AUGUST 1, 2011 | Q3Ascend News

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TIM S's

PICTURE

TIM S's PROFILE

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Message from the Vice President of ISC

Core Values Defined – Engagement

During our Year 2 anniversary

celebrations, Fred and Tim spoke

about the great progress we’ve

made over the first two years

of Ascend, and about how much

more we have to accomplish

as we continue to grow our

business. There are opportunities

to be better all across the

organization and in particular,

in the areas of safety, reliability,

quality, and capacity. We will

make progress by leveraging

those opportunities, and as

we do, the most powerful thing we can do as individuals and

teams is engage. The power of 3000 employees and resident

contractors engaged in generating ideas, developing project

plans, and execution, will result in accomplishments far beyond

what we imagine today. • In keeping with our pursuit of excel-

lence, and the obvious tie to our company name,

we use Ascend to Excellence (A2E) as our brand for employee

engagement in creating a successful company. I want to take this

opportunity to talk a bit more about A2E – what it is, its impor-

tance to the success of Ascend, and how A2E is becoming a part

of our organization DNA.

What is A2E?

A2E is 3000 employees and resident contractors engaged

in the work, owning the results, and driving continuous

improvement in every aspect of our business. • Engagement

and ownership of results is a key behavior we embrace and

expect of our teammates and ourselves. It is an enduring

view that defines our value system, our personnel evaluation

processes, and our promotion and hiring decisions.

Message from the VP of ISC

I believe in Zero!

SDI SSP Capacity Increase

Employee Engagement Key Component

of Pensacola Safety Effort

Storm Impact on Decatur

Ascend Cares

Site Focus: What is it about Decatur?

Decatur Takes the Gloves off, Saves $22,000

Celebrating 50 years

Decatur pictures

Business Overview

Have you attended the A2E 2011 learning course yet?

IT Transition

Pensacola FRC Commitee Works to Beat the Heat

Congratulations

Decatur Reduces River Water Pump Costs

Year 2 Celebration pictures

APEX 2011

INSIDE COVER–1

2

3

4–5

6–7

8–9

10

ESSH

ESSH

ESSH

Table of Contents

Ascend News Editorial Advisory Board wants your thoughts!

Have ideas to share?

Want to become a member of Editorial Advisory Board?

We would love to hear from you! If you are interested in

contributing to Ascend News please contact us at

ascendnews@ascendmaterials.com.

SafetyESSH

Customer

ProductivityReliability

People

Do you believe in ZERO? Do you believe you will be injured in the second half of

the year? Of course not! Then you believe in ZERO! No one expects to be injured

at home or work, but the real question is, “What are you doing to make that

a reality for yourself?” • As we begin the 3rd quarter, there is no better time

to answer that question of personal accountability. With the onset of summer,

comes the heat, increased work activity at home, overhauls and turnarounds

at work, the distractions of vacations, kids at home, and longer days. With

no change in behavior, the probability of your risk of injury increases.

So what will you do to be ZERO? • Safety is our most important focus area

at Ascend – we want everyone to return to their families safely at the end of the workday. We continue to

improve safety processes so they are practical and easy to follow, and to provide safety professionals to address the tough questions and

issues in the workplace. We will continue to look for opportunities to make Ascend a safer place to work. • Enjoy the summer and focus on

being safe at work, at home, and at play. We will provide as safe a work environment as possible and the rest is up to you. Believe in ZERO!

I Believe in ZERO! by Dale Borths

ZEROINJURIES

1

Dale Borths is the Vice President of Environmental, Safety, Security, and Health.

ESSH

A couple of things it is NOT:

- A program of the month. Engagement and ownership of results

is a key behavior trait we embrace and expect of our teammates

and ourselves. Engagement and ownership of results is an enduring

view that permeates our organizational value system, our personnel

evaluation processes, and our promotional and hiring decisions.

Engagement and ownership is the foundation of our expected

organizational behaviors.

- Only a set of Continuous Improvement (CI) tools. As a learning

organization, we will continue to teach CI tools such as DMAIC,

brainstorming, design of experiments, etc., to increase the

effectiveness of our individual engagement in the growth and

success of the organization. In effect, learning and using

the tools are a means to an end, not the end itself.

A2E Engagement is a two-way street.

