corporate governance

Transcripción

123456 7/8/03 09:54 Página 1
ANNUAL REPORT 2002
INDEX
Letter from the Chairman
03
Corporate Governance
07
Approval of Proposals by the Board of Directors
13
Financial Information
17
Auditor’s Report
25
Industrial Activity and Strategies
29
Corporate Structure
44
Activities of the Business Lines
47
Directory
75
123456 7/8/03 09:54 Página 2
123456 7/8/03 09:54 Página 3
LETTER FROM
THE CHAIRMAN
Dear Shareholders:
As Chairman of Duro Felguera it is a great satisfaction for me to appear before you once again
to inform you of the company’s results, the most relevant events of the last financial year and the
outlook for the future.
Firstly, I would like to point out that the favourable effects of having implemented the 20022004 Strategy Scheme have already started to show. Consequently, the company’s core business
has been perfectly defined and this has allowed us to:
· Mantain and improve our business turnover.
· Reinforce our technological alliances.
· Re-order the markets in cooperation with other relevant companies.
· Optimise our resources by improving the professional, financial and industrial profile of
Duro Felguera, all of which places us at the third stage of planned development, already
announced in my letter to you in last year’s Annual Report.
2002 YEARLY RESULTS
Having said this and as all of you have been able to verify by the documentation handed to you
at the start of this meeting as well as by the information made public by the company over the
last months, the results of Duro Felguera during the last financial year, although not optimum,
may be qualified as reasonably favourable given the special developments of the markets where
the company is present.
Consolidated profits have risen by 7% with respect to the previous financial year. The most significant increase has been made by the Parent Company, which more than triples last year’s
results. This great difference is due to the fact that a large portion of business undertaken by
companies which make up the group, is now concentrated in the Parent Company.
It is equally important to note that general business has experienced a growth of 179%, rising
from 4.4 million euros in 2001 to 12.3 million in 2002.
ORDER INTAKE & BACKLOG
Possibly the most outstanding aspect of Duro Felguera over the last year has been the great
increase registered in orders, showing a growth of 66% with respect to the previous year. It is
also noteworthy that at last year’s closure, orders to the amount of 430 million euros were expected in comparison to the previous year’s 303 million euros; an overall increase of 42%. Apart from
the importance of this rise, the previously mentioned 430 million euros assure not only the company’s activities over a continuous period of time, but are also a favourable reflection on the profit and loss accounts. All Duro Felguera subsidiaries that have reached business expectations
and results foreseen in the Strategy Scheme, as gathered in their respective accounts, contribute to the Profit and Loss Account except those who are still in an adaptation phase. The subsidiary Duro Felguera, S.A. de C.V. in Mexico and its engineering subsidiary Pycorsa have begun to
make a profit, if modestly.
Over 2002, order intake has been orientated in favour of the domestic market mainly due to
the fact that better business opportunities have been appraised and as a consequence of the contracts that have been awarded and their proximity to production centres, streamlining costs more
effectively. All of this can be observed in greater detail throughout this report.
The fact that an increase in orders has been maintained during 2002 is especially significant
bearing in mind the enormous difficulties that the international markets have gone through, in a
climate of industrial, financial and political uncertainty.
3
123456 7/8/03 09:54 Página 4
LEADERS IN TURNKEY PROJECTS
You will remember that during our previous meeting we insisted that our strategy was to make
Duro Felguera a company focused towards turnkey projects and that it should have its own technology or technology in consortium with others.
Well, our primary aspirations have come true during 2002: Duro Felguera has become a leader in
turnkey industrial projects. Among our principal successes is having become the first Spanish company in history to be awarded, as Main Contractor, the construction and commissioning of two gas
combined cycle power generation plants for our client Endesa, namely Son Reus II and Barranco de
Tirajana. Having achieved this objective drives us even more to double our efforts for the future.
STRATEGIC ALLIANCES
Last year when we talked about our own technology or technology in consortium with others, we
referred, in the latter supposition, to the procedure by means of which to acquire this technology, by
securing alliances with the most appropriate technological partners in each case. But, this would
always be based on the fact that the Duro Felguera name should be sufficiently attractive to the large
multinationals in possession of the technology.
Well, the solid performance of Duro Felguera in years past and confirmed throughout 2002, has
allowed us to further increase our prestige in the capital goods sector and to consolidate our strategy.
We are present in each of the business sectors where the Company carries out its purpose backed by
stable, long-term alliances with large multinationals thereby complementing our strengths. This has
been applied with great success till now and we will continue to do so in the future.
In previous General Meetings I have informed you of the various agreements signed with international and foremost companies in the power generation sector where Duro Felguera is at the forefront. During this fiscal year we have added another technological alliance. This was signed with the
English construction company Balfour Beatty to develop high-speed railway track components.
In addition, a joint venture has been set up with the prestigious Japanese industrial group
Mitsubishi Heavy Industries to undertake joint ventures in Europe. This is the first time that the
Japanese company creates a joint venture in Europe to open up new markets. Although initially this
enterprise is foreseen to market, design and manufacture tunnel boring machines, it will later extend
its activities, employing other commercially viable technologies developed by the Japanese multinational in Europe and South America.
It is thanks to these agreements that Duro Felguera has taken a step forward into the infrastructure sector.
The alliances with important Mexican partners aimed at strengthening activities in the petrochemical engineering sector are also worth noting. A majority share in the engineering company Pycorsa
has meant a significant entrance into the Mexican Oil industry.
A major qualitative leap forward has also been made into the of Petrochemical Product Storage
sector, which is carried out by Felguera-IHI. This advance opens up improved perspectives for the
future in this field. Without having to abandon its traditional role of construction and engineering,
Felguera-IHI has evolved towards crude storage management as logistical operator. In addition, the
significant achievements in construction of cryogenic storage tanks have consolidated Duro
Felguera’s position in the regasification of increasingly demanded liquid gas.
It is a great pride for us that top international companies accept alliances with Duro Felguera to
further penetrate into various markets. Even more so when you consider that these alliances are
established without any significant limits for business expansion.
These important developments go to fulfil one of Duro Felguera’s needs and apparent weaknesses, interpreted by some analysts as being the possible lack of technology in the Company. As I already informed you in my previous letter, at last year’s closure the needs expressed in the Company’s
Strategy Scheme to reinforce engineering and manufacturing capacity of capital goods and turnkey
plants have been covered. Duro Felguera is currently focused towards power systems, petrochemical, infrastructure, engineering, erection and start-up of industrial installations.
4
123456 7/8/03 09:54 Página 5
| LETTER FROM THE CHAIRMAN
INVESTMENTS
Another major objective for Duro Felguera during 2002 was to pay particular attention to its tangible assets, in order to maintain the highest quality and to assure delivery schedules whilst at the same
time optimising production costs and results of the multiple business units.
Therefore, in order to improve productivity more than 5 million euros have been invested in modernising machinery, work centres and environments of various industrial and administrative installations in the certainty that this initiative will favour Duro Felguera’s competitiveness.
Attention has also been focused on the corporate Image. Significant financial resources have been
allocated to increase communication capacity, to make Duro Felguera known both internally and
externally among clients, suppliers, and shareholders, to institutions of all kinds and the social setting where the Company carries out its activities.
The magnificent opportunities that Internet has to offer have been acknowledged as one of the
methods to achieve this objective. The permanently updated Duro Felguera website contains information considered of general interest and is available to the shareholders and to anybody that wishes
to make us a virtual visit.
At the same time, the Shareholders Bulletin hosted on the website is updated every three months.
This substitutes the traditional hardcopy format and includes a summary of the mandatory report that
is periodically sent to the Comisión Nacional del Mercado de Valores (CNMV).
HUMAN RESOURCES
In the Company’s Human Resources area the process to optimise resources has continued. This
has been developed in the usual climate of understanding and good relations with the only exception
of the conflicts which arose just before the union elections at Felguera Calderería Pesada and
Felguera Calderería Pesada Servicios causing some tension, though this has gradually eased.
The Training schemes, which have been of such success to Duro Felguera have continued. These
have included both occupational and continuous training and are being developed in cooperation with
the National Institute for Employment (Instituto Nacional de Empleo), taking place at Duro Felguera
Training Centres. Different types of professional courses are offered geared to the needs of the
Company’s activities. Trained personnel have been taken on in the various workshops and departments of the Company and its subsidiaries.
We are also pleased to inform you that last 25 September, in a letter to the United Nations
Secretary General, Kofi Annan, Duro Felguera expressed its deep interest in adopting, supporting and
promoting within its area of influence the fundamental values in the fields of Human Rights, Labour
Relations and respect for the Environment sponsored by the Global Compact. Duro Felguera has
expressed a wish to include the commitment in its objectives to comply faithfully with the nine
Fundamental Principles on which the Global Compact stands. The necessary internal measures will
be taken to carry this out.
GOOD GOVERNANCE
The incorporation of Duro Felguera shareholders onto the Board of Directors representing major
companies from diverse sectors within Asturias has aided certain business transactions affording
successful cooperation from these incorporations. Following the Code of Good Governance these
transactions have been checked and approved by the Board without intervention of the interested parties. Actions taken in these types of operations are already regulated in the Board’s Rules of Conduct
to ensure greater transparency of information throughout Duro Felguera’s activities.
I would also like to refer to Duro Felguera’s constant concern in responding to the demands of
industrial modernity as well as adapting to the business environment where its activities take place.
The study to update the Code of Good Governance, which been in force in Duro Felguera since 2000
started in 2002.
The Board of Directors Advisory, Audit and Strategy Committees were set up in the year 2000. It is
in this manner that Duro Felguera was one step ahead of what today is a reality and, in some cases,
legally mandatory for companies whose shares are traded on the stock markets, as is our case.
5
123456 7/8/03 09:54 Página 6
Subsequently, when the Finance Act (Ley Financiera) of November 2002 came into force, Duro
Felguera already had an Audit Committee with its own rules of governance.
It is foreseen that in 2003 the study will continue so that the Board may approve the updated Code
of Governance. In addition, Corporate Management Procedures regulating the Company’s Governing
Bodies are to be established, adapted to the obligations and recommendations of the European
Community Directives that are or will come into force, as well as the already mentioned Finance Act
and other legal requirements within Spanish legislation.
POST FINANCIAL CLOSURE EVENTS
Even though these events occurred after the year’s financial closure, they commenced before it
finalised. It is necessary to refer to the call received from the Sociedad Estatal de Participaciones
Industriales (SEPI) in which Duro Felguera was requested to study the possibility of acquiring shares
in Babcock Borsig España, S.A., a company resulting as the product of the privatisation process of
Babcock Wilcox Española, S.A.
During this process, a confidentiality agreement was subscribed to whilst looking into this possibility and the examining the documentation required to come to a decision. It is public knowledge that
once this documentation was examined and the circumstances surrounding the process were taken
into account, Duro Felguera’s Board of Directors desisted from acquiring the previously mentioned
shares.
We have come a long way since 1994, when I first had the honour of presiding over the Board of
Directors of this great Company. There have been several obstacles, some of them quite large. We
can now see that the strategic objectives we had at the time were sound, and I am pleased to say that
they have been met in their totality. As a consequence, we look to the future with optimism; aware of
the efforts that have to be made, but convinced that the Company’s team of people and our approach
to the business will bear the fruits that our Shareholders expect.
I would like to take this opportunity in addressing you, the Shareholders, to convey our utmost
appreciation for placing your trust on this Board of Directors and its Chairman. To end, I wish to
transmit our optimism for the Company’s future, the Shareholders and Personnel, as well as our
commitment to make every effort and sacrifice to achieve our greatest expectations for the future.
Many thanks to you all.
Ramón Colao Caicoya
CHAIRMAN
6
123456 7/8/03 09:54 Página 7
CORPORATE
GOVERNANCE
123456 7/8/03 09:54 Página 8
CORPORATE
GOVERNANCE
Duro Felguera, S.A. was set up for an indefinite period of time on 22 April 1900
under the name of Sociedad Metalúrgica Duro Felguera, S.A. On 25th July 1991 the
company changed its name Grupo Duro Felguera, S.A. and on 26th April 2001 it subsequently adopted its current name, DURO FELGUERA, S.A.
To sum up, the Company’s corporate purpose is to carry out engineering activities,
construction, manufacturing, erection and assembly in the steelworks, boilermaking, smelting and capital goods areas and to construct Industrial Plants awarded
on a turnkey basis, as well as provide services, market and create industrial, commercial and service companies. It may also acquire and hold fixed or variable income securities.
In 1991 Duro Felguera, S.A. completed the process of transforming the various
divisions via which it carried out the company’s multiple business activities into
legally independent companies, reordering the human, material and financial
resources of the Industrial Group. The company structure has currently been reorganised establishing an organisation chart divided into the different lines of business,
illustrated in the chart on pages 44 and 45 of this report under the heading
“Corporate Structure”.
The most important Lines of Business are constituted by: the Power Systems Line
operating as Duro Felguera, S.A. under the umbrella of the Parent Company; Duro
Felguera Plantas Industriales, S.A., Duro Felguera Equipos y Montajes, S.A., both of
which have the same Board of Directors as the Parent Company; the Mining and
Handling Line and the Storage Line.
As it has always done, the Parent Company continues to coordinate and support
the financial activities of its subsidiaries both in their relationships with the credit
entities and in centralising the treasury of all the subsidiaries.
This report includes data relative to the consolidated group, providing a breakdown of business and information on the companies that go to make up the group as
well.
Duro Felguera, S.A shareholders’ equity as at 31 December 2002 consisted of
14.877.421 fully subscribed and paid registered shares represented by account
entries, each with a par value of three euros. All the shares are listed on the Madrid,
Barcelona and Bilbao stock exchanges and carry the same voting and dividend rights.
As at 31 December 2002, according to the data submitted to the Comisión Nacional
del Mercado de Valores (CNMV), the following parties hold a substantial interest of
3% or more in the Company shareholders’ equity:
TSK, Electrónica y Electricidad, S.A.
IMASA, Ingeniería Montajes y Construcciones, S.A.
Duro Felguera, S.A., management holding tied shares
Cartera de Inversiones MELCA
Morgan Stanley International
Caja de Asturias
15.87%
9.53%
5.66%
5.00%
5.00%
5.00%
The rest of the Company’s share interests are less significant being lower than 3%,
and of which there is no real reference until the Annual General Meeting takes place,
the shareholders being the Company’s ultimate governing body.
8
123456 7/8/03 09:54 Página 9
| CORPORATE GOVERNANCE
| BOARD OF DIRECTORS
(From left to right)
Standing
Mr. Juan Carlos Torres Inclán, Mr. Marcos Antuña Egocheaga, Mr. José Manuel Agüera Sirgo, Mr. Guillermo Quirós Pintado,
Mr. Gonzalo Álvarez Arrojo, Mr. José Manuel Cuesta Viña, Mr. Acacio Rodríguez García
Seated
Mr. Sabino García Vallina, Mr. Saturnino Martínez Zapico, Mr. Florentino Fernández del Valle, Mr. Ramón Colao Caicoya,
Mr. Tomás Casado Martínez, Mr. José Luis García Arias
A representative from each of the previously mentioned substantial shareholding interests is a member of the
Company’s Board of Directors, and thus TSK Electrónica y Electricidad, S.A., is represented on the Board as well as PHB
Weserhütte, S.A., being a company controlled by the former. In the same manner IMASA, Ingeniería Montajes y
Construcciones, S.A. is Board member of the company and Proyectos Modulares PMP, S.A., company controlled by the former. Also making up the Board are Inversiones EL Piles, S.L. represented by Mr José Luis García Arias. Mr. Juan Carlos
Torres Inclán and Mr. José Manuel Cuesta Viña are members of the group of management holding tied shares.
Mr. Ramón Colao Caicoya
Chairman
Mr. Florentino Fernández del Valle
Director. General Manager
Mr. José Manuel Cuesta Viña
Director
Mr. Juan Carlos Torres Inclán
Director
Mr. Marcos Antuña Egocheaga
Director
Director. Represented by Mr. Saturnino Martínez Zapico
PROYECTOS MODULARES, PMP, S.A.
Director. Represented by Mr. Tomás Casado Martínez
T.S.K. Electrónica y Electricidad, S.A.
Director. Represented by Mr. Sabino García Vallina
P.H.B. Weserhütte, S.A.
Director. Represented by Mr. Acacio Rodríguez García
Mr. José Luis García Arias
Director
INVERSIONES EL PILES, S.L.
Director. Represented by Mr. Gonzalo Álvarez Arrojo
Mr. José Manuel Agüera Sirgo
Director
Mr. Guillermo Quirós Pintado
Secretary (Non Director)
Mr. Secundino Felgueroso Fuentes
Assistant Secretary (Non Director)
Mr. Agustín Tomé Fernández
Legal Advisor
The Board of Directors, in accordance with its regulations, met once a month last year except during the month of
August when it does not usually meet, and twice in February to examine and approve the interim accounts and the current
year’s budget. A further five meetings have also been held to deal with urgent matters.
9
123456 7/8/03 09:54 Página 10
CORPORATE
GOVERNANCE RULES
Since February 1999 Duro Felguera, S.A. has an Internal Code of Good Governance which was drawn
up to comply with Article 1 of Royal Decree 629/1993 dated 3 May and with the Comisión Nacional del
Mercado de Valores (CNMV) Circulars 12/1998 and 14/1998, relative to management criteria of treasury
stock on the market and to Relevant Events, and to its communication to the CNMV and the market.
The Company adopted a series of Procedures in February 2000, laid out in the Board’s declaration of
acceptance, stating its intention to establish and regulate good corporate management to adapt to
market demands which it started with the creation of three Committees.
The Committees that were set up and their respective members are as follows:
| BOARD COMMITTEES
Audit Committee
INVERSIONES EL PILES, S.L.
