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HUDSON PRODUCTS CORPORATION

Summer/Fall 2002

Vol. 13 No. 2Quality, Performance, Efficiency, HUDSON

continued.....

HIGHLIGHTS

l Changes at HUDSONl ChevronTexaco

Sanha Condensate Projectl W. E. Smith Hudson Pty. Ltd.

Goro Nickel & Woodside Projectsl Upgrades in the Fan Shopl Whos Who in FANSl Marketing Team

Lunch & Learn Seminarsl Hudson Parts

at Clearance Pricesl Service Awardsl Environmental Edgel Presidents Comments

HUDSONProducts Corporation Leading Edge Technologies

udson Products Corporation,a leader in the design, manufacturer,and service of heat transfer equip-

ment and axial flow fans for thepetroleum, chemical, gas processing,and electric utility industries hasrelocated its business offices to FortBend County in Sugar Land, Texas.The new office location is now closer to the manufacturing facilities inBeasley, Texas.

HUDSON is now located at:

1307 Soldiers Field DriveSugar Land, TX 77479

Phone: 281-275-8100 Fax: 281-275-8211

www.hudsonproducts.com

FIN-FANNER

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Profile

1307 Soldiers Field Drive, Sugar Land, Texas 77479 - Ph. 281.275.8100

H U Dudson Products Corporation

was sold to a group of investors ledby Madison Capital Partners of Chicago in July of 2002. Thecurrent HUDSON management hasremained unchanged and the saleby McDermott International Inc. wasin line with their plans to focus ontheir core business in the power,government, and offshore marineconstruction industries.

We are excited with Madison splan to grow the business internallyin addition to possible acquisitionsin related industries. Madison

was attracted to HUDSON s solid

financial track record and quicklyintroduced a dynamic management

and measurement style to our business planning.

Their focus on our business asa core holding will enhanceHUDSON s position in the heattransfer industry with a number of exciting growth prospectsalready discussed.

The sale included HUDSON sglobal offices, and our joint ventureoperations in Australia, Indonesia,and Mexico. Our licensee andsales representatives networkremains unchanged.

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Profile

281.275.8211 www.hudsonproducts.com

S O NcDermott International Inc.

is a leading worldwide energyservices company. The company ssubsidiaries manufacture steam-generating equipment, environ-mental equipment, and products for the U.S. government. They alsoprovide design, engineering,fabrication and installation servicesto the oil and natural gas industriesfor offshore production facilitiesand pipelines.

On April 17, 1969, McDermottacquired HUDSON to provide their clients with stronger engineeringand manufacturing services.

M adison Capital Partnersacquires and operates processorsand industrial equipment manufac-turers for the plastics, rubber andmetals industries. Madison providescapital and strategic resources andaligns goals through offering man-agement direct equity investmentopportunities. The Principalsand Advisory board members of Madison have managed multiplemanufacturing operations and havebeen very effective in assisting man-agement teams in the developmentof strategic growth plans.

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Profile

ChevronTexacoSanha Condensate Project

ChevronTexaco s Sanha Condensate Project team visits HUDSON s manufacturing facility.

pictured left: Kenny Won, Wade Privratsky, Robert Neill, JohnWard, Neil Cruickshank, Billy Johnston, Helge Edvardsen, and

Alberto Sayago.

W. E. Smith Hudson Pty. Ltd.Goro Nickel and Woodside Projectst he Goro Nickel project is a Nickel Refining Project

located in the French Territory of New Caledonia, Australia.The scope of W. E. Smith Hudson Pty. Ltd. is to supply 16Titanium Grade 28 shell and tube heat exchangers at a valueof approximately US $16,500,000. This project is the larg-est ever attained by the company in its 80 year history and

would be one of the largest single projects placed for heatexchangers on any Australian manufacturer to this date.W. E. Smith Hudson Pty. Ltd. was the only Australiancompany technically approved to design and fabricate thetitanium and superduplex shell and tube heat exchangers.

The equipment is fabricated from Titanium Grade 28(tubes, tubesheets and floating head), Titanium Grade 17clad (shell and shell cover) and superduplex (channel cone).These materials were selected after extensive corrosion test-ing and have rarely been used in the manufacture of shelland tube heat exchangers. This project represents approxi-mately 60,000 man-hours and shall be completely

undertaken within the company s fabrication facility located inCoffs Harbour on the mid North Coast of NSW, Australia.

