EDGE - ESCO CorporationPat Fonner, Chris Grald, David Hamilton, Perry Harvey, Chuck Hanson, Frank &...

EDGETHE

Solutions from ESCO

Glowing castings emerge from a new heat treating oven at ESCO’s plant in Guisborough, England. Article on page 12

DEC

EMBE

R20

05

IN THIS ISSUE

Rising to the Challenge

To be the premier provider of highly engineered, technically rich metal components and solutions for industrial applications.

ESCO Corporation, founded in 1913 in Portland, Oregon, USA, is a global group ofcompanies that manufactures engineered metal parts and components for industrialapplications. ESCO is comprised of four operating groups:

Engineered Products GroupInnovation leader for metal wear parts, components and earthmoving products used in global mining, construction, dredging and other challenging industrial applications.

Engineered Metals GroupWestern United States supplier of processed stainless steel, and a provider of engineered metal parts and components.

Integrated Manufacturing GroupPremier provider and vertical integrator of technicallyrich components, assemblies and replacement parts foroutsourced manufacturing and machining.

Turbine Technologies GroupResponsive manufacturing partner for precisioninvestment cast components in aerospace andindustrial gas turbine applications.

ESCO MISSION

• Show the strengths and problem-solving capabilities of ESCO’s business groups

• Spotlight ESCO’s successes in the diverse markets it serves

• Communicate the values and traditions that make ESCO unique

• Help build lasting and mutually beneficial relationships with customers

EDGE MISSION

©2005 ESCO Corporation. All Rights Reserved.Printed in the USA.

ESCO, Helilok, Kwik-Lok, Posilok, Spherilok, Super V, Toplok, Vertalok and Zipper Lip are registered trademarks, and Hi-Vis, SV2 and Conical are trademarks of ESCO Corporation. Bucyrus Blades is a trademark of Bucyrus Blades, Inc. Vidaplate is a registered trademark ofBradken Resources.

The EDGE: Solutions from ESCOThe Magazine of ESCO Corporation

December 2005 Volume 2 Issue 3

EditorJohn Howard

DesignerNatalie Bonacorsa

Contributing Writer/PhotographerAlexis Clark

Director of Marketing CommunicationsJodi Walder-Biesanz

The EDGE staff would like to thank the followingindividuals for their help on this issue:

Stewart Alsop, Paul Bird, Rob Cowling,Pat Fonner, Chris Grald, David Hamilton, Perry Harvey, Chuck Hanson, Frank & Julie Jungers, Jeff Kershaw, Mark Mallory, Jon Marks, Jim Marx, Jacqui Miller, Brian Nielson, Jerod Paul, Bruno Pesch

The EDGE is publishedin April, August and December.

Readers’ comments and suggestionsare always welcome.EDGE MagazineESCO Corporation2141 NW 25th AvenuePortland, Oregon USA 97210email:

I enjoyed your article about the 1905 Lewis & Clark Exposition in the last EDGE, but

you were wrong when you said that none of the buildings remain. In fact, they floated

the National Cash Register Building down the river to St. Johns after the fair closed.

Now, the old building is used as a McMenamin’s pub and theater.

Frank Vanek

ESCO Retiree

Editor: My thanks to Frank for setting the historical record straight. Frank worked at

ESCO for 36 years and retired in 2001. His last job at ESCO was as a receiving clerk

at the Portland plant. Frank was and continues to be an outstanding volunteer, always

willing to donate blood, help Friendly House, and support good causes. He also served as

an enthusiastic member of the ESCO Activities Committee.

The last EDGE publication is just a delightful piece of work. It must be a joy for you

to see copies resting on tables in customers’ reception rooms. The article on Theresa

Mills, who is involved in production planning at Plant 3, brought back some old

memories—45-year old memories at that. My hat is off to the Personnel Department

for their ability to bring individuals like her into the fold. Some young people

nowadays just astound me.

William R. Barber, Jr.

President & CEO, Dycon International

Thanks to former ESCOite Bill Barber for his complimentary words. Bill included in

his letter a lengthy and fascinating account of how ESCO® swagers and stainless swage

sleeves were developed in the late 1950s. It is a story we hope to share with readers in a

future EDGE or LADLE Magazine.

LETTERS TO THE EDITOR

6

CONTENTS

12

16

RISING TO THE CHALLENGE

This issue includes several articles that discuss how ESCO and our customers have risen to the challenges of product innovation, safety, speed to market, and customer service. In today’s global and highly competitive business environment, the only firms that thrive are those that continually improve processes internally and provide greater value to customers externally—and ESCO’s businesses are rising to those challenges every day.

On page 6 read how ESCO engineers have responded to the challenge of mine safety by designing the SV2™ tooth system and Whisler Plus™ lip system which provide outstanding wear and penetration without requiring hazardous hammering to install or remove teeth and adapters. Mining customer US Borax, one of the first to use the new hammerless systems, gives them high marks for safety and performance.

Read about ESCO’s foundry in Guisborough, England, which has risen to the challenge to increase output tonnage in order meet record global demand for ESCO® construction products (page 12). Using lean manufacturing techniques, technology enhancements and “clever thinking”, the employees there have successfully increased tonnage 30 percent over the last four years, and they are optimistic that further substantial gains are possible.

ESCO Engineered Metals, challenged by customer Marks Brothers to quickly supply special stainless steel tubing, used its influence with the mill to deliver the hard-to-get stainless material in time for Marks Brothers to complete a big heat exchanger project for a Brazilian pulp and paper mill (page 15).

ESCO Turbine Technologies rose to the challenge recently by cutting the lead time in half to manufacture turbine blades for RMS, a supplier to the petroleum refining industry (page 19). “In my 30 years in this industry, I have never seen blades manufactured this quickly,” said RMS Vice President Jerry Hallman, who praised ESCO’s commitment to Speed to Market.

Jerry Gillis, ESCO’s plant engineer for Engineered Products, discusses the challenges of planning and designing a new ESCO foundry in Xuzhou, China—thousands of miles away in a non-English-speaking country (page 21).

Life is about challenges. How we respond to challenges as an organization determines to a great degree how successful we are in the marketplace. The articles in this issue provide examples of how ESCO and our customers are facing challenges, finding solutions, and serving the end user with quality, value and speed.

— John Howard, Editor

FROM THE EDITOR

MILLER UK LIMITED

ESCO GUISBOROUGH

NEW CHINA FOUNDRY

US BORAX

21

ESCO EXECUTIVES COMMENT ON CHALLENGES 4

INTEGRATED MANUFACTURING 10

EM CUSTOMER: MARKS BROTHERS 15

CHALLENGES OF BUILDING A NEW FOUNDRY 18

TT CUSTOMER: RMS 19

NEW FOUNDRY IN XUZHOU, CHINA 20

ORGANIZATIONAL CHANGES 21

ESCO RESPONDS TO KATRINA CHALLENGE 22

SERVICE ANNIVERSARIES 22

THE EDGE DECEMBER 2005 5THE EDGE DECEMBER 20054

RISING TO THE CHALLENGEESCO executives comment on the challenges at ESCO

The north face of Broken Top Mountain, Oregon. Photos by John Howard.