Chairman
Member. Represented by Mr. Gonzalo Álvarez Arrojo
Member
Secretary
Strategy Committee
Chairman
Member
Member
Member
Member. Represented by Mr. Saturnino Martínez Zapico
Member. Represented by Mr. Acacio Rodríguez García
Secretary
Advisory Committee
Chairman
Member. Represented by Mr. Sabino García Vallina
Member
Member
Member. Represented by Mr. Saturnino Martínez Zapico
Secretary
All of the Board Committees met periodically throughout 2002. A Committee meeting was held
every month last year and there were some months when several meetings took place.
In line with Law 44/2002 of 22 November 2002, the Board of Directors has started to update the good
corporate governance procedures, which are also to include Internal Code of Governance to regulate
the financial relations between the company and some of the shareholders who are present on the
Board. On the same vein, it also intends to commit itself to updating these Internal Codes and to
inform those who are a part of the company’s organisation of their content.
In addition, the Board also wishes to propose, for approval in the Annual General Meeting of
Shareholders, a modification to be incorporated in the Company’s statutes, i.e. the existence of an
Audit Committee. Also to be approved are the updated Code of Governance.
10
123456 7/8/03 09:54 Página 11
| CORPORATE GOVERNANCE
| REMUNERATION OF BOARD MEMBERS
Each of the Board directors receives 601 euros before taxes for expenses to attend the meetings held by the
Board. Once a year and after the company’s accounts have been approved, each director receives a statutory
remuneration, which in 2002 reached the sum of 14,664.70 euros before taxes.
The company’s financial report shows the sum of what each of the directors actually received for all concepts.
In compliance with legal requirements, remuneration of the Chairman and three of the Board directors, who are
in turn employed by the Company, has also been included. Consequently, the financial report shows a total
amount received by the Board directors of 1,016,368 euros before taxes by the end of the financial year.
| ECONOMIC RELATIONS WITH THE SHAREHOLDERS
PRESENT IN THE COMPANY BOARD
In 2002 certain Shareholders conducted business transactions with Duro Felguera, S.A., which were considered of mutual benefit. The Board examined these operations and once they were proved to be licit, that they
did not go against Duro Felguera’s or the Shareholders’ interests but were in fact of real benefit to the Company,
they were approved.
The business operations mentioned above in 2002 were as follows:
COMPANY
TSK, Electrónica y Electricidad, S.A.
ARS, S.A.
ARSIDE, C.M.
IMASA, Ingeniería Montajes y Construcción, S.A.
AMOUNT IN EUROS
8,577,313.64
201,000.00
12,146.34
750,438.90
3,423,256.10
| AUDITORS AND THEIR REMUNERATION
The Company’s accounts were audited in 2002 by Pricewaterhouse Coopers, Auditores, S.L., who were
appointed in the Annual General Meeting held on 19 June 2002.
Auditors Remuneration:
During 2002 the auditors received a total amount of 188.800 euros for their work. Said amount is broken
down as follows:
Audit of Duro Felguera, S.A. & consolidated group
Advisory services to Finance Management, daily allowance & travel expenses
Audit of Subsidiaries’ accounts
37,576 euros
30,800 euros
120,424 euros
| COST OF ORGANISING THE ANNUAL GENERAL MEETING
The Annual General Meeting was published in the Official Bulletin of the Register of Companies (Boletín
Oficial del Registro Mercantil) and in the Asturias newspapers; La Nueva España, La Voz de Asturias and El
Comercio, as well as in the national, financial daily, Expansión.
Costs for publishing the announcement came to 16,054.26 euros.
The hire cost of the auditorium to hold the meeting, audiovisual means, the installations required as well as
the attentions bestowed on the Shareholders that attended the meeting came to a total of 20,865.40 euros.
11
123456 7/8/03 09:54 Página 12
Within the Company’s good corporate management procedures, the creation of a series of work committees
was agreed. These have several goals and have been especially active throughout 2002. The members of each
work committee are shown below.
Management Committe
Mr. Mariano Blanc Díaz
Mr. Eduardo del Valle Dago
Mr. Javier González Canga
Mr. Pedro García Fernández
Mr. Félix García Valdés
Mr. Antonio Martínez Acebal
Mr. Ángel Peña Menéndez
Mr. Gaspar Antuña Suárez
Finance Manager
Organisation & Human Resources Manager
Development & Marketing Manager
General Secretary and Legal Manager
Duro Felguera Plantas Industriales, S.A. General Manager
Duro Felguera Equipos y Montajes, S.A. General Manager
Mining and Handling General Manager
Power Systems General Manager
Chief Executive Officer Felguera – I.H.I., S.A.
Duro Felguera México, S.A. de C.V. General Manager
Management Control Manager
Image Committee
Mr. Eduardo del Valle Dago
Mr. Joaquín Olay Rodríguez
Mr. Jaime de Pablo Torrente
Organisation & Human Resources Manager
Equity Manager
Advisor- Dos Folios y Medio, S.A.
Risk Committee
Finance Manager
Project Management Control Committee
12
Finance Manager
123456 7/8/03 09:54 Página 13
APPROVAL
OF PROPOSALS
BY THE BOARD
OF DIRECTORS
123456 7/8/03 09:54 Página 14
APPROVAL OF PROPOSALS
BY THE BOARD OF DIRECTORS
Report submitted by Mr. Guillermo Quirós Pintado, Secretary of the Board of Directors, stating that
the Members of the Board signed hereto at the end of the meeting held on 27 March 2003 in approval of
the Balance Sheet, Profit and Loss Account, Financial Report and Management Report related to the fiscal year closed on 31 December 2002. This has been initialled by me in its entirety and countersigned by
The Chairman and includes a page signed by the Directors stating their name, surname and office after
their signatures which I declare are bona fide.
In Oviedo on 27 March 2003
Guillermo Quirós Pintado (Secretary of the Board of Directors)
PROYECTOS MODULARES, PMP, S.A.
INVERSIONES EL PILES, S. L.
Chairman
Director
Director
Director
Director. Represented by
Mr. Saturnino Martínez Zapico
Mr. Tomás Casado Martínez
Mr. Sabino García Vallina
Mr. Acacio Rodríguez García
Director
Mr. Gonzalo Álvarez Arrojo
Director
| PROPOSAL OF APPLICATION OF PROFITS OF DURO FELGUERA, S.A.
At the Board of Directors meeting on 27 March 2003 it was agreed to apply profits and distribution of
dividends (year profits plus the previous year’s retained earnings) as follows:
To Legal Reserve
To Voluntary Reserve
Retained Earnings
Dividends
(in thousand euros)
The distribution of dividends was approved at 0.25 euros per share.
The General Meeting attendace bonus is proposed at 0.02 euros per share.
14
506
586
298
3,719
123456 7/8/03 09:54 Página 15
| APPROVAL OF PROPOSALS BY THE BOARD OF DIRECTORS
| AGREEMENTS PROPOSED BY THE BOARD OF DIRECTORS
TO THE SHAREHOLDERS GENERAL MEETING
The Company Board Meeting held on 27 March 2003 and attended by the Legal Advisor, agreed to
convene the Annual General Meeting of Shareholders at 12:00 on 25 June 2003 to be held at the
Auditorio Príncipe Felipe in Oviedo. If the legally required quorum was not met, then the meeting
would be held on the following day, 26 June 2003 at the same place and same time in order to deliberate and agree upon, if such was the case, the following items:
| AGENDA
FIRST | Analysis and approval, if such is the case, of the management report and annual
accounts which include Balance Sheet, Profit and Loss Account and Financial
Report for Duro Felguera Sociedad Anónima and Duro Felguera, Sociedad Anónima
and its dependent companies (Consolidated) for the fiscal year 2002, as well as the
proposed application of profits for the year and the General Meeting attendance
bonus.
SECOND | Approval of the Board of Directors Management over 2002.
THIRD | Confirmation, re-election and appointment of Board Members, if such is the case.
FOURTH | Authorisation to the Board to acquire shares in the company or its subsidiaries in
accordance with Art. 75, First Additional Clause and conformities of the Revised
Company Law (Texto Refundido de la Ley de Sociedades Anónimas), specifying the
ways and means of acquisition, maximum number of shares, maximum and minimum prices and duration of the authorisation.
FIFTH | Appointment or re-election of the Auditors as per Art. 204 of the Revised Company
Law.
SIXTH | Delegation of authority indistinctly in favour of the Chairman, the Secretary of the
Board of Directors or his vice-secretary to legalise and execute the agreements
reached, to file the Annual Accounts and the Auditors Report with the necessary
authorities.
15
123456 7/8/03 09:54 Página 16
123456 7/8/03 09:54 Página 17
FINANCIAL
INFORMATION
123456 7/8/03 09:54 Página 18
RESULTS
18
123456 7/8/03 09:54 Página 19
| FINANCIAL INFORMATION
The 2002 financial year has been marked by yet another increase in business turnover which mainly
corresponds to the completion of the Combined Cycle Power Generation Plants awarded at the end of 1999,
the start of construction of two new Combined Cycle Plants awarded this year and the development of a
chloride products plant for PEMEX.
In addition, two tunnel boring machines for Mitsubishi Heavy Industries are currently being manufactured. It is expected that the Company’s presence in this sector will increase as a result of the agreement
reached with this multinational.
The Profit from Ordinary Activities amply surpasses those of 2001, going from 4,364 thousand euros to
12,261 thousand euros. The Consolidated Profit before taxes however, is only slightly improved. This is due
to provisions made in prudence for costs and expenses inherent to two cases currently in the courts.
Nevertheless, the Company expects satisfactory resolutions of these cases.
CONSOLIDATED
Year
1999
Year
2000
Year
2001
Year
2002
183,763
227,970
356,476
463,996
828
9,432
4,364
12,261
Profit before taxes
6,631
11,021
8,193
8,588
Profit after taxes
4,903
8,524
5,859
6,320
419
1,124
750
627
4,485
7,400
5,109
5,693
In Thousand Euros
Net Turnover
Profit from Ordinary Activities
Profit attributable to minority shareholders
Profit attributed to the Parent Company
As to the financial situation, capital and reserves are 67,204 thousand euros, working capital is 75,858
thousand euros and cash is 35,403 thousand euros.
19
123456 7/8/03 09:54 Página 20
CONSOLIDATED
BALANCE SHEETS
SUMMARY
Data expressed in thousand ¤
ASSETS
Formation expenses
Intangible Fixed Assets
Tangible Fixed Assets
Investments
Long-term Debt
TOTAL ASSETS
Goodwill on Consolidation
Deferred expenses
Inventories
Debtors
Current Asset Investments
Cash at bank and in hand
Prepayments and accrued income
TOTAL CURRENT ASSETS
TOTAL ASSETS
LIABILITIES
Share capital
Reserves
Consolidated Profit and Loss
Minority Profit and Loss
Payable Dividend
CAPITAL AND RESERVES
Minority shareholders
Negative difference on consolidation
Deferred income
Provisions for liabilities and charges
Creditors:
amounts falling due after more than one year
Issue of Bonds
Bank loans
Other Creditors
Creditors:
amounts falling due in less than one year
Bank loans and overdrafts
Trade Creditors
Other Creditors
Provisions for liabilities
and charges and other trade provisions
Accruals and deferred income
TOTAL LIABILITIES
20
1996
1997
1998
1999
2000
2001
2002
247.77
152.57
336.46
294.06
612.68
453.35
351.39
1,620.18
1,857.40
1,370.55
1,394.73
1,421.97
1,501.58
10,276.72
31,933.70
33,731.98
35,259.69
40,724.72
47,862.13
53,102.19
41,662.35
19,826.69
6,376.32
12,393.67
15,228.26
13,851.75
15,664.75
10,904.86
7,172.24
5,440.86
2,427.30
8,548.85
2,038.06
0.00
0.00
60,800.58
47,559.13
51,787.67
66,190.62
65,786.59
70,721.87
63,195.32
629.74
10.70
4.75
0.09
0.07
104.86
87.74
94.72
11.06
9.72
4.03
3.19
1.12
407.90
32,290.69
25,640.95
24,047.59
19,802.87
23,412.57
46,175.96
17,899.86
77,052.40
96,478.19
89,225.04
84,215.98
140,970.24
122,137.84
257,402.86
45,437.64
108,315.58
78,225.93
52,890.44
17,273.88
36,436.72
25,745.10
8,189.55
12,024.37
9,322.01
6,810.84
7,627.54
12,837.67
9,657.60
639.94
207.37
231.51
207.31
231.62
58.49
200.81
163,610.22
242,666.46
201,052.08
163,927.44
189,515.85
217,646.68
310,906.23
224,516.22
290,241.40
252,849.56
230,122.16
255,410.49
288,457.41
375,139.19
1996
1997
1998
1999
2000
2001
2002
36,497.65
36,497.65
44,283.55
44,632.26
44,632.26
44,632.26
44,632.26
1,015.41
3,490.31
10,388.90
14,397.12
15,008.97
16,974.78
16,879.99
2,998.78
8,046.73
7,770.49
4,903.32
8,524.22
5,859.56
6,319.21
-576.70
-272.35
-316.04
-418.79
-1,124.52
-750.25
-626.70
0.00
-1,459.91
0.00
0.00
0.00
0.00
0.00
39,935.14
46,302.43
62,126.90
63,513.91
67,040.93
66,716.35
67,204.76
1,465.41
1,737.85
2,053.89
2,472.68
3,755.41
3,989.38
4,878.03
116.18
114.25
109.86
109.86
110.03
0.99
0.95
817.08
948.58
5,334.14
6,628.04
6,041.66
6,890.86
7,198.40
34,508.69
34,946.46
48,965.20
13,457.50
7,255.81
6,863.14
12,171.67
30,460.45
57,663.35
23,951.21
11,282.74
11,820.49
12,005.77
48,637.64
24,040.48
1,552.65
632.62
632.62
0.00
0.00
31,992.99
21,391.07
9,731.27
10,389.57
11,956.13
48,608.79
27,545.17
2,915.28
1,629.88
1,007.49
918.85
798.30
49.64
28.85
117,213.27
148,528.48
110,308.36
132,657.43
159,386.16
191,990.92
235,047.74
28,486.75
58,608.78
27,127.75
33,362.32
25,718.08
27,483.52
54,099.80
75,206.39
71,569.15
65,697.66
56,945.07
101,657.25
141,768.03
149,675.55
10,108.55
11,460.72
12,686.18
38,423.30
22,436.64
18,271.34
25,508.04
3,178.77
6,343.82
4,665.87
3,872.34
9,531.88
4,420.66
5,745.71
232.81
546.01
130.90
54.40
42.31
47.37
18.64
224,516.22
290,241.40
252,849.56
230,122.16
255,410.49
288,457.41
375,139.19
123456 7/8/03 09:54 Página 21
CONSOLIDATED PROFIT
AND LOSS ACCOUNTS
SUMMARY
Data expressed in thousand ¤
Mean Sales National
Mean Sales Exports
TOTAL SALES
Reduction in inventories of finished goods
and work in progress
Work for Fixed Assets
Other Operating Revenue
Production
Raw materials and consumables
Added Value
Staff Costs
Other operating charges
EBITDA
Fixed Asset Depreciation
Changes in Trade Provisions
Operating Profit
Financial Revenue
Financial Expense
Consolidated share in company losses
Good will arising on consolidation written off
Profit from ordinary activities
Extraordinary Income
Extraordinary Expense
Consolidated profit before taxes
Company Tax
Profit for the year
Profit attributable to minority shareholders
Profit for the year attributed
to the Parent company
1996
1997
1998
1999
2000
2001
2002
139,482.72
110,387.48
95,165.97
105,687.47
159,946.94
265,882.48
309,821.56
78,474.14
150,241.94
104,628.03
78,075.15
68,022.55
90,593.61
154,173.00
217,956.86
260,629.42
199,794.00
183,762.62
227,969.49
356,476.09
463,995.56
9,384.65
-7,326.42
3,051.61
-5,904.10
4,709.99
22,641.53
-30,918.40
601.22
959.82
1,336.04
993.35
5,225.61
4,057.42
1,641.97
1,179.77
2,155.44
868.24
1,247.05
2,224.12
3,046.07
884.38
229,122.50
256,418.26
205,049.89
180,098.92
240,129.21
386,221.11
435,603.51
131,939.15
154,991.91
106,419.01
85,645.69
124,844.70
234,943.46
257,818.77
97,183.35
101,426.35
98,630.88
94,453.23
115,284.51
151,277.65
177,784.74
54,262.39
55,786.59
63,910.17
63,456.47
71,335.74
105,689.16
106,703.75
28,212.21
29,820.12
27,973.38
23,802.30
24,720.85
35,253.45
44,267.78
14,708.75
15,819.64
6,747.33
7,194.46
19,227.92
10,335.04
26,813.21
2,708.44
2,960.63
2,800.75
2,796.82
3,408.83
3,970.04
4,986.44
97.54
3,482.00
-819.76
-207.22
1,966.04
659.22
3,961.44
11,902.77
9,377.01
4,766.34
4,604.86
13,853.05
5,705.78
17,865.33
4,952.63
9,413.69
9,862.09
7,313.24
3,262.88
2,740.02
4,649.07
11,308.48
11,387.68
12,857.01
11,077.46
7,639.19
4,061.81
10,316.64
1,904.38
1,853.09
15.80
0.07
0.06
23.10
136.28
168.01
25.91
52.77
13.08
44.46
43.60
71.74
7,283.29
9,230.20
1,734.45
827.63
9,432.34
4,363.49
12,262.30
1,425.58
4,062.63
3,629.50
8,696.51
2,598.69
7,189.91
3,856.17
4,917.63
3,651.18
2,180.12
2,893.40
1,009.66
3,360.07
7,530.78
3,791.24
9,641.65
3,183.83
6,630.74
11,021.37
8,193.33
8,587.69
792.46
1,594.92
-4,586.66
1,727.42
2,497.15
2,333.77
2,268.48
2,998.78
8,046.73
7,770.49
4,903.32
8,524.22
5,859.56
6,319.21
576.70
272.35
316.04
418.79
1,124.52
750.25
626.70
2,422.08
7,774.38
7,454.45
4,484.53
7,399.70
5,109.31
5,692.51
21
123456 7/8/03 09:54 Página 22
STOCK EXCHANGE
INFORMATION
DURO FELGUERA (MDF.MC)
Quotation at 31 December
Year’s High
Year’s Low
Year Average
Average Market (million ¤)
Trading days
Quotation Frequency
Average Volume (n. of shares)
Profitability per dividend
2000
5.85
8.34
5.37
6.65
98.93
249
100 %
52,369
4.62%
1998 1999
1997
1996
6.90
7.15
9.80
7.96
8.29
13.04
14.00
8.26
6.25
5.53
6.49
2.58
7.11
9.50
10.16
3.99
48.47 123.44 115.38 105.78
250
248
252
253
100 % 100 % 100 % 100 %
72,406 138,459 102,258 45,159
- 3.36% 3.91%
-
2001 2002
6.80
5.60
8.10
7.6
5.10
4.56
7.14
6.49
106.22 96.55
249
250
100 % 100 %
24,534 8,050
5.44% 4.82%
(paid dividend of the year / closing quotation)
During the 2002 trading year, figures have been
unusually low. Some of the significant factors that
we believe have contributed to share behaviour
are: the size of the company, the holding of substantial stakes in the company which have remained stable throughout the past few years and the
stock market environment in general.
