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2018 Issue 1 valvescommunity® Your update on HEROSE GROUP Title story Good old Korn is hip at last – visit to August Ernst Environment LNG instead of coal: positive outlook in Asia Inside HEROSE MACK Valves: new faces in Pune and Bayswater Good old Korn is hip at last Now the wave of Craft beers and gin has subsided more and more fashionable bars are discovering grain spirits. Visit to August Ernst, the market leader in Germany Dear Readers, Things are looking up if the news from China is anything to go by: the administration in Peking has clearly resolved to deal with the problem of air pollution once and for all. LNG is to be used instead of coal for the generati- on of electricity and heat as its impact on the environment is signifi cantly less. HEROSE is not only benefi tting from this change commercially – it also gives us a sense of great satisfaction that our valves are also helping to improve air quality. More details on page 4. The fi rst months of collaboration with our new subsidiary MACK Valves have turned out to be very successful. The impetus and energy for this development provided by two persons in particular. The tasks underta- ken by Björn Stoll and Spencer Jenner are described on page 5. Dirk M. Zschalich Managing Director Grain or 'Korn' is something that is es- sentially German. It has been distilled for more than 500 years in Germany – and almost nowhere else. Grain is integral to what is referred to in Germany as the 'Herrengedeck' – a grain brandy served in corner pubs alongside a beer of some description. Marksmen‘s and barn fe- stivals would also be far diff erent aff airs without the clear liqueur. Grain is seen as down-to-earth, as something for the people, but certainly not as hip. Until now perhaps? Following the craze for craft beers and various types of gin, Craft Korn, of which some promising examples alrea- dy exist, is fast becoming all the rage on the bar scene. Presented in chic bottles, and steeped in a history rich in aromatic grains and craftmanship honed to per- fection over many years. The company August Ernst from Bad Oldesloe, mar- ket leader in all aspects of grain brandy in Germany, is experimenting with new types – but will not say much more than this. 'Oldesloer Weizenkorn' – Germany‘s best selling grain brandy – is a classic beverage produced by the company. Five million bottles roll off the produc- tion line every year. A wide range of liquors, fruit brandies and mixed be- verages are also produced, not just for the German market, but also for Spain, Israel and Japan. The company has already received many accolades and medals; the most recent was in 2017 when the grain brandy distillery was awarded the prize for sustained product Advert for Oldesloer Korn

Title story All about Korn: Head of Production Stephan Röding in the warehouse View of filling facility: nowadays hip flasks are rolling off the production line quality by DLG society), among other awards. The distillation process (German agricultural the valves. is also supported by HEROSE fittings and safety "They have been used since the distillery was built in 1990 – and we have always been impressed with results", says Christoph Schacht, head of the distillery. As the fine distillery is fully enclosed for customs and excise reasons and cannot be accessed, HEROSE needed to design special control elements for the gate valves: "These are opened and closed from the outside via a handwheel to drain off the fusel oil when the need ari- ses", explains Christoph Schacht. There are so many different distillation stages that there are 22 of these handwheels. The handwheels and valves are up to 4 metres apart – and this distance is brid- ged by spindle extensions. Our end product, grain brandy, has 32 % alcohol by volume and "Oldesloer Doppelkorn" has 38 %." What makes the Oldesloer grain bran- dy taste so good? Head of Produc- tion Röding: "As we still carry out the distillation ourselves, our grain brandy is especially aromatic. We also use a high-quality spring water, which also makes a difference." The company sources the wheat from a local farmer. Distillation only takes place between October and April – when grain is enough to last one year. Röding: "One side product of distillation is malt residuum. We sell that as high-quality feedstuff for cows to farmers. Malt resi- duum is however only used in the stall pe- riod. Distillation is suspended from April to October because animals are put out to pasture in this period which means the malt residuum is not required. The company in Oldesloe is highly committed to transparency for the consu- mer. Röding: "As president of the Federal Association of the German Spirits Indus- try and Importers BSI, our