To be successful, each of us has to commit to A2E as the way

we work each day. The power of 3000 engaged in A2E will make

far more progress than just a few individuals. We don’t have to look

further than the recent NBA finals to see the truth in this. The Dallas

Mavericks won the title through the cooperative efforts of the entire

roster --when it mattered most, each player engaged in their role

to the best of their ability, while the Miami Heat attempted to

carry the title through the extraordinary efforts of three superstars.

If we are actively engaged in improving our work environment,

it will be a place that represents our values, a place we can be

proud of, and one that energizes us. • Ascend is supporting your

A2E engagement to ensure success. That support started early by

providing learning opportunities around DMAIC tools to help teams

get started. Last year, Ascend supported the A2E momentum with

the inaugural APEX event to recognize individuals and teams that

demonstrated leadership, engagement, and ownership of A2E. •

Now, A2E 2011 courses which provide more tools to support active

and future teams are being taught across the company. Much of

the direction for these courses came from the APEX 2010 Delegates.

APEX 2011 is just around the corner, and this year’s delegates will

provide input and direction for A2E 2012 courses. • Ascend is

supporting A2E in other ways – each site has an A2E “core team”

that will act as a resource. The core teams and the Front Line

Supervisors are engaged in learning focused on leading great

teams. The Quality & Continuous Improvement (QCI) team is

staffed and is providing technical support to our teams. After all,

the folks working in a specific area are the best subject matter

experts. No one is more qualified to make improvements in

our daily work than each one of us. • Looking across Ascend

you can see more and more engagement. Teams, work-groups,

and sites are making a difference by tackling tougher issues,

finishing faster, and in some cases setting site/company policy

through their efforts. I’m personally looking forward to

APEX 2011 to see first hand some of the top efforts of

the past year. After all, the folks working in a specific

area are the best subject matter experts for

that area. No one is more qualified to make

improvements in OUR daily work than

each one of us.

Barry Penney

Employee Engagement Key Component of Pensacola Safety EffortThere are three key employee safety teams in place at the Pensacola site:

Site Safety Steering Committee (SSSC) / Nylon Plant Safety Team / Area I Safety Steering Team.

All three of these teams, composed almost entirely of hourly employees are focused

on improving safety at the site. The SSSC which includes members from each area

of the site targets activities that foster employee involvement such as hazard recognition

and resolution, focused safety audits, Voluntary Protection Program certification, and

poster contests. Members are also working on updating area safety orientation training

videos. • The Nylon Plant Safety Team includes maintenance and operations employees

who are committed to improving their area’s safety. Their activities include those that

address area employee concerns such as working safely in the heat, guarding equipment,

and work practices aimed at reducing risks associated with breaks in processes. •

The Area I Safety Steering Team’s mission is to empower each other to create a safer

and more productive working environment. This team has spent time ensuring that

its members are aligned in its mission and goals. One key accomplishment was to

set up a Cool Zone to provide some heat relief to workers involved in shutdown

activities at the Halcon Unit. This Zone included a tent with chairs, tables, fans,

and drinks. Feedback from the maintenance group was very positive. While each

team has different membership and a unique approach, they all have one common

goal – to create an injury free workplace. Working together, there is no doubt

they will accomplish this goal at the Pensacola site.

ESSH

 

  Cool Zone

2

by Chuck Clarke

SDI SSP Capacity Increase by Raymond Fogle

The Greenwood site recently expanded their Industrial

Fiber (IF) production on their Toray-licensed Solid Stating

Process (SSP). Originally supplied at a 30 tonnes per day

capacity, the process now has been demonstrated at

>50 tonnes per day using innovative technology and

engineering modifications with minimal capital investment.

To achieve the capacity, a Project Team, with members

from Greenwood and Pensacola, developed an EVOP

plan. Although initial results were favorable, high

temperature upset (exotherm) events began plaguing

operations, limiting production below target. Toray

could not provide technical assistance for these types

of process modifications. • The Project Team developed

parallel paths utilizing experimentation and industry

consultants to develop the fundamental process

understanding necessary to prevent the exotherm

events. With diligence, discoveries were made allowing

process optimization to prevent the upsets. To date,

no new exotherm events have been experienced and

the plant has achieved >50 tonnes per day capacity.

The use of good planning, outside resources, technology

development, and team work has achieved a 67%

capacity increase with minimal cost. Great job by

the Greenwood site and the SSP team!