We can safely say that 2002 was not a good year
for share investment and, as was to be expected,
our values did not escape the general tendencies
of the markets. However, the behaviour of Duro
Felguera shares in comparison with the Madrid
Stock Exchange General Index is worth noting:
whilst the Index marked a fall of 23.1%, Duro
Felguera only decreased by 17.65%. If we look at
the PER, the market average was 16.17 whilst
Duro Felguera reached 16.47.
As is becoming usual over the last few years,
during the early months of 2003, the quotation
experienced a sharp rise when approaching the
Annual General Meeting date and the average
quote value during the first week of May 2003
reached 6.6 euros per share.
DURO FELGUERA
90 periods moving average
Madrid Stock Exchange Gen. Index
8.0
7.5
7.0
6.5
6.0
5.5
5.0
4.5
4.0
Volume (thousands)
100
90
80
70
60
50
40
30
20
0
10
0
22
Dec-01
Jan-02
Feb-02
Mar-02
Apr-02
May-02
Jun-02
Jul-02
Aug-02
Sep-02
Oct-02
Nov-02
Dec-02
Jan-03 Feb-03
Mar-03
123456 7/8/03 09:54 Página 23
PERFORMANCE RECORD
Data expressed in million euros
35.00
11.00%
10.00%
30.00
26.81
8.01%
6.42%
6.17%
20.00
7.00%
19.23
6.16%
15.82
14.71
6.00%
5.00%
15.00
3.99%
10.34
3.29%
10.00
9.00%
8.00%
25.00
9.23
7.28
7.77
8.05
5.86
8.52
1.73
3.00
6.32
0.83
1996
1997
1998
Profits from Ordinary Activities
Fiscal Year Profits
1999
2.00%
1.00%
4.36
4.90
0.00
4.00%
3.00%
2.68%
7.19
6.75
5.00
12.26
9.43
0.00%
2000
2001
2002
EBITDA
EBIDTA (% s/Production)
LIQUID ASSETS & BANKING DEBTS
140.00
120.34
120.00
102.71
100.00
90.60
87.55
80.00
59.70
56.03
60.00
49.27
43.09
40.00
36.11
53.63
35.40
48.52
39.44
20.00
24.90
0.00
1996
1997
1998
1999
2000
2001
2002
Current asset investments + Treasury
Banking Debt
WORKING CAPITAL & NET BANKING DEBT
100.00
90.74
94.14
75.86
80.00
60.00
67.31
46.40
40.00
30.13
25.66
31.27
20.00
11.21
2.40
0.00
-20.00
-9.83
-16.61
-39.03
-29.74
-40.00
-60.00
1996
1997
1998
1999
2000
2001
2002
Working Capital
Net Banking Debt
PRODUCTION VS. PERSONNEL COSTS
70.00%
500.00
435.60
450.00
386.22
400.00
60.00%
350.00
55.00%
300.00
50.00%
256.42
240.13
250.00
200.00
65.00%
45.00%
205.05
180.10
229.12
150,00
31.17%
35.23%
100.00
54.26
29.71%
106.70
24.50%
63.91
23.68%
63.46
71.34
27.36%
21.76%
0.00
1997
35.00%
30.00%
55.79
50.00
1996
40.00%
105.69
25.00%
20.00%
1998
1999
2000
2001
2002
Production
Personal Costs
% Personal Costs Vs Production
23
123456 7/8/03 09:54 Página 24
123456 7/8/03 09:55 Página 25
AUDITOR’S
REPORT
123456 7/8/03 09:55 Página 26
AUDITOR’S
REPORT
26
123456 7/8/03 09:55 Página 27
| AUDITORS REPORT
27
123456 7/8/03 09:55 Página 28
123456 7/8/03 09:55 Página 29
INDUSTRIAL
ACTIVITES
& STRATEGIES
123456 7/8/03 09:55 Página 30
INDUSTRIAL
ACTIVITIES
| COMMERCIAL ACTIVITY
EVOLUTION OF ORDER INTAKE
(in millions euros)
Total Order Intake
Domestic
International
1999
2000
2001
2002
386.49
295.40
91.09
300.37
244.07
56.30
335.99
149.00
186.99
558.17
473.08
85.09
Order intake in 2002 surpassed predictions by
almost 75 % and, as may be observed in the table
attached, by over 66% with respect to 2001. This,
among other reasons is due to, the materialisation
of contracts which were previously considered as
intentional and to the slight advance made in the
power systems sector in which two important combined cycle projects have been awarded.
By Business Lines, order intake during 2002 has
been as follows:
EVOLUTION
OF ORDER INTAKE
(in millions euros)
558.17
600.00
550.00
500.00
300.37
400.00
350.00
335.99
386.49
450.00
200.00
203.10
185.50
300.00
250.00
The Power Systems Line, which since 2001 operates as a department within the parent company,
has seen its leadership materialise after surpassing
the figure of 7.600 MW for constructed gas power
generation plants as a result of two considerable
turnkey contracts in Spain; Barranco de Tirajana
Combined Cycle Plant on the Canary Islands and
Phase II of Son Reus. The Power Systems
Department is on the sidelines and in an excellent
position to deal with those projects that are pending
their launch, both abroad and in Spain. They are
mindful of the opportunities in the European power
systems sector resulting in the necessary revamping
of currently operating power generation plants, and
for which this Department is fully experienced and
offers total guarantees.
Mompresa maintains its traditional business in
the assembly, erection, maintenance and overhaul of
generation units made up fundamentally of steam
and gas turbines operating in power generation
plants for the most relevant companies in the sector.
Its almost permanent presence in these works and
the constant effort made in re-training its technicians and operators has afforded the confidence of
technological companies and clients, which is also a
150.00
100.00
50.00
0.00
1997
30
On the other hand, Duro Felguera, S.A. has not
been exempt from suffering, in part, the grave consequences of the international economic situation.
This has led on the one hand, to having to support
considerable delays in signing contracts that were
ready to be consolidated, and on the other, having to
wait for those projects which suffered delays in their
launch, in the hope that this is only temporary.
Notwithstanding, our experience and flexibility has
allowed us to sustain our presence and secure our
future in foreign markets, whilst at the same time
reinforcing our capacity to take on contracts on the
domestic market and in specialised sectors, as well
as stabilising our leadership.
1998
1999
2000
2001
2002
123456 7/8/03 09:55 Página 31
| INDUSTRIAL ACTIVITES & STRATEGIES
% ORDER INTAKE
PER BUSINESS LINES
59%
POWER SYSTEMS
MEXICO 3%
STORAGE 8%
leaders in the logistic systems and automated warehouse storage sector.
22%
EQUIPMENT & ERECTION
5% MINING
3%
& HANDLING
INDUSTRIAL
PLANTS
positive factor in consolidating its presence in new projects. Fruit of this confidence by equipment manufacturers has been the award of contracts in 2002 by new
clients, and in European countries where new markets
opened up to them thereby offering new expectations.
Despite the recession suffered in the steelworks
industry, the experience and knowledge of Duro
Felguera Plantas Industriales, S.A. has aided them to
win an engineering and construction contract for a gasholder for USINOR in Dunkerque. They have also been
awarded the execution of a contract for the SOLAC
Atlantic installations in Dunkerque, consisting of engineering upgrading, development and manufacture of what
can be considered one of the largest “torpedo wagons”
for transporting pig-iron. These have an effective load
capacity of 450 Tn and are more than 35 m in length overall, conferring experience and expectations for similar
projects in the future. For the steel rolling mill belonging
to Aceralia, Avilés, they were awarded the turnkey project
to modify the Temper III mill.
In the civil works for large infrastructures sector, in
2002 Duro Felguera Plantas Industriales, S.A. was awarded the engineering and supply of a complete Back Up
for a Tunnel Boring Machine, a TBM, by MITSUBISHI
HEAVY INDUSTRIES.
The Logistic Systems Unit operating within Duro
Felguera Plantas Industriales, S.A., has managed to gain
three substantial contracts for Nireo Corp. General of
Toledo, Izar in Ferrol and Sika in Madrid, respectively,
with which this unit consolidates its position among the
In the Mining and Handling area, also within Duro
Felguera Plantas Industriales, S.A., the efforts made
to penetrate the North American market were
rewarded. Felguera Parques y Minas, S.A. obtained
a contract for the Port Management at Long Beach,
which consisted of the design, construction, and
supply of ship loading equipment for bulk cargo. On
the domestic market, contracts similarly worth featuring include a circular mineral stockyard and shiploader for HOLCIM, in Almería and the services and
supply contract for “Medusa Phase I”, project belonging to UNION FENOSA, in La Coruña.
During the business year, the Crane Department
was awarded a contract for two overhead cranes by
VA Stahl-Linz, in Austria.
Once again, the Equipment and Erection Business
Line has managed to close the business year with an
excellent order intake, improving by more than 17 % on
the figure forecasted for 2002. The subsidiaries
making up this line of business have made steady
efforts resulting in achieving their objectives of order
intake for the year by a wide margin, and consolidating
their presence in some of the new markets where they
had established strategies, such as in heavy machinery for road infrastructures, railways, energy, large
laboratories, etc.
Felguera Melt, S.A. has surpassed order intake
expectations by almost 20% for 2002, continuing its
trajectory of securing technology and market expansion, sustained by its product developments in railway track materials and components for wind power
generators. The company maintains its position as
one of the leading suppliers of these products in
Europe.
Felguera Construcciones Mecánicas, S.A., has
based good part of its order intake success on the
aforementioned new markets for Capital Goods in
31
123456 7/8/03 09:55 Página 32
the Public Works sector. Specifically, in the manufacture of tunnel boring machines, it was awarded a
contract to manufacture two machines by MITSUBISHI HEAVY INDUSTRIES, destined to bore tunnels
on the new high-speed railway lines in Spain. This
experience not only goes to demonstrate once again
the capabilities of Felguera Construcciones
Mecánicas, but also maintains the confidence placed
by the principal technological companies in the sector with new industrial and commercial projects in
their sights. Business in the heat recovery steam
generator sector, in the large European laboratories
and hydraulic generation sectors has continued to be
a keynote for this subsidiary.
DISTRIBUTION
DISTRIBUTION
OF INTERNATIONAL BUSINESS
OF INTERNATIONAL BUSINESS
PER BUSINESS LINES
PER BUSINESS LINES
65%
EQUIPMENT & ERECTION
MEXICO 20%
2%
POWER SYSTEMS
13% MINING & HANDLING
EVOLUTION OF ORDER INTAKE
PER BUSINESS LINES
AS A % OVER THE WHOLE GROUP
Felguera Calderería Pesada, S.A., has achieved
good order intake results in 2002 despite a slight
imbalance in the order intake over the year, which
may cause irregularities in following business
periods. It is worth noting however, that over 80% of
order intake was due to foreign contracts of which
those awarded by prestigious engineering and petroleum product companies stand out.
100%
6.9%
9.6%
90%
7.1%
5.9%
80%
22.2%
Foster Wheeler Ibérica, requested several reactors for the Petrox Refinery in Chile and for Bulgaria
the equipment required to revamp an FCC was also
manufactured.
70%
40%
2.6%
60%
PDVSA (Venezuela) awarded a contract for an FCC
unit and for LINDE in Norway, several Pressure
Vessels were manufactured, all of which went over
the 25 million euros figure.
4.8%
50%
40%
30%
29.3%
56.4%
MEXICO
STORAGE
20%
EQUIPMENT
& ERECTION
1.5%
INDUSTRIAL
PLANTS
10%
13.7%
MINING
& HANDLING
POWER SYSTEMS
0
2001
32
2002
Técnicas de Entibación, S.A. (Tedesa) responded
to its strategies to overcome the business decline in
the mining sector and surpassed by 14,6 % its order
intake forecasts for 2002, consolidating its position in
sectors of notable growth such as are communications and energy. Tedesa has become a major supplier of aerials and pylons for high voltage transmission lines. In the Public Works sector, there are two
fundamental activities where Tedesa excels. On the
one hand is the manufacture of support components
and formwork for tunnels, and on the other is the
manufacture of back-up structures for tunnel boring
machines. For the latter, Tedesa carried out a whole
123456 7/8/03 09:55 Página 33
series of detailed investigations that are now having a
significant bearing in opening up new business opportunities for this subsidiary.
EVOLUTION
OF ORDER INTAKE VS. PRODUCTION
(Mil. euros)
ORDER INTAKE
The most noteworthy contracts in 2002 among others
related to its field, are those signed for Libya, consisting
of the manufacture of a process tank to the sum of 1.7
million euros, or for Spain, for the execution of two 5,000
m3 tanks and especially a 100,000 m3 capacity tank for
over 6.9 million euros.
Due to its technical complexity, a special mention
should be made to the contract for the design and construction of a total retention tank to store liquefied gas at
–170ºC at a regasification plant belonging to ENAGAS.
4% F-IHI
43%
POWER SYSTEMS
MINING
& HANDLING 4%
14%
INDUSTRIAL
PLANTS
558.17
300.37
300.00
200.00
383.20
335.99
386.50
400.00
434.89
500.00
100.00
0.00
1999
2000
2001
2002
Apart from the internal and external piping and
accessories, the tank was manufactured in reinforced concrete with internals made of 9% nickel-steel
alloy.
PRODUCTION IN 2002
PER BUSINESS LINES
EQUIPMENT 25%
& ERECTION
600.00
239.64
Felguera-IHI, S.A., has once more amply surpassed
its expectations of order intake for the year 2002 with an
increase of 79 %, reaffirming its position in the storage
sector of Petrochemical products and continuing to actively cooperate in the modernisation of major refineries
and storage plants in Europe and further afield.
PRODUCTION
179.29
Felguera Montajes y Mantenimiento, S.A. has reinforced its growing business in the integral maintenance
services sector and has achieved acceptable levels of
order intake. Given the highly competitive nature of this
line of business, it is notable that the company has been
able to maintain its presence principally in the fields of
power systems, petrochemicals, and steelworks. Its
levels of specialisation and experience have allowed the
company to reorganise and adapt to the immediate
future.
10%
INTERNATIONAL
Duro Felguera México, S.A. de C.V., continues to
lead the way in a sector as relevant as it is the construction and erection of power generation plants in
Mexico whilst at the same time opening up new business opportunities in other sectors, e.g. the
Petrochemical Industry.
Last year order intakes at Duro Felguera México,
S.A. de C.V. continued to increase. The new contracts for the PEMEX Chloride Products Plant and
the SOLUZIONA construction and erection contract
for the gas-fired power plant in Naco Nogales were
among its most notable businesses in 2002.
33
123456 7/8/03 09:55 Página 34
CONSOLIDATED
PRODUCTION FIGURES
(Mil. euros)
383.20
450.00
434.89
500.00
400.00
200.00
179.29
250.00
205.00
300.00
239.64
350.00
150.00
Finally, worth mentioning as proof of the consolidation of Duro Felguera, S.A. in Mexico, is
the investment in a 51% stake of the Mexican
engineering company PYCORSA. This engineering company has been working since 1947 in
both the public and private sectors of the
energy, petrochemical, gas, steelwork, and
mining businesses. It has a solid organisation,
technical and human resources and a notable
presence in the previously mentioned industrial
sectors in Mexico. Pycorsa’s contribution is clearly positive for the already existing organisation
of Duro Felguera, S.A. in Mexico. By adding
engineering to support services in executing and
managing turnkey projects, this undoubtedly
expands possibilities and fields of action, not
only for the organisation in Mexico, but also for
the Subsidiaries in Spain, as it has been the
case in the PEMEX project for the Pajaritos refinery.
100.00
50.00
0.00
1998
1999
2000
2001
2002
% SPREAD OF ORDER
INTAKE IN 2002
OUTSIDE SPAIN
EU 29.4%
NORWAY 2.6%
AZERBAIJAN 9.4%
U.S.A. 11.2%
JAPAN 12.2%
MEXICO 21.7%
AFRICA 0.5%
SOUTH AMERICA 13%
34
123456 7/8/03 09:55 Página 35
STRATEGIC
MEASURES
The Board of Directors of Duro Felguera, S.A., conscious of the changes produced in the business
environment where the Company operates and the previous 1999-2001 Strategy Scheme having expired, after internal debate to establish new ideas, concepts and guidelines, came up with the 20022004 Strategy Scheme.
In order to provide a framework and orientate this Plan, the Board set up a Strategy Committee,
which, after several debate sessions and constant interchanges with the Management team of Duro
Felguera, S.A., defined the Strategy Guidelines. These are sufficiently wide to cover the diverse
aspects of the market and the general objectives that the Scheme had to contemplate. By defining
objectives, tracing models of organisation and management, attending to the market environment
and its development, trying to assure stability of business margins and income, focusing it towards
customer service, and making it both demanding and critical, it is clearly differentiated from the concept of a mere plan of action.
