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2019 Issue 1 valvescommunity® Your update on HEROSE GROUP Obituary A visionary has gone from us Impressions Personal memories of Wilfried Zschalich Technology Quick aid for the Lüneburger ironworks Wilfried Zschalich, as one knew him Wilfried W. Zschalich: A visionary has gone from us Dear Readers, For me personally and my family, un- fortunately 2019 did not begin very well. With Wilfried Zschalich, I have lost not only my father but also an appreciated advisor and sparring partner in business interests; I will miss him in all of his roles. In this vc, I would like to refl ect on the man that had managed the company HEROSE for 40 years with passion. I am sincerely thankful for the overwhelming sympathy and the comforting words from the surrounding employees and partners as well as friends of the house of HEROSE! Despite all grief, consternation and review, in this edition we also want to take a glance on current and future develop- ments. And on page 6, you will fi nd a report about how an ideal customer service looks like today. Dirk M. Zschalich Managing Director At an age of 78 years, Wilfried W. Zschalich has passed away on the 3rd January 2019. With the death of the senior partner, HEROSE has lost the man that, with his farsighted decisions in the middle of the 1990´s, laid down the foun- dation stone for the success of the com- pany today. As Wilfried Zschalich began his occupation as controller at HEROSE in the Hamburger Stresemannstraße on 1st January 1971 at an age of 30 years, nobody would have thought – at the least himself –, which moving, exciting and fi nally, successful development of the company would take: from a ship fi tting manufacturer that was threatening to fail at the end of the 1980´s to one of the global leading companies in the valves industry today. Born on the 3rd June 1940 in Hasten- beck (district Hameln/Pyrmont), after completing his A-levels, Wilfried Zschalich studied business administration. Being employed as a newly appointed graduate merchant between 1964 and 1970 in an auditing company in Hamburg, he then changed to T. H. Rose KG in the Stre- semannstraße. The company HEROSE, founded in 1947, was a sole sales compa- ny then that sold products of T. H. Rose KG and HERO Armaturenwerk GmbH in Bad Oldesloe – both companies that from which the company originated from today. Basically, ships fi ttings made from red brass as well as safety and globe valves were produced for mechanical engineering and building services. As Wilhelm Klauke, the sole sharehol- der of T. H. Rose KG, 1973 deceased, Wilfried Zschalich took over the manage- ment and the executor. Diffi cult owner- ship structures did not allow important decisions for the future to be made for a long time. In the middle of the 1980´s, there were only few in the trade that gave the small consolidated companies around HEROSE any chance. But the company manoeuvred itself through. At the end of 1987 the production location of T. H. Rose KG in the Hamburger Stresemann- straße was abandoned and relocated to

Obituary HERO at Bad Oldesloe, the administrati- on department followed in 1992 and ren- ted an office in the Bad Oldesloe Mohr shopping centre. The major change came in 1996 as family Zschalich took over the company and began with bold investments. that the recognised The deceased senior partner had long future of HEROSE was in cryogenic engineering – and started up. At the end of 1996 we moved into the new HEROSE building in the Elly-Heuss-Knapp-Straße. This was not only for organisational reasons: the old HEROSE factory in the Oldeslo- er Straße was "dripping with oil". We could only convince our customers that HEROSE also manufacture cryogenic valves free of oil and grease in the new halls. It was uphill from there. With the founding of HEROSE Limited in 1998, the company presence was incre- asing in many parts of the world. Today, the export share of HEROSE is at about 75 percent and the company with its almost 400 employees at present export in more than 100 countries. could At the beginning of 2011, Wilfried Zschalich withdrew from the managing board and handed over the company to his son Dirk, who had already also managed the company as managing partner since 2004. Memories of Wilfried Zschalich: "I