ESCO Edge 2015 April

An ESCO速 Corporation Publication

April 2015

Celebrating 50 Years MSM Partnership

Gold Rush

ESCO Products Hit TV Paydirt

Dealer Awards

Milestone Anniversaries

at the

On the cutting edge: ESCO's Nemisys速 system

HEART OF INNOVATION Hank Swigert Center for Innovation Grand Opening

from the top

CAL COLLINS

a letter from the President and CEO

The freedom to innovate. It may sound simple, but all too often companies in our markets are boxed in, stuck. Bound by convention.

At ESCO, we value the freedom to innovate. As an independent company, we fiercely protect this freedom. Tradition doesn’t bind us—it drives us. With more than 100 years of experience in the science of metals, alloys and wear materials, tradition is our mettle. But every day, I see my colleagues break from tradition to advance our work in the spirit of continuous improvement.

We recently unveiled the Hank Swigert Center for Innovation, which houses part of a large team carrying the innovation & technology moniker. Far from boxed-in, this team crosses divisional, geographic and technological boundaries. The innovation & technology team is free from the normal day-to-day business constraints and is charged to consider the unknown, focusing on developing the most innovative and high-quality products and manufacturing processes. This revitalized approach allows ESCO to be nimble and explore new areas that will leverage cutting-edge technology and to provide the highest value for you, our customers. While the physical structure at our headquarters may be seen as the heart of our innovation, I’m constantly impressed witnessing creative, innovative solutions all around me—not just from our products and our engineering teams, but from our supply chain, our finance team, our sales team, etc.

These units are working together to serve our customers in the best way possible, actively partnering with customers to deliver innovative solutions. From our environmental, health and safety team we’ve seen the launch of a global program protecting the safety of our customers, their employees, and our own ESCO teammates.

Our sales teams are using new technologies to show customers lifetime product value and to learn more about your needs. From our supply chain team, we’ve seen a complete transformation that included the creation of a new distribution center to get products in customers' hands right when you need them.

On behalf of the ESCO team, I invite you to innovate with us.

Cal Collins, President and Chief Executive Officer

THE EDGE MISSION Build lasting and mutually beneficial relationships with customers by celebrating their achievements and demonstrating the strengths and problem-solving capabilities of ESCO’s employees and the products they design and manufacture.

Comments & suggestions are always welcome: EDGE Magazine ESCO Corporation 2141 NW 25th Ave. Portland, Oregon, USA 97210 Email: news@escocorp.com VP of Investor & Government Relations and Communications, Rob Cornilles Director of Corporate Communications and Marketing,

Scenna Shipley Editor, Lisa Calais Writer, Hayley Shauklas Graphic Designer, Kari Dehn 2

THE EDGE | APRIL 2015

ESCO CORPORATION ESCO® engineers, manufactures and services mission critical equipment used by companies in mining, construction, industrial, and oil and gas industries. With more than 100 years of experience in the science of metals, alloys and wear materials, ESCO products are used in a wide range of applications, including highly abrasive digging, recycling, excavation, drilling, snow plowing and many more.

The Edge is available online: escocorp.com

Update your mailing address: edgesubscriptions@escocorp.com On the cover: Representing ESCO's innovative spirit, the award-winning Nemisys® lip, tooth and shroud system has received rave reviews since its debut in 2012, as it helps customers reduce operating costs, maximize machine availability and improve safety. Inset: Hank Swigert, a decendent of ESCO's founder and current member of the company's board of directors, serves as an iconic reminder of where ESCO has been and how it drives forward.

TABLE OF CONTENTS Mitsubishi Steel Mfg. Co., Ltd. converts a front end loader to ESCO's Ultralok tooth system. ®

MSM worked with customers Kageyama Seibi and Fujisaka Quarry to transition the machine from ESCO’s SuperV® V61 to the new Ultralok U60 product. Learn more about the key benefits that won over these important customers.

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Innovation at ESCO................................................... 4–5

Frank Stegbauer earned the 2014 Gerry Leake award after helping to quadruple the sales of ESCO blades at D.A. MacPherson.

Milestone Anniversaries...................................................6–7 Safety News .......................................................................................8

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Sustainability.......................................................................................9 ESCO's Board of Directors...................................10–11 Around the World.............................................................12–13 Kirby-Smith Machinery.........................................................14 Dealer Awards................................................................................ 15 Service Anniversaries...................................................16–19 Community Service.................................................................20

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Scott Berni, field sales representative for the MidContinent district, puts the finishing touches on a PDC bit in the field.

Learn more about Ulterra's OneShot in our innovation section.

THE EDGE | APRIL 2015

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innovate & create

The Hank Swigert Center for Innovation

“

B

Paying Tribute to ESCO’s Innovative Products and Spirit

elieve me, innovation is what has kept us going at ESCO!" The phrase still rings true—102 years since ESCO’s founding—when Henry T. “Hank” Swigert (pictured left), one of ESCO’s visionary leaders, and the grandson of our company’s founder, uttered these words at the grand opening of ESCO’s newest research and development center, named in his honor at World Headquarters, the Hank Swigert Center for Innovation.

Hank’s contributions, as well as the company’s history and future of cutting-edge research, engineering and technology, were recognized at a dedication and ribbon-cutting ceremony in September 2014.

