2019

Corporate Social Responsibility Report

 CONTENTS

1. INTRODUCTION: Messages from the President and the Managing Director 2

2. THE YEAR 2019 AT AMPO, AT A GLANCE 4
3. MISSION, VISION AND VALUES 5
4. COMMITMENTS OF AMPO:

4.1. Commitment to our employees 6

4.2. Commitment to customers 18

4.3. Commitment to society 26

4.4. Commitment to the environment 30

4.5. Commitment to our collaborators 38

5. MAIN MILESTONES OF 2019 44

1. INTRODUCTION
Message from the President of AMPO, Jon Gorrotxategi
With this latest edition of our Social Commitment Report, we are pleased to
reflect all the commitments that we strengthen, year by year, to our people, our
clients, to the environment, to society as a whole, and also to our collaborators.
These are firm commitments to maintain our leadership in fair and sustainable
human development, in line with our cooperative’s mission statement.
In this document, as well as developing all these commitments, we also list the
main milestones of 2019 for AMPO, among which we should mention: the
company’s support of engineering, the consolidation of diversification strategies,
the development of the digital transformation plan, the growth in our AMPO
SERVICE division, the strengthening of our worldwide commercial network, etc.
All these milestones have helped us to continue to be world leaders in the design
and development of highly engineered valves for the most severe services in
the energy industry, as well as remaining a leading company worldwide in the
casting and machining of high added value components.
Despite the uncertainty that the oil & gas industry has been experiencing in
recent years, an industry to which AMPO allocates approximately 80% of its
sales, our project stood out in 2019 for its capacity to adapt to the new situation
in the industry and also for its solid commitment to the future. This commitment
2 INTRODUCTION · AMPO
has led us to close the year with considerable growth figures, consolidating
our position in the market and underpinning our industrial activity. This is all
thanks to the implementation of our Strategic Plan for the 2016-2020 period,
our clients’ trust, and the excellent work carried out by everyone at AMPO.
Consequently, we feel that some of the fundamental pillars of this significant
development have been the investment of 13 million euros in 2017 to set up the
new valve manufacturing plant in India, and the investment of another 22 million
euros in 2018 in expanding the new machining facilities in Idiazabal, where we
have introduced cutting-edge machining and overlay technologies. These two
investments have enabled us to strengthen our industrial activity, substantially
increase our productive capacity, and offer our clients a wider range of products
and services.
And now is the time to go forward with a view to the future, with a plan for 2020
to continue growing and consolidating our project, in a way that is sustainable
from an economic, social, and environmental perspective.
On behalf of the Governing Council of which I am president, I would like to
thank the entire AMPO team for your dedication and hard work, and encourage
you all to continue contributing to the consolidation of this exciting socio-business
project.
JON GORROTXATEGI
President
Message from the Managing Director of AMPO, Ibon Imaz
In 2019, I was excited and proud to accept the position of Managing Director of
AMPO, a leading international company, a cooperative, committed to its clients
and its people, and with an impeccable track record of over 50 years. I have
in-depth knowledge about its business project as I have been working here for
over 18 years.

I would like to highlight the fact that we closed the year 2019 with a growth
of approximately 20% up on 2018. This is particularly positive if we take into
account the intense volatility that has gripped the oil & gas industry in recent
Greater international presence: In order to be even closer to our clients, we are
times. I would say, then, that our project has successfully adapted to meet the
currently evaluating the possibility of setting up new industrial facilities in several
new requirements and contexts, consolidating our international position, along
countries. This endeavour will expand our horizons, after having consolidated
with our technological and industrial activity.
our plants in Idiazabal and India.
However, that is in the past and the most important thing now is the future and
Expanding our network of collaborators: We are in the process of expanding our
its foundations. These foundations will help us to design and construct the AMPO
network of collaborators; we are creating a specific sectoral centre in the Basque
of the future together. This is why, in 2020, we plan to consolidate the following
Country, collaborating with several universities and technology centres, making
pillars:
the most of synergies with our neighbouring companies and organisations, etc.
Diversification of sectors: In addition to our continued work to strengthen our
Investment plan: In 2020, we have a plan to reorganise our Idiazabal plant
leadership position in the LNG sector, we are also working to increase our
and invest in new facilities for an oxygen service, new test benches, in R+D
presence in the refinery and petrochemical sectors, as well as the upstream
projects, etc.
industry. For this purpose, we currently offer a wide range of highly reliable
products, and we have all the necessary certificates, skills, and facilities to be Also in 2020 we will start to outline the company’s new Strategic Plan for the
able to take on these sectors. 2021-2024 period. We are well aware that, if we want to continue growing and
continue to be leaders in our sector, we cannot rest on our laurels.
Engineering services: At AMPO we are not content to just be a valve or foundry
component supplier. Our solutions are developed ad-hoc and for this reason To take on all the challenges of the future, it will be essential to count on all the
we currently have the most cutting-edge technological resources on the market, people at AMPO, as well as on our suppliers and other collaborators, such as
along with a highly qualified engineering team. technology centres, start-ups, universities, associations, institutions, etc. in other
words, a community that will help us to strengthen our socio-business project.
AMPO SERVICE, our lever for reliability: Our AMPO SERVICE division enables
us to continue guaranteeing that our clients receive an immediate response to Our commitment to the future is firm: to continue to be committed to our clients,
their needs anywhere in the world: technical assistance in the start-up process, to our people, to society and the environment, and thus continue to be leaders
selection of equipment, training, predictive and preventive maintenance, etc. on a local and international scale.

IBON IMAZ
Managing Director
2. THE YEAR 2019 AT AMPO,
AT A GLANCE
TEAM • Idiazabal: 445 people • India: 279 people
11,4% women in the staff 3,34% women in the staff
Average age: 39 Average age: 32
89,8% are cooperative members

• TURNOVER: €131,329,000
Number of SUPPLIERS: € purchased in a
• INVESTMENT: €8,269,000
More than 2000 100-km radius:
• SALES:
€54,000,000

FOUNDRY: VALVES per sector:

4,718 Tonnes LNG
13%
1% Refinery, SOCIAL PROJECTS:
AMPO SERVICE: 2% petrochemicals
37% and power €363,000 intended. Quantity: 100 projects
60 field engineering services
Mining
47%
Upstream
Others

CONSUMPTIONS:

Export: 95% Presence in 60 countries

Electricity Natural Gas Water

20MkWh 65MkWh 29.606m3
Product development and Innovation intensity:
research lines amount: 25 More than 2%

4 THE YEAR 2019 AT AMPO · At a glance

3. MISSION, VISION, VALUES
AND COMMITMENTS
MISSION
AMPO is defined as a "Project based on People" which,
underpinned by teamwork and communication, pursues
the total satisfaction of their own People, Customers and
external stakeholders, as well as profit which makes fair
and sustainable human development possible within a
framework of cooperative principles.
VALUES AND COMMITMENTS
• Customer satisfaction, which, by providing the
guarantee for its future, is its top priority.
• To maximise the professionalism of its People by
allowing and encouraging their creativity and making
them players in a permanently innovative project.
• Teamwork is the basis on which freedom, responsibility
and leadership become integrated and coexist to
obtain an efficiency based on a commitment to both
VISION quality and quantity.
• Communication, information and transparency in
order to share knowledge, experience and skills as
To offer castings, valves and other activities in the global
well as to accept and exercise the responsibilities and
marketplace which provide solutions to the needs of the
assume the risks attached to them.
Customers.
• To share its project with suppliers, Customers and
society with an enriching and exciting vision of the
future.
• A commitment to quality, service, cost and health and
safety in the workplace, which are understood to be
fundamental keys of the activity and, all of this, in
order to achieve excellence.
These values are a binding part of all projects and
activities in which AMPO takes part.
MISSION, VISION, VALUES AND COMMITMENTS 5
4. COMMITMENTS OF AMPO

4.1. COMMITMENT TO
PEOPLE
The wellbeing, satisfaction and professional
development of people at AMPO is one of our
company’s major priorities. People are the central
axis of our mission, our values, our strategy and our
management, which is why we refer to ourselves as
a people-based project.

6 COMMITMENTS OF AMPO · Commitment to people

All of our teams work to a system of self-management; they
know and participate in the objectives and strategy of
AMPO, objectives which are always defined and agreed
to at the cooperative’s General Assembly.
The AMPO team currently consists of 724 people between
our staff in Idiazabal and in India, as well as our broad
commercial network. For all of our people, customer
satisfaction, the guarantee of our future, holds top priority.
All our staff are, therefore, committed not only to quality,
service and cost, but also to health and safety at work on
the road to excellence. In turn, AMPO is fully committed
not only to achieving the best possible professional
competence of its people by enabling and promoting their
creativity and making them the lead players of a constantly
innovating project, but also to sharing the project by
fostering communication, information and transparency.
By way of an example, below you will find different
aspects related to our organisational model, our
policies on employment and people management, our
communications and training models, etc.
EVOLUTION OF EMPLOYMENT
After some years of instability in the sector, during which
we managed to keep all our jobs intact, in 2018 a few
major projects were launched, providing the opportunity
to consolidate our number of employees both in Idiazabal
and India.
In 2019, the AMPO team consisted of a total of 724 people:
445 at the Idiazabal plant and the different commercial
offices around the world, and 279 people at the AMPO
INDIA plant.
As regards the profile of the AMPO team, we would like
to highlight the following:
• Due to the high technological level of our products
and processes, 34% of the group's staff (246 people)
work in services such as engineering, innovation,
processes, sales, procurement, etc.
• 8% of the group’s staff are women and 92% are
men. In the case of Idiazabal, this percentage rises
to 12%.
• As far as age distribution is concerned:
• Under-30s (131 people) make up 18% of the
workforce.
• The predominant age group covers people
between the age of 30 and 50 (531 people),
and makes up 73%.
• Over-50s (62 people) make up 9% of the
workforce.
COMMITMENTS OF AMPO Commitment to people 7

EMPLOYMENT QUALITY
At the end of 2019, 90% of the workers at Idiazabal
were cooperative members, and the remaining 10% were
people who were hired while waiting for the opportunity
to become members. These figures demonstrate AMPO’s
commitment to people. Here, instead of issuing short
contracts for periods of high production, we only
8 COMMITMENTS OF AMPO · Commitment to people
recruit people to occupy positions destined to become
consolidated in the future.
As regards employee turnover, it is worth mentioning
that the turnover ratios are very low at AMPO, below the
average in Spain and India, which is just another example
of our staff's satisfaction.
As far as AMPO INDIA is concerned, it also has to be
said that our workers in Coimbatore enjoy better working
conditions than others in their area, meaning that the
standard of employment is very high.
ORGANISATIONAL CULTURE
MODEL
Since 2003, AMPO has been employing a horizontal
people-based organisational and management style. Its
aim is to strengthen this model, and in 2017 the cooperative
designed a new organisational and leadership style.
The objective was to create a process of organisational
development, guaranteeing a model of progress towards
achievement of the cooperative objectives and towards a
culture of excellence.
After an initial diagnosis of the situation, and after
establishing the bases of the new culture model, over
the following years the necessary skills were taught and
implemented using collaboration processes aimed at
achieving a more active attitude to learning, teamwork,
leadership, participation, communication and progress.
With the definition of this new cultural model of
organisation and leadership, we aim to become an
excellent organisation while increasing the feeling of
belonging to AMPO and the satisfaction of our people.
Furthermore, in an aim to promote the cooperative model,
a series of interesting training sessions on cooperativism
were held in September 2019. Aspects related to the
regulation of cooperatives were discussed at these sessions,
as well as the basic operation, rights and obligations of all
cooperative members, etc. But apart from the theoretical
aspects, what was really interesting was sharing the ideas
that our people have regarding cooperativism at several
round table discussions.
 The investment according to type of training action was
as shown below:

TRAINING ACTIONS

3 4
9
27

12
1
12

54

INVESTMENT

TRAINING € 444,593
QUALITY

TRAINING GROUPS
PROCUREMENT

Aware of the importance of training when it comes to 122 TECHNICAL TRAINING

consolidating the organisation’s continuous improvement MANAGEMENT

HOURS INVESTED
processes and the quality of its products and services, as
DEVELOPMENT OF SKILLS
well as the need to continually adapt to the new challenges
12.715,5h
emerging every year and to broaden people's skills in LANGUAGES

order to make them more flexible, AMPO puts a great deal PARTICIPANTS IT
of effort into training its people.
795 HEALTH, SAFETY AND ENVIRONMENT

Today we therefore have a biennial training plan which

encompasses all aspects of developing knowledge, skills TRAINED PEOPLE
and attitudes in people.
419
As a result, in 2019 we continued to implement our
Also worthy of mention is the continuous flow of people
training plan for 2018-2019. AVERAGE TRAINING TIME PER PERSON between the Idiazabal and India plants in order to train
Below we offer the data corresponding to the 2019
30,35h colleagues in different subjects, such as: valve assembly,
Training Plan: quality, painting, shipments, engineering, etc.