raise my glass in his commemoration" How was Wilfried Zschalich as person as well as entrepreneur? Employees and partners recollect: Hans Frost, 60, cryogenic valve assembly, at HEROSE since 1984: "Ten years ago I coloured my grey hairs black and shaved off my beard. Terrible. On the next day, my boss incidentally saw me, laughed and then said to me "You are not going to do that again!" Sabine Helms, 51, head of inside sales, at HEROSE since 1998: "As I started in the test facility back those days, at the beginning he came around on his daily walk and always asked me how I was and if I liked the job. He did that with all new employees. That is why his friendly and interesting manner stays with me in a particular memory." Matthias Reinhardt, 59, responsible for customer services and the test facility, at HEROSE since 1990: "You could always approach Wilfried Zschalich with all sorts of problems at any time, irrelevant if these were private or business. For example, years ago he promised my daughter Julienne an apprenticeship although we had only discussed it in passing by." „ „ We wrote the business plan on a beer mat 2 valvescommunity 1/ 2019 HEROSE GMBH

„ The boss had almost always lent a hand the whole time „ Hans Heinrich Stoffers, 58, machine fitter, at HEROSE since 1978: "As we moved into the extension in 2006, the boss also lent a hand the whole time and did not hesitate to align the workbench precisely to the millimetre. The frequent barbeques were also great when the turnover was reached again." Andreas Gabriel, 54, dispatch, at HEROSE since 1986: "A sign was hanging in the valve assembly, 'No Smoking'. The boss still had a smoke though ..." Manfred Neels, 54, supervisor in quality assurance, at HEROSE since 1983: "In the time that we were not doing very well in the 1990´s and HEROSE was forced to save money, Wilfried Zschalich suggested to us that we should grind a 15 mm spanner to a 17 mm one. Clever idea – and we have spent a few Mark less." Mike Grimsehl, 40, production manager in mechanical production, at HEROSE since 1998: "Being in the workers' council, I have also experienced the boss as somebody where the individual employee was just as important as the company. Although the company was not doing very well in the meantime, no colleague was dismissed over the past 20 years due to economic circumstances." Franco Zanetti, 80, long-standing friend and owner of the company Valvomec and supplier for red brass fittings from Northern Italy since 30 years: "As Wilfried Zschalich gave me his business card after our first meeting and I read his name Zschalich, I had to laugh and said: being an Italian, I will never be able to pronounce that – with seven consonants and only two vocals. But in the course of time I did manage learn how to pronounce it. Wilfried was always a tough negotiator. But during a good beer, we always found a good compromise." Keith Stewart, 65, managing director HEROSE Limited and affiliated with the company since 1997: "Where many had already backed out long ago, Wilfried Zschalich always had the courage to face the business challenges, as he saw HEROSE growing to one of the most important suppliers in the global gas industry. "I raise my glass in his commemoration!" Always have the whole world in view: Wilfried Zschalich Thorsten Cordes, 51, head of quality management, at HEROSE since 1985: The boss knew everyone by their name. My wife Christa for example, also works here. After getting married now she is naturally also called Cordes. And how did the boss greet her the next morning as they met coincidentally? "Morning Mrs. Cordes." Guido Schulz, 49, head of purchasing, managing partner and authorised representative, at HEROSE since 1997: "Being an entrepreneur, businessman and person, Wilfried Zschalich was always an absolute role model for me. He could however also be impatient and loud. As he called me to him across the corridor and I said that I will be there in a minute, I became the thundering reply: You come here immediately!" Volker Maaß, 51, sales director, at HEROSE since 2006: "I will never forget how we developed a complete business plan for HEROSE Iberica in Spain on a beer mat in a short time. Others need expensive consultants and pages of strategy documents. Then, by the way, we were sitting in his 'second living room', a Greek restaurant in Norderstedt." valvescommunity 1/ 2019 HEROSE GMBH 3

