Wibax Magazine March 2016

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NEWSLETTER FROM WIBAX ∙ MARCH 2016

WE ARE INVESTING IN THE FUTURE


WE ARE GROWING

The CEO has the word

and adapting the organization

This year WIBAX turns 30 years old and much has happened since its beginning in 1986. We have continued to pursue our goals throughout 2015, and we have taken a major step in which the pace today is even higher. We continue to invest in logistics through the acquisition of terminals in both Härnösand and Skutskär. These terminals play a great role in our growth and ability to compete, as they allow a further expansion into new markets. During the year, after being granted an exemption, we have invested in a so-called HCT vehicle with a total weight of 74 tons. The concept provides great benefits for our environment and increases Sweden's ability to compete on the international export market. The development of new markets and new technology progresses, and the interest in our self-produced products is growing, and the foam damper is an example. Our “performance” products will play an important role in the future. We have a challenging future ahead that will put great demands on our devotion to the task and our flexibility at work. Our ambition is to reach the set goals and we do this with the help of the great commitment and faith in the future that pervades our Company. Jonas Wiklund, CEO WIBAX Group AB

Publisher – Jonas Wiklund Production – WIBAX Graphic design – Mawix Art Press – Accidenstryckeriet

WIBAX continues to progress towards the goal of a turnover of 1 billion by the year 2017. In order to make what we offer clearer and our service stronger, we have carried out a number of changes in the Organization, starting from January 1st 2016: Bio oil

Our ambition is to contribute to a positive development through security, experience, service and a high level of knowledge.

Through the acquisition of Silvex Energy AB we have created Wibax Biofuels AB which brings together all activities in the field of bio oil.

Speciality chemicals

We are going to be close to our customers and work purposefully in order to build a solid knowledge of our clients' industry branches and activities.

Basic chemicals

These structural changes also mean that our customers and partners can do business with several companies in the Wibax group and that invoices can come from, or be sent to, a different company than before.

Our entire line of speciality and functional chemicals is offered through Wibax Performance Chemicals AB.

All sales of basic chemicals are the wrist, as previously, by the parent company Wibax AB.

In 2015, we have almost doubled the number of sellers. They are located across the whole country and meet regularly to draw up common guidelines.

Our hope is that the new organization will be perceived as even more customer-oriented. You are, naturally, always welcome to contact us if you have any questions.

DAVID WIKLUND Managing Director Biofuels

DAVID ÖQUIST Chief Commercial Officer

ANDERS TÖNDER Operations Manager Performance Chemicals

FRANK LJUNGSTEDT Sales Manager


New CEO for WIBAX OY

We welcome Michael Kvist as the new CEO of WIBAX OY, where he will lead operations and expansion in Finland. Mikael is 56 years old and lives in Vasa. Michael has previously worked about 20 years in the chemical industry, where he has held a number of senior positions both in Finland and around the world. - We are happy that we managed to obtain someone like Michael. He has the experience and the drive that is so important to us and to our customers,” says David Öquist, Marketing Manager at Wibax. WIBAX OY was established in 2013 and is based in Kotka, and is an affiliated company of the WIBAX group. Through our establishment in Finland, we will become an even stronger partner for the Nordic market. The industries to which WIBAX is close are the pulp and paper industry, the mining and metal industry, water-treatment and road maintenance. The cost-effective products that are supplied are basic chemicals such as sodium hydroxide, complexing agents, magnesium sulphate and aluminum sulfate. They are often distributed from our own terminals, and this is also an objective of WIBAX OY. Special products such as antifoamers and cleaning products are produced in our own plant in Piteå, Sweden. Wibax is also the exclusive distributor of GE's water chemistry on the Nordic market.

WIBAX acquires Silvex

– a company in the field of green WIBAX has acquired the company Silvex and is its formal owner as of September 1st 2015. The company is located in Stockholm and imports, among other things, pitch oil that is sold on to customers in the energy and industrial fields, especially in the Nordic countries. WIBAX acquires all the shares, and their previous owners continue to work through their respective consulting companies. Silvex has, at the present time, a turnover of approximately 60 million SEK, and its products fit well into WIBAX’s investments on green energy and aggressive growth plan. Silvex has several years’ experience with pine oil-related products, and has established contacts with many suppliers alongside a well-established logistics chain. The acquisition also includes the authorizations required for the importation of products outside Europe. WIBAX Energy LTD's existing business deals are transferred to the new company, and their name is changed to WIBAX Biofuel AB

in order to further clarify our environmental profile. David Wiklund, formerly chief operating officer of WIBAX Energy AB, takes on the role as head of the company. With strategically located terminals, efficient logistics solutions and stocks all around the Nordic region, we make it possible to meet our customer's needs in a more effective way.

