L’essentiel30

Zinc 65.39

Corbec Newsletter Spring edition 2019Volume 3

Corbec’s finance department has a paramount duty towards the company and to all if it’s clientele. Our industry is one where a small change in costs can have a tsunami effect on margins. It is essential for Corbec to partner with its entire customer base in order to contribute in their process of ensuring economic success. The way Corbec’s finance department tries to do this is by working to maintain the cost of zinc as low as possible.

Zinc is a commodity which is utilized by a wide variety of sectors such as the automobile, construction, lighting, machinery, battery and health industries, to name a few. It is essential to everyday life. In our case, it is essential in the galvanization process since zinc is THE most significant element of this process.

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A word from our editor

Tania LacelleExecutive Assistant

Dear readers, For more than fifty years, Corbec has always been focused on integrating the improvement of its customer service into our commercial and marketing strategies. Today, in 2019, we firmly believe that this attention to our customers will have, among other things, earned us the sustainability coveted by most organizations. It goes without saying that each of our departments has had to work together to achieve this goal, and continuously strive to improve on meeting our customers’ requirements. So, the question is, how do we continue to manage consolidating our commitment to customer service through our various departments? We hope that through the articles in this edition, you will be able to see that Corbec’s commitment to customer service is based above all on the fostering of better human relations.Enjoy your reading!

All our news onlinewww.corbecgalv.com/lessentiel

A word from our President

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Dear friends and colleagues, Corbec is now entering a new phase in its history. Over the last 20 years, we have developed the galvanizing market in Quebec in a major way.

Customer service drives cost management strategy

Accounting

Customer service drives cost managementstrategy

Human Resources

Recognition – Years of service

Sales

Building CustomerConfidence

Quality Assurance

How to strengthen the galvanic adhesion on cutting areas?

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In just the last 10 years we have tripled our market. A very notable accomplishment!

Our challenge now is to consolidate everything, which is why we have already started with the implementation of new processes, improvement programs and a Lean approach to our operations.

In 2019, one of our major goals is to maintain our volume while providing seamless service and quality product to our customers. I recently met a customer who mentioned that their philosophy was ‘’ easy to do business with ‘’! While reflecting on that, I asked myself the question: what do our customers expect from galvanizing and more importantly from Corbec?

Just as we discussed in one of our previous issues, Corbec has always stood out for its ability to meet the unique demands of our customers. In today’s markets, customers also want suppliers to become business partners. A business partner is becoming almost an extension of our client, so the most important aspect becomes facilitating doing business together! I believe that we must now stand out with this so-called easy approach, I want our customers to say that it is easy doing business with Corbec!

A word from our President

Shop Talk

Godfroy St-PierrePresident

As part of our continuous improvement process, every year we look back at the performance of each plant to evaluate where and how we can improve our service to our customers. We face the same challenges in each plant every year: health & safety, service, quality, and productivity & costs. Although 2018 was a relatively good year for Corbec, the level of quality and service in our Montreal plant did not meet Corbec’s standards. Getting the service and quality levels back to where we expect them to be, became priority number one for the Operations group in 2019.

The plan was to put together a team that would work directly with the plant manager and his staff to come up with both short-term and long-term solutions to our service and quality issues.

An in-depth analysis of the root causes of our service failures was completed. This allowed all the stakeholders to work on developing and implementing both short- and long-term solutions that would re-establish our service and quality levels. The first step was we set up a weekly quality/service meeting at the end of each week to review problematic areas from the previous week as well as any upcoming potential problematic issues. This allows our plant manager and supervisors the opportunity to better plan manpower allocation as well as more stringent quality assurance protocols.

The second initiative was to revamp our training programs. The employees on the shop floor were empowered to contribute to the rewriting of several daily procedures to improve training.

The third initiative was to review of the equipment and tools that were used in the process to determine if improvements and updates were necessary. This is currently an ongoing evaluation.

The above are just a few examples of the quick action taken by the operations group to improve service up to the standards that we believe our customers have come to expect. While consistency is key to a strong operation, flexibility to make changes and adapt when faced with new challenges is just as important to customer service in today’s market. Our operations group prides itself on being able to respond to these challenges as we strive for improving our customer’s experience with Corbec.