COMMITMENTS OF AMPO Commitment to people 9

 COMMUNICATION AND
PARTICIPATION IN MANAGEMENT
Communication is a strategic factor for AMPO, given
that it is an indispensable tool for defining and sharing
all information related to the corporate strategy with the
AMPO people and with other groups of interest, including
customers, suppliers, society, collaborators, etc.
10 COMMITMENTS OF AMPO · Commitment to people
As a result, today we have two teams. On the one hand,
an internal communications team and, on the other, an
external communications team.
The core objective of the external communications team
is to define an annual communications plan and strategy
focused on increasing notoriety of the AMPO brand in
both the market and society, maintaining our current
position and transmitting values such as excellence and
commitment.
However, the internal communications team has a different
role, given that its target public consists of the AMPO
people. As a result of evolution in the new organisational
culture model project, we reviewed and rearranged
internal communications at AMPO to bring them into
line with the needs of the process of change underway
at our cooperative. We therefore created a new internal
communications team, made up of the General Director,
the President, the HR team and the cooperative head of
communications.
Besides these new initiatives, and to guarantee the best
possible internal communications, the organisation also
has a number of internal communications forums and
tools:

COMMUNICATION FORUMS:
à General assembly:
This is the highest governing body and is the place
where the organisational objective is expressed; its
representatives are the cooperative member-workers,
regulated by the AMPO Articles of Association. All
members have the same rights and obligations (one
person one vote), and make decisions on matters falling
within their competence, such as: appointment of the
Governing Council, the Supervisory Committee and the
Social Council; approval of the accounts and balance
sheets, distribution of surplus, social management, etc.;
modifications to the Internal Regulations System, Articles
of Association, etc.
In addition to the Ordinary General Assembly held in
May, at which the Annual Accounts are presented and
approved, in December another Extraordinary Assembly
is held, at which the Ideas and Objectives for the following
year are presented and approved. In other words, the
Management Plan.
On the other hand, days prior to these General Assemblies,
information meetings are also held, open to all members
of the collective, at which the contents of the Assemblies
are explained in detail. This enables us to obtain their
feedback.
à Monthly meetings:
To ensure that the monthly actions, decisions, etc. taken
both by the Board of Directors and its Governing Council
reach the whole collective, the bodies meet in the same
week every month. At these meetings, the monthly
accounting statements are studied in detail, together with
their evolution with respect to the “Ideas and Objectives”
for the year (the Management Plan), considering the
pertinent investments and launching new actions, among
many other aspects.
The Governing Council meeting is usually followed by a
Social Council meeting that same afternoon. This is where
the Managing Director and the President of the Governing
Council explain, among others, the decisions, actions and
accounts of the month. The Social Council acts as the link
between the Governing Council, the Board of Directors
and the staff with respect to employment matters affecting
the member-workers by providing information, advice,
consultation and making suggestions. The Social Council
is made up of representatives of the different cooperative
areas, meaning that the whole collective is represented.
The topics discussed by the Social Council are later
conveyed to all people by means of the Small Councils,
which meet within each area or team. Each work group
elects their social representatives, who inform them on the
topics discussed by the Social Council. The representatives
in turn convey the concerns and suggestions of the Small
Council to the Social Council for their analysis and debate.
The Small Councils are enormously important forums for
giving and receiving information on institutional and
entrepreneurial matters.
à Weekly follow-up meetings:
All of the team leaders meet weekly to plan production
for the following week and commit to objectives. The
information discussed at these meetings is later conveyed
by the team leaders to their team colleagues. Once a
month, appraisal of the monthly activity is also made at
these meetings.
à Team meetings:
The majority of the teams hold meetings daily, monthly
etc., as required.
COMMITMENTS OF AMPO Commitment to people 11
 COMMUNICATION CHANNELS:

à Jakintzazu:
This is a weekly newsletter, written in three languages
(Basque, Spanish and English) and generally consisting
of around 8 pages. This newsletter was first published
in 2010 and is usually sent weekly to all people in the
cooperative, either by email or in paper format. The
magazine contains articles and news on events at AMPO,
with entries by the Managing Director, the Governing
Council and all of the teams (sales, engineering, quality,
India, AMPO Service, communication, innovation,
production, purchases, IT, prevention and environment,
HR team, etc.). Also published is the weekly agenda of
visits and birthdays.

à Advertising screens and notice boards

at the plant:
To publicise different notices, screens are used, which are
placed at different points around the premises, as well
as the installed notice boards. Here we can find urgent
announcements, different kinds of information, visits,
documents issued by the personnel team, the calendar,
index tables, the times of the different company services,
information about weekly and monthly activities, etc.
à Email and phones:
Today almost all workers at AMPO have access to a
personal or team email address at AMPO, and to a phone.
EQUALITY AND DIVERSITY
Since 2015, AMPO has been recognised as a Collaborative
Entity for the Equality of Women and Men by Emakunde,
the Basque Institute for Women, due to the fact that it has
both an Equality Committee and an Equality Plan. Today
this Committee is made up of 12 people: 8 women and
4 men in total.
This plan has the objective to protect the principle of equality
and to ensure that it is applied throughout the cooperative,
to guarantee the principle of equal opportunities when
hiring new employees, to guarantee the same economic
and professional development opportunities to all people,
to promote the egalitarian use of forms of expression, both
spoken and written, to foster work-life balance, and to
prevent and take steps in situations of sexual harassment
and discrimination.
The cooperative kept its Equality Plan active in 2019,
implementing several initiatives on this line, and it has
already defined a new plan for 2020-2023. Some of the
actions defined in the previous plan will continue in the
new plan, but there will also be some new initiatives.
We also believe in our social duty to create and maintain
employment for people with a disability who need to work,
and for this reason, we currently have a work enclave
with Katealegaia, as well as services provided by Gureak.
For AMPO, equal opportunities, non-discrimination and
respect for diversity are imperative concepts.

12 COMMITMENTS OF AMPO · Commitment to people

 FLEXIBILITY POLICIES

As regards flexibility policies, it is worth pointing out that

there are currently 31 workers at AMPO who benefit from
a range of reconciliation measures, such as: reduced
working hours, leave for childcare, leave to care for
dependent persons, etc. Of these 31 workers, 16 are
women and 15 are men.

However, in addition to these measures, and as part

of its reconciliation policies, the cooperative has also At AMPO we are firmly committed to occupational risk In order to avoid accidents, operating procedures are
implemented flexible working hours, which a vast majority prevention by means of a prevention management system. developed that are based on risk assessment, and the
of its workforce can enjoy. necessary measures are established to be able to work in
To keep Health and Safety at Work integrated in the
safe working conditions. The procedures in question are
organisation's general management system, both in its
continually applied, and potential risks and any incidents
activities as a whole and at every level, it adopts the
that occur are constantly notified, as are any accidents,
OCCUPATIONAL RISK integrated safety-based organisational system, the main
which makes it possible to take action aimed at achieving
characteristic of which is the fact that prevention is carried
PREVENTION: the objective.
out through responsibility in all areas of the organisation.
The table below summarises the accident rate data for
As far as the structure of the prevention service is
2019:
concerned, we adopt the Joint Prevention Service system.

ACCIDENT RATE DATA 2019

Incident Rate 69.66

Frequency Rate 39.57

Severity Rate 0.84

COMMITMENTS OF AMPO Commitment to people 13

 Besides this, in 2019 we continued to incorporate safety
in all of the LEAN projects (application of the KAIZEN
dynamics, introduction of the 5S method, etc.) developed
both in the foundry and the valves division. Prevention
was also applied to the redesign of the new valve division
layout.
Furthermore, within the framework of our annual safety
training plan, and in order to offer more substantial
14 COMMITMENTS OF AMPO · Commitment to people
training as regards contents and duration,  100% of our
staff at Idiazabal received a range of training sessions on
occupational risk prevention in 2019, which is just another
sign of our firm commitment to safety. Each person spent
an average of 20 hours on this training, which goes a long
way to constructing a culture of safety and security.
These training sessions, which were organised with
the support of OSARTEN, our joint prevention service,
dealt with contents related to both general and specific
occupational risk prevention, according to each person’s
job.
With these updated training sessions, we aim to
continuously improve everyone’s Health and Safety
conditions and behaviour.   We are very clear on this
point: prevention is the responsibility of each and every
one of us, and training is key in this respect.
 HEALTH AT WORK
AMPO has its own medical and physiotherapy service
which is available to all workers in the cooperative.
The Medical service keeps watch over the health of its
workers to study and analyse interaction between people
and their working conditions and therefore detect potential
diseases that can affect their health at the early stages.
This means that we can determine potential limitations
for developing the tasks involved in their work. All this is
achieved by means of health check-ups when they start
working with us and periodically according to previously
established protocols and specific tests.
Also worthy of note is that in 2019 different programmes
for improving health were carried out, particularly
including the:
1. FRUIT CORNERS:
More and more companies care about their employees’
diet, and this is something AMPO has been aware of
for a long time. A few years ago, every week we would
distribute 10 baskets of organic vegetables among our
employees, and in 2016 we installed fruit corners in
different parts of the company so that our workers could
help themselves free of charge. Today they are offered
around 2 pieces of fruit every day.
According to the experts, the vitamins and water in fruit is
the best way to activate the body and the mind.
2. FLU VACCINATION WINTER
CAMPAIGN:
In October, the medical service organised a free, open
campaign to promote flu vaccination.
3. DETERMINATION OF COLLECTIVE
AND INDIVIDUAL HEALTH CONDITION:
The AMPO medical service determines and continuously
monitors collective and individual health.
4. COLLECTIVE PARTICIPATION IN
VOLUNTARY BLOOD DONATION:
In Gipuzkoa, 140 blood donations are needed every day
to meet the provincial haemotherapy requirements. All
people have the right to receive a transfusion when they
need one, but that individual right must be maintained
with gestures of solidarity from the community. As a result,
every year AMPO organises, at its work centre, two
blood donation days in which people usually participate
voluntarily. In 2019, these sessions were held in spring
and autumn.
5. COLLABORATION IN HEALTH
TRAINING:
Eminently practical first aid courses were given on
the following subjects: Initial assessment in the event
of accidents and Basic Life Support (BLS), Basic
Cardiopulmonary Resuscitation (CPR) and Automated
External Defibrillator (DEA), how to treat injuries
associated with traumatism and the Emergency Plan.
Finally, we must also particularly mention the Physiotherapy
Service provided by AMPO. This service is available for
8 hours every day and can be used by the members of
the collective at our installations. Thanks to this service,
our members can receive therapy to relieve different kinds
of pain through therapeutic exercise, heat, cold, light,
manual techniques, etc.
COMMITMENTS OF AMPO Commitment to people 15
 COMMITMENT TO GOOD
GOVERNANCE AND ETHICS

ANTI-CORRUPTION AND BRIBERY

The fight against corruption and bribery forms part of
our internal regulations and is one of AMPO's primary
objectives as regards good governance and Corporate
Social Responsibility.

In its internal regulations, AMPO establishes the rules of

conduct, the instruments and measures to prevent and
combat the following risks, among others:

• Fraud, embezzlement, misappropriation, mismanagement

and similar infringements or crimes; forgery, seizure or
misappropriation of documents and data related to
the service; scams, disloyalty or abuse of trust in the
entrusted managements; theft or robbery, both from
work colleagues and from the Cooperative or any other
person, that has been carried out on company premises
or while performing the service in any other place.

