The Dutch Industrial Landscape by Bokeh

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THE DUTCH INDUSTRIAL LANDSCAPE

J A A P J A N B R O U W E R | G I E D O VA N D E R Z W A N C O - AU T H O R S : R O B E R T VA N D E R L A N D E A N D R O N O V E R G O O R

A knowledge-intensive country like the Netherlands can only seize such opportunities if it attracts excellent knowledge workers and knowledge-intensive companies that consider the Netherlands a perfect place to expand and a springboard to Europe. That is why our new economic policies tend to focus on an excellent R&D infrastructure and a fiscal climate attractive to companies and knowledge workers. In addition, first-rate economic policies are being developed for our top sectors: agrofood, chemistry, creative industries, energy, high tech, horticulture, life sciences, logistics and water. In June 2011, these sectors presented their proposals to the Dutch government. In response, the government has promised to create an SME+ Innovation Fund, containing â&#x201A;Ź 500 million to be lent as venture capital. It has also agreed to introduce a facility that allows entrepreneurs to deduct their R&D investments from corporate taxes. Like the government, this book allows Dutch entrepreneurs to be heard. They tell us about their competition abroad, about outcompeting foreign companies through innovation and about the challenges they encounter in daily business life. In this way, the sectors and their companies come to life and are given a face. I hope this book contributes to a better understanding of how Dutch companies continue to work on growth and innovation.

Maxime Verhagen Deputy Prime Minister and Minister of Economic Affairs, Agriculture and Innovation

Preface

The world is on the eve of great changes. The economic centre of gravity is shifting eastward, the world population is exploding, the climate is changing, raw materials are becoming scarce and the western countries are ageing. These changes should be considered challenges and opportunities rather than dangers or threats. Rising purchasing power in emerging markets will offer new opportunities to companies active abroad, and social challenges demand new production methods and innovative products and services. Such products and services will boost economic growth and prosperity.

Many innovative hotspots can be found therein and a broad and deeply rooted knowledge infrastructure is present, of which Small and Medium Enterprises are an integral part.

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Introduction

Dutch industry is of great economic and societal value to the Netherlands. Dutch industrial companies employ 13 per cent (close to 1,000,000 working years) of the Dutch labour force. Together they generate almost 20% of the Dutch Gross National Product. As a whole the industrial sector performs as an engine for the Dutch economy and generates 75% of its exports.

Interest in Dutch industry is growing. The Dutch business community, the government and wider society greatly appreciate the value adding capacity of industrial activities. Just as in Germany and France, where industry played a major role in their remarkable economic recoveries, so our country truly benefits from our industrial core. Dutch industries also play a significant international role. However, if the subject of Dutch industry were to be raised abroad, it is highly likely that, apart from a few well-known and household names such as Shell, Philips or DAF, a wealth of other efficient and successful businesses might be ignored despite the fact that these have dominated certain industrial sectors for decades. Reasons for success This volume seeks to explore the reasons for the successes of more than fifty significant Dutch industrial companies; some well known within the country; others increasingly well known and respected in wider global markets. How is it that the Dutch have managed to maintain a strong and successful industrial base, much of it now moving out from the domestic into the wider world market?

Is it a native resilience that has come from generations of battles against the sea coupled with a lack of natural resources or the early growth of a merchant middle class that needed trade and exploration to create prosperity? Maybe businesses adopted scientific management styles that streamlined industry and reduced waste or, alternatively, were early adopters of motivational management styles that put people first. Perhaps the Dutch learned that specialisation and niche marketing created high quality and expertise, or maybe it was that small is indeed beautiful and the Dutch realised that industries owned by families were better able to resist hostile takeovers in an increasingly globalised market place. It is likely that no one cause has created the remarkable businesses described in this volume. We will let the reader decide if any single lesson may be gleaned to demonstrate success. But quite aside from that agenda, these successful industries and businesses clearly demonstrate that the state of Dutch industry is far more than a matter of survival. Dutch industry adds significant value in many markets; value from which we all benefit.

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Agrofood

The Netherlands is a land of agriculture and food industries. It benefits from a climate and a rich soil that are well suited for agriculture and from its geographical location. Logistically the Netherlands is â&#x20AC;&#x2DC;the gateway to Europeâ&#x20AC;&#x2122; with an excellent infrastructure such as exhibited by the port of Rotterdam and Schiphol airport.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

Globally leading

Characteristics

The ‘agro & food’ industries comprise one of the strongest industrial branches of the country and are of vital interest for the Dutch economy. Internationally the branch is very competitive, globally leading in terms of volume and innovativeness. In absolute numbers the Netherlands generates 7.5% of world exports of agricultural and food products, second only to the United States. This is an astonishing feat for such a small country. Exports are directed primarily at European countries (80%), although Asia, the Middle East and Africa are becoming increasingly important. Internationally the Netherlands is seen as a leader in the field of efficient and sustainable food production systems, which is a reason for the interest and engagement of countries such as China, India and Saudi Arabia.

The contribution of the agro & food branch to the Dutch GNP amounts to € 48 billion. This is generated by four main sub branches: primary food production, accounting for 11%; the food processing industry (19%); distribution, retail and the ‘out of home’ food sector (40%); and suppliers (27%).

The agro & food branch is a key contributor to the health of the population by enabling a varied and healthy diet. The branch’s mission is to create a healthier population on a healthy earth, an objective of tremendous future importance as, by 2050, some 9 billion people will have to be fed, while resources such as water, soil and energy will become becoming increasingly scarce. This requires nothing less than a revolution of the global agriculture and food industries. Because this Dutch branch is in the technological vanguard, it can be expected to play its part in meeting this challenge.

The primary food production sub branch has six main food chains: agriculture; pig breeding; dairy farming; poultry production; veal farming; and the fishing industry. As in many countries, agricultural production is generated by a large number of farms. However, the animal-based food chains have seen a consolidation in which most processing takes place in one or a few large companies. For example, the dairy industry is dominated by FrieslandCampina, a participant in this book, which processes 75% of total Dutch milk production. The processing of pork is dominated by VION and poultry production by PLUKON. A related company is Purac, also participating in this book, a leading company in natural food preservation, biobased chemicals and lactic acid based bioplastics. The food processing industry covers a wide variety of products. The most important are meat processing, dairy, oils & fats, sugar, cocoa and chocolate, bread, vegetable & fruit processing and drinks.

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> Intermediate products such as oils & fats and grain-based products also constitute an important part of activities. The food processing industry features a large number of multinational companies: of the 25 largest Dutch companies, eight are food processors. However, there are also significant numbers of strong medium-sized companies (250 to 500 employees) that form the backbone of the industry. Examples are KAAK (globally the number one in bakery machinery and a participant in this book) and Stork PMT (a leading and trend setting company in poultry processing equipment and systems). Another is Lely (a participant in this book), a market leader in robotic milking systems. Multinationals and medium-sized companies together make up 51% of the sub-branch. Suppliers provide products or services needed for the production or processing of food. These include machine industry and logistical service providers. These suppliers are in many cases essential for the competitiveness of the agro & food branch. Retail, distribution, and the ‘out of home’ segment form the fourth sub-branch. For consumers, retail is the contact point with agro & food industries. There are some 4,100 supermarkets in the Netherlands that employ 260,000 people with an additional 50,000 in distribution centers and logistic services. When it comes to added value the retail and distribution branch is the same size as the out of home segment that includes hotels, restaurants, catering and other outlets such as at petrol service stations. In almost all of these sub-branches the Dutch agro & food branch is globally leading. This can be illustrated by the following facts: • The Netherlands has an above-average number of multinationals within its borders. Thirty percent of the global top 40 food & beverage companies are active in the Netherlands. Four of them are Dutch (Unilever, FrieslandCampina, Vion and Heineken). Six of the other

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foreign companies of this top 40 have a major production site or R&D department in the Netherlands. Three of these (Kellogg, Danone and Nestlé) participate financially in the Dutch top research institute, TIFN. • Dutch agricultural companies are leading in efficiency, with productivity five times the European average and the highest in the world. The added value benefit per employee is also the highest in Europe. • Suppliers are world class and often leading. Examples are DSM, CSM and CSK, all leaders in the supply of food ingredients and Lely that provides milking robotic systems.

Knowledge infrastructure The Dutch knowledge infrastructure in agriculture and food is among the best in the world. The University of Wageningen is recognized as being one of the world’s top three in the sector, the others being Cornell and Davis (both US based). Public research keeps pace with the high level of private research in the Dutch food & beverage industry. The level of private R&D is second highest in Europe. An objective measure of its results is the number of patents. With a share of 9% of filed global patents, the Netherlands ranks fourth in the world. Cooperation between public research and private industry is at a high level. A clear example is the food valley initiative near Wageningen University.

Ambitions The branch has defined its ambition. By 2050, the global population will grow to 9 billion. This will lead to an increase of some 65% in food consumption that will have to be provided by a food branch that operates within the limits of the ecosystem and that at the same time improves the health of the global population through a healthier diet.

This requires a transition of global food supply that offers opportunities for the Dutch agro & food branch. By 2020, it aims to be: • an internationally leading sustainable branch, appreciated by society; • growing as a result of innovation, knowledge and trade; • vital for Dutch economy, employment and health; • contributing to the security of food supply of the world. Further growth is an important part of this ambition. This cannot be realized by increasing the agricultural area in the Netherlands since this is already fully utilized. Therefore, the branch focuses on three challenges: • ‘doing more with less’ by developing new sustainable food systems. Regarding sustainability the focus will be on lessening the pressure on the ecosystems by reducing the use of, particularly, carbon and phosphate and by ‘closing the cycles’; • increasing added-value by innovating with a focus on health, sustainability, taste and comfort; • to be internationally leading in the export of products and integrated system solutions.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

Facts and figures The agro & food branch, in its widest sense, creates approximately € 48 billion annually in added value for the Netherlands. € 29 billion is directly generated by primary production of food, food processing industry and suppliers, the remaining € 19 billion by the retail sector and out of home segment. This makes it the largest industrial sector of the Netherlands, providing a contribution of 10% to Dutch GNP and employment. Globally the sector is leading. It is, in absolute terms, the second largest food exporter of the world. Twelve out of 40 of the largest food & beverage companies have a major production site or R&D facilities in the Netherlands. The Netherlands has a share of 7.5% of the world’s exports of agricultural and food products. <<

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‘We want to help people move forward in life with natural dairy nutrition.’

Cees ’t Hart CEO Royal FrieslandCampina

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FrieslandCampina

Managing the Dairy Chain

‘We also want to be the most attractive dairy company for member dairy farmers in the co-operative.’

Milk is the basis for an almost endless variety of dairy products. How people use dairy products, what products they make from milk and their preferences in terms of flavour differ from one country to the next. Milk contains building materials and fuels that are important to the health and well being of people. Milk is the core business of FrieslandCampina. The company focuses on the utilisation of the almost endless possibilities of milk. With dairy-based beverages, infant & toddler nutrition, cheese, butter, cream, desserts and functional dairy-based ingredients, desserts, resulting in hundreds of products; milk is at the basis of the ‘dairy chain’.

Cees ‘t Hart, CEO at Royal FrieslandCampina, explains that the company is continuously adding value to the milk that is supplied by the farmers that are members of the cooperation: ‘We focus our innovation on a healthy and responsible diet in response to consumer preferences and social developments. Thanks to our cooperative chain, we can create distinctive products based on the variation in the components of milk.’

Cooperative thinking and working Royal FrieslandCampina is a multinational dairy company wholly owned by the dairy cooperative; Zuivelcoöperatie FrieslandCampina. FrieslandCampina’s products are sold in more than 100 countries, particularly in the key continents of Europe, Asia and Africa, although ingredients are sold world-wide. The company employs 19,000 people in 25 countries. Although a global company, FrieslandCampina also maintains a strong local focus, working closely with the people and communities where it operates. Cooperatives, such as Zuivelcoöperatie FrieslandCampina, have traditionally played an important role in the dairy sector: half of Europe’s top 10 dairy companies are cooperatives. FrieslandCampina, with 15,300 member farmers in the Netherlands, Germany and Belgium, is the largest dairy co-operative in the world, with more than 130 years of experience in cooperative entrepreneurship. The member farmers own and supervise the company. Each of them is committed as only business owners can be; working hard

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‘We want to provide people around the world with all the good things milk has to offer.’ > to supply the best quality milk, and helping to transform it into endless possibilities through FrieslandCampina, their company. When FrieslandCampina performs well, its member-farmers benefit. This cooperative structure motivates everyone to act in the best interests of the company.

From grass to glass FrieslandCampina and its member farmers are experts in milk and thus in all links of what is called ‘the dairy chain’. The member farmers know the quality of the grasslands on which their cows graze and how to supply high quality milk from which FrieslandCampina uses its expertise to process a wide and diverse range of dairy products, from healthy dairy drinks to delicious cheese and to high quality ingredients for the food and pharmaceutical sectors. This chain-based approach, from dairy farmer to consumer, enables FrieslandCampina to work more efficiently, create distinctiveness and guarantee quality to consumers and buyers alike. It thus enables the company to satisfy customers’ demands on the one hand and generate a leading price paid for

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the milk supplied by its member farmers on the other. The company has its own quality system, ‘Foqus’, for raw milk in which the cow, the environment and the milk production and processing process play a vital role. This quality system assesses both the member dairy farms and the production and distribution centers.

Milk, the ‘white fuel’ Milk is one of the richest sources of food, containing proteins, fats, vitamins, minerals and lactose; building materials and fuels that are important to the health and wellbeing of people. FrieslandCampina is very good at using and developing the almost endless possibilities of milk, ranging from standardized milk, butter and cream, cheese and cheese whey, caseinate, lactose and more. In total the ‘milk tree’ consists of 400 components, which are important to human growth, vitality, protection, weight control, health and wellness. The members of the company not only supply top quality raw milk, but can also produce milk with specific characteristics, for example by giving their cows a balanced natural feed. This results in distinctive products such as

milk with a improved nutritional value, sustainably produced ‘Landliebe’ milk, or ‘Noord-Hollandse’ cheese using only the milk from the province Noord-Holland and made following traditional recipes.

Dairy Worlds FrieslandCampina has to combine two worlds: that of the dairy farmer producing a steady flow of milk and the world of brands in fast-moving consumer markets. To closely monitor the market and its demands, the company uses ‘category teams’, each with a high-profile marketer who focuses on the consumer. Intimate knowledge of the consumer is important to be able to comply with ever-changing preferences. One such example is baby nutrition. The producer needs to know not only what the baby needs from the point of view of health and what the mother thinks is important, but also the image the company’s product is creating. These elements of market and product knowledge are being centralized, leading to international product concepts, but which can also be adapted to local habits and tastes. These products range from fresh or long-life, full-cream or low fat, dairy drinks

A NEW R&D FACILITY WILL BE BUILT IN WAGENINGEN BY DE END OF 2012, HOSTING MORE THAN 350

SPECIALISTS.

in different flavours, focussing on reduced sugar, and products with extra calcium or special bacteria to support intestinal flora. FrieslandCampina plays an important role in providing food on a daily basis for hundreds of millions of people in various regions throughout the world. The company has strong consumer brands in a broad range of products, including dairy-based beverages, infant & toddler nutrition, cheese, butter, cream, desserts and functional dairy-based ingredients. For the professional market (catering establishments, restaurants and quick service outlets) FrieslandCampina markets specific brands of ice cream and milkshake mixes, cream products and desserts. In addition to these, the company also offers customized products for the food industry and the pharmaceutical industry based on specific dairy or vegetable ingredients.

High standards At FrieslandCampina, continuity is a central element and a pragmatic, step-by-step, approach is one of the keys to success. The companyâ&#x20AC;&#x2122;s employees are proud of the products they make and remain close to

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Daily Dairy Dairy is an inseparable part of our daily lives. Dairy has long been a staple element of the western diet. In the west, people eat and drink an average of 240 to 250 kilos of dairy (converted into kilograms of milk) per person per year. People in Asia and Africa are also increasingly acquiring a taste for dairy, both in the form of western staples and in the form of products that provide a better match with local conditions, such as long-life dairy drinks and concentrated milk. Some of these products are prepared locally from imported milk powder and (milk) fat. This means that they are not only as nutritious as milk, but can also be kept unchilled for a very long time and are easy to transport over long distances. Altogether, the total global population consumes an average of just over 100 kilograms of dairy produce per person per year, measured in terms of ‘milk equivalents’.

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> the core values of the company. Quality standards are very high, not least in those the dairy farmers set both for themselves and for ‘their’ company in order to keep it ‘sharp’ and close to those core values. Throughout the years of its existence, the governance power of the co-operative has grown at the same pace as the core company, FrieslandCampina; an evolution of both parties that has benefitted the whole. Health, wellbeing and sustainability are the priorities that guide development of new dairy products. Hundreds of experts work in the company’s research centres, focussing on innovation of both the production process and products. The existing knowledge of milk and the dairy process forms a solid foundation for innovation, in which staff from a wide variety of disciplines is involved, for example for further improve the production process. A new R&D facility will be built in Wageningen by the end of 2012, hosting more than 350 specialists. With a growing global population and growing prosperity, the demand for milk and related products will equally grow. But FrieslandCampina has more ambitions than simple growth. It seeks to achieve neutral

‘climate growth’ in all its activities in the dairy chain, from cow to consumer. It also wants to show leadership in the field of corporate social responsibility by means of tackling nutrient deficiencies and obesity, making more efficient use of natural resources, developing dairy farming in Asia and Africa and setting the standard for sustainable dairy farming. <<

MILK IS ONE OF THE RICHEST NATURAL SOURCES OF NUTRITION. IT CONTAINS

PROTEINS, FATS, LACTOSE, VITAMINS AND MINERALS.

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‘We know the whole chain from grass to glass and we have intimate knowledge of dairy farming.’

Martijn Boelens Executive Director Operations Lely

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‘We help dairy farmers in creating a bright future for their business.’

Lely

Changing agriculture

Life on the farm has changed. Automation and innovation have alleviated hard labour. In recent decades Lely has played a leading role in this change, with a unique vision on agriculture: putting the well-being of cows first.

milking parlour for the first time, thus creating a chain of solutions from the care for grasslands to the extraction of milk. This latter invention also marked a change in the company as further new products increasingly used robot technology.

Lely’s fascination with technique and innovation goes back a long time. As children, the brothers Cornelis and Arij van der Lely sat by the open fire of their parents’ farm playing with a box of Meccano trying their best to give form to their ideas for alleviating the hard physical labour of farming. They turned their ideas into reality when, in 1948, they founded the company. Successful innovations such as the finger wheel rake and the Lely fertiliser spreader followed each other in quick succession. But it was, with the development of the Lelyterra power harrow in 1968, that Lely made its real breakthrough, thereby changing traditions in agriculture. This development also marked the internationalisation of the company and an unprecedented growth in sales.

Throughout these years the unequivocal mission of Lely, nowadays a globally operating company, has been and remains, to improve both the financial and social wellbeing of farmers and agricultural contractors. Now under the inspiring leadership of the second generation.

Another milestone was the introduction of the ‘Astronaut’ robotic milking system in 1992, introducing Lely machinery to the

From grasslands to milk Martijn Boelens, Executive Director Operations at Lely, explains that Lely offers solutions on the basis of knowledge and expertise of the whole chain of the dairy farm: ‘We know the whole chain from grass to glass and we have intimate knowledge of dairy farming. This is a winning combination!’ Since the founding of the company, Lely has become widely known for forage harvesting >

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THE ROBOT GUARANTEES THE

HIGHEST ACHIEVABLE MILK QUALITY WHILE ITS UNIQUE MANAGEMENT TOOLS ENSURE FARMERS FULL CONTROL OVER THEIR HERD.

> machines, which alleviate heavy physical labour in the field. The quality and quantity of fodder determines, to a great extent, how healthy and efficient milk and meat can be produced. Lely offers a complete range of forage machinery for mowing hay grass, tedding (the turning over of the grass) for fast and even drying, raking for clean fodder in the right swath (the line of cut grass), making bales with the proper density, wrapping for preservation or loading and cutting for the pit, and moving the fodder from the field to the farm. All Lely products are developed with animal and environment in mind and provide a guarantee for the best possible roughage. As alleviating the hard labour of farming is central to Lely’s mission, the milking process came under scrutiny in the 1980s. The wellbeing of the cow was the starting point. Just like human beings cows don’t like to be pushed around. Lely developed the ‘free cow’ traffic concept that makes it possible for the cows to eat, drink, rest and be milked whenever they want. This is essential for healthy lactation and optimal milk production, which has been proven to give the best results for dairy farmers.

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Astronaut: Revolutionizing the farm The Lely Astronaut robotic milking system – introduced in 1992 and commercial available since 1995 – is at the centre of the free cow traffic concept and is the most reliable ‘employee’ one can image; ready to work 24/7 all year around. Introducing the robotic milking system has revolutionized working on the dairy farm. The milking process is the most labour-intensive activity on such a farm and has a direct effect on the farm’s profitability. With the robotic milking system the farmer enters a different world, were the milking of the cows is no longer the centrepiece of his or her existence. With over 12,500 robotic milking systems sold to date, Lely is the global market leader and its success is clearly evident. The Astronaut offers a unique ‘in-line’ indication of fat and protein, per individual cow per day. Milk is analysed at every milking, allowing the dairy farmer to closely monitor herd and individual cow performance. This enables him to act and react quickly whenever necessary. The farmer can therefore concentrate on optimizing milk production, both in quantity and quality. The information

automatically generated by the milking system gives him the opportunity to focus on enhancing the wellbeing of the cow, for instance by varying the fodder or monitoring a specific animal. The weighing floor in the milking robot weighs cows at every milking. New and improved markers in the management program alert the farmer to an individual cow losing weight at too fast a rate and/or losing too much weight altogether. This enables the farmer to act proactively and to intervene at the right moment. The introduction of Lely’s Astronaut milking system has led to a method of business that ranges from ‘hands on’ to ‘managing’ a farm. This is a totally new and different concept of working as a dairy farmer with a focus on, for example, optimizing the quality of the fodder, refurbishing milking sheds and data collection. Lely supports this change of concept by offering additional services such as solutions for feeding and caring and consultancy. The Astronaut robotic milking system has shown the world a new concept of milking; a concept that will become more important in the future as the demand for robotic milking solutions continues to grow. With the milk quota system disappearing in 2015, the need for economies of scale will >

ALL LELY’S DAIRY SOLUTIONS ARE DEVELOPED FROM A CLEAR-CUT STARTING POINT:

THE COW.

‘It is not about working harder, but working smarter.’ Massage and footbath… for cows Lely takes cow care to another level with two ‘personal’ cow products: ‘The Luna’ and ‘The Walkway’. The former provides cows with their own masseur. This cow brush provides an effective way to remove scales and dust from the cow’s skin while simultaneously stimulating the flow of blood. The innovative design of the claw care foot bath makes foot bathing comfortable for the cow and efficient for the farmer.

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> grow as the market will inevitably become more competitive and volatile. Most farms are family owned and farmers are more likely to choose an automated system instead of an employee, because of the cost efficiency of the former. As a spin-off the knowledge of electronics and software, necessary for the development of the Astronaut, formed the basis for a completely new range of products from the company. These integrate automation and robotics. An example is the mobile barn cleaner that functions as ‘the personal housekeeper’ for the cows. Another is the ‘Lely Voyager’ automatic grazing system. This intelligent system comprises two mobile robots powered by a solar panel. When installed the farmer doesn’t have to personally move fencing in grazing fields: the Voyager will release a strip of fresh pasture as required during the day. Lely products are sold through local dealers, who are also responsible for maintenance and servicing. Lely invests in its dealers through frequent visits and training sessions. Milk and milking is a critical business: so Lely offers 24/7 after-sales services with a global

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network of dedicated service points, a unique Lely Center concept.

Intimate knowledge of farming Lely has been, and remains, a traditional part of the farming community. The company’s intimate knowledge of all aspects of farming, in combination with a drive to innovate, is regarded as the cornerstone of its success. For example the concept of the free moving cow in combination with robotic milking is based on a combination of studies of the behaviour of cows ‘in the wild’ and the demands of the dairy farmer for the future. This basis of knowledge rests significantly in Lely’s workforce; many employees have been with the company for many years. Lely is keen to interest engineers from a family farming background to work for the company: in this way tradition and innovation can be combined. That is why for over 60 years the name Lely has been synonymous with products, services and solutions that are relevant and meaningful to cattle farmers, simply because they have been developed to meet their specific requirements. And as a family owned company, Lely has the time to innovate. <<

‘Always avoid unused creativity.’ THIS SMALL AND SMART DEVICE HITS EVERY SPOT AND KEEPS THE ENVIRONMENT OF COWS HYGIENIC.

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Horticulture

The Dutch horticulture branch is a global trendsetter, supplying markets all over the world, as well as being a leading innovator of greenhouse technology. It is a very knowledge-intensive and innovative branch with great importance for the Dutch economy and society. As one of the largest players in the world horticultural market, the Netherlands has a reputation to be proud of and is a force to be reckoned with internationally.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

Largest exporter

Characteristics of the branch

The Netherlands is the world’s largest exporter of floriculture, bulbs and reproductive material and the number three exporter in nutritional horticulture products. Many of its breeders, growers, nurseries, auction houses, trading companies, greenhouse builders and suppliers of climate control systems can be seen as the number one in their market or profession. Wageningen University and Research Centre is the number two university in the field of horticulture.

The horticulture branch is concentrated within five core regions called greenports: • Westland (ornamental and nutritional greenhouse horticulture); • Aalsmeer (ornamental glasshouse horticulture); • Duin en Bollenstreek (bulb fields); • Boskoop (shrub and tree growers) and • Venlo (tree nurseries, greenhouse production and mushrooms).