“The Hank Swigert Center for Innovation houses ESCO’s growing innovation and technology team—a group dedicated to keeping ESCO on the leading edge,” said Chris Carpenter, vice president of innovation and technology, at the dedication. “Within this new building and at ESCO sites worldwide, our teams push the boundaries to expand the company’s leadership in technically rich, long-lasting wear materials and products to better serve our customers around the world.”

Swigert presented to nearly 300 employees at the grand opening celebration. He currently holds a seat on ESCO's board of directors.

Good As GOLD

W

hich ESCO products appeared on one of American television’s most popular reality series?

During the top-rated show’s fifth season, which aired between November 2014 and March 2015, ESCO’s Heavy-Duty Plate Lip (HDP) bucket, the Metro HDP and the Extreme-Duty Plate Lip (XDP) buckets with Ultralok® and SV2® teeth appeared on Gold Rush. The reality TV show follows the lives of several independent miners during their quest to mine gold from tough, highly abrasive conditions in the Klondike region of Canada’s Yukon Territory.

Wrapping up the most recent season, show creator and star Todd Hoffman said, “The ESCO products have already seen us through two seasons and we’ll be using them again—these teeth are still sharp.” Like ESCO, many of the Hoffman crew members call Oregon ‘home.’

Worldwide, the show’s approximately 80 million viewers were able to view ESCO products in action throughout the 2014/2015 season.

RPO Four ESCO buckets fabricated by the team at ESCO Covington, Kentucky make their way to the Klondike.

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YOU ONLY GET

ONESHOT Ulterra Brings Bullseye Focus to Bit Technology ®

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or Ulterra customers, every run counts.

As the global drilling market shrinks due to the unpredictable price of oil, customers have become even more selective in their product choices. With a crucial need to satisfy highly-technical well plans, Ulterra’s polycrystalline diamond compact (PDC) drill bits must have precise directional control, while still boasting efficiency and durability.

Each month, Ulterra manufactures hundreds of steel-bodied and matrix-bodied PDC bits, each one highly customized to fit their customers’ needs. Every bit is hand-crafted and, once complete, is inspected and scrutinized for the best-in-field performance. To keep the bits at the top of their class, Ulterra has developed the unique OneShot™ technology, a designation that is given to top-performing bits.

“No Ulterra product leaves our shop with the OneShot designation. It has to earn it in the field,” said Aron Deen, development leader from the Fort Worth-based ESCO Oil & Gas Company. Deen credits the entire Ulterra team for developing the technology in 2014 through cross-district collaboration and extensive communication.

No two formations are the same—just as no two bits are the same—and that is why the OneShot designation is application-specific.

Before being awarded the OneShot status for any application, a PDC bit will achieve upwards of 20 runs with at least an 80-90% success rate. While only three Ulterra bits in six different applications have been awarded the OneShot designation to-date, the technology captures both the spirit and the letter of what Ulterra is all about: “Our brand is built on a bullseye focus on our customers and their goals,” said Deen.

“OneShot speaks to our customers and the goals they care most about.”

— Aron Deen, development leader

Ulterra's PDC bit serves as the heart of this drilling rig in southwestern Oklahoma.

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milestones

MSM and ESCO executives celebrated 50 years of partnership in Portland, Ore. Back Row, Jon Owens, Cal Collins, John Dillon, Joe Weber, Chris Biehn, Jeff Kershaw. Front, Satoshi Narita, Toshio Ishii, Nobumichi Ono, Tim Myers, Jun Takayama, Rob Cornilles.

Mitsubishi Steel Mfg. Co., Ltd. S

50 Years as an ESCO Licensee

ince 1964, Mitsubishi Steel Mfg. Co., Ltd. (MSM) has manufactured and sold ESCO products to customers in the Japanese market through an extensive network of sales offices and service centers.

To mark the 50th anniversary of their work together, ESCO hosted four MSM executives for special events at World Headquarters in August 2014. Cal Collins, ESCO’s president and chief executive officer, and Jon Owens, executive vice president and chief operating officer, joined with other ESCO executives to welcome MSM President, Nobumichi Ono, and the MSM team to Portland.

“It has been a pleasure working with MSM throughout the years,” said Tim Myers, president of ESCO’s Construction & Industrial Division.

“ESCO is very happy to commemorate this significant milestone.”

The Fujisaka Quarry in Sano City, Tochigi Prefecture, has been in operation since 1973, providing crushed stone and related products for construction and industrial applications in Japan. Kageyama Seibi provides maintenance and repair services for Fujisaka Quarry, as well as a number of other sites in the region.

ESCO PARTNER

Converting to the Ultralok® Construction Tooth System In December 2014, MSM successfully converted a TCM L130 wheel loader to ESCO’s Ultralok construction tooth system. MSM worked with customers Kageyama Seibi and Fujisaka Quarry to transition the machine from ESCO’s SuperV® V61 to the new Ultralok U60 product. The benefits of improved safety and performance, as well as longer wear life, were key for these important customers.

The machine is now working at the Fujisaka Quarry in Sano City, Tochigi Prefecture, which has provided crushed stone and related products for construction and industrial applications in Japan since 1973.

Kageyama Seibi provides maintenance and repair services for Fujisaka Quarry, as well as other sites in the region. Both Fujisaka Quarry and Kageyama Seibi have been using ESCO products for more than 30 years.