THE EDGE DECEMBER 20054 THE EDGE DECEMBER 2005 5

Pat Fonner | Vice President ESCO Engineered Products

The challenge for our team going forward is to understand and satisfy the ever changing needs of our global customers. To maintain customer loyalty we must continue to provide a compelling value proposition of quality products and services delivered locally when and how the customer needs them. We are driving a culture of continuous improvement QVS into our new product development process and our supply chain delivery system to make sure this is accomplished.

Mark Mallory | General Manager Construction and Mineral Processing

Our biggest challenge right now is to develop sufficient capacity to meet increasing demand in our key markets. ESCO has been investing heavily in new plants and capital equipment to make

sure we have the capacity to take care of our existing customers and meet future growth objectives. We’re eliminating constraints in our plants to increase production, and also building duplicate tooling to be able to “flex” tonnage from one foundry to another,

depending on which ones are the busiest.

Ray Sykes | Vice President Industrial Products

One of the biggest challenges for manufacturing is the rising cost of materials and energy. We’re trying to offset these rising costs by focusing on QVS continuous improvement, implementing lean manufacturing tools, reducing waste and rework, and implementing energy conservation intiatives. Another big challenge is that many of our foundries are running over capacity. By acquiring Quality Steel, we now have two additional foundries with excess capacity available. As this gains momentum, there will be some relief on the tonnage demand at ESCO’s Newton and Port Hope foundries.

Perry Harvey | President ESCO Turbine Technologies

We are challenged to introduce new products in a profitable way. To address this, we started a Speed to Market initiative in 2003 that has yielded some positive results in 2005. In numerous cases we’ve been able to introduce a new product in less than 20 weeks. To accomplish this requires cooperation and concurrent engineering between Turbine Technologies and our customers, as well as using the latest computer aided technologies to simulate casting processes.

Dan Devlin | President ESCO Engineered Metals

The biggest challenge we are currently facing in our business unit is the rapid downturn in pricing and raw material surcharge that has negatively impacted our margins. We have

responded well by aggressively selling our high cost material, reducing our inventory and increasing our turnover. We have been able to get the average cost of our inventory closer to replacement cost in a very compressed time frame. We continue to emphasize the importance of value added sales (EMAT) to improve our margins as commodity products continue to be under

downward margin pressure.

Steve Pickering - President ESCO Integrated Manufacturing

One big challenge faced by IM is to develop new business outside our core semiconductor capital equipment customers. New business is critical to offset the volatile nature of the semiconductor industry. We have pursued new business by expanding our sales and marketing team to seize opportunities in targeted markets, including medical, aerospace and analytical instrumentation. We have also dramatically grown the flat panel display portion of our business by acquiring and installing the assets of a former competitor. As a result of these added resources, our backlog, revenues, and opportunities for future growth in this market will increase.

THE EDGE DECEMBER 2005 7

CHALLENGE:For improved safety, design a high-performing mining tooth

system that requires no hammering to install or remove

THE EDGE DECEMBER 20056

THE EDGE DECEMBER 20056

oron, California — Out here in the Mojave Desert, just miles from the route where twenty-mule teams once hauled wagon loads of raw borax across the shimmering sands to market, US Borax Inc. operates one of two world class borate deposits. With nearly

800 employees, US Borax’s Boron Operations team mines, refi nes and ships about one million tons of borate products from this site to customers in nearly 100 countries.

The company discovered borate deposits in Death Valley, nearly 200 miles from this site, in 1872. Borates are valued for a host of applications. Originally used in ancient times to reduce the melt-ing point of gold, borates are also key ingredients in soaps and detergents, fi berglass insulation, heat-resistant glass, ceramics, agricultural nutrients, wood preservatives and fl ame retardants.

Borax’s Culture of Safety

Safety is more than a concern at US Borax, it is a fundamental part of the mine’s culture. In 2003, the US Borax’s Boron Op-erations were honored as the safest among parent company Rio Tinto’s 80 worldwide operations. For the past two years, this site has been named the safest large mining operation in the United States by the Mining Safety & Health Administration.

“Safety is our top priority at Borax,” said Chris Robinson, the mine’s chief operations offi cer. “Our ultimate goal is zero in-juries. We believe that everyone who works at Borax should go home as healthy as when they arrived for duty.”

ESCO’s SV2® System Selected for Safety & Performance

Over the last few years, major investments have been made in the mine’s equipment, processes and infrastructure. In early 2004, members of the pit’s equipment maintenance team were ready to upgrade the tooth and wear shroud equipment on the mine’s two P&H 4100 cable shovels. They invited three ground engaging tool (GET) manufacturers to make presentations.

“Some suppliers offered a hammerless tooth system, but ESCO was the only one that was getting close to offering hammerless everything—teeth, adapters and lip protectors,” recalled Chuck Hansen, the mine’s drill and shovel maintenance supervisor. “ESCO was ahead of the curve, and that caught our attention.”

Chuck contacted other mines where the SV2 system was being trialed, and the reports were favorable. By the time of the Min-expo 2004 trade show in Las Vegas last fall, ESCO’s hammerless SV2 tooth system and Whisler Plus™ adapter system had passed trials in a variety of demanding applications and were ready for market release. Representatives of US Borax met with sales per-sonnel from ESCO and Cutting Edge Supply (the ESCO dealer in Colton, California) and a purchase order was written to outfi t one of the mine’s P&H 4100 buckets with ESCO’s newest and safest mining tooth, adapter and shroud system.

“Once we were confi dent that ESCO and Cutting Edge could supply the parts, including spares, we were eager to make the

conversion,” said Chuck, a 22 year veteran of the mining busi-ness. The system was installed in May, 2005, and it has since per-formed beyond expectation on the P&H 4100. Despite working in sections of very abrasive overburden, the teeth, adapters and shrouds have held-up well. No teeth or adapters have been lost, and wear life has been excellent. Most importantly, thanks to the hammerless design, there have been no injuries associated with changing teeth, adapters, or wear shrouds.

“It was the safety of the system that made us go with ESCO,” noted Dave Riddle, senior supervisor. The other benefi ts of the ESCO system—easy changeouts, good penetration, and longer wear life—have been pluses.

Larry Lopez, a fi rst class mechanic with US Borax, reported that he was able to change out the entire set of nine big SV2 teeth by himself in about an hour—without a hammer, of course. “We haven’t lost a single tooth or adapter,” he said. “I’ve never seen a tooth system as good as this.”

“The less time we spend on changing out teeth is time we can focus on more important things.”

