in 2009.”

The necessary land for the slagger project has been obtained, basic engineering has begun, site preparation will start early next year and the plant is estimated to become operational in Q4 2013.

“The initial output will be 500,000 tonnes per year of 85% TiO2 from two furnaces,” Tom said. “However, should there be a need to support additional demand for high grade feedstock in our industry; we can use either “pre-reduction technology” to double the output of each furnace or simply build two more furnaces onsite, thereby enhancing our output capacity to a total of one million tonnes per year.”

Using Outotec’s proprietary AC furnace technology earned from long experience


‘Due to Saudi Arabia’s abundant natural resources and ongoing investment in its internal logistics, there is more than enough power

capacity for us to plug into. Thomas VanValkenburgh

Cristal Global Vice President-Supply Chain


Ti-FEEDSTOCK SUPPLY AND DEMAND

HISTORIC AND CURRENT TiO2 TRENDS: CHALLENGES TO GROWTH

3,000

2,500

2,000

1,500

1,000

500

0

Ti-FEEDSTOCK PRICES

NR UGS SRNitrateSulfate SlagChloride Slag

1980

1985

1990

1995

2000

2005

2010

2015

Source: TZMI and Cristal Global

US$

/mt F

OB

Supply* DS Demand

* Excludes unapproved new projects

TiO

2 uni

ts,0

00 m

t

12,000

10,000

8,000

6,000

4,000

2,000

0

115%

110%

105%

100%

95%

90%

85%

80%

75%

70%

65%

60%

55%

50%

2007

2008

2009

2010

2011

2012

2013

2014

2015

Dem

and/Supply Ra�o

Ti-FEEDSTOCK SUPPLY AND DEMAND

HISTORIC AND CURRENT TiO2 TRENDS: CHALLENGES TO GROWTH

3,000

2,500

2,000

1,500

1,000

500

0

Ti-FEEDSTOCK PRICES


1980

1985

1990

1995

2000

2005

2010

2015


US$

/mt F

OB

Supply* DS Demand

* Excludes unapproved new projects

TiO

2 uni

ts,0

00 m

t

12,000

10,000

8,000

6,000

4,000

2,000

0

115%

110%

105%

100%

95%

90%

85%

80%

75%

70%

65%

60%

55%

50%

2007

2008

2009

2010

2011

2012

2013

2014

2015

Dem

and/Supply Ra�o

in the metallurgical industry, the slagger will allow Cristal Global to refine low-grade ilmenite feedstock into high-grade 85% TiO2. Accommodating most ilmenites as feedstock, the plant will produce high purity pig iron as co-product, which will be sold to local iron ore producers. Cristal Global will initially have a need for 800,000 of ilmenite for the project and will be sourcing from its BeMax

subsidiary and international markets.The plant will also incorporate the

Granulation process which is a well-established standard technology in the ferrochrome industry. Initial trials on TiO2 have worked extremely well. The technology produces higher yield at lower cost, is safer and has significant and compelling advantages over the more conventional block treatment.



3,000

2,500

2,000

1,500

1,000

500

0

Ti-FEEDSTOCK PRICES


1980

1985

1990

1995

2000

2005

2010

2015


US$

/mt F

OB

CK PRICES

UGS SRNitrateSulfate SlagChloride Slag

1990

1995

2000

2005

2010

2015


“Most importantly, you get higher yields of chloride grade slag (92% versus 85%),” Tom said.

Outotec is a world leader in smelting and EPC delivery. “As energy companies rely on Schlumberger and Halliburton, so the world of mining and minerals relies on Outotec and its peers,” he said.

Competitive advantagesThe project has competitive advantages

of location and energy. It is fully funded on a strictly commercial basis from Cristal Global’s own resources, institutional investors and private equity from Cristal’s owners. Its location in Saudi Arabia, where Cristal Global already has significant production operations, provides vital operational synergies and cost savings. Land has been allocated, port and road facilities will be in place.

“Due to Saudi Arabia’s abundant natural

resources and ongoing investment in its internal logistics, there is more than enough power capacity for us to plug into,” Tom said. “The mining industry’s greatest challenge is finding a location for a smelter that is reasonable for logistics, but where there is sufficient electricity capacity. This has been a major issue for some of the mining hubs in Africa and the post Soviet space, where slightly ageing infrastructure has been put under pressure by new smelting operations, whereas the Kingdom does not experience any power shortages.”

Apart from the commercial bonus, the new plant is also “extremely positive on the environmental side, ensuring that nothing goes to waste and fitting with Cristal Global’s commitment to sustainability,” Tom said, noting the shared values with Outotec.

“Sustainability is at the heart of both of our business identities,” he said. “By incorporating

◊ Orga owth has created a true global leader ◊ anium tetrachloride merchant supplier ◊ 2nd largest TiO2 producer ◊ 4,000 employees ◊ Oper ◊ s

TODAY


PG 3-15.pdf 1 1/16/12 3:04 PM


Outotec technologies we gain a social license to operate the facility. I’m not pretending that we’re building a wind farm, but this plant will be the cleanest of its type in the world.”

Cristal Global believes the investment will have genuinely positive effects across the entire industry. Vertical integration is the way that the industry is going. “By making this strategic investment, we are acting as the catalyst for growth for an entire industry,” Tom said, presenting a slide showing the sectors that will benefit: Ti powder, pigments, eco-coatings, mineral sands and paint. “Enhanced

production of high grade titanium slag, as part of our vertically integrated structure gives us more control (and) ability to provide a more secure form of supply of TiO2 products to our customers.”