boss Thomas Ernst is very serious about promoting al- cohol consumption based on enjoyment and moderation, an approach which has also been supported since 2009 by the BSI campaign 'Enjoy moderately'. Here‘s how grain is distilled How is grain brandy actually made? Stephan Röding, Head of Produc- tion explains: "Wheat, our starting product, is ground in roller mills and mixed with hot water: the result is refer- red to as 'sour mash'. Enzyme-rich malt is added to the mash to sweeten the ce- real starch. The sweet mash obtained is cooled and fermented with yeast thus forming ethanol (ethyl alcohol). The actu- al distillation process comes next. The al- cohol vaporises and undergoes multiple distillation in order to remove undesira- ble odorous and flavouring substances. Water is added to the fine grain distillate with high percentage volume of roughly 96 % until a drinking strength is obtained. 1 2 3 4 5 6 7 1. The grain is ground and turned into paste: sour mash. 2. Barley malt is added to convert starch into sugar. 3. When combined with yeast, the sugar changes to alcohol and carbonic acid. 4. During the distillation process the alcohol is released as vapour then collected, cooled and liquefied. 5. A second distillation removes undesirable flavouring and odour substances. 6. Grain brandies are stored in oak and diluted to drinking strength. 7. Bottling 2 valvescommunity 1/ 2018 HEROSE GMBH

View of fi lling facility: nowadays hip fl asks are rolling off the production line Master Distiller Christoph Schacht Facts and fi gures The company is founded in 1898 by Master Distiller August Ernst. Before long the company specialities 'Oldesloer Korn' and 'Oldesloer Kümmel' become fi rm favourites in the surrounding area. On the 50th anniversary of the company in 1948, the main customer is the gas- tronomy sector, but initial contacts have already been established with the food and specialist wholesale trade. Between 1978 and 1992, August Ernst GmbH & Co. KG acquires renowned spirits manuf- acturers such as the fruit distillery Specht or the Greiz liquor factory and herb di- stillery in Thüringen. In 1990, the new distillery is completed, in 1993 a fourth generation family member Thomas Ernst takes over the role of Managing Director. The company has 40 employees in Bad Oldesloe and a further 22 in Meerane in the district of Saxony. A landmark in Bad Oldesloe: the main building of August Ernst HEROSE valves in action Safety valves for gas and steam applications Type 06380 Gate valves for non-combustible non-toxic liquids, gases and vapours, type 09061 Sizes: ½" to 2" Pressures: 0.2 to 20 bar Temperatures: –10 °C to + 185 °C –10 °C to + 185 °C Connections: threaded Materials: brass and bronze Sizes: DN20 to DN80 Pressures: up to 16 bar Temperatures: – 10 °C to + 200 °C – 10 °C to + 200 °C Connections: fl anged connection to fl anged connection to DIN EN 1092-3 PN16 Materials: brass and bronze valvescommunity 1 / 2018 HEROSE GMBH 3

Future Not always clear, as the image shows: view of Great Wall of China Positive outlook in Asia China, Indonesia, Mongolia: three giants opt for LNG Air pollution in China hits record levels time and again, especially in the north of the country. The main culprits are car ex- haust fumes, steadily increasing energy demands and associated emissions due to the burning of coal. In coming years, gas is set to replace coal more and more as the biggest energy source. HEROSE sales director Dr. Uwe Balle: "Decentralised energy supply plants based on LNG technolo- gy will be built throughout China." The potential is huge – and HEROSE stands to gain from it. A company in Shanghai currently manufactures 200 LNG tanks every month, for example – also with val- ves from Bad Oldesloe. Dr. Balle: "We de- liver a formidable number of actuated and safety valves to Shanghai." The new, environmentally-clean plants are designed to supply both electricity and heat to the surrounding areas and towns. The valves are produced and fit- ted in Germany and at the HEROSE sub- sidiary in Dalian, China. "In 2017, the number of orders we received considerably increased, mainly due to the demand from China", Dr. Balle recalls. "We are therefore now starting to enjoy the fruits of our labour thanks to many years spent investing our time and energy in China. HEROSE has developed the right products at the right time, has acquired the necessary certifications and nurtured essential contacts. And last but not least, the founding of our subsidiary in Dalian has lent further impetus to this exciting development." There is also huge scope for expansi- on for HEROSE in other Asian markets. Dr. Balle: "Take Indonesia, for example. Planning for 35 gigawatt projects is un- derway to stabilise the national energy supply vis-a-vis