2015
ANNUAL
REPORT
Moving
Together
Annual report | 2015
ᆝWe have an international and close, agile and dynamic organization, which allows us
to adapt to the evolution of the sector and to anticipate its needsᆞ
Alexander Arteche
CEO of the Arteche Group
This year we celebrate our 70th anniversary strengthening our position as an international
company of reference in the electricity sector, thanks to the loyalty and trust that customers
from more than 150 countries have placed in Arteche.
Throughout the year we have grown in markets of enormous potential, such as the United
States, the Middle East, China and India; and despite the difficulties that a country as
important as Brazil faces, we have strengthened our position in South America, a strategic
market that represents, approximately, a quarter of our recruitment.
This is, without doubt, the result of the effort we have put in in recent years, with a
commitment to innovation and development with the aim of the opportunities that the
electricity sector offers. An electricity sector that is in a process of change due to changes
in both regulation and new technological developments, which maintains a growth outlook
in the mid and long term associated with the development of the “Renewable Generation”
worldwide, the development of transport and distribution infrastructures, and the drive toward
intelligent networks.
The innovative drive that distinguishes us does not stop at the development of products and
solutions that are endorsed by the most demanding companies of the sector –such as our
sensor and data processing systems for new intelligent networks–, but rather focuses above
all on moving forward, together with our customers, in finding solutions to their needs and
problems, thanks to an organization which is approachable, agile, dynamic and dedicated.
In this way we have continuously met the objectives laid out in our strategic plan, focusing on
the activities and markets that should imply the basis for our growth. Growth which is both
profitable and sustainable.
And so, after a number of difficult years, 2015 has produced a change in the trend. A change
in trend that results in a clear increase in profitability with a EBITDA that is almost double that
of the previous year and a 10% reduction in our financial debt.
Furthermore, this year we have strengthened our financial position with the incorporation of
the Chilean group Ecomac into Arteche, who share our long-term vision and company values.
Definitively, it has been a positive exercise in which we have met the objectives that we had
proposed and laid the foundations to continue moving forward in fulfilling our strategic plan
to 2018.
Within the framework of the strategic plan, growth of businesses and key markets and the
reduction of debt are the main objectives that we face in 2016, with the necessary caution but
never without hope and confidence.
ᆝOur solid position and a close and committed team allow us to make the most of the
opportunities presented by the sector and find our way back to growthᆞ
José Javier de Arteche
Chairman of the Arteche Group
A confidence based on professionalism, effort and excellence, contributed by all those that
form part of Arteche, the necessary support for the development of our plans that financial
institutions provide us with, and the trust of our customers and suppliers.
1.
2.
3.
4.
5.
STRATEGY AND
PROSPECTS
ORGANIZATION
CUSTOMERS
AND MARKETS
INNOVATION
CORPORATE SOCIAL
RESPONSIBILITY
CONTEXT AND PROSPECT | 7
CONSTANTLY EVOLVING | 13
MOVING TOGETHER | 19
CREATIVE DYNAMISM | 35
SHARED PROGRESS | 43
ECONOMIC SUMMARY 2015 | 9
STRATEGIC ALLIANCES | 14
MILESTONES | 20
ORGANIZATION | 36
SUSTAINABILITY, SECURITY
AND HUMAN RIGHTS | 44
WORLDWIDE | 16
MARKETS AND BUSINESSES | 24
PROJECTS | 37
APPROVALS | 28
DISSEMINATION | 40
AWARDS | 33
SOCIAL ACTION /
COMMUNITY | 45
AWARDS | 46
COMPANY-WORKER
RELATIONS | 47
CONTEXT AND
PROSPECTS
The proximity with our customers, our international growth and our commitment to innovation
are the foundations that underpin Arteche’s value.
The power sector currently has huge potential for growth due to the substantial changes
it faces. The sharp drop in the price of oil, the definitive emergence of communication
technologies that make possible the definitive development of smart grids, regulatory
changes, the progressive increase of consumption, the increasing global awareness on
climate change and the need to protect the environment are streamlining of the evolution of
our sector.
We are, without a doubt, in the renewable energies and efficiency era, which implies enormous
technological challenges but also great opportunities to improve the operational management
of the grids and their maintenance.
The commitments made by the world in the COP21 represent a new momentum in the path to
a more efficient energy system, because the world needs more energy than ever before, and
needs it cleaner and more sustainable, more effectively transported and distributed.
The IEA (International Energy Agency) calculates the investment necessary in the electricity
sector over the next 25 years at 20 billion dollars.
In Arteche we know first-hand the challenges faced by the sector, and the concerns of its
major global players:
›
›
The need to update the electrical infrastructure in search of greater efficiency.
›
The efficient management of the assets of the smart grids through monitoring, sensors
and bigdata.
The massive integration in the electricity network of variable renewable generation (mainly
wind and photovoltaic) ensuring the stability of the system.
In Arteche we face these challenges and the next ones that arise in the future, with
confidence, remaining firm in our MOVING TOGETHER value.
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STRATEGY AND
PROSPECTS
Annual report | 2015
Annual report | 2015
7
1 STRATEGY AND PROSPECTS
1 STRATEGY AND PROSPECTS
ECONOMIC
SUMMARY
The 2015 period has been characterized by an extremely complex economic environment,
especially in Brazil, a highly important market for Arteche and that has suffered the worst and
most prolonged recession since 1990 and one of the deepest in the last four decades.