International entrepreneurship, especially by SMEs, the drive for innovation and the co-operative way of doing business are the historical strengths of this branch.

Greenports are areas where the entire horticulture chain (nurseries, auction houses, trading companies and suppliers) is concentrated. Often, propagation and breeding companies and knowledge institutes are situated nearby as well, thus creating what are termed ‘golden triangles’. With all important parties situated so closely, there is intensive interchange of knowledge and cooperation.

Indirectly the branch offers added value and employment in other branches such as agrofood (processed products), logistics (road transport, harbours and Schiphol airport), energy (bulk consumption and energy saving), and high tech systems and materials (greenhouse technology and installations). There are also important cross overs in innovation between this branch and others: healthy food and robust crops lead to green basic materials with a high added value; the production of sustainable energy; water saving; bio-informatics; optimized logistics; LED lighting; and climate-neutral greenhouses.

The branch is characterized by five sub branches. Vegetables: Dutch vegetable production is focused strongly on export, especially to EU markets. Including re-export, the Netherlands has been the largest exporter of vegetables in the world for three consecutive years. Flower bulbs and trees/shrubs: the Dutch bulb sector has a leading >

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> position in the world market. Approximately 60% of production and more than 90% of trade is realized in the Netherlands. Plant breeding and propagation: this subsector includes the development of breeding material, propagation material, cultivation, and the trade of seeds and young plants. Cut flowers and plants: the Netherlands, with 60% of the world trade passing through Dutch companies, is the international commercial centre for flowers and plants. Flora Holland is the largest auction in the world, with an annual turnover of 4 billion euros. Greenhouse builders and suppliers: this subsector includes greenhouse builders and suppliers of heating and electro techniques, lighting, automation, screening techniques, logistics and internal transport, energy techniques and climate techniques. The branch is not only expected to produce top products, but also to make the most economic use of energy, water and fertilizers. It does this with great success. In the past twenty years the use of fossil fuel per produced unit has been halved as has CO2 emission. Thanks to clever clustering of companies in the greenports and by cogeneration (combining heat and power), fossil fuel is used extremely efficiently. With the introduction and spread of geothermal energy, climate-neutral production comes within reach. In greenhouses, insect cankers are fought, almost without an exception, with natural enemies. Outside greenhouses, biological suppression of cankers has become common practice.

Knowledge infrastructure A prime driver for success is the lead of the horticulture branch in knowledge and innovation. Faster, more consumer-oriented and

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more sustainable innovation than competitors is only possible when relevant and high-quality knowledge can be used quickly by entrepreneurs. The combination of common research and individual entrepreneurship offers the horticulture branch a unique power. These should result in the development of innovative products and technologies that respond to consumer demands for safe, tasty and healthy foods. Additionally the tightly-knit organisations of growers, growers associations, wholesale business and auction houses, with their longstanding relationships, guarantee a constant flow of knowledge, market feedback and shared experience that makes this branch very innovative and competitive.

Ambitions The ambition of the branch is to become, by 2020, the world leader of sustainable solutions for challenges in the field (quality, tastiness, food safety, pest resistance, productivity, crop protection, sustainability, energy consumption, CO2 emission). More specifically it seeks to be: â&#x20AC;˘ the world leader in international entrepreneurship: strengthening the role of the branch as director of world trade by investing in standardisation, ICT and the international networks for production and trade organisations, combined with state of the art supply chain control systems (quality control and tracking & tracing) to backtrack the source of a disease or pest; â&#x20AC;˘ the international top centre for knowledge, research and education: investing in the translation of fundamental and strategic/applied research in profitable innovations, the knowledge basis and education of young talent; â&#x20AC;˘ the most sustainable horticulture branch in the world: continuing

the high ambitions for energy efficiency (plus 2% each year), CO2reduction (30% overall and 48% for greenhouses), climate neutrality (new greenhouses and businesses), sustainable energy (20%), crop protection (zero emission) and ground and water quality (100% sustainable); • optimal in the use of space and infrastructure: realisation of intermodal transport and the reduction of fossil fuels; • a strong image and an internationally leading brand: enhancing the image of the branch in the Netherlands and strengthening the position as employer; strengthening the number one international position in the field of horticulture and number two in the field of nutritional horticulture products.

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Facts and figures The total turnover of the branch in 2010 was € 12.5 billion, employing more than 450,000 people. Nutritional food horticulture consists of 60% vegetables and 40% fruit. Of flori-culture, about 40% is cut flowers and the rest bulbs, garden plants and shrubs and trees. Total annual exports amount to € 17 billion, growing 4% each year, divided into € 9 billion from vegetables and fruit and € 6 billion from flowers, shrubs and tree and plants. The export of seeds amounted to € 1.5 billion, growing 5% each year. The Agrofood branch sells about € 900 million of processed products as tomato juice, apple sauce, pasta sauce and fruit yoghurt. The High Tech branch supplies the horticulture branch with greenhouses and high tech installations for a total amount of € 5 billion each year. <<

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Marco van Leeuwen, Ben Tax en Kees Reinink Board of directors Rijk Zwaan

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Rijk Zwaan

The art of developing new varieties

‘For over 80 years we have combined plant breeding material to create new varieties with new traits.’

At Rijk Zwaan, plant breeding has been transformed into an art form. ‘For over 80 years we have combined plant breeding material to create new varieties with new traits. In this period our people have created an impressive amount of knowledge and relations which gives us a leading edge on the global market.’

Rijk Zwaan is a specialist horticultural company, based at De Lier. It focuses on the development and sales of high-quality vegetable seed varieties for professional growers for food-production, be that in glasshouses or outdoors. Rijk Zwaan, the founder of the company, started selling seeds in a Rotterdam shop in the 1920s and by the next decade was an early adopter of laws developed and promoted by Gregor Mendel, the pioneer of the new science of genetics. Mendel had already demonstrated that the inheritance of particular traits in plants followed particular laws. These laws formed, and still form, the basis for the methods of plant breeding practised by Rijk Zwaan. By the early 21st century the company has become one of the top five largest vegetable breeders in the world with a broad product base of

more than 900 varieties in approximately 25 different vegetable crops. Rijk Zwaan is an independent family business but encourages employee participation: 86% of the shares are in the hands of three families with 14% of its capital in the hands of employees.

Seeds of innovation In order to optimise development of new and improved varieties, the company’s Research Department emphasises both what it terms ‘the software’ of the plant i.e. its genetics and DNA, and ‘the hardware’ i.e. the seed. Research is high on the company’s agenda, a policy it believes vital to maintain its leading competitive edge. Research leads to new techniques, which enable the company to develop new varieties faster and more efficiently than its competitors, while also encouraging further improvement of the seed quality of these varieties and resistance to plant diseases. This latter aspect is increasingly important. The Research Department supports plant breeders by carrying out resistance tests and developing new test protocols. Increasing use is made of molecular detection techniques. Not surprisingly there is a close cooperation >

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RIJK ZWAAN IS ABLE TO DEVELOP VARIETIES THAT PERFECTLY FIT LOCAL CONDITIONS.

between universities and the company, Rijk Zwaan now being regarded as a centre of excellence.

‘Mini, Midi, Slicer’ Rijk Zwaan believes in differentiation. For example ‘Mini, Midi, Slicer’ could be brand names in high tech industries. Instead they are 3 of a total of 5 different cucumber types with different traits for different customer groups. The company’s gene bank hosts an enormous variety which, when coupled with the long-term expertise of the company’s employees, has built the successful company. However the company has not rested on its laurels. It is constantly seeking varieties with ever-better combinations of desired traits as new market developments lead to greater and varied demands. Such demands are not just from one country or one market sector. It is worldwide, from the vegetable trade, processing industry and consumers alike. Examples include higher yield, longer ‘shelf life’ after harvesting, enhanced germination vigour of the seed and resistance to various diseases. Consumers are particularly interested in an attractive and tasty product and like to be surprised with new colours and shapes.

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The breeding activities of Rijk Zwaan take place at various locations around the world in order to make optimal use of the different climate zones. In this way the company is able to develop varieties that perfectly fit local conditions. When selecting, account is also taken of the purpose for which varieties are grown. To give an example, some varieties are tailored for the convenience market while others are developed for the frozen-food industry.

You can’t hurry nature Developing a new variety is a lengthy process. Once it is clear what traits a new variety should have, a breeder starts looking for suitable parent lines. Existing varieties are used for this purpose but there is also an enormous ‘archive’, the Gene Bank, at the breeder’s disposal, derived from the virtually inexhaustible source of biodiversity found in nature. By calling on such resources Rijk Zwaan avoids any need to use Genetic Modification. However by using (and helping) natural development and evolution, new varieties can take time to develop. It may take as long as 15 years before an idea has evolved into a vegetable for the consumer: a period of repeated crossing, testing, selecting and

collaborating within the chain. The main challenge for the immediate future is to reduce the innovation cycle time.

Care for seed Growing high-quality and reliable seed is a complex process. The parents of a new variety must be crossed at their purest stage of development and that requires great care while they are growing. It is important for seed production, and to meet customer demands, that enough seed is available of all varieties; at the right time and of good quality. To facilitate this, accurate plans are made for each crop every year, based on sales expectations. In order to have good-quality seed it is important that the seed is harvested at the right time and with great care. Depending on the crop, it is harvested manually in stages, or mechanically in one collection. Once the seed has been harvested, each batch, wherever in the world it was harvested, goes for quality control to the Netherlands’ Seed Technological Centre in De Lier.

seeds. The seed for each crop is produced in an area where conditions are the most suitable, not just for growing, but also the ripening process of the seed. Denmark, for example, is the perfect geographic location for the production of spinach seeds, producing cabbage seeds suits very well in Chile and carrot seed can be grown in North West USA.

A ‘People Company’

Acting global, growing local

Rijk Zwaan believes that people and their expertise greatly enhance the quality of the product and thus the company. As a result a lot of attention is paid to its employees. This has resulted in the award of the ‘Best Employer of The Netherlands in 2010’. Steven van Paassen, the company’s Head of Communications, believes this is the inevitable outcome of Rijk Zwaan’s human resource policies: ‘Rijk Zwaan distinguishes itself by a people-orientated approach and culture, aimed at involvement, team play, respect and trust. There is special attention to personal growth and development within the company.’

Rijk Zwaan makes use of carefully chosen world-wide locations for production of its

As a result Rijk Zwaan is a relatively ‘flat’ organization and employees are expected

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‘Our people have created an impressive amount of knowledge and relations which gives us a leading edge on the global market.’

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to act independently. Creativity and the use of initiative are encouraged with decisions arrived at by a process of debate and analysis rather than unquestioning response to hierarchical orders. The company believes that the dynamics of its market demand such a creative working method and, as a result, plenty of scope for individual input and innovation. This approach has seen stable long-term working relations, loyalty, high motivation, enormous dedication and close involvement.

Focus on customers The company develops its new vegetables in close cooperation with customers, as the latter are respected as having the best knowledge of specific needs and the most suitable vegetables for the market. Vegetable varieties have to meet the wishes of an ever growing number of customers, i.e. not only the growers themselves but, increasingly, others in the chain such as food processors and retailers. Rijk Zwaan intends to continue building long and lasting relations with such parties, based on the same people oriented approach as applied internally, in order to ensure all in the supply chain have first hand

experience of its products, as well as up to date knowledge of current and imminent innovation and development.

Food for thought The Rijk Zwaan market for seeds is global; more than 100 countries in Western Europe, the Middle East, North and South America, Australia and emerging markets in a number of Asian countries. And to enhance its market for selling seeds Rijk Zwaan also maintains worldwide seed breeding and production facilities. Roughly, two major markets can be discerned: the global market versus the niche markets. The ‘General Market’ is the most important, comprising the principal objective of how to produce tasty vegetables that meet local needs and preferences. Expected growth in global wealth in coming decades, particularly in rapidly developing nations, will have a favourable effect on this market. The ‘Specialist Market’ is much smaller and located in the richer countries. The focus here is on biological, convenience, snack vegetables or extraordinary tasty vegetables. This market also shows a lot of growth potential. <<

> IT MAY TAKE AS LONG AS 15 YEARS BEFORE AN IDEA HAS EVOLVED INTO A VEGETABLE FOR THE CONSUMER.

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Life sciences & health

Lifesciences & health is a fast growing branch with ever-increasing economic and societal importance. It is innovative and technology-driven, focussing on the health of both humans and animals and is characterized by companies and knowledge institutes in, amongst others, medical technology, biopharmaceuticals (biopharm) and regenerative healthcare. The branchâ&#x20AC;&#x2122;s business activities show strong growth, with an innovative nucleus of more than 300 companies growing at 8 per cent each year; faster than the rest of Europe. The branch employs 2.5 per cent of its labour force.

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Open innovation

Characteristics of the branch

Competition in the life sciences & health industry is particularly international and Dutch companies play a leading role in the major biotechnological deals in Europe, creating many billions of Euros of foreign investments. Each year the branch invests two billion Euros in research, the latter increasingly following the ‘Open Innovation’ model, by which companies co-innovate. These investments pay off. Many important innovations have been realised and a strong and fast growing innovative portfolio has been developed. The international health care market is fast growing, offering changes for innovative entrepreneurs.

The historical origins of life sciences & health stem from three major players: Philips, Zwanenberg/Organon and the Dutch State Mines (DSM). More than 300 SMEs have since developed around these major companies, universities and research centres, each with its own unique knowledge or product. The challenge is to combine the innovation drive of these SMEs with the market drive of the larger companies so that, together, they can make a difference.

A relatively large number of Dutch companies in this sector are active in technology development and ‘Red Biotechnology’ (that applies to medical research, in particular diagnosis and therapy). A distinction may also be drawn between dedicated life sciences companies, which have life sciences as their core activity (with high R&D expenditure and focus on research), and other life sciences companies with a focus on production and marketing. The first are mostly SMEs (small and medium sized enterprises) that do not yet have any products on the market and are not thus generating a profit; the latter are large, often multinational, companies that serve the consumer market.

The Netherlands holds a prominent position on the field of life sciences & health, scoring particularly highly with the total number of biotechnology companies, patent applications and patents granted. The Netherlands has many strong local life sciences & health clusters, each with their own focus and strengths, but often operating globally. Collaboration is strong within and between the clusters, as well as with other branches which are also strong in the same region, for example high-tech in Brabant en Twente, agrofood around Wageningen and Utrecht and chemistry in Zuid-Holland en Zuidoost Nederland. Recently, Eindhoven was proclaimed as the most intelligent cluster worldwide in the field of ICT and health care and, in 2009, Leiden Bioscience Park was proclaimed as the best business park in the Netherlands. This highly innovative sector is extremely important to the Dutch >

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> economy. Many leading national and international companies with research and development and/or production facilities are located in the Netherlands, and numerous successful start-up companies have recently been founded. The collaboration between the larger companies, SMEs, universities and research institutes creates an excellent knowledge base. Life sciences & health products are knowledge-intensive and need to go through a very extensive testing process involving many years of trials before they can be launched on the market. In order to utilise that valuable knowledge and innovative power and reduce time-to-market, it is important that this knowledge can be quickly translated into new innovative medicines, diagnostics and bio-materials. It is the larger life sciences and health companies that ultimately have the responsibility to market these products. The innovative climate in which Dutch life science & health companies operate is both stimulating and supportive. Innovations in the sector can rely on sound legislation and regulations, highly-trained personnel, well developed entrepreneurial skills and a solid network.

Knowledge infrastructure The knowledge basis of the branch is excellent. In particular, the innovative nucleus of companies, the universityrelated medical centres and the technical universities invest above average in health care related R&D. Companies such as Philips, DSM, MSD/Intervet and Crucell are world market leaders in medical imaging and patient monitoring, bio materials, and veterinary and vaccine technology. Dutch research in this branch belongs to the top four of the world. In the field of bio technology, medical imaging and veterinary technology, Dutch knowledge institutes are world market leaders.

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Top institutes In addition to these Dutch knowledge institutes that are conducting worldclass research in selected areas, research activities can also be found in many other organizations. The Centre for Translational Molecular Medicine (CTMM), Top Institute Pharma (TI Pharma) and the BioMedical Materials program (BMM), bundle, focus and intensify the cooperation between universities and industry, as well as between academic research centres. These worldclass Dutch public/private partnership research groups bring together universities, knowledge institutes and academic medical centres to work with mediumsized enterprises, global companies, as well as high tech startups. From their initial aim to improve therapies and to give a boost to life sciences research and development, their ultimate objective is to bring new products faster to the patientâ&#x20AC;&#x2122;s bedside. They focus on healthcare innovations that will ultimately lead to improved health in three interconnecting areas: diagnosis, drugs, and devices. Early and accurate diagnosis is crucial to minimize or prevent development of a disease, to define the appropriate medical treatment, or follow the result of a treatment, for example via imaging techniques. To treat symptoms of a disease or modify the disease progression, drugs are the crucial active ingredient in medical treatment and therapies. For an efficient and effective application of drugs as well as to treat certain specific symptoms, purpose-designed devices are required. These devices include drug carriers for improved targeting and/or controlled release, as well as scaffolds for tissue engineering for the functional repair and regeneration of tissue and, eventually, organs.

Three initiatives based on the top institute concept cover these areas: • the Centre for Translational Molecular Medicine (CTMM) focuses on diagnosis; • the Top Institute Pharma (TI Pharma) focuses on drugs; • and the BioMedical Materials program (BMM) focuses on devices.

Ambitions The lifesciences & health branch has the ambition that by the 2025 it should form part of the world’s top of the branch. The branch has the following ambitions: • Dutch companies in lifesciences & health belong to the three fastest growing business in the field (in terms of turnover and profitability). Their employment, innovation portfolio and turnover from exports grow faster than the European average and more than 10% of the turnover is invested in R&D; • The branch develops health solutions which enhance the quality of life, allow people stay longer in their own environment, contribute to a higher productivity in health care and other sectors and contribute to controlling the expected high rise in the costs of health care.

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Facts and figures About 314 companies are active in R&D activities in the lifesciences & health branch, employing 24,000 people. Their turnover is € 18 billion a year. In the wider branch about 3,800 organizations are active, comprising hospitals, production facilities and wholesalers, together employing a further 98,000 people and generating an annual turn-over of € 54 billion. <<

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Rudi Pauwels CEO Biocartis

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Biocartis

The making of personalized medicine

‘I want people to have quick access to personalized medicine anywhere and anytime’.

Millions of patients worldwide do not receive the best medication possible. Medical treatment is often too general to be effective for each and every one, creates unnecessary side effects for patients and can also be very costly to society. Dr. Rudi Pauwels dedicates his life to the development of personalized medicine. With his latest company, Biocartis, he takes his quest a significant step further with the development of new fully integrated, easy-to-use, random access, molecular based diagnostic solutions.

‘It is my passion to enhance the quality of life by a better treatment on the basis of better and more personalized diagnostics.’ Dr. Pauwels is a scientist-entrepreneur who started and built several successful biotechnology companies. In 1994 he was cofounder of Tibotec, which became one of the most productive and innovative companies in the field of anti-HIV drugs. These efforts resulted in the successful development and launch of three next generation anti-HIV drugs with improved drug-resistance profiles. In 1995 Dr. Pauwels co-founded Virco, a company focussing on the improvement

of the management of HIV/AIDS patients using new molecular diagnostic tools for personalized HIV drug resistance monitoring. Tibotec and Virco were acquired by Johnson & Johnson in 2002. In 1999 Dr. Pauwels founded Galapagos Genomics, a joint venture between Tibotec and Crucell. In 2007 Dr. Pauwels started Biocartis, a company that focuses on the development and commercialization of versatile and compact molecular diagnostic solutions that will make molecular diagnostic testing easier to perform in a wider range of healthcare settings. At this moment it is developing two innovative systems that share a common user interface and design philosophy: • A system for molecular diagnostics of nucleic acids (DNA/RNA) that is composed of an instrument, communication console and single use, disposable cartridges. This system can detect and quantify multiple DNA- or RNA-based biomarkers in a wide variety of patient sample types with truly minimal user intervention. • A system built around disposable, microfluidic cartridges with digitally encoded micro carriers for the rapid and sensitive detection of a broad range and >

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number of biomarkers. The first product from this latter technology will focus on protein-based biomarkers. The ultimate goal is to carry out diagnostic tests rapidly and cost-effectively when and where key clinical decisions need to be made.

Next: Personalized medicine The central theme of Dr. Pauwels’ work is enhancing personalized diagnostic tools, making possible better and more rational choices for a person-centred therapy. A good example of this was his company Virco, which focused on diagnostic tools that allowed to select the most effective combination of anti-HIV drugs at the level of an individual patient. This required a detailed analysis of the patients’ HIV strains with respect to their susceptibility or resistance to various anti-HIV drugs. This early example of personalized medicine required complex molecular diagnostic tests that could only be performed in very specialized laboratories, with costly equipment, infrastructure and requiring highly trained personnel. Dr. Pauwels’ newest company, Biocartis, takes personalized medicine a step further by

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developing the practical diagnostic tools that enable its implementations in daily clinical practice. The company’s new technologies and platforms focus on providing so called ‘random access’ systems that, in contrast to the now prevailing ‘batch-based’ instrument architectures, allow to analyze single patient samples as soon as they become available. These systems were designed with a fully integrated architecture so that molecular diagnostics become possible anywhere, for anyone at any time. With this innovation, molecular diagnostics can also be deployed outside the specialized laboratory environment and move closer to patient care such as various hospital settings, smaller clinical centers and even the physician office.

Molecular diagnostics Fuelled by the rapid pace of new insights in the molecular processes that relate to various diseases, a growing number of so-called ‘biomarker’ molecules (biomarkers) have been identified. These biomarkers, such as particular DNA, RNA or protein molecules, can for instance signal risk factors for disease, point to early development of diseases or provide much more insight into the real type and stage of a disease. The clinically validated biomarkers

therefore play a growing role in diagnosis, treatment selection and monitoring. Biocartis has been developing and licensing a series of new diagnostic technologies designed to expand the number and type of disease-related biomarkers to be analysed in any given patient sample. One of these technology platforms incorporates a new microfluidic, disposable cartridge that is pre-loaded with hundreds to thousands of digitally encoded micro carriers. Upon addition of a patient sample such as blood to the cartridge, specific probes on the surface of each microcarrier are capable of capturing and thus detecting the presence and measuring the quantity of a particular biomarker in that sample. All the signals are automatically processed and results reported to allow the physician to make the correct diagnosis and choose the best optimal treatment for his or her patient. This is essentially molecular diagnostics at work. The cartridges can process and perform complex tests on a wide variety of sample types, including oncology assays on tissue, and can also diagnose a broad range of diseases. Because of the compact size of the solutions these systems fit on any desktop. The system does not require molecular

biology experience, specialized infrastructure or highly skilled technicians and involves only 1-2 minutes ‘hands-on’ time. Adapted to both small and large laboratories, the system is fully scalable and allows random access use. In others words, it is a very fast, flexible, effective and cost efficient way of diagnosing diseases. Dr. Rudi Pauwels and his team feel that these systems represent a significant step forward in democratizing molecular diagnostics that were, hitherto, often too expensive to be used more widely. ‘I want to enable molecular diagnostics in a wider variety of healthcare settings so that anyone, at any time can access these tools when and if medically appropriate. It is like Nespresso: quick access to a great coffee of the same guaranteed quality all over the world.’

Innovation drivers As highly innovative scientist and entrepreneur, Dr. Rudi Pauwels holds strong opinions on research and innovation. ‘You have to set your targets high at the outset because during the innovation process all kind of compromises need to be made, possibly changing the relative value proposition of your innovation.’

In all his companies the future market and medical needs are the prime drivers of innovation. For Biocartis, innovators should strive in the shortest possible time to bring new products to the market that fulfil needs of potential users. All involved in the process should benefit. The commercial dimensions of an innovation should therefore play a significant part in the whole process, even though scientists tend to see these as ‘less noble’. Another crucial driving force for innovation within Biocartis, is mutual common vision of the team; a dream that is shared between all the people involved. This is vital to stimulate the creative process, although Dr. Pauwels also maintains that a structured approach towards innovation is just as important. It requires a delicate balancing act between sufficient innovation, focus, drive for best-inclass products and time awareness to ensure the team does not get off track and develops the right product at the right time. The skills of the people and the way they function as a team within Biocartis are very important. Innovation within teams means combining different spheres of knowledge and what Dr. Pauwels terms ‘semantics’ and ‘seduction’. >

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> In his own words: ‘With an ever more fragmented educational system leading to ever more specializations, one of the first challenges in our innovation process is to get people really into touch with each other and to understand each other’s languages. It is often a question of semantics, a first step where people from different disciplines learn to work together to fulfil the shared dream.’ and: ‘People, including researchers, don’t tend to share knowledge just like that. Many academic and company structures and incentive programs often favour the individual or small teams to keep knowledge, at least for some time, to themselves, giving them an edge in the competition for grants or careers. In our view, true innovation requires to have them ‘seduced’ and convinced to share their knowledge because innovation requires a process of continuous interaction of many people with different backgrounds.’ Innovation is therefore a very active process and thus involves hard work and a particular state of mind. It is often not only a spontaneous, creative process spurred by the individual but a team effort and it is the team

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manager who is responsible for creating the circumstances that stimulate this integral process. Dr. Pauwels stresses the importance of centres of excellence, where talented researchers and scientists can work together with the industry. It takes these centres a long time to come to full blossom, but they contribute tremendously to the knowledge infrastructure. This points to another problem with innovation and knowledge in companies or even sectors of industry: it takes years to reach a certain level of quality and experience but it can disappear within a short span of time. Thus an entrepreneur should take good care of his or her workforce and formulate a long-term vision for each worker’s development and place in the company. In Biocartis, investing in education and creating the above-mentioned shared vision, are key factors for long-term success.

