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Exciting News in APAC region! Bredero Shaw joins forces with Canusa-CPS ! On May 22, 2014 ShawCor announced that Bredero Shaw had won a contract with a value of approximately US$70 million from BP Exploration (Shah Deniz) Ltd., for and on behalf of the South Caucasus Pipeline Company Ltd. for coating services for the South Caucasus Pipeline Expansion ("SCPX") project. The company also announced a Bredero Shaw contract with a value of approximately US$50 million from Marubeni Sumitomo Consortium for coating services for Line 2 of the South Stream Bredero Shaw Financials Offshore Pipeline. Primary drivers of growth for Bredero Shaw will continue to be stronger project revenues in EMAR from the insulation here coating facility in Orkanger, Norway, production on the South Stream Line 1 project at Leith, Scotland and the South Stream Line 2 and SCPX projects at Ras Al Khaimah, UAE. As the Asia Pacific region completes production of the 2013 mega-projects, Inpex Ichthys and Chevron Wheatstone, the region will continue to provide compelling opportunities, particularly with the emergence of deepwater oil and gas developments that create opportunities for the Company to utilize its operational capability and unique product technologies. Continuing into Q3 2014, Bredero Shaw remains well- positioned to compete for projects on a global scale. It was announced in July that Bredero Shaw Field Joint and Custom Coating together with Canusa-CPS businesses in Asia Pacific would transition into one business. This initiative would enable the combined business to drive profitable growth in the expanding Asian market for field applied and custom coating products and services. Over the week of Aug 11-15, Bredero Shaw and Canusa-CPS (Asia Pacific teams) held an integration workshop. The goals of this workshop were to: Familiarize the combined team with each other’s products, capabilities, and competitive positioning Agree key responsibilities especially regarding geographic and product sales responsibility Propose and further develop a bundled sale value proposition Discuss and agree branding plans, the sales to execution model (which varies significantly between the two divisions), and pricing philosophies. Participants included local team members Peter Tambyah, Pradip Sadarangani, Ernest Gan, Khashaf Amir, Hai Nguyen, Gwen Yip and Komahan Vellayan, in addition to Jim Bronson, Pascal Laferriere, and Mickey Kasemphaibulsuk from Canusa-CPS Division as well as much of the Bredero Shaw Singapore management and functional team and the regional plant managers. Many Bredero and Canusa employees have been involved in this integration plan and have contributed immensely. There is an air of excitement and optimism within the group. We are confident this development will be positive for ShawCor’s success and also for the career development of those involved. Page 2
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