50 ANNIVERSARY th

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THE EDGE | APRIL 2015

GIORI RICAMBI Brothers Continue Father’s Legacy of Technical Expertise in Earthmoving Machinery

A

fter three decades of working in the earthmoving industry, Alessandro Giori set out to start his own company.

Giori convinced his two sons to join him in the business venture and, in 2001, Giori Ricambi began serving customers in the mining and construction markets of northeastern Italy.

This year, Giori celebrates 10 years as an ESCO dealer, serving customers seeking ESCO buckets and Ultralok® and SV2® tooth systems. Cal Collins, ESCO president and CEO, and Jon Owens, ESCO executive vice president and COO, made a special visit in December 2014 to Giori headquarters in Lombardia, Italy, to congratulate them on their milestone. “ESCO’s brand represents top quality in Europe,” said Paolo Giori, who serves as technical director.

“Customers appreciate ESCO’s commitment to continuous improvement and innovation.”

Giori’s sons, Paolo and Sergio, have kept their father’s entrepreneurial spirit alive by expanding the business since his death in 2005. With their partner, Alberto Soardi, who currently leads Giori’s finance and inside sales, the company has grown to 12 employees and a repair shop that specializes in the fabrication of wear plate components and repair of earthmoving machinery.

Giori currently serves customers in expanding ESCO territories, including Trentino Alto Adige, Veneto, FriuliVenezia Giulia and the Province of Brescia. “Giori has managed to create the highest European concentration of ESCO-converted machines per territory,” said Soardi.

ESCO executives, Ermanno Simonutti, managing director of Europe, Jon Owens, executive vice president and COO, and Cal Collins, president and CEO, tour the Giori Ricambi workshop with Alberto Soardi, vice president of financie and inside sales Giori Ricambi title.

ESCO DEALER

10 ANNIVERSARY th

In December 2014, Giori Ricambi leaders Paolo Giori (middle) and Alberto Soardi (far right) joined ESCO executives to celebrate 10 years of partnership.

THE EDGE | APRIL 2015

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global standards

A Commitment to

SAFETY

Teams Set New Records and New Standards Across the Globe ESCO Australasia Focuses on Safety Shop employees in Kingaroy and Mackay, Australia, and Balikpapan, Indonesia, took part in hands-on training last year to incorporate ESCO’s Golden Rules of Safety into their work; practice first aid training for snake bites (a common risk in the region); and learn how to stretch for proper ergonomics.

ESCO Celebrates Safety Record in China In 2014, ESCO Xuzhou reached two years without lost time incidents—a key performance indicator within the industry and an historic 'first' for the site located in eastern China.

“ESCO instills a sense of pride in us to maintain the highest levels of safety performance,” said Site Manager, Guangkuo Zhao. To recognize the milestone, employees were given a booklet dedicated to honoring the accomplishment. Including ESCO’s Golden Rules of Safety, it serves as a reminder of their commitment to safety.

At ESCO Mackay, employees participate in a stretching program with a trainer from a local gym in order to avoid strains and sprains.

Ulterra Makes a ‘Sound’ Investment As part of Ulterra’s robust hearing conservation program, employees from the Fort Worth, Texas, manufacturing facility united for their second annual audiometric workshop. Compared to last year’s baseline audiograms, there were zero recordable changes in hearing.

Xuzhou employees celebrated this two-year safety milestone in December 2014.

The lost time incident rate is an important measure of success because it only tracks the injuries significant enough to cause an employee to miss work.

THE GOLDEN RULES OF

SAFETY

ESCO has introduced the Golden Rules of Safety, inspiring our global ESCO community to remain acutely aware of situations that present some of the most challenging safety hazards in the workplace or at customer sites. The rules focus on loads and lifting operations, energy isolation, working at heights, electrical safety, confined spaces, personal protective equipment (PPE), and driving safety, as well as highlight the dangers of drugs and alcohol use in an industrial environment.

“Whether we drive a company truck to a customer site or suit up in PPE gear at a mine, this is an opportunity for our workforce and leadership to demonstrate commitment to ESCO’s core value,” said James Heaukulani, director of environmental, health and safety. The Golden Rules of Safety poster, which has been translated into several languages, has become a standard at ESCO sites globally.

GOLD EN

SAFERUTLES OF Y

At ESC O to help , our Golden pr Rules of from id otect our em Safety en pl are main threaten tified risks th oyees, contra tained at ct ing. An y breach have the pote ors and visito Safety rs will be ntial to of these G inv action, olden Ru be life up to an estigated an les of d may or remov d includ re su ing term al from lt in disc site. ination ip lin ar of empl y oymen t

Loads Lifting and Opera tions Working

load or under a susp ended lifting a load person over an is strict y ly proh ibited.

Energ Isolati y o

n

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THE EDGE | APRIL 2015

Make su source re all energy s energy are isolated an rel working eased befor d e equipme on a piece of with or nt. Never int erfere energize that is eq uip locked or tagge ment d out.

Work Heighing at ts

Never wo without rk at height effectiv protecti e on in pla fall ce.

Electr Equip ical ment

Never wo equipme rk on live ele ctrical authoriz nt unless qu alified ed to do & so.

Confi Spacened s

Never en unless ter a confine tra d to do so ined and au space thorized .

