“August 7th 2008 marks a very special day for PAL” remarks Geoff Paterson, Managing Director of PAL.

“We are delighted to be able to welcome a new member, PSTS, into the PAL group of companies. “This is a direct result of the success of the former SF Team within PAL who have grown the business so successfully that the logical next step was to allow further expansion of it’s role and activities.”

“Behind every able person there are always other able people so I would like to take this opportunity to thank Tony Evans and his team for their contribution over the past years.”

“I would also like to thank our partners, especially WMV and Hardwood Line, our suppliers and our consultant, Peter Salmon for the part they have played in the success of our business.”

We are looking forward to further growth in both sales volume and machines installed in the coming years and wish the new company every success.”

PSTS Opening

Front row from left to right : Amie Leung, Ada Yung, Deputy General Manager of ATNT, Johnson Lam, Chairman of ATNT, Tony Evans, Vice President & General Manager of PSTS

Back row from left to right : Leo Chan, C K Li, Wilson Yuen, Ronald Yeung, Samuel Poon, Cliff Li, Chris Wong, Tom Ho, Kelvin Cheung, Bill Yeung, Danny Chan, Kelvin Lau, Vice President of PAL, Scott Chan and Ronnie Wong, Deputy Managing Director of PAL

www.palhk.com

Special First Edition

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100 not out! P.2Where they are P.3The power of partnerships P.4 Partner’s succeed in the USA Fasteners Galore ......... P.5New Investment in India P.6PAL Surface Treatment Systems and Kamtress make customers smile in India P.7Second Time Around ......... for PSTS in the piston ring industry! P.8Shining With Yet Another Coin Project ......... P.9Profitable Plating on Plastics with PSTS P.10-11Continental Opens New Manufacturing Plant P.12-13 Connecting the world P.14 Where to see, meet or hear us P.15We were there

Table of contents

100 Not Out!

By Tony Evans, Vice President and General Manager of PSTS

Further cause for celebration⋯.. “ PSTS knocks up it’s first century (excuse the cricketing metaphor!) in the number of machines supplied and installed.

“Yes, we have already reached 104 and we are now planning the next century” explains Tony Evans, Vice President and General Manager of PSTS.

“It’s a remarkable achievement in such a short space of time but we are determined not to rest on our laurels and will be working harder to live up to our slogan of equipping the world.”

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WHERE THEY AREPSTS machine installations around the globe.

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The power of partnerships

By Scott Chan– International Sales Manager of PSTS

“Since last year, success has truly followed success” explains Scott. “Our customers have readily accepted that the partnership offers a winning combination and have appreciated the benefits of being able to source the best technology and quality from one source.”

America’s Region

By Aron Lorenz,President of WMV Inc.

Partner’s succeed in the USAWMV Apparatebau GmbH and PAL Surface Treatment Systems Limited proved to be a winning combination when they supplied a fully integrated phosphate and dip spin tilt zinc flake coating system to a North American manufacturer. The project was managed by WMV Incorporated located in Michigan and PAL Sales located in Connecticut.

The automated system includes:

• HardwoodLinephosphatebarrelswithautomaticdoors.• PALSurfaceTreatmentSystemsLimitedphosphateline.• WMVdipspintiltcoatinglinetoapplytwocoatsofpaint.• RegenerativethermaloxidizertodestroyVOCs.• Curingovens,coolerandchillers.• VentilationandanenclosuretomeetEPAguidelines.WMV and PAL provided all system elements listed above

The system has PC control that includes:

• Partprocessrecipesthatarecoupledtoapart database.

• Systemvisualization.• Production database to meet reporting

requirements.• Process control to direct chemistry

additions based on the production that is being run, temperature control and solution monitoring devices.

• Diagnostic visualization for operators andskilled trades to monitor the entire system.

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By Wilson Yuen, Project Engineer of PSTS

“Our customer is a subsidiary of one of the world’s largest companies with it’s headquarters in Germany and an annual turnover of €7 Billion generated by 54,000 employees. They produce high quality and technically advanced fasteners for the automotive and electronic industries, over 3 Billion every year!

When they invested in a new “State of the Art” manufacturing facility in China, PAL Surface Treatment Systems and WMV were selected to supply a fully integrated Alkaline Zinc Barrelglide Electroplating and DSC Passivation and Sealer line.

The integrated system is highly automated and provides a capacity to produce 500 tonnes in 3 shifts per month to the highest quality and specifications. As well as the Barrelglide and DSC machines, hydrogen embrittlement has also been integrated thus providing fully flexible processing of different types of fasteners.