N2degC

waterppm

unused

40ºC

25ºC

Crystallizer150ºC

SSP Tower158–166ºC

(rate dependent)

unused

heating loop

PreviouslyDew Point

(degC)

cooling loop

Lamson Blowers

DesiccantDryers

Buffer Hopper

65ºC

steam

Cool

ing

Wat

er J

acke

ted

Pip

e

0.4 wt % H20

Wet Chip Silo

MoistureRegulating

SiloMRS

Temp/MoistureControl

Loop

Dry Chip Hoppers

0 % H20

0.1 wt % H20

0 % H20

110ºCScreener

Raymond Fogle is a Lead Process Engineer in Pensacola.

Chuck Clarke is the ESSH Lead in Pensacola.

The Ascend Cares Foundation was set up to aid the employees and resident contractors which comprise

the Ascend Family, to care for each other in times of hardship. Our initial solicitation for donations was

in support of the members of the Ascend Family affected by the tornadoes that struck the Decatur area

in late April. Your generous donations have helped a number of Ascend Families in Decatur meet their

immediate needs following devastating losses. • While there are many local, state, and national agencies

that provide disaster relief, the intent of the Ascend Cares Foundation is to provide immediate and

personal relief to the Ascend Family, from fellow workers. • We would like to remind our colleagues in Decatur that we are still accepting

applications for relief. We would also like to remind everyone that we continue to accept donations to Ascend Cares. • If you have

questions regarding the Ascend Cares Foundation, please email ascendcares@ascendmaterials.com.

Storm Impact on Decatur by Al Faulkner & Monica Jackson

On April 27, 2011, one of the largest tornado outbreaks in American

history occurred across the southeastern United States. An EF5

tornado swept through several counties in Alabama, terrorizing

families and destroying everything in its path. About 50 minutes

and 55 miles later, it was gone, however, the aftermath remains.

• Although the tornado passed within two miles of the plant,

the Ascend Performance Materials Decatur site had minimal

damage. While the plant was left completely without power,

only minor damage to the exterior of the cooling towers and

several roof leaks were reported. Ascend was very fortunate.

More important, good fortune continued as we confirmed there

were no employee injuries or fatalities. However, thoughts quickly

turned to the Ascend employees and contractors impacted by

their own loss of property, or an injured or deceased relative.

Immediately after the storm, the site leadership team was not

only on the ground working through their restart strategy,

but also reaching out to impacted employees. With rain in

the immediate forecast, teams set out to provide tarps to

employees who sustained roof damage during the storm.

• The storm provided the right opportunity to establish the

Ascend Cares Foundation as a way of allowing employees

to help each other. Funds were solicited and through the

generous donations of Ascend employees, resident contractors,

and suppliers, several families impacted by the storm have

received relief funds. The impact of improving a difficult

situation has been tremendous. • Lack of electrical power

was the site’s biggest issue in preparation for restart. This significantly

complicates the restart effort and of course, no restart can begin

without resumption of power. Emergency power was restored

one week after the storm. Restart power returned two weeks after

the storm and was under close oversight from TVA. • At this time,

the plant is completing a project pulled forward to maximize

production for the remainder of 2011. After the project work is

completed in early July, the plant will return to full operational rates.

The Decatur site appreciates the thoughts, prayers, and the outpouring

of support to the site and to our employees through Ascend Cares.

EMPLOYEE IMPACTInjuries or fatalities: 0 employeesLoss of property, injured, or deceased relative: 23 employees (Ascend and Contractor) Significant damage or complete loss of their home:10 employees

PLANT DAMAGE• Minimal damage to exterior of cooling towers• Roof Leaks in several buildings• Very fortunate…significant damage to two plants three miles west of Ascend facility

3

EF5 passed within 2 miles of the plant

Al Faulkner is the Decatur plant manager. Monica Jackson is ISC communications manager.

he said. • Perhaps it helps to grow up in the City of Decatur, today the busiest port of the Tennessee River and known as “The River City.” More than 55,000 people call this north Alabama city home, making Decatur the state’s eighth largest city. • Decatur, too, had to earn its present-day success. It endured several encounters during the Civil War. When all but four building were burned during the 1864 “Battle of Decatur,” it was referred to as A Tough Nut to Crack. Later, Decatur’s steady economic growth as a cargo and passenger port was overshadowed by the space race fueled growth of nearby Huntsville. Today, Decatur’s economy is based on manufacturing industries. • Ascend Performance Materials and its committed Decatur employees play an important role in the life and economy of the community.

Site Focus: What is it about Decatur?Employee commitment to company & community

Editor’s Note This is the first in a series of articles profiling our plants. Look for upcoming issues of Ascend News. Yours could be next!