Chuck Hansen, Drill & Shovel Maintenance Supervisor

THE EDGE DECEMBER 2005 7

US Borax uses two 56 cubic yard shovel dippers with theESCO SV2 tooth system to dig the overburden.


“The less time we spend on changing out teeth is time we can focus on more important things,” Chuck Hanson emphasized. He and his team were so satisfi ed with the new hammerless sys-tems, US Borax ordered a second 58-yard shovel dipper fi tted with the SV2 and Whisler Plus system. It was fabricated by Cutting Edge Supply and delivered to the mine in September.

Other ESCO products in use at the mine include ESCO® cast end bits, Bucyrus Blades™ dozer blades, Pacal 2000® carbide-tipped grader blades, and Hefl in truck bed liners of abrasion-resistant steel plate. US Borax has also expressed interest in fi tting its big wheel loaders with the SV2 tooth system.

The mine is served by ESCO district manager Jim Marx. Kip Padula of dealership Cutting Edge Supply works hard to assure that the mine has the teeth, adapters, blades and other ground-en-gaging tools it needs, when it needs them.US Borax has an exemplary record for injury prevention. ESCO’s new hammerless SV2 mining tooth system and Whisler Plus adapter sys-tem—designed for safety and performance—is a perfect fi t for this leading, safety-conscious borate mine. «

US Borax’s Boron, California mine supplies nearly half of the world’s demand for refi ned borates. The mine is part of the Rio Tinto Group.

Tooth and

adapter removal

is a quick, safe

and hammerless

procedure with

the new SV2

system

8


otating Machinery Services, Inc. of Phillipsburg, New Jersey has nothing but good things to say about ESCO Turbine Technologies and their commitment to the Speed to Market program. Jerry Hallman,

RMS’s vice president of operations said, “In my 30 years in this industry, I’ve never seen blades man u fac tured this quickly—and the quality is excellent.”

Founded nine years ago, RMS repairs, overhauls and redesigns turbine and compressor parts for the oil, pet ro chem i cal, and power gen er a tion industries. In this case, an oil refi nery cus tom er asked RMS to replace and upgrade a set of blades located in a hot gas expander for the fl uidized catalytic cracking process. The blades encounter a catalyst that has the consistency and ero sive qual i ty of sand. En gi neers at RMS came up with a unique blade redesign that would alter the fl ow path, de crease the im pact of the cat a lyst par ti cles and extend the service life of the blades.

To get the blades manufactured—in a hurry—RMS turned to ESCO Turbine Technologies. “I was familiar with ESCO from my days with Ingersoll-Rand, but we at RMS had never had parts made by ESCO before,” noted Jerry Hallman.

The order for two 63-blade sets was placed in mid-May. ESCO used rapid prototyping and other Speed to Market techniques to move the project along very quickly. After the tooling was

made, the castings were poured at ESCO Cleveland in Inconel 738LC alloy. The parts were shot peened, machined and coated before being shipped to the customer for installation. At every stage, the parts were carefully inspected for metallurgical and dimensional integrity. Because of the blades’ improved design, RMS expects them to last signifi cantly longer than the original parts.

“Twenty-one weeks from launch to installation—that’s about half the time it normally takes to get parts made,” said Jerry. “Even though they were busy with other projects, the folks at Eastlake [TT Cleveland] were absolutely great to work with. It went so smooth, and I think we built a relationship that we all can be proud of. We look forward to working to geth er with ESCO in the future.”

Neal Wilkert, Vice President of Projects, explained that RMS is a small but highly capable shop fo cused on serv ing the tur bine and com pres sor af ter mar ket. “We’re not only price com pet i tive, we have a great deal of en gi neer ing ex pe ri ence on our team and we’re small enough to pro vide personal attention to our cus tom ers. We take pride in improving designs and trim ming lead times.”

In this case, with ESCO’s help, RMS was able to redesign, tool, cast, machine, coat and deliver parts to an oil refi nery in only 21 weeks—a great example of speed to market. «

CHALLENGE:Produce sophisticated turbine blades for an oil refi nery

application in the unheard of time of just 21 weeks


CHALLENGE:Offer the experience, agility, and breadth of technologies to serve customers in industries as diverse as semiconductors,

pharmaceuticals, laboratory analytics, and aircraft turbine engines


can mean the ability to handle both small and large

products, simple and complex processes, fabrication

in standard or clean room environments, steady production or constantly

changing, one-off projects. At ESCO IM, we rise every day to the challenge

of serving multiple customers with different needs. Every one of our seven

facilities in California, Arizona and Mexico has unique capabilities. Through

close coordination, we integrate those internal capabilities as well as third-

party suppliers to satisfy our customers’ wide-ranging requirements.

For example, we perform all levels of welding, from the cost-effective assembly

of sturdy steel frames at IM Mexico in Guaymas, to sophisticated laser welding

and vacuum electron beam welding at IM Concord. We utilize over 200 high

end CNC machining centers and milling machines. Our precision drilling

capability includes multiple-spindle technologies for highly efficient and

extremely accurate drilling. Our IM Tempe facility features creep feed CNC

grinding and STEM drilling technology that is utilized to bore long cooling

channels in turbine parts and other applications.

ESCO has invested in the talent and technology to be a first class contract

manufacturer. As the projects require, we routinely work with aluminium,

stainless steel, copper, nickel, titanium, tantalum, niobium, Inconel and other

alloys.

In Class 1000 clean room conditions, we assemble complex semiconductor

process modules in Tempe, Arizona and Concord, California. We do rough

machining, fine machining, chemical cleaning, precise CMM coordinate

measuring and x-ray inspection to assure that dimensions are perfect and all

surfaces meet specification.

From making tiny surgical robotics to telephone booth-sized modules comprised

of thousands of parts, ESCO Integrated Manufacturing has the agility and

technical capability to be the customers’ choice in a wide variety of industries. «


he good news is that global demand for ESCO® products is at an all-time high. The challenge, however, is keeping pace with that strong demand. ESCO Engineered Products’ steel foundries in North America, Europe and Asia are working all out to produce the ground engaging tools and other ESCO products demanded by the world construction, mining and

dredging industries.

ESCO’s foundry in Guisborough, North Yorkshire, England is no exception. Production tonnage is at record levels and employees are working hard to develop ways to produce an even greater volume in the months to come.

“We’re using continuous improvement methods and clever thinking to get more out of this plant without making huge capital investments in equipment,” said Paul Bird, operations manager of the Guisborough (UKG) plant. “We’ve identified molding as a constraint, and we’re looking at software and new ways of handling the molds in order to speed the process and produce more castings.”

CHALLENGE:To increase production at ESCO’s UK Plant


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ESCO established the Guisborough (pronounced giz-burra) plant in January, 1997. The property was formerly a Blackett Hutton & Company foundry, and ESCO was fortunate to start out with about 30 skilled and experienced Blackett Hutton foundrymen. After six months of planning, training, and installing new equipment, the first heat was poured on July 24, 1997.