W. E. Smith Hudson Pty. Ltd. will be delivering the four 200 tonne shell andtube vessels for the

Woodside LNG train4 project at the endof Nov. 2002. In ad-dition, W. E. SmithHudson Pty. Ltd. willcommence manu-facture of 250 tonnex 70m x 4.5m con-densate splitter col-umn in Dec. 2002.Both of the above major equipment items will be shipped bybarge directly from Coffs Harbour.

f ollowing the facility tour, ChevronTexaco project teammembers met with Kenny Won and Alberto Sayago of HUDSON to review the Sanha Condensate Project con-sisting of five offshore platforms with two linking bridgesand HUDSON s Fin-Fan air-cooled heat exchangers.

HUDSON was awarded two contracts to manufac-ture and design Fin-Fan air-cooled heat exchangers fromDaewoo Shipbuilding & Marine Engineering and StoldtOffshore consortium. A total of 50 units with 63 bundlesfor 24 different service items are scheduled for construc-tion and testing at HUDSON s manufacturing facilitylocated in Beasley, Texas. Both induced and forced draftdesigns are utilized with plug and cover plate header designs featuring up to 7,200 psi design pressure.Material requirements are carbon steel, 2205 Duplex, and316 stainless steel.

The Sanha Condensate Project will be deployed inSanha and Bomboco field in the Cabinda area in offshore

Angola, in West Africa. The operator of this field is

CABGOC, on behalf of an oil company group of Sonagol,ChevronTexco, Agip and TotalFinalElf .

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Research and Development

Upgrades in the Fan ShopUDSON recently completed a new facility for cutting and storing fiberglass material for the Tuf-Lite fans

blade series in the Fan Blade Shop at the Beasley manufacturing plant. This facility consists of a 4400 sq. footbuilding, a Lectra CNC cutting machine and CNC spreading machine with table.

In 1991 HUDSON contracted the cutting of the fiberglass holder kits to an outside company, producing the kits on automated cuttingequipment. This decision was made due to the quality problemsassociated with existing holder kits. Hand cutting the fiberglassmaterial results in a part that is not to the proper size, shape or weight.The variance in the parts resulted in a large amount of scrap blades.

Over the last 11 years, the capabilities of CNC cutting equip-ment has greatly improved prompting a study of available equipment.Lectra was selected as the machinery best suited for HUDSON. Thecutting machine is capable of cutting a one-inch thick stack of fiber-glass cloth at an average cutting speed of 650 lineal inches per minute.Extensive software and machinery training was accomplished at theLectra offices in Atlanta, GA and at the Beasley, TX facility.

The new spreading machine is much faster and more accuratethan the existing spreading machine, with this accuracy thereis almost no scrap. In addition, the existing spreading table

was replaced.

With the CNC cutting machine, spreadingmachine and spreading table, it is now more profit-able for HUDSON to cut the fan blade holder kits atour plant once again.

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by Joey Coatney & Mark Krolczyk

pictured back left: Roy Hamm, Travis Posey, and Ray Ortiz

front left: Damon Richards, Alfred Arguello, Santos Garcia,Kevin Schneider, David Baumgarten, Adam Vela, Joey Coatney, and Mark Krolczyk

CNC Cutting Machine

Spreading Machine and Spreader Table

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Fan and Parts Sales

Bob was appointedas Manager of Fans,Parts and TechnicalServices in August2002. Bob joinedHUDSON in 1996 asTechnology Coordi-nator and prior to ac-

cepting his current position was a ProjectManager for air-cooled heat exchangersin the Projects Department. Beforetransferring to HUDSON, Bob was a Sr.Engineer for Babcock & Wilcox where

he was responsible for product improve-ment and development activities in theutility power boiler market.

Bob is now responsible for HUDSON s Fan and Parts Sales, FanEngineering, and Field Service Groups.He holds a Bachelors and Masters inMechanical Engineering from DrexelUniversity in Philadelphia.