The main Strategy Guidelines orientating the 2002-2004
Scheme are:
| With reference to the various businesses, to bear out
vocation and know how in Plant turnkey construction,
supported by equipment manufacture and the provision
of services, based on progressive specialisation and
concentration on these matters, making the most of the
advantages provided by the current markets and diversifying the business within these markets or in those
which are closely related.
| To fix increase in value for the shareholder as main
objective by sustaining profit, continuing with a balanced policy of self-financing along with stable dividends
and referenced on the capital markets. Contributing to
all of this are the various Business Units with their
know how in safeguard while increasing their productivity and rate of return.
| To re-define the model of adapting organisation to integral management based on the Business Units, making
provisions for business cycles to be covered by growth
and minimising incurred risks in a controlled manner.
| To build up durable alliances with international technological companies in each of the business areas, looking to complement activities and create added value
for the customer.
| To further focus R&D activities towards improving production processes and project execution, development
of management expertise, creation of new products or
improvement of already existing ones, and optimising
the use of applied resources.
35
123456 7/8/03 09:55 Página 36
ORGANIZATION
& HUMAN RESOURCES
As from 2002, DURO FELGUERA, S.A. is
committed to managing its group of companies
as an ethical and socially responsible organisation by subscribing to the United Nations Global
Compact.
The Global Compact is a platform for companies to encourage and promote good corporate practices, within their respective spheres
of influence, in the areas of human rights,
labour and the environment.
The Global Compact is not a regulatory code
of conduct nor does it have legal force. It is a
voluntary initiative that provides a basis for promoting social responsibility from committed
and creative corporate management.
C.T.LADA (Asturias 1942)
It is based on nine basic principles to reach the objective “a global compact of shared
values and principles, which will give a human face to the global market” (Kofi Annan,
Secretary General to the United Nations). These principles are:
| Human Rights
· Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights within their sphere of influence; and
· Principle 2: make sure that they are not complicit in human rights abuses.
| Labour Standards
· Principle 3: Businesses should uphold the freedom of association and the effective
recognition of the right to collective bargaining;
· Principle 4: the elimination of all forms of forced and compulsory labour;
· Principle 5: the effective abolition of child labour; and
· Principle 6: eliminate discrimination in respect of employment and occupation.
| Medio Ambiente
· Principle 7: Businesses should support a precautionary approach to environmental challenges;
· Principle 8: undertake initiatives to promote greater environmental responsibility; and
· Principle 9: encourage the development and diffusion of environmentally friendly technologies
Company participation in the Global Compact means issuing a statement showing an ethical commitment which has always been present in the internal policies of the Company but
which acquires greater bearing when it is made public and ratified on a global scale in this
third millennium.
As a result of this commitment to responsible management, there were a series of aspects
relating to Organisation and Human Resources that gained priority in 2002.
36
123456 7/8/03 09:55 Página 37
LABOUR RELATIONS
The year 2002 was marked by an intensive
collective negotiation. Four collective bargaining agreements were signed at Felguera Melt,
S.A., Duro Felguera Plantas Industriales, S.A.,
Felguera Calderería Pesada, S.A. and Felguera
Construcciones Mecánicas, S.A., as well as an
Earnings Agreement in Felguera Montajes y
Mantenimiento, S.A.
These collective bargaining agreements will
be in force until 31.12.2004 (except for the
Felguera Montajes y Mantenimiento, S.A. agreement which will be valid until 31.12.2002 and
the companies that have subscribed to the
Metal Workers agreement which must be
negotiated in 2003).
It is worth pointing out that within the Duro
Felguera Collective Agreements the denominated replacement contracts are gaining more
ground and linked to the strategy plan for staff
planning.
TRAINING
Professional Training:
The Duro Felguera training programs,
which have been in effect in the last few years
within the Vocational Training area, are carried
out at five Training Centres certified by the
Instituto Nacional de Empleo, INEM (National
Employment Service). Courses held are aimed
at the unemployed and fall within the framework of the Plan F.I.P, i.e. Plan de Formación e
Inserción Profesional (Professional Training &
Integration Scheme) and are financed by the
Instituto Nacional de Empleo and by the
European Social Fund.
Of the five Training Centres, two are in
Langreo, two in Gijón and the other (created in
2002) is in the central area of Asturias, on the
Silvota Industrial Estate in Llanera.
The centres are managed and coordinated
by company technicians and specialist courses
are held on the following: boiler making, welding, fitting, machine tools with numerical control, smelting and insulation processes. The
alumni receive practical training and theory
from DURO FELGUERA professionals.
C.T.LADA (Asturias 2002)
These courses are set out in the Annual Cooperation Agreements
that DURO FELGUERA subscribes to on a national scale with the
General Management of the Instituto Nacional de Empleo.
Continuous Training
The Continuous Training Programme developed throughout 2002
has as main objective to improve personnel expertise in order to
subsequently improve competitiveness and production at the different business units on a national and international level. Therefore,
Duro Felguera, S.A. defines a training process that is geared to
achieve, via a learning process:
| Multi-purpose,
| Improvement in quality,
| Innovation in procedures, techniques and technologies, and
| Diversification of professional scopes
The 2002 Training Programme includes the following areas of
priority:
| Graduate Training.
| Labour Health & Safety.
| Quality and Environment.
| Computing.
| Technical and technological areas.
Therefore, the Continuous Training Programme for 2002 carried
out a total of 82 training courses over 34,000 training hours and in
which over 1,300 workers participated.
37
123456 7/8/03 09:56 Página 38
CORPORATE COMMUNITY
In observance of the principles of the ethical
commitment made by DURO FELGUERA, S.A., in
subscribing to the Global Compact in 2002, the
Annual Duro Felguera Prize was set up for “Duro
Felguera Employee of the Year”. The objective is
to acknowledge those workers who have stood
out during their career, in a single, notable act or
for excellence in human, ethical and professional
values orientated towards improving the working
environment, their surroundings and Company
progress.
The first prize last year was awarded to Mr.
Fernando Argüelles Pando, member of staff at
Felguera Montajes y Mantenimiento, S.A., whose
professionalism, constant research, creativity,
dedication and humanity have been, among
others, the values praised by more that 250 of his
colleagues, and whose signatures came from all
over Spain to second his candidature for this
prize. The JURY, made up of employees from the
various subsidiaries, in turn acknowledged these
values and on 11 December 2002 they decided to
award him with the Employee of the Year Prize
for 2002.
The prize was given in December at a ceremony in which the Gold Awards for Service were
also presented. These went to Mr. José Ramón
Gutiérrez Ceñera (Felguera Calderería Pesada,
S.A.) and Mr. Pedro Manuel Antuña Suárez
(Felguera Construcciones Mecánicas, S.A.). Also
presented were the Prizes for the II ANNUAL
PRIZE FOR SPECIALISED PUBLICATIONS. The
first prize went to Mr. Angel Pelegry Cuesta
(Felguera Parques y Minas, S.A.) for his work
“Tailor made solutions vs. project net cost”,
published in the magazine “World Coal”.
Second prize was awarded to Ms. Montserrat
Santamarina Menéndez (Duro Felguera, S.A.) for
her work titled “¿Hacia dónde camina la evaluación de la formación?” (Where is training evaluation headed?), published in the magazine
“Capital Humano”.
38
123456 7/8/03 09:56 Página 39
ORGANISATION AND
INFORMATION SYSTEMS
Among the activities carried out by the Information
Systems Management for this year, the following are of note
for their strategic importance within the “Duro Felguera
Technological and Information Systems Plan”.
Advisory and Development Area
| SEGOBRA Project “Work Follow-up and Management”
for Felguera Montajes y Mantenimiento, S.A., developed
in graphic applications, and with consolidation module
in head office. This tool served as a base for the “Overall
Project Management”.
| Development and implementation of the Logistics
Project (Phase I), in Felguera Calderería Pesada, S.A.,
which also includes quality management.
| Automatic issue of the Human Resources reports and
graphics for the Boards monthly meetings (IMG –
RR.HH.).
| GGP Project “Overall Project Management”. Using the
SEGOBRA tool, this is a project control tool.
| Implementation of the new corporate reporting tool
ACTUATE.
Systems, Networks and Communications Area
| Renewal and technological integration of the corporate mobile and fixed telephone system, which includes
the solution “MoviStar Intranet” by means of GPRS.
| Implementation of Corporate Antivirus.
| Implementation of the “Stonegate” firewall, which
allows total management of resources and safety between the Corporate Network and Internet. This also
affords VPN (access to the Corporate Network via
Internet), Multilink (redundancy Internet line) and load
balance.
| Change in the typology of the LAN network and the
Corporate Network, affording increases in flow and
electronic renovation. This includes extension of the
Corporate Network to link up with the work centres in
Madrid and Tirajana (Canary Islands) for the Power
Systems Line, and start-up of 2 MB ADSL line at the
CPI (Project and Engineering Centre) in order to reinforce network security.
39
123456 7/8/03 09:56 Página 40
Logistics, Micro computing
and New Products Area
| Process and implement corporate security
protocols.
| Software and hardware standardisation (S.O.,
office tools, equipment). Included migration
to Server 2000 for NT servers and installation
of Windows and Office 2000 as standard software in Duro Felguera. With reference to
hardware, this was updated.
DISTRIBUTION OF THE WORKFORCE
BY PROFESSIONAL GROUPS
The average number of staff at Duro Felguera, S.A.,
during 2002 including subsidiaries and companies with
majority share interest amounted to 3.276 employees.
The following graph shows the distribution of the workforce per professional groups, by categories as they exist
in the industrial group. The denomination “Technicians”
groups higher, medium and lower qualified technical
staff. “Clerical” groups administration personnel and
other subordinate staff. “Workers” groups the various
skilled and non-skilled staff members.
| In order to carry out the previous actions, an
Enterprise Agreement was negotiated with
Microsoft, for all the company’s licenses.
TECHNICIANS
24.10%
PREVENTION OF OCCUPATIONAL HAZARDS
A most significant reduction in work accidents
was achieved in 2002, resulting from the Prevention
and Safety and Health policies established by DURO
FELGUERA based on four priority areas of action:
analysis of accidents/incidents, application of
corrective measures, making staffing and material
improvements and annual continuous training programmes.
In 2002, accidents causing labour layoff fell by
20,6% with respect to the previous year.
During 2002, DURO FELGUERA, S.A. has signed
an external Health at Work agreement (Mutual
Health Service Company - IBERMUTUAMUR), to
carry out health check-ups required on the work
sites in the various Autonomous Communities.
In the same manner, an ambitious agreement on
Prevention of Hazards was subscribed to, specialising in Industrial Health also, and which ends on 30
June 2003.
WORKERS
70.47%
5.43%
CLERICAL STAFF
DISTRIBUTION OF STAFF OVER
THE BUSINESS LINES
The following graph shows the distribution of average
staff in % throughout 2002 in the different Business Lines
and Units of the industrial group.
EQUIPMENT
& ERECTION 46%
5% STORAGE
Finally, a Joint Service for Prevention of Hazards
was undertaken by DURO FELGUERA, S.A. coming
into force at the beginning of 2003.
INDUSTRIAL
PLANTS
3%
MINING & 2%
HANDLING
35%
MEXICO
7%
POWER
SYSTEMS
40
2%
DURO FELGUERA, S.A.
123456 7/8/03 09:56 Página 41
MARKETING
& DEVELOPMENT
Following the plans traced and as a complement to
our growing business in Mexico, the engineering business had to be reinforced which is why the Mexican engineering company PYCORSA was bought, as previously
mentioned.
The constant search to add technology to our company and the need to further specialise and concentrate
on new markets with our own means of productions, has
led us to reach the necessary agreements to develop and
manufacture Tunnel Boring Machines. Having completed the first phase and after having been contracted to
manufacture two of these machines, led us to sign a
Memorandum of Understanding with the Japanese technological company MITSUBISHI HEAVY INDUSTRIES.
This agreement refers to setting up a joint venture in
Spain in the future aimed at the previously mentioned
market in Europe and Latin America.
Business concerning equipment for high speed railway track material is being developed as well as other
businesses, which are expected to consolidate during
2003.
The agreements with 53 Agents working in 31 countries
remain in force for any of our subsidiaries, on four continents. To add to these, a non-exclusive Agent has been
incorporated in Chile where the economic stability, industrial growth and ever greater presence of Spanish companies in the Energy, Civil Works and Communications sectors, as well as prospections made in this area are more
than sufficient grounds to take an interest in this market.
Our offices and subsidiaries in USA, India, Brazil,
Venezuela, and Mexico have carried on regardless with
their marketing task for all of the companies that go to
make up Duro Felguera, S.A.
The Development activities carried out from Duro
Felguera, S.A. over 2002 were focussed mainly on the
analysis of the different opportunities which the market
situation has allowed to explore in the sense of evaluating strategically and financially the advantages of investing in companies. This has led to the possibility in the
short-term of participating in companies whose business
activities are similar to ours or that have their own markets.
INVESTMENTS
Quality, cost reduction and assurance of delivery
schedules have been, among others, the main objectives
that have justified the investments made during 2002.
Significant volumes of investment were required to maintain operability and modernise our industrial installa-
tions and workshop machinery. In addition, adhering to
the policy of developing engineering and production processes up to date, both hardware and software was
invested in, all of which has meant an approved and executed investment of over 5 million euros, of which the
most noteworthy are as follows:
Felguera Melt, S.A.
The Environment and working conditions are a steady
concern for Felguera Melt, S.A., which is why some of
their main investments are made in equipment to mitigate aggressive effects. Such is the case for the recently
acquired induction equipment to Silica Sands to reduce
the amount of dust at workstations.
Other investments in 2002 were directly made in
improving production processes and capacity, such as
the two recently acquired 100t Silos to store sand or the
Automatic Shotblast machine for parts up to 15 t.
The 3D software for Dynamic Modelling of track components “CoCreate One Space Designer Modelling” also
formed a part of the investments made by Felguera Melt,
S.A. in 2002.
Técnicas de Entibación , S.A., (TEDESA)
In order to diversify markets by incorporating new
products, TEDESA has added a cutting and drilling line
for rolled beams to its production chain, assisted by state
of the art numerical control. This has allowed them to
fulfil the needs of major contracts such as the construction of steel structures for industrial warehouses of large
dimensions or for the manufacture of back ups for
Tunnel Boring Machines belonging to two major technological companies in this field. It has also made other
minor investments to maintain and upgrade its current
production equipment.
Felguera Construcciones Mecánicas, S.A.
Major investments were made in this subsidiary to
improve and extend manufacturing processes. Of note is
the new machining lathe, an automatic welding robot,
and a Helium leakage detector. In addition, several
modifications and modernisation of existing machine
equipment was made to guarantee operability and increase capacity.
Felguera Calderería Pesada, S.A.
The nature of the Felguera Calderería Pesada, S.A.
production process requires constant renovation of production equipment and the update of work techniques
and procedures to adapt to quality and profitability. With
this aim in mind, some of the main investments made by
this subsidiary in 2002 were in acquiring a skid for large
41
123456 7/8/03 09:56 Página 42
parts, a new oxy-cut machine, various welding machines,
tools, ancillary manufacturing and transport equipment,
and modifications to infrastructures.
Felguera Tecnologías de la Información, S.A.
This is a subsidiary undergoing rapid expansion and
with a promising future. It has to necessarily invest periodically in developing its activity in the computing and
applied computing sector. To meet its demands for space,
quality and image improvement, it has made a significant
investment in constructing a building on the Parque
Tecnológico de Asturias (Asturias Technological Estate) in
Llanera, which will be its headquarters as from
September 2003.
The other investments made during 2002 were spread
throughout the various subsidiaries and business units
destined to modernise and adapt technology equipment
(hardware and software), tools, machinery and basic
infrastructures, among others.
RESEARCH & DEVELOPMENT
It has become usual over the past few years and certainly no different in 2002, that several R&D projects are
developed by the subsidiaries in Duro Felguera, S.A.
These works are generally destined to improve the quality of products and services offered on the market or to
optimise manufacturing processes applied in the production of these with the double aim of increasing customer
satisfaction on the one hand, an on the other to have greater options in increasing new market shares. Duro
Felguera, S.A. partly relies on the stable and fluid relations maintained over the years with Public Bodies, both
national and European, who are competent in the area by
means of the different lines of action which, in supporting
the R&D activities in companies, are sponsored by these
Public Bodies.
42
Felguera Melt, S.A.
Development of a casing for an aerogenerator made
out of one smelted piece instead of the traditional
method of design and manufacture by mechanised welding. This is being done in collaboration with Gamesa
Eólica, S.A. and Oviedo University.
Design and development of a prototype crossovers
with mobile heads installed on a diagonal for Metro
Madrid, S.A.
Felguera Calderería Pesada, S.A.
Of note for their incidence on improvement of productivity and cost, the following projects developed by this
company over 2002 are:
| Weldability Study and Mechanical Properties of
New Consumables for Coated Electrodes Type E8018B2, of application on alloy steels 1 _ Cr _ Mo
used in reactors in the chemical and petrochemical industries.
| Analysis of Productivity Increase by use of 90 mm
wide band in submerged arc welding in pressure
vessels.
| New build up in one sole Layer, of application on
carbon steel materials for alloy type 316L using the
ESW process or SAW process as an alternative.
| Research of the influence on mechanical properties of low temperature impact and increase in
hardness of deposited metal and on the ZAT as a
consequence of the reduction of the amount of
time during the post-welding heat treatment, compulsory in the manufacture of pressure vessels of
large diameter and thicknesses below 50 mm,
using 2 _ Cr-1Mo type materials.
| ECOPRESS: Economic and Safe Design of Pressure
Vessels applying new DUPLEX type steels. Project
co-financed by the European Commission.
Duro Felguera continues to maintain a presence as a
noted member of the main decision and design policy
making organisations in the R&D sectors of the region,
such as, FICYT (Foundation for Scientific and
Technological Development), CLUB DE LA INNOVACIÓN
(The Innovation Society), CLUB DE LA CALIDAD (The
Quality Society), ITMA (Technological Institute for
Materials), etc.
The Technological Institute of Materials, ITMA, of
Asturias has participated in all the above projects and
studies.