This situation has significantly affected some of the Power Grid business lines, and has led
to the containment in the contracting of turnkey solutions in Brazil, which, together with the
withdrawal of our wind turbine assembly activity, has led to a fall of 7% in the Group’s trading.
Not even the good overall results of Power Grid and the significant increase of Instrument
Transformer have been able to compensate this fall.
However, Arteche’s trading is maintained, for the fifth year running, above EUR 300 million.
Instrument Transformers, which represents more than half of the Group’s turnover, has had in
2015 its best period in 70 years of history in terms of trading.
2015 remains in the path of turnover growth, with an EBIDTA that almost doubles the
previous period and increases for the second year running. We reduce the debt and improve
the profitability of our business units. We continue, therefore, to fulfill the objectives we set
ourselves to maintain the trust of all organizations and groups we operate with and move
froward together.
䡶 TRADING
(Millions of €)
331.7
317.6
324.7
308
300.8
280.7
232.9
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Annual report | 2015
2009
Annual report | 2015
2010
2011
2012
2013
2014
2015
9
1 STRATEGY AND PROSPECTS
䡶 TRADING BY
BUSINESS UNIT
(Millions of €)
1 STRATEGY AND PROSPECTS
䡶 TRADING BY
MARKETS
(Millions of €)
7%
56%
26.5%
23%
32.5%
34%
21%
Instrument Transformers
Power Grid
North America
Europe/Africa/Middle East
South America
Asia/Pacific
Turnkey Solutions
䡶 EBITDA (Millions of €)
䡶 TOTAL EMPLOYEES
The EBITDA, almost double that of
the preceding year, confirms the
path of growth in 2015.
We have a multicultural, trained and
committed human team.
35.2
31.9
1,957
194 Asia/Pacific
21.4
438 South America
16.5
10.5
639 North America
686 Europe
2011
2012
2013
2014
2015
2015
10
Annual report | 2015
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CONSTANTLY
EVOLVING
↗ A global organization with a
vocation of closeness
Due to our extensive international experience, our work combines the perspective
of the challenges facing the power sector with a deep understanding of local
needs. A position that makes us a partner as active and reliable in any business
opportunity that is raised.
To this end, we have consolidated an organization in four continents. We have
strengthened our structure in North America, our main market that provides one
third of our turnover.
The Power Quality business, centralized in Mexico, has also been strengthened,
a line with a great growth potential in which Arteche has acquired considerable
experience during the last decade.
The knowledge acquired in the past 70 years, in addition to our continuing
evolution in response to the difficulties that arise along the way, allow us to
continue to grow in search of excellence in quality and service.
We are making progress, opening new commercial offices around the world to offer
a better service and a first-hand understanding of the sector’s needs, developing
new activities, always focused on the satisfaction of our customers. We are making
progress because we have the confidence of the entire sector, which allows us to be
more stable when faced with market fluctuations.
Our international vision and vocation of closeness enable us to address the greatest
challenges, and make us a solid organization for the future.
2
ORGANIZATION
Annual report | 2015
Annual report | 2015
13
2 ORGANIZATION
2 ORGANIZATION
Annual report | 2015
Annual report | 2015
STRATEGIC ALLIANCES
䡶 ECOMAC joins the Arteche project
This integration strengthens Arteche’s project in
America and, more specifically, in Chile
At the end of the year, the ECOMAC Group joined the Arteche
project through a capital increase of 14.9%. This capital increase
is the stable and permanent integration of this important Chilean
group in our international industrial project.
ECOMAC is a Chilean family company with more than 50 years of
existence and which shares the values of the ARTECHE project. A
deep mutual knowledge has built up over a year of talks, which has
led to the investment agreement.
The entry of ECOMAC strengthens the Arteche project with a
major increase of capital, and represents a significant drive in Chile,
where we have had a company since 2011. This strategic agreement
contemplates, also, a determined vocation of growth among the
countries that make up Mercosur.
䡶 Arteche sells its share in the joint
subsidiary to Eurogrúas
The activity of the subsidiary did not correspond with
that of the Arteche Group or with its base domain
The Arteche Group sold, at the end of the year, its share in
Eurogrúas-Arteche to its partner in the subsidiary, the company
Eurogrúas 2000.
The subsidiary was dedicated to assembling wind turbines in
Brazil, an activity that is not part of the key competences of the
Arteche Group, in which it wants to focus its efforts.
The sale is, therefore, geared to the continuity of our valuable
partner in the Brazilian wind energy market, in which, as the result
of our collaboration, it has a strong position.
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15
2 ORGANIZATION
2 ORGANIZATION
WORLDWIDE
UNITED
KINGDOM
USA
CHINA
SPAIN
INDIA
UNITED
ARAB
EMIRATES
MEXICO
THAILAND
AUSTRALIA
GROUP COMPANIES
BRAZIL
PARTICIPATING COMPANIES
CORPORATE OFFICES
ARGENTINA
CHILE
USA
SPAIN
Miami
ARTECHE USA
Mungia
SAC ENERGY SOLUTIONS CORPORATION
CHILE
ELECTROTÉCNICA ARTECHE HNOS.