Integrated innovation Many innovations never reach the market because it turns out that the new product can’t be manufactured on an industrial scale,

with the needed quality or at commercially acceptable costs. Therefore, Biocartis chooses from the beginning to include all these factors in its innovation process and design or license technologies and solutions with those aspects in mind. A good example of this approach is Philips’ new fast and fully automated DNA/RNA molecular diagnostic testing platform that Biocartis acquired in 2010 and since then continued to develop in collaboration with certain Philips teams. Philips has a long and successful tradition in consumer and healthcare electronics-based products and the technology platform was the result of several years of co-development by the life science research and applied technology groups of Philips Corporate Technologies. This molecular diagnostic solution has been designed for applications in a wide range of patient sample testing, including oncology and infectious diseases. It has been designed for fully-integrated, random access, multiplexed molecular DNA/ RNA diagnostic testing, including a complete and versatile sample preparation system. The system is characterized by ease-of-use, which is a prerequisite for making it suitable for all types of laboratory environments. This combination of research, development and manufacturing by Biocartis, which is resulting in easy-to-use systems will help personalized medicine increasingly to become a daily, clinical reality and will, in the near future, allow more healthcare professionals better access to molecular diagnostics thus potentially changing the face of medicine itself. <<

> A COMBINATION OF RESEARCH, DEVELOPMENT AND MANUFACTURING BY BIOCARTIS WILL RESULT IN EASYTO-USE SYSTEMS AND WILL HELP PERSONALIZED MEDICINE TO BECOME A DAILY, CLINICAL REALITY.

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High tech systems

The High Tech Systems and Materials (HTSM) branch is an essential engine for the Dutch economy. The branch supplies products and services to other branches, thereby adding to the latterâ&#x20AC;&#x2122;s performance and competitive power. The branch also holds the key to solving of some of the challenges of todayâ&#x20AC;&#x2122;s society, for example sustainable energy, effective health care, better mobility and safety. The branch develops and manufactures end user and intermediate products for customers all over the world. These can be found in healthcare, lighting, microchips and chip production, laboratory equipment, car manufacturing and logistics systems, aircraft and satellite manufacturing, food processing and safety.

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Economic engine Evershorter product life cycles and higher technological standards demand evergrowing investment in R&D and innovation. Many large manufacturers of equipment and machines have evolved to become ‘head and tail’ organisations, i.e. they formulate the specifications of the products and deliver the integral endproduct to the customer. The area in between is the domain of small and medium enterprise (SME) suppliers, whose positions are changing to become more and more important as both innovator and investor. The high intensity of the branch’s knowledge demands higher investments in fundamental and applied research. The combined knowledge of the innovation ecosystem determines the competitive power of the branch.

Characteristics of the branch The high tech branch is characterised by large multinationals such as Philips, ASML, NXP, Océ and Tata Steel and international collaboration with the high tech SME branch, universities and knowledge institutes such as the Holst Centre and the Embedded Systems Institute. The branch covers different disciplines such as materials production, automotive and the high tech manufacturing industry and is closely interwoven with the logistics branch and the information and communication technologies (ICT) services industry. Technological innovations in materials and high tech systems form significant axes along which the Dutch industrial economy runs. The production of

high tech systems has a strong global character and the products to be supplied are very capital intensive. Characteristic of this sector is that the largest part of the production value is earned through exports. As enabling technology, the high-tech branch has many interfaces with other branches: • life sciences: diagnostics and therapeutics; • logistics: sustainable transport technology; • energy: innovative materials for sustainable energy (solar panels and wind turbines) and smart grids for the generation and distribution of electricity; • water: sustainable purification and waste water systems; • creative industry: design tools (games/architecture) and applications for new media; • chemistry production technology; • agro-food/horticulture: robotics. The branch focuses mostly on international high-end niche markets, where ‘high value, high mix, high complexity’ are key. The products can be characterized as very intelligent, very efficient and very precise. The industrial basic technologies are micro and nanotechnology (design and production of semiconductors and sensors), embedded systems (software built in electronic circuits) and mechatronics (precision movement and robotics). The evolution of the technologies moves very quickly and new generations often succeed each other in less than two years. The branch is investigating a wide range of new technologies, especially in nanotechnology (very small structures), photonics (functions with light) and advanced materials (with the focus on metals and composite, complementary to the chemistry branch). >

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> In their niche market many Dutch companies are world class. This position has been made possible by the very elaborate system of innovative and entrepreneurial high tech suppliers of components, operating systems and subsystems. The centre of gravity of this branch can be found in the Southeast Brabant region, where the activities of the big system builders are located together with their first-line suppliers. In the same region the Technical University of Eindhoven can be found with other important parts of the knowledge infrastructure, for example the Holst Centre and parts of TNO. The same concentration of large companies, SMEs and knowledge institutes can be found in the neighbourhood of the Delft University of Technology and the University of Twente. Partnerships and networks are strongly European and international, with an important role for the end users (customer industries), such as automotive and aerospace manufacturers in Germany and France. In addition the Netherlands is an interesting R&D-partner for foreign companies in the electronics, aerospace and automotive businesses. The strength of the Dutch high tech ecosystem is underlined by the growing number of R&D partnerships with foreign partners.

Knowledge infrastructure The Netherlands has a very thorough knowledge base. The technical inventions and international entrepreneurship of pioneers such as Antoni van Leeuwenhoek, Heike Kamerlingh Onnes, Gilles Holst, Hendrik Casimir, Anthony Fokker, Huub van Doorne, and Anton and Gerard Philips have laid the basis for prosperity. Their legacy is flourishing in a network of specialized Dutch companies and highend research institutes. For example, the Instrument Makers School, founded in 1901 by Kamerlingh Onnes in Leiden, remains one of the

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leading colleges in the field of precision mechanics and materials. Onnes was later to be the first director of Philips’ NatLab, the first laboratory in the Netherlands for industrial research. Philips was one of the first western trading partners of China, and multinationals such as ASML and NXP, and important parts of Thales and FEI, are spin-offs from the company. In addition there are the knowledge bases in the universities including the Technical University of Eindhoven, the Delft University of Technology and the University of Twente as well as in research institutes such as the Holst Centre, the Embedded Systems Institute and M2i, the materials innovation institute. These, with many other large companies and countless SMEs, form the dynamic innovative ecosystem of the branch.

Ambitions The branch has a very high growth ambition of around 3% each year. This ambition is reflected in the investment policy of the large companies and their suppliers. To shorten time-to-market, companies and knowledge institutes have combined ‘road maps’ for areas of technology and business cases. The demands from the market are translated in strategic multiyear plans and research programmes. Important challenges for contemporary society are also part of these road maps, for example: • health care: higher quality of life and lower costs of care and cure by developing effective and efficient solutions for the prevention, detection, diagnostics and treatment of diseases, with minimal burdens for all involved, in the hospital, at the general practitioner and at home; • energy: sustainable and affordable methods for the production,

distribution, storage and use of electricity at home and in businesses; • mobility: reliable, integral and sustainable solutions for the transport of people and goods by road and air; • safety: safeguarding public and private safety in public spaces with systems that prevent and fight threats; • technology: crossover research to investigate the possibilities of high tech production, and translate this knowledge in production systems. There are some preconditions for the growth ambition. Cooperation in so called ‘golden triangles’ (end user, manufacturer, SMEs, knowledge institutes, government agencies) will become more important as will be more attention to high tech SMEs, start-ups and fastgrowing companies. The ecosystem of public/private research (22% of all privately funded research is in the form of ‘in-kind’ and ‘in-cash’ investments in public knowledge institutes) should be strengthened, combined with continuation of the current high level of investments in public and private R&D and the public knowledge infrastructure.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

Facts and figures About 390,000 people are employed in the high tech branch. Yearly investments in R&D amount to about € 2.2 billion, about half of the total private investment in R&D. In 2009 (the ‘crisis year’) the addedvalue of the branch was € 23 billion and the turnover € 73 billion. The value of exports in 2008 was € 42 billion and in 2009 € 32 billion, about 20% of all exported goods. 2010 saw a recovery back towards growth. The Dutch high tech branch is attractive to foreign investments: in 2008 these totalled € 667 million and, in 2010, almost € 1 billion.

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Wim Pasteuning Chief Technical Officer Fokker Technologies

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Fokker Technologies

Driving the Technology Roadmaps of Aerospace

‘This business has high entry barriers, and high exit barriers: once a partner you can last the whole life cycle of the aircraft.’

As one of the strongest brands in the business, Fokker Technologies is one of the most significant players in aerospace. Fokker Technologies is key player within a dozen of what are called ‘golden triangles’: Alliances between research institutes, government agencies, specialized SMEs and specialized suppliers. As such Fokker Technologies is accelerating worldwide innovation in the sector.

Because of its history Fokker has unique knowledge and expertise of aviation products and materials and, more importantly, knowledge of the design, development and manufacturing of whole aeroplanes, understanding how all parts of an airplane are interconnected. This integrator ‘knowhow’ combined with its drive for innovation is the key to success and gives Fokker Technologies a notable advantage over its competitors.

Fokker has knowledge and expertise of the development and building of airplanes for ninety years now and after having operated under different names in the last decade, it changed its name to Fokker Technologies in 2011.

Technology roadmaps

There are five individual business units within Fokker Technologies, all of which carry the name of Fokker: • • • • •

Fokker Aerostructures Fokker Landing Gear Fokker Elmo Fokker Aircraft Services Fokker Services.

Every ten years or so, a new type of plane is introduced by one of the large aircraft manufacturers such as Airbus or Boeing. Being a partner in these projects is of utmost importance for Fokker Technologies’ longterm continuity: on average a new aeroplane design is produced over a period of 20 years and has a lifecycle of more than 40 years. To become a partner in these projects a company has to offer ‘state of the art and beyond’ new technology. It is vital to have a clear view of the future wishes of the aircraft user, the airlines and the aircraft manufacturer and related technologies. To obtain the best strategic position at an >

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Certified Ipads Early in 2011 Fokker Technologies surprised the aviation community with the introduction of the iPad to the cockpit of an aircraft. Usually a great amount of information on paper, the ‘Electronic Flight Bag’, is carried on board, but with the iPad this can be reduced significantly. The use of this kind of application requires certification and Fokker Technologies was the first company not only to think of this possibility but also to have it tested and certificated.

> early stage, Fokker Technologies focuses on these new technologies by what are called ‘Technology Roadmaps’. These form the basis for long-term projects which require the cooperation of many partners to come to fruition. Project partners of these technology roadmaps prefer to work closely together in strategic alliances between research institutes, government agencies, specialized SMEs and specialized suppliers. The involvement of the aircraft manufacturer is important; hence the aircraft manufacturer itself participates in such a strategic alliance. In every strategic alliance the so-called ‘golden triangle’ has to be represented. Government, industry and knowledge need to be aligned, creating the best possible strategic position for all the participants.

Golden Triangles With its unique knowhow of airplanes, Fokker Technologies often takes a strategic role in these golden triangles as the strategic partner of the aircraft manufacturer, for instance Airbus or Boeing. The company has a pivotal role in the development process and translates the demands of the aircraft manufacturer in

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specifications for the other participants in the golden triangle. Partners in the production of an airplane most of the time are partners ‘for life’. These long lasting relations create the opportunity to grow both in projects and with the aircraft manufacturer, thereby extending and intensifying relations. Fokker Technologies was at first making the horizontal and vertical stabiliser of the Gulfstream G550; now it builds the whole tail of this plane and also the tail,fuselage panels and floor panels of the new Gulfstream G650. The process of innovation can be described as incremental; it requires a long-term investment of knowledge and time from all involved.

TAPAS A good example of strategic alliances working together on a technology roadmap is the Thermoplastic Affordable Primary Aircraft Structure-project (TAPAS). Started in 2009, TAPAS is a multiyear project in which Fokker Aerostructures, Airbus and a Dutch cluster of companies (including Ten Cate, an innovative Dutch industrial player also to be

FOKKER TECHNOLOGIES HAS A PIVOTAL ROLE IN THE

DEVELOPMENT PROCESS AND TRANSLATES THE DEMANDS OF THE AIRCRAFT MANUFACTURER IN SPECIFICATIONS FOR OTHER STRATEGIC PARTNERS.

found in this book) and institutes cooperate in the field of design and of material-, production- and connection technology of thermoplastic composites. The technology is targeted for future Airbus-developed applications, including components as fuselage and wings, the focus being an improved cost/weight performance of the material. Typically Fokker Technologies translates the wishes of the aircraft manufacturer in specifications for the material to be developed by the other partners in the triangle. These materials are then worked up by Fokker Technologies to form part of the new airplane.

TPRC TPRC, the ThermoPlastic composite Research Centre in the Netherlands, is another one of these golden triangles. TPRC is open innovation, research- and development centre that aims for thermoplastic composites for a broad range of end use markets. The partners are Boeing, Fokker Technologies, TenCate and the University of Twente. Thermoplastic composites are important materials for many contemporary high-end applications in transport, industry, energy and healthcare. TPRC primarily

executes joint development projects on new thermoplastic composite technologies and applications. In these joint projects TPRC takes into account materials, processing and design aspects. The cooperation between the partners in the golden triangles forms the basis for successful cutting-edge innovation, with Fokker Technologies typically being the interface in the ‘golden triangles’ in its role of translating the demands of the aircraft manufacturer into specifications for the manufacturers of specific materials. Innovation requires an open mindset of all the participants and a free flow of information and ideas. Within the ‘golden triangles’ there are clear rules about the intellectual property of ideas and a clear demarcation between the pre-competitive and competitive phases. Successful themes and concepts emanating from the ‘golden triangles’ can be exported to other countries to form the basis of other forms of innovation. The golden triangles lead to long lasting working relations and it is the challenge to keep these relations open and dynamic. Partners are continuously looking forward to find technologies that are fit for the future. >

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Entrepreneurial and innovative spirit from the start At the age of 20 Antony Fokker built his initial aircraft, the ‘Spin’ (Spider); This plane flew in Haarlem around the Saint Bavo Cathedral in 1911. During the First World War Fokker designed and produced several famous planes in Germany, such as the Fokker D Dreidecker (the plane of the Red Baron) and Fokker D.VII, acknowledged as one of the best planes of the First World War. After the war Fokker was founded in 1919 in the Netherlands and designed and produced successful planes for the commercial market such as the Fokker F.VII and became one of the leading aircraft manufacturers with licences all over the world and large production facilities in the USA. After the Second World War Fokker produced the Fokker F-27, F-28, F-50, F-70 and F-100 designs of which many planes still fly.

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Staying in the premier league Another high tech activity of Fokker Technologies is refitting existing aircraft to make them compliant with future requirements. Aviation authorities, pilots and customers have ever-higher demands and Fokker Technologies offers the airlines the possibility to keep in the premier league with their airplanes. Fokker Technologies has impressive track record of how to refit up to standard those aircraft types that are no longer in production and still have a lot of life left. For example, the many Fokker F-27, F-28, F-50, F-70 and F-100 airplanes have been extensively upgraded and refitted by Fokker Technologies in recent years. Fokker Technologies is a specialist in this market of ‘post production’ servicing. The opportunities of this large and growing market are huge: more than 70% of the aeroplanes that are currently in use are officially out of production. Aircraft manufacturers find it difficult to support aircraft, which are no longer in production. Another notable advantage for Fokker Technologies is the company’s readily-

available knowledge of how to design and produce both the aircraft and its parts: changing one part always has an effect somewhere else. On this basis one of Fokker Technologies’ unique selling points is the design, development and production of obsolete parts. And maybe more important: Fokker Technologies is also entitled to certify a refitted aircraft, giving the company a lead.

A story with a long tail Airplane development and design have got a long tail. It typically starts with a research project at a university, which then becomes part of a ‘Technology Roadmap’ within Fokker Technologies. The ‘Roadmap’ is then translated into an innovation project for further design and development. When mature and accepted by an aircraft manufacturer, the innovation will be incorporated into one of the new aircraft designs that emerge about every 10 years. The production phase of the plane, with the incorporated technology, will typically last for another 20 years, while the ‘out of production’ phase of the product, whether upgraded or not, might last for another

FOKKER TECHNOLOGIES OFTEN TAKES A STRATEGIC

ROLE IN SO CALLED GOLDEN TRIANGLES AS THE STRATEGIC PARTNER OF THE AIRCRAFT MANUFACTURER.

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20 years. As a result the choices in such technology can have a very long ‘tail’ of more than 40 years. Fokker Technologies has shown in the past that it is a master of guiding this technology through time. The company can take, or assist with, key decisions in almost every phase, be it the choice of subject for research or the wishes of the aircraft manufacturer that will form the basis of the ‘Technology Roadmaps’. By so doing Fokker Technologies is able to offer continuity for its customers as well as its employees and partners.

New challenges There are some interesting times ahead: Almost all growth will take place in emerging markets, while new aerospace OEM’s (Original Equipment Manufacturers) and primary suppliers will service their large domestic markets. OEM’s from the US and the EU will focus on current and new designs with global final assembly, which requires a global supply lines. The overall focus will be on sustainability creating fundamental changes. With its embedded knowledge and expertise built over a period of almost a hundred years, Fokker Technologies will maintain its market position and expand its global footprint, deliver beyond today’s excellence and innovate with a strong focus on sustainability. <<

> A NOTABLE ADVANTAGE FOR FOKKER TECHNOLOGIES IS THE COMPANY’S READILY-AVAILABLE KNOWLEDGE OF HOW TO DESIGN AND PRODUCE BOTH THE AIRCRAFT AND ITS PARTS.

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Loek de Vries President and CEO Royal TenCate

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Royal TenCate

Making the fabrics of the future

‘TenCate is about protecting people. We develop and produce materials that make a difference.’

While the origin of this former consumer textile company goes back more than 300 years, the TenCate of today is a multinational company that combines textile technology with related chemical processes. TenCate develops and produces specialist technical textile materials with specific properties, the application of which covers a broad range from protective fabrics to aerospace composites, from industrial fabrics to advanced armour, and from geosynthetics to artificial turf.

Value chain management The company’s current success is mainly the result of what its visionary President and CEO, Ir Loek de Vries, started about a decade ago, as the new millennium dawned. At that time he steered the company towards a completely new strategy, based on TenCate’s position in the value chain. The new focus became value chain management: actively managing its own B2B (Business to Business) position and the ‘value positioning’ of suppliers, customers and other partners in the chain. Both critical mass and buying power on the one hand, and market leadership and global bases on

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the other, are important aspects to beat local competition. Therefore TenCate’s new strategy has been based on the combination of the four cornerstones of its business model: end-user marketing, technological innovation, product differentiation and cost leadership.

Innovation means progress TenCate produces ‘materials that make a difference’. Such materials comprise parts of modules and systems that enable customers to attain new goals. This is why technological innovation is vital for the company although, in general, it prefers not to speak of innovation, but of progress. Any innovation can only be considered useful when it enables customers to make progress and find new solutions. ‘Open innovation’ is a special driving force within TenCate. In this process technological innovation is stimulated by cross-overs of knowledge and expertise between partners, often in different value chains. These partners are, on the one hand, knowledge institutes, such as universities in Cambridge, Twente and Delft and, on the other, customers of the company’s products, for example Airbus and Boeing. >

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TENCATE GEOSYNTHETICS

FOCUSES ON THE PROTECTION OF E.G. COASTAL AREAS VIA WATER MANAGEMENT.

> Within the complete value chain innovation can be swift and of high quality. It requires all partners in the chain to be transparent about their knowledge, expertise, future ideas or visions, projects and products, so that the combination of these can be translated into new solutions. Due to its position in the value chain TenCate does not produce integrated solutions as such, but rather develops the systems in which the company’s technical textiles are a key element or play a key role for end-users, for example for a fire fighter who needs ultimate protection against heat, flames or a ‘flash-over’. Such contact with end-users is of great importance for the ultimate properties of the complete system, in which TenCate products are the key materials for the protection of people, materiel and the environment.

Worldwide product portfolio Business economists have long asserted that companies must choose between volume production (cost leadership) and product differentiation (specialties). Nevertheless, each product is marked by a life cycle, this at times differing in each specific global market. Despite the uniqueness of a product, production at the lowest cost level possible,

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based on ongoing technological innovations or new techniques in the production processes, will always stay as ‘the last line of defence’ against competitors that at any time try to market a substitute for successful TenCate products. Thanks to its end-user marketing and product differentiation, and by means of a worldwide balanced product portfolio, TenCate is able to achieve the ultimate positioning that includes branding and well-known product labels. As a result TenCate is actively engaged in marketing a constant stream of new products with yet more enhanced benefits, while developing new applications for its unique materials. Customer behaviour will alter, markets will change, requirements will become stricter, legislation will change and standards will toughen. These are important reasons to adapt or build new functional characteristics into the new materials that are part of new solutions.

Inspiration from end-users TenCate wants to know what concerns end-users and what their requirements are. It therefore steps outside the traditional B2Brole of supplier. TenCate draws inspiration

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from the challenges that it sees in its direct contact with the end-market. This does not mean that it necessarily deals directly with the end-user. The company makes the market aware of possibilities and thereby endeavours to exert an influence on the specifications required by end-users, such as quality criteria or functional requirements. End-user marketing, technological innovation, product differentiation and cost leadership are applied together in the different worldwide niches where TenCate materials play a crucial role. Two global trends are key: ‘safety and protection’ and ‘sustainability and the environment’.

Safety and protection One of the most eye-catching market segments, in which TenCate plays a leading role, is that for protective clothing. The company’s fabrics are used by the most demanding consumers, including the US military. TenCate Protective Fabrics develops and produces materials that reduce risks while increasing productivity for industrial workers and other professionals working in the most dangerous of environments. These

Nano technology: ‘the new industrial revolution’

TENCATE ADVANCED COMPOSITES PROVIDED THE THERMOSET MATERIAL USED

IN MISSIONS TO MARS.

protective fabrics guard against heat and flames, molten metal splashes, chemicals, acids, electric arcs, static explosions and poor visibility. Yet they offer the highest levels of comfort, breathable moisture management, and mobility for welding, electrical, oil and gas utilities crews. For fire fighters and search & rescue personnel working under hazardous conditions in danger zones world-wide, TenCate’s fabrics can become lifesaving garments. By working closely with customers, end-users, fibre and chemical manufacturers and independent laboratories, TenCate Protective Fabrics has gained the lead in flame-resistant fabric research, consistent product quality, and a proven commitment to service excellence.

Materials for aerospace Another important niche role is played by TenCate Advanced Composites. This division is a worldwide market leader in the development and production of thermoplastic and thermoset composite materials. One of its breakthroughs has been the development of its advanced composite material, TenCate Cetex®. This is another success in the company’s on-going quest for lighter, stronger and safer materials. TenCate

Cetex® has already demonstrated major successes in advanced aircraft parts and secondary structures. Primary structures in aircraft will follow soon. The comprehensive and versatile range of products under the brands TenCate Cetex® and another composite material, TenCate Thermo-Lite™, also have a proven track record in many commercial and industrial markets. The extensive range of applications includes aircraft bodies, space vehicles and satellites, airplane interiors, aircraft radomes and noise absorbing materials for jet engines, such as for the A380. Not surprisingly for example, NASA uses TenCate’s advanced composite materials for numerous applications which need to withstand the hot and cold extremes of outer space. These include support for solar panels, antennas, communication dishes and heat shields. Such previously unthought-of applications have been possible thanks to stretching the limits of technical textiles into the world of future advanced materials. Outside the aerospace markets these composite materials are also used in the automotive industries, the oil & gas industry, construction and infrastructure businesses, the medical market and the recreational industry. >

Recently TenCate developed a new breakthrough technology that shook the technical textile industry. Such is the concept that it might be regarded as the most important since the start of the company in the early 18th century, or when the industrial revolution took place in the Netherlands around 1850. The revolutionary 21st century ‘nano process technology’ is based on inkjet technology, whereby inks or coating particles are applied at nano scale with great precision and speed to textile-related materials. This enables finishing by applying all kind of fluids to all kind of substrates, notably textiles and laminates. This new nano process can apply highly added-value functionalities on substrates and so meet customer-specific requirements. It also makes economies of scale possible for much smaller batches than hitherto, leading to mass customization and on-demand prints of technical textiles. With this technology a breakthrough has been accomplished in the field of industrial processes in the textile industry. Apart from new technological possibilities, one of the additional advantages of this innovative technology is that this type of production process realizes large environmental benefits, such as immense savings in water and energy. Through the combination of a patented continuous process and specially designed chemistry, the textile industry will face a huge change, both economically and ecologically.

High tech grass TenCate Grass is the global leader in synthetic turf blades and components (such as backing) and offers system solutions for world markets. TenCate synthetic turf components are engineered with advanced application knowledge to meet the demanding performance standards for today’s sport systems and landscaping needs. The combination of high-tech knowledge, decades of expertise with fibres, fabrics and finishing technologies, and the changing demands of end-users, have resulted in interesting and often ground-breaking new solutions. One of these developed by TenCate is a completely new technique to actually ‘3D weave’ synthetics turf systems. This ‘integrated’ 3D weaving will result in new and very attractive properties such as ‘infill-less’ grass, integrated shock absorption qualities and also sport technical characteristics that are an integrated part of the woven system itself. Another cross-over in this market is the future combination of the grass used in stadiums with a system of optical glass fibres as woven parts of the backing. This ‘intelligent grass’ will, in the future, make it possible to evaluate

the movements of players and thus creates new insights for the trainers. Last but not least, the number of completely recyclable synthetic turf systems is growing, starting in the landscaping market, but soon moving into the sports market as well.