Since mid-2009, business volume at Ascend’s plant in Decatur, Alabama, has been thriving. How come? • Sound management – encouraging employees to overcome barriers and providing the tools to do so – has certainly been a factor. Effective leadership provides the big picture, and the picture’s focus is the character of the employees who work in Decatur. • Decatur’s 235 employees, 110 contractors and the entire Decatur community for that matter is a close-knit bunch. They develop strong bonds of friendship, camaraderie, and have a resolute belief that they will always triumph over adversity. Plant Manager Al Faulkner is proud of the Decatur employees' commitment to work through the difficult times. Downsizing, business losses, and layoffs marked the last decade. “They are now able to experience the improvement that their years of hard work led to,” Faulkner said. “They just don’t give up,” he added. • “Their commitment to safety improvements in productivity and quality is as solid as a piece of granite,” said Faulkner. “When these folks set out to accomplish something, that something gets accomplished, period.” • Faulkner said employees have strong bonds with friends, with their families and in their ties to the Decatur community. “They’re very active within the community and several are members of our city councils. Many are actively involved with area charitable organizations including United Way, and several are volunteer firemen and volunteer emergency medical technicians,”

Decatur Takes The Gloves Off, Saves $22,000Increasing efficiency by cutting unnecessary expenses go hand-in-hand with always seeking out ways to make things better, which is the essence of Ascend To Excellence. • Such opportunities are all around us, some right in hand. We just have to look. When a team of Ascend employees at the Decatur, Ala., facility looked, they uncovered annual savings of almost $22,000. • Did the team discover a high-tech solution that cut costs? No, they simply looked at their work with fresh eyes and, in a moment of creative insight, realized that by reviewing the types of gloves used for certain jobs and implementing a glove management system, they could improve selection criteria and use, increase hand safety and save a lot of money. • The Decatur glove team comprised Lisa Naccarato, ES&H Department; Maintenance lead Jamie Dozier; Darrell Eddleman, Laboratory; Davis Canady, of off-site contractor Mundy, Inc.; Ray Halbrooks, Area Operations; Joe Forton, Continuous Improvement Lead and Storeroom personnel Loyal Parker and Matt Kenum. • The team began by assessing current glove usage and inventories. In reports on glove use at Decatur and other Ascend sites. This enabled them to focus on the most predominately used gloves. By standardizing the types of gloves used for various applications and soliciting prices from several glove manufacturers, the team found gloves that were just as effective at less cost.

• The Decatur Plant employs 235 and has 110 contractors.• The plant serves internal customers at Greenwood and Pensacola. • Decatur produces H.M.D. (hexamethyldiamine) for external customers.• The plant manufactures three products: A.D.N. (adiponitrile, a key intermediate chemical in the production of Nylon 6,6), H.M.D. and coke, a form of carbon.• The facility is located on a 750-acre site along a peninsula bordered by the Tennessee River.• The property was purchased in 1952.• Chemstrand, headquartered at the site in 1952, would become Monsanto, then Solutia and now Ascend Performance Materials.• The Decatur Plant is one of four production-scale A.D.N. facilities in the world. (Two are in Texas, and one is in France.)

Decatur Plant Facts

4

Betty Qualls began job in 1961Reprinted in part from Decatur Daily, April 27, 2011 Betty Qualls has worked for Ascend and its predecessors for 50 years. “I always felt this was where I belonged,” said Qualls, who started working at the Decatur plant in 1961. “I enjoyed my work. You’ve got to enjoy your work to stay with it for 50 years.” • The goal of logistics – or “traffic,” as it was called when Qualls entered the department 35 years ago – is a steady routine of shipments to and from the plant. The reality of logistics is maneuvering from one crisis to the next, making sure the Decatur plant has the raw materials it needs and that downstream plants have the Decatur intermediates they need. • Qualls’ supervisor,Kim Roberts, is a 13-year employee. “She’s seen many different business situations and many different management styles,” Roberts said. “She’s very good at managing crisis situations when we’re trying to secure our raw materials or get our finished goods shipped out.” • Qualls often gets calls after hours and over the weekend, Roberts said. “She always responds with a positive attitude, regardless of the hour,” Roberts said. • “As a result of her long tenure, she has a lot of great relationships with our carriers, whether truck, rail or barge companies,” said Plant Manager Al Faulkner. “As a result, they are very responsive to us. Betty has worked very hard with them for a lot of years.” • She points out

her window, past a dogwood tree planted in her honor, to a plot of ground between Ascend and a neighboring plant. That, she explains with macabre humor, is supposed to be her burial plot. She scolded a contractor for infringing on the space when he expanded the parking lot. • Qualls has no immediate plans for retirement. “The people here are so much family to me that I don’t want to leave them,” Qualls said. “They all work together. It’s a great place.”