The project offers a major opportunity to help meet the demand for titanium feedstock for the manufacturing of TiO2 and subsequent finished goods.. “It is the needs of our customers that are key to this project,” Tom said. “After all, we don’t make the final products.” ❄

S T R A T E G I C P A R T N E R S

• Cristal Global is successful and profitable, following stringent environmental standards and complying with both the industry and the host country environmental standards and procedures. • Revenues surpassed US$2.2bn in 2010 and are expected to reach US$2.6bn in 2011.

• Outotec’s proprietary AC furnace ferrochrome process is recognized by the European Union as the Best Available Technology (BAT)

• Outotec has signed the United Nations Global Compact initiative and has committed to its principles of human rights, environment, labor and anti-corruption

• Outotec is member of Cleantech Finland• 72% of Outotec’s order intake (2010) is classified as Environmental

Goods and Services (OECD definition)• Outotec is ranked the third best Nordic company by Carbon Disclosure

Project (CDP) in the Carbon Disclosure Leadership Index in 2010• Sustainability is a core element in our mission and principles; with

Outotec technologies, customers get also a social license to operate

THE PROJECT• Utilizes low grade Ilmenite to produce 500,000 t/a of titanium slag for TiO2 production • Is fully scalable by using either the “pre reduction technology” or building two additional furnaces• 235,000 t/a of HPPI (co-product) to be sold to local steel producersIlmenite to come from existing mineral sands partners and BeMax


Phase 1

• 2 X 60 MW AC furnaces • Slag granulation • 500,000 t/a 85% TiO2 slag • 235,000 t/a HPPI

THE SLAGGER PROJECT: SIGNIFICANTINVESTMENT FOR NEW VALUE CREATION


Phase 2 Opportunity

Double capacity either by: • Pre-reduction module or • Two additional furnaces


INTRODUCINGCRISTALACADEMYCristal Global enters into a learning partnership with its staff with the announcement of the Cristal Academy.

Cristal Global is entering into an exciting new phase in the development of our global family, with the

introduction of the global Cristal Academy. The Academy will support global and local knowledge development, knowledge transfer and best practice learning and development approaches. The Academy’s capabilities will continue to evolve and develop following its implementation in 2012, and it aspires to be recognized as an industry leading institution of Learning & Development

“People are core to our business strategy and one of the most important sources of competitive advantage. The announcement of the Cristal Academy will not only ensure that we can more closely align our people’s work with our

organizational goals, but, for the first time, Cristal will be leading the chemical and mining world by taking a global partnership approach to the learning and development. This will not only provide the right opportunities and training programs to our people but also serve as a true enabler for success and growth for all of our Cristal Family members,” Dr. Talal Al-Shair said.

The Academy leverages global knowledge to facilitate individual, team and organizational success; primarily focused on skills enhancement and knowledge management, supported by three faculties:

1. Skills Enhancement Focus

Development and maintenance of employee skills and competence: The Academy will develop and deliver a core global curriculum, building and sourcing the necessary


h u m a n r e s o u r c e s


‘The Cristal Academy will not only provide the right opportunities and training programs to our people but also serve as a true enabler for success and growth for all of our Cristal Family members.

Dr. Talal Al-ShairChairman and CEO

learning materials, resources and learning channels to support it. The Academy will also develop compliance tracking processes and competence assessment and assurance methodologies. The global Academy Operating framework ensures consistency of approach and standards, whilst providing a basis for locally appropriate delivery.

2. Knowledge Management Focus

Ensuring the sustainability of Cristal’s core proprietary knowledge base is critical. The Academy provides a focus for knowledge management within Cristal Global. It will provide the right tools and methodologies to support knowledge capture and transfer and to build knowledge management capability across the business. A key role the Academy will play is the

development of internal trainers, facilitators, coaches and mentors and supporting Subject Matter Experts to enable them to share their knowledge effectively.

“The announcement of the Cristal Academy is the first stage in an important and exciting journey which will enable our organization develop the skills that are critical to our success, support the capture and distribution of knowledge, develop the agility needed to address change and encourage the development of a learning culture.

“The Academy will help us drive improvements in productivity and performance across Cristal Global. It will support managers in quickly and efficiently introducing improvements in work practices, the quality of work and productivity of their staff; thereby reducing compliance risks, and achieving their business objectives. Finally and


most importantly, the Academy will enable our Cristal family members to be successful in what they do,” stated Omar Najjar, Cristal Global Vice President of Human Resources.

Cristal Global plans to have a phased implementation of the Cristal Academy, providing a comprehensive suite of learning and development resources and programs, underpinned by a global Learning Management System (LMS). The new LMS system will enable staff and managers to engage in locally delivered training, access global experts via virtual classrooms and share expertise and interests with subject matter experts from around the business through online communities of practice and a knowledge-rich, social learning environment.

The phased rollout of the Cristal Academy is being overseen by the Cristal Executive Committee and supported by a Business Advisory Group consisting of experienced

learning and development champions representing the core business functions.

Part of BAG’s role also is to ensure competency and compliance standards are met at each Cristal Global function and location. Taking learning and development champions from the business ensures the services provided by the Academy are aligned with and are responsive to the needs of the business.

During the transition from local training to a global learning and development approach, existing training programs will continue to be run and will form the basis of local and global learning and development going forwards. ❄

T H E A C A D E M Y H A S T H R E E F A C U L T I E S

BUSINESS

Incorporating:

• Sales and Marketing• Supply Chain

• Finance (including Audit and Risk Management)

• IT

• HR

• SHE

• Cristal Global World – Products, Markets Customers, Key Business Policies, Processes, etc. (including Corporate Orientation Program) Business Development Programs (Talent Pools + Cristal Young Talent Program)

TECHNOLOGY

Incorporating:

• Operations

• Engineering (including Maintenance and Reliability, Process Engineering, Process Control, Process Safety and Project Engineering disciplines)

• Chemistry

• Mining

• Yanbu Technical Training Institute

• Technical Development Programs (Engineer Development, Cristal Young Talent Program + Talent Pools)

MANAGEMENT

Incorporating:

• Externally accredited Core Management Skills Curriculum, e.g.:• Team Leading• First Line Management• Management and Leadership • Strategic Management and Leadership• Change Management



Your Business Advisory GroupThe Business Advisory Group (BAG) provides strategic direction and

governance to the Cristal Academy whilst supporting the development of functional skills dictionaries, technical curricula and skills development

programs.