Bob Giammaruti

Lynn Bennett

Lynn began her business career atHUDSON in Decem-ber 1965 for the

Plastics (fans/blades) departmentof the Cooling Equip-ment Division,

Hudson Engineering Corp.; later to beknown as Hudson Products Corp. Her tenure would also include developing

expertise in the Marketing/Proposalgroup; the first ever HUDSONTelemarketing group; followed by theFan and Parts Group where she hassupervised the group for manyyears....always mindful of meeting and/or exceeding the customers expecta-tions. Lynn was very active during theinitial implementation of Total QualityManagement throughout the companyand continues to participate in several

Benny Bustos

Benny Bustos, Cus-tomers Sales andService, is a longtimeemployee who joinedHUDSON in 1965and has held severalpositions. His tenureat HUDSON started

with 14 years in the Tube-Out shop where he served as a workingleaderman then later transferred to thePlastics Dept. where he mastered fanblades and hubs. Benny is presently partof the Fan and Parts Sales Group andis known as Hot-Shot Bennyinside HUDSON.

Mike Daley

Mike Daley, a mem-ber of the CoolingT e c h n o l o g yInstitute since themid 70 s has 22years of dedicatedservice at HUDSON.During his early

years at HUDSON, Mike developedexceptional skills in fan engineering prior to joining the Fan and Parts Sales Group.His skills stem from many years of ex-perience in sales of air cooler repairs, cooling tower repair, thermalupgrade, new cooling towers, sales of vibration analysis and monitoring equip-ment. His educational background is inmechanical design, drafting andengineering. As Sales Representative,his primary focus is on the OEM (Origi-nal Equipment Manufacturer) coolingtower fan market.

Brian Hanel

Brian Hanel, is agraduate of South-

west Texas StateUniversity in SanMarcos, TX with aBachelors degree inmarketing and holdsa Masters in Busi-

ness Administration - International Salesfrom the University of St. Thomas inHouston, TX. He joined HUDSON s Fanand Parts Sales Group in 1992 as anInside Sales Representative and has

been a member of the Cooling Tower Institute for eight years. Brian is pres-ently HUDSON s Senior InternationalOutside Sales Representative.

FPO Yvette Williams

Yvette Williams,Domestic InsideS a l e s - O E M s /Resellers, has been

with HUDSON for 14years. Her career be-

gan working in theSafety Dept. followedby Shipping & Receiving, MaterialControl, and Purchasing. She is respon-sible for processing customer spurchase orders and attends tocustomer s inquires for individual fanblades, hub assembles, complete fanassemblies, and finned tubes. Yvettehas worked for HUDSON s Fan andParts Sales for the past seven years.

Kathy Widaski, whopreviously served as

Administrative Assis-tant for Fan and PartsSales, was promotedto Inside Sales Rep-resentative, - EndUsers in October

2001. She is responsible for process-ing customer s purchase orders,On-Line Internet orders, maintaining theOn-Line Catalog, and scheduling of Field

Kathy Widaski

Who s Whteams. Her experience and knowledgeof HUDSON s Fan Products make her aunique valuable asset to this company.

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Fan Engineering

Lynn Schroeder,Licensed Profes-sional Engineer inthe states of Texasand New York, joinedHUDSON s fanengineering teamin 2000. Lynn brings

to HUDSON many years of experiencein mechanical analysis, engineering

Sterling Rhemann,Fan Engineering, isan honors graduatefrom the Universityof Houston witha Bachelors of Science in Mechani-cal Engineering. He

joined HUDSON in 2000 as a Header Designer where he became instrumen-tal in the development of a new header

design calculation software program.Sterling recently transferred to the FanEngineering Group where he now enjoys the challenging technical aspectsof the axial flow fan product line.

Charles Taylor, is asecond generationHUDSON employee

with 20 years of ser-vice. Charles joinedthe Field Servicegroup in 1982 andhas traveled to

almost every state in the USA, all theProvinces in Canada, and countlessforeign countries. He developed thecurrent fan field balance procedure, waskey to the development of the HUDSONFin-Fan bearing, and designed thecurrent bearing adapter plates. Throughvibration analysis and field trials, he has

David Lopez, joinedHUDSON in 1974.His tenure atHUDSON began inthe Hub Shop. In1983, he served as

working leadermanfor fan blade quality

control in the Fan Shop Molding Dept.He has also been part of the ACHE s

Assembly Dept., QC tester of finnedtubes in the Finning Dept., leaderman

for the Heat Pipe Dept., and night shift Assistant Plant Manger. David iscurrently a Field Service Technicianexperienced in fan balancing, air sideairflow testing on ACHE s and coolingtowers, blade inspection and evaluation,on-site fan assembly, retube, structuralassembly, header repair, and assistingin ACHE s start-ups.