Celebrating 50 Years

5

Business Overview Plastics – Scott Rook, V.P.Our current sales outlook is slightly below our AOP target

due to the power outage at Decatur, AL. Additionally, we’ve

seen some market weakness globally in May-June-July; however,

at this time we’re expecting to see sales pick-up strongly in August.

The market weakness has primarily been in the compounder and

distribution segments. This may be related to the auto production

slowdown in NA due to the Japan earthquake supply problems.

Pricing and Contracts Update: We tried something new in 2010 in

the Plastics business…asking the majority of our customers to sign

long-term contracts with us. We’ve seen some spikes in propylene

prices through May this year, but so far I’m happy to say that ALL

of our contracts have held up and I believe our customers are

pleased that they have contracts with us. Our goal for 2012 will be

to increase our coverage of contracts and increase the number of

longer term contracts. • We are aware of only a few fairly minor

additions to global N66 intermediate and resin capacity in Japan,

Taiwan and China. Therefore, we think that global capacity utilization

rates will remain tight as we move into 2012. Please continue to

share any information you hear in the market about expansions or

changes in global capacity.

Major Success by the Market Segment teams in 2011: I thought I’d

take a minute to highlight just few of the major successes that our

market segment teams have accomplished so far this year. The list

is not complete and includes just some brief highlights.

Cable Ties: Launched SPC1/SPF1 – the next generation cable tie

material. Initiated work on Phase II of the next generation cable

tie material. Sales on track to grow >30% vs 2010.

Compounders: Major emphasis on improving and in some cases

establishing relationships with key customers globally. Initiated

work on several 2-3 year contracts and focusing on significant

growth in 2012.

Distribution: We have not been able to supply all of the needs

of our customers due to very strong demand in 1H of ’11 from

contract customers. With our CP-22-23 expansion, we should

have no problem supplying our distributors in 2H of ’11 and ‘12.

Auto: Major successes with Delphi China and Valeo Europe closed

in 1H of ’11. More projects with Delphi, Behr, and Huatong in 2H.

Consumer & Industrial: Began supplying Technoform and

Ensinger in 1H of ’11 for window thermal breaks. Sales on

track to grow >100% in ‘11.

Electrical & Electronics: Signed a new contract with

TE Connectivity.

Polymers & Fibers – Dick Prinstein, V.P.The Polymers and Fibers business finished Q2 somewhat short. De-

mand remains strong in all Polymer and Fiber segments, but

our ability to supply has been constrained by the production issues

in HMD. We honored all volume commitments to our contractual

customers in spite of the severe constraints. The demand outlook

remains strong and we expect it to continue to outstrip our ability

to supply. • For the Textile segment we began servicing a new

customer, Aquafil, located in Slovenia, who makes yarns for clothing

applications. We completed a new contract with TWD (one of our

largest customers who also make clothing applications) at increased

volume. • For Industrial we completed negotiations on a contract

with Hyosung to service their expanded plant located in Vietnam.

The Phase 2 Industrial Fibers startup has gone well and as a result,

we have begun servicing 2 new customers while increasing our vol-

umes with Kordsa. Thanks to the Greenwood team for their efforts.

• In Specialty Polymers we completed contracts with Textech, (who

make tennis ball felt) and Palmetto (who make specialty military and

industrial clothing applications), and have recently announced plant

expansion plans.

Chemicals – John Ferguson, V.P.Merchant market demand for Adipic Acid and HMD continues to

be strong, though there is some weakness in the Asian Adipic

Acid market as we typically see during the Summer due to a lull in

Polyurethane demand. The majority of our Adipic Acid sales are

under long term contracts in North America and Adipic Acid

volume for Q2 was on track. Our Force Majeure on HMD due to

the Decatur tornados resulted in a large volume shortfall vs. AOP

in Q2. Acrylonitrile demand and margins weakened during Q2 due

to poor demand for the two major AN derivatives (Acrylic Fiber and

ABS) and high raw materials costs. • The regional spike in propylene

cost in North America vs. Asia and Europe also made it harder to

compete globally during April and May. However, Propylene costs in

North America has decreased considerably from May to July which

will be positive for us going forward. While the AN market was weak

we took the opportunity to move up maintenance work that was

originally scheduled for later in the year. For now, improved AN

volume, in addition to continued strong demand for our other

chemicals and the projected end of our Force Majeure on HMD

during August, should result in us meeting or exceeding our plans.