Continuing with this policy and given that these types
of projects often surpass the financial year in time,
these R&D projects have continued to be developed,
published and presented whether they are just starting
out, finalised, or realisable in the near future. Some of
these are:
| Project for the Standardisation of Transfer
Mechanisms, which allows for accumulated knowledge and experience in this area to be transformed into competitiveness by simplifying designs
and thereby improving manufacturing costs and the
advantages of unifying spares and maintenance.
Mining & Handling Line
During 2002 the Mining & Handling Line developed
various projects framed within the R&D policy to optimise to the maximum its competitive resources, such as:
123456 7/8/03 09:56 Página 43
| Project for the Standardisation of Conveyor Belt
Drums, with the same objectives as the previously
mentioned project.
| Calculation Programme to Design Transfer
Structures, Bridges and Crane Trolleys, which
allows dimensions and weights to be optimised
and consequently costs.
CORPORATE IMAGE
The purpose of making the company known internally
and to clients, suppliers, shareholders, institutions or
even the social setting where business is developed, is
closely linked with communication capacity. In this sense
Duro Felguera has continued to promote the use of the
channel that Internet affords to its always increasing
number of users, to transmit via public announcements
on its website “www.gdfsa.com “ a wide and clear image
of its capacities, activities, results and objectives.
The following information may be accessed Via its
website on the Internet:
| General Information on the company and executive
organisation charts
| Detailed information of each of the business lines
and the companies that go to make them up.
| Main projects of reference
| Stock exchange information, which substitutes the
periodically edited Shareholder Bulletin, including
periodic reports, financial calendars, financial
information, news and the newly incorporated
direct access to the stock exchange .
| Information related to the Human Resources
Department, such as job offers, prevention policies, labour information, etc.
| A suggestion box
| Localisation of the international commercial network, etc.
To sum up, this annual report may soon be accessed
from the website which will be incorporated as information addressed mainly to the Shareholders, Clients,
Collaborators and the Finance Corporations.
During the last edition of the Asturias Trade Fair
in which Duro Felguera repeated by being present yet
another year running, the company participated in
the First Forum for Employment held by the
University of Oviedo, by interviewing young graduates
aspiring to their first job, all of whom presented their
Curriculum Vitae.
It is also an honour to mention the presence of
Duro Felguera on the boards of trustees and executive committees of renowned forums, regional and
national, which are important focal points for communication and interchange of cultural and business
experiences. Some of these are: The Board of
Trustees for the Prince of Asturias Foundation
(Patronato de la Fundación Príncipe de Asturias), the
Board of Trustees for the Asturias Business School
Foundation, the Executive Committee of the
Principality of Asturias Metal Federation, (Federación
del Metal del Principado de Asturias), the Executive
Committee of the Asturias Business Federation
(Federación Asturiana de Empresarios), the
Executive Committee of the National Association of
Capital Goods Manufacturers (Asociación Nacional
de Fabricantes de Bienes de Equipo), etc.
Based on its roots in Asturias and the commitment
that the company has made to the social setting, a presence has been maintained in the different bodies and
institutions of the region during 2002. Whether they were
of a social, cultural or business nature, the company has
collaborated on occasion in a financial way or by lending
out premises or infrastructures.
43
123456 7/8/03 09:56 Página 44
CORPORATE
STRUCTURE
To 31 December 2002
DURO FELGUERA, S.A.
POWER SYSTEMS
INDUSTRIAL PLANTS
DURO FELGUERA
Energía
DURO FELGUERA
Plantas Industriales, S.A.
Montajes de Maquinaria
de Precisión, S.A.
(MOMPRESA)
OPEMASA *
Felguera Tecnologías
de Información, S.A. *
EQUIPMENT
& ERECTION
DURO FELGUERA
Equipos y Montajes, S.A.
Felguera Calderería
Pesada, S.A.
/ FCP Servicios, S.A.
Felguera Construcciones
Mecánicas, S.A.
Felguera Melt, S.A.
Técnicas de
Entibación, S.A.
(TEDESA)
Felguera Montajes
y Mantenimiento, S.A.
/ FERESA
44
123456 7/8/03 09:56 Página 45
FINANCIAL AREA
Acervo, S.A.
MINING
& HANDLING
STORAGE
INTERNATIONAL
ACTIVITIES
FELGUERA
Parque y Minas, S.A.
FELGUERA - IHI, S.A. *
DURO FELGUERA
México, S.A. de C.V.
PYCORSA *
FELGUERA
Grúas y Almacenaje, S.A.
DURO FELGUERA
do Brasil (Ltda.)
DURO
FELGUERA, S.A.
India Office
[FOREIGN COMPANIES]
* Major Shareholding
45
123456 7/8/03 09:56 Página 46
123456 7/8/03 09:56 Página 47
ACTIVITIES
OF THE BUSINESS
UNITS
123456 7/8/03 09:56 Página 48
MINING
& HANDLING
Managing Director: Mr. Félix García Valdés
The Mining and Handling Line is formed by two separate companies, Felguera Parques y Minas, S.A.,
and Felguera Grúas y Almacenaje, S.A., subsidiaries of Duro Felguera Plantas Industriales, S.A. both of
which have their own independent means and human resources. They are located in the building known
as the Centro de Proyectos e Ingeniería (Centre for Projects and Engineering) or CPI, in La Felguera. The
main aspects of both companies throughout 2002 are broken down below.
PRODUCTS
Felguera Parques y Minas, S.A.
Turnkey plant engineering and supply for:
| Seaport terminals for bulk handling
| Bulk handling and stockyards at power
plants, steelworks, mines, cement plants,
etc.
| Bulk stackers and reclaimers
| Grab unloaders and shiploaders
| Equipment and installations for
underground mining
| Mineral Processing Plants
Design, supply, installation and after-sales service
of environmental maintenance systems:
| Chain Conveyors
| Screw Conveyors
Equipment for solids, slag, ash and lye extraction
systems for:
| Waste water treatment plants
| Incineration Plants
| Cement Plants
| Power Generation Plants
Quality:
Lloyd´s Register Quality Assurance Certificate,
ISO 9001 / 2000
Felguera Grúas y Almacenaje, S.A.
Design, development, production, installation and
after-sales services for:
| Industrial, steelworks and nuclear overhead
cranes and gantry cranes
| Dockside and gantry cranes for port services
| Overhead and gantry cranes for containers,
general and bulk loads
Quality:
Lloyd´s Register Quality Assurance Certificate
ISO 9001 / 2000
48
FELGUERA PARQUES Y MINAS, S.A.
This subsidiary has made great efforts to penetrate certain markets that up to now were very difficult
to access, characterised for having their own technology or by the consolidated presence of other competitors among other reasons. However, during 2002
these efforts were rewarded as Felguera Parques y
Minas, S.A., competing with major international,
technological companies in the sector, was awarded
the design, manufacture and supply of a bulk cargo
ship loader at Long Beach (USA). This project is
currently being executed and will open up further
opportunities in this market.
123456 7/8/03 09:56 Página 49
Order intake and works in progress
Among others, the following stand out:
| Within the Cement sector, the contract signed for
HOLCIM in Almeria, for the design, manufacture
and supply of a circular mineral yard, including
conveyors and ship loader.
| Of note also, it is the participation in Phase I of the
Medusa Equipment Project, which Unión Fenosa is
carrying out at the port in Corunna and for which
Felguera Parques y Minas has a contract for the
design, manufacture and supply of the silos including car loader, transfer conveyors and transfer
towers. Felguera Parques y Minas has submitted a
bid for Phase II that includes a complete storage
yard. Phase III remains pending and consists of a
shipunloader for which the corresponding bid will
also be presented.
| Considerable efforts have been made over a
period of time to opt for the extension of the
mining complex belonging to Ferrominera del
Orinoco, in Venezuela. In the first phase, a contract was awarded to partially develop the basic
engineering of this project, which offers great
hopes for the future.
| As already mentioned, in 2002, a shiploader of up to
70.000 DWT was awarded for the port at Long
Beach (USA). This loader has special technical
characteristics. It is designed to manage two very
different products that demand different treatment;
Sulphur (2.700 Tn/h) requires fire protected transfer systems and electrical equipment and also
environmental protection measures when it is discharged for which a telescopic chute is used. The
other product is Petroleum Coke (2.400 Tn/h) and
for this an innovative system is used to cushion the
fall of the product into the ship’s hold. The mechanism has a telescopic jib with up to 45-metre turning radius.
and containers. Its list of references is extensive and
it has equipment operating in a large number of
countries
Among others, the following are of special relevance:
| Supply of two 40-ton overhead cranes for internal transport of reels on the Tin Line belonging
to the company Voest Alpine in Linz, Austria.
| The manufacture of two overhead cranes of 30
and 80-ton capacity respectively was completed during 2002 for Aceralia, and destined for
the rolling mill in Avilés.
| Another lot of overhead cranes for the steelworks plant belonging to the SMS-DEMAG
consortium in Egypt was also finished and delivered in 2002.
R & D Activities
During 2002 the Mining & Handling Line has developed various projects in the framework of its R&D
activities, such as:
| Project for the Standardisation for Transfer
Mechanisms, to simplify designs and reduce
manufacture and maintenance costs.
| Project for the Standardisation of Conveyor
Belt Drums with the same objectives as the
previously mentioned project.
| Calculation Programme to Design Transfer
Structures, Bridges and Crane Trolleys, which
allows dimensions and weights to be optimised
and consequently costs.
FELGUERA GRÚAS Y ALMACENAJE, S.A.
With wide experience in the industrial sector, this
company is specialised in the design, manufacture and
supply of overhead cranes and gantry cranes for industrial processes, steelworks and nuclear installations, as
well as cranes for dockyards, general and bulk loading,
49
123456 7/8/03 09:56 Página 50
INDUSTRIAL
PLANTS LINE
Managing Director: Mr. José Manuel Cuesta Viña
This business Line is formed by two companies:
Duro Felguera Plantas Industriales, S.A. and
Felguera Tecnologías de la Información, S.A., in
which Duro Felguera holds a majority share interest. At the same time, this line is occupied with
three Business Units:
| Steelworks & Industry. Specialised in the
sectors of steelworks and heavy industry in
general.
| Petrochemicals, Gas & Environment, acting
in the petrochemical sector and heavy
industry in general.
| Logistical Systems, focussing its activities
towards automated storage.
PRODUCTS
Steelworks & Industry
| Electric Steel Mills and B.O.F.
| Secondary metallurgy – ladle furnaces
| Process Lines (pickling, tin plating,
galvanizing, etc.)
| Pelleting Plants
| Continuous casting
| Rolling Mills
Petrochemical, Gas & Environment.
| Petrochemical Plants
| Refineries
| Liquefied Gas Storage & Filling Stations
| Non-ferrous metallurgy
| Acid regeneration plants
| Environment – Incineration Plants
| Water Treatment Plants
Logistical Systems
| Automated physical distribution, logistics and
storage.Turnkey installations and systems
| Loader-transport equipment
OTHER ENGINEERING PROJECTS
| “Back-ups” for Tunnel Boring Machines
Quality:
Lloyd’s Register Quality Assurance Certificate,
ISO 9001 / 2000
50
The Industrial Plants Line has engineering services for its own projects and provide assistance to
other Duro Felguera subsidiaries. Its main advantage is its know-how, gained over many years of
experience, with the addition of high-grade capacity and permanent re-training of the technical
personnel among its employees.
Over the last 10 years, this line has supplied
notable installations and turnkey plants (EPC),
both in Spain and abroad. Among these projects, it
is worth pointing out that in 2002, 50% of the contract signed with PEMEX for a total amount of 7.5
million dollars, the “Chlorinated Products III
Project” in its Pajaritos refinery in Mexico was
carried out. At the same time others of lesser
dimensions were carried out in Europe.
A summary of the main activities of the units
making up this Line can be found below.
123456 7/8/03 09:56 Página 51
| ACTIVITIES OF THE BUSINESS UNITS
DURO FELGUERA PLANTAS INDUSTRIALES, S.A.
The following orders and works in progress during 2002
stand out among others:
| For the USINOR steelworks in Dunkirk, a contract
was awarded to develop engineering, construct and
supply a 60.000 m3 gas tank to store gas from Coke
batteries. It is 53 metres in diameter and made up of
three bodies, two of which are mobile.
| For the Aceralia rolling mill in Avilés, it was awarded
a turnkey contract to revamp the Temper Mill III, to go
from 1,016 to 1,300 mm wide strips to be milled. This
project was particular in that the engineering and
manufacturing stages had to be coordinated with the
very tight erection schedule, which had to be done
during a programmed outage of only four weeks.
Despite this difficulty, it was completed satisfactorily.
| The design and manufacture of a torpedo wagon for
the transport of pig iron for the SOLLAC Atlantic
factory in Dunkirk was completed in 2002. This had
special dimensions, a 450t capacity and was more
than 35 m in length.
| The construction and start up project for COGERSA
(Asturias Waste Management Consortium) in conjunction with another company consisting of a
waste incineration plant with gas treatment and
heat recovery for power generation continued in
2002.
| The Steelworks and Industry Unit was charged with
developing the necessary engineering for the construction of a complete “Back-up” for a Tunnel Boring
Machine that is currently being constructed at the
Felguera Construcciones Mecánicas, S.A. workshops.
| The Logistics Platform. NIREO Corporación awarded
a contract in 2002 for the design, manufacture and
supply of a “Logistics Platform” for its warehouse in
Toledo.
| An automated warehouse was developed and supplied for IZAR for its shipyard in Ferrol.
| SIKA awarded a contract for an automatic transport
system for its cement additives plant in Madrid.
| The contract for Petróleos Mexicanos, PEMEX for the
Pajaritos chloride derived products plant continued in
2002.
51
123456 7/8/03 09:56 Página 52
FELGUERA TECNOLOGÍAS
DE INFORMACIÓN, S.A.
As a subsidiary of Duro Felguera Plantas Industriales,
S.A., in its task to develop information technology products
and place them in service, Felguera Tecnologías de
Información in 2002 continued to go deeper into adapting to
a business model of turnkey contracts of larger dimensions.
ADTIVITIES
Felguera Tecnologías de Información, S.A.
| Own software and integration products with
corporate systems
| Project study and analysis services
| Execution of turnkey projects
| Supply of equipment and systems
| Customer service and technical assistance
(SAT)
PRODUCT
| Logistic Systems: Warehouse Management
Software (SGA) capable of operating with
radio frequency terminals and orientated
to automation of maintenance systems with
loader-transport equipment whose
technology belongs to Duro Felguera.
| Management Systems: ERP Integralia©
application operating in web environments
or client-server and Automation of Sales
Force (AFV) on PDA/PDT terminals.
| Internet Projects: Corporate websites, ecommerce, Internet security and other
developments using Web platforms by the
use of tools for dynamic contents
(EVA/HADA).
52
Particular interest has been placed on management
processes with a greater projection towards the client and
taking special care in providing solutions suited to the client
needs, from the point of view of a specialised service company.
Its position in the market is based on a diversity of business options, via project solutions based on standard products with an important added component of service analysis and adaptation to parameters and the needs of the
client.
123456 7/8/03 09:56 Página 53
Technology
Major advances have been made in consolidating products based on JAVA/J2EE technology which were developed in previous years and which now constitute one of
the company’s main strengths. But in 2002 work has also
continued on research and gaining more technological
knowledge required for new projects. Worth mentioning
are the works carried out on the IPSec standard to operate using the Telefónica GPRS communication system.
| A major experience during 2002 and which has
allowed Felguera T. I. to rub shoulders with the
most prestigious European competitors in the sector, was the bid made for the main Pharmacy
Cooperative in Andalusia (CECOFAR), where they
reached the last selection phase with its replacement and traceability software as main advantage.
Order intake and commercial activities:
In its mission to capture, offer and negotiate Logistics
Systems, alongside Duro Felguera Plantas Industriales,
S.A., the work carried out to be finally awarded with the
Distribution Platform for Nireo Corporación in NoblejasToledo to the value of 3 million euros is highly commendable.
| Within the information and management systems
area, commercial activities have been spread out
over the different lines of products: Integralia©
(ERP) with contracts awarded by; El Rodamiento,
Cerámicas del Principado, Derlain, etc.; la
Automatización de Fuerza de Ventas. In addition,
applications for mobile terminals in general
(RF/PDT/PDA) have been implemented for
Distribuciones Arbesú, Efmo, Distribuciones Mapa,
Enri 2000, etc., and with Sales Point Terminals
(Terminales Punto de Venta – TPV) the installation
of a medium sized DIY and Hardware store for
Manuel Bernardo, S.A. in Portugal.
| The Internet projects go from a major extension of
the tourism website “Infoasturias.com” for the
Regional Tourist Board (SRT), through corporate
websites such as Asturiana de Perfumería, NireoFerrobox, and catalogue management systems
such as Ortoibérica, to Network security platforms
for various clients.
| The marketing work carried out, mainly during this
financial year, in conjunction with Duro Felguera
Plantas Industriales, S.A. is worthy of note, to reactivate the bid made to automise the future warehouse of Real Casa de la Moneda (the Royal Mint)
in Madrid. This project of special characteristics is
particularly relevant given the possibility of repeating with other warehouses in the EC.
53
123456 7/8/03 09:56 Página 54
EQUIPMENT
& ERECTION LINE
Managing Director: Mr. Pedro García Fernández
During the last financial year, the Equipment &
Erection Line belonging to Duro Felguera, S.A. continued to create and deliver first quality products and
services to markets of diverse industrial activity
throughout the world, making the most of the advantages afforded by its installations such as Felguera
Calderería Pesada, S.A., in Gijón. Felguera Calderería
Pesada, S.A is capable of shaping, welding and constructing equipment to the most demanding quality and
design standards, manufacturing in alloy steels and of
almost limitless dimensions given the capacity of its
facilities and the special characteristics of its expediting centres. It has its own dock that is located within
its installations making it possible to carry out complex
expediting by ship.