Lea Edon– IT

Steve Box– Finance

Graeme Stephen– R&D

Bill McEnroe– SHE

Malcolm Goodman– Supply Chain

Simon Morten– Manufacturing

Bob Daniels – Management/General Business Skills

Jean-Yves Gigou – Commercial

Omar Najjar– HR


VIEW FROMTHE SITEThe ability to offer access to formal learning and development opportunities across the Cristal Global family will enhance our reputation as an employer of choice, says Simon Morten, Site Director, Western Australia.

The Western Australian plant has always had to be self-sufficient and has traditionally sourced training from local providers and in-house trainers given its remote location. However, the difficulty with this approach is that outsourced

training is not always relevant to our business and has not traditionally provided us with access to the global expertise and knowledge at Cristal Global.

The Cristal Academy will provide this and more. The ability to offer access to formal learning and development opportunities across the Cristal Global family will enhance our reputation as an employer of choice. This combined with the provision of formal career planning and access to subject-matter experts in technical, operational and business management disciplines will attract staff in what is an increasingly competitive market.

The Academy will not only provide the opportunity for formal career development of new staff but also acknowledge the significant contribution of our long-standing employees, many of whom are experts in their area of work; whether in chemical engineering, reliability engineering, scientific research, or key non-technical areas of our business. These experts will be enabled to share their knowledge with their peers and coach new staff in the processes at the root of our business.

The Academy will also support our transition from a specialist pigment producer to a fully integrated, global business as we leverage the skills of our staff from across the globe. For example, if someone within the Cristal Global family develops a learning and

development package to explain our process safety requirements to new staff, we will be able to access and use that information to develop our staff in Bunbury, West Australia.

While the heritage of each plant within the Cristal Global family is different, the fundamentals of how we operate are the same; this is particularly true of our occupational health and safety and process safety work. Even though we need to comply with different safety regulations, the outcomes of a safer operating environment are largely the same and support our focus on best practice chemical engineering and mining.

Gaining access to the global curricula and development opportunities provided by the Cristal Academy supports modern workforce trends, where employees experience two or three careers and many different jobs within their working life, a fact borne out by our operational staff some of whom were chefs and police officers but are now involved in chemical plant operations.

The Academy also provides our engineers, scientists, chemists and other professional staff with the opportunity to further develop their careers and support continuous professional development, which is a requirement of many professions.

It is the knowledge and expertise of our staff that makes our company what is it is today. The Cristal Academy will enable us to share this knowledge and extend its reach both locally and globally. We are looking forward to accessing the Academy’s resources to reduce the distance between our operation and the rest of the Cristal Global family and to enhance the career prospects of our staff. ❄



ASHTABULASELECTED FORMAJOR EXPANSIONCristal Global has selected the Ashtabula Complex for a significant expansion that will increase Plant 1 capacity by 20% . Employees of the Complex are excited by the development since their first Best of the County award, given by the Growth Partnership for Ashtabula County, was in recognition of the first major expansion at Plant 1 as far back as 1991.

Recognizing global industry competition, growing customer demand for titanium dioxide, and after closely evaluating which of its global TiO2 plants would be the best candidate for immediate

expansion, Cristal Global has now selected the Ashtabula Complex for a significant expansion.

This involves a project team of 16 employees and an estimated investment of $35 million for process improvements that will increase Ashtabula Plant 1 capacity by 20%. Unlike typical narrowly focused de-bottlenecking projects in the past, the project is comprehensive in nature.

Steve DiBacco, Ashtabula Plant 1 Growth Project Manager is enthusiastic about this opportunity provided to the Complex. “In early 2010, a study was conducted to evaluate various alternatives to increase

total plant production,” he said. “The most effective capital approach was identified that will provide for the most economical means for the expansion. We’re now beginning to implement the improvements that the study revealed.”

Ted Cudak, Operations and Maintenance Manager at Ashtabula Plant 1, is looking forward to completion of the project. “We’re anticipating completion of important portions of the project as early as the end of the first half of 2012, with full project completion in 2013. We’re focusing on keeping at full production levels during this period, and taking advantage of project start up phases as they occur.”

While the project will not create as many as the 100 jobs of the 1991 plant expansion, there will be a modest increase in employment as well as an increase in contractors and service providers needed for its construction.


s i t e



Since 1991, capacity increases at the Complex and other TiO2 facilities have been most often accomplished by minor process de-bottlenecking. This involved incremental process improvements that collectively increase a company’s total output of finished products. However, at some point, greater steps with significant financial and resource investment needed to be made.

And now that another significant expansion of Ashtabula Plant 1 has been announced, the employees are understandably enthused: Their first Best of the County award was given by the Growth Partnership for Ashtabula County in 1991 in recognition of the first major expansion at Ashtabula Plant 1.

The Complex has been a principal member of the Growth Partnership, an organization formed some 20 years ago to foster and

facilitate economic development in Ashtabula County. During this time, the Growth Partnership has been successful at attracting new businesses to the area and assisting established businesses to prosper and grow. In line with its mission it has annually recognized businesses with its “Best of the County” award.