The Barrelglide Alkaline Zinc Plating Line is in a “U” shaped configuration and incorporates a host of features whilst the WMV DSC Passivate, Top Coat and Seal system includes the latest “gentle handling” technology.

Wilson concludes : “With the high automation of both machines and process chemistry, costs of ownership will be low when compared to other installations in China allowing our customer to compete more effectively in the market.”

For more information, please contact Wilson Yuen at wilsonyuen@palhk.com or 852 2666 2276.

Fasteners Galore ......

South East Asia Region

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South Asia Region

New Investment in India

By S. R. Chandrashekar, M.D. of Kamtress

With it’s hardquarters in Pune and with 6 manufacturing facilities in India, UMA Precision Limited have

over 3 decades of experience in producing machined parts.

When it came to investing in new production equipment for Surface Finishing, the unique winning

combination of the PAL Surface Treatment Systems partners, Kamtress, WMV and Hardwood Line won

the day.

The Barrel Phosphate machine was supplied by Kamtress and it incorporates Hardwood Line Spray

Thru Barrels. The output is 1000kgs per hour utilizing 100 kg barrels with all the advantages of even

phosphate distribution and faster deposition.

After Phosphating, the parts are then coated use TULZ technology from WMV with both Base and Top

Coats applied before baking and cooling.

“These coatings provide superior heat resistance” explains Mr. Rajendra Kankana, the MD and CEO of

UMA. “The reputation and technology of the partners with the lower cost of ownership and production

offered plus UMA’s skilled and dedicated staff is really a winning combination.”

UMA Precisions customers include such famous names as Tata, Carraro, Honeywell, Eaton and Larsen

and Toubro. You can find out more information about their activities at www.umaprecision.com.

For more information about the project, please contact Mr. S.R. Chandrashekar at sr@kamtress.com.

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PAL Surface Treatment Systems and Kamtress make customers smile in India

It has been a very busy year for the team in India and already 2009 is set to continue in the same

manner. A brief description of some of the highlights is a follows:

“Helping to harness the wind”

Hansen Drives, established in Belgium in 1923, has focused on the wind turbine gearbox market since

1979. It has recently established a large manufacturing facility in India to supply Suzlon Energy, one of

the world’s key suppliers of wind tunbine, with gearboxes. Kamtress were chosen to participate in the

supply and installation of a massive non-destructive test line using Nitral Etching to test the gear boxes

after heat treatment.

“Another Plating on Plastics Project”

Founded in 1975, Speculum are located in Delhi and IMT Manesar and have become one of the market

leaders in india, producing high quality plated ABS plastic components to the automotive, sanitaryware

and consumer industries. Kamtress has installed a “U” shaped Cantaglide line with cross transfer to

provide Nickel/Chrome as well as Satin Nickel and MPS plated finishes.

“A stitch in time ....”

You might be wearing clothes which Kamtress helped in producing, Groz-Beckert, with it’s Headquarters

in Germany, was founded in 1852 and have grown to become one of the world’s largest knitting, sewing

and punching needle suppliers.

Already a Kamtress customer, they came back for more when they required a Tempering System.

Kamtress have recent supplied the machine which consists of a Powerglide Transporter and process

tanks manufactured from stainless steel.

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Second time around⋯⋯.. for PSTSin the piston ring industry!

By Bill Yeung– Assistant Project Engineer of PSTS

You may recall that PSTS completed a very successful project for chrome plating piston rings which was

described in previous editions.

Due to this success, a second machine has been ordered and installed for the same customer. Our

project engineer, Bill Yeung, takes up the thread: “To ensure maximum productivity and output, our

customer decided on an automatic ‘Masterglide’ Transporter machine this time. Safety, productivity,

availability and ease of operation were the key issues that the customer wanted improving and the

machine incorporates an impressive list of features.” explains Bill. Here are just a few :

• ‘Masterglide’TransporterswithSTAHLpositioningandflightbaranti-sway.

• Speciallydesignedflightbarsandcontacts.

• Ultrasoniclevelcontrollers.

• Uniquetankandagitationdesign.

• Semi-automatedloadingandunloadingwithSICKsafetylightbeams.

• UniquecontrolsoftwarepackagebasedonPAL’sprovenOSSTsystem.”

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Shining with yet another coin project ..

