SHECO’s VISION

To be the first choice manufacturer of quality heat exchanger products in North America

SHECO’s MISSION

Promote a safe workplace, encourage open communication and foster long term career

development. Manufacture products with industry leading quality, delivered on time and

supported by 5 star customer service. Provide our stakeholders with profitable growth,

continuous improvement, and sustainable financial operations

SHECO’s VALUES

Our SPIRIT: Safety – Passion – Integrity – Responsibility – Innovation - Teamwork

Contents

• Company Overview

• Pictures

• Quality & Safety Programs

• Field Services

• S&T Technical Information

SHECO Facilities

Tuscaloosa

• Four manufacturing facilities and 12,000 ft2 (1,114 m2) office space

• 120,000 ft2 (11,150 m2) under crane

• Crane capacity of up to 50 tons

Houston

• Single facility with 3,000 ft2 (278 m2) office space

• 55,000 ft2 (5,109 m2) under crane

• Crane capacity up to 50 tons

Tulsa

• One facility with 2,000 ft2 (186 m2) office space

• 24,000 ft2 (2,229 m2) under crane

• Crane capacity up to 22 tons

SHECO Personnel

Personnel

• 160 Total Employees

• 110 Shop Employees

• 25 Management, Engineering and Administration–10 Purchasing, Accounting and Management

–9 Sales & Sales Engineering

–6 Design Engineering

• 5 Quality Assurance

Includes >20 degreed engineers across all functions

Company Overview

• Over 500 heat exchangers built each year, average annual sales of approximately $60M

• Members of both TEMA and HTRI

• Maintain ASME U,R, and S stamps

• China ML certified

• European PED

• Build to API 660, API 934

• Wholly owned subsidiary of the NDA Group, headquartered in Hamilton, New Zealand

Company Overview

• Over 24,000 Shell & Tube Heat Exchangers fabricated since our inception in 1961

TEMA

• The Tubular Exchanger Manufacturers Association, or TEMA, is a group of leading

manufacturers who have pioneered the research and development of heat exchangers

since 1939.

• It’s not easy for manufacturers to become a TEMA member. It takes more than just

purchasing a standards manual. Member companies must meet stringent criteria and

adhere to strict specifications to qualify for TEMA membership.

–must have in-house thermal and mechanical design capabilities, and thoroughly understand current

code requirements and initiate strict quality control procedures.

–Additionally, all welding must be done by the company's own personnel, and the company must

have its own quality control inspectors.

• TEMA members develop and update today's standards.

SHECO – A proud member of TEMA for more than 20 years.

HTRI

• HTRI, the world-recognized leader in heat transfer, has been running its applied research program since 1962

• They conduct real-world, applied research on near full scale test units

• Utilize computational fluid dynamics (CFD) and laser anemometry visualization

• The largest concentration of heat transfer expertise in the world

SHECO – A proud member of HTRI for more than 50 years

• All SHECO thermal design engineers attend HTRI training

• We utilize the latest version of HTRI software - Xchanger Suite® and Exchanger Optimizer™

Capabilities

• Full in-house thermal and mechanical design capabilities using HTRI, Compress and 3D modeling via Auto Desk Inventor.

Capabilities

• Full in-house thermal and mechanical design capabilities using HTRI, Compress and Auto Desk Inventor.

• Manufacture units in carbon steel as well as a wide range of alloys including stainless, nickel, copper and titanium.

Capabilities

• Full in-house thermal and mechanical design capabilities using HTRI, Compress and Auto Desk Inventor.

• Manufacture units in carbon steel as well as a wide range of alloys including stainless, nickel, copper and titanium.

• CNC drilling capability for tube sheets up to 135” in diameter and up to 11” thick.

Capabilities

• Full in-house thermal and mechanical design capabilities using HTRI, Compress and Auto Desk Inventor.

• Manufacture units in carbon steel as well as a wide range of alloys including stainless, nickel, copper and titanium.

• CNC drilling capability for tube sheets up to 135” in diameter and up to 11” thick.

• Fabricate units from 6” to more than 156” (4m) in diameter >720” (18m) long, up to 350,000 lbs

Engineering Personnel & Experience

• Sales department includes 6 degreed engineers with thermal rating capabilities and 7

estimators.