Of course it will be critical that we run our plants with exceptional

reliability in order to take advantage of the opportunities in

the marketplace.

continued >

6

Have you attended the A2E 2011 learning course yet? by Matilda Reeder A2E 2011 roll out began in May and will continue through July. This learning course offers a little something for everyone! • Did you wonder

what happened to that A2E survey you completed last summer ? Well, we put the survey to work. First, we used it to identify and plan

the activities for APEX 2010. As important, we used it to develop A2E 2011 learning courses! Your survey responses make a difference in

how we develop your A2E learning opportunities. • One of the most exciting elements of the A2E 2011 course is learning how to empower

yourself on your next A2E project. When you and your team assume the power and authority to identify and solve problems, your engagement

in and contribution to Ascend's success will increase significantly. A2E learning is about building the skills for success. We look forward to

seeing you! • And don't forget, APEX 2011 is coming!! Start thinking about who you would like to nominate.

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It’s hard to believe that nearly four months

have passed since we went live on our

own SAP system! Our SAP support team

is committed to making sure that all

production issues reported via the ticketing

system are resolved in a timely manner, all

requests for moderate system changes are

prioritized through a Change Control Board,

and all major system enhancements are

projects that are resourced appropriately to deliver significant

improvements to our various operations across Ascend. • Our

Change Control Board (CCB) consists of Finance, ISC, and HR leaders

that meet weekly to review and prioritize all pending requests

ensuring we are focused on the requests that drive the most

business value. If you’re interested in knowing who sits on the CCB

or knowing what changes your coworkers are requesting and when

they’re scheduled to go into effect, please visit our SAP SharePoint

site at https://team.ascendmaterials.com/sites/it/SAP • In the spirit of

continuous improvement, key SAP enhancement projects underway

will deliver greater visibility to our spend in the areas of Procurement

and Logistics, better on time delivery and credible promise dates

to customers, along with increased revenue opportunity through

programs such as duty drawback -- all coming in 2011. • In parallel

with adding new functionality in SAP, we’re streamlining/cleansing

our system by removing what is not applicable to Ascend. This will

make our SAP system more efficient and easier to use. But there is

life beyond SAP! Here are some other activities in underway… •

The IT Enterprise Applications team is gathering requirements

from business leaders to ensure our portfolio of systems is the right

tool set for Ascend, and is configured appropriately to improve

the way we operate internally, and with our customers and suppliers.

• We are also revamping our IT Service Desk. Our key goals are to

continually improve incident resolution time, establish service level

agreements with ongoing report-outs of success rates against those

commitments, and implement a centralized call center to service all

of our plants and offices, globally. • Beneath it all lies the infrastructure

on which these systems run. Our infrastructure and network teams

are building a plan to apply modern technology solutions, which

will enable us to reduce our overall hardware footprint while

replacing aging hardware in the most cost effective and least

disruptive manner. • Look for more IT news in upcoming issues

of the Ascend Newsletter.

Allison Roberman is the Chief Information Officer.

IT Transition by Allison Roberman

Matilda Reeder is the Global Training Leader.

ISC Scorecard | Q2Major Achivements2Q11 was marked by the extended Decatur outage from the tornado that caused power outage in early May. Across the circuit the production units did a very nice job of accelerating and/or moving forward planned maintenance to minimize the lost production impact for the full year.On the heels of the process restart in Decatur, the site executed the addition of the 18th reactor. Greenwood completed the startup of the Industrial Fiber Phase 2 Project in effect capping off several steps that has doubled our capability to produce this high-grade fiber.

Major OpportunitiesDuring the third quarter we have several recently completed capacity additions to start and shake out. GWD IF Phase 2 for tire and airbag fiber, Pensacola CP 22/23 pellet conversion to increase our chip-out capability, and Decatur ADN reactor addition. All of these are important projects but with our current inventory position following the Decatur power outage, it is critical that the ADN unit operates well in order to provide feedstock for the downstream process.