The Complex comprises two facilities that produce TiO2 and other titanium products. The older of the two (Ashtabula Plant 2) was built in the 1950’s by the Cabot Chemical Company and later began producing titanium dioxide and titanium tetrachloride. The newer facility (Ashtabula Plant 1) was built in the 1970’s by the Sherwin Williams paint company to produce titanium dioxide. Both operations happened to be located next to one another. The newer plant was purchased

Ashtabula Plant 1 Growth Project Team Members: (front row, from left): Mike Sabeh, George Krieski, Lee Turley, Bob Mott, Joel Gordan, (middle row, from left): Rich Jarvis, Martha Tuttle, Gary Lucas, Steve DiBacco, Sam Vitale; (back row, from left): Bill Laughlin, Tom Secich, Scott Strayer. Other Team Members not pictured: Chris Morrison, Phil Joliff, Duane Stevens and Ralph Christy.


PG 16-28.pdf 1 1/16/12 2:46 PM

CRISTAL GLOBE - December 2011 Issue 7 23‘Essentially, people can best build a level of trust with people they know personally and interact with on a regular basis. And we recognize that the surrounding community has ongoing, critical input on a facility’s license to operate, which can’t be

overlooked or taken for granted.Scott Strayer

Site Director-Ashtabula Complex

by SCM Corporation in the late 1970’s and older plant was purchased by SCM Corporation in the 1980’s. SCM Corporation was a predecessor company, whose TiO2 operations are now a part of Cristal Global.

Community outreach awardOver the years, the Ashtabula Complex

employees have held leadership roles in community organizations and boards, including the Civic Development Corporation, and the Growth Partnership. Most recently in September, their community outreach efforts

bore fruit when the Growth Partnership honored the Complex again during its 2011 Best of the County Awards dinner to celebrate individuals, companies, and organizations contributing to the fabric of the community with work, resources and leadership.

The award was in recognition of the outstanding community outreach activities of the employees, and it was the fourth for the Complex: Previous Best of the County awards won were in 1991 and 1996 and the Growth Partnership’s President’s Award in 2006. The awards speak of the growing reputation of

Ashtabula Plant 1



Scott Strayer (right), Ashtabula Site Director, presents a memento to Dr. Talal Al-Shair during a recent visit by the Cristal Global Chairman and CEO to the Complex in northeast Ohio

the Ashtabula Complex as one of the best employers in northeast Ohio.

Community outreach has become an integral part of the operation of chemical facilities around the world because it focuses on the direct relationship between an industrial operation and its neighbors. Scott Strayer, Site Director, who accepted the award on behalf of the Ashtabula Complex, explained: “Essentially, people can best build a level of trust with people they know personally and interact with on a regular basis. And we recognize that the surrounding community has ongoing, critical input on a facility’s license to operate, which can’t be overlooked or taken for granted.”

The Complex’s history of community outreach efforts spans over 20 years in the area. The Complex produces 30% of the titanium dioxide for Cristal Global, and is also its major producer of titanium tetrachloride

used as a raw material in the manufacture of titanium metal. There are some 500 employee families directly supported by the Complex, which also financially supports the local community with the purchase of over $78 million in local goods and services annually.

The involvement of the Complex with the local community has included support for local programs such as the United Way annual charity donation drive, rebuilding a deteriorated local sports field, and annually awarding a college scholarship grant to a graduating high school senior planning to attend college to obtain a degree in engineering or science. Additionally, a number of smaller grants are awarded annually to local organizations to help them fulfill their community improvement missions.❄



ENRICHING THEEND-USER EXPERIENCEMohammed Nowman, Chief Information Officer, traces the efficient and expedient growth of the IT infrastructure that Cristal Global inherited from Millennium Inorganic Chemicals (MIC) in 2007, to a global SAP platform today that supports all its business units. Major projects completed this year will keep enhancing the end-user experience and accommodate future business growth. Establishment of COE (Centers of Excellence) teams globally will help business and IT to coordinate and develop standard business practices across all functional areas.

When Cristal acquired Millennium Inorganic Chemicals (MIC) in May 2007, the IT infrastructure was outdated. Most of the

hardware was about six to seven years old and SAP was running on a seven-year-old obsolete version. While backend infrastructure such as SAP, Security and WAN (Wide Area Networking) was managed by Lyondell, other applications such as Lotus Notes, Citrix and other site-based applications were managed by the MIC team.

Our initial goal in 2007 was to bring SAP, Security and WAN back into the MIC environment so we did not have to depend on Lyondell IT for SAP and infrastructure

support.We had to make some critical decisions such

as building SAP infrastructure in-house versus outsourcing the SAP Hosting to a managed solution partner. The decision to outsource SAP Hosting and Basis support to Secure-24 (SAP Hosting Partner) helped us bring the SAP infrastructure from Lyondell back into our environment within six months.

By October of 2007, we were able to bring SAP, Security and WAN back into MIC IT management. Just as SAP outsourcing, we selected AT&T as a managed WAN service provider, which helped us setup global WAN in a record time. All of these projects were completed by the internal IT resources from MIC without hiring a single contractor.

In 2008 we set a vision that defined our

i n f o r m a t i o n t e c h n o l o g y



goal: “To establish a Global IT support model by providing standard infrastructure and tools to communicate, collaborate and manage information in an efficient manner.”

Our short-term goal was to upgrade the IT infrastructure so we can build a solid foundation for future technologies; the long-term goal was to consolidate, integrate and implement standard solutions and processes across all regions.

The first initiative in 2008 was to upgrade SAP to the latest ECC 6.0 version so as to initiate the process of SAP integration of

Cristal and MIC. The other major initiative was to standardize and upgrade the hardware and network infrastructure to support upcoming projects.