UNITED KINGDOM
ELECTROTÉCNICA ARTECHE SMART GRID
London
ARTECHE CENTRO DE TECNOLOGÍA
MEXICO
Mexico DF
INELAP
BRAZIL
Madrid
SAC
ARGENTINA
Curitiba
Cordoba
ARTECHE EDC
AIT
ARTECHE STK
São Paulo
CHINA
Dalian
UNITED ARAB EMIRATES
ARTECHE DYH
Vitoria-Gasteiz
AUSTRALIA
ARTECHE NISSIN
INDIA
Buenos Aires
ARTECHE ASIA&PACIFIC
ARTECHE MIDDLE EAST JLT
AMYT
ARTECHE ACP
ELMYA ARTECHE
Santiago de Chile
Tepeji del Río
ARTECHE TRANSFORMADORES Y
TECNOLOGÍA
THAILAND
GRUPO ARTECHE
Rochester
Seville
ARTECHE SMARTGRID INDIA PVT
Sydney
ARTECHE SMART DIGITAL OPTIC
MOVING
TOGETHER
↗ We move together, we grow together
In Arteche we have thorough knowledge of the power sector due to
our vision and vocation, and it allows us a glimpse of the challenges
our industry faces and to respond to the ones our customers are
facing.
Thanks to our technological strength we offer the most advanced
equipment and solutions and tailored to the needs of each project,
spearheading the looming electric evolution; an evolution that
thanks to our global implementation we anticipate - discovering
new business opportunities and opportunities for improvement and we make the most of, growing and advancing together with
our customers.
We create, with our equipment and solutions, a distinctive value
proposition tailored to any world market.
Our dynamism and our global and close mentality, puts us in an ideal
position to evolve with the industry and society, to move forward
together with our customers.
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3
CUSTOMERS AND
MARKETS
Annual report | 2015
Annual report | 2015
19
3 CUSTOMERS AND MARKETS
3 CUSTOMERS AND MARKETS
MILESTONES
䡶 Siemens approves Arteche Nissin as supplier for its
GIS substations
䡶 We supply control and protection equipment for our first
substation using IEC-61850 technology in Scotland
We supply the transformers for the Siemens substation operated by
Iberdrola in the heart of Bilbao
This start-up allows us to certify our integrated control and protection
equipment under IEC-61850 standards with Iberdrola in Scotland
Arteche has supplied the central hub in dual
configuration for the GIS Windyhill Substation of Scottish
Power Energy Network (SPEN), located in Scotland, its
first substation in the country under IEC-61850.
Arteche has supplied its state-of-the-art saTECH SCU 131
equipment, its new saTECH SynchroStar GPS, our highprecision clock for electrical substations, as well as the
local operating terminal based on our saTECH HMI.
The start-up of this substation allows SPEN to
validate Arteche’s control and protection equipment
integrated under standard IEC-61850, such as the
new saTECH range, in addition to taking part in other
important projects with the Iberdrola Group and its
international subsidiaries.
The equipment has been adapted to respond to the
specific needs of the project, which demonstrates the
capacity and flexibility of our products to adapt to
different markets.
Arteche Nissin has supplied for the first time the
transformers for a GIS substation to the German
company Siemens, an international benchmark for the
energy sector.
The equipment, which has been already been supplied in
2016, will operate in an underground substation installed
in Alameda Mazarredo, one of the main streets of Bilbao,
where the owner, Iberdrola, has its headquarters.
䡶 Arteche carries out its first Power Quality project
in the Middle East
We supply a capacitor bank adapted to the needs of City Walk in Dubai
The Arteche team has designed a capacitor bank
adapted to the demanding needs of City Walk mall, in
Dubai. Its technical requirements, such as the limited
space available to fit the equipment supplied, made
this project a challenge that the Arteche equipment has
successfully passed.
The equipment was designed for the integrated power
relay to comply with the relay function to control and
monitor the status. This made the independent control
box unnecessary, allowing fitting the equipment in the
limited space available.
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Annual report | 2015
Annual report | 2015
City Walk required a capacitor bank capable of
providing reactive power and controlling the voltage
level of its high power air conditioning. The knowledge,
expertise and experience gained by Arteche in over 10
years executing projects throughout the world have
enabled us to respond to the needs of our clients and
to consolidate ourselves as an international reference in
Power Quality solutions.
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3 CUSTOMERS AND MARKETS
䡶 Our participation in
the construction of the
electrical grid of the
future is increasing
Arteche holds the ground as
the leading supplier of Medium
Voltage supervision equipment,
voltage and current sensors
and PLC couplers for Iberdrola’s
STAR project
Our participation in Iberdrola’s ambitious
STAR project is growing. This project
pursues transforming the energy
distribution system worldwide, which
makes us one of the main suppliers of
the initiative.
3 CUSTOMERS AND MARKETS
䡶 Arteche supplies instrument transformers for a
high voltage continuous current transmission line
measuring over 1,300 km in Canada
The Manitoba Hydro Bipole III Transmission Reliability Project is a complex
management challenge in an extremely demanding market, like the Canadian market
Arteche supplies instrument transformers for a 500 kV
continuous current transmission line in Canada, that will
be over 1,300 km long and will supply - when it comes
into operation in 2018-, 70% of the energy produced in the
province of Manitoba, hydroelectric in origin.
This new transmission line will take renewable energy
to the south of the province and to the United States,
helping to reduce dependency on fossil fuels, and
strengthening the supply of electricity to the area hit by
cold temperatures and customary extreme weather events
such as tornadoes.