• Managing or accepting, either directly or indirectly,

from the Cooperative's clients or suppliers or any
third party in general, payment, promises, perks
or privileges of any kind, for performing or having
performed the company’s services.

Everybody at AMPO has access to the internal regulations,

which explain the aforementioned matters, among other
conditions.

16 COMMITMENTS OF AMPO · Commitment to people


COMMITMENT TO HUMAN
RIGHTS
AMPO recognises the fundamental principles of the
Declaration of Human Rights, according to the 1948
United Nations definition, and they form a framework of
reference for our actions.
Article 1 of the organisation’s articles of association
states that “AMPO, S. COOP.” is defined as a “People-
based Project” which works on the basis of teamwork
and communication to pursue the satisfaction of its own
people, clients and external collaborators, and to obtain
profits that enable it to grow and develop and generate
new employment. All this unfolds within the framework
of cooperative principles and cooperation, of solidarity,
equality, justice and participation, while respecting the
social context, the environment and sustainable human
development.
All the elements contained in AMPO regulations have
been established in keeping with a respect for the existing
legislation and regulations in each given country, and a
respect for the promotion and fulfilment of International
Labour Organisation agreements (minimum working age,
freedom of association, right to collective negotiation,
non-discrimination, etc.).
It is also worth mentioning that there has not been a single
complaint of any kind regarding a violation of human
rights at any AMPO plants.
COMMITMENTS OF AMPO Commitment to people 17
4. COMMITMENTS OF AMPO

4.2. COMMITMENT TO
CUSTOMERS
AMPO's main objective is to build customer loyalty,
continually adapting to meet the clients' needs and
providing them with products, services and solutions
that bring them additional value. Value in terms of
reliability, safety, service, quality, innovation and
sustainability.

18 COMMITMENTS OF AMPO · Commitment to Customers

 SAFETY AND RELIABILITY

At AMPO, we take our commitment to the safety and

reliability of our solutions very seriously. We thoroughly
adhere to all environmental standards and public safety
regulations on a global scale.

With a huge installed base of valves and castings,

operating in different oil & gas, chemical, petrochemical
and mining plants (to name but a few) in 5 continents for
decades, we can say that AMPO solutions are reliable at
the very highest level. To do so, the company allocates
significant investment to innovation and technological
developments, constantly working on improvements to the
safety and reliability of its solutions.

COMMITMENTS OF AMPO · Commitment to Customers 19

 New monitoring technologies, new engineering solutions
to adapt our valves to the most stringent levels of
fugitive emissions, and the application of new overlays
to help protect the plants' pipes from corrosion... these
are just some of the solutions available. For AMPO
POYAM VALVES, product reliability is essential, and it is
incorporated into the development processes of all new
projects.

The valves we design and produce for high pressure and

high temperature cycles also meet the Safety Integrity
Level (SIL) standard, which specifies the safety integrity
requirements that must be installed in all systems.

These valves also have a robust design, applying

advanced technology both as regards engineering and
materials.

• Engineering: Fluid-dynamic testing, seismic calculations,

mechanical analysis, thermographic simulation, P&ID
study, Finite Element Analysis, real torque testing,
research into gaskets, etc.

• Materials: AMPO has its own foundry, which

provides an excellent service and the highest quality
components, both as regards the valve division
and other valve manufacturers and other industries,
working as an integral part of the manufacturing
process. It is also worth pointing out that the
innovation department is continually working on
developing new coatings to avoid friction between
contact surfaces, as well as on cutting-edge designs
to prevent wear and tear. At AMPO, we are clear
that the best product can prevent corrosion, abrasion,
adhesion or erosion, and so increase the valves’
useful life.
Furthermore, AMPO's reliable solutions must guarantee
maximum safety at the plant. This is why the AMPO
SERVICE division guarantees technical assistance as
quickly as possible anywhere around the world, and at
any stage of the project. To do so, they have an extensive,
highly experienced team of professionals at hand.
With this purpose in mind, we work in close collaboration
with all the teams involved in the purchasing, installation,
operation and maintenance of valves at the plant, in order
to transfer our knowledge about valves and, consequently,
to ensure maximum safety, performance and maintenance
of our equipment at the plant.
AMPO SERVICE also offers an integral preventive and
predictive maintenance service to guarantee the valves
perform correctly and the equipment works properly.
In terms of preventive maintenance, we offer periodic
inspections; and for predictive maintenance, we have
developed an innovative system to monitor the installed
valves anywhere in the world. This system detects potential
errors that may arise in the valves installed at the plant,
and makes it possible to prevent unexpected stoppage.
The company already has several monitoring systems
installed at some plants. These systems entail the valves
being continually connected, so that we can monitor and
analyse their status.

20 COMMITMENTS OF AMPO · Commitment to Customers


SERVICE
At AMPO, our philosophy of service goes above and
beyond the design, manufacture and maintenance of our
solutions. We aim to provide a comprehensive coverage
of all the client's needs, offering our problem-solving
capacity and firm commitment always.
We know that one of our clients' most pressing needs is to
reduce delivery times. This is why, in 2017 we launched
our LEAN transformation project, the main objective of
which is to reduce delivery times for our clients and thus
offer them greater added value. This project continued
in 2018 and 2019, in collaboration with specialists in
advanced management models. Among other things, the
following projects were addressed: redesign of the valves
division layout, continuous improvement dynamics in
production lines, etc.
We also currently offer a “Fast Track” service to restock
valves and components when an urgent situation so
requires.
In addition to this, the AMPO service enables the client
to have completely customised solutions, thanks to
its technological capacity, even in the most extreme
application conditions. This is why the AMPO specialists
get involved in every project when it comes to defining the
necessary requirements alongside the client. The attention
we offer is also close and personalised, a value which sets
us apart from the rest.
This attention begins even before the order has been
placed, as we carefully study all the requirements involved
and always suggest the optimum solution. During the valve
production process, we remain in constant communication
with our clients, offering a comprehensive service up until
the valves are delivered.
— For this purpose, we have a team of Project Managers
who ensure the production plans are fulfilled to the
letter.
— We also have a QR coding system in production to
guarantee the valves are completely traceable in
real time. As a result, all the information related to
each valve is saved on a system by means of these
codes: the different tests that they have undergone;
data related to the components and materials of each
valve; the traceability of the production process, etc.
In this way, we can give each product its own history,
making this information available to everyone at the
press of a button.
However, the service does not end with the delivery of
the valves to the client, as once the valves have been
delivered, we advise on their installation and set-up, etc.
as well as providing ad-hoc services such as maintenance,
training, restocking of components, etc.
COMMITMENTS OF AMPO · Commitment to Customers 21
 QUALITY

Quality is paramount for AMPO, so a quality guarantee

system is applied to all our production processes. These
processes have been endorsed since 1991 with the ISO
9001, API spec Q1 and 6D, and SIL 3 standards, and
they have been accredited by the most important
external organisations around, such as Lloyd’s Register,
Bureau Veritas (BV), Det Norske Veritas (DNV) and
American Bureau (ABS). AMPO also takes an active
part in international conventions, such as that organised
by the API and ISO, where the respective standards are
developed.

Intermediate and final inspections are carried out in all our

areas of production. These inspections are documented
with the corresponding reports and certificates; they are
directly coordinated by an efficient, highly qualified team;
and they are always carried out in line with internal and
external quality guarantee procedures and standards. All
phases, from the moment a purchase order is received up
to the non-destructive testing (NDT), machining, assembly,
testing, painting and shipping, are carried out in keeping
with the regulations stipulated in the Quality Guarantee
Manuals.

As far as facilities are concerned, we have the most

modern facilities available to carry out tests such as: X-ray,
dye penetrant examination, ultrasound, magnetic particle
testing, PMI (Positive Material Identification), impact
testing, visual checks, hydrostatic tests, pneumatic tests,
cryogenic testing or tests at low temperatures, fugitive
emission testing, vacuum tests, tests at high temperatures,
high pressure testing, etc. All these tests are carried out by
highly qualified internal quality control personnel.

22 COMMITMENTS OF AMPO · Commitment to Customers


INNOVATION
Backing innovation is indisputable, and it is the only way
we can be prepared for the challenges of the future.
2019 was the year that valves for upstream were
developed, as well as valves for ultra high pressure,
etc. It was also the year we developed solutions to offer
our clients a greater degree of valve interchangeability.
It is also worth pointing out that we are working on
valve optimisation to be able to offer our clients more
competitive solutions.
In the foundry, patternless processes were strengthened,
such as reverse engineering and polystyrene machining
technologies for the production of large-scale components
produced by sand casting as well as ceramic moulding.
This is a highly profitable way to produce single
components or short series, and has the following
benefits: reduction in delivery times, high level of integrity
COMMITMENTS OF AMPO · Commitment to Customers 23
 and excellent dimensional precision of the components, products, technologies and systems, also constantly
suitable surface finishes, etc. All this is achieved without collaborating with international research centres and
the need to invest in patterns. prestigious universities.

We have a great engineering team both at the foundry In 2019 we had 25 product development and research
and the valves division working on developing new lines operative, and the innovation intensity was 2%.

24 COMMITMENTS OF AMPO · Commitment to Customers

 SUSTAINABILITY

Our firm commitment to the environment has led us to

integrate new technological solutions in our products, and
to include sustainability criteria in the construction and
maintenance of our facilities.

We are working very hard to improve the valves'

performance in order to achieve zero-emission valves.
We are also developing our own products based on the
Ecodesign process, thus ensuring our solutions have a low
environmental impact.

Furthermore, all AMPO products are manufactured in

compliance with the ISO 14001 standard.

Apart from this, we also constantly supervise all the

processes that affect production, and use renewable
energy sources in the development of new installations.
The objective of these initiatives is to develop and apply
management systems and ideas that control and minimise
any possible environmental impact.

COMMITMENTS OF AMPO · Commitment to Customers 25

4. COMMITMENTS OF AMPO

4.3. COMMITMENT TO
SOCIETY
To enable fair and sustainable human development. That is
AMPO’s core commitment to society in the local area where
it goes about its activities, and this is specifically reflected
in its mission statement. In this way, it actively contributes to
improving the socioeconomic system that is in place in the
communities in which it operates, and of which it also plays
an active part.

26 COMMITMENTS OF AMPO · Commitment to society


Its initiatives widen access to education, help in people’s
well-being, promote care of the environment, sport and
culture, support the social economy and cooperativism,
as well as supporting development cooperation initiatives,
among other things, and it does so within an equality-
based framework.
Consequently, and consistent with the evolution of society’s
needs, every year the cooperative dedicates a significant
amount of its economic resources and the dedication of its
people to achieving socioeconomic improvement of the
environment and the society to which it belongs.
In 2019 it promoted a total of 100 initiatives, to which it
allocated approximately €363,000.
CULTURAL INITIATIVES AND
ACTIVITIES
AMPO backs and promotes cultural and traditional
activities in its immediate environment.
Worthy of mention is its sponsorship yet again in 2019
of the “Gerriko Ikerlan Beka” competition, which has the
objective to compile and publish research work on the
Goierri region and its inhabitants. The research projects
submitted to the competition look into any sphere or
science related to the Goierri region: anthropology,
toponymy, literature, health, industry, agriculture, biology,
history, economy, medicine, engineering, law, pedagogy,
psychology, philosophy, computer science, etc. With this
initiative, AMPO seeks to socialise the scientific research
work carried out in the valley.
But it also backs more local initiatives, among which we
can particularly name its collaborations with:
• Local and regional cultural centres and associations
• Dance groups
• Schools and groups dedicated to the promotion of
music and singing
• Associations of Bertsolaris (improvisers of Basque verse)
• Associations that promote Basque mythology
• Local and regional magazines
• Associations that promote organic food
• Associations that promote Idiazabal cheese, as well as
other regional foodstuffs
• Associations that promote cultural diversity
• Groups fostering different kinds of local initiatives,
• etc.
AMPO also works to increase use of the Basque language
and achieve its normalisation, for which it supports
initiatives and associations, including:
• The Goierri Cultural Association, which has the mission
to promote cultural initiatives related to the Basque
language.
• The Association for the promotion and improvement of
vocational education, developing didactic material in
Basque for use at different levels of education.
• Local associations fostering use of the Basque language
by organising courses, discussion groups, radio
programmes, competitions, etc. among the inhabitants
of the region.
• The “Korrika” initiative: a race in support of the Basque
language that covers the entire Basque Country, and
which has a dual objective. On one hand, it aims to
raise awareness of the Basque language; and on the
other hand, it raises funds to carry out this work on a
daily basis at the AEK Basque learning centres.
• Publications in local and regional magazines, press &
media outlets and radio.
COMMITMENTS OF AMPO · Commitment to society 27
 EDUCATIONAL INITIATIVES AND
ACTIVITIES

At AMPO, education is believed to be one of the factors that

has the greatest influence on the furthering and progress
of people and societies, which is why it collaborates with
local schools and other organisations. As well as providing
knowledge, education enriches culture, values and all of
the factors which characterise us as people.