– The acquisition of Silvex is an important investment in WIBAX's growth strategy. The acquisition also opens up a new geographic expansion while we extend the added value for our customers in the region, says Jonas Wiklund, CEO of the WIBAX Group.

NEW OFFICE IN STOCKHOLM Since June 1st 2015, WIBAX has a new office in Stockholm. We rent a room with two office spaces in the Westmanska Palatset in Norrmalm. The address is Holländargatan 17, and it is about a 15 minutes' walk from the central station – a really good location for Wibax!


WIBAX BECOMES HEAVIER

WIBAX is now starting to operate a new, more efficient and more eco-friendly tank vehicle for traffic on the Northern coast. It is on the route between Husum in the south and Kalix in the north that the traffic authority has granted the company an exemption. The exemption covers transports with 15% more loading capacity than the current rules allow. The vehicle can carry up to 74 tons in total weight, which is good for the industry and for our environment. In addition, we plan to run the vehicle on 100% HVO, renewable fuels. The project is an effort in the development to demonstrate the possibilities of more efficient transportation for tank transports. Today, vehicles with a maximum mass of 64 tonnes are allowed on the public road network. At the same time, the issue of heavier and longer vehicles is being addressed. The decision to go from 60 to 64 tonnes made last summer is an important step in the right direction, but only when we allow even more efficient trucks, like the 74-ton trucks, the really big advantages will be seen. In Sweden, a series of studies and demonstration projects with heavier vehicles have been implemented with good results. To load more cargo at each run makes road transport more efficient, reduces emissions, and requires fewer heavy vehicles on the roads. The vehicles are heavier, but not longer, than regular trucks, and because they are equipped with more axles, the wear and tear on the roads are the same. So far, this type of demonstration project has mainly been implemented with timber and wood chip transport. But with Wibax's projects, liquid transports are brought into the work too.

For Wibax, it is natural to be at the forefront of the development of the transport industry in the future. Sweden is a small country with a large foreign trade. Both import and export are important for Swedish companies' ability to compete. Sweden has long transport distances to the main markets and long transport distances within the country. Making these transports more efficient would affect all Swedish transport buyers in a positive way, and thus affect Sweden's ability to compete positively. Many industries in Sweden are resource-based, which means relatively heavy in relation to their economic value, for example the food industry, mines, steel companies, the forest industry, forestry, the chemical industry and others. Many of these branches are also available on the global market where product prices are set via the world trade. This means that any opportunity to be more efficient and save money is extremely important in order to cope with the competition.

The result with several different experimental vehicles shows: REDUCED EMISSIONS Reducing emissions from road traffic is important in facing climate change and protecting our health. With the 74-ton vehicles, three vehicles load as much as four trucks of the same size, which reduces emissions by an average of 10 percent per transported tonne. FEWER TRUCKS ON THE ROADS With the 74-ton vehicles, three vehicles load as much as four trucks of the same size. The aim is to optimise the entire transport system. With the heavier vehicles, the number of vehicles will diminish, and transports to all rail terminals and ports will become more efficient.

STRENGTHENING SWEDEN'S COMPETITIVENESS By transporting more per truck, fuel consumption is reduced, which helps to cut down costs. The 74-ton vehicle would strengthen Sweden's competitiveness, since the transport system could be used in an optimal way t. IMPROVED ROAD SAFETY If Sweden were to allow 74-ton vehicles, companies would invest in new, modern 74-ton trucks. These would replace today's older vehicles. Trucks with higher load capacity also mean fewer vehicles, thus affecting road safety positively.


WIBAX'S NEW TRUCK

WIBAX invest in a terminal in Skutskär/Gävle WIBAX has invested in a terminal business in Skutskär, formerly owned by the Baltic Tank/KS-Terminal. The date of the takeover was March 3rd in 2015. The terminal offers many possibilities and is strategically located for several important customers. The terminal has a storage capacity of 40.000 cubic meters and is a great addition to Wibax's other terminals.

