Welcome to the Spring 2009 HSP Teesside Newsletter
 
We have decided to launch this e-newsletter in order to keep you informed of all the most recent developments within our company and the industry. I look forward to sharing this information with you in future editions.

We are constantly evolving as a business yet this evolution would not happen without the strong team and excellent work ethic we have developed at HSP. By continually expanding our service offering and our product portfolio we are acknowledged to be one of the most progressive companies in our field.

Our success has been built on over many years by providing customers with a reliable and exceptional service, coupled with offering the most appropriate valves from our stock of the world's leading valve manufacturers.

This is an exciting time for us, we are continuing to grow as a business, and we have recently doubled our stock holding to over £5m in our Teesside and Aberdeen warehouses in reaction to the recent industry demands.

To strengthen our ongoing commitment to providing unrivalled levels of service in response to our growth, we have increased our staff levels to ensure that deliveries are made on time and that stock is maintained and selected to suit local requirements and specifications.

Don't forget to visit our updated website, click here now. We hope that you enjoy our first newsletter and would appreciate any feedback.

Peter Everett
Chief Executive
  H.S. Pipequipment appoints new Sales Engineers in the North East of England
  To strengthen our ongoing commitment to providing unrivalled levels of quality and service, we are delighted to announce the appointments of Dennis Skelton and Robin Glew as Sales Engineers.

These appointments will help to support and maintain HSP’s position as the leading distributor of valve packages to the Oil and Gas market in the UK and our enviable reputation amongst our customers.

Dennis brings a wealth of experience with him having worked in the valve industry in the North East for over 20 years. Furthermore, in the last ten years he has established and operated a branch of a major valve stockist in Teesside. In this role he built up an outstanding status for ensuring deliveries were made on time and that stock was maintained to suit local requirements.

Robin has already been with HSP for 12 years and during this time has built a reputation for responsiveness to customer needs and selecting products that meet client specifications.

Peter Everett, CEO of HS Pipequipment comments, “I am particularly excited by the increase of our sales presence in the Teesside area. The addition of Robin and Dennis to our sales team will help us to continue the growth we have seen in our business in the region. Combined with our world leading products like Bonney Forge, Maxseal, Audco Ball Valves and Larsen and Tubro Gate valves, these appointments will ensure we build on our leadership position in the Valve Industry.

These appointments demonstrate continual commitment to offering exceptional level of customer support to the Petrochemical Industry in the UK.
  H.S. Pipequipment appointed authorised UK stockist for Audco Ball Valves
  We have further extended our valve offering, by becoming the authorised UK stockist of Audco India Limited (AIL) Ball valves.

Audco are the world’s leading Gate, Globe and Check valve manufacture, having a presence in more than 50 countries and an international reputation for providing engineered solutions for the oil, gas, refining and petrochemical industries.

The new stock range of Ball Valves manufactured by Audco is available with flanged ends, in sizes up to 150mm (6ins) and in pressure ratings up to ASME Class 300. The ball valves are of a floating ball design, where seating takes place by allowing the ball under pressure to move towards the downstream seat to affect a tight seal. The floating ball is the universal choice for most process and utility applications.

The valves include such features as antistatic features, blow out proof stems and leak tight stem sealing. Build-up of static electricity can occur as a result of constant rubbing of the ball against PTFE seats. This can be a potential fire hazard, especially while handling inflammable fluids. To provide electrical continuity, spring-loaded plungers are provided between the stem and the ball in single-piece and two-piece reduced bore (80mm and above) and full bore (40mm and above) valves. For smaller sizes, this is achieved through 35% Carbon-filled PTFE stem seals. Depending on the choice of seals, the designs also provide for additional spring-loaded plungers between the stem and the body for full mechanical antistatic cap.

All AIL Ball Valves have a bottom-entry stem design which features stem insertion from inside the body. An integral shoulder on the stem sits against the shoulder in the body giving it blowout proof integrity.

The higher the line-pressure, the tighter the seal. This design offers safety features superior to top entry stem design where the line pressure works to break the stem seating. Audco have a second-to-none reputation for delivering value-added flow control solutions and the company is continuing to gain major approvals from most end users in the oil and gas industry, including: Shell Plc.