Perso Prote nal Equip ctive ment

Always we Protecti ar required ve Equip Persona l me

Drivin

g

Always fol and law low the tra ffic rules s seatbelt of the road , we s and drive wi ar speed limits. thin

Drugs Alcoh and ol

Never be in po under ssessi

sustain the gain

SUSTAINABILITY IN ACTION E ESCO’s Social, Economic and Environmental Practices Worldwide

SCO groups around the globe are bringing sustainability to the forefront of the business, always looking for ways to continuously improve our manufacturing operations in the foundry, fab or shop, as well as daily processes in the office.

Employees strive to reduce costs for ESCO customers while embracing their mission to achieve social, environmental and economic sustainability.

Recycling, Reusing and Reclaiming to Reduce Waste Throughout 2014, Ulterra, an ESCO Oil & Gas company, recycled close to 250 tons of graphite material and more than 92 tons of scrap PDC cutters, as well as matrix and steel bits, at their production facilities in Leduc, Alberta, Canada, and Fort Worth, Texas. Led by Todd Carey, supply chain manager, Ulterra joined with another local partner company to reduce the waste sent to landfills while reclaiming used materials, such as graphite, copper and tungsten. As a result, Ulterra generated a savings of about $500,000 USD in recycled material and expects to continue evaluating their scrap streams in the year ahead.

“Recycling the waste has generated even more value for the company.”

YunXia Zhang, continuous improvement supervisor in Xuzhou (pictured middle), participates with her ESCO colleagues to conduct a Kaizen event in China aimed at reducing downtime for manufacturing equipment, thus delivering products to customers more quickly.

Increasing Production at ESCO Foundry ESCO Xuzhou, China, dedicated a Kaizen event in July 2014 to addressing challenges with a critical piece of manufacturing equipment: flogging machines. This equipment removes risers, a recyclable component of the casting process. Frequently, high repair costs, increased machine downtime and long lead time for spare parts affected production. But with consistent maintenance and standardization of machine parts, the site has reduced downtime per month from 12 hours to less than one hour. With more consistent tracking of the machine’s maintenance and life cycle, ESCO reduced the average cost per month of spare parts from $3,400 USD to less than $1,000.

— Todd Carey, Ulterra supply chain manager

Consuming Less Energy in South America For the fourth year in a row, our production facility in Betim, Brazil, earned a bronze certification from the GHG Protocol for reducing energy consumption over the course of a full year. ESCO’s energy management plan helped to significantly lower the number of kilowatt hours per ton of processed product, while also reducing emissions in the surrounding community.

A detailed analysis of assembly standards and on-hand spare parts in Xuzhou, China is helping reduce downtime for ESCO's riser flogging machines and has reduced repair costs by 70% each month.

THE EDGE | APRIL 2015

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board profiles

PERSPECTIVES: ESCO’S The Edge brings members of ESCO’s Board of Directors together in an ongoing series. With their diverse professional and life experiences, we gain insight into the dynamic and rapidly changing markets served by our three divisions. Beginning with Rich Roman, current chairman

F

or Rich Roman, business is all about people. And he credits ESCO’s century of success to great customers, partners, employees and leaders who keep innovation at their core.

In addition to his role on the ESCO board, Roman chairs Northwest Pipe Company, a leading manufacturer of welded steel pipe used for water transmission and treatment facilities. He got his start in the world of finance, quickly taking up an avid interest in international business development that has sent him far beyond Vancouver, Washington, where Northwest Pipe Company is currently based. He served as president of Columbia Ventures Corporation, a private investment firm, and spent 17 years with an international accounting firm, Coopers & Lybrand, where he focused on the metals industry.

From Iceland to Ireland and Mexico to France, Roman has been around the block a few times (and literally around the world a few more). With more than three decades of international business experience, Roman has been focused on ESCO’s operations in China and South Africa in the last two years. After visiting our foundries and customer sites overseas, Roman remains optimistic about ESCO’s growing influence. “It takes a special company like ESCO to learn the business, enter new markets and be successful—how many companies can say they have the commitment that ESCO has?”

When it comes to ESCO’s staying-power, Roman said ESCO’s strong, people-focused culture has translated into long-lasting customer relationships, which is key to driving the company’s sustainable growth. “As the industry pulls us through its normal cycle, ESCO’s ability to respond to the quickly changing markets is a reflection of our innovative people,” said Roman.

He acknowledged that unpredictable market conditions are a normal part of business. "Because ESCO continues to deliver high quality products, while remaining cost competitive—that will carry the company much further than our competitors.”

“It’s not surprising that ESCO has the ability to remain nimble and cutting-edge in response to customers’ needs.”

RICHARD ROMAN Chairman

Northwest Pipe Company

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Photo Courtesy of Northwest Pipe Company.

BOARD OF DIRECTORS of Northwest Pipe Co., the two-year ESCO board member shares his perspective on ESCO’s international growth. Jake Nichol, the recently retired and former CEO of Oregon-based Leatherman Tool Group, having an extensive background in manufacturing, shares his approach to cultivating ESCO’s strong brand.

T

o say Jake Nichol has a passion for creation is an understatement. “From a very young age, I always loved making things,” said Nichol, former chief executive of Leatherman Tool Group, a leading manufacturer of high-quality multi-tools, pocket tools and knives. Nichol retired from Leatherman last year, but his passion for manufacturing isn’t taking a back seat just yet. In his first two years on the ESCO board of directors, Nichol has visited company sites around the world, including meeting customers in China and engaging with dealers in Mongolia.

“As I see ESCO operations firsthand, I witness a proud history of innovation, performance and quality,” he said.