To form part of this important project, we have had to
develop new and successful solutions to overcome the
internal arc tests in the transformers.
At present we have supplied electronic
equipment and sensors under demanding
delivery programs, which has allowed us
to reach relevant magnitudes in regard to
the volume of units in operation. More than
17,000 sensors, 16,000 PLC/GLP couplers
and 3,900 supervision and remote control
devices are already in operation, making
the operational management Iberdrola’s
distribution network easier.
Almost 3,000 sensors, 6,000 PLC/GLP
couplers and almost 1,500 supervision and
remote control devices have been supplied,
therefore, in the last financial year.
This is the year in which the most couplers
and supervision and remote control devices
have been supplied to Iberdrola since the
STAR project started in 2010.
Furthermore, during 2015 we have remotely
updated the equipment already installed
on site, without the need for any operator
having to physically go there.
Our intervention and implication in the
STAR Project ratifies our pioneering
character in the smart grid field.
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22
䡶 We earn the trust of Austrian Power Grid, a leading
Austrian distributor
This agreement will allow Arteche to bid for the upcoming contracts the company announces
This year, Arteche has obtained its first order with the
distribution company Austrian Power Grid, to which it
will deliver in October the agreed equipment: mainly
combined transformers.
This agreement will allow Arteche to bid for the
upcoming contracts the distributor announces. To this
end, the factory will pass an audit of the company over
the summer.
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Annual report | 2015
Annual report | 2015
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3 CUSTOMERS AND MARKETS
3 CUSTOMERS AND MARKETS
MARKETS AND BUSINESS
䡶 Arteche China begins to manufacture capacitive
voltage transformers
䡶 Gas Natural Fenosa validates the saTECH platform
under IEC-61850 for substation automation
With this new process, we increase the portfolio manufactured in China
The GIS substation of Sanxenxo, in Pontevedra, with its 23 positions, has been chosen by
GNF to install its first Arteche system under IEC-61850 technology
The start-up of the Sanxenxo substation has allowed Union Fenosa Distribución to validate a new Arteche family of
integrated control and protection equipment under IEC 61850, to become the new standard for substation automation
systems (SAS) for the next 10 years, both in Spain and in its subsidiaries and international projects.
This solution had already been validated the previous year by the CFE, for the automation project of the Lomas Verdes
substation. In this way, the saTECH family under the IEC -61850 standard is asserting itself as a reference solution for the
automation of substations.
2015 has marked
the definitive
start-up of the
Test Block, a
product that
complements
the portfolio
including
equipment aimed
at substation
automation
systems.
The saTECH BCU control equipment,
saTECH HMI Operating System (SLS under
GBF denomination), saTECH CNF (HDC)
Configuration System and saTECH Synchrostar
GPS Synchronization System have been
supplied in this new substation.
During 2015, Arteche China has introduced a capacitive
voltage transformer production line. To do so it has had
to implement the necessary technology and machinery,
in addition to the processes, type testing and certification
according to IEC standards.
This step allows us to open access to the various markets
of Asia and the Pacific, in addition to completing our varied
offer competing with front-line international manufacturers.
䡶 The substation automation systems business has an
estimated market share of 25% in Mexico
After four years of activity, these results mark the definitive consolidation
of the business
Arteche has consolidated its substation automation
systems business in Mexico, where it has achieved a
market share of 25%.
These solutions have Arteche’s broad technology
portfolio to operate and monitor electrical networks
optimally, safely and reliably, such as products of the
saTECH family.
Arteche hopes to repeat this success in other markets
that have great opportunities for this line of business.
All FAT and SAT tests have been carried out,
and the substation has entered into service.
Arteche also has confirmed its participation
in the next IEC-61850 project of UFD that will
be the URDA substation planned for the first
half of 2016, which will consolidate us fully as a
supplier of the new IEC-61850 solutions.
䡶 Arteche supplies relays for the new high-speed
trains that connect Oslo with its airport
Flytoget, the company that operates the new trains, is one of the bestrated in the country
Arteche has supplied relays for Flytoget’s high-speed
trains, that connect Oslo with its airport, located about
50 kilometers from the city center. These new trains will
be in service in early 2018.
The eight trains, each with four carriages, high-speed
OARIS model of the manufacturer CAF, will have Arteche
auxiliary relays for railway applications, which guarantee
high performances and absolute safety. These new
trains are equipped with the latest technical advances
24
in energy saving, respect for the environment, safety
and accessibility.
Flytoget is the company that operates the Airport
Expresse train in the Norwegian capital, a high quality
service characterized by its excellent punctuality and
reliability. It is a company that enjoys great recognition
in the country, with a satisfaction rating from
customers of 97%.
Annual report | 2015
Annual report | 2015
25
3 CUSTOMERS AND MARKETS
䡶 Arteche supplies reclosers to some
of the most important distributors of
South America
3 CUSTOMERS AND MARKETS
䡶 Arteche’s Chinese company enters with a strong
foothold in the Pakistani market
The company has approved 10 voltage and current instrument
transformer models
Arteche’s reclosers allow improving the quality of
service that our customers offer
After an investment of close to 2.5 million Renminbi
(almost €350,000), 10 different models of both voltage
and current transformers have been approved.
