The Food and Drink Industry Regional Meeting – February 2019

1. The Food and Drink Industry Regional Meeting – February 2019 Luke Kirwin

2. The Food & Drink market in Europe • European market opportunity in the Food & Drink industry • Largest manufacturing sector in Europe • €1,109 billion turnover • 294,000 Food & Drink companies operating within in this industry  • 4.57 million people employed • What does this mean for Belzona?

3. Food, drinks and beverages manufacturing is a non-stop, high production volumes, global industry with many opportunities for.. FOOD AND BEVERAGES

4. Global opportunities with major players Around the world

5. Global opportunities with major players Nestle • Major players within the Food and Drink Industry • Mass production • Global Scale • Huge application potential • Manufacturing sites

6. Major European Food & Drink companies Opportunities • Nestle is the Worlds largest Food & Drink Company • European company operating on a global scale • 447 Factories worldwide with sales in 189 countries • Market potential for Europe? • 115 factories in Europe alone • Huge potential for factory applications • Many more factories all over Europe • Not Just Nestle we can target …

7. Major European Food & Drink companies Opportunities • Unilever • Oldest multinational company • Over 400 brands • Products available in around 190 countries • The Coca – Cola Company • Over 500 brands in more than 200 countries • Over 900 bottling and manufacturing facilities globally

8. Targeting the Food & Drink industry? • What do we think our most common objection in the Food & Drink industry is? … Approvals • How do we overcome this objection? • Non-direct food applications • Targeting applications that don’t come into direct contact with food • Asset management • Mechanical repairs • What about direct contact? • Work in progress

9. Food & Drink industry Opportunities Tank Repair Linings Mechanical Repairs Asset maintenance Belzona Coatings In Food & Drink industry Conveyors and Specialized Equipment Floor repair systems and asset maintenance

10. Asset maintenance

11. Asset Management Protecting your Assets • What is Asset Management in the Food & Drink industry? • Example Applications: • Floors, Walls, Roofs, Pipes. • No direct contact with food • Good asset management results in: • Reduced downtime • Reduced costs • Better Health & Safety • Easier to clean/less contamination

12. Caledonia Cheese loading area - 2014 Problem: • Asset management: Flooring • Milk reception area for Caledonia Cheese • Poor asset management has resulted in the concrete floor heavily cracking • Floor heavily broken down due to a combination of impact from the metal hoses and chemical attack

13. Caledonia Cheese loading area - 2014 Solution: • Belzona 4131 Magma Screed (6mm thick over the 100m2) • Hard wearing, non porous & chemical resistant floor surface • 4 years in service & still in excellent condition

14. Crisp Factory, France - 2017 Problem: • Asset management: Pipes • External pipes in a crisp factory in France • External corrosion problem • Combination of heat and pressure • Condensation

15. Crisp Factory, France - 2017 Solution: • Surface preparation • Hand preparation • Belzona 5851 • Heat activated • Could be applied during service • Excellent finish

16. Food supplier – Midlands – UK, 2012 Problem: • Asset Management: Flat roof of a food supplier • Problem: Months of inclement weather • Cracking in the felt roof • Water infiltration through the walls and gutters into the packing area below

17. Food supplier – Midlands - UK, 2012 Solution: • Surface preparation – Removal of all loose substrate • Fungicidal wash • Fully reinforced Belzona 3131 system – Brush applied on the entire roofing area • Request from the customer: 3rd coat for an emergency walkway.

18. William Grant Distillery - UK, 2018 Problem: • Asset Management: Tank leg supports  • Corrosion due to break down of original paint system • Some tanks had already been condemned • Metal loss • Through wall defects in the tank supports • Non direct contact, potential for a lot of factories

19. William Grant Distillery - UK, 2018 Solution: • Removal of previous paint • Surface preparation: Saturation blasting system (to keep dust levels down) • Belzona 5811 – Hand • Long term corrosion resistance & aesthetic finish

20. Asset Management • Lots of potential applications • Floor • Roof • Pipes • Tanks • Non-Direct contact = No approval needed • Large applications 

21. Mechanical repairs

22. Mechanical Repairs • Typical mechanical repair applications: • Shaft, bearing housing, flange encapsulation and conveyor belt repairs • Belzona as a solution for mechanical repairs • Cost effective solution • Reduced downtime • In-situ repairs • Mechanical repairs = No direct food contact • No approval needed

23. Frozen Food Manufacturer, UK - 2005 Problem: • Asset Management: Shaft • Worn in the bearing area • Increased pressure on the bearing • very short service life • Welded in place • In-situ repair • Belzona 1111 • Forming technique Solution:

24. Conveyor Systems • White Elastomer for Conveyor Repair • Industry Focus e.g. Food & Drink • Belzona 2311 • Emergency repair • Fast return to service • USDA approvable for Incidental Food Contact

25. Mechanical repairs • Typical and common repairs • Non-Direct food contact applications • No approval needed • Targeting on site maintenance team • Gain credibility • Lots of potential applications • Shafts • Pumps • Flanges

26. Tank Linings

27. Tank linings • Storage tanks widely used within the food & Drink industry • Tank protection = Big opportunities • Well protected tank: • Complies with health & safety • Continuous operation/reduced downtime