WIBAX'S new trucks and trailers for packaged goods have gained a new striping. The trucks leave from Piteå where we have our production facility and deliver goods that are packed in IBCs, drums, tanks, and as dry matter in bags, from Sundsvall in the south to Kiruna in the north.

ECO-EFFICIENT TYRE MANAGEMENT

Together with Michelin, Wibax Logistics has implemented a tire policy that makes operations more efficient and helps us reach a step further in terms of sustainable transport and reduced environmental impact.

Since the takeover, there has been a feverish activity in order to get started with the storage and distribution of sulphuric acid. Now it is ready, and on February 5th, the vessel Fjellstraum MT unloaded 5,000 tonnes of sulphuric acid to Wibax's depot in Skutskär. Now, further customization and renovation works are continuing in the terminal, so that suits Wibax's activities. We see the area around Gävle as strategically important for WIBAX to continue growing.

SUSTAINABLE TRANSPORT Through our tyre policy, we have simple tyre management with clear guidelines on what to mount, which at the same time helps us save on our fuel and tyre expenses. We get increased transportation security and decrease the standstill period. We reduce our impact on the environment as we save on raw materials and achieve a reduced fuel consumption by retreading and tyre regrooving.

NEW SO2 CONTAINERS Wibax has purchased 8 new containers to transport sulphur dioxide (SO2) by rail, and these containers have been in operation since the beginning of July 2015.


JENS SOHLMAN, WIBAX Industrial.

Successfully

polyurea project in Qatar WIBAX, in collaboration with the Norwegian company Kinera Coatings AS, has participated in a pilot project in an aluminum smelter in Qatar. The task was to test treat a part of a leaky water pipe with polyurea. In addition to a very successful outcome, this adventure was an exciting and particular challenge for those involved. The contact with Kinera Coatings, which offer solutions for surface treatment, was established about a year ago, and in the autumn the opportunity to collaborate came in a pilot project in Qatalum, a large aluminium plant in the State of Qatar on the Arabian Peninsula.

MANY BENEFITS OF POLYUREA Five metres below the surface is a cooling water pipe that has begun to crack. The goal is to find an optimal and efficient method to eventually seal and restore the entire piping system, which covers approximately 1.2 km, for a total of about 10 000 m ². Polyurea is a very interesting alternative since it is a fast hardening bicomponent product that seals and doesn't burst, and in addition is resistant to salt water. Jens Sohlman from WIBAX Industrial was one of those who, in early November, went to the plant in Qatar together with Torbjörn Claesson from WIBAX Logistics and five employees from Kinera Coatings. – We had a test distance of 30-40 meters to work with. The challenge was to work as efficiently as possible in the shortest possible time.

SUCCESSFUL COOPERATION The work was preceded by thorough preparatory work. Machines and other equipment were transported by airplane in advance. Once at the loction, everyone had to follow safety training and undergo very thorough checks to get work permits and access to the facility which is located in a large industrial area with high safety standards.

– The waiting time was pretty long and the language issue complicated things a bit, but the work itself went through very well, without stops or major problems, says Jens Sohlman who is very pleased with the efforts and cooperation with the Norwegian colleagues. – They were specialized in the sanding and we were responsible for the spray coating. We sprayed several times to make a thick coating, and this went pretty quickly because the material hardens in just one hour.

HOPES FOR CONTINUATION The total surface treated was of about 360 m ². The work was completed a few days faster than expected, and the customer was very pleased with the end result. Jens Sohlman describes this particular task as hard work and an interesting experience. – We worked almost around the clock and it was really warm both during the day and night so we needed a lot of fluids all the time. We did not experience a lot outside the industrial area, but it was exciting to work in another country with a different culture. Now, work is in progress to assess the results and to prepare an offer for the surface treatment of the entire piping system. If everything falls into place, it may result in a project during four years for about one month a year. Jens Sohlman is not unwilling to go back. – I will gladly go there again Surface treatment of the tube, which If there is a continuation. measures about 2.5 meters in diameter, was preceded by draining, grinding and thorough cleaning. The test area was then treated effectively with several layers of polyurea.


FIGHT DUST

WITH MAGNESIUM CHLORIDE All dirt roads require regular monitoring and ongoing maintenance. The gravel needs to be scraped and completed. They also need a dust binding agent to keep the road safe for traffic and to minimize road damage and the cost of road maintenance.