Consequently, in 2019 it continued to make significant

donations to schools in the region.

It is also important to mention that AMPO has always

promoted the creation of schools, universities and
technology centres, such as: Goierri Eskola, LORTEK
Technology Centre, etc.
SPORTING INITIATIVES AND
ACTIVITIES
AMPO also sponsors sports teams with a wide reach in
the area, such as:
— AMPO ORDIZIA RUGBY: AMPO has now been
sponsoring the AMPO ORDIZIA rugby team for several
years. The association was created in 1973, giving a
large number of young people the opportunity to enjoy
the rugby experience. Today it has a team in the top
national category, although it also has line-ups in the
lower divisions, in both men’s and women’s leagues.
We consider that the values of AMPO ORDIZIA
faithfully reflect the cooperative essence: teamwork,
effort, dedication, involvement, etc.
— GOIERRI CORE CYCLING TEAM: AMPO also sponsors
the Goierri core cycling team and backs cycling at
different levels. Among others, it promotes school
cycling and the junior and youth categories. Thanks to
this team, cyclists in the valley have the possibility to
practice cycling and to obtain the training they need
to enter the professional ranks.
We also support other local sports communities, among
which are:
• Football, basketball, handball, athletics, rural sports,
boxing, tennis, and swimming clubs, etc.
• Mountaineering associations.
• Classic cycling races and trials, and cycle tourism
events.
• Pelota and pala associations ,
• Etc.

28 COMMITMENTS OF AMPO · Commitment to society


SOCIAL INITIATIVES AND
ACTIVITIES
Finally, it also continues to collaborate with a variety of
non-profit associations, including:
• NAGUSILAN, an association focused on active ageing.
Besides Nagusilan, AMPO also works directly with
different pensioners’ and seniors’ associations in the
area.
• AECC, Spanish Association Against Cancer.
• ASGICER, Gipuzkoa Association Against Cancer.
• The Gipuzkoa Food Bank, participating as volunteers in
the Big Food Collection.
• The association of parents of children with cancer in
Gipuzkoa, Aspanogi, whose mission is to improve the
quality of life in children with cancer and their families
and to meet their needs from the moment the disease is
diagnosed.
• The “Solidarity with Africa” cycling project.
• etc.
In addition to all this, in 2019 AMPO participated in
the construction of several classrooms for a government
school in Coimbatore, in India, and we also assisted in the
renovation of the library building at another school.
COMMITMENTS OF AMPO · Commitment to society 29
4. COMMITMENTS OF AMPO

4.4. COMMITMENT TO THE

ENVIRONMENT
At AMPO we are fully aware that it is impossible to
have a productive model that does not respect the
environment, which means it is essential that any
development be sustainable.
In line with this principle, AMPO’s commitment to
the environment is firm and aimed at minimising
the environmental impact of our activities.

30 COMMITMENTS OF AMPO · Commitment to the environment

As a tool to materialise that commitment, AMPO has
an environmental management system in place that is
certified under the ISO 14001:2015 standard, which
enables it to respect existing legislation and go a step
further with objectives aimed at continuous improvement
in environmental performance.
This system has its own environmental policy, which can
be accessed via its web page, a management manual
in which the principles of how the system works are
established and the associated procedures that describe
the activities to be performed.
Every year, and as part of AMPO's global strategy
reflection, an analysis is carried out of the environmental
risks and opportunities using both external and internal
factors, which, with different input elements, may identify
improvement objectives. After identification, the objectives
to be implemented are prioritised.
To monitor these objectives, AMPO has a committee in
which the General Management participates, and where
the environmental performance in general is monitored,
coordinating and promoting the necessary action to be
taken.
As a result of these reflections, AMPO has carried out
a process of environmental transformation that began at
the foundry plant, as this is the plant with the greatest
environmental impact, and continued in the machining
plant, incorporating the environmental variant from the
design phase of the extension project at these premises.
The highlight of this process was when they achieved the
Leed Gold certification in September 2018.
Continuing on this line of action, this year will see the
turn of the valve manufacturing plant, incorporating the
environmental variant from the design stage of the new
layout.
CLIMATE CHANGE AND AIR
POLLUTION
One of the main environmental aspects of industrial
activities are emissions into the atmosphere. At AMPO
we have set the task of minimising these emissions as
one of our environmental priorities, which has entailed
major investments in filtering technologies, particularly
at the foundry. This has not only enabled us to comply
with emission limits, but also to keep levels significantly
below those limits, especially as regards the most relevant
emissions in our activity: particulate matter. This has meant
an extraordinary boost to minimising AMPO’s atmospheric
emissions.
In 2018, the machining facility was consolidated in the
new Idiazabal premises, including the installation of a
new aspiration and filtering system for cutting fluid mists,
with 8 built-in filtering units.
AMPO’s current equipment comprises 32 particle filters
and 10 oil mist filtering units.
As a member of society, impact on the climate is also a
concern for AMPO. Not so much from the perspective of
direct CO2 emissions, given that they are not a feature of
our activity, but from the analysis of the different phases
of our products’ life cycle. That is why our engineering,
production, processes and R+D departments have been
working on optimising processes and products that will
have a positive effect on the entire supply chain.
COMMITMENTS OF AMPO · Commitment to the environment 31
 • Control of dumping parameters, under which
all the parameters for dumping into the river are
SUSTAINABLE USE OF WATER below accepted limits.
• Minimisation of the total amount of consumption
Correct water management is essential for AMPO’s and dumping. For this purpose, in recent years we
activity, given that it is crucial for the cooling operation have implemented a range of actions that have
in part of its production processes. For this reason, and enabled us to considerably reduce consumption
in order to minimise water consumption and dumping, we and the total amount of dumping into the river, by
have been working on three main lines: installing closed water circuits in different facilities
(heat treatment, dye penetrants, ball cooling, etc.),
which allow us to continuously reuse this resource.
In addition, AMPO has evaporation systems that
enable us to reduce dumping into the river even
further, which allow us to subsequently reuse that
water in the process. That is why these actions
have a twofold positive environmental impact: they
reduce water consumption and dumping into the
river.
• Monitoring consumption: For this purpose, AMPO
has partial water meters to be able to monitor
consumption and analyse any possible deviations
that may arise.

Foundry dumping into the river (m3)

3.500 Total water consumption at the Foundry (m3/ton prod)

3.000
3.088 20

2.500

15 15,5
2.000 15,2

1.500
10

1.000 8,4
1.162
939 7,2 7,1
808 822 5 6,0
500 5,2
3,9 4,1
0
0
2015 2016 2017 2018 2019
2011 2012 2013 2014 2015 2016 2017 2018 2019

32 COMMITMENTS OF AMPO · Commitment to the environment

 and manufactures, which represents an environmental
CIRCULAR ECONOMY
SUSTAINABLE USE OF MATERIALS, improvement throughout the product’s life cycle.

CIRCULAR ECONOMY AND
WASTE MANAGEMENT
AMPO, as part of its goal to minimise the waste generated
by its activity, is backing the design of more sustainable
processes and products in order to optimise the use
of resources in the manufacturing process. One of its
objectives is to reduce the weight of the parts that it designs
Furthermore, any waste that cannot be avoided is
separated, giving priority to internal recovery wherever
possible, in keeping with the circular economy philosophy,
followed by external recovery by means of an authorised
manager, as opposed to less sustainable alternatives.
In this way, 60% of hazardous waste was recovered in
2019, as well as 67% of non-hazardous waste.
- Casting process:
In line with the principles of circular economy, at its foundry
plant AMPO has a moulding sand recovery line that uses a
mechanical sand recovery machine with a capacity for 20
ton/h, a thermal sand recovery machine with a capacity
for 3 ton/h and a chromite sand recovery machine for 5
ton/h. The aim with this equipment is to recover much of
the sand used in the casting process, which enables it to be
reused in the process with a three-fold objective: to reduce
the consumption of materials; to generate less waste; and
to reduce the associated transport.

Source of Type of 2019

SAND SAND Kg % %

Silica 7,600,131 71
Recovered 72
Chromite 117,620 1

Silica 2,698,700 25
New 28
Chromite 346,500 3

TOTAL SAND 10,726,951 100 100

COMMITMENTS OF AMPO · Commitment to the environment 33

 In parallel, we are working with other foundries in a
circular economy project led by Ihobe to find alternatives
for the sands that cannot be recovered, so that the treated
sand can be used in other sectors as a raw material.
– Melting
The foundry production process enables much of the
returns to be reused as raw materials in furnaces, without
having to take them out of the premises. In 2019, 46%
of the melted material in furnaces came from the internal
recovery of metallic waste that had been generated in the
production process itself, with the main sources being the
melting, cutting and machining processes.
• Melting and cutting
AMPO separates the melting (ingots, cakes) and cutting
(sprues) returns according to their characteristics so that
they can be reused. This enables them to be recovered
internally, melting them again in our furnaces, thus
reducing waste generation, consumption of raw materials,
and the associated transport.
• Machining
At its machining plant, AMPO has a shavings treatment
line that enables some of the shavings generated as a
by-product of our machining process to be shredded,
washed and made into briquettes. This enables them to be
recovered internally, melting them again in our furnaces,
thus reducing waste generation, consumption of raw
materials, and the associated transport.

2019
Source of
Type of MATERIAL
MATERIAL % Recovery,
Kg % % Recovery
according to source

Internal Recoverable metallic waste 3,943,449 46 46

94
External Recoverable metallic waste 4,222,829 49 49

External New ferro-alloys 484,704 6 NP NP

TOTAL MATERIAL 8,650,982 100

34 COMMITMENTS OF AMPO · Commitment to the environment

COMMITMENTS OF AMPO · Commitment to the environment 35
 SUSTAINABLE USE OF ENERGY
AMPO is committed to efficiency, and particularly to
energy efficiency. Consequently, the cooperative has a
cogeneration plant, which enables it to produce energy
and heat in a highly efficient way, as the power is used
up in the manufacturing process and the heat generated
through combustion is used for those processes that require
heating. 64% of the power consumed in the foundry plant
is produced internally in the cogeneration plant, importing
the remaining 36% from the main supply.
Furthermore, energy efficiency is a factor that is given
special importance in all new projects, such as in the
machining facility extension project, for example, where
the most noteworthy elements include:
• The installation of translucent elements on the
façade and roof, to maximise the amount of natural
36 COMMITMENTS OF AMPO · Commitment to the environment
light entering the building, and to reduce electricity RENEWABLE ENERGIES
consumption due to artificial lighting.
AMPO is firmly committed to renewable energies, and it
• Installation of LED lighting. currently has the following installations:
• Green roof, which apart from minimising the visual – Foundry and Machining plant:
impact of the factory, allows for greater heat
• 1 photovoltaic installation with 120 photovoltaic
insulation in the different buildings that make up
modules, offering a total power capacity of 36 kW
the plant.
and a generation capacity of around 37,743.21
• Installation of photovoltaic panels. kWh/year.
The combination of these and other sustainability strategies – Valve manufacturing plant:
has earned AMPO the LEED GOLD sustainable building
• 1 geothermal installation for the heating at the
certification for this plant.
Creativity House.
The cooperative also carries out regular energy audits
• 1 small wind turbine.
that enable it to have an Energy Efficiency Action Plan to
determine the main points of action and to prioritise the • 1 photovoltaic installation with 2 modules, offering
different steps to take. To assist in this task, it has partial a total power capacity of X kW.
meters to monitor consumption and analyse any possible
deviations that may arise.
 NOISE

Noise is also an environmental priority for AMPO. In

order to minimise it, the cooperative has a plan in place
with the following main lines of action:

• Silencers in the main aspiration chimneys. We

currently have 12 silencers.