Arteche has achieved throughout the year large orders
to supply reclosers to some of the major distributors
of South America, so that they can improve the quality
of the service they offer to the final consumers of the
energy system.
This allows Arteche China to enter with a strong foothold
in the Pakistani market, especially relevant because of
the big investment it will receive over the coming years.
䡶 Framework Agreement with RTE for coupling capacitors
The supplied equipment allows reducing the time of
interruption of power when a fault occurs, as it helps
to solve problems that the grid can have more quickly,
effectively and at a lower cost.
The equipment will be destined to different projects of the French
Electricity Operator
A framework agreement for the next two years has been
closed in 2015 with RTE, the French electricity operator,
for the supply of coupling capacitors up to 100 kV.
䡶 We pass the E.ON Germany audit
This puts Arteche in a superb position to continue
advancing in the French market, a traditionally closed
market, and which reaffirms us as a benchmark for the
power sector.
These devices are already in the final stage of the
approval process with the French operator.
The company has already made a test order
Arteche has successfully completed an audit of E.ON
Germany. A test order will be delivered this year,
made up of several units of High Voltage current
transformers, inductive voltage transformers and
combined transformers.
>
26
When Arteche passes this phase, with the approval by
E.ON of the equipment supplied, it will be a candidate for
the awarding of contracts in the future.
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Annual report | 2015
Annual report | 2015
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3 CUSTOMERS AND MARKETS
3 CUSTOMERS AND MARKETS
APPROVALS
䡶 We extend the range of auxiliary relays certified by
UL for the United States
Bistable, monostable and step relays and contactors are added to the list
of relays that had already been certified by this organization
Several Arteche relays have passed the UL approval
process, a leading independent organization in the
field of safety certificates of products intended for
the North American market.
Arteche has extended the certification that most of
its auxiliary relays already had to the strengthened
bistable relays, to the monostable and bistable
16-contact relays, RUT, step relays and contactors.
These products have been recognized by UL in
accordance to Canadian and US electrical safety
requirements, after having successfully completed
the most demanding tests in the world in terms
of reliability, safety, capacity and behavior in
extreme conditions.
>
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Annual report | 2015
Annual report | 2015
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3 CUSTOMERS AND MARKETS
3 CUSTOMERS AND MARKETS
䡶 We extend the range of transformers certified by UL
and MC for the United States and Canada
䡶 Korean Hydro and Nuclear Power (KHNP) approve
Arteche’s auxiliary relay range
This approval will allow Arteche to maintain its position as a reference in
the North American market
KHNP is responsible for 40% of the country’s electricity supply
Several Medium Voltage transformers were certified
last year by UL, reference approval in electrical
equipment in the United States, which assesses both
technical aspects such as safety of the appliances,
and by MC, the certificate granted by Industry Canada
required for all billing apparatus in that country.
UL, which validates various aspects of the equipment,
such as their flammability or durability, has approved
several Arteche voltage and current transformers, for
both indoor and outdoor use.
30
MC, on its part, has certified both voltage and
current instrument and combined transformers for
outdoor use.
Thanks to these new approvals, Arteche can maintain
its position as a reference in the North American
market, which represents approximately a third of the
Group’s trading.
Annual report | 2015
Arteche’s auxiliary relays have passed the approval
process of Korean Hydro and Nuclear Power (KHNP),
a subsidiary company of KEPCO (Korea Electric Power
Corporation) that operates the main hydroelectric and
nuclear power plants of South Korea.
Arteche’s relays have obtained the “Q class” in
Industrial Quality Rating System developed by Bechtel
Co. Ltd., a standard used as reference by KEPCO for
the rating of critical components.
Annual report | 2015
The relays have successfully passed the most
demanding tests in the world regarding reliability,
safety, capacity and resistance against seismic
phenomena. This rating accredits the use of the
auxiliary relays in nuclear power plants, highly
demanding environments and critical applications
according to the most demanding standards.
KHNP is responsible for 40% of electricity supply for
the Asian country. It currently has more than 9,500
employees and international offices in the USA, France
and Japan.
31
3 CUSTOMERS AND MARKETS
3 CUSTOMERS AND MARKETS
AWARDS
䡶 We continue to be, for yet another year, a
‘Preferred Supplier’ of Siemens, the highest rating
Arteche has obtained a grade of 93, thus overcoming the goal set
We have obtained, for the third year running, the highest
rating given by Siemens, ‘Preferred Supplier’.
It should be noted that, for the first time, Siemens has
not identified any potential point of improvement in
Arteche, only requiring us to maintain the excellent level
of service achieved.
In its report, Siemens highlights the treatment received
by all the people it has contact with in Arteche
and it endorses the concept of proximity as one of
our strengths.
In its comprehensive assessment of Arteche, the always
demanding Siemens has highlighted the evolution
experienced in a year in logistics and quality.
As in recent years, we supply the German company with
more than 60,000 relays a year.
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Annual report | 2015
Annual report | 2015
33
CREATIVE
DYNAMISM
↗ Generator of added value
The firm desire to advance and innovate has been a constant during
Arteche’s 70 years of history. We have always considered our
creative and technological dynamism as a pillar on which to base our
sustainability.
The research and the development of own products, original in their
conception, design, technology and production process is a constant of
our activity that allows us to anticipate market trends.