Interview "We have a good chance to continue growing" Interview with Dirk Zschalich, managing director of HEROSE, about the forecast for 2019 How was 2018 – what will 2019 bring? vc spoke about this with Dirk Zschalich. vc: How would you assess the last year? Dirk Zschalich: All things considered, 2018 was successful for us. That applies for Bad Oldesloe, but also for the other companies of the HEROSE group. We have achieved an increase in sales of 12 %. A good result considering that we have remained behind the goal that we have set in the scope of the strategy 2022. vc: What were the reasons? Zschalich: Amongst others, the political framework conditions are anything other than ideal. I am only mentioning the trade war between the USA and China as well as the ongoing theme of Brexit. place in one year, we were able to do a lot for customer retention and new customer acquisition. With our service, the installation and maintenance of valves, HEROSE has opened up a new and promising business field. And finally, we have introduced a row of new series and product extensions. vc: In the meantime, more than 300 people are working for HEROSE in Bad Oldesloe. Production and administrati- on are coming up against their special boundaries ... Zschalich: We know that we will not get around a construction extension in the medium-term. We have sufficient reser- ve area and we have already made the initial thoughts and sketches. Planning shall continue this year. vc: Let us talk about the positive aspects. Zschalich: And there are a lot of them. For example, we have our delivery reliability – compliance with the agreed deadlines – after several problems in the previous year, sustainability increased to more than 98 % again. Thanks to the three large trade fairs that are important to us – ACHEMA, SMM and Valve World, that for the first time in 2018 all took vc: What are you expecting otherwise for 2019? Zschalich: As in the previous year, the topic LNG Fuelling for shipbuilding will also have a significant role for our business. After the AIDA Nova was equipped with HEROSE valves in 2018, the construction of cruise ships is ano- ther highly interesting topic for us. Ferries and barges will also continually increase the demand. With the DLR – The German Aerospace Centre – we were able to gain a new important reference partner for the topic Aerospace. That is a com- pletely new business field for us and I am very optimistic that this will develop positively for us. Generally, in 2019 we have an ambitious development program with numerous novelties and expansions. For examp- le, mobility solutions with hydrogen are approaching fast. We will still be dealing with the topics automation, digitisation and further optimisation of the internal processes intensively. As we want to further develop our service portfolio. And we want to make progress with the integration of the HEROSE group. With this point, we are a bit behind schedule. A qualitatively good solution that will also take a little longer, is more important to us here than a poor rush job. forecast vc: Your sales for 2019? Zschalich: We have a good chance to continue growing. However, I am a bit worried about the global political situ- ation mentioned as well as the general economic development. Populist move- ments can also be another risk for the economy. That is difficult to assess. But I am generally an optimist. Wilfried Zschalich with his son Dirk and daughter Ulrike The mascot "Zscharly“ was also an idea of Wilfried Zschalich valvescommunity 1/ 2019 HEROSE GMBH 5

Technology Alarm! Quick aid for the ironworks Only a brief production stop at Focast thanks to an unorthodox solution from HEROSE m o c . k c o t s r e t t u h S : e l l e u q d l i B A picture painted by Dante: the liquefied scrap is discharged from the cupola furnace at temperatures up to 1,600 degrees 11th November 2018, 7:47 am: the tele- phone of Bernt Ohlow from the technical customer services of HEROSE in Bad Oldesloe rang. On the other end: the maintenance manager at the ironworks Focast in Lüneburg. He sounded in a bit of a rush: "A valve is defect in the control section for the oxygen supply of our fur- nace. The Production is standing and we need help as quickly as possible." The employee continues: "We could not be- lieve it, we received the spare part within two hours. That was a fantastic service." The early shift got him out of bed at 5 am because of the valve problem. "We always fire up the so-called cupola fur- nace at about 4 am in which we melt our scrap. Shortly afterwards, the lads had noticed what was going on and got me out of bed." He had to take a look before he found the almost illegible lettering HEROSE on the 15 year old valve. "I was not familiar with HEROSE.