• Acoustic insulation in the main aspiration engines.

• Modification in the direction of certain focal points.

• Inclusion of environmental noise criteria in the new

investments purchase specifications.

SOIL

AMPO has facilities that are designed to be able to store

chemical products, waste, scrap, etc. in safe conditions
without affecting the environment. To do so, it has the
relevant covered storage facilities, waterproofing,
containers, etc.

COMMITMENTS OF AMPO · Commitment to the environment 37

4. COMMITMENTS OF AMPO

4.5. COMMITMENT TO OUR

COLLABORATORS
AMPO is part of a community and, as a result, it is of vital
importance for us to continually relate to the area around us
and to be an active agent within the community. The aim is
to grow, and to help society grow.

38 COMMITMENTS OF AMPO · Commitment to our collaborators

To do so, we rely on the help of our suppliers, who we
consider to be an important part of our value chain. We
actively collaborate with universities, technology centres
and start-ups; we participate in consortia; we are active
members of different associations; and we also maintain
close relationships with institutions.
OUR SUPPLIERS, PART OF OUR
VALUE CHAIN
At AMPO, we are aware that our sustainability as a
project does not only depend on our efforts, but on the
efforts of our entire value chain. That is why we consider
the relationship with our suppliers and collaborators to be
fundamental. Taking this as a starting point, we promote
long-term relationships with those collaborators who offer
products and services that help us improve our competitive
standing, so that we can grow and develop together. We
do so by promoting relationships based on trust and which
can be sustained over time.
Another of the fundamental objectives of our supply chain
management policy is to help maintain and protect the
local business fabric and to generate value in our local
environment. Based on this policy, in 2019 we made
purchases of approximately 54 million euros within a
100-kilometre radius. It is also worth pointing out that,
in the case of development and innovation projects, as
well as in the case of solutions for after-sales services,
we always work hand in hand with local suppliers who
ensure optimum quality and excellent service.
As regards endorsements, AMPO currently has over
260 approved suppliers. The approval process for
suppliers backs a working model that aims to promote
ethical conduct in line with our strategy; reduce financial,
operational and legal risks; ensure maximum levels of
service; and optimise the cost of the services or materials
in question.
In addition, we search for the maximum integration of
our suppliers, as continual collaboration helps us to
improve their processes and brings greater added value
to our project. For this purpose, we offer our suppliers
different levels of integration. For example, 14 of them
have the highest level of integration, and participate in
our production programme.
COMMITMENTS OF AMPO · Commitment to our collaborators 39
 with companies, whilst offering those companies students in their last year of study and teachers/
the opportunity to work with people with suitable researchers with experience in the subject matter
COLLABORATION WITH training. take part directly in these projects. This type of
UNIVERSITIES experience has two advantages: on one hand,
• We participate in Employment Forums,
the students from the campus have the chance
collaborating in the training and job insertion of
to directly participate in research projects that
their students.
The cooperative collaborates with different local support the needs of local businesses; and on
universities, such as MONDRAGON UNIBERTSITATEA, • We organise tours of AMPO, so that students can the other hand, the companies are provided with
TECNUN, DEUSTO and EHU, through the following see the industry in real life, first-hand. young engineers who are being trained in specific
policies and initiatives: subjects, enriching the reserves for the local
• We jointly develop innovation and engineering
• We offer work practice, dual training, and projects in collaboration with universities' industrial fabric.
dissertations for different university disciplines. engineering departments. This is the case with the
In the case of MONDRAGON UNIBERTSITATEA, MONDRAGON UNIBERTSITATEA Goierri campus,
we are assisted by the educational development with which we collaborate in projects on materials,
cooperative, ALECOP. From an essentially social characterisation and optimisation of designs and
COLLABORATION WITH
approach, they provide students with real contact the development of innovative products, etc. Both TECHNOLOGY CENTRES, START-
UPS AND CONSORTIA

AMPO regularly collaborates with prestigious local and

international technology centres, such as Lortek, Ikerlan,
CIET, Tekniker, CEIT, Azterlan, CTI, etc. who complement
our knowledge and skills.

It is worth mentioning that, in 2019, the cooperative

continued to work on numerous innovation projects,
including its own R&D project “DEGATE” in collaboration
with several technology centres in the Basque Science,
Technology and Innovation Network, to support and
strengthen the company’s specialisation and diversification
strategies. The “DEGATE” project aims to develop a new
high integrity and reliable double expanding gate valve
range aimed at the oil & gas industry, and in particular,
to the Upstream and Midstream sectors. This new product
range will make it possible for the company to deal with the
ever more demanding emissions and safety requirements

40 COMMITMENTS OF AMPO · Commitment to our collaborators


that are imposed by the industry, and in turn, it will enable
AMPO to compete with the main valve manufacturers on
the international market.
We should also highlight that, several years ago, AMPO
began to collaborate with specialised technology-based
start-ups and with innovative business models, which
offer specific solutions to AMPO’s needs, for example:
• Cybersecurity and Linux applications programming.
•
PCB design and development of embedded
systems.
•
Development of web servers and database
applications.
• Development of ultra-low consumption electronic
and RFID communication.
• Development of electronic systems for explosive
atmospheres.
Lastly, AMPO also participates in different consortia,
collaborating with leading companies in the area, among
which we may highlight the following:
– SMART OIL & GAS CONSORTIUM: AMPO is
participating in the Smart Oil & Gas project along
with 5 other Basque companies, with the support of
the Basque Energy Cluster and several agents from
the Basque Science and Technology Network. The
objective of this project is to boost the differentiation
strategy of Basque companies in the Oil & Gas sector
with products that have greater added value and with
comprehensive solutions, designing and developing
new technologies, components and integrated,
modular and smart solutions for upstream applications
within the industrial oil and natural gas sector. This
project has a budget of € 5.6 M for the 2019-2021
period, and is funded by the Basque Government’s
Hazitek programme, with support from the European
Regional Development Fund (ERDF).
The consortium is led by TUBACEX and, in addition
to AMPO’s participation, it has secured collaboration
from another four leading companies in the sector
(Erreka, Fidegas, Hadimek and Alerion), as well as
support from several technology centres (Tecnalia,
Azterlan, CEIT and Ikerlan) and a unique collaboration
with companies such as Farsens and Lumiker.
– ACTIVE CONSORTIUM: The ACTIVE project is
based on a multisectoral consortium with the goal of
launching a new generation of functional products onto
the market that can interact with their environment.
To do so, innovative surface treatment technologies
are studied, which will enable this new generation of
products to be equipped with the necessary elements
to be able to interact with the environment and to
ensure that their surface responds adequately.
– CONAN CONSORTIUM: This consortium is led
by AMPO and its goal is to develop an intelligent
inspection system to advance in “ZERO-DEFECT”
manufacturing. Also participating in this project are:
the IK4 Ideko technology centre, Laulagun, Ulma
Forja, Engine Power Components, Matz-Erreka,
Danobat Group and Savvy Data Systems.
The project adopts this new Zero-Defect philosophy,
and focuses on optimising manufacturing processes
through two essential levels of action on a key process
in the production line:
Level 1 (Intelligence) - Identification and improvement
of key processes by applying advanced manufacturing
models at the plant.
Level 2 (Acquisition) - Monitoring of the manufacturing
process by implementing non-destructive inspection
techniques (NDT).
COMMITMENTS OF AMPO · Commitment to our collaborators 41

ACTIVE MEMBERS OF DIFFERENT
ASSOCIATIONS
AMPO actively participates in the following associations,
whose objectives are defined below:
– GOIERRI VALLEY: This alliance was initially formed by
33 companies in the Goierri region in June 2017. Its
mission is to be the driving force behind the industrial
transformation of the Goierri region, through the
active collaboration of associated companies, sharing
knowledge and innovating to ensure the area's future
sustainability and industrial competitiveness. The
alliance brings together leading businesses in the
region (CAF, Irizar, AMPO, Indar, Orkli, Jaso, GH,…)
and SMEs that are mostly their suppliers.
– GOILAN: Goilan strives to promote the growth of
cooperatives in its region, which is its main objective.
In other words, the development of cooperativism
in the region, promoting technological, human and
social training and education, and the development of
companies and activities that generate a progressive
socio-economic transformation.
– GOIERRI FOUNDATION: Its business purpose is to
promote training and the technical, economic and
social development of the Goierri region.
42 COMMITMENTS OF AMPO · Commitment to our collaborators
– FLUIDEX: Fluidex is the Spanish Association for Fluid
Handling Solutions & Process Technologies, a non-
profit association that has had a strong international
outlook since it began. In 2019, the Association
celebrated its 30th anniversary, and it continues to
coordinate programmes and working groups that
promote research strategies, as well as development
and innovation to achieve a greater position in the
market. AMPO currently holds the Presidency of this
Association.
including the Basque Government, the Gipuzkoa
– FUNDIGEX: Fundigex is the Spanish Association Provincial Council, Idiazabal Town Council, the Goierri
of Casting Exporters, a non-profit organisation Regional Development Agency, Goieki, etc.
whose main objective is to promote the export and
Every year we participate in a range of projects and
internationalisation of companies in the foundry sector.
initiatives promoted both by the Basque Government and
the Provincial Council of Gipuzkoa, mainly due to the
objectives we have in common. For example, the objective
RELATIONSHIP WITH to attract, regain and retain talent in our territory. This is
why, in 2019, we once again took part in the “Gipuzkoa
INSTITUTIONS Talent” forum and in the “Be Basque Talent Conference”,
the objectives of which are to promote and encourage
human capital in the territory, in turn connecting those
At AMPO we believe that for society and business
human resources with the companies that need them to
organisations to advance, there has to be continuous
take on their future challenges. In 2019, the Be Basque
public-private collaboration, and this is why we maintain
Talent Conference was held in Paris.
solid institutional relationships with all public agents,
 GOIERRI VALLEY includes driving forces such as CAF,
Irizar, AMPO, Indar, Orkli, Jaso, GH,…. and also
SMEs, such as Arri, Ederfil Becker, Eredu, GetSubsea,
Goieki, Gune, Hine, Labe-lan,…. Among other projects,
initiatives such as “PRESENTATION BREAKFASTS” were
developed, along with the “WIN&WIN” programme, the
purpose of which is to steer SMEs towards their future
competitiveness, the MUNDUAN project, which aims to
support and guide companies in the Goierri Valley in their
internationalisation process (focusing on France, Mexico,
Germany and Chile), the MULTI-LEVEL FORUMS, the
objective of which is to promote collaboration between
leading businesses in the region, etc. The first Mubizing
congress was also held, an event that was organised and innovation, and also to attract talent that can drive
by companies in the Goierri Valley and backed by the the companies in the Goierri Valley to excellence in the
Provincial Council of Gipuzkoa, to promote relationships mobility and energy sectors.

As far as the region is concerned, we also have a

close relationship with GOIEKI, the Goierri Regional
Development Agency, which is made up of the 18 Town
Councils in the region, and with which we collaborate on
a range of projects in the industrial and social areas.

2019 continued to be an important year in terms of

regional collaboration, with an ongoing alliance with
GOIERRI VALLEY, which was formally created in 2017.
This alliance is made up of 68 companies in the region,
including AMPO, and its mission is to be the driving force
behind the industrial transformation of the Goierri region,
through the active collaboration of associated companies,
sharing knowledge and innovating to ensure the area's
future sustainability and industrial competitiveness. For
this purpose, the group had a budget of approximately
€ 450,000 in 2019.