We completed the SAP technical upgrade and were able to start Cristal-MIC SAP integration by early 2009. It was a massive undertaking that involved the collaboration of both Cristal and MIC teams at all levels, which helped complete the project on time. Once again, our accomplishment was without using a single outside contractor.

Following the integration, major business

Standardize

hardware

and software

Consolidate/

integrate

systems and

services

Implement

same

standards

across all

sites

ConsolidateStandardize Implement

IT IMPLEMENTATION STRATEGY

IT VISION

To establish a Global IT support model by providing standard

infrastructure and tools to communicate, collaborate and manage

information in an efficient manner.

DRIVING FACTORS FOR A GLOBAL IT SUPPORT MODEL

• Common platform to facilitate consolidation of Cristal Global

• Easy access to information across enterprise

• Global Delivery Model, providing true 24/7 support

• Consolidation of IT responsibilities to reduce support cost

• Transform IT into a utility model to reduce lead time for new projects

• Negotiate Enterprise License Agreements to reduce hardware/software license cost



processes were standardized, which helped other subsidiaries such as ITP and Bemax to implement the same SAP platform. We now have a global SAP platform supporting all business units.

Over the course of this year, IT has completed major projects that have delivered an updated infrastructure and products that have enhanced the end-user experience. These initiatives have included the Wide

Area Network (WAN) Upgrade, IP Telephony, Microsoft Exchange Migration, SharePoint Portal implementation, Employee Self Service (ESS) Portal, and the SAP Integration.

WANCristal Global recently completed the

migration of its network from AT&T to Verizon. This migration allowed Cristal Global to upgrade its existing backend infrastructure by adding Yanbu to the global MPLS cloud, as well as increase the bandwidth in many locations and save more than 35% on WAN costs. The increased bandwidth provides faster access to business critical applications, as well as accommodates future growth and addition of new technologies such as IP Telephony.

IP Telephony

Implementation of IP Telephony will allow the organization to communicate across global sites over the WAN and IP Telephony network instead of through long-distance calls. Avaya was chosen as the standard platform across all sites.

This also brings up other features such as accessing voice mails through emails, receiving and making calls from your laptop while traveling, Audio Conferencing and Emergency Conference Dial-out.

In case of an emergency, when the first responder dials an emergency number, this initiates a conference bridge and dials out other members of the emergency response team. US, UK, APAC and Saudi have been integrated as part of the first phase.

Global Portal rolloutThe SharePoint Portal has become one

of the most widely used communication vehicles for the organization. It is quickly becoming the major launching platform for many applications being implemented such as EDMS and ESS.

Also, each business unit has a site on the portal, which is used to securely store data and foster effective communication within the department. We will have all regional implementations completed by the end of this year.

CENTERS OF EXCELLENCE (COE)

Mission Statement

The mission is to adopt, promote, and sustain the

development and usage of the right standards,

practices, technology, infrastructure, and knowledge.

COEs will play a key role in ensuring that both the

Business and IT are in alignment. The COEs will

ensure the company’s investment in SAP and other

infrastructure is being maximized through the

utilization of its capabilities wherever possible.

ClarifyPurpose and

DirectionInfluence.Communicate

and Engage

AlignSystems and

Processes

Inspire Trust and

Confidence

SharedLearning

COE

Get to Know your

People

CENTERS OF EXCELLENCE MODEL


24 CRISTAL GLOBE - October 2011 Issue 6 28 CRISTAL GLOBE - December 2011 Issue 7

We have recently launched “MySite” to give users the flexibility to define their own reports, dashboard, personal folders and personal look and feel. It also opens up the possibility of collaborating with other products such as Microsoft Lync. By the year-end, the portal will replace InSite as the tool to post company related communications.

Exchange MigrationExchange Migration has allowed the

organization to replace the outdated Lotus Notes mail application. With Exchange came the new Outlook Mail application which aligned all locations with the Yanbu and Jeddah messaging systems. Deciding to go with Exchange also allowed the other Microsoft technologies such as SharePoint and MS Office applications to integrate with the mail application. Features such as the ability to email a document directly from applications are a major improvement for the organization.

ESS/MSS (Employee Self Service/Manager Self Service)

The ESS Portal is being implemented because the organization is in need of a system that would allow employee absences to be tracked and monitored. The ESS Portal will automate the leave request and approval process, allowing employees to manage their time and attendance by electronically recording hours worked, calling up work schedules, submitting leave requests and obtaining approvals. Implementing ESS will reduce operating costs associated with administration, business processes and transactions.

Email Continuityand Redundancy

We are in the process of rolling out the Cloud-based Symantec Email Continuity solution that provides email access to critical people around the globe in case of a major disaster. People will be able to access emails from their Outlook client or Blackberry and can also sync Calendar entries. Once the email service is restored, all emails sent and received during the failover will automatically

sync with the local server. Users will hardly see any downtime during this failover and switchback operation.

UPCOMINGINITIATIVES

Wireless LANIn the pilot phase, Hunt Valley, RCB

and Jeddah will be upgraded to wireless networking technology. The immediate advantages of WLAN will be along the lines of making access to the production WAN/LAN environment more convenient for collaboration and communication within the executive group.

SAP Contract Lifecycle Management

SAP Sourcing/Contract Lifecycle Management application will enable Cristal Global to optimize corporate contracts by automating their creation, enhancing visibility, and improving compliance.

It will help realize full value of our contracts for both procurement and commercial/sales – resulting in higher profits and lower legal and financial risk. SAP CLM enables management of all aspects of the contract lifecycle; from strategy to creation for negotiations and finalization, and from contract visibility to internal and external compliance and performance monitoring.