David M. Lopez

systems, R&D, laboratory testing, field work, mechanical design, thermaldesign, and new products development.Lynn s experience encompasses aero-space equipment, reciprocating andcentrifugal compressors, small OEMheat exchangers, large shell and tubeheat exchangers, projects and engineer-ing and construction. His addition to theFan Engineering Dept. helps maintainHUDSON s commitment to quality andservice to its customers.

become instrumental in various designchanges to air-cooled heat exchangers(ACHEs) and reducing vibration in fans.His expertise in unit assembly, vibrationanalysis, fan performance testing, tubebundles, air-cooled heat exchanger performance testing and retrofitting new components to old HUDSON units andcompetitor s units have enabled Charlesto provide HUDSON s customers withthe highest quality in field service.

Thomas Kopecky

Field Service

Charles Taylor

Thomas Kopecky,

Field ServiceTechnician, whopreviously served inR&D was trans-ferred to FieldService in Novem-ber 2002. Thomas

was instrumental in the development of the 2 extruded fin tube, and hasexperience in vibration performance andnoise testing on ACHES. He has been

with HUDSON for 13 years.

Claire Yu

Claire Yu, holds aBachelors degreefrom the University of Houston. She joined

HUDSON s engi-neering team in1997. Claire isresponsible for pro-

viding AutoCad drafting support to Fanand Parts Sales, Fan Engineering, FanShop, Manufacturing Engineering,Structural Drafting Group, and theProjects department. Claire is alsoresponsible for the maintenance of certified prints, manufacturing specifica-tions sheets, instruction manuals, andall fan project drawings.

Cheryl Tucker, Fanand Parts Sales

A d m i n i s t r a t i v e Assistance joinedHUDSON in June2002. She is respon-sible for expeditingaccounts receivable,

maintaining job files, the customer database, and the distribution of Tuf-Litecatalogs and literature.

Cheryl Tucker

Sterling Rhemann

Lynn Schroeder

in FANS Service Technicians. Kathy has workedfor HUDSON s Fan and Parts Sales for six years.

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HUDSON commenced full scale production of our new highest efficiency fan to date, Tuf-Lite III , during October of this year.

Test installations have exceeded expectations in

performance, as a result, HUDSON has pre-sold a number of fan assemblies.

As mentioned in the Winter/Spring 2002 Fin-Fanner , thisfan is expected to raise the performance bar in the axial flow fan industry. HUDSON s focus in the fan business will con-tinue to be on customer service and product quality as it hasbeen for over 45 years.

Initial sizes will be 28 and 30 as well as a 10 meter modelfor cooling tower applications.

Axial Flow Fans

the HUDSON sales team is keeping the heat transfer industry on the leading edge with educational technicalluncheon seminars. Presentations this year included anumber of engineering contractors and end usersaround the world in countries such as Canada,Thailand, Singapore, Australia, and Malaysia. We alsovisited customers in the USA in Texas, California,Oklahoma, Washington, and Colorado.

We are continuing to expand our presentations intosessions that will detail thermal sizing methods,pressure vessel calculations, noise predictions, andsoftware instruction. During the presentations, weprovide a number of technical handouts, course outlines,and free software.

Marketing Team Lunch and Learn Seminar

Seminar OutlineNew Unit Design

Basics of Air-Cooled Heat Exchangers Thermal Calculations Pressure Vessel Design

Basics of Axial Flow Fans Noise Prediction Methods

Cost Reducers, Plot Space Reduction External Tube Enhancement Internal Tube Enhancement

Top Five Performance Failures

Air-Cooled Heat Exchangers - Applicable Standards

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HUDSON Partsat Clearance Prices

The above items are subject to availability; and will be sold on a first come/first served basis.

Tuf-Lite Fan Blades

80015 BLADE,FAN,TUF-LITE,15',B 11 $908.00 $454.0080025 BLADE,FAN,TUF-LITE,25',BH 11 $1,170.00 $585.0080026 BLADE,FAN,TUF-LITE,26',BH 6 $1,868.00 $934.0080107 BLADE,FAN,TUF-LITE,7',C 22 $336.00 $168.0080118 BLADE,FAN,TUF-LITE,18',C, 7 $1,007.00 $503.50

80159 BLADE,FAN,TUF-LITE,9',D 5 $545.00 $272.5080160 BLADE,FAN,TUF-LITE,10',D 13 $570.00 $285.0080313 BLADE,FAN,TUF-LITE,13',W 3 $930.00 $465.0080315 BLADE,FAN,TUF-LITE,15',W 5 $1,050.00 $525.00

