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CEO's Year-End Message
31st December 2009
Dear All,
We are just about to end another year in our life cycle. For EQUATE, the 2009 was an eventful year. The global financial crisis, which started towards the mid 2008, has had a more devastating effect in our industry and the business we are in, along with other internal challenges. EQUATE employees took these challenges with great confidence as an opportunity to fine tune and transform into more efficient operations and business opportunities to attain plans for the year and getting ready for an expanded Greater EQUATE.
Despite all of such difficulties, we recorded significant achievements throughout the year! Most importantly, we were able to position EQUATE as a world class Corporate for long-term growth and stability. Let me start by reviewing some of this year's highlights in various business aspects.
Top of the list is our safety achievements. As I write this letter, we are about to cross a historic milestone of 21 Million safe work hours by not having any Day Away from Work Case (DAWC) for employees and contractor staff since August 2006. This is a rare industrial record accomplished by our employees through strict adherence of safety policies. Every employee of EQUATE should be proud of this great record achieved despite a very challenging environment of on going construction, operational and start up activities during this period.
Greater EQUATE dream is now realized as all of new Units related to Olefin II are up and running. Adding to it, we successfully and safely started up the operation of the 450,000 MTA Ethyl Benzene - Styrene Monomer facility during the 3rd quarter of the year, followed by another safe and successful operation of PE Unit expansion. Lately in the month of December, we have declared the start up of the Aromatic Plant by which we completed operating all new units as part of the expansion projects at Greater EQUATE Petrochemical Complex. On top of these, EQUATE and TKOC units successfully completed the Owner's Reliability Test (ORT) as planned in November 2009. All these consequent events are unforgotten milestones in our history!
On behalf of the Board of Directors of EQUATE and the Management Team, I would like to acknowledge the tremendous effort made by every EQUATER towards achieving our goals.
In 2009, EQUATE has been recognized by the media and industrial intellectuals as the trendsetter in safety and operational standards in the industrial sector in Kuwait through leading by example. During the year EQUATE emerged as the 'Gold Award' winner of the prestigious HSE Excellence Award 2009 in the Manufacturing (Hydrocarbon) Category instituted by the American Society of Safety Engineers (ASSE) Kuwait Chapter. EH&S also brought glory to EQUATE by excelling in an integrated EH&S Audit conducted by the Dow and achieving Common Management System (ODMS 05) and Responsible Care (ODMS 06). In addition, our Ethylene Unit received the Dow Technology Award for the development and implementation of Most Effective Technology design improvements for the Commissioning and Start up of the Olefin 2 ethylene project and the Unit has successfully completed Dow's Asset Performance Plus (AP Plus) Assessment. These great results attributed to exceptional performance demonstrated by our employees and driven by all supportive functions across the organization. It is a true reflection of teamwork and efforts made by EQUATE leaders supported by the entire EQUATE employees. We all, EQUATE Team, should be proud of these amazing results!
As always, throughout the year EQUATE continued its implementation of people development plans for employees to enhance people skills and promote their technical expertise. Many of high quality training and development programs were conducted despite all challenges surrounding us. EQUATE commitment to focus on its most valuable asset 'people' shall continue in 2010; and more of various training and development programs have already been planned.
I should mention that the Management was very considerate in positively responding to various suggestions received from employees for improving work environment. This includes a change in working hours and other benefits implemented in 2009. This practice will continue as long as we witness an impact on the Company overall results and deliverables by employees.
As far as the Company performance is concerned, we have almost met the production and business goals for the year. Even though we forecasted margins to fall in 2009, the Company maintained its profitability by increasing effectiveness in production, rationalization of operating costs and strengthening sales capacity by which we gained better profits than planned! Very few companies could do this in 2009!
All in all our overall performance stood above plan despite all challenges due to the worst financial turmoil hit the global economy. Nevertheless, we should remain vigilant that the year ahead is more challenging for EQUATE in terms of sustaining our competitive advantages and enhancing our success story under trough market conditions. Many of new capacities are up to come on stream in 2010 in the Gulf and Asia with modest improvement of the global economy as beginning of the recovery. Impact on Supply and Demand will be significant! However, together we shall strive to make 2010 another successful year and keep enhancing our operation reliability. I am confident that all supporting units in EQUATE will keep rendering its level best to make this happen.
I take this opportunity to thank our Board of directors on your behalf for extending all support required to make EQUATE the best work place in the region.
I wish you a restful year-end break. Look after yourselves and your families well this season. My self and rest of EMT members wish all of you a happy and prosperous new year. Be safe and stay motivated.
Proud of you all
Yours sincerely,
Hamad Al Terkait,
President and CEO
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