We actively participate in the development of the Smart Grids, grids that
will configure the electrical systems of tomorrow, providing our expertise
and our equipment and solutions with a high technological component.
We offer products and services designed to enhance the efficiency of the
assets of these grids, and ensure their safety.
In Arteche, we also innovate internally, adapting our Quality, Environment
and Safety systems to respond to what society and our environment asks
us for, and improving our production processes to shorten deadlines and
increase efficiency.
Although the intensity in R&D&i in Arteche has been reduced in 2015, it
represents 2.8% of its turnover exceeding the European average. Because
innovation in all sectors is what allows us to anticipate the demands of
the market.
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4
INNOVATION
Annual report | 2015
Annual report | 2015
35
4 INNOVATION
䡶 We open Technopoli, headquarters of the
Innovation and Development area of North America
ORGANIZATION
䡶 Arteche joins Tecnalia and Ormazabal to promote their
Electrical Laboratories at the international level
This space offers many benefits of a technical and technological nature
for the Innovation and Development area
The agreement will allow promoting Arteche’s international development in the
test field and open doors to electrical certifications
Arteche has signed an agreement with Ormazabal and
Tecnalia, sponsored by the Provincial Council of Bizkaia
and with the presence of Alkargo, in order to promote
their Electrical Laboratories for tests and certification at
the international level.
This agreement will not only strengthen the activity of
these technological services but will also generate in
Bizkaia a pole of excellence at the international level in
electrical capital goods with high technological value.
Arteche’s Ultra High Voltage Laboratory will therefore be
joined by the Laboratories of Ormazabal and Tecnalia,
4 INNOVATION
Our CEO, Alexander Arteche, opened last November the
Business Pavilion 103, the North American Innovation and
Development headquarters.
and that of any other company with headquarters in
Bizkaia that in the future wants to join this project.
The alliance will result in a joint bid at the international
level of the experimental capabilities of the laboratories
and the launch of a certification authority of electrical
tests. This will also propitiate the provision of advanced
technology support and consulting.
This space, Technopoli, the Technology Development
Unit, represents a major connection node between
Arteche and researchers, other companies and the
Mexican academic elite.
Being in Technopoli encompasses many benefits of
a technical-technological nature, such as access to
Specialized Technological Surveillance and Competitive
Intelligence Studies, as well as benefits in the use of
equipment and facilities ranging from 3D printers or NC
machines, to audio and video rooms.
It also promotes the development of various innovation
projects, facilitating the economic support of the State
and Federal Government.
The agreement also provides for the possibility of
developing joint R&D projects and with the nearest
value chain.
PROJECTS
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䡶 Arteche’s productive processes remain at the
forefront thanks to its innovative efforts
Throughout the year, several projects have helped to improve delivery
times and increase the productive capacity more efficiently
Innovation is a constant rooted in the Arteche Group, a
firm desire that refers not only to the development of
new products and solutions with a high technological
component or to the application of the most socially
responsible policies, but that also responds to its
important industrial needs.
Throughout 2015 Arteche has made a major effort to
maintain its production processes in the different plants
of its Business Units at the forefront of the industry.
In this regard, Instrument Transformers has reorganized
its plant in Mungia to improve the times and movements
and improve its manufacturing processes. It has
implemented the capacitive voltage transformer
production line in China and has installed the gasinsulated transformer line for the outdoors in the
Vitoria plant.
36
Annual report | 2015
Annual report | 2015
The Unit’s laboratories have also been equipped with
new ways to increase their testing capacity.
Power Grid, for its part, has carried out a Lean
Production Project in its Mexico and Brazil plants,
following the model of excellence of the factory of
Mungia, thus eliminating waste, making the processes
more efficient and establishing better productivity
and efficiency indicators. It has also increased the
productive capacity of the Mungia plant, to respond
to the growth of demand and the inclusion of
new products.
37
4 INNOVATION
䡶 Arteche advances in the development of a
diagnostic system of insulation of instrument
transformers in real time
䡶 Arteche Nissin adapts the UG range to reach
higher powers
The first two transformers, of up to 100 kVA, have been delivered in Estonia
We receive a big subsidy from the National Council of Science
and Technology CONACYT to culminate this system based on an
internationally patented Arteche technology
The North American R&D team has obtained the
approval of a fund to the amount of USD 715,000 from
the Stimulation to Innovation Program 2015 of CONACYT,
for the development of an innovative system that can
monitor in real time the condition of the insulation of
instrument transformers and other High Voltage assets.
This project positions us as pioneers in the on-line
monitoring market, asset management and prevention of
incidents in power grids.
4 INNOVATION
Arteche Nissin has adapted its UG range for it to reach
a power of 10 kVA, a very high but increasingly required
power in all markets.
This project is based on the technological synergy
between the INELAP and Transformadores y Tecnología
companies, with big Research Centers and Higher
Education Institutions in Mexico, such as the National
Polytechnic Institute, the Autonomous Metropolitan
University and the Center for Engineering and Industrial
Development (CIDESI).
The objective of the project is to develop a smart,
integrating platform open to monitoring, supervision
and predictive maintenance systems of equipment
and systems, which are part of power transport and
distribution grids, to reduce maintenance costs.
Arteche has delivered in Estonia its first two
transformers from the UG range capable of responding
to this power.