Over the last eight years, Johan Gaucher, Bud Kenagy, and Randy Green have served as Guisborough plant manager. Today, there are 75 employees. Paul Bird is operations manager, reporting to Jeff Kershaw, recently named managing director of ESCO Europe. In addition to Paul Bird, the UKG management team includes Nigel Pearson (technical), Steve Lear (maintenance), Stewart Alsop (environment, safety and continuous improvement), and Steven Scaife (scheduling and shipping).

Patented High-Volume Molding Process

What is unique about the Guisborough foundry is its use of sophisticated core and molding equipment that allows the plant to pour large numbers of relatively small castings efficiently.

A computer-aided design process is used to ensure a high metal to sand ratio in the molds. Fully 80 percent of the sand is recycled. New sand is used only for the cores, which are dimensionally critical.

The foundry is focused on the production of construction-size teeth and adapters. In addition to ESCO Super V® teeth, the plant makes Bucyrus Blades™, Max DRP™, and CAT® teeth and adapters, as well as some dredge parts. The plant currently utilizes about 170 patterns. The finished and painted castings are shipped from Guisborough to over 20 locations worldwide.

Continuous Improvement

Stewart Alsop, Mark Allen and Dave Pegs, who have spearheaded the plant’s continuous improvement efforts, report that the Guisborough team has been successful in reducing work-in-process, eliminating waste, and increasing tonnage without adding personnel. Drawing on the skills and experience of the entire ESCO organization, local employees have received QVS training and achieved notable productivity gains. Value stream mapping, “cloud burst” improvement projects, constraint removals, and visible workplace projects have all resulted in significant headway in quality, value and speed. As a result of these efforts and successes, Guisborough recently reached the Silver Level in the Lean Links Assessment Program.

“We do not accept the status quo,” Stewart emphasized. “Our people have been very receptive to continuous improvement. They’ve come up with lots of ways to work smarter. They’ve reduced work-in-process to four days—a tremendous improvement over just a few years ago.”

Last year, new heat treat and quench ovens were installed. Improvements were made to the sand and shot-blast systems, as well. These, coupled with procedural enhancements realized

through ongoing continuous improvement efforts, have enabled Guisborough to increase its demonstrated capacity by 15 percent over 2004.

François Baril, out-going managing director of ESCO Europe, noted, “I felt that the UKG team did a tremendous job of embracing the challenges and making the changes necessary to significantly increase output to meet customer demand. The team leaders also did a very good job of writing standard work instructions in many areas.”

Operations Manager, Paul Bird, spent six months in the US, learning first-hand how ESCO’s Plant 3 drove down costs and improved customer responsiveness. He has also learned from two previous Guisborough plant managers who succeeded with different management styles.

“Bud [Kenagy] knew what he wanted and he was adamant about investing in the right tools and equipment. He

“We’re using continuous improvement methods and clever thinking to get more out of this plant without making huge capital investments in equipment”

– Paul Bird, operations manager,

EP Guisborough


encouraged me to take classes in computers and supervision. Randy [Green] sought input from everybody and was more team-oriented and easygoing. I learned from both men,” Paul said.

The employees at ESCO Guisborough recognize that they are, in effect, in competition with manufacturing plants around the globe—both ESCO and non-ESCO. Plants in developed countries like England, Canada and the USA must be focused on high productivity and continuous improvement in order to compete with plants in low cost regions.

“Many of our people remember what it was like when Blackett Hutton closed down,” Paul added. “They are motivated to make a go of it here. Most of the guys appreciate the opportunity that ESCO has given us, and they’re eager to solve problems, increase production and continue to make improvements.”

Jeff Kershaw, managing director of ESCO Europe, added, “Guisborough is key to our servicing the European construction market. Depending on market demand, we may need to increase our capacity by a further 15 percent in 2006, and I’m confident that the team there will rise to that challenge.” «

Today’s ESCO Guisborough employee team includes many who helped open the plant in 1997

isitors to ESCO’s Guisborough plant discover that it is located in an extraordinarily beautiful region,

well worth scheduling a few extra days to explore and enjoy. Quaint Guisborough itself becomes a bustling market town each weekend where farmers, artists and crafts people set up stalls on the main street.

To the south of town sprawls the lovely North York Moors National Park, dotted with cute villages, ancient abbeys, and picturesque rock-walled pastures of sheep. The rolling moors are a hiker’s and photographer’s paradise.

Just 17 miles east of Guisborough is the historic port of Whitby overlooking the North Sea. The quaint little harbor at the mouth of the Esk River was once a Roman outpost. In the year 657 Saint Hilda founded an major abbey on a promontory above town. Attacked by Vikings, rebuilt by a Norman knight, the magnificent abbey was largely destroyed during the purges in Cromwell’s time. The skeleton of the once-great church (shown here) is said to have inspired Bram Stoker to write the novel of Count Dracula. Formerly a major whaling port, Whitby is where all four of Captain James Cook’s

famous sailing ships were built. Today, the town is a tourist favorite, loaded with charming bed & breakfasts and seafood restaurants that tout the freshest and best-tasting fish and chips in all of England.

A few miles south on the coast road is Robin Hood’s Bay, a postcard perfect village that cascades in narrow cobblestone streets from the cliff-top to the surf. Once a smugglers’ cove, today Robin Hood’s Bay is brimming with coastal charm and adorable shops.

To the west of Guisborough lies the beautiful North York Dales where author James Herriot practiced veterinary medicine and collected stories for his All Creatures Great and Small and other popular books. And to Guisborough’s northwest lies the historic town of Durham, the coal-rich region around Newcastle-upon-Tyne, and the remnants of Roman-built Hadrian’s Wall, which spans the entire width of England.

England is loaded with history and pastoral beauty, but ESCO could not have chosen a more appealing locale for a plant than Guisborough and the fascinating towns, nearby coast, and North Yorkshire countryside that surround it. «

Delights of North Yorkshire

14


never signed such a big check for stainless steel in my life,” recalled Jon Marks, president of Marks Brothers, Inc. of Boring, Oregon. Jon was referring to a recent 80,000 pound order of stain less plate and tube that his

company ordered from ESCO to build fi ve large heat ex chang ers for a Brazilian pulp and paper mill.

Marks Brothers bid on the half-million dollar project last May. The customer, a German engineering fi rm, awarded the contract to Marks even though they had never before built heat exchangers of this size and complexity. Fabrication be gan in early July with a penalty clause deadline of September 30.

“The average fab shop can’t take on a project like this, but the customer was happy with our tech ni cal pre sen ta tion and our price. They had con fi dence in us,” said Rob Cowling, P.E., general man ag er of Marks’ pressure vessel di vi sion. His en gi neer ing experience with similar projects for a previous employer was a key to landing the big order.