demand. Furthermore, plans are afoot to establish separate LNG power plants on many of the 1000 or more Indonesian islands. And rumour has it that in Mongolia the government is also planning large energy projects involving LNG." a i l o t o F - c n o r t e y e i Sales Director Dr. Uwe Balle HEROSE valves in action Check valves type 05416 Sizes: DN10 to DN150 Pressures: up to 50 bar Temperatures: – 196 °C to +120 °C Connections: butt weld, socket weld, threads, flanges Materials: stainless steel, bronze Gate valves type 01321 Sizes: DN10 to DN150 Pressures: up to 50 bar Temperatures: – 196°C to + 120 °C Connections: butt weld, socket weld, threads, flanges Materials: stainless steel, bronze Cryogenic-Globe valves with Pneumatic Actuator type 01353 Sizes: DN15 to DN80 Pressures: up to 50 bar Temperatures: – 196 °C to + 120 °C Connections: butt weld, socket weld Materials: stainless steel Safety valves type 06388 Sizes: DN6 to DN50 Pressures: 2.0 to 50 bar Temperatures: – 196°C to + 185 °C Connections: threads, flanges Materials: stainless steel, brass, bronze 200 of such tanks are currently produced every month in Shanghai 4 valvescommunity 1/ 2018 HEROSE GMBH

MACK Valves: three men with a recipe for success Björn Stoll is Chief Operating Officer in Pune, Keith Stewart shows Spencer Jenner the ropes Initial appointments following takeo- ver of the Australian/Indian valve manu- facturer MACK by HEROSE: Björn Stoll, until now involved in product planning and control at HEROSE, is now Chief Operat- ing Officer at the MACK production site in Pune, India. One of his tasks in this role is to ensure manufacturing processes run as smoothly as possible. Spencer Jenner was appointed as Area Sales Manager for HEROSE and MACK in Asia and the Pacific Region. Formerly the Sales Manager of MACK in Australia and New Zealand, he is now taking on the post previously occupied by Keith Stewart, who has built up for- midable business for HEROSE in the Far East since 1999 and will be show- ing Jenner the ropes over the next few years. Spencer Jenner explains to vc: "I‘m very much looking forward to the new challenges that lie ahead. One of my aims is to further expand the field of cryogenics for HEROSE in Asia. I can only hope that I can do justice to the incredible legacy Keith Stewart has left behind. That in itself is a daunting prop- osition." And what advice does Keith Stewart have for his successor? "When all is said and done, this isn‘t really a desk job – to be an effective sales- person you have to be in the field as often as possible and know the markets inside out. In-depth knowledge of the products is also indispensable." Spencer Jenner therefore visited the headquarters of HEROSE in Bad Oldesloe for two weeks. Björn Stoll in his office in Pune TÜV Nord give the green light Internal visual inspection and strength test of the pressure vessels At the end of 2017, TÜV Nord carried out an internal visual inspection and a strength test on the pressure vessels at the HEROSE testing facility, and the outcome was successful. During these tests, the vessels were pressurized to 1.3 times the maximum permissible operat- ing pressure and hydrostatically tested for 30 minutes. Including preparation and subsequent processing, the testing lasted for two days. HEROSE is using the pressure vessels to supply two test benches – one for air and one for water. With the backing of the TÜV approval HEROSE is safeguarding future new and further development of the safety valve model ranges. The next strength test is due in ten years time, the internal visual inspection already in 2022. The vessel test was prepared and at- tended by the employees at the testing facility, the tool design and construction division, and the company 'Druckluft- technik Nord' in Bad Oldesloe. Spencer Jenner and Keith Stewart are looking after the market in Asia and the Pacific Region Björn Stoll now feels quite at home in the Indian city of Pune – despite the cul- tural differences, which are sometimes immense. "In order to establish a sus- tainable working relationship with my management employees for example, I first had to learn to talk in-depth about private matters. The morning ritual of asking after the family is now simply part and parcel of the job." Stoll has in the meantime adopted a more relaxed management approach although the Indian employees still expect me to tell them exactly what I want from them." The primary objective of Stoll is to bring about a noticeable increase the produc- tion volume this year: "At the moment my priority is to analyse, redefine and im- plement the operational processes and make sure they become firmly estab- lished in the long term. The established methods of Lean Management are help- ful in this regard." n Lothar Lindau (HEROSE tool design and construction) taking part in internal visual inspection of a vessel valvescommunity 1 / 2018 HEROSE GMBH 5