With that said, success does not come without its share of challenges. From his viewpoint, these important attributes are just a few reasons ESCO will weather the current softening of the market. Nichol’s time in the trenches equips him with the expertise to speak about how the company has maintained a quality brand that spans generations. “ESCO has a clear strategy with real longevity. It’s those same values of innovation, performance and quality that match our customers’ needs worldwide,” said Nichol.

After spending 41 years in sales, marketing, and business leadership, Nichol understands what it takes to build a strong global brand. His approach is to expect the unexpected—and prepare. ESCO has developed and maintained a balanced value system that customers have come to trust. With disciplined, strategic planning and commitment to innovation excellence, the company will continue to thrive when industries waver.

While there is no silver bullet to winning market share, Nichol is most confident about the sustainability of the organization worldwide. “We have to stay true to the authentic ESCO brand—that tells the world who we are and what we stand for,” he said. “We achieve success when our customers keep coming back for more.”

“Those who have relied on ESCO’s innovation, quality and performance can expect the same values 100 years from now.”

JAKE NICHOL Former President

Leatherman Tool Group

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worldwide impact

ESCO Around 3 1

2 1

4

Washington, D.C., USA

For a second year in a row, ESCO was recognized at the 2015 STEP Ahead Women in Manufacturing awards in Washington, D.C., last month. Sarah Heiner has served in various capacities across the company, including continuous improvement and project management.

Her fascination with manufacturing started at an early age and she now joins a network of women across the U.S. who are making significant contributions in the world of science, technology, engineering and production. ESCO’s Vice President of Organizational Effectiveness, Elizabeth King, received the STEP Ahead award last year from the U.S.-based organization, The Manufacturing Institute.

2

Carajás, Brazil

In November 2014, ESCO opened a second plant to serve area customers seeking Fabrication, Service & Repair (FS&R) in the northern region of South America. “We look forward to serving our growing network of customers in Brazil to deliver on ESCO’s promise of quality, value and speed,” said Vice President of Latin America, José Rogério de Paula e Silva. The facility provides repairs on products, including hydraulic face shovel fronts, mining hoe buckets and other key mining components, for major mines owned by VALE. 12

THE EDGE | APRIL 2015

the World 3

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Kemerovo, Russia

Working with a large coal mine near Kemerovo, Russia, the ESCO team has achieved great success converting five Pawling & Harnischfeger (P&H) 2800XPC machines from competitive products to ESCO systems. Led by Igor Vladimirov, managing director for the Mining Division in the Commonwealth of Independent States, Nikolay Kovalev, District Sales Manager for CIS, and Oleg Ovchinnikov, Sales Manager for CIS, ESCO’s Ultralok® mining team has worked with our customer to convert five cable shovels from Hensley points to the Ultralok mining tooth system since February 2014. In early tests, the Ultralok tooth system is lasting twice as long as its predecessor, leading the customer to convert other P&H machines used at the mine to ESCO products.

Johannesburg, South Africa

4

Now standing in Linbro Park, near Johannesburg, South Africa, is a beautiful new ESCO office. The facility opened in 2014 as the company’s African regional headquarters. Located next door to the administrative offices is a new 4,000 square meter (~43,000 square foot) distribution center, which serves the region’s mining customers. Completion of the headquarters location marks more than a year of planning, design and construction.

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Xuzhou, China

ESCO is expanding its range of DRP (Direct Replacement Parts) products. Customers looking for more durable, longer-lasting tooth systems, yet not seeking to retire their current system, can benefit from ESCO’s superior alloy in the new DRP offering. While the initial focus is on China, which remains the fastestgrowing construction and infrastructure market in the world, ESCO will introduce the product in other growing global markets in 2015.

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esco partners

DEALER PROFILE Kirby-Smith Machinery, Inc. Headqarters: Oklahoma City, Oklahoma, USA ESCO Dealer: 28 years Contact: Jennifer Gordon, Marketing Manager Email: marketing@kirby-smith.com

“

T

his company was founded by Ed Kirby and Fred Smith in 1983—two entrepreneurs who started out with nothing more than their savings accounts to get a great idea off the ground. What they have accomplished since then is phenomenal,” said Jeff Weller, vice president and general manager for Kirby-Smith’s northern division.

Kirby-Smith Machinery, Inc. has been proud to carry the ESCO brand for nearly 30 years. However, for the company’s leaders, the connection with ESCO reaches even further back.

“In the ‘80s, I worked in the Cincinnati area, which is notorious for extremely tough rock conditions—I still remember how ESCO’s ‘Cincinnati Rock Bucket’ was the only product that would cut through the limestone,” said David Cooper, vice president and general manager for Kirby-Smith’s southern division.

Weller says his ESCO experience goes back to 1979.

“Throughout my career, every place I’ve been—whether it’s sand or rock—we’ve always been with ESCO. In this industry, ESCO is the gold standard.” This early success with ESCO products has provided the foundation for the dealer’s 28-year track record with the company, as KirbySmith celebrated its ESCO anniversary on 1 April.

Today, Kirby-Smith has more than 350 employees

at ten locations throughout Oklahoma, Kansas, Missouri and Texas. The dealership was founded in Oklahoma City, Oklahoma, and specializes in industrial, road building and construction equipment, namely high-quality cranes, excavators, dozers, pavers, boom trucks and backhoe loaders.