COMMITMENTS OF AMPO · Commitment to our collaborators 43

 2000 VALVES FOR THE SIXTH TRAIN IN
5. MAIN MILESTONES OF 2019 PROJECT ALLOCATIONS BY SECTOR:
THE SABINE PASS LNG PROJECT:
At the end of 2018, Cheniere Energy, an LNG export
company based in Houston (USA), signed an EPC contract
Natural gas: with Bechtel to build the sixth train in the Sabine Pass LNG
plant.

CRYOGENIC VALVES FOR THE BEIHAI

LNG AND TIANJIN LNG TERMINALS IN
CHINA:
In 2019, AMPO POYAM VALVES was allocated several
orders for cryogenic ball, globe, gate and check valves
CUSTOMERS AND PROJECTS from the Chinese corporation Sinopec for the Beihei and
Tianjin LNG regasification terminals in China. In total,
AMPO has supplied over 1100 valves for Beihai LNG
and over 800 cryogenic valves for Tianjin LNG.
AMPO POYAM VALVES:

IMPORTANT CUSTOMERS, SUCH AS EIL

AND CONOCO PHILLIPS, APPROVED THE
AMPO INDIA MANUFACTURING PLANT:
In 2017, AMPO POYAM VALVES officially opened a new
valve manufacturing plant in Coimbatore (Tamil Nadu,
India) to meet its clients’ needs and requirements. This
15,000m2 plant is 100% owned by AMPO, and the
company has the capacity to manufacture valves of up
to 72”.

Since its inauguration, it has been backed by several

clients. This list of approvals was extended in 2019 with
the addition of important clients such as EIL (Engineers
India Limited) and Conoco Phillips.

44 MAIN MILESTONES OF 2019 · Customers and projects

Both clients once again chose AMPO POYAM VALVES
to design and produce over 2000 valves for this new
LNG train, including the following: manual cryogenic
ball valves, cryogenic globe and check valves, as well as
actuated cryogenic and non-cryogenic valves and metal
seated valves. The equipment size was up to 54” and the
valve pressure range was between 150 and 1500 lb. 

Since 2005, AMPO POYAM VALVES has supplied over

20,000 highly engineered valves for Cheniere’s Sabine
Pass LNG project, as well as valves for another major
project by the same client: Corpus Christi LNG. 

It is also worth pointing out that, in this case, the company

also provided after sales services, and supported the
construction, commissioning and start-up of Train 6,
with the help of AMPO SERVICE's extensive team of
technicians.

550 VALVES FOR THE INNOVATIVE

CROSS-BORDER GREATER TORTUE
AHMEYIM FLNG PROJECT IN AFRICA:
In 2020, AMPO POYAM VALVES was awarded a contract
to supply 550 cryogenic and non-cryogenic ball, globe
and gate valves between 150 and 1500 lb for the first
phase of BP’s innovative cross-border “Greater Tortue
Ahmeyim FLNG Development” in Africa, which will be the
deepest offshore LNG project in the African continent. The
project will entail two FLNG vessels positioned 8 km from
the coast, on the maritime border between Mauritania
and Senegal.

The contract was awarded to AMPO POYAM VALVES by

Saipem, the engineering company in charge of the EPC
subsea system and a floating LNG production, storage will then be transferred to a floating liquefied natural gas
work at the terminal and the LNG facilities, but the end
and offloading unit (FPSO), which will process the gas facility (FLNG) in an innovative centre located off the coast
user for the project will be BP. The Greater Tortue Ahmeyim
to remove the heavier hydrocarbon components. This gas on the maritime border between Mauritania and Senegal.
development will produce gas from an ultra deepwater

MAIN MILESTONES OF 2019 · Customers and projects 45

 Refining, chemical and
petrochemical industries:

900 ACTUATED GATE VALES FOR THE

DANGOTE REFINERY IN NIGERIA:
Between 2019 and 2020, AMPO POYAM VALVES will
supply 900 highly engineered gate valves for the Dangote
refinery and petrochemical complex under construction
near Lagos, Nigeria. Dangote is expected to be the
largest oil refinery in Africa, as well as the largest single-
train facility in the world.

EIL (Engineers India Limited) was awarded the engineering,

procurement and construction contract for Dangote, thus
becoming the engineering firm for this project. Both the
end user and the engineering firm chose AMPO POYAM
VALVES to design and produce 900 electrically actuated
valves for the refinery’s different divisions. Some of the
valves will be high pressure valves (2500 lb pressure seal
design) as well as being large, with sizes up to 36″. All
the valves must also be controlled by means of master
stations, which will also be supplied by AMPO. All these
valves and systems are considered to be critical equipment
for the plant. With this accomplishment, AMPO POYAM
VALVES strengthens its presence in Africa.

46 MAIN MILESTONES OF 2019 · Customers and projects

VALVES WITH ELECTRO-HYDRAULIC
ACTUATORS FOR THE RAS TANURA
REFINERY IN SAUDI ARABIA:
In 2019, AMPO POYAM VALVES supplied over 800 globe,
gate and check valves in stainless steel and carbon steel
for the Ras Tanura refinery, which is considered to be the
oldest refinery on the Persian Gulf coast, and which is
located close to the port city of Jubail, in Saudi Arabia.
The valve sizes ranged from 2” to 66”, and the pressure
ranged between 150 lb and 600 lb. It is also worth
pointing out that some valves also had electro-hydraulic
actuators.
The Ras Tanura refinery has a distillation capacity of
550,000 barrels of crude oil per day, and it is owned and
operated by the state-owned company Saudi Aramco.
However, the plant engineering was carried out by the
Spanish company Técnicas Reunidas, which awarded this
contract to AMPO.
BALL VALVES WITH AMPO RCM
MONITORING SYSTEMS FOR THE
TIANJIN POLYCARBONATE PLANT:
In 2019, AMPO POYAM VALVES was awarded a contract
to supply a range of highly engineered ball valves for the
Tianjin polycarbonate plant in China. The Sinopec Sabic
Tianjin Petrochemical Co. Ltd (SSTPC) joint venture chose
the European company to design and produce several ball
valves, some of which will be supplied with the innovative
and patented AMPO RCM (Remote Condition Monitoring)
valve monitoring system.
MAIN MILESTONES OF 2019 · Customers and projects 47
 The AMPO RCM system, developed by AMPO POYAM
VALVES, monitors the torque/position of the installed
valves anywhere in the world, and it detects potential
errors that may arise in the future in the valves that have
been installed at the facility in question, consequently
helping to prevent any unexpected stoppage. This system
entails the valves being continually connected, so that
AMPO POYAM VALVES can monitor and analyse their
status.
The Tianjin polycarbonate complex, which will have a
productive capacity of 260,000 tonnes of polycarbonate
per year, has been developed by Sabic, the company that
has one of the most advanced worldwide licences on the
market, as regards polycarbonate. This licence has been
successfully implemented before at the Sabic Cartagena
plant in Spain. The AMPO POYAM isolation ball valves
will be installed on the most critical production lines at
the plant in China, and they will come with double-acting
actuators.
HIGH PRESSURE GLOBE AND
CHECK VALVES FOR THE CHINESE
PETROCHEMICAL INDUSTRY:
In 2019, AMPO POYAM VALVES supplied several high
pressure globe and check valves of up to 20” and 2500 lb
for a petrochemical plant in China. Most of the equipment
was installed in the plant’s steam cracking unit.
GATE VALVES WITH ELECTRIC
ACTUATORS FOR THE GCGV COMPLEX
IN THE USA:
AMPO POYAM VALVES designed and manufactured gate
valves with electric actuators for GULF COAST GROWTH
VENTURES (GCGV), a joint venture between Exxon Mobil
and Sabic. More specifically, these valves are for use
48 MAIN MILESTONES OF 2019 · Customers and projects
in the construction of a chemical facility in San Patricio
County (Texas), which will be built by four EPCs: The
Wood Group, CMI & Turner Industries Group, Chiyoda &
Kiewit, and Mitsubishi Heavy Industries & Zachry Group.
Construction began in the third quarter of 2019 and the
facilities are expected to be up and running in 2022.
Most of the valves are made of stainless steel and carbon
steel, but some monel valves will also be supplied for
oxygen service. Consequently, these valves were designed
and manufactured in a way that ensures there is no
danger of ignition. The valve size varied up to 30” and
the pressure range was between 150 and 1500 lb.
Upstream:
SAIPEM AND SAUDI ARAMCO CHOSE
AMPO POYAM VALVES TO SUPPLY A
RANGE OF CHECK VALVES FOR THE
BERRI AND MARJAN OFFSHORE FIELDS:
In January 2019, the Saipem EPC company, based
in Italy, was awarded two EPIC contracts by Saudi
Aramco for the engineering, procurement, installation
and construction services involved in the development of
the Berri and Marjan offshore fields. Both contracts form
part of a long-term agreement that was signed between
the Italian contractor and Saudi Aramco for the offshore
activities, and their main objective is to increase the
productive capacity of the Marjan and Berri oilfields by
550,000 barrels of Arabian crude oil per day, and 2.5
billion standard cubic feet per day (BSCFD) of gas.
Both companies entrusted the design and manufacture of
a range of highly engineered check valves with Inconel
overlays to AMPO POYAM VALVES for this offshore project
in the Persian Gulf. The scope of the project entailed the
design and manufacture of several check valves of up to
36” and 1500 lb with welding overlays in Inconel. These
valves will be installed in the offshore platforms and in
the topside piping at the Berri field. For this kind of work,
AMPO POYAM VALVES has had its own foundry since
1964, which in turn has a new machining plant with
intelligent machining centres, as well as welding overlay
technologies. Consequently, the overlays in Inconel for this
project will be made with a high degree of automation at
AMPO, using different robots and cells for the job.

All these valves will be delivered in 2020.

HIGH PRESSURE VALVES FOR 4

OFFSHORE PLATFORMS IN THE
SAFANIYA OILFIELD ON THE COAST OF
THE PERSIAN GULF:
AMPO POYAM VALVES designed and manufactured
several ball and check valves of up to 42” and 1500
lb with electric, hydraulic and pneumatic actuators, and
with high quality Inconel overlays for the Safaniya oilfield,
which is owned and operated by the state-owned oil
company Saudi Aramco. This is the largest oilfield in the
world and it is located 200 km north of Dhahran (Saudi
Arabia), in the Persian Gulf.

Our experience of over 54 years in the market, and in

particular in offshore platforms, is what made NPCC
(National Petroleum Construction Company) and the end
user Saudi Aramco choose AMPO POYAM VALVES for
this contract.

MAIN MILESTONES OF 2019 · Customers and projects 49

 Pipelines:

LARGE VALVES FOR THE ONSHORE

YANBU AND JUAYMAH TERMINALS IN
SAUDI ARABIA:
AMPO POYAM VALVES was allocated a new contract to
supply a range of highly engineered valves of up to 48”
and 600 lb for the onshore Yanbu and Juaymah terminals
in Saudi Arabia. Both terminals will be connected by the
Arabian Heavy delivery to Yanbu East West pipeline,
which crosses the country from east to west. Saudi
Aramco is the owner and end client of both terminals,
and allocated the EPC contract for the development of this
project to the Tunisian contractor EPPM, one of the most
active engineering companies currently operating in the
Middle East and Africa.

Throughout 2020, AMPO POYAM VALVES will supply a

range of ball valves with metal seats and electro-hydraulic
actuators of between 30” and 48” and weighing 150 to
600 lb, in addition to the 30” and 48” gate valves and
several highly engineered 24” globe valves with electric
actuators. All these valves will be installed at both ends
of the pipeline.

A 48” gate valve will also be delivered with the interiors

coated with FBE (Fusion Bonded Epoxy). This coating helps
to protect the plants' pipelines from corrosion, as well as
providing improved properties for the valves to operate at
high temperatures, and protecting the equipment against
mechanical damage, etc. In addition, this covering
adheres perfectly to interior surfaces.