Customers HEROSE valves on board the new AIDA The ordering party is Marine Service GmbH in Hamburg, specialist for maritime LNG applications worldwide AIDA is the benchmark – and HEROSE is on-board: in February 2017 construc- tion of the world‘s first cruise liner that runs exclusively on LNG began at the Meyer shipyard in Papenburg. The ship with approx. 2600 cabins should be put to sea in Autumn 2018, another type of the same construction will be launched 2021 in Papenburg. Around 350 HEROSE valves from DN15 to DN200, weighing seven tonnes in total, are being used in the construc- tion of the first ship, the AIDAnova. The valves have a Fire-Safe certificate and can be operated manually or pneumati- cally. Valves that are used to regulate the required gas flow via positioners are also included. The order was quite a challenge for HEROSE. As work progressed, it turned out that various modifications were re- quired. All work was supervised and the necessary cryogenic tests were approved by RINA, the Italian ship classification society. HEROSE was commissioned by Marine Service GmbH in Hamburg, a company specialising in maritime LNG fuel gas systems with a formidable repu- tation worldwide. Marine Service GmbH is also responsible for the design of LNG systems in new AIDA construction pro- jects – from checking the drawings to supervising the construction and delivery of the hardware as well as complete auto- mation and ultimately the commissioning Supporting AIDA on the test bench – the globe valve DN200 and delivery of the overall system to the Meyer shipyard and shipping company. To test the LNG engines, Marine Ser- vice GmbH developed an in-house test bench where the valves supplied can also be checked within the framework of the overall LNG concept. Currently, LNG is the most environmen- tally friendly and low emission fuel. The nitrogen oxide emissions are reduced by up to 80 percent, the emission of car- bon dioxide by another 20 percent. Soot particle and sulphur oxide emissions are also entirely ruled out. However, due to a lack of LNG supply infrastructure, the rate of acceptance of this new technology at the ports is somewhat slow. Only 103 LNG ships are being operated worldwide. Bernhard Meyer from the Meyer shipyard: „Once other shipping companies see the AIDA being fuelled by LNG at the ports which means it can remain at sea for 14 days or more, they might be prepared to put their reservations to one side ..." Delivery is a one-time event – Service has ongoing demand Significance of restructuring in the area of customer service in specific terms HEROSE continues to grow – and as the business increases in complexi- ty, restructuring in the area of service is also inevitable (vc reports). Matthias Reinhardt, Head of Customer Service and Testing Facility: "In light of all the- se changes, we want to respond even more effectively to the needs of our cu- stomers." Keyword: Project business. Customer often want more from HEROSE than just valves, they also increasingly want aftersales ser- vice from us, in other words: advice, maintenance and customer service. Example: AIDAnova. This cruise ship runs on LNG, is currently being built in Papenburg and incorporates HEROSE valves. Reinhardt: "At the moment I‘m of- ten at the Meyer shipyard in Papenburg to advise and assist with the installation of the LNG tanks." Reinhardt anticipates that in future customers will be calling ever more frequently on HEROSE service engineers. With this in mind, a new em- ployee, Sebastian Jacobsen, has been brought on board. / n e t d n a S k r a M o t o F A H : Changes are also afoot in the area of customer complaints. Reinhardt: "Custo- mers can now go to our homepage and fill out a detailed complaint form – at any time of day, 365 days of the year." We are committed to replying to every customer complaint from Monday to Friday within 24 hours. Mirka Derlin and Sebastian Jacobsen work in the department of customer complaints – when they are not visiting customers in the field that is. The testing facility which is run by Sascha Schneuer, Matthias Reinhardt‘s 6 valvescommunity 1/ 2018 HEROSE GMBH

