BIRN Update Vol. 1

The world is changing faster than ever – During Spring and Summer time we have

all been witnesses to a never-ending increase in market demands - more than

ever seen. Now, unfortunately, we are all hostages in a glide slope with

cancellation of orders all over the World.

Nevertheless, BIRN is still here and ready to support your business. The moment

of choice is yours – it is time to prepare for the future and bring down your cost.

At BIRN we are ready with highly skilled and motivated engineers and sales force

to support your business.

We are constantly developing the business concept and I am pleased to present

some of the projects and goals Birn Group have achieved

recently both national and internationally.

BIRN update – what is going on?

Rudi Pedersen, Commercial Director Vald. Birn A/S

“Please allow me to

present the new

media - BIRN Update

- Enjoy reading…”

The BIRN Group – Who What & Where?

With a total of 1,000 employees Vald. Birn A/S is one of Northern Europe’s largest

foundries.

The core competences in the Birn Group embrace everything from liquid iron to

development, casting, machining, surface treatment and assembly.

We are an International group represented with sales offices near our customers.

We have sales teams who are specialized to comply with our customer’s needs

and demands.

In this first edition, BIRN Update will contain some information about the

Birn Group regarding China Metal Birn, Vald. Birn GmbH and Vald. Birn A/S.

Vald. Birn Holding A/S Holstebro Denmark Tel. +45 99 10 20 30

Vald. Birn A/S Holstebro Denmark Tel. +45 99 10 20 30

Vald. Birn GmbH Mülheim/Ruhr Germany Tel. +49 20 89 99 490

A/S Tasso Odense Denmark Tel. +45 66 13 13 13

Kockums Maskin AB Kallinge Sweden Tel. +46 45 72 10 70

Uldalls Jernstøberi A/S Vejen Denmark Tel. +45 75 36 09 22

CMB China Metal Birn Suzhou China Tel. +86 512 68 07 79 00

BIRN expands and centralises abroad

- Times have changed and that requires new ways of thinking. We have to

innovate in every business area and we have to look at long-term solutions

that will ensure growth in the future -

Since 2002 BIRN has cooperated with CMI – China Metal International – through a Joint

Venture and in 2006/2007 the ultimate step was taken and the factory CMB – China Metal

Birn - was established. 49% of the company is owned by BIRN and 51% is owned by CMI.

CMB is a manufacturing company that procures castings from CMS – a subsidiary of CMI.

The castings will be machined/assembled in CMB. Surface treatment can be carried out by

a subcontractor.

The first product manufactured at CMB was a VTP V-belt pulley. So far BIRN has

transferred 131 of 335 possible VTP models. These products will only be manufactured in

China from now on. The large capacity and low-cost production set-up in China allows

perfect conditions for these products.

BIRN’s quality and know-how, combined with one of China’s largest foundry groups is not

only to the benefit of the two companies, but all our customers will get benefit from the new

flexible possibilities.

So far the products manufactured in China have been transported to Holstebro but from

January 2009 the storage of all V-belt pulleys and flexible couplings will be centralised at

Vald. Birn GmbH in Mülheim, Germany.

This decision was made to improve and develop the support to our distributors and OEM

customers so that they handle every enquiry and shipment of these products.

CMB employee operating a vertical CNC machining centre at China Metal Birn

Vald. Birn GmbH sales office and the storage of V-belt pulleys and flexible couplings

2003 – The project proceeded until spring where BIRN developed several prototypes

continuously. At the same time the project was abandoned because of difficulties with the

nature of cast iron. In October BT confirmed that the project would continue. The evaluations

proceeded and it turned out that the best solution for BT was the one that was the most

inflexible for BIRN. This gave the fettling shop huge challenges. Fettling Shop Manager Kurt

Olsen and Production Technician John Hartmeyer started the project and the sparring

between these two and BT ensured the continuation of the project.

2004 – One year passed before BT completed the project and gave the final “GO”.

2005 – BT indicated that their machining cost could be held considerably lower than BIRN

could. According to this an investment was made at BT specifically for the production facility

that could process the material.