Tech textiles in earth and water Geoxtextiles, from TenCate Geosynthetics, are found in applications worldwide, both on land and in coastal waters; but they are hardly seen. These technical textiles are used to strengthen and stabilise many underground and earth structures such as pavements, roads, parking areas, stockyards, railways, dikes, tunnels, and pipe lines. In general, geosynthetics are used for water management and to level stresses within upper structures, reduce frost damage within the base course, reinforce the base, enhance drainage, and protect the sealing membranes in tunnels for the drainage of seepage water of pipelines. Here again cross-overs offer interesting new solutions. TenCate offers the TenCate GeoDetect® system, which consists of a geotextile that incorporates optical glass fibres, as well as special instrumentation

TENCATE SYNTHETIC TURF BLADES MEET THE DEMANDING PERFORMANCE STANDARDS OF TODAYS’ SPORT SYSTEMS.

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equipment and software. The slightest settlements and changes in temperature and strain in, for example, embankments and sea dikes, can therefore be registered at an early stage. This makes it possible to take any necessary remedial measures and to avoid breaches. The system is built into embankment bodies during the construction of seawalls, roads and railways and the building of retaining walls, tunnels, underground structures and pipelines.

The future of advanced materials For an innovation-driven organisation such as TenCate the future offers an almost endless combination of technologies, products and markets. Cooperation within the value chain, combined with open innovation, cross-overs between divisions, endusers and customers, creates a potent mix of market-driven renewal and change, TenCate will always be at the forefront of innovative technical textiles to create solutions adjusted to the requirements and needs of demanding end-users. <<

> TENCATE PROTECTIVE FABRICS DEVELOPS AND PRODUCES MATERIALS THAT REDUCE RISKS IN THE MOST DANGEROUS OF ENVIRONMENTS.

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Margriet Nip Director Technical Strip Products Mainland Europe

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Tata Steel

Innovative Steel Making

‘We are succesfull in delivering differentiating steel strip products to high adding value industries.’

With a turbulent history, Tata Steel, the former Dutch Koninklijke Hoogovens, has developed into one of the most innovative and profitable steel industries worldwide. Tata is leading in strip products for high valueadding industries such as the automotive, construction and packaging industries. Margriet Nip, Director Technical Strip Products Mainland Europe, signals a lack of awareness about the leading role that Tata fulfils in Dutch industry:

The reason for this is, probably, that the global steel industry has faced difficult times in recent decades. The oil crisis in the 1970s, the dumping of steel by Eastern European countries in the 1990s, the merger attempts and the final take over of Hoogovens by Tata Steel, have all left an impression in many minds that the Dutch steel industry, now called Tata Steel IJmuiden, was marginalized in global competition. The reality is that it is globally among the most advanced of its kind: an independent integrated steel production company that makes iron, converts it into steel and processes it, specifically in strip products (e.g. sheet steel) for the automotive and packaging industries.

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More importantly, Tata Steel IJmuiden is a healthy company. Unlike, for example, many steel companies in the US, its profits allow it to keep up the investment level in Research and Development (R&D), needed to stay competitive and improve its market position.

Turbulent times The history of Tata Steel IJmuiden has been turbulent at times. It was set up as ‘Koninklijke Hoogovens’ in 1918 by the Dutch state and leading industrialists to counter the dependence of the Dutch economy on imports of foreign iron and steel. From an economic point of view it was a logical decision to locate the industry at the coast, as accessibility by large ships allowed the use of the best and cheapest material that was available globally. Its success was demonstrated by the fact that by the end of the 1930s it had become the world’s largest exporter of pig iron, the base product for steel production. After the Second World War the company was made the corner stone of Dutch industrial policy and expanded strongly. But the 1970s saw the start of global industrial consolidation. Large customers for steel, such as the car industry, led restructuring >

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> into a limited number of globally active manufacturers who demand locally-made sheet steel with the same specifications across the globe. Similarly, the suppliers of raw material (iron ore and coal) merged to create only a very small number of companies. Today, just three suppliers provide 70% of all iron ore worldwide. In order to avoid a squeeze by its clients and suppliers, the steel industry also embarked on a gradual merging process. In 1972 the steel factory in IJmuiden first merged with the German Hoesch. It was not a happy marriage and lasted only ten years. In 1999 the IJmuiden factory merged again, this time with British Steel into Corus. The outbreak of the global steel crisis shortly afterwards forced the IJmuiden plant to reorganize between 2002 and 2004, resulting in a return to healthy profit levels.

Crown Jewel The final step in the restructuring was the acquisition of Corus by the Indian company, Tata Steel, in 2007, a takeover that clearly strengthened the steel factory in IJmuiden. Although at the time Tata Steel (part of the much larger Tata Group) was substantially smaller, in production volume, than Corus, it benefitted from good resources of iron ore and coalmines and a fast growing home market, all

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of which were important assets in the global competitive market. In terms of mutual cooperation there was also a distinct advantage in that there was little overlap between the two organizations; both had their own markets. Furthermore, for an organization that had experienced two difficult mergers, this particular merger with Tata was regarded as very beneficial; from both sides. Several of Tata’s executives were originally trained at the steel plant in IJmuiden so there was already a connection at a personal level. Tata Steel greatly appreciated IJmuiden’s achievements and knowledge and has subsequently called it its ‘Crown Jewel’. IJmuiden, for its own part, has appreciated the warm reception by the ‘Tata family’, reinforced by the common denominator of the two companies’ social policies. In India, Tata is renowned for its investment in local society, winning an enormous loyalty from its employees in return. This concept was all too familiar to Hoogovens IJmuiden, which had championed a similar policy from the onset of the company. The strength of Tata Steel IJmuiden can be attributed only partly to its advantageous

position on the coast. In reality it is one of the most efficient steel plants in the world because, unlike many of its competitors, it consistently kept up its investment level in R&D to achieve product leadership. Today the R&D department, in the Netherlands only, employs 500 researchers. A beneficial spin off has been that its innovations are bestsellers to other steel mills world-wide, such as blast furnances and powder coal injection. Additionally it has always followed a strategy of investing in technology in order to increase its production capacity. When new steelmaking capacity was needed and other companies simply added a blast furnance or another component, IJmuiden sweated its assets and was thus able to increase efficiency and profitability by producing more with the same installations.

Ultra Low CO2 Steelmaking Tata Steel IJmuiden is particularly strong in the field of sustainable production, driven not only by environmental factors but also the need to reduce production costs. Steel made at the plant in IJmuiden has not only produced the lowest global emission of carbon dioxide per ton steel, but also requires less energy for its production. However, not satisfied with >

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> this achievement alone, Tata Steel IJmuiden is now also applying the same production targets to the processes for making iron. These have been the same for hundreds of years but the Dutch plant, as the first and only company to do this, has set itself the goal of removing a step of the process, the making of pig iron pellets, by applying ‘cyclone technology’: the HIsarna Pilot Project. This project will result in a much more efficient production process but most of all it severely reduces the carbon footprint of iron making; essential for combating climate change. If successful, this process will be the blueprint for all future steel mills. The new concept was originally researched by IJmuiden in the 1980s and 1990s and, as part of the European ULCOS programme (Ultra Low CO2 Steelmaking), has been selected by the European Industry for further development. Margriet Nip feels these are exciting times: ‘Europe leads the way with low carbon steel making and, within Europe, Tata Steel IJmuiden is one of the key players. The HIsarna pilot project was recently completed and was started up just last week (note: may 2011).’ However cost leadership alone is not sufficient enough these days. During the economic crisis

and the flooding of the steel markets with cheap Eastern European and Asian steel the answer to competition was found in procuct differentiation and customer orientation. Customer orientation is perhaps the most difficult change for large companies. Everyone in the organization needs to understand that the focus must be on helping customers to improve their market position. For example because the automotive industry, has been the frontrunner in this respect it was the first to take this on. The automotive industry in it’s endeavour to produce green cars aims for weight reduction while maintaining safety for which, among other developments, Advanced High Strength Steels (AHSS) can be used. Therefore a number of strategic investments were made to serve this market better, in particular for the production of AHSS. ‘IJmuiden world class all the way: Just Do it’ is the personal motto of Margriet Nip: In her own words: ‘All members of the management of the IJmuiden site have a slogan on their door that represents what they stand for, and this is mine’. It is an appropriate summary of how Tata Steel IJmuiden achieved world-class leadership and of how it will further improve its position in the future.

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THE HISARNA PILOT PROJECT AT TATA STEEL IJMUIDEN.

White bodies The close interaction of Tata Steel IJmuiden and its customers is most visible at Tata Steel’s Product Application Centre. At regular intervals it receives vehicle bodies (‘Bodies in White’) for which it is invited to propose new parts. The cooperation with customers is labelled ‘kitchen to kitchen’, indicating that R&D staff from both companies work closely together. The work of the Application Centre does not stop at the part itself but also involves research of coatings and joining techniques. Tata Steel researches most joining techniques used in car manufacturing. <<

> PERFORMING A STATIC DENT TEST ON AN AUTOMOTIVE OUTER PANEL.

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Water

On the North Sea coast lays a vibrant ecosystem consisting of 11,000 maritime companies within a 100-kilometre radius. There are shipbuilders collaborating with maritime engineers, dredgers with ties to equipment suppliers and R&D giants working with specialist consultancies; and all of this in a country whose historic, present and future existence is closely related to water. Furthermore, Dutch knowledge in the field of water has, for centuries, been an important key for our delta economy.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

Cutting edge knowledge Dutch knowledge and expertise in the field of dredging, harbour development, shipping, water purification technology, water management are acknowledged worldwide. The struggle of the Dutch with water has had its spin-off in the form of the cutting edge knowledge of water management and a whole range of specialized vessels to keep our harbours and waterways free and our feet dry. The history of many modern companies goes back a long time. Knowledge, in combination with a drive for innovation, earned these companies their prominent place in today‘s world market: and will for decades to come.

Characteristics of the sector The sector can be divided into three different types of activity: • maritime manufacturing industry and offshore; • water technology; • delta technology. The maritime manufacturing industry, offshore and harbours The maritime manufacturing industry specializes in so-called ‘complex specials’. Examples include fast patrol boats, utility vessels for the offshore industry, clean and advanced dredging vessels, as well as mega-sized yachts; products that have unique functionalities for the end users. These high quality and knowledge-intensive products set highly specific demands for technology, the price/performance ratio and delivery times. Damen Shipyards, Holland Yachting Group,

Huisman and IHC, all participant in this book, are examples of this type of company. A large maritime supply industry supports shipbuilders and offshore companies and provides them with a wide range of specialized equipment, semi-manufactured products, systems and means of production and service. This has always been an innovative industry and the changes in the offshore world give rise to new technological challenges and requirements for sustainability. Water technology The Netherlands can boast very sound knowledge of, and expertise in, the many facets of the discipline of water. Water technology issues are concentrated around clean drinking water, process water and waste water. Several Dutch companies such as DeSaH, Landustrie and Paques, all participating in this book, have established a prominent position in the biological treatment of water, for example aerobic biological treatment, anaerobic biological treatment, nitrification/ denitrification and membrane biological reactor (MBR) technology. Delta technology Delta technology focuses on engineering, water management and water and energy solutions. Here globally-operating companies such as Royal Haskoning (consultancy) and Royal Boskalis Westminster (maritime infrastructural projects) play leading roles. They are both represented in this book. >

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Knowledge infrastructure The integrated network of the branch is supported by universities and research institutes such as the Delft University of Technology and MARIN, the Maritime Research Institute of the Netherlands. Wetsus is one of the ‘top institutes’ in the form of a public/private partnership. It is a centre of excellence for sustainable water technology and an intermediary between research institutes and companies for trendsetting knowledge and development. It focuses on innovations that contribute significantly to the solution of global water problems and its scientific research program is defined by its private and public participants and is conducted by leading universities. Another organisation is the Wateralliance, one of the participants of this book.

Ambitions The Netherlands have the following seven ambitions for the maritime branch: ‘Water For All’ focuses on the production of fresh water, industrial water and waste water management. Dutch companies will play a larger role as ‘operator’ and ‘system integrator’ by a better cooperation, cluster formation and a better use of successful initiatives. ‘More Crop per Drop’ focuses on high-grade fresh water supply for the production of food and biomass for energy. Much is to be gained from innovative sustainable technologies for closing water cycles and from re-use in the agriculture and horticulture branch. With a large global market and inspiring business cases, there are many opportunities. ‘Enabling Delta Life’ focuses on living and working in safe, denselypopulated deltas. The Netherlands can make a difference because of the broad portfolio of services and products offered by companies,

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knowledge centres and government organisations. The Dutch ‘Building by nature’ approach is an international leader. ‘Maritime world leader’ focuses on the manufacture of clean and clever ships. Dutch maritime manufacturing companies have a very good international position in the market of complex ships, with a high addedvalue and highly technical equipment. These are complemented by the manufacture of clean and efficient ships, minimalizing the total lifetime costs for owners. As for the development and construction of harbour infrastructure, efficient, clean and safe ports are vital for the future.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

‘Exploitation on sea’ focuses on solutions to harvest energy and commodities from the sea. The Netherlands is distinguished in operations on the sea bed and in maritime oil and gas exploitation and sustainable energy. ‘Water and energy’. The international energy market is very active and will increasingly focus on sustainability. The market is young and the competition is maintaining its pace with the Netherlands. However the latter has a good starting position with tidal energy. ‘Water and ICT’ is a fast growing international market that offers many opportunities, for example in the design of ships, optimizing water currents for agriculture and reducing the risks of flooding. The challenge is to combine all the systems and introduce successful initiatives on a broader scale.

Facts and figures About 80,000 people are employed in the maritime branch. The added value created for the Dutch economy is almost € 7 billion and exports amount to €9 billion. The branch is very innovative with investments in R&D amounting to € 300 million a year. <<

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Peter Berdowski CEO Boskalis

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Boskalis

Global specialist in maritime infrastructure

‘We are involved from the design, building and financing to the maintenance of large maritime infrastructure.’

The world of maritime infrastructural projects is changing. Projects are becoming bigger and more complex. Knowledge and expertise, for example of environment and safety, are becoming increasingly important as governments, the oil & gas industry and ports not only outsource the building of infrastructure, but also rely on external parties for the entire scope of projects.

Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging and earthmoving, maritime infrastructure and maritime services sectors.

Daily business Dredging & Earthmoving is the largest activity within the group. Royal Boskalis provides innovative and comprehensive solutions in the oil and gas, ports and land reclamation and coastal protection markets all around the world. This spread in markets gives the company both a solid foundation and the flexibility to be able to take on a wide range of projects, as well as excellent prospects for balanced growth. The main clients are oil companies, port

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operators, governments, shipping companies, international project developers, mining firms and insurance companies, the last where ship salvage is involved. Boskalis can offer its clients a broad range of specific services comprising design, project management and execution as well as longer-term, continuous services. ‘For a local government organization, big infrastructural works are a once in a lifetime experience; at Boskalis this is daily business.’ Activities relating to wet and dry earthmoving traditionally comprise the company’s most important business and include port construction and waterway maintenance, land reclamation and coastal defence and riverbank protection. The company also provides a range of specialist services including offshore services and environmental contracting, many of these involving associated or subsidiary companies. Archirodon, in which Boskalis holds a 40% stake, is the strategic partner in the field of maritime infrastructure. Through the recently acquired activities of SMIT, Boskalis has also become an active player in harbour towage, salvage, transport and heavy lift. >

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BUILDING THE 700 HECTARES MAASVLAKTE 2 HARBOUR

IN ROTTERDAM, THE NETHERLANDS WHERE SAND WAS BROUGHT ONTO SHORE BY MEANS OF AMONG OTHERS ‘RAINBOWING’.

> Through SMIT and Lamnalco (in which Boskalis holds a 50% stake) Boskalis also offers a full range of terminal services. The global dimensions of the company are clear when some impressive numbers are taken into account: Boskalis employs approximately 14,000 people, including its share in partnerships. The company operates in over 65 countries across six continents. It has an extensive and versatile fleet comprising around 1,100 vessels, which can be deployed in the optimal configuration required for each individual project. Thanks to its global footprint, its high professional standards, its versatile state of-the-art fleet and its conscious focus on costs, Boskalis is an internationally leading expert in dredging & marine projects. All these key success factors come together in the large, highly complicated projects run by the company.

Early contractor involvement One of the key success factors for Boskalis has been the expertise the company possesses to manage large and complicated projects. Increasing numbers of clients require the

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earlier involvement of a contractor to assist them in the feasibility and design phases. Early contractor involvement, combined with a main contractor responsibility, is the key to the company’s ability to add the most value during a project. Such value is achieved by combining Boskalis’s innovative approach to project design, project financing, integral project management, the management of subcontractors, safety management, risk management and compliance with environmental demands. Many of these projects are time critical. A typical example is the Strait of Magellan Project in Southern Argentina in which Boskalis installed, protected and connected an interconnecting gas pipeline. This multidisciplinary project presented additional challenges including the remote location, limited infrastructure, a lack of local facilities and the complexity of the project. Weather conditions in the Strait of Magellan can be notoriously severe. The harsh local conditions feature rapid weather changes, storms, strong currents and a tidal range of more than ten metres. Despite these factors the project was nevertheless completed within a tight time frame.

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Environmental expertise Boskalis is known for its environmental expertise. The company’s engineers can work in close cooperation with the client’s environmental experts to optimize the environmental benefits of a project. This may also lead to easier acceptance of solutions during the process of acquiring planning permission. Boskalis’s unequalled experience in environmental monitoring makes it possible to adjust the execution of a project in such a way that specified environmental limits are fully met. Extending knowledge, especially of environmental effects, is at the heart of the ‘building with nature’ approach of Ecoshape, a partnership of universities, knowledge institutions, the Dutch government and Dutch companies, of which Boskalis is one of the founders and investment partners. The aim of the partnership is to offer ecodynamic designs to ensure shorter time-tomarket and a faster return on investment for infrastructural projects as well as designs that simultaneously improve socio-economic circumstances, preserve and protect environmental assets. Marine infrastructure

BOSKALIS RESTORED THE ISLAND OF VILUFUSHI, MALDIVES AFTER THE 2004

TSUNAMI. IT WAS EXTENDED FOURFOLD, RAISED AND PROTECTED BY COASTAL DEFENCES.

development can be carried out phase by phase, segment by segment, systematically seeking win-win solutions with all stakeholders involved. This leads not only to cost-effectiveness and flexibility, but also to a net environmental gain. Examples of Boskalis’s environmental expertise can be found at complicated infrastructure projects such as Gorgon LNG project near Barrow Island, Australia and projects in the Maldives and Jamaica. Protecting corals plays a crucial role in the latter and for these projects alternative solutions were adopted to ensure that the damage caused to these vulnerable ecosystems was kept to a minimum. In the case of the Jamaican project, large-scale coral relocation was an acceptable and viable solution. Here, a crew of 80 specialized divers using 10x10 meter grids moved about 11 hectares of coral. The progress and its impact were, and continue to be, monitored on a weekly basis.

Barrow Island In October 2009 Boskalis was awarded the contract for the Gorgon LNG project in Western Australia. The project included the design and construction of a port at Barrow Island, 50 km northwest from the mainland. Various dredging & marine contracting activities have to be constructed under the responsibility of Boskalis. A roll-on-roll-off facility will be constructed in addition to 200 meters of quay walls and mooring dolphins. Furthermore, Boskalis was also assigned the logistical and program management responsibility for part of the basic infrastructure. An extra complication was the fact that Barrow Island is a very vulnerable wild life reserve. The utmost care had to be taken during the works and the working force of Boskalis was housed on a chartered cruise ship.

‘In project’ innovation Many innovations at Boskalis take place as part of projects. A good example of this has come from the deepening of the entrance to

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> the port of Melbourne in Australia. To maintain its position as the number one container and general cargo port in Australia, this entrance had to be made accessible to vessels of 14 meters draught during all tidal phases. This presented two particular problems. There is a rocky seabed to the harbour entrance and the area is environmentally sensitive: the bay area of Melbourne is home to two marine national parks and the habitat for a wide range of fish species, small penguins, whales, as well as various cold water corals and sea grass beds. The company’s ‘in house’ expertise and experience was focussed on the question of what type of equipment could best be used. After extensive trials on land, Boskalis’s R&D department designed, built and tested a ripper drag head, which was mounted on the ‘Queen of the Netherlands’, a trailing hopper suction dredger. In total, 22 million m³ of rock were dredged during the project. Both the client and stakeholders were fully satisfied with the high environmental performance achieved while the project was completed well within budget and time. The project received the award of ‘Best Infrastructural Project’ in Australia.

Another special high-profile project is the Second Maasvlakte in the Netherlands. Boskalis was commissioned to build the first phase of this large extension of the Rotterdam harbour between 2008 and 2013. This will comprise a harbour area measuring 700 hectares. The port basins will be deepened to minus 20 meters so that even the largest container vessels can dock. Another component of the project is the construction of the overall sea defences. These will be about 11 kilometres long, and will include a hard and a soft section. Trailing hopper suction dredgers will bring 210 million m³ of sand from the offshore ‘borrow area’ to the coast. Cutter-suction dredgers will be used to deepen the port basins to minus 20 meters and to pump 30 million m³ of sand from the existing port to the new harbour areas. For this project a special crawler crane has been developed for the positioning of 45 tonnes concrete blocks. ‘We are pleased and proud as a Dutch company to be involved in this major project in our own country. Not only do we strengthen the position of the Netherlands as a leading nation in maritime construction, but we also actively contribute to securing the competitive position of the Rotterdam harbour.’

FROM 2011 TO 2013, BOSKALIS CONSTRUCTED

THE TX2 TERMINAL AT SUPERPORTO DO AÇU IN BRAZIL, THE LARGEST PORTINDUSTRY ENTERPRISE IN LATIN AMERICA.

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Clear focus on future growth The demand for the services of Boskalis is expected to grow during the next few years, driven by growing energy consumption, growth in global trade, growth in world population, and climate change. With so many opportunities, focus is important. The company will continue to focus on the market segments of oil & gas, port and land reclamation and coastal protection, as well as refining its geographical focus. Boskalis has identified six regions in the world in which it forecasts a high level of activity and opportunity in coming years. These ‘focal regions’ are: Northwest Europe, South- West Africa, Brazil, Middle East, Southeast Asia and Australia. The company has a clear vision and strategy and expects to be able to benefit from such rising global demand by its application of innovative solutions. <<

> BOSKALIS CREATED A LARGE OFFSHORE PORT IN ABU DHABI AND PROTECTED THE DELICATE ECOSYSTEM OF THE NEARBY AND MOST EXTENSIVE CORAL REEF IN THE ARABIAN GULF.

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Arnout Damen COO Damen Shipyards Group

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Damen Shipyards Group

The Advantage of Standardised Vessel Design

‘The knowledge and best practices of our global network of shipyards give us a leading edge in highly competitive markets.’

Damen has created many widely-appreciated advantages from its introduction and continuous improvement of standardized vessels based on fast delivery from stock, continuous product development, low cost of ownership and an easy exchange of crews between ships. Currently, Damen is the only shipbuilder in the world to offer this concept on a global scale.

With more than 35 shipyards and related companies world-wide, Damen also enables its customers to build their vessels anywhere in the world from a prefabricated shipbuilding kit. This cost-friendly concept can be applied to a full range of vessels for a wide variety of marine operations. The Damen Sales organisation, based in Gorinchem, is responsible for the worldwide marketing and sales of all products and services.

From a modest start with a single shipyard, founded by the two Damen brothers in 1927, the company has grown to acquire a leading position in modular shipbuilding based on standardised designs. This standard design concept was introduced in 1969 by Kommer Damen who is still Chairman of the Group, allowing Damen to stock workboat hulls, which in turn gave the company the ability to offer proven vessels to its customers enhanced by very short delivery times, competitive pricing and efficient post-delivery support. Damen has always focussed on the international market for small, complex, specialized vessels and has become a market leader in many niches including workboats, patrol craft, cargo vessels, dredgers and fast ferries, but most notably tugs and mega yachts.

Since the company was founded, over 5.500 Damen modular and one-off custom-built vessels have been put into service.

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Standardisation, the key to success Damen’s focus on standardisation is undoubtedly one of the keys to its success. In 1969 Kommer Damen introduced the modular building concept after listening carefully to client feedback. At that time the standardisation concept was totally new in the shipbuilding industry and up to then no other shipyard had adopted it. Since then, in each of the company’s niche markets, from tugboats to luxury yachts, Damen has developed a standard range. However, despite >

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‘Standardisation leads to lower cost-of-ownership for the customer. Strangely enough few other shipyards have followed our example, giving us a unique position in the world of shipbuilding.’

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their standard design, any vessel can be tailored according to the customer’s demands and equipped with a large range of options to meet specific requirements. It is also possible to start from scratch to design a unique vessel. Damen’s standardisation trademark offers many advantages for both customer and manufacturer, such as a fast response to customer requests because the necessary hulls are ‘in stock’. Working with standard types of hull, proven over long periods of time, guarantees reliable and tested technology. It also facilitates continuous product development as experiences with the designs and hulls stimulate constant improvements. This evolutionary process in hull and ship design makes better quality ships possible and enables more competitive pricing. The standardisation also leads to a high interchange between ships, crews and spares, thus improving training and a ‘24/7’ after-sales service, both for the customer and Damen. As the capabilities of the hull and design are well known, the shipyard group can guarantee both performance and maintenance costs during the working life of the ship. Last but not least, Damen ships have a high second-hand value, thus leading to a lower cost-of-ownership for the customer.