• Design engineering department includes 6 degreed engineers and 3 draftsmen.

Tenure = Experience

• Management, sales and engineering staff has an average of 12 years service with

SHECO.

Facilities - Tuscaloosa

Tuscaloosa – East Assembly Bay Kettle Reboiler w/ Steam Drum

Machining - Tuscaloosa

Tuscaloosa – CNC Drilling CNC VTL – “Big Al”

Facilities - Tuscaloosa

Large Exchanger Fitting and Welding Vertical Turning Machines

Sub Assembly - Tuscaloosa

Tuscaloosa – Sub Assembly Plate Rolling – Carbon & Stainless

Cutting Technology - Tuscaloosa

CNC HiDef Plasma Table CNC Laser Table – Nested Baffles

Orbital Tube End Welding - Tuscaloosa

Equipment Highlights:

• Automatic/Semi-Automatic Weld Heads

• Pneumatic self-centering mandrels

• Automatic Arc Voltage / Weld Height control

• Multi-custom power wave pulse

• Reactive material welding purge chambers

• Direct and remote control capabilities

• Carbon Steels, Alloy Steels, Stainless Steel, Nickel Alloys, and Reactive Alloys

• From ½” to 3” tube diameter

Equipment - Tuscaloosa

• CNC Shell Profiler

–100” Diameter

–40’ Length

–Video

Exchangers - Tuscaloosa

180k Pound Kettle Reboiler High pressure stacked unit

Exchangers - Tuscaloosa

Standing up a large turbine gas bundle to pour refractory

Houston – New 55,000 ft² Facility

Facilities - Houston

Houston – Assembly area and Shop Floor

Facilities - Houston

Large exchanger repair Hanging a tubesheet

Equipment - Houston

Sub Arc Welding and Overlay Station Inconel overlay on 1 ¼ chrome

Equipment - Houston

Local post weld heat treat contractors Hydraulic gantries for 350,000 lb. lift

High Pressure Capability

High pressure converter Single pass floating head exchanger

High Pressure Capability

Ammonia Converter Cooler – 123C 350,000 lbs. API 934 >3,500 PSI

High Pressure Capability

Feedwater heater retube Waste heat boiler (101C) floating head fit up

Design Ability

SHECO designed and built 28-384 Hairpin

– Thermally designed in house

–Offered a unique solution to a complex customer

problem

Other Capabilities

Rod baffle bundle EM Baffles – Licensed Technology

Repairs, Retubes and Bundles

Heat Exchanger repair and retubing Bundle saw (up to 84”)

Repairs, Retubes and Bundles

Bundle removal Bundle rack / puller

Air cooler bundles

Replacement bundle with removable end covers

World Wide Exchangers

• Skiatook Oklahoma (just north of Tulsa)

• Adds 24,000 ft² of manufacturing space

• Adds the ability to design and build complete Air Cooled Heat Exchangers

S&T Heat Exchangers

Gas-Gas Exchangers Large BK2U

Air Cooled Heat Exchangers

3-3-S2-H1.5-FHD Complete design and build large ACHE

Capital Investment

Investments since 2011 to improve quality, increase capacity, and maximize value

–(2) additional Quickmill CNC drills (2011)

–CNC Hi-Def plasma plate cutting (2012)

–CNC Laser plate cutting (2012)

–New Orbital welding equipment (2013 and 2014)

–CNC-VTL (2013)

–3rd fabrication shop in Tuscaloosa (2013)

–Compress and Inventor Design Software (2015)

–CNC Shell Profiler 100” X 40’ (2016)

–Lean Manufacturing (Since 2011)

–Acquired Worldwide Exchangers Inc (2016)

Continuous Improvement

• 6S Program

• Quality at the Source

• Quality Audit System

• Production Control Management System

Continuous Improvement

• 6S Program - Sort, Set, Shine, Standardize, Sustain plus Safety– Shadow boards in place plant-wide

– Improved Material Flow by setting up designated holding areas

– Resulted in dramatic improvement in complex changeovers on the VTL Machine Center

Continuous Improvement

• Quality at the source

–Never start the next operation before checking the incoming part for defects

–Check each process before starting work (safety, prints, equipment setting, checklists etc.)