How big is Wibax in the area of dust control? Wibax has over 30 years of experience and is one of the largest suppliers of products for dust control on roads and in other outdoor and indoor environments where dusting is a problem. Our clients range from major contractors, haulers and municipalities to individual clients as well as large industries. Which dust control products does Wibax sell? We offer advice and sell the following dust control products; • Magnesium chloride, an eco-product that has more and more impact.

What are the most common dust control products? Magnesium chloride is the dust control agent that has increased the most in the last 10 years. It is a natural salt with the ability to quickly bind large amounts of moisture which makes it effective in connecting the smallest particles in the paving mixture. Magnesium chloride is used on roads, storage facilities, industries, trotting and horse riding tracks, etc. The product is also used for de-icing roads in the winter, sludge treatment of chemicals in purification plants, raw materials for the production of magnesium, as well as a separation medium for mixtures of oil and water in the metal industry. Magnesium chloride is also available as a ready-made solution.

Some customer comments from last year's salt season: • Order and cleanliness in the terminals • Good spread of terminals around the country • Wibax is a large company with a small company feeling • Wibax has a good end-to-end solution • Good quality of the salt

If you have any questions, feel free to contact our

• Calcium chloride • Lignin, a natural binder. • Polymers for different dust control products, mainly for landfills, material piles and crushing plants. Does Wibax offer the delivery of dust control products? Thanks to our terminals all around Sweden, we are located near to our customers. In addition to our own terminals we also have additional terminals for dust control products and can provide quick and safe delivery directly to the desired address, but you can also pick them up yourself at our terminals.

Which dust control agent is best for the environment? Magnesium chloride (dry product) does not create dust when used, and is gentler on skin contact compared to calcium chloride. This means huge benefits for the individuals who will unload and distribute the salt. The product is also gentle to animals, such as on horse riding tracks and dog racing tracks. The use of Magnesium chloride solution is increasing, and the advantages of using a solution are that the spreading becomes smoother and more controlled, and reduces consumption by 1020% compared to the dry product. This saves time in the form of machines and working hours, allows a lower fuel consumption and, above all, a lower impact on the environment.

ANDERS ERIKSSON Account Manager + 46 70 576 98 58 anders.eriksson@wibax.com

MADELEINE OLOFSSON Account Manager + 46 911 373 99 55 madeleine.olofsson@wibax.com


POSTAGE PAID

What is the best thing about working at WIBAX?

KATARINA SANDGREN Process operator

WIBAX

– main sponsor of CULTURE TENT BY WIBAX in SM week

WIBAX celebrates 30 years and we started our celebrations in a wonderful festival in Piteå in connection with the Swedish championship week. Wibax signed an agreement as an official partner of Destination Piteå and SM-week where we were the main sponsor of a major dining tent in the Centre, the Culture tent by Wibax. We also contributed to the warming of the tent with the help of Bio-energy.

The Culture tent by Wibax with an atmosphere of Norrbotten had good food, drinks, live music, entertainment, awards and the chance to see SM-competitions on a big screen. It was a very successful event with many visitors, and we would like to take this opportunity to thank all those who have worked on its realization, and, last but not least, we would like to give a big thank you to all the visitors!

ANNA BERGVALL Environmental Coordinator

– I get to work with what I like and it is never monotonous because we work according to a schedule where we take turns doing different tasks. But the best part is probably the great community that makes me enjoy it so much, says Katarina Sandgren, process operator at Wibax.

– I've been working as an environmental coordinator at Wibax since the fall of 2015. At Wibax there is a captivating forward drive and an enjoyable atmosphere. I think it is important to work for an employer who takes responsibility for environmental impact, and I find it rewarding to help make Wibax even more environmentally friendly. In addition, my job is varying, with plenty of room for personal development.

Do you want to know more about how we can help you become fossil free? Read more on our website: http://wibax.com/branscher/energi/

COMPANY FACTS WIBAX is a high-tech specialist company that purchases, processes, sells and distributes speciality products and basic chemicals to the industry in Europe. We are working on goal-oriented development in all areas, from purchasing and logistics to customer collaboration, technology, production and service. WIBAX continues to grow, and reached a turnover of just over 700 millions in 2015. There are currently about 160 employees in the group.

Batterigatan 12 · 941 47 PITEÅ · Tel + 46 911 250 200 · Email: info@wibax.com www.wibax.com


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