By Peter Salmon – PSTS consultantThe Royal Australian Mint was originally commissioned to produce Australia’s decimal coinage and was officially opened in 1965. Since that time the Mint has produced over 13 billion circulating coins for both Australia and other nations, and has the capacity to produce over 2 million coins per day, over 6 hundred million coins per year.

In addition to such coins for general circulation, the Royal Australian Mint manufactures a full range of coins for numismatists (people who collect coins). For their range of high quality proof coins, the Mint developed an acid based, pickling process for the metal blanks prior to the coining operation. This process is key to the maintenance of high yields when producing coins for the most discerning of coin collectors. As part of a major refurbishment of the Mint’s facility in Canberra, it was decided that the existing pickling line, which has been in operation since 1990, would be replaced. Accordingly the Mint, as a government organisation, issued a tender for supply of a new line and ultimately in August last year a purchase contract was signed with PAL Surface Treatment Systems for the manufacture, installation and commissioning of a complete new line.

This new pickling line is a totally enclosed, MiniGlide machine capable of producing 10 loads / hour, 8 hours / day, 5 days / week, or 6000 coin blanks / day, with each individual blank being held in a “toast rack” style rack within a basket. It has two MiniGlide transporters, three different acid pickle process stages, two sets of ultrasonic clean tanks, and 4 sets of specially designed “flood and drain” rinse tanks, whereby the rinse water is circulated from counterflowing triple or double rinse tanks positioned below the process line. This system was recommended by PSTS in order to meet the space constraints imposed by the Mint. Conductivity meters are employed to control water flow through the rinse systems to minimize water usage. Extensive use of additional spray rinsing is also incorporated, with spray pressure being variable according to the size of the blank to prevent any possibility of dislodgement of the coin blanks from their toast rack holders.

Earlier this year, Mr. Abdelnabi Hussein, Process Development Manager at the Mint, and Mr. Chris Trinh, Research & Development Manager, visited the PSTS factory in Shenzhen to inspect the machine prior

to shipment. Installation is scheduled for later this year on completion of the renovations in Canberra.

As you can see in the photograph below, PSTS was pleased to host yet another, successful buy off meeting in their newly redecorated Hong Kong office.

From left to right: Chris Wong, Grant Hill, Abdul Hussein, Chris Trinh and Peter Salmon.

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Profitable plating on plastics with PSTS

By Chris Wong – Project Engineer of PSTS

Our customer, one of Europe’s leading suppliers of plating on plastics, has recently purchased and installed a new machine from PAL Surface Treatment Systems.

Chris Wong, the Project Engineer, explains : “Designed to increase the overall capacity of the customer and the size of the parts they can process, it also allows them to meet the latest European Automotive specifications and process new materials. ABS, ABS/PC, PP and PPS can all be plated.”

“The new machine will produce parts for the Sanitaryware, Domestic Appliance, Brewery, Display, Automotive and Electronics Industries. It has been installed in a new, purpose built facility which has ISO9001:2000 and ISO14001 accreditation.”

The customer with the PSTS team at the pre-acceptance visit to the PAL facility

From left to right : Tony Leung, Peter Jackson, Craig Bradlely, Martin Davis, Tony Wall, Chris Wong and Kelvin Cheung.

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“PAL Surface Treatment Systems have incorporated the following features in the new machine:

• 10loadsperhourwithaworkenvelopeof1600mmx1000mmx200mm.

• 6“Powerglide”transporterswithdriptraysandserviceplatforms.

• SiemensPLC+PROFIBUS

• PAL“OSST”operatingandcontrolsoftware.

• Thermalfluidheating.

• Verticalagitationmovementofflightbarsintheplatingprocess.

• Achromeetchregenerationandmaintenancesystem.

• ProvisionforbothMicroporousandSatinNickel.

• EductorAgitation.”

“A key to the projects success was the close working relationship with our customer established by both

PAL Europe and PSTS” concluded Chris.

Plating machine during installation.

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Continental opens new manufacturing plant

By Ronald Yeung– PSTS Senior Engineering Specialist

“PAL Surface Teratment Systems were absolutely delighted to be chosen to provide the Acid Zinc Electroplating Machine, Waste Water Treatment Plant and Pure Water Plant for Continental” writes Ronald Yeung, Technology Specialist with PSTS.