Glen Townsend, vice president of business process improvement for Kirby-Smith, echoed his colleagues.

“ESCO is the primary brand of choice in our markets. The name speaks for itself: quality. We give our customers other options, but ESCO’s service, competitiveness and quality allowed us to gain extra business and a level of comfort from customers that they are getting a premier product.”

Visit them online at

kirby-smith.com

James Triplett, a shipping and receiving associate with Kirby-Smith Machinery in Oklahoma City, offers a forkfull of ESCO GET. Below: The Oklahoma City location is one of ten locations where ESCO green paint products line the shelves, ready for sale.

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DEALER

Awards

On behalf of Edward Ehrbar, Pat Ahern accepted an award for 40 years of partnership.

More than 80 dealer executives gathered in Orlando, Florida, in February 2015 for the 58th Annual North American Dealer Meeting, which ESCO hosted alongside the 2015 AED Summit (Associated Equipment Distributors). Each year, ESCO representatives unite with dealers across the U.S. and Canada to discuss sales strategies and business development opportunities. Cal Collins, ESCO’s president and CEO, and Jon Owens, executive vice president and COO, joined Tim Myers, C&I Division president, and Jeff Kershaw, Mining Division president, to show their appreciation for the hard work and support that dealers dedicate to ESCO throughout the year.

ESCO executives, Cal Collins, president and CEO, Tim Myers, C&I Division president, joined Dave Meyer, vice president and sales manager for Voto, alongside Jon Owens, executive vice president and COO, and Jeff Kershaw, Mining Division president, to celebrate Voto’s 65th anniversary with ESCO.

2014 Gerry Leake Award Winner

Since 1994, the Gerry Leake Award has acknowledged the superior efforts and successes of one sales individual within the ESCO dealer network. Named in memoriam of Gerry Leake, a former ESCO employee who is considered one of the company’s most passionate team members, this year’s honor went to Frank Stegbauer of D.A. Macpherson, Inc. THE EDGE | APRIL 2015

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ESCO SERVICE ANNIVERSARIES < Lyndel Peters Portland, OR

40

Lyndel Peters grew up in Forest Grove, Oregon, and graduated from Oregon State University with a degree in accounting. Starting at ESCO as an accounting clerk, Lyndel is now an accounting manager. In her spare time, Lyndel enjoys road trips, football games and spending time with her nieces and nephews.

^ Cavan Levigne

40

Port Hope, Canada

< Andy White

Cavan Levigne currently works as a heat treater. He graduated from Port Hope High School and started with ESCO as a stand grinder. Happily married with his wife of 18 years, Larry lives in Port Hope and enjoys bowling, golfing, and spending time with his four grandchildren.

Newton, MS

40

Andy White currently lives in Little Rock, Missouri, and graduated from Beulah Hubbard High School.

He started his career with ESCO as a flogger and now works as a heat treat team leader.

Outside of work, Andy enjoys photography and gardening. He has two children.

^ Kirk Yoresen Portland, OR

40

Kirk Yoresen is the global marketing manager for the Construction & Industrial Division. At ESCO, he has worked as a design engineer, a global product manager, and a marketing manager. Kirk and his wife, Linda, have two children and four grandchildren.

His hobbies include golf, skiing, and reading.

< Dave Bancroft Portland, OR

35

Dave Bancroft currently works as a corporate finance process leader. Graduating from Palomar College in California, he joined ESCO as a senior cost accountant and has worked in a variety of accounting and auditing positions at ESCO. Dave and his wife have four children and seven grandchildren.

^ Carmen Cassidy

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^ Norm Clark

Dunedin, New Zealand

Port Hope, Canada

Carmen Cassidy started with ESCO as an apprentice engineering patternmaker. She currently works as an industrial products planner in Dunedin, New Zealand. Outside of work, she enjoys spending time with her daughter.

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Norm Clark, who currently lives in Port Hope, has been a grinder and heat treater, and now works as a shipper. Originally from Brighton, Ontario, Norm and his wife, Rose, enjoy spending time with their three children and six grandchildren, while also being foster parents.

< Philip Fisher Rotherham, UK

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Philip Fisher, better known as Phil, currently lives in Chapeltown, Sheffield, and is a production operator at ESCO Rotherham. His first job was as a packer. In his spare time, Phil enjoys watching his son, 22, play football.

< Edward Ottink Port Hope, Canada

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A native of Cobourg, Ontario, Edward Ottink attended Durham College in Oshawa before joining ESCO. He began as a heat treater and now works as a machinist. When not at work, Edward spends his time with family and enjoys woodworking, biking, and driving his Corvette.

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^ Dale Gehring Portland, OR

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^ Sherry Lohrer Newton, MS

Dale Gehring is the director of continuous improvement and sustainability. He also serves as a board member for several local organizations. Living in Oregon City, Dale and his wife, Maribeth, enjoy white water rafting, fishing, home improvement, and spending time with their family.

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Sherry Lohrer attended Decatur High School and East Central Community College.

Starting out in accounts payable at ESCO, she now works as an IT systems administrator. Her husband, Pete, also worked for ESCO, and they have three children and seven grandchildren. Sherryâ&#x20AC;&#x2122;s hobbies include swimming and golf.

< Stephen Thompson Port Hope, Canada

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Stephen Thompson currently works as a core mold team leader. After attending Loyalist College in Bellevue, Stephen worked in several fields before joining ESCO as a mold loader. He lives in Port Hope, has two children, and enjoys gardening and driving his classic Camaro.