The reduced bore valve stock that we hold includes single piece valves and full bore valves. The valves are available in size ranges from 15mm to 6ins, in 150//300 pressure classes and in a range of materials including WCB, CF8M and LCC.

Peter Everett, CEO of HSP commented, “The Audco ball valves complement our extensive range of world leading products. The valves have approvals from many end users and have application throughout most Petrochemical Plants. Their proven track record will ensure that they are a commercial success in the UK”.
  Adding Value: Manufacturers and Distributors
  As global manufacturers seek to expand their business, one of their biggest challenges is to decide how to market their products in different parts of the world. A key part of this is their ability to understand industrial sectors in different parts of the world and to find the best ways to communicate with customers. The question for the manufacturer is where best these processes can be performed and by whom. They have the choice of using their own employed staff or to utilise third parties e.g. Local Agents or Distributors.

Employing staff in differing countries can be extremely difficult for manufacturing companies whose primary focus is the design and supply of products. Options for the manufacturers include employing their own staff or utilising the services of a third party such as a Sales Representative or Agent. Employing and managing staff in multiple locations can be a costly and difficult process. Another option is the appointment of a third party such as a sales representative or agent to represent the interest of the manufacturer. These independent sales organisations have, as their primary focus the selling of products and services to specific markets. They can often provide specific sales support to manufacturers and do this is a manner that entails lower costs and quicker results.

Of course there are always concerns that adding organisations to a channel of distribution will result in increased costs. The experiences of Manufacturers and their third party Sales Representatives or Agents are however, different from this.

Typically once the relationship of the Manufacturer and Sales representative is stabilised the overall cost is reduced. The reason for this is that manufacturers and distributors are themselves always trying to reduce their own costs and to improve their own processes.

Flowserve is a recognized supplier to the Oil and Gas Industry. In addition to its extensive pump and seal lines, its valve brand names include Serck Audco lubricated plug valves and ball valves and Valtek control valves.

As a manufacturer with aggressive global expansion targets Flowserve needs Sales Partners that provide quick, accurate information and have the insight of the local market and the energy to deliver new business.

In 2007 Flowserve Oil and Gas appointed H S Pipequipment Ltd as their Sales Representative for Control Valves for the Engineering Contractor Market in the UK.

As a company, we represent many world-class valve manufacturers including OMS Saleri, Larsen and Tubro and Bonney Forge. We are proud to have a reputation for World Class service and our credibility enables us to have first class relationships with our customers throughout the UK, especially with the UK based Engineering Contractors (e.g. KBR) that service the Global Oil and Gas Industry. As a result of our unique position in this sector, Flowserve appointed us as their Sales Representative for control valves with these customers.

Our role is to guide manufacturers in their understanding of the EPC market and the requirements in terms of regulations specifications and documentation as well as to help them win business. In this arrangement the two Companies work together by sharing information and agreeing strategies for business.

Sales Representatives like us add value to the Supply Chain by providing skilled, local and responsive staff to assist with all aspect of the supply of products and services. We also add value by building our product portfolio in such a way that we are able to offer a complete package of valve requirements. In addition, we hold stock of valves and spares that can be of critical value when short deliveries are required.

It should be noted that whilst manufacturers and distributors will formalise their working relationship with written agreements it takes time for the relationship to “bear fruit”. In a long established marketplace where other products are available it can take time to establish a new brand in the market.

The key to success as a Sales representative is good communication and understanding with their Manufacturers, many of whom are based in different parts of the World. It’s constant communication that enables the Manufacturer to optimise its channel of distribution and ensure the Sales Representative provides the best service to its Customers.

Customers can therefore be confident that the addition of organisations to the supply chain does not necessarily result in increased choice. More often it results in more choice, lower costs and added value.
  Go with the Flow
  Valves play a critical role in the construction, control and safety of operations. Increased investment activity and changes in the location and size of projects are creating increased challenges for procurement specialists within the industry. In addition, fluctuations in commodity prices and currencies and fast tracking of investment programmes are affecting the availability of materials.

For the procurement manager the loss of skills from the UK engineering sector compounds these pressures. As a result the need for service companies such as valve stockists and distributors is increasing.