2006 – The project started up, with first series production at BT in August. The first contract

ran until January 1st 2008. The cooperation between the safety steward, the fettling shop

and the maintenance department was intensified with the result that BIRN in conjunction

with BT involved a third supplier into the project. There was cooperation regarding the

development and design of the cores between Quality Manager Ole Grening and Core

Shop Managers Leif Paulsen and Johnny Jakobsen in this phase.

BT Products AB elects BIRN as the supplier of the year

- Close cooperation between the customer and the supplier during the

entire development process leads to a satisfying final result and a mutual

expectation for the customer and the supplier to commit to each other -

It was with great excitement that BIRN at the first given opportunity was awarded with the

“supplier of the year” by Division Hand Truck, BT Products AB – a part of Toyota Material

Handling. In the following article we will tell a short story about the corporation from start

until now.

2000 – As part of at tour around Europe to visit prospective suppliers BT came to BIRN in

February with enquiries on a potential project according to the development of a hydraulic

pump unit in cast iron. At that time BT used a welded construction in their Hand Truck.

Account Manager Jens Ravn and PTD Manager Dan R. Thomsen assisted in the

competence clarification of the project. The conclusion from the idea generation plus

forecast/prints from BT was, that BIRN could manage the project. In July BIRN was chosen

as the future supplier.

In August BIRN went to Mjölby and this meeting was the start of the development project

between BT and BIRN.

To be continued next page…

The project development process between the internal departments at BIRN and BT has

been a vital success factor due to the fact that the project from day one has been optimised

so it has been possible to manufacture with “zero defects” and a harmonized process

between the two companies.

The success is completed as BIRN and BT decided to expand the cooperation to include

also Division Power Trucks of BT Products AB, beginning at the end of 2008.

Sandra Eriksson, Purchasing Manager, Jens Ravn, Account Manager, BIRN BT Products AB “The election is a huge compliment to “Every year we evaluate the best our employees. It is not just a small companies. From those we chose a group of people who has worked towards supplier who deserves an extra tribute.” this result.”

Awarding of diploma at BIRN Purchasing Manager from BT, Sandra Eriksson is presenting the prize to the team from BIRN.

Manager of Safety and Environment, Karen Nielsen “Our production is very energy-intensive, and consequently we must keep our focus on improvements and optimization.”

- We are all committed to reduce our consumption. Consequently it is the

responsibility of all companies to have their focus on comprehensive

environmental management -

BIRN has entered into a binding cooperation with the electricity supplier NOE to locate and

carry out energy-savings corresponding to the consumption in 100 households every year.

In cooperation with BIRN the assignment for the electricity supplier is to locate

energy-savings that will be profitable to carry out. They will examine the buildings, the

technical facilities and the procedures to uncover the potential energy-savings.

Subsequently NOE and BIRN prepares an ongoing list with the projects which BIRN

continuously priorities and a realisation of the recommendation will be made subsequently.

The goal is that company processes are carried out so that the environment and the work

environment are loaded the least possible. We will aim at environmental desirable materials

and processes under consideration of technical, financial and quality aspects.

The company continually invests in cleaner technology concerning reduction of energy

consumption, noise and waste. Dust emissions have been reduced by very efficient bag

filter systems connected with 40-50 metre high chimneys. Replacing and enclosing of fans

and plants has reduced the noise level. Installing a wash system to remove the main part of

the amines from the atmospheric emissions has cut the odour pollution.

The raw material used in the production is steel scrap. The fused steel scrap is converted to

castings by using moulding sand. 99% of the moulding sand is recycled in the production.

The remaining part are used as materials for building foundations.

BIRN strives for a green environment

CONTACT US AND LET US GIVE YOU ALL THE DETAILS

If you want to know more about BIRN and your opportunities for development and

production of processed as well as unprocessed moulded products please contact

our sales department. Furthermore you can find more information on

www.birn.com

This was our first edition of BIRN update and we hope we have been able to

communicate the most relevant topics in a forum where it is allowed to give

feedback if any questions should emerge.

Linda Hejlesen (Editor)

Marketing Manager

Vald. Birn A/S

lhc@birn.dk