How to contact us: HEROSE GMBH ARMATUREN UND METALLE Elly-Heuss-Knapp-Straße 12 D-23843 Bad Oldesloe Phone: +49 4531 509-0 Fax: +49 4531 509-120 info@herose.com www.herose.com Subscribe for the magazine: valves-community.com Representative in Malaysia, Indonesia and Singapore Malaysia, Indonesia and Singapore have around 300 million inhabitants and their economies are expanding at an extraordi- nary rate. Sermax has been promoting and supplying HEROSE products in this region since 2005. A total of 62 employees work in the offices of the three countries. Sermax Cryogenics Sdn Bhd No. 20, Jalan Anggerik Mokara 31/52 Kota Kemuning, Seksyen 31 40460 Shah Alam, Selangor, Malaysia Tel.: +60 3/51 22 51 52 (ext. 222) Fax: +60 3/51 22 75 22 fongcf@sermax.my From Finland to Bulgaria Following the retirement of Manfred Kadner, his sales territory needed to be reassigned. Ralf Dankert-Paulsen is looking after one part, and the new Area Sales Manager Maikel Malki is looking after the other. He is looking after North Germany and Southern European countries among others, while Dankert-Paulsen is looking after Scandinavia and Eastern Europe. Ralf Dankert-Paulsen Area Sales Manager Mobile: +49 171 581 87 24 ralf.dankert-paulsen@herose.com Maikel Malki Area Sales Manager Mobile: +49 151 657 27 811 maikel.malki@herose.com The Sermax Cryogenic-Team (from left): Bryan Fong, Michael Tan, Wayne Goh, Kelvin See Area Sales Manager Ralf Dankert-Paulsen and Maikel Malki (from left) s e s u r i C A D A I : o t o h P AIDAnova on the high seas deputy, Martin Boyungs and Hans- Hermann Simonsen will also carry out inspections for the R&D department at HEROSE in future – as an in-house service. And finally ... on the subject of training. Reinhardt: „In future, customers will want the opportunity to familiarise themselves with the design of our valves at Bad Oldesloe and find out more about how they work so can identify and eliminate n faults themselves.“ valvescommunity 1 / 2018 HEROSE GMBH 7

News n Extension of Chinese TS approval for safety valves: during the 3-day audit in Bad Oldesloe the auditors gained a comprehensive overview of the technology and supporting documents. HEROSE managing directors and auditors n HEROSE passed the ABS audit once again and can therefore produce corresponding valves once again in the coming year. The main focus of the audit by inspector Ionut Razvan Galav was on ensuring that the documents were correct. A final round of the pro- duction facility provided him with the opportunity to gain an overview of the production processes. Trade fairs HyVolution, France, Paris 4 to 5 April 2018 Power Forward, USA, Denver 16 to 19 April 2018 Gasworld Europe Conference Netherlands, Amsterdam 23 to 25 April 2018 ACHEMA 2018, Frankfurt 11 to 15 June 2018 Coilwinding Expo (CWIEME), Berlin 19 to 21 June 2018 Congratulations ... on your 10th company anniversary Nicole Klütz on 1 April 2018 Kai Fischer on 13 May 2018 Adem Kilic on 16 June 2018 Imprint Publisher: HEROSE GMBH, Bad Oldesloe Responsible for the content: M. Esche, HEROSE GMBH Editor: C. Wurr Concept: gugelot gmbh, Hamburg Illustrations: HEROSE GMBH, Title: Shutterstock All rights, printing errors and mistakes reserved. The next issue will appear in June 2018 8 Congratulations on final exams At the start of the year, three trainees at HEROSE successfully sat their final ex- ams. Malte Sczepan is now an industrial sales representative and works in internal sales. Jascha Kulke is now a cutting ma- chine operator by trade and will be put- ting his newly acquired skills to good use in the assembly division. Florian Besch completes his dual studies in the area of mechanical engineering and also took the examination to qualify as a cutting machine operator. He also achieved the best test performance result in the coun- ty for an in-house assignment. From left: D. Zschalich, F. Besch, M. Sczepan, J. Kulke, E. Dölschner Successful seminar in Tehran Well attended: seminar in Tehran Around 40 representatives from the Ira- nian gas industry took part in a HEROSE seminar in Tehran. Ralf Dankert-Paulsen, Area Sales Manager for Iran: „We not only presented our entire range from the CRYOGENIC, INDUSTRY and ENER- GY areas, we also presented products by other partners. A central theme was the debate surrounding the functions of safety valves, and opening and closing pressure differentials.“ Dankert-Paulsen was happy with how the seminar went. Each of the participants received a present from Lübeck – marzipan. Babak Fahardi , Thorsten Zeug and Ralf Dankert-Paulsen Win a SunLight solar table lamp! How many cabins will the new AIDAnova have when it sets sail in the Autumn of 2018? A 1800 B 2600 C 4000 Answer by e-mail or fax by 2 May 2018 to: win@valves-community.com, Fax: +49 4531 509 120 HEROSE employees and their immediate family members are not eligible. The judges‘ decision is final. Congratulations to the winners of a YOURTURN daysack: Mr. Alain Guénard, AIR LIQUIDE GLOBAL E&C SOLUTIONS FRANCE S.A., France Mr. Kelvin See, Sermax Cryogenics Sdn Bhd, Malaysia Mr. Marinco Lefevere, DEMACO HOLLAND BV, Netherlands Mr. Frank Freytag, BUSE Gastek GmbH & Co. KG, Germany Mrs. Karin Pieper, Aerzener Maschinenfabrik GmbH, Germany valvescommunity 1/ 2018 HEROSE GMBH