At the voltage levels requested, the UGP have a power
four times greater than up to now. There are already
also other orders for this product for other markets,
such as South America, that will be delivered in the
course of this year, which demonstrates the success of
the Arteche Nissin team with this development.
䡶 We adapt our transformers to respond in the most
demanding conditions
䡶 Arteche develops new clamp bases for screwless
relays to fix their wiring
The UT and CA range has been updated to operate at more than
4,000 m.a.s.l.
The railroad sector demands these bases given their smaller size and
their greater reliability
Arteche has developed and delivered some new
transformers capable of operating in the most demanding
service environments, at more than 4,000 m.a.s.l. and in
extreme seismic conditions, in order to comply with the
demands of our customers.
The new clamp bases developed by Arteche do not use
screws to fix their wiring, which make them ideal for use
in critical applications, such as railways, because they are
smaller and more reliable.
38
Instead of the screw, the new bases fix the wiring to the
connector with pressure, which in addition make the wiring
process much faster. These new Arteche bases, developed
in F size, are also compatible with the full range of relays.
Annual report | 2015
It also has adapted a range of voltage transformers to meet
the demands of the markets in which Arteche occupies a
Annual report | 2015
position of reference, to adapt, for example, to the reduction
of loads or to the greater number of secondaries required,
which allows offering different constructive configurations.
Both innovations allow cost savings with respect to the
preceding solutions, since they ensure the continuity of
service in the most complex places in the most unfavorable
circumstances.
39
4 INNOVATION
4 INNOVATION
DISSEMINATION
䡶 Arteche sponsors the 14th International Electric
Equipment Conference
The Conferences promote an international forum in which experts exchange
ideas and discuss progress in the power sector and especially in the smart
grid field
Arteche has sponsored the 14th International Electric
Equipment Conference, an international forum organized
by Tecnalia and held in the Palacio Euskalduna in Bilbao
entitled “Redes eléctricas: tecnología, competitividad,
regulación y nuevos modelos de negocio” (Power
grids: technology, competitiveness, regulation and new
business models).
Mikel Fernández de Gamboa, director of the Power Grid
Business Unit, presented during the session dedicated
to advanced distribution networks the experience and
knowledge of Arteche on the subject, in particular
on a component that is of vital importance for the
deployment of smart grids, the measurement sensors.
䡶 Arteche actively collaborates with the UPV/EHU,
the University of the Basque Country
The University of the Basque Country, and most particularly its Department of
Electrical Engineering, have actively collaborated with Arteche in various events
this year
The identification of Arteche with
educational and institutional agents in the
environments of its plants, is one of its
distinctive traits throughout its history.
This collaboration has been realized,
during 2015, in the Visit Plan designed
with the UPV/EHU by its Department of
Electrical Engineering.
Throughout the year students and
lecturers have come to our facilities, for
example from the “Master on Integration
of renewable energies into the electrical
system”, and seminars have been
given such as the one on “Instrument
Transformers, Design, Manufacturing
and Operation”.
This will strengthen the relationship
with the University at the same time as
promoting the image of Arteche and its
technology among future engineers.
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Annual report | 2015
Annual report | 2015
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SHARED
PROGRESS
↗ A deliberate attitude
Arteche is a project that all of us who form part of the Group share
with our customers, suppliers and the society in which we carry out
our activity, for all of us to progress and evolve.
Our commitment is to move forward together, MOVING TOGETHER.
We believe that the best business strategy is to ensure social
prosperity, and the economic and cultural benefit of the environment
we work in.
Ethics, honesty, solidarity and transparency are the principles that
make up our philosophy and our management model, which govern
all of us in Arteche.
We want to take advantage of the opportunities that are opening
up in the electricity sector to combine our business success with
social progress.
Our commitment to society is firm, and all of us who form
part of Arteche want to participate actively and contribute to
social development.
In Arteche we generate value: value to our customers and value to the
society we are part of.
5
CORPORATE SOCIAL
RESPONSIBILITY
Annual report | 2015
Annual report | 2015
43
5 CORPORATE SOCIAL RESPONSIBILITY
5 CORPORATE SOCIAL RESPONSIBILITY
SUSTAINABILITY, SAFETY AND HUMAN RIGHTS
SOCIAL ACTION / COMMUNITY
䡶 Arteche Instrument Transformers culminates its
integration project of the Quality, Environment and
Safety systems in a single and multi-site one
䡶 Arteche’s companies in Mexico have given over
150 scholarships
TyT and INELAP have given, once again this year, a total of 167 scholarships to
children of workers with the best grades
The project initiated by the Multi-site that encompasses Power Grid and
Arteche México Turnkey Solutions is culminated this way
Arteche Instrument Transformers has worked over the
year in the SIM project (Sistema Integrado Multisede Multi-Site Integrated System), to integrate the Quality,
Environment and Safety systems into a single one that
allows working together in all companies and plants
of the unit.
This same multi-site project had already been carried out
in Power Grid and Arteche México Turnkey Solutions in
previous years, and it was renewed last year.
As many processes as possible are homogenized thanks
to these two systems, guaranteeing uniformity in both
the product delivered to the customers, and in how the
latter are treated, and allow manufacturing a high quality
product safely and in an environmentally friendly way.
This integration represents a recognition of the commitment
and effort of all the people who work in Arteche Power
Grid to encourage a preventive culture and an incentive to
continue working on continuous improvement.