The UK stockist and distributor today now has to be a service specialist, not only with regard to the supply of valves, but also with regard to services in logistics, engineering, actuation, project management, expediting and documentation. Health and Safety concerns and the need for traceability are driving the need for extensive documentation of the procurement, manufacturing and testing of valves.

Whilst the valve industry is not normally associated with technology, changes in operating environments have resulted in the use of more sophisticated designs and materials. An experienced distributor must therefore provide balanced advice on materials as well as the products themselves.

Despite recent investments in Valve Manufacturing plants and foundries, most valve manufacturers still have full order books. This has meant that delivery periods are still at historical highs. Gone are the days when engineering contractors could expect ball valves in four to six months. Now clients have to consider valves not just as items requiring expert evaluation but also requiring proactive planning and sourcing.

As demands and standards in the industry increase, distributors can play a pivotal role in the Petrochemical Industry by providing support as well as products. The challenge for distributors is to improve their services and so ensure they are relieving the pressure in the industry.
  Relieving the Pressure
  Increased capital and operational investment in the Oil, Gas and Petrochemical industry is creating unique challenges for procurement specialists. The location, size of projects and fluctuations in commodity prices and currencies are making procurement decisions increasingly complex. In addition, fast tracking of major investment programmes is affecting the availability of materials.

As a result the role of stockist and distributor to supply key materials such as valves has become vitally important within the market. The current surge in the international valve market has been driven in part, by a high global energy demand. For new build projects, the percentage spent on valves and maintenance programmes is typically 5%, with valve procurement being critical to the success of any new investment.

Increasing demands for punctual and precise delivery details on any order are fundamental requirements. Attention to detail of procurement, product identification and inspection are vital attributes to the smooth and successful project, irrespective of an increasingly diverse range of products and technical specifications.

The loss of skills from the engineering sector in the UK in the past ten years has been well documented. As customer technical and procurement resources within the industry have become stretched. This has resulted in a greater emphasis upon the role and responsibility of distributors and suppliers.

Issues of Health and Safety are vitally important; documentation of the procurement, manufacturing and testing process of valves has become a service that must be completed shortly after delivery of valves.

Valves have to be made to exact specifications as defective products could prove to have serious consequences. This means that the company supplying the valves and the manufacturer have to be audited to ensure the highest standard of material integrity and design.

Responding to these changes productively has been a key element in the growth of H.S.Pipequipment. Developing our network as a leading valve distributor, we have extended our value offering with the new appointment and authorisation to be the UK stockist for Larsen & Toubro Gate, Globe and Check valves. The stocking of the L&T valve range compliments our comprehensive portfolio of on–the-shelf products including: Bonney Forge, Audco Ball Valves, Maxseal, Crane Stockham and Hobbs Valves.

A crucial response to the changing market is to ensure stock levels meet with the growing demands, especially with valve manufactures quoting extended lead times in excess of 52 weeks, sufficient stock levels are essential. We have reacted and responded by maintaining the pace through the doubling of our stock holding in our Teesside and Aberdeen warehouses. Whether it’s a small bore forged valve or a large trunnion mounted ball valve, we recognise the importance of a comprehensive holding of world-class valves.

When it comes to refitting operating sites there is always a requirement for shutdown planning and for the distributor to be close to staff on site to offer support and guidance. We work conscientiously to identify market trends and anticipate what projects may entail. This allows for a quick response in case of unexpected requirements.

Peter Everett, CEO of H.S.Pipequipment comments, “At the heart of any distributor, are its manufacturers. It is important to build up a relationship of trust and mutual support so that we are able to offer a seamless communication link between the manufacturers and customer. The stockist and distributor is a specialist not only with regard to the supply of valves, but also with regard to services in logistics and project management."

We are constantly monitoring the market to ensure we have the appropriate valves for any project. As a company we are continuing to grow our portfolio of valves and are working even closer with our customers and manufacturers to ensure valves get to site on time and to their exact specification. As a result we has seen sales growing to over £20m per annum.
HSP (Northern) Ltd.
Units 12/13, Primrose Hill Industrial Estate
Orde Wingate Way
Stockton-On-Tees
TS19 0GA
Tel: 01642 608999, Fax: 01642 608444, Email: info@hsp.co.uk
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