Office 2010 andCollaboration Tools

Very soon we will be rolling out Office 2010 for all Cristal Global users. The new version is much more powerful and provides access to Microsoft Collaboration tools such as Sharepoint and Microsoft Lync. Microsoft Lync is a collaboration tool that provides instant messaging, desktop sharing, video and audio conferencing with colleagues across the globe. This will also be integrated with the recently implemented Avaya telephone system to make it a true Unified Communications tool. ❄


OUR BEST SHOTSCristal Global 2011 Photography Contest

Marc Vemeiren from Belgium emerges as the Global Grand Winner of the ‘Let Your Colors Fly” Cristal Global 2011 Photography Contest for his spectacular underwater shot of a jellyfish surfacing. Marc was selected from a field of 12 award winners from all our sites. Each winner will receive a certificate of merit and a monetary award. The contest, which drew 56 participants in all and is the first of an annual series, was held in September and October for the entire Cristal Global family, including their families around the world.


let your colors f ly

t a l e n t

CG DEC 2011-PRINT.indd 31 16/01/12 8:01 PM

BEMAX, THURLA,

AUSTRALIA

SITE WINNERJohn Armstrongis a Geologist in the Bemax Resources Thurla operations. He joined in May 2010.


12WINNERS

EAGLE’S EYEJohn Armstrong excelled in close-up bird photography – one of the most challenging types of nature photography – with this eye-catching example

of an eagle at Atlas Campaspe, our new mine site. Getting close is one thing, capturing the bird in a brilliant manner in its natural habitat, quite another.

FLOWING AND GLOWINGMarc Vermeiren found a great deal of patience surfacing for this very difficult shot of a jellyfish in full form. “You see a whole different

world when you meet them,” he said about the July 2011 encounter in the Mediterranean off Tamariu in Costa Brava, Spain.

Marc Vermeiren is Transport Coordinator for the Willebroek, Thann, Tarragona and Cremona plants. He joined Cristal in March 2011. A passionate underwater photographer, Marc aims to be one with nature when capturing its pristine beauty. “Nature deserves and needs our respect,” he said.

WILLEBROEK, BELGIUM

GLOBALGRANDWINNER


BUNBURY, AUSTRALIA

SITE WINNER Michael Hoggan is a Shift Process Operator at our Kemerton site. He has also worked at Australind and has been with us for nearly five years.

JEDDAH, SAUDI ARABIA

SITE WINNER Omar M. Najjar joined Cristal in September 2010 and is VP-Human Resources. He took to hobby photography at the age of 8 and developed his skills with training in the Kingdom and abroad. He is one of the founders of the most active photography club in Saudi Arabia, Bait Al-Adasah.


SMILING FISHDuring a family holiday in the Western Australia town of Hedland, Michael Hoggan chose

this perfect moment to release the shutter as fish rose happily to the lure of feed from tourists.

CRIMSON LIGHTSOmar M. Najjar went into great detail to compose this monumental mix

of colors from the sky, lights and fountains at the Jeddah Corniche.



UP UP AND AWAYLaura Prager, a hobby film-photographer for eight years,

came through with flying colors with this entry from one of her first digital shoots.

WILD RIDE Amateur photographer Edward Nerad who has a love for capturing wildlife and heavy action pictures

got this combo during a tour in Florida when am intrepid pelican stayed on the boat’s edge to enjoy the precarious ride.

ASHTABULA II, OHIO,

USAO

SITE WINNEREdward Neradhas been with us since 1990 as a Process Technician. He took to photography with a basic 35mm camera and developed his knowledge with books and professional advise.

ASHTABULA I, OHIO, USA

SITE WINNERLaura Prageris married to Fred Prager who joined us in 2010 as an IT Operations Analyst. From Akron University, Laura is mainly self-taught with the help of a local club. About film photography, she said, “As we all know, the 35mm was a surprise every time you developed pictures.”



FANTASTIC TIMECarla de Carvalho Dias Lima was in the garden of our Bahia plant in Camaçari, Brazil, when she saw a hovering hummingbird slip into its nest. She rushed to grab her camera

and returned to a surprise – the bird readily struck a pose, all settled and looking straight into the lens. “I was in the right place at the right time. It was the most beautiful picture I ever took.”

BAHIA, BRAZIL

SITE WINNER Carla de Carvalho Dias Lima, a journalist and daughter of a seamstress and a photographer, has been with us for the past six years as a Communication Analyst.

IN MOTHER NATURE’S WOMBOut on a walk in the famed Alsace vineyard of Rangen with his wife and three-old daughter, Andre Piragibe spied harmony in this view of the chimneys

of our Thann plant, the oldest chemical site in Europe. “This 200-year-old plant has always made efforts in respecting environment and communities,” said Andre.

THANN, FRANCE

SITE WINNER Andre Piragibe, a Brazilian mechanical engineer living in France, joined us in July 2005 as Maintenance Superintendent for the TIO2 plant in Thann and became a Manufacturing Superintendent for the TICL4 plant in 2009.



CUDDLE BUGSSarah Corfield is a fun-loving mom of three “with a camera permanently attached – if there’s a photo opportunity, I’m taking it!” And there she was seated in the garden whilst on a

visit to her grandma’s when she spotted this cluster of ladybirds across the fence. “Seeing as my camera goes everywhere with me, I had no problem capturing this brightly colored lovely image,” she said.

DEW DROPSGiji Jose found pearls of dew adorning every leaf and flower after a short morning drizzle in the courtyard

of her home in the lush green south Indian state of Kerala. “A magnificent moment… an everlasting memory,” said Gigi.

YANBU, SAUDI ARABIA

SITE WINNERGiji Jose is the wife of Jose Mattamana Thomas who joined us 20 years in the Production Department and is Shift Supervisor.