With the aim of supporting the studies of the children
of Arteche workers until their degrees, for them to have
more job opportunities, both TyT and Inelap have once
again this year given grants and school material to the
youngsters with the best grades.
In Arteche Transformadores y Tecnología these grants
have been awarded for over 30 years. The first 20 grants
given initially have risen to the 77 now given to children
whose average is not under 8.40, excellent results
that encourage the management to further promote
these grants.
Eight young people who began receiving Arteche TyT’s
scholarship and who given their average grade did not
lose any grants, have already graduated.
Inelap also helps the children of its workers with
average grades of 8.00 to 10.00. The company offers 90
scholarships consisting of a supply of school material that
appears in the list published by the Department of Public
Education in Mexico, and that are essential for studying
such as pencils or notebooks.
䡶 Arteche passes an audit that confirms the
implementation of ISO 26000 in its management systems
䡶 More than 150 pictures have been presented
to the 1st ArtPhoto Photography Competition
The external audit confirms the commitment of the organization to socially
responsible management
The three categories have received photos from countries such as Cuba,
Mexico, Poland or England
Arteche has been audited by Lloyd’s to analyze the
degree of compliance with the voluntary international
ISO 26000 standard, to assess the integration process
of Social Responsibility practices with the Quality,
Environment and Safety integrated management system.
A total of 166 photos have been presented to the First Photography Competition organized by Arteche. The
participating photographs have shown the everyday use and social impact of electricity on our lives and on the
infrastructures that surround us.
As a result of the audit it has been concluded that
Arteche has implemented “with professionalism and
consistency” actions that demonstrate its commitment
to socially responsible behavior, “a verifiable fact with
concrete evidence”.
1st Arteche Photography Contest
ArtPhoto has proved a success not only due its high level of participation, which has greatly exceeded expectations,
but also due to the technical and artistic quality of the pictures presented, which have come from countries such as
Cuba, Mexico, Spain, Poland or England.
The “Infrastructures and electrical equipment” category has been the most
popular with the participants, accumulating approximately half of the
photographs of the Competition. The winning photograph, Lore, has been
sent by Mikel Goikoetxea (page 41).
The photograph by José Antonio Zurutuza was able to capture like no
other the impact of electricity on society, winning the first prize in the
“Life and electricity” category (page 48).
The photo Testing the optical IT, sent by Andoni Gallastegi (page 36), was
the winner in the “Arteche Products” section.
The authors of these three photographs, which have best captured, in
the jury’s opinion, the use and impact of electricity in each of the three
categories, have won a Go-Pro Hero 4 camera. From Arteche we want to
congratulate them for their magnificent photographs, worthy of the prize;
and thank the rest of contestants for taking part in ArtPhoto.
44
Annual report | 2015
Annual report | 2015
45
5 CORPORATE SOCIAL RESPONSIBILITY
5 CORPORATE SOCIAL RESPONSIBILITY
ACKNOWLEDGMENTS
COMPANY-WORKER RELATIONS
䡶 Arteche TyT obtains for the third year running
the ESR® seal that accredits it as socially
responsible company
䡶 Arteche offers almost 200 training activities to its
team, with over 4,000 courses
A recognition that little more than 1,100 Mexican companies have
In order to contribute to the development of potential of people and
improve the competitiveness of the Group, Arteche detects training
needs and carries out the actions required
Arteche Transformadores y Tecnología has obtained,
for the third year running, the ESR seal of Socially
Responsible Company, a recognition granted annually
by the Mexican Center for Philanthropy (Cemefi) and the
Alliance for Corporate Social Responsibility (AliaRSE),
that certifies quality of life in the company, its business
ethics and connection with the community it is based in
and its care and preservation of the environment.
In line with the Group’s policy to promote the
development of its team, Arteche has offered a total of
199 different training actions throughout 2015, actions
that have had over 4,075 assistances, 10% more than the
previous year.
Arteche TyT, with headquarters in the state of Hidalgo,
Mexico, is one of the estimated 1,100 Mexican companies
to be recognized with the ESR distinctive seal, that
demonstrates the Group’s firm commitment to acting
with responsibility and honesty, contributing to the
wellbeing and economic and social progress of the
environment it acts in.
46
Cemefi and AliaRSE recognize the efforts of Arteche
TyT to voluntarily and publicly assume the commitment
of implementing a socially responsible and continuous
improvement management as part of its business culture
and strategy.
The awards ceremony of the ESR Seal will be held in the
framework of the 9th Latin American Meeting of Socially
Responsible Businesses from 2 to 5 May in the WTC
Mexico City.
For these practical initiatives that enhance the personal
and professional development of our team to acquire
an increasingly more important role in the management
of the organization, almost half of the training actions
have been related to the SHEQ comprehensive Safety,
Environment and Quality management system.
Other training on different professional aspects, on
languages or software, has also been offered.
These training actions, which in 2015 around 300 people
have attended more than in the previous years, and the
balance of which is very positive for the organization,
allow us to continue to improve both as an organization
and at the individual level, in order to be able to continue
offer the greatest added value to our customers and to
the environment in which we operate.
This involvement demonstrates the commitment of
the Arteche Group to Corporate Social Responsibility,
without forgetting other areas of our business.
Annual report | 2015
Annual report | 2015
47
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Annual report | 2015
Informe anual | 2015
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