50 MAIN MILESTONES OF 2019 · Customers and projects

ENPPI CHOSE AMPO POYAM VALVES TO
SUPPLY A RANGE OF VALVES FOR THE
KHUFF GAS PIPING PROJECT IN SAUDI
ARABIA:
The Egyptian state oil company ENPPI (Engineering
for Petroleum and Process Industries) entrusted AMPO
POYAM VALVES to design and manufacture a range of
highly engineered valves with Inconel coatings for the
Khuff Gas Piping project in Al Khobar, Saudi Arabia. The
scope of the project entailed the design and manufacture
of gate and globe valves with welding coverings in
Inconel. The overlays in Inconel were made with a high
degree of automation at AMPO, using different robots and
cells for the job.

The Khuff gas pipelines are owned by Saudi Aramco, the

national oil and natural gas company in Saudi Arabia,
and they are located in the central-eastern part of the
country.
450 VALVES FOR A H2S SERVICE FOR
SAUDI ARAMCO’S SATELLITE GAS
COMPRESSION PIPELINE PROJECT IN
SAUDI ARABIA:
The end user, Saudi Aramco, and the Turkish engineering
company Tekfen Instaat entrusted AMPO POYAM VALVES
with the design and manufacture of 450 high-performance
valves for the following project in Saudi Arabia: Satellite
Gas Compression Pipeline. More specifically, AMPO
supplied gate and check valves with incoloy 825 overlays
for a H2S service. The valve sizes ranged from 2” to 20”,
and the pressure ranged between 600 lb and 900 lb.
Most of the solutions were critical, due to the high pressure
and the acid application itself.
20” GLOBE VALVES WITH HYDRAULIC
ACTUATORS FOR THE OMAN DESERT:
Globe valves of 20” and 600 lb, with hydraulic actuators,
made by AMPO POYAM VALVES were installed in a
301-kilometre gas line in the Liwa Plastic Industries
Complex (LPIC) in Oman. More specifically, they were
installed in a 32” EPC4 NGL pipe.
The Indian company Punj Lloyd Ltd was the main EPC on
this project, but the plant is currently owned by Oman
Oil Refineries and Petroleum Industries Co (ORPIC) and
Oman Gas Co (OGC).
The Liwa Plastic Industries Complex (LPIC) is a
transformation project that will improve ORPIC's product
mix and business model, and support the development of
the downstream plastics industry in Oman.

MAIN MILESTONES OF 2019 · Customers and projects 51

 involved in this expansion was carried out by Duro
Felguera, in a project aimed at securing a natural gas
vapour recovery system and the construction of the plant’s
fifth LNG storage tank.
TRAINING REPSOL REFINERY
PERSONNEL:
In October, we had the pleasure of receiving a visit
from 15 technicians and engineers from different Repsol
refineries at our Idiazabal facilities, for a training session
offered by AMPO SERVICE and the AMPO POYAM VALVES
engineering team.
As part of this training session, we had the opportunity
to show them AMPO’S technical, technological and
productive capacities in detail, to show them our
valves for the refinery industry, our plans for optimising
maintenance, and we also had the chance to get more in-
depth knowledge of their needs as regards valves.

AMPO SERVICE:

AMPO SERVICE WAS PRESENT AT THE

ZEEBRUGGE LNG PLANT FOR A WHOLE
YEAR:
The Belgian natural gas operator FLUXYS LNG chose
AMPO SERVICE to carry out the construction and start-up
services associated with the valves at its LNG Zeebrugge
plant. As a result, qualified valve technicians from AMPO
SERVICE spent a whole year in Belgium to support the
plant’s technical staff, and to help extend the valves’ useful
life, providing support in the pipe cleaning process, in the
assembly of the valves’ internal components, and actively
participating in the plant’s commissioning and start-up
process.

AMPO POYAM VALVES has supplied around 1300

butterfly, ball, globe, gate and check valves to Zeebrugge
LNG, which will be installed in the fifth LNG storage tank
with a capacity for 180,000 cubic metres. The engineering

52 MAIN MILESTONES OF 2019 · Customers and projects

TRAINING CHENIERE:
In 2019, an extensive group of representatives from the
maintenance team at the US company Cheniere spent
two weeks at our plant in Idiazabal to receive training in
our valves. These training sessions were offered by both
the AMPO SERVICE team and the AMPO POYAM VALVES
engineering team. During this time, as well as acquiring
technical knowledge and skills regarding our solutions,
they also had the opportunity to see our capacities first
hand.

START-UP SERVICES FOR THE EGA

(EMIRATES GLOBAL ALUMINIUM) AL
TAWEELAH PROJECT:
At the end of 2018, AMPO SERVICE signed a two-
year agreement with EGA (Emirates Global Aluminium)
to provide maintenance services at its Al Taweelah
Alumina Refinery plant, for which AMPO POYAM VALVES
previously supplied over 7000 angle valves. Consequently,
in 2019, an extensive team of AMPO SERVICE technicians
participated in the plant’s commissioning, supporting
EGA’s own team.

TECHNICAL ASSISTANCE SERVICES FOR

A NORWEGIAN LNG CARRIER OWNED
BY KNUTSEN:
In 2017, Hyundai Heavy Industries and Knutsen OAS
South Korea entrusted AMPO POYAM VALVES with the
design and manufacture of a series of 2500 lbs cryogenic
ball valves, which were installed on Knutsen’s Norwegian
LNG carrier for the fuel inlet. In 2019, the AMPO SERVICE
team offered technical assistance to this major carrier.

MAIN MILESTONES OF 2019 · Investments 53

 AMPO FOUNDRY:
FULLY MACHINED FORGE
COMPONENTS:
A leading company in ball valves for severe services
once again commissioned AMPO Foundry to supply
several sets of fully machined forge components, such as
casings, sides and balls for high pressure services. All the
parts were machined at our new facilities with the most
innovative machining technologies around.
54 MAIN MILESTONES OF 2019 · Customers and projects
ROLLERS FOR HEAT TREATMENT
FURNACES:
In 2019, AMPO supplied several rollers for heat treatment
furnaces for a new client. This project entailed the
development of a new foundry product and was successfully
implemented thanks to highly detailed engineering work.
The client’s collaboration and participation were also key
to understanding the requirements in question, and to
enabling us, from the outset, to adapt to meet the particular
needs that installing these rollers entailed. With this new
product, the foundry strengthens its diversification strategy.
A MAJOR EUROPEAN GROUP ONCE
AGAIN CHOSE THE FOUNDRY TO
DEVELOP ITS COMPONENTS FOR GAS
COMPRESSORS AND STEAM TURBINES:
Due to all the work carried out in the previous year, a major
European group once again chose the foundry to develop
and manufacture a range of foundry components for its
gas compressors and steam turbines. These solutions will
be installed at the client’s plants in France, USA, Germany
and the Czech Republic.
SIGNIFICANT ORDERS FOR PUMP
COMPONENTS IN SPECIAL MATERIALS:
In 2019, the foundry was allocated several orders for
pump components in special materials, such as super
duplex. AMPO has the best possible facilities to develop
and manufacture components for this demanding market
niche, where technical control is key.
BALL VALVE COMPONENTS IN DUPLEX
FOR THE LIZA FPSO OFFSHORE PLANT:
In 2019, the foundry secured a significant order from
a valve manufacturer to supply valve components that
were fully machined in duplex material for the Liza FPSO
offshore project, the end client of which was Exxon Mobil.
DECANTERS:
In line with its diversification strategy, this year AMPO
has continued to produce components for the separation
sector, supplying fully machined decanters and
consolidating its position in this sector and with a series of
regular clients. AMPO is a perfect provider for this type of
product in the separation sector, thanks to the fact that it
has its own centrifuge facilities and innovative machining
technologies.
COMPONENTS FOR THE MARINE
PROPULSION SECTOR:
It has been a long time since the foundry first ventured
into the marine sector, and it is gradually consolidating its
processes and clients. An example of this is its ongoing
development to broaden its range of components for
this sector. Most of these components are delivered fully
machined. Leading manufacturers in the sector continue
to trust in our innovative casting technologies to develop
critical components for waterjets, such as impellers,
housings, diffusers,… As a result, different vessels,
including coast guards, passenger ferries and wind farm
service boats can be propelled by AMPO components.
MAIN MILESTONES OF 2019 · Customers and projects 55
 INVESTMENT
NEW MACHINE FOR WELDING
OVERLAYS FOR LARGER, MORE
COMPLEX COMPONENTS:
In 2019, AMPO continued to back welding overlay
technologies, investing in a new highly-automated machine
to be able to perform welding overlays on larger and more
geometrically complex components.
As a result, the foundry currently has a total of four
machines to perform this type of welding overlays. The
56 MAIN MILESTONES OF 2019 · Investments
weld overlay operations are carried out with a high degree
of automation using our robots and cells. This means we
can offer coverings with high added value (Stellite, Ultimet,
Nickel, Inconel 625, Incoloy 825, Colmoloy, Cupronickel,
…) for more special and severe processes, so as to equip
the contact areas with anti-corrosive qualities, resistance
to high temperatures, anti-coking qualities, etc.
PLAN TO REDESIGN THE VALVE
MANUFACTURING PLANT IN IDIAZABAL:
The cooperative is currently redesigning its highly
engineered valve manufacturing plant in Idiazabal, which
will enable it to offer a greater added value and service
to its clients, as well as improving its own efficiency in its
processes.
The valve division’s current operational strategy is mainly
based on boosting the engineering and innovation activities,
as well as improving its efficiency in the development and
manufacture of valves for the more severe services in the
energy sector. Consequently, in 2019 it designed a new
layout for its valve division, based on LEAN methodology,
focusing on continuous improvement and increasing the
efficiency of its processes to offer its clients maximum value.
For example, by improving control and synchronisation of
different processes, defining a more simple and efficient
flow of material, etc.
 PREPARATION OF VISITING AND
MEETING ROOMS:
In 2019, the cooperative fitted out a number of rooms for
visiting clients, suppliers, etc. as well as rooms for internal
use, including multi-purpose rooms, training classrooms,
meeting rooms, etc.
SAFETY IMPROVEMENTS:
A series of measures were implemented in 2019 to
improve the level of safety in our facilities and our
processes, including the following:
• Updating test benches
• Improving the elements for handling large valves

DIGITAL TRANSFORMATION PLAN AND

THE KOSMOS PROJECT:
AMPO currently has a Digital Transformation Plan for
the period 2018-2022. The aim of this plan is to digitise
all the areas of AMPO's value chain in a distinctive and
competitive way that is clearly aligned with the business
objectives.

To do so, they are working on implementing technologies

for digital client access and order management, Sourcing
4.0 technologies, smart factory and integrated planning
concepts, logistics based on data, and inventory
management in real time, digital services and service
management, etc.

As part of this Plan, one of the most important projects

is KOSMOS, which entails the development and
implementation of a new ERP as well as other systems and
applications. This will help us to continuously transform
our processes and to adopt decisions based on data,
which will consequently help us to be more agile. Kosmos
will also be a new space for sharing, where all AMPO’s
applications will be included. Kosmos will be our new
universe.

MAIN MILESTONES OF 2019 · Investments 57

 INNOVATION components. This test bench will be located in a new DEVELOPMENT OF NEW VALVES FOR
space allocated to the production of valves for upstream ULTRA HIGH PRESSURES:
applications.
Another of the most important projects in the area of
The company specialises in severe service valves, so the innovation was the development of valves for ultra high
VALVES: harsh requirements of the upstream sector are clearly in pressures: top entry ball valves, valves with two and three
keeping with the standards offered by AMPO. casings, compact ball valves, and swing check valves, to
be specific.
DEVELOPMENT OF VALVES FOR
UPSTREAM AND ATTAINMENT OF API
CERTIFICATION:
In 2019, AMPO POYAM VALVES obtained API 6A and
API 17D certificates, as well as extending its API 6DSS
certificate. Consequently, the valves for subsea and
offshore applications that are designed and produced by
AMPO POYAM VALVES now have API 6A, API 17D and
API 6DSS certificates from the API (American Petroleum
Institute).

The AMPO POYAM VALVES innovation team continued to

develop a wide range of valves for the upstream sector in
2019, in collaboration with experts in the industry, and
also with the collaboration of some of the most important
technology centres and engineering companies in Europe.
Within the framework of this project, a series of field tests
were carried out at sea to assess corrosion by sea water
and fouling resistance of different coating materials used
to protect the valves’ internal components against wear &
tear and galling.