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The company’s best known products are its tugs and workboats and, in particular, Damen has evolved into one of the world’s market leaders in the design and construction of an extensive range of harbour and terminal tugs. The company is also involved in the construction of specialised large workboats and patrol vessels such as buoy-laying vessels, offshore patrol vessels and other large seagoing workboats. Another Damen product is dredging equipment, (Damen Dredging Equipment), a Dutch specialised supplier of dredging equipment with the roots from the early 1940s. In addition to building at the Dutch shipyard, knock-down packages are also supplied to overseas building yards. ‘We constantly focus on the wishes and experiences of our international customers and appreciate customer feedback.’

Transport in the future: intermodal connections For European transportation, an alternative has been developed to road and rail systems. Intermodal connections for both inland and short sea shipping are proposed as the

future of logistics development. Short sea shipping offers the potential for door-todoor connections for both producers and consumers. Damen has developed a wide range of vessels that are very well suited for such tasks. The company offers ‘Combi Freighters’ and ‘Combi Coasters’, designed for short sea and sea-river transport and an inland vessel range with designs for container feeders, dry cargo and product tankers.

Custom made sea power: naval vessels With the Royal Schelde (now known as Damen Schelde Naval Shipbuilding) as a member of the Damen Shipyards Group, the naval division of Damen has over a century of expertise in the design and construction of military vessels. Since the mid 1950s Damen Schelde Naval Shipbuilding has built seven new generations of frigates for the Royal Netherlands Navy. All the frigates have frequently participated in world-wide NATO missions. The youngest generation of frigates is characterised by the application of STEALTH technology, which makes them difficult to detect.

All designs are based on standardised modules and the length of patrol vessels and corvettes can be extended from 55 to 100 metres, all based on the same principle of modular design. The vessels combine economic patrolling with full-scale combat capability. This is a unique proposition no other shipyard can offer.

Mega yachts Within Damen, the new construction, refit and repair of mega yachts is prominently carried out by Amels, established in 1918 as a family owned shipyard. Amels’ dockyard provides an outstanding quality of workmanship, producing yachts with immaculate finishing. The development of these yachts demands close-knit cooperation with world-renowned yacht and interior designers. The company’s yachts combine in-house naval architecture and engineering with the cutting-edge synergy based on Damen’s technical prowess and research, to create yachts that are reliable and have a custom-built pedigree. To ensure enduring customer satisfaction, Amels has a dedicated and well-organised after-sales team of experienced engineers, who know every characteristic of the customer’s yacht.

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Ferries Damen offers a range of ferries including a number of fast car and passenger ferry designs for both seagoing and inland navigation. For inland water public transport the vessels have low-wash characteristics. Among the standardised designs fast catamarans with combined passenger and car capacity can be found as well as low-wash catamarans dedicated to public transport and tourist operation.

Offshore The Damen Offshore Series comprises a complete range of offshore support vessels of modern design such as platform supply vessels or anchor handling tug supply vessels. Other typical offshore vessels of this series are buoy laying vessels, research vessels and utility vessels. All these ships have attractive modern consistent looks. Incorporating a modular approach and a high degree of standardisation, all designs can be offered with alternative superstructures, propulsion installations, tank arrangements and dedicated options, offering the customer the possibility of creating his own vessel to suit his particular purpose. >

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> Damen has recently finalised the first ‘Twin Axe’ catamaran to support offshore wind farms. This High Speed Support Vessel is claimed to be one of Damen’s most innovative design concepts in the last decade. The ‘Twin Axe’ offers a more stable platform and uses the ‘Axe Bow’ concept which was successfully introduced some five years ago. Compared to conventional catamarans with the same displacement, the ‘Axe Bow’ concept reduces the water resistance up to 60% in waves.

Damen’s backbone: research & development Damen enjoys an excellent history in maritime innovation and the company’s product development policy is primarily driven by customer feedback and field experience. The research is dedicated to examining operational behaviour and performance of the vessels. There is a close cooperation with Marine Research Institutes, Universities and Institutes of Technology: a mutually beneficial transfer of knowledge and skills. For example, since the 1980s, Damen and Delft University of Technology have cooperated in a research programme aimed at improving sea-keeping

characteristics of high-speed vessels. This cooperation has produced the ‘Enlarged Ship Concept’ and the ‘Axe Bow Concept’, a hull shape with unparalleled sea-keeping behaviour and a significant reduction of fuel consumption. Based on this concept Damen has developed the ‘Sea Axe’ patrol boats and Fast Crew Suppliers.

Investing in people and the future As a family business Damen values continuity over simple short-term profit. The company is constantly searching for talent and investment in employees is considered one of the keys for success. Damen has an open, relaxed atmosphere with little hierarchy and its working culture can be recognized all over the world. Damen’s broad portfolio makes it possible to switch between different markets when needed and furthers its ambition to remain the leader of its market niches. Yet it continues to evolve through continued customer-focussed product innovation and a further optimization of the production process.

Facts and figures Employees: The Netherlands International Total Operating Companies: The Netherlands Abroad Total

2.300 3.300 5.600

17 18 35

Annual deliveries: Tugs / Workboats 83 Offshore Vessels 7 High Speed Craft & Ferries 39 Dredging & Specials 8 Cargo Vessels/Inland & Coastal 14 Naval & Yachts 9 Total 160 <<

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> THE NAVAL VESSELS THAT COME FROM DAMEN SHIPYARDS COMBINE ECONOMIC PATROLLING WITH FULLSCALE COMBAT CAPABILITY. THIS IS A UNIQUE PROPOSITION NO OTHER SHIPYARD CAN OFFER.

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Rob Heim CEO Paques

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Paques

The Business Case of Revitalizing Resources

‘Only a healthy combination of the specialist, the entrepreneur and the customer will lead to success.’

The availability of fresh water and of global resources is becoming a major global challenge. This challenge and the need for industries to reduce their carbon footprint are the key business drivers for Paques. Using biotechnology to purify water and gas is Paques’ profession. With innovative techniques the company helps clients to contribute to the major challenges of today: to reduce their water and carbon footprint while reclaiming valuable resources.

Being a second-generation, family-owned, business from the Netherlands, Paques has grown into a leading player in the field of water and gas treatment. The company has been driven by commitment to the development of biotechnological solutions since the 1970s. Sustainability and innovation are imbedded in the organization culture. In the last forty years, Paques has grown into a global player with an installed base of over 1,500 reference plants in over 60 countries, offices in the Netherlands and China and a network of professional partners and licensees.

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Pure Paques Paques develops and produces cost-effective water and gas purification systems using innovative biotechnology. These systems give industries and municipalities the potential to re-use and save water, to generate energy and to reclaim valuable substances from wastewater. Paques technology is based on sustainable and natural processes which enable the company’s clients to combine economic progress with environmental responsibility. Examples are the removal of organics, sulphides, nitrogen compounds (ammonium, nitrate), phosphates and metals. Paques’s anaerobic water purification systems produce energy from wastewater, whilst purifying the water and facilitating water reuse. The biogas that is produced as a byproduct in the purifying process forms a source of green energy. Since the introduction of their first BIOPAQ® reactor in 1981, Paques’ close cooperation with its partners has resulted in a broad portfolio for integrated water and gas treatment. Paques’ technologies have provided solutions that have proven to be cost-effective and reliable. >

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PAQUES’ THIOPAQ® TECHNOLOGY RETRIEVES HYDROPHILIC BIOSULPHUR FROM THE BIOGAS PRODUCED

FROM WASTEWATER.

Water. Energy. Resources. Paques offers a broad range of services, from feasibility studies, consultancy and engineering to mechanical and electrical contracting. The portfolio for water treatment is wide and includes anaerobic COD removal, aerobic COD removal, nutrient removal and recovery (such as nitrogen and phosphate), water reuse, sulphate removal and recovery, metal removal and recovery, acid, lye and salt removal and recovery, TSS removal and membrane filtration. For (bio) gas treatment, Paques offers a very efficient desulphurization technology. Paques’ customers are active in virtually every municipal and industrial sector, such as food, pulp and paper, beer and beverages, biofuels, metal and mining and chemicals. For treatment of municipal and industrial waste or process water Paques has developed a broad range of techniques. These, combined with supporting technological knowledge, ensure both a sustainable and cost-effective solution. Paques’ experience ranges from water reuse to energy savings or the reclamation of valuable components from wastewater. These can be ‘end of pipe’ or process integrated solutions. Purifying

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water on-site enables efficient reuse and can produce considerable savings in discharge costs. Paques supplies equipment for all kinds of water, at high or low temperatures, on a large or small scale, slightly or heavily polluted, for partial purifications or for further processing.

The large variety of solutions has resulted in a client base from a broad range of industries: food, pulp and paper, beer and beverages, biofuels, metal and mining, chemicals and municipal drinking and process water.

Gas can add value in many different ways. Biogas, natural gas and refinery gas contain methane while synthesis gas contains hydrogen and carbon monoxide, these gases are essential energy sources. In order to safely use these gases, hydrogen sulphide (H2S) must be removed. So the biogas produced by the anaerobic purification of wastewater or the digestion of biodegradable solids in a landfill or solids digester, can be purified by THIOPAQ®, one of Paques’ techniques. Next, it can be used as fuel in a boiler, to produce heat and green electricity in an engine or micro turbine. It can even be upgraded to green natural gas by removing the CO2. A Joint Venture with Shell, called Paqell, uses this cost-effective technology for reclaiming sulphur from natural and refinery gas. Another solution offered is the purification of flue gas so that it can be emitted into the atmosphere in accordance with environmental legislation.

Through the years Paques has been able to translate the results of fundamental biotechnological research into full-scale purification plants. There are many reasons for this success in innovation, bearing in mind that it can take a long time from research to actual production. In the first place there should be a mindset both in the company and in the individual employees in which the spirit of innovation can thrive. This enhances the chances for success. The company’s experience of the last few years, during the world-wide financial crisis, showed that when the ‘going gets tough’, creativity soared. In such difficult times there was greater understanding of the importance of innovation which created motivation to find new solutions and market opportunities. Paques’ workforce knows its market. In close cooperation with several universities and Wetsus, Technological Top Institute for Water technology, many new techniques have been invented. To further stimulate this process Paques offers >

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A spirit of innovation

PAQUES DEVELOPS AND PRODUCES COST-EFFICIENT WATER AND GAS PURIFICATION SYSTEMS USING INNOVATIVE

BIOTECHNOLOGY.

Clean Paper Mills Most paper mills have already undertaken steps to reduce the water consumption to levels around 20 m3/ton of product or lower. Further reduction below 5 m3/ton of product generally causes process water contamination that interferes with paper quality and work environment. This is especially the case for packaging papers. However, after treatment by the BIOPAQ速 anaerobic treatment systems, the process water is suitable for reuse. In addition, surplus starch and other additives are converted into biogas that powers the paper mills, thus reducing green house gas emissions and saving up to 5% of overall energy requirement.

Biogas for Breweries The BIOPAQ速 technology from Paques treats wastewater from beer breweries anaerobically before it is discharged into the municipal sewer system. Breweries can use the released and desulphurised biogas, if necessary mixed with with natural gas, to fire up steam boilers. Biogas can provide 15% of the energy required for a brewery that produces 8 million hectolitres of beer a year. Over 250 BIOPAQ速 plants are operational in the Beer and Beverages industry worldwide.

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> a working environment that combines technological knowledge with the desires and demands of the market. The majority of the company’s workforce comprises highly educated laboratory technicians, technologists, biotechnical and process engineers. These form a multifunctional working force that can master the art of transformation from fundamental research via prototyping, testing and scaling up, to full-scale production plants. There is always a tension between the long-term focus of science and the short term focus of the market: it can take up to 10 to 15 years from a scientific discovery to an application for the market. Paques connects both worlds and combines a strategic scientific outlook for the next 20 years with market demands for next year.

Accelerating market access In recent years innovation has been more focussed on the combination of so-called business lines and markets. This has led to acceleration of innovation and minimizing time to market. One such, recently introduced, internal accelerator is the ‘Paques Innovation Award’. Every employee can comply and the

best idea is awarded time and/or budget for further development. Recently two very interesting innovations have come from this scheme. The first is a new type of reactor that has been patented and the second a technique to transform a waste product in a product that becomes valuable in reuse. To keep its market leadership Paques constantly innovates not only its products but also its organisation and its relations with the market. The employees keep an open mind and equally share knowledge and sources in a similar way, leading to a flourishing of innovation throughout the Paques network. This open mindedness also means that Paques does not rely on patents, or as Rob Heim maintains: ‘We must stay ahead in our business lines.’ For fast and successful product introductions Paques works closely with carefully selected partners. In recent decades Paques has built an extensive international network. In over 60 industrialized countries and every continent, over 20 professional partners and licensees are ensuring the availability of Paques’ knowledge and technology.

In the future In the future, the focus on reducing water and carbon footprints and reclaiming valuable resources can only grow and so will the demands for Paques’ activities. With the smart combination of scientific research and market sensitivity, Paques has created an excellent position to continue its success. <<

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> SINCE 2009, DUTCH SUGAR FACTORY ‘SUIKER UNIE’ OPERATES TWO BIOPAQ®IC REACTORS TO TREAT WASTEWATER FROM SUGAR BEET AND TO PRODUCE GREEN GAS FROM RESIDUAL FLOWS.

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Energy

The Dutch energy branch is very heterogeneous and consists of a conventional energy industry and a number of industries that are involved in the production of renewable energy and systems. The conventional energy industry, mostly consisting of large multinationals, focuses on the exploration of oil and gas fields, the processing of oil and gas into fuels and the utilities that convert fuels into electricity.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

Highly competitive In addition there is a range of supporting industries that deal with the transport and trade in energy and the support of energy users with, for example, improvement of energy efficiency. As renewable energies still remain largely unprofitable, the renewable energy sector is relatively young. It counts many small and new companies that are at the beginning of their life cycle. In several of these market segments, Dutch industries are among the world leaders. This certainly applies to the gas sector. The combination of Dutch gas reserves, a strong gas infrastructure, the domestic market place for gas trading and for the manufacture of gas-based equipment such as central heating, have created a competitive industry. Dutch plans for becoming the European gas hub have a large economic potential. The petrochemical industry is another highly competitive global sector. Recent assessments of Dutch competitive strengths in renewable energies have concluded that the country has developed leading positions in photovoltaic, offshore wind, biofuels and microcombined heat and power, the latter to be applied for energy supply in houses. Further strengths can be found in expertise for energy efficiency and on-shore wind-powered generation.

Characteristics of the branch The Dutch energy sector is large because of its economic significance, and diverse and heterogeneous because of the global energy sector. The sector is also in a transition towards a sustainable future.

Gas production, storage and transport are historically well developed in the Netherlands. The country is well positioned to become the gas hub of the north west of Europe, for a number of reasons: â&#x20AC;˘ its geographical position, close to supply, markets and storage sites for natural gas; â&#x20AC;˘ the quality and transparency of the market place and its regulation; â&#x20AC;˘ its excellent infrastructure that facilitates trade and transit of gas. The Dutch solar photovoltaic industry covers a broad spectrum of technologies and invests strongly in R&D. The Netherlands maintains an internationally strong position regarding fundamental research in this field. The knowledge has been built up by several university groups as well as by the Dutch research institutes ECN (Energy Centre Netherlands) and TNO. In addition the Netherlands has a very strong knowledge base in the field of semiconductor physics and equipment for its manufacture. This enables Dutch industry to improve its position in this fast-growing market segment. In particular it is expected that equipment manufacturers for the photovoltaics industry will benefit from this knowledge base. Offshore wind is an important sector for the Dutch energy sector, particularly because of the geographical position of the Netherlands on the North Sea and its well-equipped harbours. The latter have a small tidal range and are therefore well suited for maintenance and support of the strong Dutch offshore industry. The Netherlands does not maintain an industry for making the wind turbines themselves but is, however, well able to construct the foundation and infrastructure for offshore wind farms. >

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> Biomass is a broad sector in which a large number of biomass and biofuel technologies are in various stages of development. Some of these are close to commercial application, for example for co-firing biomass in conventional power plants, waste incineration and the first generation of biofuels. However the production price of these applications has little downward potential, partly because the price of biomass is linked to the oil price and is therefore expected to rise in the near future. There is a chance however that bio-energy technologies can benefit from developments in the chemical industry. Although the energy industry can be found all over the Netherlands there are several regional clusters. A key cluster of gas industries (both natural gas as well as biogas) can be found in the north of the country close to Groningen and is labelled ‘energy valley’. For solar photovoltaic development, a cluster of industries is located in the south of the Netherlands, in the province of Limburg and near Eindhoven where Philips and parts of the Dutch semiconductor industry are based. Industries for biomass and biofuels, because of their logistical requirements, are concentrated near Rotterdam at the Maasvlakte, with a further cluster in Amsterdam harbour. Additionally there are several smaller ‘hotspots’, such as the energy research institute in Petten near Alkmaar and the wind offshore activities in Den Helder, in the north west of the country.

Knowledge infrastructure Research in the field of energy technology in the Netherlands is generally perceived to be of a high quality. For university research this is apparent from the high score on the citation index (the number of references for scientific publications), on which the Netherlands ranks fourth after

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Switzerland, Denmark and Singapore. In addition the Netherlands hosts a number of large research institutes, in particular TNO and ECN, the latter being one of Europe’s largest energy research organizations, with approximately 1,000 employees and a turnover of € 140 million (2009).

Ambitions The ambition of the branch is to undergo a transition towards one with a lower and more sustainable CO2 level but with structurally higher levels of profitability. Environmental targets have been set as follows: • a reduction of CO2-emissions of 20%; • a share of renewable energies in total energy production of 14%; • realisation of energy saving potential; • competitive energy prices, both in the short and long term; • an improved position of the Netherlands in essential energy industry sectors; • an acceleration of the process of making renewable energies available and affordable.

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Facts and figures In 2008 the contribution of the conventional energy production sector to Dutch GNP amounted to € 33 billion, corresponding to 5.6%. This included the exploration of oil and gas, the petrochemical industry and utilities. In 2008 the renewable energies sector employed 17,300 people and provided a contribution of € 1.7 billion to Dutch GNP. This included the industries for solar energy, biomass, wind, geothermal energy, hydropower, energy efficiency, electric transport, the electricity grid, hydrogen and CCS.

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Arthur van Schayk CEO Remeha

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Remeha

The New Heating Giant

‘At some point we made the choice to break out of our niche and become a multinational ourselves.’

Remeha is the living proof that a formerly sound, but conservative, technological firm can rapidly, and successfully, ‘reinvent’ itself with a new vision, a fighting spirit and a powerful culture of innovation. Formerly a niche player, the company needed to decide if it was to remain in that niche or become multinational. It opted wholly for the latter: there was no ‘middle way’.

Arthur van Schayk, CEO of Remeha, was part of the culture change that made this breathtaking development possible. Back in 2002, as commercial director of the company, he could clearly see it was time for a change, a process he instigated and helped drive through. As a result, the company grew from a turnover of €60 million and 300 employees in 2000 to a turnover of €1.800 million and 6.400 employees by 2011. Remeha is a household name in the Netherlands and market leader in domestic gas-fired central heating systems. About a third of all houses in the Netherlands and about 70 percent of Dutch businesses rely on Remeha heating systems. This market penetration is remarkable taking into account that, since the discovery of natural

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gas in the Netherlands in the 1960s, almost every house has a gas fired central heating system. What people generally don’t know is that during te last decennium the company has become the third largest in its market in Europe; not far behind the market leaders and catching up with them rapidly.

A ‘wake up call’ Founded by Gerard van Reekum in 1935, Remeha was one of the first companies in the Netherlands to develop and produce central heating systems. It quickly dominated the market for large heating systems for offices and similar large buildings and has managed to keep this lead to this very day. Starting as a family-run business, by the 1980s the ownership of the company was transferred by the family to a foundation that chose, as its primary objectives, continuity and regional employment over short-term profit and dividend. The 1980s and 1990s saw rapid advances in the technology of heating systems. During this period Remeha made its first attempt to significantly penetrate the market for smaller domestic heating systems by developing a small high efficiency central heating system. >

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REMEHA WAS THE FIRST TO

ACTUALLY BRING A COMBINED HEAT AND POWER-SYSTEM LIKE THE EVITA TO THE MARKET; ONE WHOLE YEAR AHEAD OF ITS COMPETITORS.

eVita: a new heating concept Remeha has always been technologically strong and innovative. But its latest ground-breaking innovation marks a completely new concept for central heating systems. In 2010 Remeha was the first company to introduce a small combined heat and power system (CHP) for households; the eVita. The main innovation of the eVita is its Stirling engine that generates electricity, while its heat, essentially a by-product, is used to heat the house with excess electricity sold back to the grid. The advantages are substantial: eVita saves up to 25% on the energy cost of a household and reduces substantially the amount of CO2 emitted. This technology is expected to become one of the mainstream technologies in the coming decades, making the eVita a winner on all fronts.

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> This strategy was only a partial success. Many other companies were developing similar products and Remeha’s market share and overall position did not improve. The company remained an average player in this market. Analysing its position, the supervisory board and the Remeha foundation concluded that, whereas the company was a solid, respected and stable player in the market, it tended to be technology-driven and was insufficiently customer-oriented. As a result, in 2002, the company restructured its management. The new management embarked on a rigorous overhaul of the company beginning with the creation of a shared vision, a fighting spirit and an open and decentralised culture of innovation.

Avanta: The way forward Remeha decided to take a markedly different approach to its business. The first step of the new management was to redefine the core activities. The foundry and body shop in the production department were closed and Toyota’s ‘lean production philosophy’ was applied in its assembly lines. This quickly increased the flexibility and profitability allowing for the second step; increasing the

investment in R&D and developing a next generation central heating system for the domestic market. This was a significantly different strategy to Remeha’s competitors, who were focused on cost cutting. Remeha’s new product was marketed as the ‘Avanta’. By using what was already available in the market the time to market of the new product was cut from 4 years to 1,5 years. It quickly became a winner because of its weight, price and, most importantly, because it took into account the needs of the installers of the systems who often play a crucial role in the customer buying decision. The Avanta enabled Remeha in 2004 to become the market leader for gas fired central heating systems in the Netherlands. Following the success of the Avanta, further products were developed, ever broadening the product portfolio for the domestic market.

‘A new collective DNA’ The success of this new strategy and product portfolio enabled further expansion of the company, this being deemed necessary to achieve economies of scale. Thus, in 2004, Remeha acquired De Dietrich Thermique.

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The latter was founded in 1684 and had become the largest producer of central heating systems in France. This was an excellent acquisition as the company possessed a foundry with excess capacity but lacked the technologically advanced and highly efficient heating systems that Remeha had recently developed. The cost of Remeha’s acquisition of De Dietrich was recouped in just over three years and thus marked an enormously successful take-over. In 2009, when the two companies were sufficiently integrated, Remeha further broadened its European base by taking over the British company, Baxi. This was a very large addition being, alone, twice the size of the Remeha/De Dietrich amalgamation. In the same period other companies were acquired that added differentiated products such as heat pumps and solar energy to Remeha’s product portfolio. As a result, in less than ten years, Remeha had grown from a respected, but average, national niche player to a very healthy and leading European competitor. The basis for this success was the commitment of the supervisory board to a long-term strategy combined with a willingness to take financial >

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> risks in the process. The company continues to emphasise its core values of continuity, regional employment and long term strategy and regards these as crucial in the take-overs of De Dietrich and Baxi. Such values are what the company terms its ‘collective DNA.’ In 2009 this newly-formed industry group, headed by Remeha, adopted the overall name, BDR Thermea. However, as national markets are very different, local identities and brands were retained, a guiding principle known within the group as ‘local unless’. The group’s integration policies and strategies focussed on cooperation at production and integration of the supply chain. Research and Development is based in five ‘competency centres’ located across the participating companies.

The Remeha approach Apart from its technological basis a critical success factor of Remeha is the significantly decreased time-to-market for new products as the Avanta and eVita. While many companies have been struggling for several years to bring CHP-systems like the eVita to the market, Remeha was the first to actually accomplish this, one whole year ahead of its competitors. Such success can partly be attributed to the rise of the Remeha’s R&D budget to 7% of turnover and the resultant professionalization and innovation within the R&D function. Arguably however, a more significant part of the success has come from the way Remeha has been able to make the whole value chain work for them. The development of central heating systems such as the eVita is a highly complex process in which numerous large and small field tests need to be carried out before certification, and for which the cooperation of a range of authorities is of key importance. Remeha has mastered the art of creating cooperation between all links in the value chain, thus speeding up this lengthy process and adding appreciably to the company’s competitive edge.

Heating the future Recent years have seen much technological progress at Remeha. Within the framework of the over-arching group, BDR Thermae, the company has been able to expand its portfolio of products and technologies to include central heating and domestic hot water systems that run on biomass, heat pumps and solar energy. The company also recognises that, because of the need to reduce the emission of carbon dioxide, further technology development will be needed in the field of CHP based on fuel cells. But to stay at the forefront it will be essential to understand which technologies can and will deliver. This is the objective that Remeha set itself for the future. <<

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> TOYOTA’S LEAN PRODUCTION PHILOSOPHY HAS BEEN APPLIED TO REMEHA’S ASSEMBLY LINES.