Within this Line, Felguera Construcciones Mecánicas, S.A., the mechanical/welding factory belonging to Duro Felguera in Barros (Langreo), has made
great efforts in 2002 to maintain its activities by entering new markets and
improving on the traditional ones whilst at the same time successfully maintaining its policies of improving on cost, quality and schedule; objectives which
are demanded by the markets where Felguera Construcciones Mecánicas, S.A.
competes, such as the power systems market (hydraulic, fossil-fuelled and
wind), the large multinational laboratories, or the promising turnkey construction of Tunnel Boring Machines for civil works on major infrastructures, where
it has been awarded two important contracts in 2002.
54
123456 7/8/03 09:56 Página 55
Fruit of the efforts made during past years
which were focussed on making new developments and consequently providing greater added
value products by its capacity to attend to more
complex technical and technological requirements, Felguera Melt, S.A., has met its objectives to sustain growth. It is constantly incorporating modern production means to its manufacturing processes and its R&D team takes great
care in obtaining appropriate technologies and
strategic alliances with partners who complement their activities in the specialised markets
where they operate, such as wind power generation or railway track material (crossings and turnouts, basically) for the high speed railway
expansion projects both in Europe, and the
domestic market namely with the development
of the AVE lines.
This line of business also includes two important
service companies Felguera Montajes y Mantenimiento, S.A. and Felguera Revestimientos, S.A.
These two companies have continued to grow, carrying out a complimentary role of significant importance with respect to finalising turnkey projects and cooperating in project commissioning not only for this line
of business but also for Duro Felguera companies
belonging to other lines, i.e. the Power Systems Line,
with whom they have cooperated in the erection and
commissioning of the latest combined cycle power
generation projects. And all of this without abandoning their traditional markets where they have continued to provide their services, i.e. engineering, steelworks, mining, power generation, petrochemicals,
etc.
Growth shown by TEDESA in 2002 is basically due to a reorientation of its commercial
strategies which started in past years and is
geared to new products and equipment for the
construction of public infrastructures and
which are complementary to those of more traditional characteristics (although in constant
innovation) such as mine framing, consolidation
and shoring up of tunnels and trenches. To do
this TEDESA has made significant investments
in modern production equipment and has established decisive commercial agreements by
which it has successfully opted for the manufacture of steel structures for large industrial
buildings and the construction of back-ups for
Tunnel Boring Machines, among other activities
of note.
55
123456 7/8/03 09:56 Página 56
FELGUERA CALDERERÍA PESADA, S.A.
Managing Director: Ms. Esperanza Gutiérrez Sánchez-Escalonilla
The activities of Felguera Calderería Pesada, S. A.,
during 2002 are summed up in the main contracts explained
below:
PRODUCTS
| Equipment for the chemical
& petrochemical industries
· Large scale crude and vacuum columns
· Reactors
· Exchangers
· High-pressure separators
· Desalinators
· Spherical storage tanks
· Digesters
· Mounded vessels
· Converters
| Heavy equipment for industry in general
· Steelworks
· Power Systems
· Cellulose and paper
· Cement
· Transport of liquefied gases
| Off-shore equipment
| In general, all types of heavy boilers
Quality:
Stamps
ASME: U, U2 and S
National Board: R (for alterations and
overhauls of ASME equipment in service)
S.Q.L. (for equipment destined for the
People’s Republic of China)
Certificates
ISO 9000 / 2000
ISO 14001 / 2000
TUV: AD-Merkblatt HP0 / TRD 201 / DINEN 792-2
56
| Continuing with traditional activities, which have more
than consolidated in the specialised market of heavy
boiler making which is their speciality, by mainly
supplying equipment to the petrochemical industry,
fully dressed and manufactured with their special
capacities: shaping of great thicknesses, of more than
200mm, high technology welding for steel Chrome,
Nickel, Molybdenum and Vanadium alloys, and expedition of pieces and equipment of large dimensions and
weights, directly from its own dock which is integrated
in its facilities and which can be used by several types
of ships: roll on – roll off, self-loaders, barges and floating cranes high enough to undergo ocean voyages.
| It is notable that they have obtained a surplus order
intake over 7% with respect to the forecast at the
beginning of the year despite the adverse conditions of
the international petrochemical sector and the competition offered by companies in certain Southeast
Asia countries. This has once more demonstrated the
capacity of Felguera Calderería Pesada, S. A. to respond and adapt to market environments.
| It is the export capacity of its products that has made
it possible for more than 85% of its contracts to have
come from abroad in 2002, from England, Chile,
Azerbaijan, Norway, Venezuela and Bulgaria, adding
to its already extensive list of references of the most
notable engineering and technological companies,
both national and international working within the
industrial and petrochemical sectors.
To sum up, the main contracts awarded to Felguera
Calderería Pesada, S.A. in 2002 were, among others:
| Various gas-crude oil separators for a refinery in
Azerbaijan.
| A set of reactors for Foster Wheeler for the PETROX
refinery in Chile.
123456 7/8/03 09:56 Página 57
| Also awarded by Foster Wheeler was the revamping of
an FCC unit at a refinery in Bulgaria.
| An FCC reactor for PDVSA in Venezuela.
| For Linde and destined for an installation in Norway, the
construction of several pressure vessels.
Of the works carried out in 2002, worth pointing out are:
| Within the package awarded by the Ameriven Group in
Venezuela, the manufacture of a vacuum column of 12
metres in diameter.
| The construction for Halliburton in the U.K. of 11 separators for a B.P. Exploration refinery in Azerbaijan.
These works were performed along with the process
design engineering which were included in the scope of
the contract
| The construction of 4 Unicracking reactors, made of
alloy steel Cr-Mo-V for the PETROX refinery in Chile.
Training
Mindful of the high value placed on the human factor,
Felguera Calderería Pesada, S.A., the same as other Duro
Felguera business units, has spared no material or economic expense to continue training and professionally updating its personnel, always conscious of the fact that well
trained and motivated personnel increase resource values
and achieve high rates of performance.
With this aim in mind and making the most of the professional training centre within its installations (certified by
the National Employment Agency), in 2002 Felguera
Calderería Pesada, S.A. organised an extensive Welding
course. A screening process established that 15 professionals were eligible for the course of 924 man-hours, and
Duro Felguera, S.A. made the commitment to employ 60%
of those who successfully finished the course.
The usual internal courses to update its own personnel
were carried out in 2002, not only for labourers but also
middle management and administration staff, paying special attention to Safety at Work.
R&D Activities
Of the activities carried out by Felguera Calderería Pesada,
S. A., in the field of Research and Development, and in which
the Asturias Technological Institute of Materials (ITMA) participated, the following stand out:
The emergency brigade, permanently established at
Felguera Calderería Pesada, organised first aid courses,
imparted by the Duro Felguera Medical Service, in keeping
with the Prevention of Labour Risks policy and in order to
maintain updated its technology and intervention capacity.
Increase of Productivity Study by use of 90 mm wide band
in ES welding of pressure vessels.
New build up in one sole Layer, of application on carbon
steel materials for alloy type 316L using the ESW process or
SAW process as an alternative.
Investigation of the influence on mechanical properties of
low temperature impact and increase in hardness of deposited
metal and on the ZAT as a consequence of the reduction of the
amount of time during the post-welding heat treatment, obligatory in the manufacture of pressure vessels of large diameter and thicknesses below 50 mm, using 2 _ Cr-1Mo type
materials.
ECOPRESS: Economic and Safe Design of Pressure Vessels
applying new highly elastic steels. Project co-financed by the
European Commission.
57
123456 7/8/03 09:57 Página 58
FELGUERA CONSTRUCCIONES
MECÁNICAS, S.A.
Managing Director: Mr. Cristino González León
PRODUCTS
| Equipment for the steelworks industry
· Rolling mills, continuous casting, ladles
· Boom Shears, milling towers, coilers
| Cranes
· Overhead, gantry, dockside
· Mineral unloaders, containers
| Hydraulic
· Turbines and generators
· Gates and cofferdams
· Penstocks
| Off-shore
· Swivel, central pipe, mechanical parts,
turrets and Sea platforms
| Thermal Power
· Boilers (HRSG) for combined cycle power
plants
· Exchangers, condensors
· Kilns and mills
· Fans
· Dearators and heaters
| Wind Power
· Shafts for aerogenerators
· Components for aerogenerators
Felguera Construcciones Mecánicas, S.A. has not
only maintained its collaborating, production unit role
in turnkey contracts with other Duro Felguera lines,
mainly in the power generation area, but has also
revalidated its position as primary supplier of components and heavy equipment in sectors as diverse as
power generation of different types (thermal, hydraulic, wind power), particle physics research or public
works, among others. These have been spread over
different areas of the globe, which only goes to confirm the confidence of our national and foreign customers in the quality and grade of compliance shown by
Felguera Construcciones Mecánicas, S.A. The result
has been to maintain a significant volume of order
intake, once again surpassing the year’s forecast. It
should be pointed out that foreign order intake in
2002 constituted 73% of the year’s total.
Commercial Activities
In addition to capturing new clients, which has
allowed it to extend its commercial presence in many
countries, it has also successfully opted for new and
interesting products in growing sectors such as
public works where two contracts were awarded to
manufacture the same number of tunnel boring
machines for Mitsubishi Heavy Industries. This not
only adds a positive workload but also opens up possibilities for future negotiations, falling in line with its
policy to expand technological assets, to establish
stable agreement for further actions. This has been
reflected in 2002 in the establishment of a commitment to set up future strategic alliances. The capabilities of Felguera Construcciones Mecánicas, S.A. and
confidence in its quality of work as shown by its customers are proved once more.
| Equipment for mining and mineral yards
| Equipment for large civil works infrastructures,
Tunnel boring machines
| Industrial Equipment in general
· Cement industry
· Chemical & Petrochemical
· Desalination Plants
· Presses
| Components for large research prototypes
Quality:
Stamps
ASME: U, U2, S and NB
PECAL/ AQAP 120
S.Q.L. (for equipment destined to the People’s
Republic of China)
Certificates:
ISO 9000/2000
TUV: HP0 / TRD 201
58
Contracts awarded and executed in 2002
The following contracts were executed in 2002 or
are still in progress for the previously mentioned new
markets and customers:
| Eight cryostats for the Atlas Project at the
European Centre for Nuclear Research (CERN).
| Three hundred and thirteen cryostats for the
LHC Project at the European Centre for
Nuclear Research (CERN).
| Twenty-four boiler modules for CMI heat recovery steam generators (HRSG) destined for the
Termorrio Power Generation Plant in Brazil,
awarded in 2002.
123456 7/8/03 09:57 Página 59
| Various components for wind power generators, such as masts, hubs, shaft supports, frames and shafts, within the contract to supply
GAMESA with 100 units per year.
| Various components for Francis and Pelton
turbines belonging to Alstom Power Hydro,
France.
| Bodies and components for butterfly and spherical valves.
| Complete pump bodies for Flor Serve destined
for various petrochemical projects.
| A coal mill for Claudius Peters for the pulverised coal injection system at ACERALIA blast
furnace in Gijón.
Of the order intake in 2002 by Felguera
Construcciones Mecánicas, S.A. that was far beyond
expectations, the following contracts are worth mentioning:
| Two tunnel boring machines, TBM, for
Mitsubishi Heavy Industries, for the construction of the Córdoba-Málaga high-speed railway
line, also known as AVE.
| One hundred and fifty “Service Modules” for the
LHC Project at the European Centre for
Nuclear Research (CERN).
| One HRSG for the 1 x 400 MW power generation
plant Cristóbal Colón.
| Twenty-four boiler modules for CMI heat recovery steam generators (HRSG) destined for the
Termorrio Power Generation Plant in Brazil.
| Seven CH tanks for the Chicoasen Project in
Mexico.
Another year running the excellent capacities of
Felguera Construcciones Mecánicas, S.A. are confirmed, offering great expectations for their future as
one of the major centres of construction and machining of Capital Goods on the national and international markets.
59
123456 7/8/03 09:57 Página 60
FELGUERA MELT, S.A.
Managing Director: Mr. Celedonio Rodríguez Riesco
Felguera Melt fixed objectives mainly on its two core businesses in 2002: railway
track material and foundry components for aerogenerators. As a result of its innovations, experience and high quality achieved in making components for the wind power
industry, in conjunction with exhaustive commercial work in the sector, Felguera Melt
maintains and constantly expands its list of clients: NEG – MIKON, LAGERWEY, GAMESA Eólica, IZAR, NKK, ENERCON, EHN, etc. Also praiseworthy are its constant efforts
to innovate on the railway track material side of the business, using its experience and
knowledge gained over that last few years as a basis. The consequence of all this is
that in 2002 there was a significant increase in order intake going over the year’s budget by 20%.
Part of the Felguera Melt success story is due to initiatives and actions which go to
reinforce its commercial side, effectively improving and reconditioning its production
installations which are ever more respectful with the environment, where new, modern
systems of production are implemented, increasing capacities by incorporating new
sand storage silos, automatic shot blasting equipment for pieces of up to 15 Tn, or silica sand aspiration equipment which reduces pollution levels at work stations and
favours the working environment.
PRODUCTS
| Manufacture of iron and steel foundry parts
· Foundry of grey iron – maximum weight
per piece 40 t.
· Foundry of iron modules - maximum
weight per piece 25 t.
· Foundry of carbon and manganese
steel. Maximum weight per piece 3,5 t.
· Foundry of wind power generator
components
| Manufacture of railway track material
· Moulded manganese steel crossings
· Sidings
· Complete pre-mounted trappings on
wood or concrete
· Disconnecting gears
· Double crossovers (scissors)
· Rail bearers (sleepers)
· Expansion joints
· Split joints
Quality:
Certificates:
AENOR: ISO 9001
60
123456 7/8/03 09:57 Página 61
R&D Activities
Felguera Melt is without a doubt ever more conscious of the difficulties to shore up business in highly
competitive, growing, diversified modern markets
which is why over the past years it has set its sights on
constant innovation and development of its products
and processes, patent in its R&D activities to date,
such as:
| Design, development and manufacture of a
foundry made Frame for the Gamesa Eólica G52 aerogenerator.
| Design and development of two prototype crossings with mobile heads installed on a diagonal
for Metro Madrid.
| Design and development of a prototype turnout
for High Speed Railway lines at over 350 Km /
hour.
| Contract for the Metallurgy Department at
Oviedo University to improve the metallurgy process when smelting either iron or steel.
| Contract for the University of Corunna to carry
out simulations and tests on the project of a prototype turnout design for High Speed Railways.
Main contracts awarded in 2002
Throughout 2002 Felguera-Melt has been awarded
several contracts of which the following stand out:
| Design, manufacture and supply of various turnouts for ERGOSE destined for the Greek
Railways.
| Design, manufacture and supply of various turnouts
and crossovers for FERROVIAL-AGROMAN, destined
for the Spanish National Railway System.
and crossovers directly to Spanish National Railway
System.
and crossovers for SACYR, destined for the Spanish
National Railway System.
and crossovers for the METROLAM joint venture.
for Portugal.
for the Buenos Aires Metro (Argentina).
| Supply of diverse material to the Morocco railways.
| Supply of rotors, shafts, casings and other components for GAMESA, for the construction of wind power
generators.
| Supply of rotors, shafts, casings and other components for NEG-MICON (Denmark), for the construction
of wind power generators.
| Supply of rotors, shafts, casings and other components for NKK (Japan), for the construction of wind
power generators.
| Supply of rotors, shafts, casings and other components for IZAR, for the construction of wind power
generators.
61
123456 7/8/03 09:57 Página 62
FELGUERA MONTAJES
Y MANTENIMIENTO, S.A.
Sole Administrator: Mr. Pedro García Fernández
The high levels of quality and competitiveness demanded today by the large industrial projects necessarily
leads for service companies to make permanent efforts
to keep a foot in the markets. In this sense, Felguera
Montajes y Mantenimiento, S.A. relies on vast experience, human and professional, and is equipped with the
most modern techniques to handle specialised work in
different areas competitively, such as:
| Energy – Power Generation: this Line has much
long standing experience which added to the erection contracts of combined cycle steam generators
places the company in a privileged position on a
national level in this sector.
| Steelworks and Metallurgy: maintaining its presence in this area with extensive references for
blast furnaces, coke batteries, sintering plants,
rolling mills, continuous casting, structural mills,
strip mills, rod mills, zinc production plants, etc.
| Industrial Plants: Felguera Montajes y Mantenimiento, S.A., has participated in the erection of all
types of industrial installations but mainly in the
cement, chemical, petrochemical and naval sectors with wide experience in these fields.
| Maintenance: throughout the last year, Felguera
Montajes y Mantenimiento, S.A. has not only continued with maintenance contracts but has also
reinforced activities in this field by extending into
the integral maintenance field in the energy, chemical and petrochemical sectors.
PRODUCTS
| Engineering, management and
development of erection projects for:
· Power generation plants
· Metallurgy and steelworks industries
· Cement, paper, sugar, etc. plants
· Car industry, naval sector, etc.
· Chemical & petrochemical industries
| Metal-mechanical and electrical erections
for large installations to high levels to
technical demand for industry in general
| Revamping and maintenance
Quality:
Certificates
AENOR: ISO 9002 / 1994
ASME: A. STAMP
62
123456 7/8/03 09:57 Página 63
To carry out its usual works, the company has a
great variety of material resources: truck-mounted
cranes and lifting equipment, modern heat treatment equipment, non-destructive testing, etc.
These are constantly being updated and modernised and adapting erection techniques to each specific situation on the field. The company also has a
skilled and semi-skilled labour force which is
highly qualified and experienced, but which undergoes regular training, specialising in planning,
expediting, design of special tools, manoeuvres,
safety, etc.
Commercial Activity
The capacity to adapt to different market conditions and the commercial performance of
Felguera Montajes y Mantenimiento, S.A. have
permitted it to dedicate great part of its resources
to the power generation sector in which the projects for the Duro Felguera Power Systems Line
and for other customers have demanded serious
attention. Notwithstanding, it has also participated in other sectors such as the paper industry,
steelworks, petrochemical plants, as well as in
other activities in which it specialises, namely
integral maintenance.