ESCO EM Rises to the Challenge

ESCO’s Portland-based Engineered Metals team used its infl uence with the mill to expedite the delivery of stainless steel tubing so that the Marks Brothers fabricators could get un der way and meet their deadline with little costly overtime.

The heat exchangers were built in the company’s newly-expanded 25,000 square foot fabrication facility. On several occasions,

customer representatives visited from Germany to check the quality and progress of the fi ve vessels.

There was no mistaking the pride on the faces of the Marks Brothers’ team on September 29 as they prepared the completed vessels for shipment by truck to Houston. In Rob Cowling’s words, “The project went smoothly, and that’s a testament to the people working here.”

President Jon Marks agreed. “It is gratifying to see the scale and diversity of projects we’ve completed in the last year and a half. We’ve caught the market at a good time, but we don’t want to go too fast and stumble.”

Founded by Jon’s father in 1944, Marks Brothers, Inc. began as a simple sheet metal shop. When brother David joined the business, they began making equipment for bak er ies, food processors and other industrial applications. Their payroll grew and they took on more complex projects for customers in pulp & paper, aircraft, petrochemicals and other in dus tries. In recent years, they have invested heavily in sophisticated laser cutting and forming technologies. They were one of the fi rst to offer fi ve-axis laser processing in the Portland market.

The fi rm is about to consolidate its laser processing, sheet metal, and large-scale pressure vessel fabrication operations at a single site in Boring. When the move is complete, they expect to reap substantial effi ciencies and continue to grow both their precision laser work as well as the fabrication and repair of large pressure vessels. «

CHALLENGE:Quickly provide hard-to-get stainless steel materials to a customer

to build fi ve large heat exchangers for a Brazilian pulp mill


ramlington, England—Miller UK Limited is one of the world’s leading independent man u fac tur ers of quick couplers and buckets for construction. Oper-ating out of a modern facility near Newcastle-upon-

Tyne in the north of England, Miller makes and ships thousands of at tach ments to orig i nal equip ment manufacturers (OEMs), equipment dealers and contractors worldwide.

The company began in 1978 when young Keith Miller started offering on-site mobile weld ing services to area quarries and open cast coal mines. After his brother Gary joined the com- pa ny, they offered 24-hour, seven-days-a-week service. They hired qualifi ed welders and opened a shop in Newcastle-upon-

Tyne. By the1980s, the brothers began manufacturing and repairing buckets. Their sister, Jacqui, joined the fi rm in a sales and marketing capacity.

Miller Buckets Feature ESCO® Tooth Systems

Miller began offering ESCO teeth on its buckets from the beginning. When customers asked for top-of-the-line ESCO tooth equipment, Miller was happy to oblige. Many hundreds of well-built Miller buckets have been sold into the UK and the continental European market with Vertalok® and, more recently, Super V® tooth equipment. The buckets are sold through in de -pen dent dis trib u tors, equipment dealers, and OEMs.

CHALLENGE:Penetrate the North American construction market by partnering with ESCO to distribute and sell the Multi-Pin Grabber coupler


“ESCO is recognized as a good quality product,” noted Jacqui Miller. “The brand is excellent, and we only associate ourselves with premium brands.” A Miller bucket fitted with ESCO teeth makes an outstanding digging tool, from heavy-duty excavator and wheel loader buckets to mini-excavators.

In 1989, the company introduced a proprietary product that would establish Miller as an internationally-recognized innova-tor in the construction attachments market. The product was the Miller Quick Coupler, a revolutionary device for changing buck-ets and attachments on site in just seconds. This productivity-enhancing tool became a “must have” for contractors worldwide. Several models were developed to suit specific needs and markets.

In the mid-1990s, ESCO’s Pat Fonner (now VP Engineered Products) and Jacqui Miller began discussions about marketing the Multi Pin Grabber™ coupler in North America. ESCO, which offers customers a broad range of construction attachments, was interested in extending the line to include a hydraulic coupler.

“Quick Couplers were new to the US market then; many Ameri-can contractors had never heard of them,” Jacqui recalled. “Our Quick Coupler had features that no other manufacturer offered.

Negotiations led the two firms to reach an agreement whereby ESCO would market the Multi-Pin Grabber™ (MPG) model hydraulic coupler in North America. ESCO’s extensive distribu-tion system and reputation for quality helped launch the MPG in the US and Canada. The coupler is sold through ESCO’s dealer network and a growing number of original equipment manufac-turers.

“The MPG coupler has been a winner for us in the US,” noted Randy Jones, ESCO’s marketing manager for attachments. “Start-ing at zero about five years ago, it has become a multi-million dollar product for us. It complements our entire line of ESCO® attachments and tooth systems. It is a unique product that has opened a lot of doors for us.” He added that sales of the MPG coupler were up 40 percent in 2004 and are up an additional 50 percent this year.

Meanwhile, Miller buckets and couplers continue to sell well in the very competitive European market. “Customers in the UK are very price-conscious,” Jacqui noted, “so we can’t afford to add a single penny to the cost. We’re constantly evaluating our product line and driving our costs down without sacrificing quality or safety. The day we stop learning and improving is the day we die.”

A member of the Northeast Industrial Productivity Alliance, Miller is committed to continuous improvement, flow man-agement, and lean manufacturing principles. Employees have embraced the NIPA training, standardized procedures and taken waste out of their bucket and coupler manufacturing processes. At the same time, Miller is actively pursuing innovations to serve customers better. “We’re sticking with what we know best, but we’re also looking at designs that use castings and require fewer parts and steps to fabricate,” said Jacqui. “And we’ve established a joint venture in China.”

The alliance between ESCO and Miller has been beneficial to both companies. They have helped promote ESCO tooth systems in Europe and we have helped promote their MPG coupler in North America. Together, we are finding ways to solve problems for contractors in many parts of the world.

“I have a great respect for the Miller family and their entire organization,” concluded ESCO EP Vice President Pat Fonner. “We have a good business relationship and they do a nice job with the ESCO product in Europe.” «

“ESCO is recognized as a good quality product. The brand is excellent and we [at Miller] only associate ourselves with premium brands.”

– Jacqui Miller, Sales &

Marketing Director

he Multi-Pin Grabber™ hydraulic coupler (MPG) picks up a wide range of attachments including buckets, hammers, rippers, demolition tools and more within the same weight class. Manufactured to ISO 9000 standards, the MPG can pick up buckets in either backhoe or face shovel mode. The MPG features a mechanical safety lock and hydraulic check valves in the cylinder and solenoid to retain hydraulic fluid and provide added security and safety. MPG couplers are available in seven ranges, from the 7-ton class to the40-ton class.