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Chemistry

The Netherlands hosts a large, strong and innovative chemical industry that includes major multinationals such as Shell, Akzo Nobel and DSM that lead in the production of basic chemicals and plastics, coatings and high performance materials.

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Ideal infrastructure

Characteristics of the branch

Nineteen of the 25 largest chemical industries in the world have production facilities and sizable R&D-activities in the Netherlands. However, there are also some 600 smaller companies, many of them young and innovative with their origins in university research. The strength of the Dutch chemical industry derives from several features. One of them is the country’s geographical position as the gateway to Europe.

The activities of Dutch chemical industry can be subdivided in five groups: • application of separation technologies for purification of raw materials such as fossil fuels, biomass, metals, minerals and ores; • synthesis, modification and further processing of raw materials and intermediate products. For organic chemistry, the main Dutch product groups are coatings, glues, rubber, plastics, fibres and components for medicine. For inorganic chemistry, the main product groups are salt, chlorine industry and metals processing; • application of chemistry in other branches for the manufacture of end products. Relevant applications include food, green energy, lifestyle and care products, pharmaceuticals, paper and packaging materials, lubricants, detergents and applications in the automotive and construction industry. Strictly speaking, these applications are not part of the chemical industry; however, chemical knowledge is indispensible; • advanced and knowledge-intensive maintenance services. The importance of these is underlined by the recent ‘maintenance valley’ initiative; • start ups and spin offs in the chemical industry and its adjacent fields such as biochemistry, nanotechnology, materials and pharmacochemistry.

The Netherlands supports an excellent infrastructure including deep-water harbours that allow for the cost-efficient supply of large quantities of raw materials such as oil and agricultural products. There is also a well developed infrastructure of waterways, roads and railways plus an extensive pipeline network that allow for quick and efficient distribution of intermediate and end products inland to destinations all over Europe. This logistical strength is increasingly recognized as an excellent starting point for the transformation of Europe towards a biobased economy. Perhaps the most important asset of the Dutch chemical industry is trust and the availability of ‘social technologies’. Historically the structures and relationships necessary for effective cooperation have been well developed. Industries, research organizations, universities and both national and regional governments are in a close dialogue with each other and join forces to achieve common goals that benefit all. Trust is an incredibly valuable social asset that has also proved to be important for foreign companies seeking to establish a foothold in the Netherlands.

Rotterdam and its surrounding area hosts one of the world’s largest petrochemical clusters. This comprises over 45 chemical industries and 5 refineries specializing in basic chemicals. Key chemical industries are Akzo Nobel, a participant in this book, DSM, Shell, LyondellBasell, Huntsman and ExxonMobil. Supporting industries are Vopak (transport and storage) and the Rotterdam Harbour. >

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> The presence of Dutch chemical industry is not only limited to the Rotterdam area, but is located in a number of other geographical concentrations, each with its own specialization. In the south west of the Netherlands, around the cities of Flushing, Terneuzen and Bergen op Zoom, another cluster of chemical industries can be found with a specialization in basic chemicals and industries. Among these are Dow Chemical’s second largest industrial site, and a participant in this book, Total, Yara, Nedalco and, for engineering plastics, Sabic. The cluster hosts the ‘maintenance valley’ initiative that aims to build a particular strength that will enhance the value of the chemical industry. In the south east of the country, a cluster of basic chemical industries has developed around the cities of Sittard and Geleen. Their origins can be traced to the coal mining activities that ended in the 1960s. The main industry, DSM (Dutch State Mines), subsequently refocused on basic chemicals and, around it, several other companies set up production facilities, in particular Sabic (the Saudi Arabia Basic Industries Corporation), a participant in this book, and OCI Melamine. The cluster is connected by pipelines to the Rotterdam cluster and Antwerp and also hosts Chemelot, a centre for open chemical innovation (COCI). The latter assists entrepreneurs to grow faster in the direct vicinity and supports larger professional chemical industries that provide venture capital, office and laboratory facilities and advice. In the east of the Netherlands, towards the German border, a cluster of industries has formed that specialize in composites, RESIN’s and industrial fibres. This cluster includes globally renowned companies such as Royal TenCate and Tejin Aramid as well as RESIN, a participant in this book, Wavin, DSM Resins and DSM engineering plastics. One of its strengths is the presence of specialized research institutes: API (Applied Polymer Innovations), TMPR (ThermoPlastic composite Research Center) and thematic industry parks such as the Polymer Science Park). In the north-east of the country, close to the city of Groningen and Delfzijl, an industrial cluster has developed that specializes in basic

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chemicals, industrial fibres and resins. This cluster includes companies such as Akzo Nobel (production of chlorine), BioMCN, a participant in this book and globally the largest producer of second-generation biofuels, and Tejin Aramid that produces the basic material for the production of aramid fibres.

Knowledge basis The Netherlands has an outstanding knowledge infrastructure that covers all the key research areas such as process technology (ISPT, Institute for Sustainable Process Technology), chemistry for biological, medical and life science, biotechnology, materials technology (DPI, Dutch Polymer Institute) and nanotechnology. Independent international reviews of research at Dutch universities has consistently qualified it as ‘very good’ and in many areas as ‘internationally leading’, for example in the field of catalysis. Furthermore, Dutch chemical industry can draw from a workforce with a high level of education, which in turn enhances high productivity. Finally, as the importance of chemical industry is recognized, it has benefitted from a government policy of investing in research and public/private partnerships.

Ambitions The Dutch chemical industry recognizes the enormous challenges that face the world: the depletion of raw materials; the dangers of climate change; the tension between nature, environment and economy; and the ever-progressing globalization of the economy. The future (‘new earth’) requires a different way of thinking about energy and food production, re-use of feedstock, materials, production processes and ‘cradle to cradle’ concepts. These challenges require ‘new chemistry’ that will enable a new and sustainable earth. Therefore the branch as a whole, supported by research and government, has stated its objectives for 2050 to be: • the leading country in the field of ‘green’ chemistry; • among the three globally leading countries in the field of ‘smart materials’.

To achieve this, the Dutch chemicals industry embarked on a distinct road. Its key actions in the future will aim to: • support entrepreneurship, innovation and competitiveness, by consolidating the high level of cooperation between industry, research institutes and regional/national government in order to achieve a maximum leverage on investments; • structurally reinforce scientific research by establishing excellence centres that are able to attract foreign talent. These shared-use centres will be the expensive infrastructure such as is available to large industry, SMEs and researchers and will be expected to hatch new ideas and concepts and to generate spin-off in the form of new ventures; • develop and maintain an educational system that is closely linked to the needs of the branch; • promote the interaction between industry and the knowledge infrastructure.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

In addition, the chemical industry participates in a cross-branch programme: ‘The biobased economy’. Other participating branches are agrofood, horticulture, energy, water and logistics. The actions and business plans of the Dutch chemical industries for the coming decades need to achieve growth some 2% higher than the average for Dutch industry. Furthermore, it will require a doubling in the number of PhD graduates in chemical engineering by 2015 and a drastic improvement in the overall sustainability of Dutch industry by 2030.

Facts and figures The Dutch chemical industry is the second largest industrial employer of the Netherlands. In 2010, it employed approximately 64,000 people and had a turnover of € 47 billion. The branch exports 75% of production which accounts for 20% of total Dutch exports. It generates a positive trade balance of € 14 billion. The strength of the industry is demonstrated by its growth: in the period 2002-2009, despite the global recession, its growth averaged between 5% and 6%. The branch annually invests 2.5% of its turnover in R&D, representing € 1.4 billion annually. <<

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Jim Rees Managing Director AkzoNobel Automotive & Aerospace Coatings

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AkzoNobel

Getting colour right

You may have never heard of AkzoNobel Automotive & Aerospace Coatings (hereafter A&AC), but if you own a car, ride by rail or public transport, or travel by commercial or private airplane, its products have almost certainly touched your life.

‘If you own a car, ride by rail or travel by plane, our products have almost certainly touched your life.’

For A&AC, ‘getting colour right’ is its highest priority. A&AC is one of the world’s leading producers of automotive refinishes, a global leader in coatings for commercial vehicle producers, a producer of coatings for exterior automotive plastic parts such as bumpers and mirror housings and the number two provider of coatings to the aerospace industry. As a business unit of AkzoNobel, the largest coatings company in the world, A&AC has a long and proud history. Its roots date back more than 200 years, to a paint company established by a Dutchman named Wiert Willemszoon Sikkens in the town of Groningen in the Netherlands. Sikkens produced high quality lacquers, including paints for horse-drawn carriages before the dawn of the automobile. The company then began supplying coatings to the fledgling

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automotive industry more than a hundred years ago and the Sikkens brand is still one of AkzoNobel’s flagship decorative paint brands. Fast forward to 2011 and Sikkens remains A&AC’s premium vehicle refinish brand. The name still represents the highest quality and the most advanced technology and innovations in performance and service, unmatched in the automotive refinishes industry.

Global playing field But there is much more to Automotive & Aerospace Coatings than Sikkens. A&AC is a true global player, operating in more than 60 countries. In addition to Sikkens, A&AC meets the needs of bodyshop owners and repair specialists with other world-leading brands including Lesonal, Dynacoat, and Wanda, delivering comprehensive repair systems that cover everything from fillers and primers to topcoats, at all price levels. It offers high performance brands including Sikkens Autocoat BT, Mason CT and U-Tech to fleet owners and original equipment manufacturers (OEMs) building commercial trucks, buses, railway carriages, recreational vehicles, and agricultural and industrial >

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AN EXAMPLE OF SUCCESFULL BRANDING; BODY SHOP OWNERS IN SOUTH AMERICA ARE EAGER TO SELL WANDA PRODUCTS TO THEIR CLIENTS.

equipment. Via its Aerospace Coatings sub-business unit, it delivers a full range of extremely high performance coatings to the commercial, general and business aviation, land defence and military air sectors, including brands such as Eclipse®, Aviox®, Alumigrip®, and Aerodur®. A&AC is the number three provider of automotive refinishes in the world and counts among its customers most of the best-known names in the automotive and aerospace industries, including Volkswagen, Toyota, Fiat, Ford, GM, International, Hyundai, Ford, Air Canada, Airbus, Boeing, Etihad Airways, and Northwest Airlines. It employs over 5000 people and had revenues in 2010 of just under €1 billion. As a business unit of AkzoNobel, A&AC has great advantages in exploiting the global reach of a Fortune 500 company. From its original base in the Netherlands and later Western and Southern Europe, it first expanded into North America in the 1980s, and then into Latin America, Eastern Europe and Asia in subsequent years. A&AC now maintains manufacturing and research facilities across the globe. There are production facilities in Indonesia, China,

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Europe, South America, Mexico, and the United States, major research sites in China, India, Europe, Brazil and the U.S., and colour development sites in China, Indonesia, India, Brazil, Western Europe, Mexico and the U.S. Increasingly, these research and colour laboratories are working together on shared technology platforms to deliver products with consistent colour and performance, tailored to meet local and regional needs. In particular, A&AC has focused on delivering appropriate solutions to meet the needs in fast growing markets such as China, India, Brazil and Eastern Europe. This means maintaining the high performance standards that have always characterized A&AC products, but doing so at price levels that will be attractive to customers in the ‘mid-level’ segment.

Pioneering Time after time, A&AC has been a pioneer in its industry. The company was the first to introduce fast-drying lacquers in the 1920s and the first to produce multi-product auto refinishing systems in the 1950s. In the following decade, it introduced the first revolutionary, durable, two-component topcoats and in the 1970s it led the way with

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mixing machines and computerized colour documentation. It once again set trends for the industry in the following decades with integrated computerized mixing systems and high performance, low VOC water based applications. Most recently it has continued to offer breakthrough products such as: its UV-curable Sikkens Autoclear UV clearcoat; the UV-LED spray gun that uses an array of integrated LED lights to cure the UV paint as it is applied; stickerfixTM, its DIY adhesive repair system; Autoclear LV Exclusive, a self-healing clearcoat; and Integard 10220, a waterborne peelable camouflage coating that Aerospace Coatings markets for military applications.

Colour accuracy For any coatings company colour is, of course, vitally important. A&AC is a company that is expected to perfectly match the colours of existing vehicles and livery, but it is also more than that; it is the ultimate challenge. A&AC invests enormous resources to ensure that it can deliver ‘first time right’ colour to all its customers. To do so, it has built a database of hundreds of thousands of colours, to provide colour formulae to its global network of users, not just for the standard colours of vehicles all around the world, but for the variants

of those colours that result from differences from batch to batch and region to region, as well as the effects of weathering. In addition to its traditional Colourmap and ColourScala Pro documentation systems of colour chips, A&AC has been a leader in the development and refinement of technology-based colour matching, mixing and colour retrieval tools. Since it introduced mixing machines to the industry more than 30 years ago, A&AC has continued to refine the technologies that ensure highest quality colour accuracy. For example, its Automatchic 3 is a state-of-the-art, lightweight and handheld colour-measuring device that ‘reads’ a colour from three separate angles to give extremely accurate colour descriptions. Automatchic 3 works in tandem with Mixit Pro, a colour retrieval system that matches the colour reading to A&AC’s colour database to provide the formulae that will result in a perfect, that is to say invisible, repair of a damaged vehicle. A&AC recently added the iMatchColor applications that allows users to retrieve colour formulae from their mobile phones. In its own colour formulation laboratories A&AC has gone even further, with a ‘5-angle spectrophotometer’ that interprets not only colour, but texture as well, so that A&AC’s colour technicians are able to create >

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formulae to match the increasingly complex vehicle colours that include pearlescent, metallic, and sparkle effects.

Partnerships One of the key pillars of A&AC’s approach to business is partnership. A&AC views its suppliers and its customers as partners and understands that its own success depends on making certain that its partners are profitable and their businesses are sustainable over the long term. A&AC was a trendsetter nearly forty years ago in working closely with body shop operators to make certain that they operated efficiently and profitably. Over the years, it has provided training and support to tens of thousands of its customers. More recently, it has entered into one of the most unusual and exciting partnerships in its history: a technology partnership with the McLaren Formula 1 Racing Team. The partnership began with a request in 2008 from McLaren for a lightweight, high performance coating for the McLaren F1 racing car. But for McLaren, performance would not be enough. A&AC had to produce a coating that not only satisfied the team’s discerning specifications, but also achieve those while delivering McLaren’s much admired team colours of

lustrous chrome and red. A&AC met that challenge and the partnership has continued to strengthen and deepen. In addition to the partnership with McLaren, A&AC has also entered into a number of other technology partnerships with ROAL Motorsport an Italian-based team competing in the FIA World Touring Car Championship series, and two unique design firms: Swiss concept car creator Rinspeed and Germanbased high-end customizer Mansory.

Sustainability and corporate responsibility As a company, AkzoNobel has embraced sustainability as a core element of its longterm strategy, with impressive results. It has consistently ranked in the top 5 on the DowJones Sustainability Index in its sector, including a number one ranking in 2008 and number two rankings in 2009 and 2010. For AkzoNobel, sustainability is not viewed as an obligation, but rather as an opportunity. As standards for environmental safety evolve, AkzoNobel will continue to have the capability to deliver high performance solutions that meet customer needs while conforming to government regulations and minimizing any negative impacts on the environment. When

A&AC HAS BUILT A DATABASE

OF HUNDREDS OF THOUSANDS OF COLOURS, TO PROVIDE COLOUR FORMULAE TO ITS GLOBAL NETWORK OF USERS.

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the company pledges in its corporate slogan to deliver ‘Tomorrow’s Answers Today’, that means, amongst other things, clean processes, safe practices, and the elimination of hazardous substances from its products. For A&AC, the commitment to sustainability has meant a steady reduction in the levels of ‘VOCs’ (volatile organic compounds) in its products, the elimination of lead from most of its products, the development of paints that dry more quickly at lower temperatures to cut energy consumption during the curing process, and a ever-widening array of waterborne products to replace traditional solvent borne paints. For A&AC, corporate responsibility also means that it engages with all its stakeholders. Internally, it is committed to health and safety and it invests in training and career development to give all its employees the opportunity to learn new skills and to steadily advance their careers. In a sense, AkzoNobel A&AC has already demonstrated a remarkable record of sustainability. After all, it has survived decade after decade through wartime, economic downturns, periods of cultural turbulence, and revolutions in technology, communications, and business practices. During those years, the company has survived and thrived by working closely with its customers to ensure their success, delivering unrivalled performance and acquiring the knowledge and experience that enables breakthroughs in technology, innovation, and colour accuracy. No one can predict exactly what automotive and aerospace manufacturers will be asking of coatings suppliers in the future, but it is a safe bet that A&AC will continue to deliver customer satisfaction all around the globe for many years to come. <<

> A&AC’S COLOUR TECHNICIANS ARE ABLE TO CREATE FORMULAE TO MATCH THE INCREASINGLY COMPLEX VEHICLE COLOURS THAT INCLUDE PEARLESCENT, METALLIC, AND SPARKLE EFFECTS.

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Rob Voncken CEO BioMCN

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BioMCN

The power of waste

‘In record time we have built the world’s biggest second-generation biofuels factory.’

Biofuels are quickly gaining traction. Most car drivers in Europe are unaware that they already use biofuels every day because it is blended into regular fuels sold at the petrol station. In future the use of biofuels will grow strongly as the European Union has obliged its member states to ensure that by 2020 biofuels comprise at least 10% of fuel for road transport. BioMCN is the largest second-generation biofuels producer in the world, producing high quality bio-methanol from renewable resources on an industrial scale.

Better than petrol Biofuels are important because they not only reduce environmental pollution but also make Europe less dependent on imports of oil, gas and coal. The growing market for biofuels has proven to be an interesting industrial opportunity. In recent years many so called first-generation biofuels factories have been established globally. These are companies that produce biofuels from (food) crops, for example biodiesel from rape seed and bio-ethanol from corn, wheat and sugar beet. The worry about these first-generation biofuels is that their production might drive up the price of food

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and could add to global food shortages. That is why the development of second-generation biofuels is important as they are made from sustainable sources such as waste materials which don’t compete with food production and therefore count double in the achievement of biofuels targets for EU member states. BioMCN uses crude glycerine, a residue from biodiesel production, for the production of biomethanol. Chemically identical to regular methanol, it is extremely well suited for use in the types of combustion engines that are used in todays cars and not only as a low blend. Besides lower emissions, cars also use less energy when driven on bio-methanol than they do on petrol. In the Netherlands a rally competition was set up, the Nissan 350Z Challenge, for cars that run exclusively on ‘M85’, which comprises of 85% bio-methanol. BioMCN’s production capacity is sufficient to meet the entire Dutch EU target for the use of biofuels. However, being a chemical substance, it has further advantages as it can also be used for other purposes, such as for the production of sustainable chemicals like coatings, glue, paint and compressed gas for environmentallyfriendly cosmetics spray cans. >

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THE OFFICIAL 2009 STATE

VISIT FROM KING CARL XVI GUSTAF AND QUEEN SILVIA OF SWEDEN INCLUDED

THE NISSAN 350Z CHALLENGE IS POWERED BY M85 (85% BIO-METHANOL).

A VISIT TO THE BIOMCN FACILITIES.

< >

From invention to business success BioMCN has based its business on an invention made in 2006 and understood first how to crack glycerine without charring it. This invention was turned into a business concept that involved the re-use of a conventional methanol factory in Groningen that used natural gas as a feedstock and had just been shut down. The plant was bought and re-commissioned for the sole purpose of obtaining a market position in the biofuels market. First the laboratory-level process was scaled up to a pilot installation that could use glycerine instead of natural gas. When that process was mastered two years later the plant was converted into a bio-methanol factory running on glycerine. The endeavor was widely acclaimed; BioMCN received several prestigious awards for its plant, such as the WRA Biofuels technology innovation award and the CEFIC Responsible Care award. What has made BioMCN special; an idea that within 4 years created the largest secondgeneration biofuels factory in the world? Rob Voncken is quite clear of the reasons behind this success: â&#x20AC;&#x2DC;The success story of BioMCN is not only that it was able to convert the idea into a good

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THE BIOMCN PLANTS ARE LOCATED DIRECTLY AT THE HARBOUR ENTRANCE TO DELFZIJL.

business concept but that it also had the guts and ability to see it through in the shortest possible timeframe. A short while ago we had some CEOs of multinationals here who told us that the production ramp-up from laboratory scale to the 200 kilotons that we did in 4 years, would have taken them 8 years’. It was a tremendous job for which BioMCN hired the best people in the industry. Operators were trained, an organization was built up and certified and a market position carved out. BioMCN combined the professionalism of the large multinationals with the speed and drive of entrepreneurs. All of this had not been possible without a good innovation climate. ‘We were fortunate that the merits of the business plan were recognized by Dutch investors who understood that this opportunity was not a quick win but required a long-term business view. We have four years of investment behind us. Now, we are finally near the turn around point and the future looks very promising.’

No level playing field In the past four years BioMCN has been able to get a market foothold in a very uncertain and therefore hazardous business environment. Like all renewable energies, biofuels have to compete with cheaper, but often price-volatile, conventional fuels. The competitiveness of biofuels is therefore dependent on governments that put the regulations in place for promoting renewable energies. Governments unfortunately don’t always do what would actually stimulate the industry; the fuel excise duties and subsidies are not the same for all renewable energies and generally put bio-methanol at a serious disadvantage. In their policies to support the emergence of a biofuels industry, governments sometimes hand out grants to specific technologies that can distort competition. A notable example of this kind of market that has been distorted by subsidies, was the one resulting from the grants that were made available to the growers of corn for biofuels. The results of this policy were dramatic. Europe was regularly flooded with subsidized biofuels from the USA and Brazil causing problems in particular for a nascent home industry with a weak financial basis.

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In Europe too, biofuel industries have been, and still are, set up with government support. BioMCN has to compete with these industries without receiving equivalent support. As a result it is not a ‘level playing field’ for new entrants to the industry. Furthermore, the oil industry that needs to blend biofuels into their existing fuels is conservative and dominated by large and powerful oil companies. Each new type of biofuel has to fight its corner. A positive development however is that several companies are following the example of BioMCN and are now setting up secondgeneration bio-methanol plants. Rob Voncken does not regard them as undesirable competition but rather as colleagues who will help argue the case for bio-methanol and create added momentum. He has even taken the step of establishing an industry association to which governments can turn in order to discuss biofuels issues. It is an even more remarkable achievement that BioMCN, despite such an uncertain environment, now has several of the large oil companies as its customers and has been able to secure its market niche in such a short time. >

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Driven by nature BioMCN believes that the market for biofuels will grow strongly in the future and that there will be a need for bio-methanol as well as for other biofuels such as biodiesel and ethanol. Therefore it will not only focus on processing of glycerine into bio-methanol, but is considering expansion. It has recently embarked on a new project, a refinery that would process 1.5 million tons of waste wood into an additional 400 million liters of biomethanol, the first of its kind in the world. The result would be that BioMCN would triple its production capacity. The refinery would use an advanced process in which the waste wood is first dried, shaped into pellets, gasified under high temperature and pressure and then converted into biomethanol. The project is already recognized by the Dutch government as a very significant step in its plan to curb CO2 emissions. The bold new investment plan also demonstrates BioMCN’s confidence in the growing importance of bio-methanol as a fuel and underlines that BioMCN is a ‘first-mover’ by seizing the initiative.

‘Driven by nature’ is the motto that fits BioMCN very well. Its own business concept is driven by the need to utilize what nature makes available. The biofuels that it makes enable its customers to also adopt the motto.

Innovative, but not new! Making methanol from organic material is, in itself, nothing new. In their embalming process, the ancient Egyptians already used a mixture of substances, including methanol, which they obtained from the pyrolysis of wood. Nowadays, we use an innovative technology to convert glycerine into high quality bio-methanol on a large industrial scale. As a fuel, bio-methanol can either be blended with petrol, or it can be used as a feedstock for other environmentally friendly fuels. It is also used for a variety of nonfuel applications including plastics and paints. BioMCN is continually developing new applications, in alliance with other innovative companies and research institutes. As well as being green, the great benefit of bio-methanol is that it can be used in similar engine and fuel systems to those found in today’s cars. It can be stored, transported and sold in much the same way as petrol and diesel.

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Gerard Hoetmer CEO CSM

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Purac

Bio business

The world is looking for sustainable solutions based on renewable resources. Purac is a leading company in food preservation, biobased chemicals and lactic acid based bioplastics. It is the world-wide market leader in lactic acid, lactic acid derivatives and lactides.

‘Purac is the engine of CSM and can grow ten times as large in ten years time.’

Purac was founded in 1931 and is a part of CSM, the world’s leading bakery supplies and lactic acid business. The company has been producing biobased products for eighty years and during this period it has gathered an in-depth knowledge of the fermentation production process and resulting end-products with a main focus on lactic acid. On the basis of this the company has developed and produced a wide range of solutions. The lactic acid and derivates produced by the company are used for food preservation and biobased chemicals. Lactic acid is made from carbohydrates, especially sugar, corn and tapioca. With five production units worldwide, a global network of sales offices, local application centres and around 1,100 highly trained employees, Purac has a global footprint.

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Food preservation and bioplastics Purac has two growth strategies based on possible applications of lactic acid and derivates: food preservation and biobased chemicals, especially bioplastics. The solutions offered by Purac can be found in food, pharmaceutical, home and personal care, chemical and polymer industries. Food preservation solutions focus on self life and food safety and concentrate on suppressing the growth of harmful bacteria, guaranteeing a better colour and a creating a longer shelf life. In addition Purac’s customers can reduce waste and minimize quality deterioration. Continuous innovation is the key to success and all the ingredients offered by Purac are produced from renewable agricultural products. As a result they can be used in a broad range of processed foods and beverages. Another focus of Purac’s strategy is biobased chemicals. This includes lactides for bioplastics and other biobased building blocks. Purac has built on the possibilities of natural lactic acid and its derivatives and, as a result of its expert knowledge, has gained a leading position in biobased chemicals. >

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OUR FUNDAMENTAL

RESEARCH DEPARTMENTS ARE LOCATED IN GORINCHEM.