AOP Q1 Actual

Q2 Actual

Percentage of SIOP

100% 98% 95%

Customer Promise

OTD97% 93.4% 79.8%

Quality defects

parts/million

N/A*

15,916**

46,129***

Meeting Customers Needs

*This was not previously measured/not available Ascend wide **Q1 PPM Baseline is a Partial Metric (all areas not reporting at this time)***Q2 Better Reporting, Ascend wide and Global Coverage & Controls Going in Place.

VS.

VS.

X X X

7 days

!

Pensacola FRC committee works to beat the heat by Chuck Clarke

It is a challenge to stay cool during the summer no matter where you are or what you are doing. Last fall the Pensacola site adopted a FRC policy for its Intermediates and shared services employees. While the FRC provides excellent protection against arc flash and flash fire hazards, it presents additional challenges to staying cool during hot summer months. • A committee of field employees from across the site took on the challenge of safeguarding Pensacola employees from the heat and came up with several ideas to help employees stay cool:• Smarter work practices such as scheduling more strenuous jobs in the mornings or evenings, and taking frequent breaks during the hottest part of the day• Changing up to eight work shirts to lighter weight, more breathable FRC shirts. The shirt will provide sufficient protection from a flash fire hazard however additional protection must be worn when there are concerns about arc flash hazards• Use of cooling devices such as cool bandanas, cooling vests, and hard hat inserts for particularly hot jobs• Education via Toolbox Safety Talks, Heat Index Alerts, posters and safety meeting discussions about heat stress hazards, the importance of drinking plenty of water, heat stress symptoms and treatment • Providing cooling areas with air conditioning or misting areas and/or tents for shade• Greater availability of drinking water and ice

While none of these ideas are the panacea for eliminating heat stress, used together they can help employees stay cooler and safer during the hot summer months.

Be pro-active to help your body tolerate the heat:

LIMIT HIGH FAT “HEAVY MEAL” INTAKE High fat and “heavy meal” consumption results in an increase in body metabolism which increases internal body temperature.

LIMIT SODIUM (SALT) INTAKE Salt intake creates dehydration which causes the body to work harder to circulate fluids which increases internal body temperature.

INCREASE FLUID INTAKE A well-lubricated machine runs more efficiently.

3:1 RATIO Consume 3 waters toevery 1 electrolyte replacement beverage.

LIMIT CAFFEINE INTAKE Caffeine is a stimulant and a diuretic, thus it increases body metabolism two-fold, resulting in increased internal body temperature

LIMIT ALCOHOL INTAKE Alcohol is a diuretic. Fluid lost when consuming alcohol is greater than the amount of fluid consumed, thus placing the body in a dehydrated state

KNOW YOUR PRESCRIPTION MEDICATIONS Medications such as Lasix, HCTZ, and other “fluid” medications prescribed for heart or blood pressure conditionskeep the body in a constant state of mild dehydration. Antibiotics can make us more sensitive to the solar effects of the sun, and to heat

LISTEN TO YOUR BODYThirsty = I am too dry, water me Dizzy = I need to sit downNausea = I need to cool downSweating ceases & skin becomes hot & red = I am in TROUBLE!

INFECTIONS Viral and/or Bacterial infections, up to one week after last symptoms, place additional strain on our bodies to regulate internal body temperatures

PERSONAL HISTORY OF A HEAT-RELATED ILLNESS If you have experienced a heat-related illness, you are more likely to have a recurrent heat-related event for up to a year later, with less heat exposure than the initial exposure

TAKE FREQUENT BREAKSWEAR LIGHT COLORED/LOOSE-FITTING COTTON CLOTHING COOL THE CORE Apply cool packs to the neck, under both arms and to the groin area to decrease internal body temperature. Drink cold water if nausea has passed, and no vomiting is present. Avoid rapid cooling as this will cause the body to shiver, thus increasing internal body temperature.

continued >

ESSH

8

Chuck Clarke is the ESSH Lead in Pensacola.

HEAT FATIGUE HEAT RASH HEAT CRAMPS HEAT EXHAUSTION HEAT STROKE

CAUSE

Working in a hot environment

without building up a tolerance

to the heat (i.e. acclimatization)

inflammation of plugged sweat

glands

• Excessive loss of body salts

through sweating• Usually occurs after periods of strenuous

physical labor and heavy sweating

Loss of large amounts of fluid and excessive loss of salt

through sweating

Breakdown of the body’s heat

regulatory system

SYMPTOMS

• Psychological distress (feel

uncomfortable)• Loss of

coordination• Loss of alertness

• Dizziness/feeling of faintness

Non-contagious skin rash marked by red

pimples and intense itching

Painful, intermittent muscle

spasms or cramps

Weakness or fatigue, nausea, headache,

moist skin, pale/flushed complexion,

profuse sweating, and normal or

slightly elevated body temperature

Hot, dry, and usually red

spotted skin, body temperatures of 105° F or higher and rising, absence

of perspiration, mental confusion,

deliriousness, convulsions, and/or

unconsciousness

TREATMENTMoving

the individual to a cooler environment

• Clean the affected area thoroughly with

water and allow it to dry

completely• Calamine and other soothing lotions help

relieve discomfort after leaving work

(don’t use Calamine while

still working in heat)