References for 2002, finalised or ongoing
Among others the following contracts and
ongoing works worth pointing out:
| Works on the programmed outage at the Coal
fired Power Generation Plant in Lada, belonging to IBERDROLA.
| Revamping works on the MEGASA SIDERURGICA infrastructure in Ferrol.
| Maintenance works at the FERTIBERIA plant in
Palos (Huelva)
| Maintenance works at wood storage yard of the
factory belonging to Empresa Nacional de
Celulosa, ENCE, in Huelva.
| Mechanical maintenance works at the Asturiana de
Zinc plant in Asturias.
| Revamping works on the coke gas and raw
water systems at the ACERALIA factory.
| Maintenance works at the coal fired Power
Generation Plant in Lada, belonging to IBERDROLA.
| Mechanical equipment erection on the Tin
Line at the ACERALIA factory in Avilés
| Maintenance works on the fluids systems of the Tin
Line III at ACERALIA in Avilés.
63
123456 7/8/03 09:57 Página 64
FELGUERA REVESTIMIENTOS, S.A.
FERESA
Sole Administrator: Mr. Pedro García Fernández
FERESA has carried on its activities in 2002, mainly in
the power systems sector, but maintaining and expanding
into different industrial sectors where its experience and
grade of compliance stand out with major customers,
such as: Foster Wheeler Iberia, FLS Miljo, CEPSA, SINAE,
ALIBESA, SMURFIT, etc.
Contracts executed or in progress in 2002
Of the contracts executed by FERESA in 2002, the most
relevant are listed below:
| Internal and external insulations on different equipment: boilers, ducts, valves, collectors, turbines,
steam and water piping, etc for the combined cycle
power generation plants Son Reus I and Besós.
| Heat insulation works for HIDROCANTABRICO at
the Aboño and Soto de Ribera Power Plants
(Asturias).
| Heat insulation works for IBERDROLA, at the Lada
(Asturias) and Guardo (Palencia) Power Plants.
PRODUCTS
| Industrial Thermal Insulation
| Refractory Linings
| Maintenance and reconstruction of all types
of thermal and acoustic linings
Quality:
Certificates
AENOR: ISO 9002 / 1994
| Heat insulation works for SINAE on the whole of the
purine treatment plant.
| Supply and erection of tank lining for SINAE-Foster
Wheeler Iberia at the Alperujo de Enemansa
(Ciudad Real) and La Loma (Jaén) plants.
| Heat insulation works for FLS-MILJO on the electrostatic precipitator at the SMURFIT-Nervión plant
in Durango.
| Heat insulation works for ALIBESA on asphalt tar
tanks at its plant in Puerto Real.
| Heat insulation works for CEPSA in various tanks at
its plant in Algeciras.
64
123456 7/8/03 09:57 Página 65
TÉCNICAS DE ENTIBACIÓN, S.A.
TEDESA
Managing Director: Mr. Carlos Ruiz Cornejo
The traditional market of underground mining and especially in the Asturias region, has suffered considerable decreases over the last few years that were accentuated in 2002. TEDESA had already taken
steps to reorient its business by focussing on two main activities; firstly to obtain the means and conditions necessary to manufacture new products and secondly to enter new markets with these products.
Consequently, promoting and marketing efforts outside Asturias and strategic agreements to develop
technologies needed to be increased. These efforts are already proving effective and they have contributed to the fact that TEDESA reached a considerable turnover figure in 2002, amply surpassing the established budget.
The investments made in modern production units have provided the option of manufacturing structural elements and equipment for diverse sectors of industry, such as structures for industrial buildings or
auxiliary equipment for large public works machines (tunnel boring machines) and above all the manufacture of formworks for tunnels, placing the company in an excellent position on the market.
PRODUCTS
| Mining:
· Steel arches in TH, HEB, IPN sections
· Hydraulic and friction props
· Link bars
· Lining sheets
· Grating
| Underground works:
· Metal arches in TH, HEB, IPN sections
· Lattice and rolled girders
· Formworks
· Bernold-type sheet
· Anchor pins for resin
| Trench Screen framing
| Electricity Pylons
Main contracts awarded and executed in 2002
| Manufacture of electricity pylons for SEMI Y
S.R.F. MOYANO
| Manufacture and supply of formworks for tunnels for DRAGADOS OBRAS Y PROYECTOS
S.A.
| Manufacture and supply of formworks for tunnels for the joint venture constructing the
Lleida-Barcelona AVE line.
| Manufacture and supply of formworks for tunnels for the LIERES joint venture, FERROVIALNECSO-ACS on the Cantábrico Motorway.
| Mobile Phone Antenas
| Steel structures
Quality:
Certificates
AENOR: ISO 9001
Commercial Management
The incorporation of new production methods
has allowed new markets to be explored in the
building and industrial structure sectors by
focussing mainly on heavy machinery components of large dimensions whilst marketing of
traditional products continues at the same time.
Already incorporated into the production process
are the new lattice girders, which as they grip to
shotcrete with ease and with their weight characteristics and resistance, are being particularly
successful on the market. The same goes for the
formwork equipment developed and manufactured by TEDESA.
| Manufacture and supply of formworks for tunnels for the MONTORNÉS joint venture.
| Manufacture and supply of formworks for tunnels for the GUADALHORCE joint venture.
| Manufacture and supply of the “back-up”
structure for the Herrenknecht A.G. Tunnel
Boring Machine, working on the Guadarrama
tunnels for the new High Speed Railway.
| Manufacture and supply of the back-up structure for the Mitsubishi Heavy Industries
Tunnel Boring Machine, working on the
Abdalajis tunnel for the new High Speed
Railway.
| Steel structure for the new Tin Line III building
at the ACERALIA factory in Avilés.
| Various steel casing systems for mining and
public works in Spain and other countries.
65
123456 7/8/03 09:57 Página 66
THE POWER
SYSTEMS LINE
DURO FELGUERA, S.A., ENERGÍA
Manager: Mr. Juan Carlos Torres Inclán
Power Systems Line
The Power Systems Line relies upon its long trajectory backed by over forty years experience in the power
generation sector and this has led to the fact that in
2002 its aspirations were fulfilled when GESA and
UNELCO both belong to ENDESA awarded the company
with two combined cycle power generation projects Son
Reus II (1 x 218 MW) and Barranco de Tirajana (1 x 219
MW) as Main Contractor, the first time in Spain that a
national company is awarded a contract in this way.
This has been the reward for the hard work of its highly
qualified personnel and which shows the confidence
placed on the company by leading customers and technological companies in the sector.
CORE BUSINESS
DURO FELGUERA, S.A. ENERGIA
| Execution of Turnkey Projects for Gas Fired
Power Generation Plants (Open and
Combined Cycle)
| Turnkey projects for conventional power
plants
Main Scope:
| Project Management
| Engineering
| Supplies
| Construction
| Erection
| Commissioning
| Operation
Quality
Certificates
Lloyd´s Register Quality Assurance, EN / BSEN /
DIN EN- ISO 9001 / 2000, applicable to design,
engineering, supply and construction of projects
and services for industrial installations on a
turnkey basis in the industrial and power
generation sectors.
66
In a sector where contractual demands are highly
stringent, as is the power generation sector, where
equipment, work quality and compliance to schedules
are directed towards quick and effective plant operation, a company like MOMPRESA is essential. This
company not only supports Duro Felguera Energía in its
new projects, but also with its ample experience and
knowledge of the market, it has become a leading company in the erection and overhaul of power island, working on major power generation plants in Spain, Latin
America and other countries in Europe.
By adding OPEMASA, Duro Felguera Energía reinforces its already diverse capabilities to deal with power
generation plant construction projects as main contractor, widening its scope to include Operation and
Maintenance services.
Below is a summary of the main works carried out
by this Line throughout 2002.
DURO FELGUERA, S.A., ENERGÍA
The activities carried out by DURO FELGUERA
ENERGÍA in 2002 to further develop their business are
fundamentally based on its experience and on widening
its capacity. It has continued to explore new business
opportunities within the power market, as is the case
with the future projects to adapt traditional coal fired
power generation plants to environmental legislation,
supported by their more than sufficient experience and
the major technological companies in the sector. Duro
Felguera Energía, always within its field of specialisation, has continued to maintain its presence in other
123456 7/8/03 09:57 Página 67
countries such as Portugal, Peru and Mexico where it has participated in various bids, which are soon expected to materialise.
Also worth mentioning are the works carried out last year
to finalise some of the projects awarded in previous years in
which other Duro Felguera business lines have cooperated
such as Felguera Construcciones Mecánicas, S.A. in manufacture and supply of the heat recovery steam generators (HRSG)
among others, Felguera Montajes y Mantenimiento, S.A.,
MOMPRESA and OPEMASA with electromechanical erection,
commissioning assistance and operation of the new power
generation plants.
DURO FELGUERA REFERENCES FOR GAS FIRED POWER GENERATION PLANTS
COMMERCIAL
OPERATON
LOCATION
COUNTRY
PROJECT
CUSTOMER
COLOMBIA
Las Flores I
Las Flores II
Las Flores III
Termopon
Termolasierra
Termo Candelaria
Banco Ganadero
Westinghouse
Westinghouse
Westinghouse
E.E.P.P. Medellín
KMR Power Co.
1994
1996
1997
1998
1998
2000
Barranquilla
Barranquilla
Barranquilla
Santander
Puerto Nare
Cartagena de Indias
MEXICO
El Saúz
Huinalá
Hermosillo
Monterrey I y II
Hermosillo
Rosarito
Monterrey III
El Saúz II
El Encino
Valle de Mexico
San Lorenzo
Tuxpan
Westinghouse
Westinghouse
Westinghouse
ABB Alstom Power
ABB Alstom Power
ABB Alstom Power
ABB Alstom Power
SiemensWestinghouse
SiemensWestinghouse
ALSTOM Power
CFE/SiemensWestinghouse
CFE/SiemensWestinghouse
1998
1998
1998
1999
2001
2001
2001
2002
2002
2002
2003
2003
Querétaro
Monterrey
Hermosillo
Monterrey
Hermosillo
Rosarito
Monterrey
Querétaro
Chihuahua
Mexico
Puebla
Veracruz
SPAIN
Besós
San Roque
Castejón
Son Reus
Barranco de Tirajana
Son Reus II
Endesa/Gas Natural
Endesa/Gas Natural
Hidrocantábrico
Endesa (GESA II)
Endesa (UNELCO)
Endesa (GESA II)
2001
2002
2002
2002
2005
2005
Barcelona
Cádiz
Navarra
Palma de Mallorca
Gran Canaria
Palma de Mallorca
(*) S/C = Open Cycle
C/C= Combined Cycle
TYPE*
CAPACITY
MW
C/C
S/C
S/C
S/C
S/C
S/C
Subtotal
S/C
S/C
S/C
C/C
C/C
C/C
C/C
S/C
S/C
S/C
S/C
S/C
Subtotalal
C/C
C/C
C/C
C/C
C/C
C/C
Subtotal
1 x 150
1 x 100
1 x 150
2 x 115
2 x 150
2 x 157
1.244
1 x 150
1 x 150
1 x 150
2 x 250
1 x 250
2 x 250
4 x 250
1 x 150
1 x 150
1 x 250
2 x 150
1 x 150
3.700
2 x 400
2 x 400
1 x 400
1 x 225
1 x 219
1 x 218
2.662
TOTAL
7.606
TECHNOLOGY
Westinghouse
Westinghouse
Westinghouse
Westinghouse
General Electric
Westinghouse
Westinghouse
Westinghouse
Westinghouse
ABB Alstom Power
ABB Alstom Power
ABB Alstom Power
ABB Alstom Power
SiemensWestinghouse
SiemensWestinghouse
Alstom Power
SiemensWestinghouse
SiemensWestinghouse
ABB Alstom Power
ABB Alstom Power
ABB Alstom Power
Alstom Power
General Electric
General Electric
67
123456 7/8/03 09:57 Página 68
| For ENDESA and located in Lanzarote and Ceuta, Duro
Felguera Energía working in joint venture with
Técnicas Reunidas, constructed two plants: 2 x 18 Mw.
and 1 x 12 Mw. respectively, using Diesel units with
MAN technology, on a turnkey contract basis and
which are currently in commercial operation.
Projects awarded in 2002
The previously mentioned presence of Duro Felguera
Energía in foreign countries has not only included continuous
marketing activities but also having been awarded two contracts in Mexico, as shown below:
| San Lorenzo Project, in Puebla - Mexico, for Comisión
Federal de Energía with Siemens Westinghouse technology, consisting of a power generation plant of two
150 Mw turbo generators (2 x 150 MW) to operate in
open cycle.
Works carried out in 2002
Of the works carried out in 2002, which have reached
the final stages, the following are to be pointed out:
| At the San Roque combined cycle plant in Cadiz for
ENDESA – GAS NATURAL, 2 x 400 Mw power rate
and constructed in consortium with Alstom Power,
commissioning activities were carried out and both
units were placed in commercial operation last
summer.
| At the combined cycle plant in San Adriá de Besós
(Barcelona), also for ENDESA – GAS NATURAL, 2 x
400 Mw power rate and 2 x KA26 Alstom Power
technology, commissioning and commercial operation was completed with success.
| In Castejón, Navarra and in consortium with
Alstom Power, commissioning activities were
carried out on the 400 Mw Unit for Hidrocantábrico
and which is already operating commercially.
| In Son Reus (Palma de Mallorca), Duro Felguera
Energía constructed a combined cycle power plant
with one 225 Mw unit for GESA – ENDESA, based
on 3 x KA8C Alstom Power technology. This plant
had been operating commercially in open cycle
since June 2001 and the works to place it in commercial operation in combined cycle were carried
out in 2002.
68
| Tuxpan Project, in Veracruz – Mexico, also for Comisión
Federal de Energía with Siemens Westinghouse technology, consisting of a power generation plant of one
150 Mw turbo generator (1 x 150 MW) to operate in
open cycle.
Of the contracts awarded in 2002 the most relevant, not
only for the size of investment, but also for the widened scopes and responsibilities, are those listed below and in which
Duro Felguera Energía is the main contractor.
| For ENDESA – UNELCO, located in Gran Canaria, Duro
Felguera Energía was awarded the complete execution
of the gas fired power generation plant Barranco de
Tirajana, with General Electric gas turbines and a
combined cycle configuration, and with Alstom steam
turbine, to generate 219 Mw.
| For ENDESA – GESA II, located in Palma de Mallorca,
Duro Felguera Energía was awarded the complete execution for a gas fired power generation plant, namely
Son Reus II, with General Electric gas turbines and a
combined cycle configuration, and with Alstom steam
turbine, to generate 218 Mw.
The execution of both projects is currently in progress.
123456 7/8/03 09:57 Página 69
MONTAJES DE MAQUINARIA DE PRECISIÓN, S.A.
MOMPRESA
The constant trajectory of Mompresa is once more
worth stressing. Throughout the year it has maintained its activities and reinforced it presence in the traditional markets of turbine and rotating machinery in
general, mainly within the power generation sector
where it acts on first phase equipment erection and
assembly and in later overhauls and programmed
maintenance outages.
The spread of its activities has been maintained
both in Europe and in Latin America, as can be seen in
the summary of works carried out and awarded in
2002 below:
Works carried out in 2002 to be noted:
| Of the contracts established for periodical overhauls of machinery belonging to foreign and
Spanish manufacturers and power generating
companies, 23 Turbogenerators and Auxiliary
Equipment were revised for different power
generation plants in Spain, Italy and Turkey
exceeding 7,2 Gw.
| Erection and assembly work was finalised on the
335 Mw turbogenerator at the Naco Nogales
Combined Cycle Plant in Mexico.
| Also finalised last year were the civil works and
electromechanical erection awarded in conjunction with the Power Systems Line for SiemensWestinghouse at the El Sáuz II and El Encino
Power Plants in Mexico.
| In Spain, the works on the combined cycle plants
of Son Reus I, Besós, San Roque and Castejón,
with Alstom turbines, were also finalised.
The most relevant contracts
| For General Electric in Turkey – overhaul of 3
alternators and 1 steam turbine at a power
generation plant.
| For Alstom in Italy – overhaul of 6 turbines at 3
power generation plants.
CORE BUSINESS
MOMPRESA
Overhauls of:
| Gas and Steam Turbines
| Generators
| AuxiliaryTurbines
| Engines
| Heater pumps
| Condensators
| Fans
Erection:
| Gas and Steam Turbines
| Turbogenerators
| Power generation plants, especially simple
and combined cycles
Predictive Maintenance:
| Vibration analysis
Quality:
Certificate AENOR: UNE-EN ISO 9002 / 1994
| Several overhauls were awarded for various customers, i.e. ENDESA, UNION FENOSA, IBERDROLA,
HIDROCANTÁBRICO, SIEMENS, GENERAL ELECTRIC,
ALSTOM, etc, all in Spain, on different turbogenerators and auxiliary equipment.
| In conjunction with Duro Felguera Energía, the erection of turbogenerator units on the new combined
cycle projects Son Reus II and Barranco de Tirajana
were also awarded.
69
123456 7/8/03 09:57 Página 70
OPERACIÓN Y MANTENIMIENTO, S.A.
OPEMASA
The deep involvement of the Power Systems Line in
power generation projects has increased with the recent
creation of the company OPEMASA, in which Mompresa
holds a majority share interest, and which covers the everincreasing demand by customers for scope and guarantees
in this area. With the incorporation of OPEMASA, commissioning, operation and maintenance activities are more
within reach whilst at the same time projecting a more solid
image of responsibility before the customer and increasing
business opportunities.
Fields of Action and Activities:
The main fields of action where OPEMASA is already
operating with clear perspectives for future growth are:
Open and Combined Cycle Power Generation Plants, Cogeneration Plants and Diesel fired Plants, in which it carries
out commissioning activities.
The OPEMASA commissioning business basically comprises execution and administration of procedures, establishing equipment delivery schedules, coordination of subcontracted services and preparing and coordinating turnovers
to the operation and maintenance personnel.