STALLINGBOROUGH, UK

SITE WINNERSarah Corfield is married to Ben Corfield, a Maintenance Technician who joined us in 2007.



BEAUTIFULLY RESTINGLaurie Michelle Bell depicts the artistry of

nature in this purple passage by fall butterflies in her home garden.

BALTIMORE RESEARCH

CENTER, MARYLAND, USA

SITE WINNER Laurie Michelle Bell, from New Jersey joined the Cristal family in Maryland in September 2007 on marrying David Bell, currently a Senior Technical Service Chemist-Coatings who has been with us since 1998. Laurie is creative and artistic and aspires to photograph the simple beauties of life.

A SCENTED CONVERSATIONVisiting his parents in Marseille, southern France, Pierre Yves Fernand Jaquet was in the garden of their home when they saw a parrot deep in

ponder amid the blooms. “Never when I was growing up had I seen such a bird,” said Pierre who found that parrots have been frequenting their yard in recent years.

HUNT VALLEY,

MARYLAND, USA

SITE WINNER Pierre Yves Fernand Jaquet moved to the U.S. 16 years ago and has been with Cristal marketing TiO2 for the past 12 years.


Kelly SmythBemax, Australia

Rick LaningBunbury, Australia

Danielle JolliffAshtabula, Ohio

Daniel AshirovHV, Maryland, USA

Matthew MartinRCB, Maryland, USA

Marcio Oliveira SouzaBahia, Brazil

Sandrine PuechThann France

Lois SandsStallingborough, UK

Stephen SawtellBemax, Australia

David VarkettAshtabula, Ohio, USA

Valerie Chavis-KoskoHV, Maryland, USA

Rosana Maria T. JustoBahia, Brazil

Beniot Le GallParis, France

Fahad AlnanihJeddah, Saudi Arabia

Michelle NobbsStallingborough, UK

Leith BellBemax, Australia

Linton SmithBemax, Australia

Mark GoodmanBemax, Australia

Alexandre FinesRCB, Maryland, USA

Marc CelenWillebroek, Belgium

Christian HaeffeleThann, France

Tariq HafizJeddah, Saudi Arabia

Albert P. BugayongYanbu, Saudi Arabia

Amiel PereiraYanbu, Saudi Arabia

Shane GartonBunbury, Australia

Tom Betras Jr.Ashtabula, Ohio, USA

Helen PeacockBunbury, Australia

Shayla HarrisonAshtabula, Ohio, USA

Skylar EnsorHV, Maryland, USA

Dennis LindopWillebroek, Belgium

Alain HansThann, France

Irfan & Naseema ShafiJeddah, Saudi Arabia

Mike HuntleyStallingborough, UK

Daniah NahasJeddah, Saudi Arabia

Haas GuyThann, France

Andrew GowingStallingborough, UK

Ashock DimriYanbu, Saudi Arabia

Joerg MilbrandtStallingborough, UK

Fahad AlshemasiYanbu, Saudi Arabia

Michel MeyerThann, France

Adriana Strauch CostaBahia, Brazil

Evan ChapmanRCB, Maryland, USA

Daniel De Mello PereiraSao Paulo, Brazil

Jean-Luc LambertThann, France

Izolda Maria SilvaParaiba, Brazil

Manzano Xiong AkhtarRCB, Maryland, USA

Amye SniderHV, Maryland, USA

John R. NarinesinghRCB, Maryland, USA

William F. ZallAshtabula, Ohio, USA

Fred Prager,Ashtabula, Ohio, USA

Pieter & Riana BekkerBemax, Australia

Marty CarrickAshtabula, Ohio, USA

Amy JohnsonHV, Maryland, USA

Gemma ManganoBunbury, Bemax

Norman AndrasyAshtabula, Ohio, USA

Kara MortonBunbury, Australia


ROADMAPS TOOPERATIONALEXCELLENCEOperations in a flat world are increasingly throwing up a new set of challenges, writes M.M. Paniel as he examines how Infosys BPO and Toyota are finding their own interpretations to implement Operation Excellence in their global business models.

“The World Is Flat,” The New York Times columnist Thomas Friedman famously declared back in 2005, while writing what he

called a A Brief History of the Twenty-First Century. He came to the conclusion after a visit to Bangalore, where information technology (IT) and business process outsourcing (BPO) industries were going global. There he met Nandan Nilekani, the erstwhile CEO of the Indian IT major Infosys – and a protagonist of the book – who explained how his colleagues seamlessly connected live from Bangalore with partners and clients in New York, London and Boston and implemented a project in Singapore.

But in the second decade of the 21st century, operations in a flat world are increasingly throwing up a new set of challenges to Indian IT firms.

They are forced to change.In a recent interview, D. Swaminathan,

managing director and CEO of Infosys BPO – the BPO arm of the IT major – said that for a company with more centers abroad than in India, employing people of 42 nationalities, the growth opportunity was in transformation instead of transactions.

“We work with clients across multiple geographies,” Swaminathan said. “Unless one company brings in large doses of technologies, it cannot streamline work and thereby haul growth.”

For tech infusion and streamlined

c a s e s t u d y


‘We work with clients across multiple geographies. Unless one company brings in large doses of technologies, it cannot streamline work and thereby haul growth.

D. SwaminathanManaging Director and CEO of Infosys BPO,

the BPO arm of the IT major

management and to ensure sustained business performance, Infosys BPO has identified a key principle: Operational Excellence (OE).

Swaminathan is not alone in espousing this principle. “OE is certainly a big buzz phrase in Indian IT,” says industry observer and brand guru Harish Bijoor.