Nick PapasExecutif Vice-President

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Customer service drives cost management strategy

Jessica Laurence Controller

The economic fundamentals of supply and demand affects every product, the demand for zinc across all the industries mentioned above, creates upwards pressure on the cost of zinc.

An additional source of upwards pressure on the cost of zinc is speculation investing by investors trading zinc metal based on speculations over future zinc prices. In general, global zinc consumption is stable. These waves where investor activity affects zinc pricing can be observed by correlating the global zinc supplies to the price of zinc on the LME (London Metal Exchange). As a direct consumer of this commodity, finding strategies to limit the impact of the volatility of price becomes the key element towards reaching our objective.

Despite the wide variety of zinc consumers in the world, there are few worldwide sources of zinc. Of these global payers, less than a handful will ship to customers located in the province of Quebec. Finding alternative sources to supply zinc adds to the challenge of keeping costs low.

Lastly, these global players deal in USD whereas Corbec’s customer base is predominantly Canadian dollar based, thereby making natural hedging

impossible. Presently, all the major Canadian banks’ USD/CAD exchange rate projections are a few points apart which indicates that the market is unpredictable. In a time where this currency is as volatile and impulsive as the wind, finding strategies to prevent financial disasters are key.

Finding this optimal strategy is no small task. Early in 2018, Corbec formed a new committee to develop and test different strategies to better control costs and consequently achieve price stability which is vital for customers. This team analyses and uses different hedging tools as a reaction to what is observed in the economy. There is no magical solution; since both zinc and the USD are extremely sensitive to economic and political changes; it is impossible to obtain 100% guarantees over prices. However, this crew is constantly watching the markets and reacting to it to accomplish its mission; that of participating in financial success for all Corbec’s partners.

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In April 2019, Corbec once again distinguished itself at the awards ceremony at the American Galvanizers Association Excellence Gala. The Excellence in Hot-Dip Galvanizing Awards seeks to recognize the special skill and efforts of galvanizers, fabricators, architects, engineers, contractors, and all other parties as they complete projects that will remain durable, beautiful, and maintenance-free for generations to come.

Collaborators on the Project:Engineers: Genivar, Cima et DessauFabricator: Construction Proco IncOwner: Ministère des Transports du Québec

Collaborators on the Project:Architect: Morphosis ArchitectsFabricator: Constructions Beauce-AtlasOwner: Barr & Barr

New Gouin Bridge

Cornell Tech Bloomberg Center

2019 Excellence Awards

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IKEAQuebec, Quebec

Throughout the year, we galvanized several unique projects in our plants. We are proud to present some of our highlights.

Sustainable desalination buoySherbrooke, Quebec

Carleton University Exhaust TowerOttawa, Canada

Achievements for 2019

The 14th IKEA store in Canada (out of more than 350 in the world), is the largest in the Quebec City region at 340 000 square feet. Based in Sweden, IKEA is very familiar with winter. Corrosion due to harsh northern climates and de-icing chemicals is a concern that is taken seriously by the leaders of this company. Environmental sustainability is another public image that the retail giant takes seriously. Hot-dip galvanizing offers a durable and natural zinc coating which perfectly addresses these concerns. With the construction of dozens of stores each year, the growing presence of hot-dip galvanizing at IKEA bodes well for the market, as well as for an international exhibition of the winning methods of hot-dip galvanizing.

Galvanized at our plant in Princeville, these buoys were designed by Oneka Technologies, which offers an all-in-one desalination system where all that is needed to produce potable water from seawater is included in offshore buoys. Fossil fuel power plants or generators are commonly used to provide the energy needed for the seawater desalination process. Oneka Technologies uses the power of the waves as its sole source of energy, making the process much more sustainable. At first glance, the client intended to paint these buoys. However, during the development of the project, they realized that the paint would flake quickly in the ocean making this process incompatible with their original intentions. The hot-dip galvanizing process provided the benefits of sustainability and environmentally friendly, especially in salty weather such as the sea. Oneka Technologies was left with no doubt that this option was the right one for their project.