28. McVities Flour Silo – 2014 Tank linings Problem: • Equipment: Silo • Through wall corrosion • Several defects noted in each of the eight silos onsite • Potential loss of flour containment • Hygiene issue • Flour Beetle noticed in stored product

29. McVities Flour Silo – 2014 Solution: • Surface preparation • MBX Bristle Blaster • Atex restrictions • Plate bonding with Belzona 1111 • Product also used to chamfer the plate to ensure there was no ledge for flour to sit • Coating with Belzona 1341 Supermetaglideto prevent flour ‘hang up’ • Factory manager approved this

30. Cargill Nutrition, Glycol Tank - 2016 Problem: • Equipment: Newly fabricated mild steel tank • Containing Ethylene Glycol • Corrosion expected to be an issue in service

31. Cargill Nutrition, Glycol Tank - 2016 Solution: • Tank turned on its side for easier access • Surface preparation - Grit Blasting • Two coats of Belzona 5811 – Hand applied • Corrosion resistant coating able to withstand the service conditions

32. Tennents Brewery, Vessel Coating- 2016 Problem: • Equipment: Large vessel containing beer • Failed internal lining • Pieces of this lining were found in the downstream process • Non taint requirements

33. Tennents Brewery, Vessel Coating- 2016 Solution: • Belzona 5892 • System complied with food grade approvals & was taint tested prior to the application to ensure it would not affect the final Beer product

34. Tank lining approvals • How were these applications possible without approval? • USDA & FDA approved • Accidental contact approval • Often not sufficient • Tank linings are possible but at the discretion of the plant manager • Ultimately up to the plant manager as to whether or not they use our products

35. Storage tanks – Starch milk A client taking the initiative to solve his problem • The client could not find a coating able to offer long term corrosion protection • Failures of competitive linings / technologies • Initial screening (in-house testing) is very aggressive • Acid / alkalis resistance • Temperature resistance • Several Belzona linings failed (including 4311) • One was satisfactory: Belzona 5892 • Client decided to carry out testing to satisfy his requirements • EU Regulations 10/2011 • EC Regulations 1935/2004

36. Storage tanks – Starch milk A client taking the initiative to solve his problem • Spiral & Belzona Supporting the client • Belzona provided test panels • Spiral liaised with the client and the testing house • Belzona 5892 demonstrated excellent results • Since completing the qualification testing, • 1 tank has been coated, 1 tank will be coated in 2019 • 350L of Belzona 5892 per tank • Roquette has several other sites across Europe offering the same opportunities • Roquette is currently completing the final part of the testing to fully comply with their food approval process (specific migration)

37. Storage tanks – Starch milk Technical Mailing • Belzona circulated a Technical Mailing to notify the network of the work completed • This process has opened new doors, giving Belzona a better understanding of the Food and drinks approval process

38. Approval Update Food & Drink

39. Moving forward with (EC) No 1895/2005 • What is (EC) No 1895/2005? • Recognised standard within the Food & Drink industry • What are we targeting? • Internal tank linings • Large applications (Vessels/tanks) • Criteria: • Able to withstand temperatures up to 90°C • Corrosion resistance • Tanks with a capacity greater than 10,000 litres • So, what product do you think we trying to gain approval for?

40. What is Belzona 5892? • Cost effective coating system for the corrosion of metallic and concrete surfaces operating in immersed conditions • Protects against attack from aqueous solutions and hydrocarbons operating at temperatures up to 95°C • Durable • Demand for a product like this in the industry

41. EU Food: (EC) No 1895/2005 Background • What is our aim in gaining this approval? • We want Belzona 5892 to be applied in direct food contact applications • Lining the interior of large vessels (10,000 Litres and greater) • Forprolonged storage periods • Direct food contact coatings are heavily regulated in Europe • Various information regarding the product must be consulted to comply with EU regulations

42. EU Food Approval Process Stages Overall Migration Testing. Specific Migration Testing. During our conversations with the testing house, to comply with the EU regulations, Belzona 5892 will have to complete two stages;

43. EU Food Approval Stage 1 leading to Stage 2 • If successful with stage 1 the final stage would be to complete migration testing. • This will include both, overall and specific migration testing.

44. EU Food Approval Stage 2 – Migration Testing Stage 2 - Migration Testing. Overall Migration Testing. Specific Migration Testing. What is Specific Migration Testing (SML)? • Testing of individual substances based on toxicological studies. • Analytical techniques are used to identify the presence of these substances in food (and food simulants). What is Overall Migration Testing (OML)? • The sum of all substances that can migrate from the food contact material to the food (or simulant).

45. EU Food Approval Stage 2 – Migration Testing Proposed Belzona 5892 Testing • The testing procedure is to be conducted over 10 days at 60°C, with exposure to all simulants to cover OM2 overall conditions and specific migration conditions. • Temperature and timescale of 60°C for 10 days has been chosen as this is the ‘worst case scenario’ testing.

46. EU Food Approval Stage 2 – Migration Testing Proposed Belzona 5892 Testing • If Belzona 5892 successfully completes this testing, Belzona 5892 will be compliant for use in containers or storage tanks with a capacity great than 10,000 litres.

47. Conclusion • The Food & Drink industry CAN be targeted • Huge factory application potential • Non-direct food applications • Discretion of the plant manager • Belzona 5892 • Currently in the approval process