Designed for versatility, the MPG hydraulic coupler allows attachments to be changed in seconds, which saves time and money. «

17


CHALLENGE:Plan the construction of a state-of-the-art foundry

in China—5,000 miles from ESCO headquarters

Percy Chang, Jerry Gillis and Mark Mallory review plans for the ESCO Xuzhou plant.


erry Gillis, corporate plant engineer, was presented with a big challenge when he was asked to provide leadership on the design of the new ESCO foundry in Xuzhou, China. With ESCO Engineered Products (EP) for 31 years, he had

much experience designing and upgrading a number of ESCO’s manufacturing plants—but never one in a non-English-speaking country so far away.

Working closely with Percy Chang, manager of China operations; Liu Min, purchasing engineer; Mark Mallory, EP general manag-er of Construction; and many others, Jerry set out to plan, design and equip the new plant over a year ago.

The decision to build the new plant was driven in part by grow-ing global demand for ESCO® mining, construction and crush-ing products. Over the last four years, as demand has risen, much effort has gone into upgrading ESCO’s existing foundries. Capital investments have been made as well as innumerable process and fl ow improvements to increase output tonnage.

“In 2004, we were at or close to capacity at most of our plants,” noted Jerry. The ramping up of ESCO’s manufacturing commit-ments to meet increased market demand compounded the chal-lenge. Despite notable production gains at each of its foundries in the US, Canada and England, ESCO simply needed more tonnage to meet customer needs, and the solution was to add a new foundry.

China was chosen because of the enormous long term potential of the domestic Chinese construction market. In the short term, a Chinese foundry would help fi ll ESCO’s global supply chain. ESCO’s very positive experience with joint venture SCW in Taiyuan, China, also argued in favor of building the “green fi eld” plant in China.

Percy Chang, manager of China operations, and Liu Min, pur-chasing engineer at ESCO’s Shanghai offi ce took the lead on fi nd-ing the property and identifying local vendors. The Xuzhou site they ultimately recommended is in an industrial zone earmarked for heavy industry. Caterpillar and other manufacturers serving the construction machinery market are located there. Infrastruc-ture, the availability of scrap steel and electric power, and labor pool factors were all positive.

“We considered the initial investment cost as well as the long-term cost,” said Percy. “Transportation to our customers inside and outside of China was an important factor.”

When Mark Mallory, EP general manager for Construction, made the Xuzhou foundry proposal to ESCO’s Board of Direc-tors at its May, 2004 meeting, the expenditure was approved. “At fi rst we considered building a shellcast foundry, but decided instead on a no-bake operation for greater fl exibility,” said Jerry. The “guts” of the new foundry will include a fi ve-ton arc furnace, AOD purifying vessel, and all the molding and fi nishing capacity to produce about 25-30 tons per day, to start. A second arc fur-nace may be added in the not-too-distant future to bring output to the 50 tons per day range.

Measuring about 10,000 square meters (100,000 square feet), the facility includes a foundry building as well as an offi ce for administration, engineering and sales. With room for expansion, eventually 250-300 employees may work at ESCO Xuzhou.

The new plant’s design draws upon ESCO’s 92 years of foundry experience. State-of-the-art technology, optimal single-piece fl ow, and fl exibility were key considerations. “We tried to avoid creating monuments [immovable features] in the design in order to maintain fl exibility,” Jerry noted. ”At fi rst, there won’t be many fi xed stations in the fi tting area, for example. We want the plant to develop in its own way; for the employees to create cells.”

He stressed that the Xuzhou foundry will meet the highest environmental, health and safety standards. “This is the plant we would build anywhere in the world, with the latest equipment and pollution controls. It will be a model foundry, ESCO’s best.”

The plant will include a few culturally-specifi c features, including a shed for the bicycles that most employees are expected to ride to work. Also, there will be a kitchen capable of serving several hundred hot meals, which is customary in Chinese factories.Tooling for the new foundry is being developed in Portland by a team of engineers headed by Shannon Boroff and Joel Hankland.

A big part of the challenge for Jerry and Liu Min has been to source equipment. Many pieces of equipment, including the arc furnaces, will be sourced in China because of lower costs and, more importantly, local support and maintenance. They have vis-ited several Chinese vendors of foundry equipment to verify their quality and to ascertain that there are no patent-infringement issues. “We do not want to jeopardize our relationships with any of our suppliers around the world,” Jerry stressed.

Communication has been a continuing challenge. Xuzhou is 15 hours ahead of Portland, so telephone calls must be scheduled at odd times. Also, there is the challenging language barrier. Even when Jerry has had the help of translators, meanings sometimes get lost or people say they understand when they do not fully.

An engineering fi rm out of Shanghai was retained to design the basic steel structure of the building. The engineering had to be approved by a licensed design institute. Following the ground breaking ceremony in October, the concrete footprint of the building will be poured before the end of the year and the steel skeleton of the building will rise in January or February.

Although new challenges will certainly arise during construction, Jerry is optimistic at this point that we will stay on schedule to open the plant on or about the target date of June 30, 2006. With ESCO Xuzhou online, Engineered Products looks forward to having the added foundry capacity to serve customers better. «


broke ground in early October on a wholly owned manufacturing facility located in the heavy machinery industrial zone of Xuzhou, China.

Located approximately midway between Beijing and Shanghai, the ESCO Xuzhou plant will produce castings in the 20-150 pounds range. Expected to be operational by mid-year 2006, the modern plant will employ approximately 150 at fi rst and will eventually produce about 50 tons of steel castings per day.

Initially, about 90 percent of production will be exported. Within six years, it is expected that half of ESCO Xuzhou’s production will be consumed by the domestic Chinese market.

The plant will be part of ESCO Engineered Products (EP). As it comes online and employees are trained, the foundry will be a very valuable addition to EP’s worldwide manufacturing capability. With ESCO’s foundries currently stretched to capacity in order to meet global customer demand, ESCO Xuzhou will soon contribute needed tonnage to the ESCO product pipeline. «

ESCO Breaks Ground on New Manufacturing Plant in Xuzhou, China

ESCO executives Ray Verlinch, Larry Huget and Mark Mallory with Percy Chang (manager of China operations) at the ESCO Xuzhou

groundbreaking ceremony.


Fonner Promoted to Vice President - Engineered Products

Pat Fonner has been promoted to VP of Engineered Products, reporting to Larry Huget, ESCO’s president. Pat now has overall responsibility for construction, mining and logistics for En gi neered Products. Pat joined ESCO in 1976, and has held a variety of positions in sales, marketing and management. His most recent position was general manager of Con struc tion.

Songer Named Vice President - Strategic Business Development

Jim Songer has moved to a new corporate role as VP of Strategic Business Development, reporting to President Larry Huget. In this capacity, Jim will explore new growth op por tu ni ties for ESCO. He has been with ESCO since 1972, and has held jobs in product man age ment, sales, marketing and international business development.

Sykes Promoted to Vice President - Industrial Products

Ray Sykes has been promoted to vice president of Industrial Products, reporting to Pres i dent Larry Huget. Ray joined ESCO in 1975 and has held positions in plant man age ment, op er a tions and general management.