One of the older buildings that makes up this bustling university of almost 30,000 students is the Steacie Chemistry Building. It’s inside renovation and the construction of a much taller adjoining building meant the end of the line for the myriad of exhaust systems vents cluttering its roof. New building codes also called for higher exhaust stacks than the old roof could safely support. Hence a standalone adjacent tower to artfully conceal the stacks was specified by the building designers. The high strength and low cost of structural steel was an ideal fit for the demanding physical specifications of the tower. Hot-Dip Galvanizing was a natural partner especially with harsh Canadian winter conditions and corrosive lab emissions flowing in those ducts. Now complete and in service with bright red decorative panels the tower-chimney makes a striking appearance on this busy campus while insuring what will likely be nearly a century of corrosion-free service.

Know how to stand outListening is a quality that is unique to many sales representatives, so it was imperative that we had to differentiate ourselves in another way. Today we live in an instant world where we expect to have everything that day. Our daily availability as sales representatives is therefore put to the test and is essential for our customers. One of the great qualities that our customers appreciate is the speed with which we respond, whether in relation to technical information or price quotation requests. Our way of working in an applied and fast way while remaining accessible to our customers is what sets us apart from our competition.

Another aspect of our work that is important to us in this world of frenzy is the human touch with our customers. Indeed, as sales representatives, we regularly take the road to visit our customers whether it is for technical assistance, to visit building sites or simply as a courtesy. At Corbec, we firmly believe that our availability and rapid response to our customers solidifies our business relationship.

Our company is constantly looking for active measures to improve the loyalty and satisfaction of our customers. As sales representatives, we have a great role to play in achieving this goal and serving our diversified and increasingly challenging deadlines.

In conclusion, our role as sales representative at Corbec is to create a strong relationship based on trust. We place greater importance on good communication and the need to be present throughout the project. From submission to the complete conclusion of a project we will act as a resource person between the client and the various departments of our company (reception, production, shipping and the department of quality and administration). Hot dip galvanizing is similar from one galvanizer to another. What makes Corbec stand out and is a leader in this field is the team and resources that are put forward to meet the customer.

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Building Customer Confidence Eric Moreau & Karl Meessen Sales Representatives

Since 1965, our company was founded on being committed to providing outstanding service to our customers. This year, one of Corbec’s most important goals is to become a company that is easy to do business with. For a service company like ours, to achieve sustained growth and lasting success, building positive trust with our customers is essential. Hearing othersAs the first point of contact that our customers will have with Corbec, our role as sales representatives is to listen to the needs of our customers. Without a doubt, listening to customer requirements is key to fostering strong partnerships. Being interested in our clients’ projects, allowing them to express their comments as well as their concerns and to make room for their expectations are three essential elements for the realization and the success of their project. It is therefore important to understand the customer’s concerns and to adapt so that we can provide the best possible service.

In addition, one of the expectations that our clients may have is to receive unambiguous recommendations and answers. In order to meet this demand and in order to solidify this long-term relationship, it goes without saying that honesty and good communication are essential qualities that we must have.

So what can be done to prevent thin coatings and flaking of thermally cut areas?

Galvanization problems caused by ZAT can be mitigated by ensuring proper surface preparation of the affected areas. Either a SSPC-SP6 type of treatment (shot blasting) or grinding. It is possible to round the cut edges up to 1/16 of an inch. These methods provide better adhesion and increase galvanic growth in targeted areas. Otherwise, if the thermally cut edges scale after delivery, the areas can be repaired in accordance with ASTM A123 and ASTM A780 norms.

Our commitment to our customers is to identify and properly treat the affected areas to ensure that they receive quality galvanized material without flaking or thin coating.

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How to strengthen the galvanic adhesion on cutting areas?

Elmer ZavalaQuality Coordinator

The steel that arrives at the galvanizer has generally undergone several transformations, ranging from cutting to hot bending to drilling. The different cutting methods used may have the effect of modifying the adhesion and development of zinc on certain steel. Some plates are sheared by hydraulic presses if the material is not critical or if the steel is of low strength. Others can be thermally cut by flame, plasma or laser. These thermal cutting techniques induce a significant amount of energy in the steel and can alter the microstructure and properties of the steel in the thermally affected zone (ZAT).