“ But that is what Google is there for. "And then I gave them a ring off the chance." And had Bernt Ohlow on the other end. In order to be able to identify the valve – "There were no numbers or anything else engra- ved," – the ailing part was photo- graphed with a cell phone and the photos sent to Bad Oldesloe by email. Then the size was quickly measured and the problem described … and the problem was finally found: "The cone of the sealing surface was damaged." Off to Lüneburg by courier Although HEROSE did not have a com- plete valve of this series on stock, they knew how to help. Bernt Ohlow: "We just sent the matching top section of a similar valve to Lüneburg by courier." It arrived at 8:50 am, was installed ("It was only six bolts") – and the production started again at 10:23 am. As vc paid a vi- sit to the company Focast for this report at the beginning of February, they were still impressed there: "It is not a matter of course that we received such uncon- ventional help. And on the side, it is also a proof of quality that the valve has been working for 15 years without com- plaint." In 2018, with 200 employees, the company Focast – previously Lünebur- 6 ger Eisenwerk – produced 9,200 tonnes of cast parts for mechanical enginee- ring pumps, motors and compressor housings as well as machine beds. They had a turnover of 24 million Euros. Managing director Carsten Weißelberg: "We supply about 150 customers that, to the greatest extent, produce in Ger- many." These include heavy weights such as Gildemeister, GEA, Aerzener and Renk. The raw material for Focast is scrap. This is melted in the so-called cupola furnace at up to 1,600 degrees Celsius. Then the liquid iron is poured into the respective moulds. Christian Beich: "We have about 1,500 so-called active parts and another 5,000 models in stock." Focast in Lüneburg has specialised in single-unit production and small series. How a cupola furnace works To fire-up the furnace, a wooden fire is ignited on its base, covered with coal and brought to smolder using a gas burner. Then with burning embers, the furnace is filled with several layers of valvescommunity 1/ 2019 HEROSE GMBH

Current How to contact us HEROSE GMBH ARMATUREN UND METALLE Elly-Heuss-Knapp-Straße 12 23843 Bad Oldesloe Germany Phone: +49 4531 509-0, Fax: +49 4531 509-120 info@herose.com Subscribe for the digital magazine: valves-community.com Order Newsletter: herose.com Representatives for the Czech Republic and Slovakia The company TRACCOM was founded in the Czech city of Chomutov in 1993. HEROSE has been selling products in the Czech Republic and Slovakia since 1994. One has been supporting the business in Russia and the Ukraine since 2004. A particular emphasis are LNG products from HEROSE. The company is managed by Václav Vlček. TRACCOM, s.r.o. Klostermannova 138 430 01 Chomutov Czech Republic Tel.: +420 474 651 365 traccom@traccom.cz Sales partner for Turkey The company CEFIP was founded in Herne in 1994 by Necdet Özcan. Together with HEROSE, CEFIP processed individual solutions for cryogenic fittings for plant and system construction for customers in Turkey. CEFIP-Consulting & Engineering for industrial products Heidstraße 80 44649 Herne Deutschland Tel.: +49 2325/972 58 10 Fax: +49 2325/972 58 25 contact@cefip.de www.cefip.com.tr Václav Vlček (right) at the ACHEMA 2018 with Keith Stewart Necdet Özcan (bottom, 2nd left) with his staff metal and coke while blowing in air in the process. This results in temperatures up to 1,600 degrees Celsius on the base of the furnace that melt the metal. The cu- pola furnace has a special significance for producing cast iron, as with Focast. In doing so, it is supplied with raw iron, steel scrap, recycled materials and broken machine casting. The set- ting of the cast iron carbon content is carried out via the ration steel scrap (low carbon content) to broken machine casting (higher carbon content). Adding more coke also increases the carbon content. Moreover, lime is also added to neutralise the acid slag generated during the process, and to improve its flowing properties. Blowing in air with an incre- ased oxygen content also reduces the carbon content of the cast iron. By the way, the cupola furnace was discovered in 1794 by the Englishman John Wilkinson. n valvescommunity 1/ 2019 HEROSE GMBH 7