Mallory Named General Manager - Construction

Mark Mallory has assumed a new position as general manager of Construction, re spon si ble for ground engaging tools, crushing and dredge products. He reports to Pat Fonner. Mark joined ESCO in 1985 and has held positions in purchasing, product man age ment and general management. His most recent position has been GM of Mineral Processing.

Owens Named General Manager - Mining

Jon Owens has assumed new responsibilities as general manager of Mining, reporting to Pat Fonner. Jon joined ESCO in 1986 and has held positions in product management, planning, manufacturing and sales. He served as managing director of ESCO Europe, and most recently GM of Logistics and Commercial Operations.

Herbert Named General Manager - Supply Chain

Steve Herbert has been named general manager of Supply Chain, reporting to EP Vice President Pat Fonner. Steve joined ESCO in 1987 and has served as a district manager, marketing manager, optimization team leader, and business manager.

Myers Adds Construction Attachments Responsibilities

Tim Myers, president of Bucyrus Blades, has added responsibilities as general manager of Covington operations and Construction Attachments, reporting to Pat Fonner. Tim joined ESCO in 1981 and has worked in accounting and Engineered Metals. He was promoted to GM of Bucyrus Blades Mexico in 1992, and became BB president in 1998.

Meyer Promoted to Business Manager

Ken Meyer has been promoted to the new position of business manager for Engineered Products’ Construction Division, reporting to Mark Mallory. The crushing and GET optimization teams now report to Ken, who will work closely with the attachments and Bucyrus Blades optimization teams. Ken joined ESCO in 1982 and his most recent position was sales manager for the Construction Division, Western region.

ORGANIZATIONAL CHANGES

22 ESCO SERVICE ANNIVERSARIES

David DowEP Portland

David grew up in the Pacifi c Northwest. He graduated from David Douglas H.S., served in the U.S. Air Force and worked in construction and as a truck driver before joining ESCO EP Portland in July of 1965. David obtained his Associate’s Degree through the tuition reimbursement program. David’s fi rst job at ESCO was grinding. Over the last 40 years he worked as a maintenance mechanic, order fi ller and assembly mechanic. Today David is a Corporate Field Testing Technician. David and his wife, Judy, have three children (Mark, Chris and Toni) and three grandchildren (Jessie, Jake and Natalie). In his free time David enjoys golf, riding ATV’s with his grandchildren and traveling. The Dows live in Aloha, OR.

40 Robert PollockBucyrus Blades

Robert was born in Bucyrus, OH. He served in the U.S. Army and worked for Pacal Blades before joining Bucyrus Blades in October of 2000. Robert works as a burn operator. In his free time he enjoys wood working. Robert and his wife, Freida, live in Bucyrus, OH. They have two children (Bob Jr. and Stacie) and three grandchildren (Brittany, Chelsea and Brayden).

40 Bill DouglasEM Portland

Bill was born in Portland, OR. He graduated from Portland State University and joined ESCO EP Portland as an inside salesman in 1973. Over the last 36 years Bill has worked in Outside Sales for both EM Portland and EM Seattle. He is currently Sales Manager for EM Portland. Bill’s favorite thing about his job is the ESCO Culture, specifi cally the entrepreneurial spirit and creativity of the EM Portland department. Bill’s son, Steve, also works for EM Portland as Operations Manager. In his free time Bill enjoys spending time with his grandkids, golf and hunting. He and his wife, Judy, have three children (Bill, Deanna and Steve) and four grandchildren. The Douglas’ live in Vancouver, WA.

35Bill LeeEP Portland

Bill started at ESCO in November of 1965 with the pouring and shakeout crew at Plant 3, ESCO Portland. He had held various positions at ESCO throughout his 40 years. Bill is currently a fork truck operator with the Mobile Equipment department. Bill is married to wife, Kathy. They have two grown children (David and Debbie). In his free time Bill enjoys spending time with his family.

40 Greg WellnitzEP Portland

Greg was born in St. Paul, MN. He grew up in Seattle, WA but has lived in Portland, OR for the last 40 years. Greg graduated from Lake Washington High School, attended Portland State University and served in the Oregon Air National Guard before joining ESCO EP Portland in September of 1965. Greg started in the Doghouse. He has also worked as a Leadman in Radiography and spent 20 years working in Quality Assurance. Today Greg is a Gage Engineering Technician. In his free time Greg enjoys restoring cars, gardening, fi shing and traveling. Greg and his wife Joanne have two sons (Michael and Brian) and one grandchild. They Wellnitz’s lie in Warren, OR.

40Bob SchaugerEP Portland

Bob was born in El Paso, TX. He served in the U.S. Army and worked for an electronics fi rm, in the lumber industry and in dental supply and repair before starting with ESCO Portland in October of 1965. Bob started as a fl ogger and stand grinder. He has also worked in radiography as an inspector and inspection leadman. Today Bob is a security specialist. In his free time Bob enjoys ham radio, hunting, fi shing and wine tasting. He volunteers with Radio Club Communications. Bob and his wife, Katherine, live in Gresham, OR. They have four adult children (Douglas, Rob, Kathy and Michelle) and three grandchildren.

40

ESCO RESPONDS TO THE CHALLENGE OF KATRINAESCO RESPONDS TO THE CHALLENGE OF KATRINAESCO RESPONDS TO THE CHALLENGE OF KATRINA

urricane Katrina devastated New Orleans, Biloxi and Pascagoula, but its fury and de struc tion were not con-fi ned to the Gulf coast. ESCO’s manufacturing plant and em ploy ees living in New ton, Mis sis sip pi—125

miles north of Biloxi—also ex pe ri enced high winds, top pled trees, structural damage and lengthy power outages.

Employees were sent home shortly before the hurricane hit. While the plant itself, built in 1970, suffered only minor dam age in the Au gust 29 storm, many em ploy ees’ homes were damaged and all were without pow er. Fortunately, no employees or retirees lost their lives.

Immediately, a disaster relief fund was es tab lished by ESCO to aid our col leagues in Newton. World wide em ploy ees, dealers, sup-pliers, and the com pa ny itself con trib ut ed to the fund. Cases of bot tled water were sent, gift cards were distributed to get needed emergency supplies, and every New ton em ploy ee was given a por- ta ble gas-pow ered gen er a tor to help keep lights and key ap pli anc es

run ning until power could be re stored.“Words can’t describe how appreciative the employees were when we arrived with that fi rst batch of generators,” said Andy Rowzee, plant manager. Employees and retirees with special medical needs were given priority. About 200 gen er a tors were obtained in near by Me rid i an, Mis sis sip pi, and an oth er 80 or so arrived within two days from Port land, Oregon. “There were lots of tears and hugs.”