‘Disappearing’ products Purac Biomaterials is the market leader in resorbable polymers for medical and pharmaceutical applications. Purac’s products are used in: • orthopaedics (resorbable screws, plates, etc) • sutures • cosmetic surgery • cardiovascular devices • drug delivery, e.g. the controlled release of drugs. Customers can be found from the leading pharmaceutical and medical device companies in the world.

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> This is a market that offers numerous opportunities in many applications such as agro-chemicals, process solvents and microelectronics. Greener and more sustainable solutions are replacing traditional mineral oil-based chemicals. Purac’s technology is based on renewable resources and, as a result, the company has developed a number of successful biobased products based on lactic acid or derivates from lactic acid. Biobased plastics are already being used in a variety of applications such as disposable drinking cups, plates, knives and forks, and packaging materials. They are preferred to oil-based plastics because they are made from renewable resources and can reduce CO2 emissions.

The biobased economy Biobased plastics or ‘bioplastics’ are part of a larger development, the replacement of a wide range of traditional oil based plastics by the use of biobased alternatives. Bioplastics create a view of a future that can be described as ‘the biobased economy’ i.e. where sustainability and renewability are the main themes. The challenge is to create more bioplastic products that are both biodegradable and contribute to a sustainable world.

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In this respect the future market for bioplastics can only grow. A study by the University of Utrecht has shown that 85% of plastics (42 million tons in Europe alone) could be replaced by bioplastics. There are several reasons for this shift to bioplastics. Consumers demand sustainable products, while retailers and brand-owners increasingly seek a ‘green’ image. Future products will have to reduce CO2 emissions and take into account the more limited future availability of oil. Bioplastics are also adding value to basic source suppliers i.e. in the agricultural industry, as well as broadening the span of possible applications for their products. Currently, the bioplastics business is shifting from a market technology ‘push’ to a market ‘pull’ as demand increases from brand owners. Purac is unique in that it can offer evolving second generation bioplastics with superior heat-resistance properties. These open the way to the possibility of many new applications in the next few years, ranging from disposables to semi durables, for example clothing, car parts or components for laptop computers and durables. However there is also a downside to this development: the production of so many

OUR RESORBABLE POLYMERS CONTRIBUTE TO THE BIOBASED ECONOMY.

bioplastics derived from lactic acid might drain the food chain based on carbohydrates. To prevent this Purac, together with DSM (a major Dutch company in the field of Life and Materials Sciences) and the Technical University of Delft, is searching for alternatives for food sugars to ensure that the production of biobased building blocks will avoid any adverse effects on the availability of carbohydrates in the food chain and the people that are dependent on it. Besides, the company has identified other chemicals that might be used as biobased building blocks. For example Purac, together with BASF, is exploring the production of biobased of succinic acid which may be used as a biobased building block in a wide range of chemicals and which can be used in many other applications.

Customers and employees Biobased products can only be developed and produced in close cooperation with key custumors involved; what the company calls its ‘customer intimacy’ approach. So at Purac this spans a wide range from co-innovation with customers to after-sales technical support. Such co-innovation guarantees solutions that are instantly relevant and clearly add value for the customer. Regional

application centres fit the newly developed solutions to regional circumstances which further enhance the likelihood of securing the ‘best fit’ with customer demand. Purac’s global manufacturing footprint guarantees a short supply chain and timely after-sales technical support across its global customer base. Purac employs around 1,100 people, most of them highly educated. To the employees and those who are interested in a career at Purac, working for a company with a focus on a biobased industry, sustainability and the effect on society at large, is very attractive. Employee involvement and the quality of long-term working relationships are high. In addition the company is constantly growing, offering new world-wide challenges for its employees. Special attention is paid to ensuring that company knowledge is readily transferred from existing employees to new employees and all has contributed to the certification of Purac as one of the Top Employers in the Netherlands and Spain in the year 2010 and 2011.

New plant sets the stage for bioplastics growth Scheduled for completion in late 2011, Purac’s new lactides plant in Thailand is driven by CSM’s commitment to play a leading role in the development of the fast growing market for lactic acid based bioplastics. This plant has a capacity of 75,000 tons a year and will enable Purac to meet the current demand levels of its commercial partners, while accelerating the market development in a broad segment of plastics such as packaging, foam and fibre industries.

Drive for innovation Purac knows that innovation blooms when there is a real drive for progress, the

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workforce is involved and all the specific aspects of knowledge are combined and shared. Innovation takes place ‘in house’ or in collaboration with Dutch or international universities, as for example with the University of Wageningen, the partners of Food Valley, or with BE-Basic, a combination of Dutch and international universities, institutes and advanced industries of various scales that support the development of clean, robust and competitive biobased chemicals. Activities in BE-Basic are a.o. focussed on new production technologies and the development of the next generations of lactic acid, based on alternative substrates. ‘In house’ innovation at Purac is integrated into the business itself. To prevent the traditional gap between the ‘front’ and ‘back’ office, most of the Research and Development resources are part of the Marketing and Sales department. There are also innovation teams in the production process that focus on certain themes. Basic research is located in a separate department, where a long-term focus is predominant. An example of innovation in Purac is the development of a so called ‘label friendly’ preservation and safety system that meets

Kraft Foods’ flavour, cost, sodium and efficacy targets. Kraft Foods is the world’s second largest food company. The company is a long-standing customer with an interest in Purac’s wide range of natural food preservation solutions. In recent years the cooperation between the two companies has intensified after Purac became involved in Kraft Foods’ own ‘Open Innovation’ program. This guides and encourages collaboration between the company and its suppliers and has resulted in several joint research and developments projects that benefit both. For each project, multifunctional teams were established, which included representatives from Innovation, Supply Chain, Engineering, Regulatory, Marketing and Sales.

Therefore, with its 80 years of knowledge Purac is the company that will play a central role in the future biobased revolution, and in so doing will aim for a 50% share of the world market for lactic acid based bioplastics (PLA).

In addition to such product innovation, Purac also seeks to develop and enhance process innovation. Technology is at the heart of the company and Purac is passionate about this. The company’s new plant in Thailand is an excellent example. It houses all the latest and best-proven technologies for lactic acid fermentation and purification at a scale of 100 ktons per year. The production technology is being constantly improved by innovation teams, driven by the desire to enhance production efficiency, product quality and sustainability.

Natural solution for food safety With the growing awareness of the dangers of food-related illnesses, the food industry is looking for new ways to increase shelf life and improve food safety, while responding to demands for natural ingredients and ‘clean’ labelling on their products. Purac’s PuraQ Safe RS50 has been specially developed for ready-toeat refrigerated meals and meal components such as soups, dips, sauces, fillings, stuffings and pastas. The product effectively controls the pathogen Listeria bacteria, that cause Listeriosis, the most virulent of all foodborne pathogens, and which is often deadly. <<

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THE PRODUCTION FACILITY IN GORINCHEM ENSURE THAT OUR CUSTUMORS RECEIVE THEIR REQUIRED

PRODUCTS.

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Amsterdam, Groningen and Zeeland and its inland infrastructure into Europe along the major rivers, canals and the rail network.

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Logistics

The logistics branch is of great economic importance for the Netherlands and adds substantially to the Dutch economy. The Netherlands has a sophisticated logistics infrastructure, world-class service providers and a strategic location at the heart of Europe. Geographically, the Netherlands holds a central position in the global flow of commodities, with its large maritime ports in Rotterdam,

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

Gateway to Europe By its advantageous geographical position and its international orientation, the Netherlands has acquired an important role in the supply chain management of companies that are not situated in the Netherlands itself. This makes the Netherlands, despite its relatively small home market, a global player in goods transport. With a population amounting to no more than 0.25% of the world’s population and production to about 1%, the Netherlands nevertheless generates 3.7% of world trade. The logistics branch has held a dominant position in Europe for years and fourth position in the 2011 World Logistics Performance Index of the World Bank. The Netherlands is strong in goods handling, supply chain management, logistical services and information, as well as in the management of distribution centres as the nucleus of European logistical networks. The Dutch customs service adds to the positive position of the Netherlands by its proactive attitude.

Characteristics of the branch The logistics sector covers a wide spectrum of activities comprising the main ports and distribution centres, as well as the transport, financial and information services that enable the flow of goods. In each of these, Dutch companies play a leading role. Dutch main ports are the largest in Europe and are serviced by companies specialising in storage, transhipment, warehousing and distribution.

Main ports With transfers in excess of 320 million tonnes, Rotterdam harbour is Europe’s largest sea terminal. Rotterdam is set to grow strongly in the future, specifically in the field of containers and, with the world’s largest land gain project, Maasvlakte 2, under way, will substantially increase the capacity of its harbour facilities in the near future. Amsterdam’s Schiphol Airport, with an annual transfer of over 1.5 million tonnes, is the third largest in Europe for cargo and Europe’s fourth-largest civil aviation hub. In addition to Schiphol, the Netherlands has 16 regional airports. The Netherlands is unique when it comes to interconnectivity. Rotterdam harbour, other harbours such as Amsterdam, and Schiphol airport are closely interconnected logistically. Under the ‘Smart Cargo Hub for Europe’ initiative, Schiphol, the Port of Amsterdam and the private sector aim to turn Amsterdam into the fastest and most reliable multimodal hub for Europe. Additionally, the Netherlands is the country of choice for European Distribution Centres (EDCs): 57% of all American and Asian EDCs on the European continent are located in the Netherlands. Road transport The Netherlands is also the leading road transport nation in Europe and the largest inland shipper. The Dutch road haulage industry has a market share of about 22 per cent in international cargo transport within Europe. The road transport sector is highly internationally oriented and more than half the added-value created in the country’s logistics branch is related to road haulage. Also, the Netherlands has >

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> over 12,000 professional haulage firms among which are several large enterprises that account for well over half the total transport volume. From the Port of Rotterdam, all major industrial and economic centres in Western Europe can be reached in less than 24 hours. Rail transport Sizable investments have been made in high quality railway connections. During the past ten years the volume of goods transported by rail has doubled. The Dutch rail cargo market is open to competition and is currently served by a number of providers. Transport by rail is increasingly recognised as a viable alternative to road haulage, particularly for time-critical products such as food and flowers. The Betuwe-route, a dedicated double-track freight railway, enables fast transport of containers and bulk goods from Rotterdam to the rest of Europe. Inland river transport For inland shipping the Netherlands is strategically situated on the Rhine Delta. This provides good connections with the large European hinterland all the way to the Black Sea. This makes the Dutch inland shipping fleet the most important carrier of goods on the inland waterways of Europe Pipelines A Dutch pipeline network connects the petrochemical industries at port of Rotterdam with industries in Zeeland, Amsterdam, Antwerp and Limburg, making it effectively one of the three largest clusters of chemical industries in the world, next to Houston and Singapore.

Knowledge infrastructure Dutch expertise with respect to supply chains is internationally renowned. Dutch industries often distinguish themselves by applying innovative and flexible concepts. Not surprisingly the Netherlands is

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a net exporter of logistical concepts, for example those embedded in software. Dutch research in this field is well organized. It is carried out at the Universities of Twente, Tilburg, Eindhoven and Delft by researchers that, together, form a close knit community and are well connected to the global scientific community. Particularly strong points include knowledge with respect to infrastructure, planning and management models. Recent comparison shows that, globally, the Netherlands ranks sixth on management science, an essential part of supply chain management.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

Ambitions The logistics branch has the following ambition: by 2020 the Netherlands will have an international top position in goods handling and supply chain management of international logistical activities as well as being a country providing an attractive innovation and business climate. More specifically by 2020 its ambitions include: • the Netherlands will be in first place of all European nations in the World Logistic Performance Index (at this moment the Netherlands is number three in Europe and number four globally after Germany, Sweden and Singapore); • the contribution of supply chain management services to the GNP will have risen to € 10 billion (currently € 3 billion); • the number of companies with logistical activities that settle in the Netherlands will have increased by 30%; • the load factor will have increased to 65% (at the moment 45%); • the influx of qualified professionals with a logistical education will have risen by 50%.

Facts and figures The logistics branch adds € 40 billion each year to the GNP and about 750,000 people are employed in the branch. There are 200 - 300 large companies and many thousands of SMEs active in the branch. <<

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From the left: Sjoerd Ewals, Pim Ewals and Bram Ewals (CEO)

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I ‘The automotive sector made us strong.’

Ewals Cargo Care

Move, store and manage

In the fast moving world of modern industries, the ‘Just In Time’ delivery of resources to the production process is critical and logistics companies play a crucial role. Ewals Cargo care is a leading company controlling thoroughly-managed distribution channels.

Pim Ewals is one of three brothers of the fourth generation of the Ewals family that runs Ewals Cargo Care, one of the largest family-owned logistics providers in Europe. The front-running and demanding automotive industries apply the ‘Just In Time’ (JIT) principle. Even a slight delay in the delivery of some parts may cause economic damage. If a company is able to serve the automotive industry well, it can handle any other industry as well. In Europe, Ewals Cargo Care is one such leading company that serves the automotive industry. Among its customers in the world of European Automotive Manufacturers. ‘We benefit from our knowledge, experience and track record that we gained in the automotive sector and apply this as well in other industries such as healthcare & life

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sciences, paper & packaging, consumer electronics and fast moving consumer goods (FMCG). Supply chain management has become part of our culture.’

Lead Logistic Provider Ewals Cargo Care had its origins in 1906 in Tegelen (Venlo) on the Dutch-German border. Venlo is the home town for many logistics providers of which Ewals, with its 1,600 employees, 49 offices in 15 countries and a turnover of €550 million, is the largest. After the Second World War, when transport companies were still all about ‘wheels’, it purchased its first trucks for the transport of building materials for the reconstruction of the German Ruhr area. Later, in the 1980s, when many companies focused on their core business and outsourced their transport activities, Ewals Cargo Care developed unaccompanied transport into the United Kingdom and Scandinavia and started warehousing and Value Added Services (VAL), such as picking, packing and assembly. The move towards intermodal logistics was made in the 1990s, when the company started train transports towards Italy. >

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‘Road transport will always remain important but may have its problems in future. Congestion, limitations in driver’s hours, increasing road taxes and governmental environmental legislations will force us to look for these alternatives’. 50 INSPIRING BUSINESS CASES

OVER 100 YEARS OF LOGISTICS EXPERIENCES.

> The big step towards being a Lead Logistic Provider (LLP) and providing global supply chain solutions came in 2004, thus demonstrating that Ewals had come a long way since its first purchase of a truck. Currently the company’s assets comprise 3.000 units, some 300.000 square meters of warehousing and cross-docking centres all over Europe.

More than just transport Logistics is much more than just transport. Ewals has defined its services in three keywords: ‘Move, Store, Manage’. These three activities complement each other and maximize customer service and satisfaction. Moving goods is the basis for any logistics service provider. Ewals is a company that provides a full range of integrated global transport services. Its land-based European road and rail network is extended globally by air and ocean transport and has proven to be very competitive and successful in delivering goods on time and at the right cost. Every physical shipment is accompanied by a corresponding flow of information. Tracking, tracing and a digital connection to the client’s information system are key.

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Making a big difference Historically the company has always taken distinct steps to move ahead of the competition. In the 1990s Ewals Cargo Care was able to demonstrate a major difference when it developed its Megatrailer. Whereas, normally, trailers are able to provide 80 m3 of storage space, by using small wheels and some other developments, Megatrailers provide 100 m3 of storage space. In an industry sector in which low cost is key this extra space together with the light construction of the trailer generate a significant competitive advantage enabling the company to grow fast. Ewals made ‘intermodality’ (a combination of road, water and rail) a cornerstone of its moving services. It improved its Megatrailer into a version that is suited for multi-modal transport on the road and on the railway. The latter comprises the Mega Huckepack trailer, which has the same dimensions and options for use as an ordinary Mega trailer, but which can be transported by rail. The advantage is significant. The trailer can simply be hooked up to another truck at the other end of its railway journey and delivered to the client. Ewals Cargo Care has 3000 of these trailers

EWALS COOPERATES ON A

STRATEGY LEVEL BUT ALSO IMPLEMENTS, RUNS AND MONITORS YOUR TOTAL SUPPLY CHAIN.

on the road thus demonstrating the belief held by the company in the environmental advantage of intermodal transport solutions. These demonstrate to clients that rail and short-sea journeys are a viable and attractive alternative to road transport, one that is often not taken into consideration. These days, Ewals Cargo Care operates regular intermodal services throughout Europe. The company is one of the largest multi-modal logistics providers in Europe, able to offer the best intermodal logistical service, be it by road, rail or short-sea. Storing is an indispensible link in logistics service provision. Over the years, Ewals has acquired more than 300.000 m2 of warehouse and cross-docks in Europe, directly integrated into the transport network. They enable Ewals to provide a seamless flow of goods from collection to final delivery. Ewals Cargo Careâ&#x20AC;&#x2122;s store concept provides an extensive range of services; dedicated or shared, value added logistics (VAL) and in-house services. Each can be tailored to specific requirements. >

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Managing supply chains Management of the client’s complete supply chains is a high-value service that only the best in the sector can deliver. Supplychain management services are essentially provided independently during moving and storing, as the objective is to optimally manage the client’s logistics by involving the most suitable partners. The availability of a large home fleet of trucks as a back up solution is, of course, a strong advantage. For Ewals Cargo Care the major break through came in 2004, when it became the lead logistics provider for Scania, one of the largest manufacturers of heavy trucks and buses. The task involved managing the flow of goods between Scania’s 17 European factories and numerous suppliers. These are complex and challenging environments in which 10,000 weekly orders have to be delivered to a very tight time schedule. It is now a service that Ewals Cargo Care offers to all its clients. As a Lead Logistic Provider (LLP), Ewals Cargo Care is able to manage all logistic flows of the customer. Customers are still in strategic control, but their operational and tactical activities are

outsourced to Ewals. However, the company goes even further. ‘We achieve horizontal collaboration between networks in order to find co-loading synergies. Only in this way are we able to reduce the total supply chain cost of our customer and be sustainable.’

Global solutions Ewals also provides freight forwarding services for regions outside its current asset-based network or when other types of equipment are required. It has a separate business unit for providing solutions for third party partners for logistics needs that cannot be answered by its own transport network. Its profound market knowledge enables it to take responsibility for selecting and retaining the most suitable partners to meet the needs of the customer, while guaranteeing that capacity and service levels are in line with market rates. Such services are not limited to Europe. When global distances separate suppliers and receivers, but dedicated professionalism is expected to the same level as on continental transports, Ewals can revert to long-standing

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experience, global partnerships and Asian presence to collect and deliver goods around the globe. By performing a wide range of added-value services, ranging from storage, order picking and labeling to distribution, Ewals integrates seamlessly into the customers’ global supply chains and supports to exceed the customers’ expectations.

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EWALS ALREADY TODAY EMBARKING THE ROAD TO TOMORROW.

Vision for Tomorrow In recent decades Ewals Cargo Care has grown into one of the largest logistics providers in Europe, and a business leader in key markets. Despite its size it has retained its character as a family-owned company that continuously invests in new products, processes, management systems and people as well as contributing to cleaner and greener logistics solutions. <<

> INTERMODALITY A CORNERSTONE OF EWALS’ MOVING SERVICES.

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Herman Spliethoff Corporate Secretary

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Spliethoff

World player in general cargo

‘We were among the very first to recognize that the trend for efficiency also applied to bulk and multi-purpose vessels.’

Since the 1960s the shipping industry has changed radically. In particular, the introduction of the container created a step change in efficiency. However, while most ship owners followed the trend of containerization, Spliethoff decided to stick with its own initial focus: non-containerized dry cargo and multi-purpose vessels.

The shipping industry is probably one of the most competitive business environments. According to Herman Spliethoff, it is a truly global commodity market with fierce cost competition in which companies have very little influence on the price. Although the sector has seen drastic changes in recent decades, the Amsterdam based Spliethoff group is gradually emerging as a global leader in its market segment: the maritime transport of non-containerized dry cargo. It plays a leading role worldwide in the transport market for forest products, general cargo, project cargo, super heavy-lift and yachts. For these it owns and operates a large, modern and high-quality fleet of over 100 Dutch-registered multipurpose, heavy-lift and roll on-roll off (Ro-Ro) vessels ranging in size from 2,100 to 23,000 tons.

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The Spliethoff shipping company has a history dating from 1921 when the founding father, Johan Frederik Spliethoff, started as a shipbroker specializing in the transport of timber products from the Baltic seaports. After the war, in 1946, Spliethoff ordered its first ship, the ‘Keizersgracht’, named after the gracht (canal) in Amsterdam where the company held offices at the time. Ever since, it has named its ships after canals: whenever you see a ship with a name ending with ‘gracht’ you can be assured it is one of the Spliethoff fleet. The primary focus after the war was on the transport of building materials for reconstruction, in particular forest products from Russia and Scandinavia. Previously, many larger Dutch importers of forest products had taken care of their own logistics, but many then decided to focus on their core activities and outsource the shipping activities to Spliethoff. For these customers Spliethoff built up a fleet of coasters to serve its Suomi Lines.

High tech bulk As a result of innovation, the increasing scale of vessels and consolidation of the industry, >

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> bulk transports and tankers were subject to a similar development in efficiency as has been seen for containerized transport. Spliethoff recognized this transformation of the industry early and, rather than adopting these new developments, made the decision to stick with the company’s initial focus: the general cargo markets. However, despite this decision Spliethoff was, by the early 1970s, among the very first to recognize that this too required innovation. Spliethoff developed the required technology for improved and innovative multipurpose ship design, with box shaped holds, adjustable ‘tweendecks’, movable bulkheads, and modern gear to enable efficient loading and unloading. Purchasing standard design ships offered by shipyards at the time would have provided only standard revenues. Instead, the company added shipbuilding engineers to its own staff who developed the concept of a modern and efficient multipurpose vessel and, as a result, had a series of ships built by the Mitsubishi shipyards in Japan. The design was essential for driving down costs and was so successful that over ensuing years more than 100 of them were built. Ever since, Spliethoff has continued investment in improved ship design. Such early take-up of technological

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innovation distinguishes Spliethoff from other shipping companies and has been the key to its success.

profit levels. Today, with a modern fleet of 14 state-of-the-art ships, BigLift Shipping is the market leader in this global sector.

Going Big!

In 1999, the company acquired Sevenstar, a broker for transporting yachts anywhere in the world. For shipping companies the transportation of yachts is an attractive way of increasing payload, and Spliethoff’s ‘tramping’ fleet is equipped with cranes that are particularly suited for the transport of yachts. However, Sevenstar is not limited to using the Spliethoff fleet. It is connected to many other independent carriers that enable it to be the world market leader for yacht transport.

In the 1990s, having established itself as a leading European shipping company for general dry cargo, Spliethoff focussed on creating further growth and synergies by acquiring several specialized shipping companies. In 1995, it acquired the marine shipping part of the heavy lifting group of Nedlloyd, formerly called ‘Mammoet Shipping’, which served heavy industries worldwide, such as oil & gas, mining, petrochemical and utilities. Mammoet Shipping was renamed ‘BigLift Shipping’. For Spliethoff it was a logical take over as it added the capability for transporting heavy general cargo, in itself a specialized and attractive market segment for which the role of technology is important. For heavy lifting, the ship design shapes the competitive edge. Smart designs improve usability and commercial success, the reason they are custom-built. After the takeover, Spliethoff was able quickly to reorganize BigLift shipping and return it to healthy

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In 2003, Transfennica joined the Spliethoff group. This is a Finnish shipping company, originally set up by the Finnish paper industry for the transport of its high-quality paper and forest products. It provides fast scheduled liner services between Finland and the European seaports, quite different from Spliethoff’s other ‘tramping’ business. However, Spliethoff was able to use its design strengths by improving the ship design and building a series of advanced multipurpose Ro-Ro vessels. Their advantage lies in fast loading times coupled with extensive

FOR HEAVY LIFTING, THE SHIP DESIGN SHAPES THE COMPETITIVE EDGE. SMART DESIGNS IMPROVE USABILITY AND COMMERCIAL SUCCESS, THE REASON THEY ARE CUSTOM-BUILT.

information technology back-up, as well as efficient and flexible cargo handling and safety. Also in 2003 the company took over Wijnne and Barends, one of the oldest still-active shipping companies in the world and a leading ‘short sea’ specialist. It had a fleet of over 30 young and well-maintained coasters, in some cases requiring cooperation with captain-owners. The fleet is suitable for many different cargoes including containers for the transport of dry cargo timber, grain, steel and aluminium. It also provides a number of additional services such as stevedoring, warehousing and forwarding, chartering, financial and technical management, ISM and ISPS certification, quality control and crewing. After the takeover, Spliethoff embarked on a comprehensive construction schedule to expand the fleet both in numbers and capacity, which will enable Wijnne Barends to increase its short-sea transport activities.