News n February 2019: Successful passing of the audit for supervision of the ABS classification n January 2019: Successful passing of the audit for supervision of the DNVGL classification n December 2018: With the raffle at a model making exchange in Ratzeburg, co-hosted by HEROSE employer Marco Harz, 300 Euro was came together for the youth fire brigade Ratzeburg. Mareile Harz, (3. from the left.) Marco Harz, (5. from the left), organiser Gerd Nimtz (7. from the left) and several companions with counsellors of the youth fire brigade Ratzeburg Trade fairs 41st Seminar on industrial Gases, Istanbul 11 to 14 March 2019 VAASA Gas Exchange, Vaasa 18 to 21 March 2019 OMC (Offshore Mediterranean Conference), Ravenna 27 to 29 March 2019 LLR International Conference, Prague 15th CRYOGENICS 2019 7 to 11 April 2019 5th international LNG Congress, St. Julien 29 to 30 April 2019 Imprint Publisher: HEROSE GMBH, Bad Oldesloe Responsible for the content: M. Esche, HEROSE GMBH Editor: C. Wurr Photos: C. Wurr, HEROSE GMBH Concept: gugelot gmbh, Hamburg All rights, printing errors and mistakes reserved. HEROSE NEWSLETTER: Up-to-date, free of charge and can be cancelled at any time. herose.com/newsletter The next issue will appear in July 2019. The first CNC machine in Pune It has taken more than a year – now the first CNC machine is working for MACK VALVES in Pune. A machine that had served 16 years long in Bad Oldesloe and has undergone extensive overhau- ling, is now standing in India. At the end of 2017 it was removed by the compa- ny DMG Mori Used Machines in Bad Oldesloe and was thoroughly checked. Old individual parts were replaced. With a renovated machine, in Autumn it was shipped to India by sea where it was re-erected and aligned by DMG Mori India. On-location, Maik Tolzmann from HEROSE was responsible for the com- missioning. As a whole, Maik Tolz- mann spent five weeks in Pune in or- der to solve any start-up problems and to train the Indian employees. For his services, he was rewarded by Björn Stoll, the Chief Operating Officer in Pune. The CNC machine supplied from Bad Oldesloe now produces compo- nents for MACK VALVES and HEROSE Germany. Dhanesh Jadhav at his new machine Reward for Maik Tolzmann. Left: Chief Operating Officer Björn Stoll HEROSE was host of the 74th meeting of the Industrial Gases Association In the middle of January, the 74th meeting of the IGV – Industrial Gases Association – took place at HEROSE. The Industrial Gases Association (IGV) promotes safe- ty, environmental protection and techno- logy in the manufacture and handling of industrial gases. The IGV is a professio- nal association of the German Chemical industry Association (VCI) and is inte- grated in the European Industrial Gases Association (EIGA). Almost all German companies that manufacture and / or fill as well as market industrial gases are combined in the Industrial Gases Asso- ciation. HEROSE is a member in the IGV since January 2018. Matthias Reinhardt also works on many topics concerning the HEROSE products. In the scope of the meeting, a works tour took place through the producing departments. Win one of 5 Sony Bluetooth boxes Family Zschalich took over the company HEROSE ... A – 1968 B – 1996 C – 2004 Please send your solution until 10 May 2019: eMail: win@valves-community.com or online: www.valves-community.com HEROSE employees and their immediate family members are not eligible. The judges' decision is final. We congratulate the winners of a LAMY Studio fountain pen: Thomas Nyman, Air Liquide SE, Sweden Jernej Plaskan, GTG plin d.o.o., Slovenia Marcello Kozuki Junior, BITZER Compressores LTDA, Brazil Gerald Müller, BAUER KOMPRESSOREN GmbH, Germany Tomáš Raba, Chart Ferox, a.s., Czech Republic 8 valvescommunity 1/ 2019 HEROSE GMBH