“It was amazing how well our people worked together and looked after each other” following the storm, Andy added. Although the plant reopened two days after Katrina, it took about 10 days for production to reach 100 percent. Some employees were without phone service for six weeks, and there are still piles of storm debris through out the town of Newton and surrounding areas.

All in all, ESCO Newton was lucky to have been spared the total devastation that befell Mississippians just 125 miles away. But the storm did greatly disrupt the lives of over 300 employees and retir-ees, and the entire ESCO family was quick to rally to their aid. «

David MillerTT Syracuse

David was born in Canastota, NY. He worked as a security guard before joining TT-Syracuse in December of 1980. David started as a sandblaster and has worked as a caster and straightner. His favorite thing about his job is that there is always something new. David’s wife, Debra, also works for TT-Syracuse in the wax room. In his free time David enjoys woodworking and hunting. The Miller’s have two daughters (Tabatha and Tarrah).

25 Bob MoorePort Hope

Bob was born in Kileen, Texas. He attended college in Centennial, Trent and Durham before joining ESCO Port Hope in September of 1980. Bob started as a fl ogger and has worked in molding. Today he is an electrician. In his free time Bob enjoys, computers, electronics and 4x4 vehicles. He and his wife, Nannette, have two sons (Richard and Mathew) and live in Coburg, Ontario.

25Noah McAllisterTT Syracuse

Noah was born in Oneida, NY. He graduated from high school and headed straight to TT-Syracuse in November of 1980. Noah started as a rough grinder and has worked as a sandblaster, in visual, as a factory leader, straightener, welder and FPI processor. Today Noah works as a fi nal inspector. Noah’s favorite thing about his job is the people he works with and the challenge of customer demands. In his free time he enjoys woodworking, hunting, fi shing and camping. He also volunteers with Boy Scout Troop 33 in Chittenango. Noah and his wife, Donna, live in Whitelaw, NY. They have two children (Cory and Dakota).

ESCO RESPONDS TO THE CHALLENGE OF KATRINA

25

Henry BeasleyEP Portland

Henry was born in Hollandale, MS. Henry worked for the Western Conservative Baptist Church for eight years and worked for a golf cart manufacturer before joining ESCO EP Portland in1975. Henry started in the Doghouse and has worked as a Ladle department Leadman and in Refractory. Henry notes that he has great respect for ESCO and the changes that have been made over the last 30 years which have allowed him to stay passionate about his work. In his free time Henry is involved with the Mill Park Baptist Church. He and his wife, Eurelene, live in SE Portland. They have fi ve children and three grandchildren.

30 Dick HalbertBucyrus Blades

Dick was born in Baraboo, WI. He attended St. Cloud State University and worked as a territory manager for Pacal Blades before becoming a territory manager for Bucyrus Blades. Dick started with Pacal in October of 1975. His favorite part of his job is promoting value added products. In his free time Dick enjoys gardening and fi shing. He also volunteers with St. John’s in the Wilderness Episcopal Church. Dick and his wife, Lynda, live in White Bear Lake, MN. They have two children (Greg and Jeff).

30 Les CzechPort Hope

Les was born in Poland. He went to trade school to learn how to be a mechanic and worked as a mechanic and framing houses before joining ESCO Port Hope in September of 1980. Les started as a fl ogger and now works as a molder. In his free time Les enjoys watching his sons play sports and fi shing. He and his wife, Maria, live in Fraserville, Ontario. They have three sons (Daniel, Jonathan and Patrick).

25Dana VannoseEP Portland

Danna was raised in Portland, OR. She graduated from Lake Oswego High School and worked for Day Music Company before joining ESCO in November of 1975. A graduate of Linfi eld College, Danna started at ESCO Portland as a records clerk. Over the last thirty years she has worked as a switchboard operator in the radiographic department and in quality assurance. Today Danna is Quality Systems Administrator. Her favorite part of her job is working with the good people. Danna’s husband, Wayne, also works for ESCO in the Lab. In her free time Danna enjoys hunting and sleeping.

30

Ken LutzEP Portland

Ken was born in Portland, OR. He graduated from Benson Technical High School, served in the U.S. Army and worked in the automotive business before joining ESCO EP Portland in 1963. Ken started as a grinder and has spent the last 24 years working in the Maintenance department (main plant and plant 3). Ken has also attended Portland Community and Clackamas Community Colleges. Ken believes his department “keeps the wheels of industry moving.” Pete Betich, Ken’s cousin, also works at ESCO Plant 3 as a Maintenance team leader. In his free time Ken enjoys golf, motorcycle cruising and used to be active in football and softball. He also volunteers with the Portland Rescue Mission during the holidays. Ken has one son (Sean) and lives in Portland, OR.

25

Gene HueyCorporate

Gene joined ESCO in December of 1970. Before joining ESCO, Gene received his undergraduate degree in Business Administration and Accounting from Oregon State University. He had held several positions over the last 35 years with responsibility in the following areas: fi nancial accounting, taxes, administration services, information systems, treasury and fi nancial analysis and planning. In 1984 Gene became Chief Financial Offi cer (CFO), a role that provides key leadership and support in corporate matters including acquisitions, joint ventures, new ventures and strategic planning. Gene and his wife, Barbara, live in NW Portland. They have one adult daughter (Cheryl) and two grandchildren (Emerson and Audrey).

35 Herbert RichardsonEP Newton

Herbert was born in Decateur, MS. He graduated from Newton High School, served in the U.S. National Guard and worked for the Newton Foam Rubber Plant before joining ESCO EP Newton in September of 1970. Herbert started as a welder and has also built buckets. In his free time Herbert enjoys hunting and fi shing. He and his wife, Dianne, live in Decateur, MS. They have two sons (Ken and Tim).

35

Clinton GallaspyEP Portland

Clinton was born in Newton, MS. He graduated from Boiler High School and worked for a furniture plant before joining ESCO EP Newton in December of 1980. Clinton started as a fl ogger, has worked as a bench grinder and currently works as a fi t grinder. In his free time Clinton enjoys fi shing. He and his wife, Minnie, live in Decateur, MS. They have four adult children (Fay, David and Becky) and fi ve grandchildren.

25

ESCO SERVICE ANNIVERSARIES 23

ESCO CORPORATION2141 NW 25th AvenuePortland, Oregon 97210-2578United States of America

PRESORTED STANDARD

US POSTAGE

PAID

Portland, Oregon

Permit No. 382

The Angel of the North sculpture in Gateshead, England, is an eye-catching artwork that stands 65 feet high with a wingspan of 175 feet. It was constructed of 200 metric tons of weather-resistant steel, and is anchored by concrete piles sunk 60 feet into the rock below. Situated on a hillside beside the busy A1 motorway, the Angel is located about 45 miles northwest of ESCO’s plant in Guisborough, North Yorkshire. Photo by John Howard.

EDGE - ESCO CorporationPat Fonner, Chris Grald, David Hamilton, Perry Harvey, Chuck Hanson, Frank &...

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