Tuf-Lite II Fan Blades

84015 BLADE,FAN,TUF-LITE II,15',H 1 $767.00 $383.5084020HC BLADE,FAN,TUF-LITE II,20',HC 13 $1,038.00 $519.00

84111 BLADE,FAN,TUF-LITE II,11',HW 1 $789.00 $394.5084130 BLADE,FAN,TUF-LITE II,30',HW 4 $1,930.00 $965.00

Seal Discs and Inlet/Outlet Bells

81116 DISC,SEAL,AV,53",M847-E-1 2 $196.00 $98.0081205 BELL,I/O,5' FAN 23 $50.00 $25.0081216 BELL,I/O,16' FAN,M-890-N 26 $93.00 $46.50D8037 DISC-ASSY,SEAL,AP,168"R,7 BL 1 $2,318.00 $1,159.00

The following parts are being offered at the prices noted.Contact HUDSON s Fan and Parts Sales Departmentat 1-800-634-9160 and reference this advertisement.

Part No. Description Quantity List Price Clearance Price

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Editor :Silvia Guebara

The Environmental Edge

Hudson s Outlook

P. Eric Ralston, President

Shayne BeauchampChief Environmental Officer

Fin-Fanner is published by:

A s many of you are aware, HUDSON manufactures

By finding use for our fiberglass scrap in other fiberglass processes, we have diverted several tons of waste per year from landfills. Withthis project, we have helped benefit both HUDSON and other businesses in our area by reducing other companies material costand HUDSON s disposal fees. We consider this project to haveadditional potential.

We will continue the growth of this program by involving additionaltypes of fiberglass manufacturing with potential use of our product. Indoing so, we hope to encourage others to be In Partnership withthe Environment .

heat transfer equipment and axial flow fans at itsBeasley, TX facility. During the process of this manu-facturing, a variety of waste steams aregenerated. In previous articles, we have describedboth waste recycling and minimization efforts.

HUDSON is pleased to announce that with thehelp of the Texas Commission on EnvironmentalQuality we are now expanding our offsite recycling.

e arereporting manychanges atHudson ProductsCorporation inthis issue of theF i n - F a n n e r

newsletter.

On July 10, 2002, McDermottInternational Inc. sold Hudson ProductsCorporation to a group of investors led

by Madison Capital Partners of Chicago,Illinois. This change of ownership will notchange HUDSON s focus to be a world

wide leading supplier of heat transfer equipment and axial flow fans.

Also on July 1, 2002 we relocatedour United States office to a new facilityin Sugar Land, Texas. This office

location change moves us closer to

our manufacturing plant in Beasley,Texas. The move to this South WestHouston community will also improvethe quality of life for many of our Houston employees.

We continue to be pleased with theperformance of our new Joint Venturecompany, Hudson-HEI, operating in

Australia and the South East Asianregion. Our significant move into thisregion has been a major change for HUDSON. Hudson-HEI has signifi-

cantly increased their backlog and withmanufacturing operations in Australiaand Indonesia they are positioned asthe leading supplier of heat transfer products in the South East Asian region.

We are now in full production withour most advanced design, Tuff-Lite III

fan blade. This advanced design will

change the market expectations for axial

flow fan durability and performancestandards.

We will not change safety asa priority at HUDSON. I am pleasedto report that on November 5, 2002

we completed our third consecutive year without a lost time injury which is aHUDSON record. I congratulate all of our employees for this outstandingachievement.

Finally, there will be a change in

leadership at HUDSON. After 37 years with four McDermott International Inc.companies and three years with HudsonProducts Corporation, I am planning myretirement. I have thoroughly enjoyedmy tenure with HUDSON and would liketo thank all of our employees, suppliers,and customers for this extremelysatisfying conclusion to my full time

working career.

The Ethics Help-Line is an Alternative Method to Voice

Your Concerns.

2 8 1 - 2 7 5 - 8 1 9 3

w w w . h u d s o n p r o d u c t s . c o m

1307 Soldiers Field DriveSugar Land, Texas 77479P. O. Box 20029Sugar Land, Texas 77496-0029Ph: 281-275-8100Fax: 281-275-8211email:hudsonproducts@hudsonproducts.com

Telephone Number Correction:

w