In management parlance, OE stands for a new way of leadership, teamwork and problem solving. The idea is to bring about continuous improvement throughout the organization by focusing on the needs of

the customer, empowering employees, and optimizing existing activities. It stresses the need to continually improve by promoting a stronger atmosphere of teamwork with overall quality improvements for employees and customers.

The ultimate aim is a better enterprise.Bijoor explains it in the context of IT: “Once

having completed Phase 1 of offering end-to end-services, OE offers a cost-saving, time-saving and, at times face-saving, investment edge.”

The IT-BPO industry umbrella body,



HOW OE WORKS FOR US ON THE GROUNDPradeep Erinjery, CEO of Thirdware Solutions Ltd., an IT services company with a focus on enterprise applications, explains the nuts and bolts of Operational Excellence.

The IT Services business model can be segmented into three approaches – staffing, services and solutions.

In staffing, the service provider is primarily providing resources to the customer and the focus is on skills

and availability of the right people at the right time and price. In the services approach, the service provider undertakes a project approach with some pre-agreed deliverables to the customer. Here, project management and technical skills to complete the project on time, as well as ability to transfer knowledge to the customer, are important.

In the solutions approach, the service provider identifies a “business issue” and works with the customer to leverage technology to address the business issue.

Thirdware focuses on the solutions approach and hence has to structure the business development, sales, pre-sales/consulting and delivery teams to embrace a consultative approach.

The business development team focuses on insights into value creation for target customers. For example, if your target customers are in the beverages industry and they are constrained by a reverse logistics challenge (eg. empty glass bottles need to be available to keep the manufacturing lines running), then finding solutions to address this specific problem using technology is where you will find success.

The consulting team works to improve the image

and networking of the service provider with the decision-makers in the target industry.

The delivery team has to have a blend of functional, technical and management skills to address various levels of leadership with the customer environment. Technical skills are important but they make up only 20% of the challenge. The most important task is to focus on the key issues and orient the customer leadership to focus on those issues and architect the solution to address the primary issue. Big problems are solved by breaking them into small parts and picking them up one at a time.

The challenge for the technology teams is that they are not going in with a firm product to address a specific problem; instead, it is a dynamic environment for them. IT needs to take into account the maturity of the customer’s team and the urgency of the issue. More often, success is in making the customer feel he is finding the solution to his problems. His ownership in such scenarios is very high.

How do you build a delivery team for such skills? Domain knowledge is not built ground up but has to be sourced from the industry. But in selecting such consultants, their ability to assimilate technology and people is very critical. Technical teams need to work with the functional specialists to understand the holistic design of the solution and be willing to adapt to changes. ❄

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NASSCOM, which lays stress on value addition and innovation to pave the way forward for business growth, has adopted OE as a whole. A 2007 McKinsey report identified OE as a way to capture global business for Indian IT. Discussions revolve around driving OE as a mindset conducive to continuous improvement, putting in place a strong people platform with multiple engagement channels and driving a robust governance framework.

The contention is that the success of Indian firms in delivering software was built on the back of efficient process models and quality frameworks. So, the next logical steps involve business excellence, shareholder wealth creation and return on investment (ROI). NASSCOM’s official role now includes promotion of OE, besides boosting trade, talent, infrastructure, innovation, security and partnerships.

Infosys BPO defines OE in terms of a roadmap to differentiate customer experience. The concept would translate to consistently going beyond expectations, changing the customers’ experience or businesses.

As Swaminathan puts it: “Our focus is really to leverage the emerging technologies and smarter solutions to make our customers look smarter.” In an Infosys View Point paper, As Rama Mohan K.V. and Raja V. wrote that streamlined processes help minimize costs and hassles and promote enhanced user experience. Since processes are not seen in silos but in their span across multiple functions, it promotes a culture that abhors waste and rewards efficiency.

Toyota’s strategic weapon

Historically, in the non-IT sector, carmaker Toyota has been seen as a company that has turned OE into a strategic weapon. Toyota’s “lean manufacturing” practices are legendary. The management principles include these key slogans – kaizen (just-in-time), jidoka (one-piece flow), and heijunka (leveling).

Just-in-time manufacturing means producing the necessary items in necessary quantities at the necessary time.

Production leveling is all about scheduling of production process in such a way as to

ensure inventory control, reduced lead times and production of a combination of products exactly as much as the customer requires.

One-piece flow means being able to stop production lines in the case of a problem, delay or substandard products. Together, these practices – part of the ‘Toyota Way’ – ensure an assembly line with a human touch. Back in the 1980s, OE helped Japanese cars quietly overtake their American counterparts.

Interestingly, Friedman used Toyota’s luxury brand Lexus as the symbol of prosperity and enterprise in the title of his 1999 book on globalization: The Lexus and the Olive Tree.

Flash forward to the post-recession global IT. Shifting gears toward more efficient technology and managerial practices is a worldwide phenomenon, a logical outcome of a maturing globalized business.

“Global operating models are showing signs of strain at many companies,” wrote Enrico Benni, Keni Muto and Kevin Wei Wang of McKinsey in a paper published in the first week of December. They argued that corporates often have to draw a thin line between efficient common processes and being responsive to the specific needs of local businesses. It involves complex, push and pull factors that could lead to a kind of mess – unwieldy operating models, competing priorities and diverse business interests. The obvious solution is information technology (IT), the authors argue. At the same time, the tension between standardization and customization is a problem for IT majors too, they said. So, implementing OE becomes a techno-managerial challenge in itself.

Perhaps that is why even Toyota OE practices are evolving further as the company redefines its economics of scale. In a recent story in the Wall Street Journal, Toyota President Akio Toyoda, grandson of the company’s founder, said: “High speed and high volume output may no longer be such a good fit for us. We need to retool for production with simpler, slimmer and more compact equipment.” ❄


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