“The Electroplating equipment is designed specifically to meet Continentals exacting demands for maximum quality, productivity, environmental protection, safety and ergonormics. Another key issue was the extremely stringent discharge requirements imposed by the local Changshu Government using Best Available Technology. The following press release, courtesy of Continental, gives more details.”:

Continental Opens New Manufacturing Plant for Hydraulic Brake Systems in Changshu, China

• Calipers and actuation units for the whole market in Asia • Continental’s first worldwide plant covering the complete range of HBS products • Continental is number 1 in the global hydraulic brake systems market • Create strong footprint in China and 1,000 local new jobs

Changshu, China, July 8, 2008. The international automotive supplier Continental AG has opened a newly built production plant for the HBS (Hydraulic Brake Systems) activities of its Chassis & Safety Division in Changshu Southeast Economic Development Zone, China. The new plant, Continental Automotive Systems (Changshu) Co. Ltd., is wholly owned by

Continental AG and produces hydraulic brake systems, in particular front and rear calipers, drum brakes and brake actuation products.

With the total investment of about RMB 600 million, Continental in Changshu is situated on a land space of 73,000 square meters with around 25,000 square meters factory area. As planned, its production capacity will ramp up to 5 million calipers and 2.4 million actuation units by 2011 with a growing workforce of up to 1,000 employees within the next two years. The investment shows the firm commitment of Continental to secure its future in China and creates the strong footprint in China and Asia.

Continental Automative Systems Changshu – Opening

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Heinz Zingel, Executive Vice President of Hydraulic Brake Systems Business Unit & Member of the Chassis & Safety Management Board of Continental AG said: “Changshu is Continental’s first worldwide plant that can provide all of our hydraulic brake products and processes out of one single location and is set up to support new technologies and products for local manufacturing in China, e.g. drum brakes and calipers for emerging markets. Therefore, it has the significant importance for us and our management put great emphasis and tremendous efforts on it. Besides, its product supply covers the whole Asian market, exporting to Japan, Korea and other Asian countries in addition to the growing local market requirements.”

The Electroplating equipment is designed specifically to meet Continentals exacting demands for maximum quality, productivity, environmental protection, safety and ergonomics. Another key issue was the extremely stringent discharge requirements imposed by the local Changshu Government using Best Available Technology.

The Masterglide Acid Zinc Electroplating Line features :

• 7TransporterswithSafetyplatformsanddriptraysandhasanoutputof13.33flightbarsperhourexpandable to 17.1 flight bars at a later date.

• STAHLTransporterPositioningSystem• HarterAirgenexDriers• PAL’sOSSTcontrolsoftware• Automatedprocesschemistryhandlingandlevelcontrol• Oilandmetalicswarfrecovery• Continuousmetalandcontaminationremovalfromthepassivationprocesses.

For more infomraion, please contact Ronald Yeung at ronaldyeung@palhk.com.

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Connecting the world

by Cliff Li, Sales Engineer of PSTS

PAL Surface Treatment Systems has designed, manufactured and installed a unique Barrel Electroplating machine for one of the world’s largest suppliers of interconnect solutions. This $8 Billion global engineering and manufacturing company supplies the military, aerospace, aircraft, medical and consumer markets and is renowned for it’s innovation and quality.

“The customer gave PSTS a difficult challenge in terms of it’s requirements for a large variety of different plating finishes, very precise plated thickness control and small batches of different connectors to be plated at the same time” remarks Cliff. “These challenges were answered by PSTS’s Cantaglide Transporters, OSSTj Win Flexible Control Software and Hardwood Lines patented Paddlewheel and Paddle Tube Plating Barrels.”

“The machine can produce 4 loads per hour and up to 3 different batches per load of Barrel copper, nickel, gold, silver and tin. PSTS and Hardwood Line were able to prove there is always a better way!”

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Where to see, meet or hear usChina

SF China 2008Date : 26 – 28 Nov 2008Venue : Guangzhou Int’l Convention & Exhibition Centre (Pazhou Complex), Phase 2380 Yuejiang Middle Road, Guangzhou, P.R. China.Booth No: 12A 31-34

IndiaIndian Surface Finishing ShowDate 5 –7 February 2009Venue: Bombay Exhibition Centre, Western Express Highway, Goregaon (E) Mumbai, India.Booth No. : F5

We were thereSingapore

Surface Engineering for Industrial Applications 2008 (SEIA2008) Date : 18 – 21 November 2008Venue : Singapore

IranInternational Electroplating ExhibitionDate: 11th Octember 2008Venue : Tehran

USASUR/FIN 2008Date : 16 – 18 Jun 2008Venue : Indianapolis, USA

ChinaSF China 2007Date : 21 – 23 November 2007Venue : Shanghai, China