ESCO SERVICE ANNIVERSARIES < Stewart Wilby Rotherham, UK

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Stewart Wilby currently lives in Sheffield, South Yorkshire. He joined ESCO in 1979 working as a cutter, grinder and a miller. Outside of work, Stewart loves river fishing; the largest fish he has caught was a carp weighing 17.5 pounds. He enjoys spending time with his son, daughter and grandchildren.

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^ Rebecca Van Raden

< Frank Heinlen

Rebecca Van Raden holds a BS in mechanical engineering from the University of Portland and works as a project engineer in truck bodies. She has worked as an engineer for several groups within ESCO. She and her husband have three children, and she enjoys knitting, sewing, and camping.

Frank Heinlen began his career at ESCO working a punch press.

He now is the first-shift leader at ESCO’s Bucyrus location. When he’s not on the job, Frank lives in nearby Nevada, Ohio, where he enjoys boating and relaxing at the lake. He has two daughters and two grandchildren, ages five years and eight months.

Portland, OR

Bucyrus, OH

^ Brad Wannamaker ^ Barry Tukendorf Port Hope, Canada

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Barry Tukendorf is a millwright at ESCO’s Port Hope location. He began his ESCO career as a grinder and also worked in the machine shop. A father of two, Barry stays busy with his family but also makes time to grow Christmas trees on his property and enjoy long walks with his wife and two dogs.

Port Hope, Canada

^ Dave Sulosky Windber, PA

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A graduate of Windber Area High School, Dave Sulosky has been a manufacturing manager at the Windber location since 1985. Dave enjoys hunting and fishing in his spare time. He and his wife of 34 years have two children and recently welcomed their first grandchild into the family.

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< Julie Herbert Portland, OR

Julie Herbert is a trade show and corporate event planner. She attended Portland Community College and Portland State University and joined ESCO as an administrative assistant. Her husband, Steve, also works at ESCO, along with the oldest of their three children.

Now site manager in Port Hope, Brad Wannamaker began his ESCO career as a lab technician. Brad graduated from Sir Sandford Fleming College in Ontario after studying metallurgical engineering and materials testing. He is the father of three sons and lives in Cobourg with his wife of 29 years.

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< Phil Hoice Portland, OR

Phil Hoice is an account manager who started with ESCO doing inside sales. Prior to joining ESCO, he worked in sales for 11 years at an ESCO dealer. Phil and his wife, Julie, have five children and sixteen grandchildren, and his hobbies include golf, fishing, and travel.

< Stephen May Rotherham, UK

^ Glynis Hope Rotherham, UK

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^ Daniel Knutson Portland, OR

Glynis Hope is celebrating her 25th year at ESCO Rotherham as a purchasing manager on the procurement team. Her first role at ESCO was as a buyer in 1990. Now living in Doncaster, Glynis enjoys cycling, keeping fit and traveling.

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Stephen May, or Steve, began his career at ESCO in 1989.

Steves lives in Rotherham and is now working as a production operator on the roller team. He used to play football, and continues his love for sports by running. Steve and his wife are the proud parents of two daughters.

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Daniel Knutson currently works as a journeyman millwright. At ESCO, he has also worked as a grinder, flogger, and oven operator.

Daniel enjoys elk hunting and spending time with his wife, daughter, and two grandchildren.

< Mark Myers Rotherham, UK

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Mark Myers is currently a production manager for the Mining Division. He began his career at ESCO as a machinist. Now living in Ecclesfield, Sheffield, Mark enjoys coaching cricket in his spare time.

He also likes spending time with his son, Jack, 19.

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ESCO SERVICE ANNIVERSARIES < Steve Watts Portland, OR

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Steve Watts currently works as an air arc operator. Throughout his time at ESCO, he has also worked as a flogger, grinder, oven operator, and sand technician.

A native of Portland, Steve enjoys spending time outside of work bowling, playing pool, and mountain biking.

^ James Palmer Rotherham, UK

^ Duane Forsythe

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Port Coquitlam, Canada

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Steven Baranyai lives in Maple Ridge, Canada, and works for ESCO as a welder. He attended Mary Hill High School and came to ESCO as a grinder. Aside from spending time with his two children and five grandchildren, Steve likes to spend his spare time fishing.

James “Jim” Palmer lives in High Green, Sheffield, and works at ESCO Rotherham as a production operator for the Mining Division. In his spare time, Jim is an avid fan of playing pool, or “snooker,” and enjoys spending time with his two children, his son, 10, and daughter, 7.

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Port Coquitlam, Canada

< Steven Baranyai

Duane Forsythe is a native of Edmonton and now lives in Port Coquitlam, where he works as a plant accounting manager.

His first position at ESCO was as a cost accountant. Duane’s hobbies include golf, hiking, and travel. He has one grandchild.

< James Friese Portland, OR

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James Friese currently works as a melter in Portland, Oregon. A native Oregonian, he began his career at ESCO doing main floor shakeout and has also worked as a molder. Outside of work, he loves riding his Harley-Davidson on the open road.

^ Tony Fuller Portland, OR

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Tony Fuller lives in Vancouver, Washington, and works as a refractoryman. During his time at ESCO, he has also worked as a grinder, flogger, pourer, and molder. Tony and his wife of 23 years have one son, and in his spare time, Tony enjoys hunting and fishing.