Flame cuttingFlame cutting (oxycutting) is a widely used, inexpensive and versatile method of cutting steel. For oxycut steel, the size of the heat affected area may vary depending on the steel alloy and the thickness.

Laser cuttingBy laser cutting, laser optics and CNC are used to direct a high-power laser beam that heats the steel. Laser cutting is likely to provide the cleanest cut with the narrowest dimensional tolerances and cause the least metallurgical change on the face of the cut.

Plasma cuttingPlasma cutting is suitable for any steel, regardless of the preparation of the surface (rusty, painted, etc.). Plasma cutting offers a cleaner cut, better dimensional control and less metallurgical cutting-edge changes than flame cutting, but less than laser cutting.

Each of these thermal cutting techniques results in an increase in the hardness of the steel near the cut edge, modifying the diffusion properties of the steel in the ZAT and sometimes making it difficult to form a galvanized coating on the cut edge. This problem is further complicated when the base steel has a very reactive silicon and / or phosphorus content in the galvanizing basin, which sometimes leads to the development of a thin or thick coating with reduced adhesion. A thick coating that does not adhere well to a thermally cut edge can result in flaking of the edges during handling.

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Recognition – Years of service

Promotions to permanent status positions between December 2018 and April 2019

20 years 10 years30 years 5 years

We would like to acknowledge and thank all our employees for their contribution to Corbec’s success. We hope that you will continue to be satisfied in your work environment.

Marco Tanguay, Mtl plant Ali Riani, Mtl plantEvariste Ngako, Mtl plantMarc Cléroux, Mtl plantSébastien Denechaud, Qc plantKeven Langlois, Qc plantSerge Talbot, Qc plantÉric Michaud, Head office

Denis Mailloux, Qc plantMarc Beauchamp, Qc plantJean-René Boudreau, Qc plantDany Jacques, Qc plantGilles Drapeau, Qc plantAndré Poirier, Qc plantJean-Marie Cloutier, Qc plantFrançois Grondine, Qc plantAlain Laroche, Qc plant

Internal promotion of employees is an objective that Corbec strives for as a means of rewarding strong performance and motivating employees with advancement opportunities within the organization. There are many career opportunities at Corbec and we are committed to investing in our employees that show interest and potential for growth. We continue to work on developing and offering training that is adapted to our personnel to ensure that our people grow with Corbec. Here are the nominations (promotions) for the months leading up to end of April 2019 for the entire group. We wish you good luck in your new challenges.

After 12 years of loyal service, it’s time for us to say goodbye to Mr. Leonidas Valdivia. We take this opportunity to wish him all the best for his well-deserved retirement. It was a real pleasure to have you as part of our team. On behalf of the entire Corbec team, thank you for your great dedication!

Eric Moreau, Qc plant

Interior ForkliftOperators

· Alexandre Couture

· Patrick Durand

· Steve Royer

· Lionel Glynn

· Keven Vallerand

· Henrik Vaillancourt

· Denis Gadoury

· William Gosselin

· Jean-Nicholas Légaré

· Najim Uddin

Trans Pallet Operators

· Charles-Olivier Lamontagne

· Jocelyn Talbot

· Roberto Baro Martinez

· Mathieu Berger

· Réjean Petitclerc

· Carl Mathieu

Management Position

· Yann Lacasse, Directeur d’usine

Team Leaders

· Patrick Daudelin

· Randy Gabriel Marin Auceda

Over Head Crane Operators

· Patrice Ross

· Martin Moffet

Maintenance Technician

· Stéphane Dubé

Sales Representative

· Karyn Lavigne

Exterior ForkliftOperators

· Maxime Robinette Cloutier

· Michael Niddrie

· Evariste Ngako

Interior ForkliftOperators

· Yassine Riani

· Thierry Tchuenkam Fopossi

· Rony Adalberto Sorto

· Ricardo Abraham

· Martin Fecteau Boucher

Management Position

· Ned Popovic, Directeur d’usine

Quebec plant Montreal plant Princeville plant