–Check work during operations at critical points in the process

–Stop work until the issue is corrected

–Check work after complete

–Never pass a part to the next operation if defective

• This has reduced QC Inspection time by 30%. QC Inspectors now have 30% more time

each day to assist with process improvement, training and permanent problem

resolution.

• We’re driving defects inspectors catch from >15% to <5% and soon less than 1%.

Continuous Improvement

• Quality Audit System

–Level 1 Audits

•Quality at the source. Occur throughout the day as part of our standard operations. Conducted by

Supervisors, Team Leaders and Operators.

–Level 2 Audits

•Quality inspectors inspect work at key intersections before allowing parts to pass to the next

operation. No supervisor can override an inspectors decision to hold work.

–Level 3 Audits

•Conducted randomly, at least weekly, by senior management.

–Level 4 Presidential Audit

•Conducted randomly throughout the month.

Continuous Improvement

• Production Control Management System

Continuous Improvement

• Production Control Management System

Continuous Improvement

• Production Control Management System

Continuous Improvement

• Production Control Management System

Customer Specifications

• How do we know SHECO employees know and understand Customer Specifications?

–Step 1: Management Team created to review and incorporate Customer Specifications with SHECO

shop practices and procedures (as needed).

–Step 2: Create Process Workflow Checklist for shop supervision.

–Step 3: Create Shop Floor Work Instructions to support the Process Workflow Checklists.

–Step 4: Train the shop supervision on the use of Process Workflow Checklists.

–Step 5: Provide shop floor access to these Work Instructions and Customer Specifications.

Customer Specifications

• Information is required at the work site

Process Workflow Checklist and Work Instructions with visual examples

Work Flow Documentation and Instructions

• SHECO uses Work Flows and Work Instructions to communicate to the shop for all

processes for both SHECO standards and customer specific requirements.

• After critical customer specific Work Flows and Work Instructions are developed, we map

SHECO standard work to create our SHECO Work Flows and Work Instructions.

• All SHECO standards and customer specific Work Flows, Work Instructions, and

customer specifications are available for all shop supervision and workers on the floor

using electronic kiosks .

• This is a continuous improvement process that will evolve as needed to meet the

changing needs of our customers.

Work Flow Documentation and Instructions

• Electronic Kiosk

Field Service

• Our experience extends to all corners of the world. Our personnel have performed work

in:

–Indonesia - China - Chile - Iceland - Saudi Arabia - Nigeria - Trinidad and Tobago - St. Croix. -

Canada and all corners of the USA

• Time & material rates are available for National & International work.

• Master Service Agreements (MSA’s) with most major U.S. chemical and petrochemical

companies.

Field Service

Field Service

Field Retube – tube pulling Bolt tensioning service – High Pressure

Field Service

Bundle removal Nozzle cutting

Field Service

Weld Removal for Weld Repair on 6 ½ Inch (165 mm) Thick 1 ¼ Chrome Material

Field Machining

• In shop portable machining since 2000

• Purchased portable machining equipment in 2012

• Hired field machinist superintendent in July 2015

–More than 10 years of on-site machining experience, including several long duration overseas and

offshore jobs

–Strong knowledge of safe working procedures required for on-site plant maintenance and repair

work

–Extensive experience with SHECO while performing post fabrication machining operations in shop

Field Machining Capabilities

• Tubesheet and flange machining with OD mount equipment up to 120” (3,048 mm) OD,

extending to a maximum of 130” (3,302 mm) OD with ID mount equipment

• Tubesheet/ channel/ channel cover pass lane machining (mill slot) up to 120” (3,048 mm)

across

• Multiple flange facings from raised face to ring type joint (RTJ) and Grayloc®

• Mill pump bases to within 0.002 in/ft (0.17mm/m)

• Cut and bevel pipe up to 80” OD (2032 mm)

• Drill and tap holes/ drill out broken studs

• Line bore up to 85” ID (2159 mm)

Field Machining

OD Mount Mill Slot

Questions?