CORE BUSINESS
OPEMASA
Precommissioning:
| Final erection supervision
| Punch lists
| Compilation of documents
Commissioning:
Operation and Maintenance
On those projects where the following works form a part
of the scope, OPEMASA is more than capable of carrying
them out with full guarantees; Operation of Systems up to
provisional acceptance (PAC), operation and maintenance at
first levels and integral maintenance of power generation
facilities.
| Equipment tests
Start-up:
| Execution and administration of procedures
| Delivery schedules
| Coordination
| Preparation of turnovers and coordination
of delivery
Operation and Maintenance:
| Operation of systems up to provisional
acceptance
| 1st level operation and maintenance
| Complete maintenance of installations
70
To carry out these activities, OPEMASA relies upon the
various Duro Felguera subsidiaries, as well as its own highly
qualified technical personnel, summing long-standing
experience to the development of engineering, manufacture
of certain components, erection and maintenance of power
generation plants.
123456 7/8/03 09:57 Página 71
STORAGE
LINE
FELGUERA – IHI, S.A.
Board Member: Mr. Antonio Martínez Acebal
The capacity to adapt to different market demands is for
Felguera-IHI one of the main virtues of its potential and
which has sustained it ahead of its competitors and has
significantly contributed to the fact that the company surpassed the year’s budget by more than 78% in 2002. It will
therefore continue to the modernisation and extension of
storage plants for some of the most notable customers in
the petrochemical sector.
The advantages that its wide range of products offers,
sustained by modern and experience engineering, gives the
company amply guaranteed access to contracts for cylindrical and spherical vessels of the most stringent technical
specifications and to complete turnkey storage plants.
Felguera-IHI has ample experience in this type of contractual mode participating in some cases with vested share
interest demonstrating a self-confidence of the highest
level.
PRODUCTS
Engineering, design, manufacture and erection of
storage plants on a turnkey contract basis.
| Storage plants for crude oil, derived products
and chemicals
| LNG regasification plants
Engineering, design, manufacture and erection of
individual storage equipment.
| Fixed- and floating -roof tanks
| Fixed-roof tanks with floating screen
| Cooling and cryogenic tanks
| Spherical storage pressure vessels for the
chemical and petrochemical industries
| Silos and thickeners
Quality:
Certificates:
AENOR: ISO 9002 / 1994
Main contracts awarded in 2002
| In the field of fossil fuel storage, the project
at the regasification plant in Barcelona for
ENAGAS particularly stands our due to its
technical complexity. This contract consists
of the design, engineering and construction
of one total containment tank to store
Liquefied Natural Gas at a temperature of
–170ºC. The tank comprises of an external
armoured concrete tank and an internal recipient of 9% nickel-steel alloy, as well as the
internals, externals and accessories.
Main contracts executed in 2002
Just to illustrate, the following projects are some of those executed or finalised in 2002:
| For CEPSA in Huelva, 2 dome-roof tanks of 50.000 m3 each
to store gas oil.
| In keeping with its international expansion in
2002, it was awarded 2 tanks for a petroleum
oil/water separation process destined for
Libya.
| A turnkey ammonium storage plant for PROQUIMED-UBE.
| Consolidating its presence in the main refinery expansion projects, a 100.000 m3 tank
for crude oil storage was awarded by REPSOL-YPF in Puertollano.
| A set of 6 vertical tanks for IHI-NISSAN at the NISSAN
MOTOR IBERICA plant in Montcada (Barcelona)
| Also for REPSOL-YPF, 2 tanks of 50.000 m3
each for gas oil and destined for the refinery
at Puertollano.
| For SINAE in Jaén, 2 taper-roof tanks of 3.000 m3 each to
store olive oil industry products.
| For the CEPSA factory in Huelva, one 4.000 m3 spherical
tank to store butane.
| Complete turnkey plant to store petroleum derived products
at Motril (Granada) for SECICAR.
71
123456 7/8/03 09:57 Página 72
INTERNATIONAL
LINE
DURO FELGUERA MÉXICO, S.A. DE C.V.
Director: Mr. Angel Peña Menéndez
PRODUCTS
ERECTION OF THE FOLLOWING TYPES OF
PLANTS:
| Power: Coal, gas fired combined cycle,
hydraulic
| Petrochemicals: New plants, modernisation
and extension of already existing plants
| Gas: Gas ducts, regasification plants, etc.
MAINTENANCE:
| Combined Cycle Plants
| Others
Working under its new name, this Mexican company
has maintained its activities mainly in the power sector
where it continued to develop last year and where it has
future business prospects given development programmes
and the levels of market consolidation that Duro Felguera
Mexico has reached with various projects already finalised
and in operation.
Market prospects increase with the investment programmes foreseen in the petrochemical sector among
others, reinforced by strategic alliances, e.g. with Grupo
Diavaz and the incorporation of complementary companies, as is the case with the recently acquired Mexican
engineering firm, PYCORSA.
Quality:
Certificates:
ISO 9000 / 2000
ISO 14000 (in the pipeline)
Works Executed or ongoing
During 2002, Duro Felguera México continued with its
work and finalised some of the major contracts that were
already in progress. It has continued with those contracts
already awarded and in development such as:
| Finalisation and start-up of the 330 Mw combined
cycle plant in Valle de México for Alstom.
| In the traditional coal fired sector, Duro Felguera
México continued with the electromechanical erection works for the 520 MW Power Plant at Tamuin.
Significant Contracts obtained in 2002
The local part of the PEMEX contract for the extension
to 400.000 t./year of the Pajaritos chloride derived products
plant was awarded to Duro Felguera México in 2002 and
civil works have already commenced. The main contract
had previously been awarded to Duro Felguera, S.A. The
execution conditions of this contract pose an interesting
challenge, as it requires exhaustive programming, experience and capacity due to the fact that it must be executed
whilst the current plant is in operation and without creating any interference.
Within the power industry sector, of significance is the
contract for Unión Fenosa, Soluziona to execute mechanical erection of the whole plant, and the supply and erection
of BOP piping at the 335 MW de Naco-Nogales gas-fired
power plant.
72
123456 7/8/03 09:57 Página 73
Commercial Activity
Duro Felguera México has been active
commercially and has presented various
offers for projects in diverse areas, power
generation and petrochemical industries
fundamentally, and has continued to support the different Duro Felguera business
lines in Spain by aiding their marketing
potential on the Mexican markets.
Human Resources
The Human Resources Department has continued to focus its
efforts in training Mexican personnel. To do this it has relied on
the one hand upon the support of Duro Felguera technicians who
have gone to Mexico on specific occasions, and on the other, it has
relied on experience gained on several already executed projects
or those undergoing construction where the level of training has
been patent given the grade of quality on executed works certified
by their customers. The average workforce during 2002 consisted
of 1,198 workers.
Quality Policy
The quality policy continued to be a firm objective in 2002, as
demanded by market requirements and attending to customer
grade of compliance in this respect and in delivery schedules.
Objectives were reached and a constant effort was made to achieve improvements in cost factors, quality and delivery dates. The
corresponding ISO 9000 / 2000 certification was obtained recently
and adjustments are being made to meet requirements for the ISO
14000 certification relating to protection of the environment.
73
123456 7/8/03 09:57 Página 74
PROYECTOS E INGENIERÍA PYCOR, S.A. DE C.V.
PYCORSA
Director: D. Joaquín Rodríguez Torreblanca
PRODUCTS
ENGINEERING SERVICES:
| Basic Engineering
| Detail Engineering
| Technical Assistance
| Special Reports
PROJECT DEVELOPMENT:
| Technical and Financial Studies and
Evaluations
| Technology Selection
| Topographical Studies
| Environmental Studies
| Financial Studies
PROJECT ADMINISTRATION:
| Planning, Administration and Control of
Resources
SUPPLIES:
| Purchasing
| Inspections
| Logistics
Quality
Certificates
NMX-CC-003/1995, ISO 9001/ 1994
With the recent majority share interest acquired in the engineering firm PYCORSA, Duro
Felguera strengthens its presence on the
Mexican and adjacent markets by complementing its service capacities with engineering, which
in this case is specialised in the principle industrial sectors of the region.
PYCORSA is a Mexican company with more
than 27 years of experience in the public and private industrial sector and attends to the demands
of industrial projects from its head office in
Mexico City. It has wide experience in a varied
number of disciplines, i.e. production, processes
or storage in the power and petrochemical sectors of industry amongst others. When project
characteristics so require, PYCORSA is able to
establish work centres near customer installations.
References and finalised or ongoing contracts
With an extensive list of clients in which the
following figure:
74
| Comisión Federal de Electricidad.
| Comisión de Aguas del Valle de México.
| Comisión Nacional de la Industria Azucarera.
| Exxon México.
| Foxboro.
| Grupo Desc.
| Gulf Engineering Co. (USA)
| Kimberly Clark de México.
| Mitsui.
| PEMEX.
| Praxair.
| PRC Environmental. (USA)
| Snamprogetti. (Italia)
| Spie Batignoles. (Francia)
| Tennessee Gas Co.
| Universal Ensco Inc. (USA)
| Williams Brothers Engineering Co. (USA)
PYCORSA has recently carried out or is currently
executing works for the extension of the Pajaritos
refinery chloride III plant for PEMEX, a Polyethylene
Plant for Escolin and Nitrogen plants for Praxair,
among others.
Human Resources
The nature of PYCORSA’s typical activities
demands constant attention to its main asset, its
people. Human and material means are applied to
maintain the best working conditions possible and
the most modern methods of production based on
computer support to aid and assure the quality of the
environment and the final product.
Last year the average workforce at PYCORSA consisted of 124 people with a peak of 210. These variations mainly depend on the workload of the projects
in progress.
Quality Policy
Since 1999 PYCORSA holds the Quality Assurance
System certificate for the Standard NMX-CC003/1995, ISO 9001/ 1994, issued by Instituto
Mexicano de Normalización y Certificación, (the
Mexican Standards Organisation) registered under
number RSC-200.
The scope of the procedures covers engineering
services, studies and projects for different sectors of
industry.
It employs Mexican, European or North American
codes and standards to develop projects and is
currently working towards the ISO 9001/ 2000.
123456 7/8/03 09:57 Página 75
DIRECTORY
123456 7/8/03 09:57 Página 76
DIRECTORY
PARENT COMPANY
SUBSIDIARIES
Registered Address:
| DURO FELGUERA, S.A.
C/ Marqués de Sta. Cruz, 14
33007 Oviedo (Asturias)
Spain
| CHAIRMANSHIP
| Chief Executive Officer
Tel.: +34 985 22 97 00
Fax: +34 985 21 93 39
e-mail: [email protected]
| SECRETARY GENERAL
| Board Secretary, Legal Counsel,
| Patrimony & Archives
Tel.: +34 985 22 60 20
Fax: +34 985 22 99 56
| MARKETING & DEVELOPMENT
Tel.: +34 985 22 97 00
Fax: +34 985 21 93 39
| ORGANISATION
| & HUMAN RESOURCES
Tel.: +34 985 21 80 30
Fax: +34 985 20 39 34
| FINANCE
Tel.: +34 985 22 63 83 / 22 99 19
Fax: +34 985 20 39 34 / 21 96 99
| DURO FELGUERA, S.A. ENERGÍA
C/ Rodríguez Sampedro, 5 –7º
33206 – Gijón (Asturias)
Spain
Tel.: +34 985 17 94 00
Fax: +34 985 34 64 74
OFFICES IN MADRID
| DURO FELGUERA, S.A.
C/ Juan Esplandiú, 13-12ª B
Edif. Centro O'Donnell
28007 Madrid
España
Tel.: +34 91 504 3545 - 91 504 3646
Fax: +34 91 504 6446 - 91 504 64 53
76
| ACERVO, S.A.
C/ Marqués de Sta. Cruz, 14
33007 Oviedo (Asturias)
Spain
Tel.: +34 985 22 63 83
Fax: +34 985 22 42 17
| DURO FELGUERA EQUIPOS
| Y MONTAJES, S.A.
Travesía del Mar s/n
33212 – Gijón (Asturias)
Spain
Tel.: +34 985 32 26 00
Fax: +34 985 30 00 86
| FELGUERA CALDERERÍA PESADA, S.A.
Travesía del Mar, s/n.
33212 Gijón (Asturias)
Spain
Tel.: +34 985 32 26 00
Fax: +34 985 32 56 50
| FELGUERA CALDERERÍA PESADA
| SERVICIOS, S.A.
Travesía del Mar, s/n.
Spain
Tel.: +34 985 32 26 00
Fax: +34 985 32 56 50
| FELGUERA CONSTRUCCIONES
| MECÁNICAS, S.A.
Crta. de Langreo-Oviedo, s/n
33930 Barros (Asturias)
Spain
Tel.: +34 985 67 97 00
Fax: +34 985 67 97 02
| FELGUERA MELT, S.A.
Prolg. Ing. Fernando Casariego, s/n
33930 La Felguera (Asturias)
Spain
Tel.: +34 98 569 56 11
Fax: +34 98 569 64 65
123456 7/8/03 09:57 Página 77
| DIRECTORY
| FELGUERA MONTAJES
| Y MANTENIMIENTO, S.A.
Spain
Tel.: +34 985 67 97 50
Fax: +34 985 67 97 97
| FELGUERA PARQUES Y MINAS, S.A.
Centro de Proyectos e Ingeniería
C/ Hornos Altos, s/n (Valnalón)
Spain
Tel.: +34 985 67 98 00
Fax: +34 985 67 37 63
| FELGUERA REVESTIMIENTOS, S.A.
| FERESA
Spain
Tel.: +34 985 67 97 50
Fax: +34 985 67 97 97
| FELGUERA TECNOLOGÍAS
| DE LA INFORMACIÓN, S.A.
C/ José María Martínez Cachero, 15 - bajo
33013 – Oviedo (Asturias)
Spain
Tel.: +34 985 27 29 89
Fax: +34 985 27 59 60
| TÉCNICAS DE ENTIBACIÓN, S.A.
| TEDESA
Polígono de Silvota, parcela 10
33192 Llanera (Asturias)
Spain
Tel.: +34 985 26 04 64
Fax: +34 985 26 14 16
| MONTAJES DE MAQUINARIA
| DE PRECISIÓN, S.A.
| MOMPRESA
C/ Rodríguez Sampedro, 5, 8ª
Spain
Tel.: +34 985 17 94 94
Fax: +34 985 35 53 77
| DURO FELGUERA
| PLANTAS INDUSTRIALES, S.A.
Spain
Tel.: +34 985 67 98 00
Fax: +34 985 69 37 20
| OPERACIÓN Y MANTENIMIENTO, S.A.
| OPEMASA
C/ Rodríguez Sampedro, 5, 8ª
Spain
Tel.: +34 985 17 94 94
Fax: +34 985 35 53 77
| FELGUERA GRÚAS Y ALMACENAJE, S.A.
Spain
Tel.: +34 985 67 98 00
Fax: +34 985 67 37 63
| FELGUERA-I.H.I., S.A.
Parque Empresarial Las Rozas
C/ Jacinto Benavente, 4
28230 Las Rozas (Madrid)
Spain
Tel.: +34 91 640 20 51
Fax: +34 91 640 21 00
77
123456 7/8/03 09:57 Página 78
SUBSIDIARIES AND BRANCH
OFFICES ABROAD
MEXICO
INDIA
| DURO FELGUERA MÉXICO, S.A. DE C.V.
Río Tíber, 66 Piso 6
Col. Cuauthémoc
06500 – México DF
México
Tel.: +52 5 55 08 000 51
Fax: +52 5 55 08 013 32
| DURO FELGUERA S.A.
India Representative Office
408, JOP Plaza, P-2, Sector 18
Noida (U.P.) - 201 301, adjoining New Delhi
India
Tel.: + 91 120 451 6210 / 11
Fax: + 91 120 451 6310
| PROYECTOS E INGENIERÍA PYCOR, S.A.
| PYCORSA
Río Tíber, 66 Piso 6
Col. Cuauthémoc
06500 – México DF
México
Tel.: +52 5 55 53 358 90 / 93 / 94
Fax: +52 5 55 20 760 11
BRAZIL
| DURO FELGUERA POWER MÉXICO, S.A.
| DE C.V.
José Benítez 2228 B Altos. Colonia Obispado
Monterrey 64060
Nuevo León – México
Tel.: + 52 81 1052 8610
Fax: + 52 81 1052 8609
U.S.A.
| TURBOGENERADORES DE MÉXICO, S.A.
| DE C.V.
José Benítez 2228 B Altos. Colonia Obispado
Monterrey 64060
Nuevo León – México
Tel.: + 52 81 1052 8610
Fax: + 52 81 1052 8609
VENEZUELA
| FELGUERA PARQUES
| Y MINAS DE VENEZUELA, S.A.
Urbanización Santa Elena. Manzana 15 Casa B4
Sector Río Aro
Puerto Ordaz – Ciudad Guayana
Estado Bolívar – Venezuela
Tel.: + 58 41 48 92 82 46
Fax.: + 58 28 69 51 26 29
78
| DURO FELGUERA DO BRASIL LTDA.
Alameda Jaú, 1528 - Coj. 62
01420-002 - São Paulo
Brasil.
Tel.: + 55 11 306 305 38 / 40
Fax: + 55 11 306 305 39
| DURO FELGUERA
Delegación en USA
205 Cádiz Court
Merritt Island - Florida 32953
U.S.A.
Tel.: + 1 321 452 6162
Fax: + 1 321 427 4085
JORDAN
| DURO FELGUERA P.I., SA
Jordan Branch
C.O. No 8 - 3rd floor.
Haddad Center Building, Suweifiyeh
P.O. Box 141556
Amman 11814 - Jordan
Tel.: + 962 6 5821366
Fax: + 962 6 5821366
123456 7/8/03 09:57 Página 79
| Dep. Legal
AS-
79
123456 7/8/03 09:57 Página 80
80

corporate governance

Transcripción

Documentos relacionados

PRUEBAS UNIFICADAS DE CERTIFICACIÓN

Colorear con Paquito el Pingüino, Número 1

american and british english differences