^ Jamie Geill

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Port Coquitlam, Canada

Jamie Geill has worked in a number of positions during his time at ESCO. He started in the cleaning room, has worked as a forklift and crane operator, and currently works as a retail district manager. Jamie and his wife have two children, and he enjoys hockey, golf, and skiing.

< Mike Jefferson Covington, KY

A native of Covington, Kentucky, Mike Jefferson works as a manufacturing manager. He graduated from Grant County High School and first joined ESCO as a bucket welder and tacker, and he has also served as a team leader. He likes to ride motorcycles and spend time with his two daughters.

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< Jason Jentzsch Portland, OR

Jason “JJ” Jentzsch has worked in several positions at ESCO, including as a flogger, fitter, welder, and crane operator. He attended Mount Hood Community College and Portland Community College.

Jason loves to play the blues, go camping and fishing, and travel.

^ Fernando Otero

< Michel Maffeo Frameries, Belgium

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Michel Maffeo currently works as a distribution center (DC) supervisor.

Starting with ESCO as a DC operator, he has also worked as a DC team leader. Michel and his wife, Muriel, have two children, and he enjoys going on outings with his family, bicycling, and traveling.

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^ Peter Markovic

Port Coquitlam, Canada

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Peter Markovic works on the molding team at ESCO Port Coquitlam. Now living in Maple Ridge, Peter graduated from Maples Collegiate High School in 1989. He has been married for the past 22 years to his wife, Julie. They are the proud parents of two sons, Korey, 20, and Keith, 17.

Portland, OR

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Fernando Otero attended the Universidad de Puebla and currently works for ESCO as a welder. During his time at ESCO, he has also worked as a grinder and fitter. Fernando and his wife, Elena, have been married for 40 years, and they have four children and five grandchildren.

ESCO SERVICE ANNIVERSARIES 20

< Pedro Soto-Gutierrez Portland, OR

Pedro Soto-Gutierrez currently works as a grinder and fitter. He attended Cuauhtemoc High School and Cetis Tecnologico and has worked as a pre-inspector at ESCO. Pedro and his wife, Victoria, live in Vancouver, Washington, and have two children.

< Craig Staff

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Port Coquitlam, Canada

^ Roger Palmer

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Port Hope, Canada

Roger Palmer is currently a welder in Port Hope, where he attended high school. While at ESCO, he has also worked as a refractoryman and grinder.

Roger serves his community as a volunteer firefighter. His hobbies include hunting, fishing, and coaching youth hockey.

Craig Staff currently works as a molder, after starting with ESCO in shakeout. He graduated from Port Coquitlam High School and currently lives in Pitt Meadows, Canada. Outside of work, Craig likes to spend his spare time on the golf course.

^ Kevin Thomas Portland, OR

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Kevin Thomas lives in his hometown of Portland, Oregon and currently works as a plant inspector. He graduated from Franklin High School and began his career at ESCO as a grinder. Outside of work, he enjoys taking tours of the region’s many breweries and attending beer and wine tastings.

ESCO Newton Recognizes Retirees

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Tradition Honors Employees’ Longtime Service he team in Newton, Mississippi, sends its retirees off in style. Each employee retiring is honored in a special ESCO way: with the gift of a commemorative bench that has been designed, crafted and painted by their colleagues.

“Each bench is cast with ESCO steel, and the back and seat are made with a composite decking material that won’t succumb to decaying of traditional wood,” said Andy Rowzee, general manager of foundry operations. The retiree’s name and years of service are cast into the bench, making it unique to every employee. “They get to take a piece of ESCO home to enjoy and remember us by,” continued Rowzee. “This is entirely an employee-driven project, led by the folks in the pattern shop who came up with the idea.” More than 30 Newton retirees have received the special honor so far.

At left, Tyler Lewis, welder, relaxes with his wife, Paula, on his personalized bench comemorating 41 years with ESCO. At right, Henry Chapman, an ESCO crane operator, recently celebrated his 35th anniversary before his retirement in March 2015.

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ESCO Corporation 2141 NW 25th Avenue Portland, Oregon 97210-2578 United States of America

PRESORTED STANDARD US POSTAGE PAID Portland, Oregon Permit No. 382

ESCO's Culture of Service Dedicated to Volunteerism With a wealth of enriching volunteer opportunities and experiences worldwide, ESCO employees are devoted to community service. From teaching local students about STEM education in Portland, Oregon, to sprucing up community buildings in Port Hope, Canada, ESCOites proved they are always eager to step up and serve.

Employees in Leduc, Canada, organized a food drive, collecting more than 400 pounds of non-perishable food for the local Leduc Food Bank. Down south in Newton, Mississippi, USA, employees regularly volunteer in local classrooms as certified Watch DOGS (Dads of Great Students). The U.S.-based organization provides ESCO father figures with the opportunity to safeguard, lead and mentor students during the school year.

In a village about 12 miles (20 kilometers) from our ESCO offices in Frameries, Belgium, ESCO helped Inset: ESCO Newton Site Manager, Bodie Cooper, prepare the landscape for new growth of local plant is in the Watch DOGS program with his two and animal speciesâ&#x20AC;&#x201D;cutting and removing overgrown children. branches and bushes with Natagora, a partner of Left: ESCO Frameries BirdLife International that protects and preserves spent a day in September repairing the trails. natural lands throughout the country.