Strategically strong The growth of the company during the last five decades and the programme of successful takeovers are clear indicators that Spliethoff has made good strategic choices, >

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> one of them certainly being the availability of an internal department of ship architects and engineers that constantly seek to improve ship design. Another is that the company has read the industry’s economic cycles very well. The shipping industry is highly cyclical and, for example, saw a very aggressive investment in new capacity between 2004 and 2007. This drove up the price of ships and even caused long lead times for their delivery. In that period, Spliethoff maintained a cautious investment strategy and, as a result, was able to stay profitable during those critical years. The company postponed its investment to 2009 and later, when prices of ships were much lower. Crewing is another area that is crucial for the competitiveness of shipping companies. It is increasingly difficult to find well-trained staff, whether they be deckhands or officers. No shipping company can afford to be selective when it comes to nationality of its crew and therefore, to Spliethoff, nationality of its crews does not matter; but quality does. It was among the first to set up agencies abroad for recruitment of personnel in countries such as Russia. This does however pose additional challenges with respect to safeguarding quality. Spliethoff therefore

BULK TRANSPORTS AND TANKERS HAVE BEEN SUBJECT

TO A SIMILAR DEVELOPMENT IN EFFICIENCY AS HAS BEEN SEEN FOR CONTAINERIZED TRANSPORT.

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pays much attention to education and training programmes and has strong requirements for staff qualifications. This particularly applies to companies such as BigLift Shipping, where such qualifications are essential for safe operation. It has its own school and has a policy of taking on board trainees from nautical schools, for which it has equipped nine of its vessels with training facilities such as classrooms, student and instructor accommodation and an additional wheelhouse for training purposes only. Strong ties with customers and employees Perhaps Spliethoff’s most distinctive feature is the alignment that it achieved with its main stakeholder groups: its customers and employees. After the Second World War, the importers of forest products were important customers. They have always kept a close bond with the company, for example by providing the equity for the Spliethoff fleet and, in so doing, enabling it to expand so rapidly. The relationship with the company’s personnel is no less important. Spliethoff has put much emphasis on keeping a ‘flat’ organization without many hierarchical levels. Like many Dutch companies, the distance between the working floor and top level is very small. Additionally it has created the opportunity for its personnel to participate financially in the company, thus adding much commitment. Such dedicated partners in business give Spliethoff strong confidence for the future of the company. <<

> SPLIETHOFF MADE THE STRATEGIC DECISION TO STICK WITH THE COMPANY’S INITIAL FOCUS: THE GENERAL CARGO MARKETS.

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Creative industry

The creative industry is a collection of interwoven sectors and an important motor for innovation and economic growth. The creative branch is preeminently characterized by its power to innovate, and a capacity to create value from new ideas, concepts and knowledge. Young disciplines such as digital services and gaming exist side by side with older disciplines such as architecture and graphic design.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

Power to innovate The greatest common denominator of these disciplines is constant renewal focused on the end user. Creative industries operate in markets where products and services should be innovative. They fit closely to the experience and behaviour of the consumer. Product and service design are its core competence. The branch moves continuously with the changes in behaviour of the consumer and understands these changes as no other. In the most common Dutch definition, the following activities are included: art, media and entertainment combined with creative service industries such as architecture, design and fashion. In the Netherlands the creative service industry is the largest section of this branch: 63% of the companies are active in this section, with media and entertainment companies 26% and art 11%.

Characteristics of the branch The Dutch creative industry, be it design or architecture, fashion or dance, TV formats or computer games, is experiencing a period of healthy growth and is also winning considerable international acclaim. In part, this might not be a surprise. The Netherlands has a long tradition of architecture and interior design. Architectural and design ideas such as those of the De Stijl movement and the Amsterdam School of Architecture in the 1920s, have had a profound impact on

contemporary Dutch architecture and design. These ideas have found their way abroad and designs for interiors and furniture created by such De Stijl members as Rietveld, are world-renowned. This design philosophy is also clearly visible in, for example, contemporary product and graphic design and fashion. Another influence on Dutch design philosophy might be the lack of space in the Netherlands. This has led to considerable expertise in the integrated approach to urban development and construction projects. This applies not only to architectural design, but also to the layout of surroundings, infrastructure, and social contexts such as in schools and planning. Product design also reflects the functional Bauhaus influences of the 1930s, this being very well discernable in combination with the principles of De Stijl. Another part of this success is due to the high standard of design education available in the Netherlands, such as at the Design Academy in Eindhoven, proclaimed the â&#x20AC;&#x2DC;School of Coolâ&#x20AC;&#x2122; by Time Magazine, and the Artez Fashion Institute in Arnhem. Adding to such success is the ability of leading Dutch companies to create powerful connections between innovation, creativity and business. For example, this is a key element in the innovative process for the electronics multinational, Philips, which has evolved many prize-winning designs. >

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> Creativity is variety of business As diverse as the creative industry itself, is the variety of the ways of making a business. A creative entrepreneur can sell an idea for a product design, for an advertisement or a TV-format without additional services. Another way is to combine design, production, marketing and sales in one organisation, for example in the way companies such as Philips, HEMA (retail) or McGregor (fashion) function with their â&#x20AC;&#x2DC;in-houseâ&#x20AC;&#x2122; design departments. There are designers who capitalize on their reputation for wayward artistic designs, such as the designer Marcel Wanders. Yet other designers may organise his or her own value chain from design to retail, such as Marlies Dekkers. It might appear that the creative industry is dominated by creative SMEs and self-employed designers. The reality is different. Whereas architecture and gaming mostly comprise SMEs, only a few of which will support more than 100 employees, media and advertising companies can be quite large. Fashion and industrial design support a mix of self-employed designers, SMEs, larger design bureaux and companies with discrete design departments. The last of these form an important part of the Dutch creative industry. For example there are more people employed in these design departments than by specialized bureaux or as self-employed designers.

Knowledge infrastructure As mentioned before The Netherlands has a firm historical basis in creativity and design. This is further broadened by a wide variety of schools, colleges and knowledge institutes such as TNO and the Nederlande Organisatie voor Wetenschappelijk Onderzoek (the Dutch Organisation for Scientific Research - NWO).

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Ambitions The creative industry has the following ambitions for the immediate future: • to strengthen the entrepreneurship in the branch: a good creative education is not a warranty for a successful career in business. This competence should be strengthened; • to stimulate cross overs: creative industry as a branch can have difficulty in combining with the expertise of other branches; the ambition is to make the value-adding capacities of the creative industry clear to other branches and to stimulate matchmaking i.e. letting demand and supply meet each other; • to capture knowledge and innovation: the creative process is fast and ever-changing, with knowledge fragmented in time and between organisations. The ambition is to capture knowledge and the innovation process to make it available for others and create a learning environment; • to strengthen financial possibilities: creative industries mostly lack elaborate business plans or financial schemes and are risk-prone. The ambition is, on the one hand, to strengthen the financial competence of the creative industry itself and, on the other, to make better financial and fiscal arrangements with the participation of banks and through taxation. • to expand international activities: relatively few companies are active internationally. The ambition is to combine the powers of the individual companies, knowledge institutes and government to create market possibilities abroad and by doing so to create impulses for innovation.

Agrofood Horticulture Life sciences & health High tech systems Water Energy Chemistry Logistics Creative industry

Facts & figures There are about 43,000 companies active in the creative industry, employing 172,000 people. 66% of these are self-employed. Investments in R&D per year are € 96 million and total turnover € 7.1 billion. On the world list of creative exporters, the Netherlands is in the eighth place.

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Victor van der Chijs Managing Partner and Director OMA

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OMA

More than just architecture The buildings and masterplans of OMA around the world, insist on intelligent forms while inventing new possibilities for content and everyday use. Victor van der Chijs, Managing Partner and Director at OMA, emphasizes the vision that, whatever the size or complexity, there is always a more relevant question behind a project and that a solution never stands alone.

‘Our ethos is to immerse architecture in the flow of the wider world.’

International fame OMA was founded by Rem Koolhaas in 1975 as a collaborative office practicing architecture and urbanism. At the beginning of the 21st century the office gained considerable repute as a result of a great number of prestigious international projects. In the first ten years of the new millennium, OMA completed much acclaimed projects such as the Prada Transformer, a rotating multi-use pavilion in Seoul; the Seoul National University Museum of Art; the Zeche Zollverein Museum and masterplan in Essen; the Casa da Música in Porto; the Prada Epicenters in Los Angeles and New York; the Seattle Central Library; the Leeum Samsung

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Museum of Art; the Netherlands Embassy in Berlin; the McCormick Tribune Campus Center at the Illinois Institute of Technology in Chicago and recently completed Dee and Charles Wyly Theatre in Dallas. Today, OMA is working on a large number of projects worldwide. In China OMA-designed buildings currently under construction include the new headquarters for China Central Television in Beijing– a tower reinvented as a loop; the adjacent Television Cultural Centre and Shenzhen Stock Exchange – China’s equivalent of the NASDAQ exchange for hi-tech industries, all of which are due for completion in 2012. OMA’s office in New York is developing further projects throughout the Americas, including Millstein Hall : an extension to Cornell University’s College of Architecture, Art and Planning ; and the award-winning design for the Musée National des Beaux-Arts du Québec in Canada. The office’s European operations encompass a new headquarters for Rothschild Bank in London; a new library for the city of Caen in France; Cordoba Congress Centre in Spain; a new multi-use building for the Danish Architecture Center in the historic centre of >

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NEW HEADQUARTERS FOR CHINA CENTRAL TELEVISION, BEIJING, CHINA. NEARING COMPLETION.

> Copenhagen. OMA’s HQ is also developing several major projects in its native Rotterdam, including De Rotterdam which will be the largest building in the Netherlands when completed. OMA’s ongoing projects in the Middle East, including their contribution to Education City in Qatar are also being developed from Rotterdam.

the new building should be erected i.e. the country, town, society and environment.

Typically, OMA is very critical of the projects it accepts: the latter should always be inspiring and add to the knowledge and expertise of the firm. The global branding of OMA evolved over a long time so the company seeks to ensure that every element; the client brief, its context, the team and OMA’s creative principles ideas, should fit before a project is accepted. During the design process, the evolving ideas OMA has structured its organisation to meet and designs are rigorously tested for quality its ambition to be the most creative inventive company in the world. As an international firm and to ensure they meet the ‘OMA principles’. with offices world-wide, those working at OMA OMA always seeks ‘edges’ and the design should be the most inspiring and most daring form a group of top professionals and young to date, and should always surprise the client. talent, seldom older than 30 years of age, As a result only the highest level of design originating from more than 40 nationalities. quality will suffice. OMA ensures that their input is embedded in the organisation. OMA employees stay in close OMA’s architects always start from the contact with the newest developments in our perspective of the client and the ‘nucleus’ of rapid changing society and contribute to the his question. They work interactively with company’s ‘melting pot’ of innovative ideas the client and within the context of where and inspiration. Most of them stay only a few years with OMA before continuing their career the new building will be sited. The skills of local architects and other experts are used with other architectural agencies. to firmly understand this context so that, ultimately, the building will merge with OMA does not have a ‘classical’ structure, but the surroundings and will become a natural comprises of ever-changing teams that fit the demands of the client and the context in which element within the landscape.

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The other side of OMA: AMO Over the years, OMA has gradually turned from a successful architectural practice into a much broader international creative agency. For that reason, AMO, a design and research studio was created. While OMA remains dedicated to the realization of buildings and masterplans, AMO is a think tank that operates in domains beyond the boundaries of architecture and urbanism, domains that today have an increasing influence on architecture itself. These include sociology, technology, branding, media, renewable energy research, fashion, publishing, art consultancy, and graphic design. The intelligence gathered from these domains contribute to and inspire OMA’s architects and also triggers a new range of non-architectural products such as books, exhibitions, fashion shows, educational programs, magazines and websites. AMO often works in parallel with OMA, for example for Prada. AMO’s research into the history of shopping, the future of in-store technology, the identity of Prada and new possibilities of content-production in fashion helped generate OMA’s architectural designs for new Prada stores in New York and Los Angeles. In 2004, AMO was commissioned >

CCTV: a new vision on skyscrapers OMA has designed a wide range of astounding buildings. The new headquarters for China Central Television (CCTV) is their largest project to date. This design combines the entire process of TV-making; administration, production and broadcasting, into a single loop of interconnected activity. Rising from a common platform accommodating production facilities, two towers, one dedicated to broadcasting and the other to services, research and education, lean towards each other and eventually merge in a dramatic, seemingly impossible, cantilever. CCTV’s distinctive loop aims to offer an alternative to the exhausted ‘typology’ of the skyscraper. In spite of their potential to incubate new cultures, programs and ways of life, most skyscrapers accommodate merely routine activity, arranged according to predictable patterns. Formally, their expressions of verticality have proven to stunt the imagination: as verticality soars, creativity crashes. Instead of competing in the hopeless race for ultimate height and style within a traditional two-dimensional tower ‘soaring’ skyward, CCTV proposes a truly three-dimensional experience that symbolically embraces the entire city. CCTV consolidates all its operations in a continuous flow, allowing each worker to be permanently aware of his or her colleagues: a chain of interdependence that promotes solidarity rather than isolation; collaboration instead of opposition. The loop also facilitates an unprecedented degree of public access to the production of China’s media: visitors will be admitted to a dedicated path circulating through the building, connecting all elements of the program and offering spectacular views from the multiple facades towards the CBD, the Forbidden City and the rest of Beijing.

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> by the European Council to study its visual communication, and designed a coloured ‘barcode’ flag, by combining the flags of all member states. The Barcode represents Europe as the common effort of different nation states, with each state retaining its own cultural identity while sharing the advantages of acting together. AMO projects are very diverse, but always mind-changing. They include a masterplan for a car brand, branding of a new organic fast food chain, and a curatorial masterplan for the Hermitage Museum in Saint Petersburg, Russia. Yet AMO also applies its creative thinking power to public issues, as is made clear by its contribution to three consecutive Energy research projects to address the urgent problems caused by looming climate change and dwindling fossil fuel supply. Zeekracht (2009), a masterplan for an offshore wind farm in the North Sea, explored the possibility that, if built, wind facility could give Europe energy independence; Roadmap 2050 was commissioned to determine how the EU goals on emissions reductions could be met efficiently; and lastly, The Energy Report (in collaboration with WWF) looks at sustainable energy from a global perspective. AMO

contributed to the content through the development and production of a graphic narrative about the geographic, political and cultural implications of a zero-carbon power sector. The three reports demonstrate that, through the complete integration and synchronization of the energy infrastructure at all three levels, the world can take maximum advantage of its geographical diversity. Currently, AMO has acquired a commission to develop the curriculum of the Strelka Institute for Architecture, Media and Design, a postgraduate school in Moscow.

The most inventive creative company in the world The work of Rem Koolhaas and OMA has won several international awards including the Pritzker Architecture Prize in 2000, the Praemium Imperiale (Japan) in 2003, the RIBA Gold Medal (UK) in 2004, the Mies van der Rohe/European Union Prize for Contemporary Architecture (2005) and the Golden Lion for Lifetime Achievement at the 2010 Venice Biennale. The combination of OMA and AMO will keep challenging their own ambition to be the most inventive creative company of the world.

THE BARCODE REPRESENTS EUROPE AS THE COMMON EFFORT OF DIFFERENT NATION STATES

WITH EACH STATE RETAINING ITS OWN CULTURAL IDENTITY WHILE SHARING THE ADVANTAGES OF ACTING TOGETHER.

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Prada A typical project of AMO is the long-standing collaboration with Prada. When the Italian fashion brand approached OMA to design new stores that would enhance the appeal of the brand, AMO commenced by ‘looking behind’ that question: the label alone was not enough to guarantee authenticity. So it was not only a question of designing stores but also one of identity and branding. The Prada project therefore spanned research on shopping and new concepts for Prada as a brand, to the creation of three large stores in the United States. The outcome was the introduction of ‘Prada Epicenters’ with extensive instore technology projects and the creation of a website. New York’s Prada Epicenter for example is a combination of an exclusive boutique, a public space, a gallery, a performance space and a laboratory as AMO arguably see shopping as the last remaining form of public activity. In the United States AMO also reconceptualised the design of three perfume websites and designed the catwalk for the fashion shows of the Prada and Miu Miu labels.

> PRADA CATWALK MAN MILAN, ITALY 2009; ‘A SECRET PASSAGE OR LOVE FOR THE VOID’.

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Eric Gude Director Property Conversion

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Van Nelle Design Factory

Factory for Dutch Design

‘We envisaged a building that would become the meeting place for the young and creative.’

The completely re-developed Van Nelle Factory has become an icon for the Dutch creative industry. It is the largest factory building of its type to accommodate a wide variety of new media and design com-panies. It was also the first creative hub in The Netherlands and showed the way for many others that were subsequently developed. Today the Van Nelle Design Factory is a big success with occupancy of nearly 100% it has become a community where synergies take place everyday between its numerous tenants.

The former Van Nelle Factory (Van Nellefabriek) on the Schie canal in Rotterdam, is one of the most important historic industrial buildings in the Netherlands. The building was designed by the architects Van der Vlugt and Brinkman and built between 1926 and 1931. It is commonly known as one of the best examples of ‘Het Nieuwe Bouwen’, Dutch for ‘New Building’, an important contributor to the new international architectural movements of the first part of the 20th century. Originally a coffee and tea factory, it currently houses a wide variety of new media and design companies and is known

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as the Van Nelle Design Factory (‘Van Nelle Ontwerpfabriek’ in Dutch).

Historical functions and shapes The Van Nelle Company, a major manufacturer of coffee, tea and tobacco, origi-nally built the Van Nelle Factory in 1926-31 for the refining and packing of these products. It was commissioned by the thendirector of the company, Kees van der Leeuw. The building was the result of a thorough analysis of both the technical functions of the factory (raw products were taken to the top floor of the factory buildings to move down a floor after each stage of processing) and the social aspects (the ‘human element’) of working in a factory. An intensive co-operation between the principal, Kees van der Leeuw, a confirmed theosophist, and the architects J.A. Brinkman and L.C. van der Vlugt, assisted by architect Mart Stam, resulted in a building that was much ahead of its time. The block of buildings consists of a curved office block, a descending factory building and expanded at the back by a shed-roofed tobacco-cutting workshop.

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> The factory building has eight levels topped by a circular tearoom. Five levels, with a double-height entresol, were for the coffee section: three levels were for the tea section. Glazed overhead transport bridges linked the factory, the dis-patch building and the warehouse, by diagonally crossing the factory street. All buildings are constructed of reinforced concrete, steel and glass. Typical techni-cal features are mushroom-shaped columns with the floors without beams, the curtain wall of steel-framed glass and the glazed overhead transport bridges. Most of the original functionalist furnishing and some parts of the original out-door sporting and leisure facilities for the workers still exist.

New life for a factory When the factories that had been producing coffee, tea and tobacco were closed in the mid-1990s, the big question was what to do with the buildings. They were of inestimable cultural and historical value, having the status of a nationally pro-tected monument and considered for nomination for the UNESCO World Heritage list. The City of Rotterdam organized a competition for the re-use of the buildings

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and the Maatschap Van Nelle Ontwerpfabriek, comprising the partners Property Conversion, Projectontwikkelingsbureau voor Bouwnijverheid (POB) and Kondor Wessels Projecten (KWP) made the winning bid. Director of Property Conversion, Eric Gude explains how they won the competition: ‘We envisaged a building that would become the meeting place for the young and creative of Rotterdam; something that didn’t exist but had a potentially large market, as research showed.’ There were some challenges however. The available space was very large, some 55,000 square meters, and it was essential that adjustments to the interior, in order to create offices, should not to obstruct the way the light entered through the windows of the building. In order to deal with these challenges, yet retain the ultimate vision, a master plan was drawn up, starting with an official cultural historic study. Wessel de Jonge, an authority on the renovation of modern architecture, planned and project-managed the renovation, which began in 2000. Claessens Erdmann Architects from Amsterdam were responsible for the physical redevelopment of the factory buildings themselves.

TODAY, THE FORMER FACTORY BUILDINGS ACCOMODATE MORE THAN A HUNDRED DIFFERENT

CREATIVE FIRMS.

Remarkable is the fact that the complete renovation has been done without any governmental support. With almost 800 partners it actually is the largest limited partnership in The Netherlands. Today the buildings accommodate more than a hundred different creative firms. Tenants vary from corporate communication consultants, 3D-designers and model makers, human resources consultants, new media consultants, web agencies, advertising companies and video-makers, to a firm that lets classic cars for the film industry. The restoration of the buildings also has received international praise. The project is highly appreciated as an exemplary approach to the restoration of, and finding new uses for, an iconic building of European and world importance. In 2008 it received the European Union Prize for Cultural Heritage, the so-called Europa Nostra Awards, for the restoration and adaptive re-use of the Van Nelle Factory.

Box within a box From the outside the building is monumental, but inside it is innovative and

modern. The building’s architectural integrity is fully respected. To be able to combine a modern office environment with an historic building, a ‘box within a box’ was created. This concept made it possible to maintain the original trans-parent character of the factory building yet, at the same time, create an energy-efficient solution based on separate climate zones within the structure. Windows can be opened electrically and automatic sunshades are integrated in the original façade. In 2009 The Van Nelle Design Factory received an international sustainability award: the Golden Green Key. The Green Key award demonstrated that redevelopment of old buildings could be a very sustainable option compared to building new offices. Other aspects that contributed to the award were the active stimulation of public transportation by tenants, to the use of energy-efficient ventilation systems. The buildings are full of other smart solutions that contribute to the environment. A typical example is the toilets, which are flushed with the water from the nearby canal. And it is not only the building itself that is sustainable. The people who work within are all partners in sustainability. For example all tenants have to sign a contract that requires >

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New Building Movement The Van Nelle Design Factory was designed around the concepts of light, air and space, inspired by the architects of the ‘Nieuwe Bouwen’, the Dutch branch of the Modern Movement in architecture of the first half of the 20th Century. This vanguard architecture is based on ‘objective’ functional considerations and often included open layouts that allowed spaces to be used with flexibility. The objectivity is demonstrated by the straightforward architectural features, unadorned angular shapes and cubic volumetry, and the emphasis on efficiency, hygiene and human wellbeing. The architects J. Brinkman and L.C. van der Vlugt, together with J. Duiker and J.J.P. Oud, were the protagonists of the ’Nieuwe Bouwen’ and played a leading role in the development of 20 Century modern architecture.

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> them to select the most energy efficient option when re-placing lighting or other equipment. Also, you won’t see any regular plastic coffee cups, but mugs that are cleaned with biological detergents.

New inspiration from old buildings Apart from the factory itself, several other unique buildings on the Van Nelle site have inspired new businesses. When arriving at the site, the first small building that is encountered accommodates the caretaker of the whole complex. It still holds the same function as in the 1930s. The next building reached is the former head office, renovated by Molenaar & Van Winden architects. This office space still holds many of its original characteristics and, during the conversion, historical research produced some new insights that might be used in future renovations. Located at the other side of the factory lane is the boiler house. This is the site were the steam and energy for the Van Nelle factory

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were produced. It is also a very attractive and transparent building. The large boilers are still in place and can be clearly seen from outside. Also the ‘Schiehallen’, large storage halls with direct access to the water of the canal, have been renovated. They accommodate offices and production rooms. The former dispatch building is connected to the factory building by the typical transparent overhead bridges. Currently the internationally famous urban design agency, Kuiper Compagnons, is housed in this unique building. Finally, the building of the engineering department has been redeveloped to a successful centre for businesses in the film industry, such as lighting and sound specialists, scouting agencies or set builders. In many ways the Van Nelle Design Factory pointed the way for other factory buildings that have been redeveloped in recent years. Plans are to expand the ‘inspirational village’ with another 30,000 m2. It is clear that the creative factory is here to stay and will keep its attraction for young, creative people who want to share their visions and ideas. <<

THE COFFEE ROASTING HOUSE IS THE SPOT WHERE EVERYBODY ENJOYS THEIR LUNCH SEATED ALONG THE

LONGEST LUNCH TABLE IN EUROPE.

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During this process the Dutch government developed its economic policies for what we describe as the Dutch ‘top branches’: agri-food, chemicals, creative industries, energy, high tech, horticulture, life sciences & health, logistics and water. As a result we have, within this book, been able to show both the ambitious framework within which our industries can function and advance, as well as the supportive structure in which our entrepreneurs can invent and thrive. For a book like this, you need a team. First of all, I would like to thank Giedo van der Zwan who became a kingpin for this project in his unrelenting effort to give ‘consultancy’ language a journalistic twist and his aim to capture the ‘soul’ of a company with his camera. Special thanks go to Gerrit Roberts for his acquisition activities (without him there would probably never have been a book) and to Steve Mercer, who provided critical English readership of the texts. I thank co-authors Ron Overgoor and Robert van der Lande for their contribution. Josta Bischoff Tulleken and Jan Mak were able to combine all texts and pictures into a dynamic yet readable book design, that strikes the eye. This book has been composed in close cooperation with Agentschap NL. Jeroen Heijs and Huib van der Kroon were our partners during the past year and I much appreciate their many suggestions for themes and companies that might participate in the book. They were also responsible for critical readership so that the texts complied with the results of the various innovation programmes of Agentschap NL and with the reports that underlie the new Dutch economic policies for the top branches.

Acknowledgements

Two years ago in a conversation with Willem Zwalve, director general of SenterNovem (now Agentschap NL), we both agreed that a comprehensive picture did not exist of Dutch industry and its importance for the Dutch economy and exports. As an author of books on many different topics, I suggested that it would be worth a try to create a publication that would give credit to this important part of Dutch society. It took some time for this germ of an idea to develop into a more tangible concept and format, and even more time to compose the book that now lies in front of you.

We have met many people from the top branches in recent months. I would like to thank all of them for their open-mindedness and enthusiasm for the subject; they gave us valuable information on the structure of their respective branches, and for the main themes and companies to be approached. Jaap Jan Brouwer The Hague, October 2011

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