Furthermore, it is worth pointing out that AMPO has access

to the most cutting-edge test benches in Europe, and in
2020 it plans to install a PR2 test bench for upstream valves
at its Idiazabal facilities. This method exposes the valves
to extreme conditions and temperatures while performing
cycles at different pressure levels of up to 20000 psi,
which helps to ensure the integrity of its solutions and

58 MAIN MILESTONES OF 2019 · Development and innovation

INTERCHANGEABILITY OF BALL/PLUG
VALVES IN REFINERIES AND PETROCHEMICAL
PLANTS:
Our lift plug and switch plug valves have been specifically
designed for the most severe conditions, where heavy crude oils are
subject to high temperatures and coke formation. However, in order
to offer maximum interchangeability of valves in refineries and
petrochemical plants, AMPO POYAM VALVES has implemented a
continuous improvement plan, which covers compliance with the
ASME B.16.10 standard on face to face dimensions.

Consequently, we have the capacity to offer refineries an excellent

interchangeable solution for replacing isolation valves or switch
ball valves for our lift plug valves.

But the interchangeability that we offer is not only based on

compliance with the aforementioned standard. For example,
in 2019 we implemented two projects to adapt our valves for
the Petron Bataan refinery in the Philippines, and another for a
Repsol coker unit.

In the case of the Philippines, our switch valve replaced a critical

metal seated ball valve that distributes heavy hydrocarbon from
one drum to another in the refinery. To do so, we had to change
the control system, adding a high-security robot and defining the
form of writing in the software for the system programmer.

In the case of the Repsol-owned refinery, when it comes to replacing

the valves that are currently being used, the valve action system
will also need to be adapted, to ensure that the new valves are
fully compatible with those that are already installed. This system
will be designed such that our valve will replace the current valve,
using the same control system and the same hydraulic unit.

MAIN MILESTONES OF 2019 · Development and innovation 59

 VALVE OPTIMISATION:
AMPO POYAM VALVES continued its plan to optimise
several of its valves in 2019, with the purpose of
increasing product reliability, as well as contributing to
improving competitiveness. Our clients can benefit from
this competitive edge.

INSTALLATION OF SPECIAL ACTUATORS:

AMPO POYAM VALVES installed several special actuators
for a range of projects throughout the year, including the
electro-hydraulic actuators for the valves used in the Ras
Tanura refinery in Saudi Arabia.

PARTICIPATION IN THE CONFERENCE

ON ADDITIVE MANUFACTURING IN THE
OIL & GAS INDUSTRY:
AMPO is part of the API 20S committee on the control
and development of the supply chain of the additive
manufacturing of metallic parts.

In August we took part in the oil & gas industry’s

conference on the additive manufacturing of metal, which
was held in California and which was led by Conoco
Phillips and Chevron. Some major clients, such as Exxon
Mobil, Shell, Total, Baker & Hughes and BP, to name but a
few, also participated in the event. During the conference,
the additive manufacturing technologies were analysed,
including their application in our sector.

60 MAIN MILESTONES OF 2019 · Development and innovation

 EVENTS
VALVE WORLD AMERICAS EXHIBITION:
AMPO had a stand at the VALVE WORLD AMERICAS
trade fair in Houston (USA), which was held on the 20th-
21st June. This is one of the most specific events in the
industry, and that is why we decided to continue our
participation in this trade fair this year, presenting all our
solutions and services.
REFCOMM GALVESTON, REFCOMM
ROTTERDAM AND REFCOMM MUMBAI
EXHIBITIONS:
In 2018, AMPO POYAM VALVES participated in the
REFCOMM trade fairs for the first time. These fairs are
recognised to be the main global conferences on delayed
coking, fluid catalytic cracking (FCC) and sulphur
recovery.
In 2019, it attended the following:
• Refcomm Galveston in Texas (USA), from 29th
April to 3rd May.
• Refcomm Rotterdam in Rotterdam (the Netherlands),
from 30th September to 3rd October.
• Refcomm Mumbai in Mumbai (India), from 18th to
21st November.
In Mumbai, apart from presenting its range of solutions
for the refinery industry, our AMPO SERVICE Director, Iker
Azurmendi, presented a conference about the reliability
and maintenance recommendations for the plug and switch
valves in the DCU.
PARTICIPATION IN A ROUND TABLE
ON IMPROVING GAS EXTRACTION
PROCESSES IN ORENBURG (RUSSIA):
In March, we took part in a regional event in Orenburg
(Russia), which was aimed at the gas extraction industry.
At a round table organised as part of the trade fair, we had
the opportunity to present our company and our products,
along with our technological and technical capacities.
MAIN MILESTONES OF 2019 · Events 61
 RECOGNITION BY BECHTEL AS TOP
SUPPLIER:
AMPO POYAM VALVES was recognised as top supplier
by the engineering company Bechtel at its annual Supply
Chain awards, and was praised for its exceptional work
on Bechtel’s projects worldwide.

The companies were evaluated based on a number

of factors, such as: overall performance, the capacity
to supply high-quality services and products on time,
the ability to work in collaboration to fulfil the project
milestones, and the ability to meet or exceed the project
expectations as regards safety, performance, technical
capacity and environmental compliance.  The nominations
for these awards were reviewed and approved by
Bechtel’s purchasing and projects directors, with the final
approval from their senior leadership.

The President of AMPO, Jon Gorrotxategi, and the

Director of AMPO POYAM VALVES USA, Iñaki Aizpeolea,
collected the award at a ceremony held in the USA.
AMPO POYAM VALVES has actively collaborated with
Bechtel for over 20 years, supplying highly engineered
valves for first-class projects around the world, such as the
following: Pennsylvania Chemicals Project, Corpus Christi
Liquefaction Project, Sabine Pass Liquefaction Project,
Atlantic LNG, Australian LNG projects, Angola LNG,
Jamnagar Refinery, Al Taweelah Alumina Refinery, etc.
“AMPO POYAM VALVES has been a vital partner to
Bechtel, working with us to achieve outstanding results for
our customers”  said Al Hankins, Corporate Manager of
Procurement and Contracts at Bechtel. “The performance of
key suppliers continues to be critical to delivering superior
service to our customers and advancing innovation for the
industry.”
PARTICIPATION IN THE SAUDI ARAMCO
FORUM “OIL & GAS SUPPLY CHAIN
OPPORTUNITIES IN SAUDI ARABIA”:
AMPO POYAM VALVES took part in the “Oil & Gas
supply chain opportunities in Saudi Arabia” forum in
June, organised by Saudi Aramco and the Basque Energy
Cluster in Bilbao (Basque Country, Spain). Specialists from
Saudi Aramco presented the investment opportunities in
Saudi Arabia at this event, and consequently also their
IKTVA (In Kingdom Total Value Add) programme.
PARTICIPATION IN THE API AND ISO
CONVENTIONS:
In 2019, AMPO took part in the API (American Petroleum
Institute) conventions held in the USA, and also in the
annual meeting of ISO TC 153 held in Montreal, Canada.
The objective of these meetings is usually to develop the API
and ISO standards, as well as promoting networking and
open debates on topics of interest in the industry.
In the case of the API conventions, representatives of the
companies that make products or equipment related to
the oil & gas sector attend these conventions, as well as
engineering firms and end clients. They usually divide
participants into different working groups to discuss the
API standards, and AMPO actively participated in the
“Valves and Piping” group.
Furthermore, in the case of the ISO meetings, we should
point out that our colleague Gorka Rodríguez is in charge
of leading development of the ISO 28921-1 standard.
Consequently, it is worth highlighting that AMPO plays
a part in the preparation of API and ISO standards, and
easily applies them in the development of its valves.

62 MAIN MILESTONES OF 2019 · Events

GLOBAL SALES CONVENTIONS HELD
AT THE IDIAZABAL AND INDIA HEAD
OFFICES.
AMPO currently has an extensive network of delegates
and sales representatives around the world, with presence
in over 62 countries worldwide. In order to analyse the
current year, and mainly to design the commercial
strategy for 2020, the Global Sales Conventions were held
in November both in Idiazabal and in AMPO INDIA.

AMPO POYAM VALVES’ Global Sales Convention was

held in AMPO INDIA in Coimbatore (Tamil Nadu, India),
with delegates from the following geographical areas and
countries in attendance: China, India, USA, UK, Spain,
South-east Asia, Middle East, etc.

For its part, the AMPO FOUNDRY Global Sales

Convention was held the same week, in this case at the
country’s head office in Idiazabal. With participation from
a range of delegates and representatives, they designed
the foundry’s commercial strategy for 2020, also focusing
on strengthening its diversification strategy.
ANNUAL MEETINGS:
On 18th May, the cooperative’s Annual General Meeting
was held in Idiazabal, at which the annual accounts were
submitted and approved.
in the Basque Country, and AMPO was among them. The
recognition award was collected by our President, Jon
Gorrotxategi, at the Euskalduna Conference Centre in
Bilbao, as part of the annual Forokoop event.

On 20th December, an Extraordinary General Meeting

was also held. At this meeting, the Management Plan
(known in the Cooperative as "Ideas and Objectives") for
2020 was presented and approved.
RECOGNITION OF AMPO FOR OVER 50
YEARS IN THE BUSINESS:
In July, the Basque Council of Cooperatives [Consejo
Superior de Cooperativas de Euskadi] awarded recognition
to cooperatives with a professional history of over 50 years
A 10-TONNE VALVE AS A WAY IN TO
THE EXHIBITION “ORAIN DISEINUA.
EUSKADI ETA INDUSTRIA”:
In October, the Tabakalera in Donostia-San Sebastian
inaugurated the exhibition “Orain diseinua. Euskadi eta
Industria”, at which a selection of industrial products were
presented to show the level of design of companies in
the Basque Country. The exhibition can be visited until
February 2020, and at the entrance there is a 10-tonne
valve that was designed and produced by AMPO.

MAIN MILESTONES OF 2019 · Events 63

 RETIREES’ DAY: the technical capacity and other qualities of the (mainly
Basque) professionals with experience abroad, sharing
As is customary every year, AMPO celebrated its Retirees’
current and future information with them, as well as
Day on 3rd October. The main purpose of this special
conveying the opportunities that AMPO offers.
day is to maintain the relationship between the current
members of the cooperative and the retirees. PARTICIPATION IN THE COMPANIES
A total of around 100 retirees came to AMPO to enjoy RACE:
the event. First thing in the morning, the Secretary of the The annual “Companies Race” was held in May in San
Governing Council, Iurgi Larrañaga, and the Managing Sebastián, in which a total of 2400 runners from a wide
Director, Ibon Imaz, informed them of the Cooperative's range of local companies took part. And AMPO was no
current affairs. Among other things, they discussed the exception. Four people from our team proved that they are
current situation in the sector, the 2019 milestones as well ready to compete in the toughest conditions, even running
as the challenges for the future. in the rain.
After this, the retirees had the opportunity to visit AMPO’s
new machining plant and see the investment in new
machinery for themselves, as well as discovering the
complexity of the new parts, the innovative facilities
for welding overlay technologies, etc. In addition, they
were taken to Ormaiztegi to see a leading cooperative:
IRIZAR. As well as seeing how they manufacture coaches
and buses, the company also showed some of its new
products. And to conclude the day, they enjoyed a lovely
meal together at Restaurante Mujika in Liernia.

BE BASQUE TALENT CONFERENCE IN

PARIS:
On 26th October, AMPO once again participated,
alongside other companies and organisations, in the
BBTC (Be Basque Talent Conference), which was held
in Paris to attract talent. This initiative was promoted by
different Basque institutions, and its purpose was to boost
the territory’s human capital, connecting talent with the
relevant companies in each case.

At this event, AMPO had the opportunity to discover

64 MAIN MILESTONES OF 2019 · Events

 Commitment made of steel

AMPO HEADQUARTERS · 20213 IDIAZABAL · GIPUZKOA-SPAIN

www.ampo.com · ampo@ampo.com