• Have victim drink water or electrolyte

replacement/sport drinks

• Persons with heart problems or on

a low-sodium diet should not use

electrolyte/sports drinks without

consulting a physician first

• Gently massage or use firm pressure on the muscle that

is cramping

• Have victim rest in a cool

environment and drink water or

electrolyte replacement/sport drinks

• Persons with heart problems

or on a low-sodium diet should not use sports/electrolyte

drinks without first consulting

a physician• Severe cases of heat exhaustion

require medical care

• Summon medical aid immediately• Move victim to

a cool environment and bathe his/her

body with cool water until body temperature is

reduced to 102° F. • Vigorous fanning will help increase

cooling effect• Don’t leave victim

unattended

!!

Medical emergency that requires immediate medical attention Heat stroke is always life threatening. Brain damage and death can result if the victim is not cooled quickly!

9

FIVE LEVELS OF HEAT DISORDERS

10

Congratulations50 Years

Betty Qualls

40 Years

Philip Kellam

Roy Thomas

35 years

Rhonda Navarro

Curtis Ramsey

Sally Solis

George Bowers

James Lollis

30 years

Elaine Powell

Floyd Moore Jr.

Michael Norre

20 Years

Kevin Carrier

Johannes De Jongh

Jeffery Graham

Michael Hardeman

Ben Harris

Clifton Johnson

Sharon Johnson

Sherman Nichols

Darlene Sebesta

Gary Van Winkle

John Villareal

Billy Allen

James Baugh

Jeff Petersen

Chris Hodges

Aaron Bocz

Decatur

Pensacola

Pensacola

Chocolate Bayou

Chocolate Bayou

Chocolate Bayou

Decatur

Greenwood

Chocolate Bayou

Greenwood

Pensacola

Chocolate Bayou

Chocolate Bayou

Chocolate Bayou

Chocolate Bayou

Chocolate Bayou

Chocolate Bayou

Chocolate Bayou

Chocolate Bayou

Chocolate Bayou

Chocolate Bayou

Chocolate Bayou

Decatur

Decatur

Kellwood

Foley

Pensacola

Decatur Reduces River Water Pump Costs

Decatur recently completed a successful A2E project led by the Boiler House “A”

shift team. • The team identified an opportunity to optimize the number of river

water pumps in service. The Boiler House operators were managing the river water

pumps by a “seat of the pants” method without enough data to understand whether

river water needs were being met, or whether too much river water was being

utilized. They relied on pressures, experiences, and “gut” instincts. It was a poorly

informed and unstructured way of managing the pump operation. • The team,

led by David Lowery, identified the opportunity, discussed it with internal customers,

and developed an understanding of the needs, and a better understanding of the

critical equipment that used river water. The team also consulted with engineering

resources, as well Supervisors and team leads. • The team used the following A2E

tools in their efforts: Team Charter, Brainstorming, 5–whys, Data Collection, and

Mapping. They sought customer participation to help in the effort, and the team

developed a monitoring table of river water users across the plant. Now, they assist

and advise the manufacturing units in monitoring critical operating parameters,

and preventing pump startup too soon as ambient river water conditions and

manufacturing needs change. The initial result of this A2E project was a $58K

saving in the past month. The team initially believed this effort was sustainable

in the Spring and Fall seasons, but after further review the team believes that a net

reduction of one pump from continuous operation is possible for most, if not all

year. This total reduction would produce an annual savings of $337 K. • The key

to success for this team was obtaining and using customer information that was

previously unavailable. By obtaining the information, and centrally cataloging it,

the operators now manage area needs while minimizing overall pumping costs.

Technology was used to provide pertinent information to operators who now

decide how many river water pumps to run based on data rather than “gut”

instinct! Congratulations to the A2E River Water Pump Team!

Al Faulkner is the Decatur plant manager.

by Al Faulkner

Gearing up for