Manufactured Products. Production Facilities. Our Foundry. Environmental Concerns. ISO9001:2008 Certified

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2 Introduction Gear Pump Manufacturing (GPM) is located in Cape Town South Africa with a staff compliment of 150 employees and has specialized in the manufacture and assembly of SAE mounted cast iron pumps and associate components since We control the entire manufacturing process from casting of housings and components in our foundry to the finished product. The only exception in this process is the hardening of our gears which is carried out by a specialist service company. We have solid expertise in: Precision casting Engineering and machining Gear set and thrust plate manufacture Hydraulic pump design and manufacture. Our core activities are: Manufacturing gear pumps, piston pumps, flow dividers, valves and replacement components of exceptional quality with an economic price In-house porting to exact customer requirements Designing and manufacturing hydraulic pumping equipment and valves to customer specifications. We are committed to world-class customer service through: Quick response and delivery times Providing a professional custom-design capability for any customer s special needs Maintaining a comprehensive stock-holding of replacement parts Maintaining a wholly-owned distribution facility on North America Supporting well-stocked distributors in the USA, South America, United Kingdom, Middle East, Africa, Far East Asia and Australia Delivering anywhere else internationally. 2

3 Manufactured Products We manufacture a complete range of Hydraulic pumping equipment: Bearing Gear Pumps Bushing Gear Pumps PTO Bearing Pumps PTO Piston Pumps PTO Dump Pumps Flow Dividers Add-a Pumps Step-Down Pumps Ball and Pneumatic Valves Replacement Components Our replacement components conform to international specifications. They can be used for rebuilding any of our own range of pumps and motors but are also interchangeable with those of ten other brands. Production Facilities Our production facilities are well established and include a professional design facility and a cast iron foundry on the premises, all operating in accordance with ISO 9001:2008 continuous improvement standards and manufacturing to local and international specifications. Our Foundry Commissioned in February 2002, our foundry is located on the same site as our manufacturing facility in Cape Town. Expansion has mirrored that of GPM. Physically, the foundry has been expanded by more than 50% in order to cater for increased volumes. Currently the foundry produces Grey Iron, SG Iron and Compacted Graphite Iron. Superior metallurgical structured CGI material is used in the manufacture of the higher pressure requirements of our Bushing Pump Range. The foundries production is dedicated to the requirements of GPM and has sufficient capacity to handle the expected growth into year Environmental Concerns In the interests of the environment, GPM invested in a swarf pelletizing machine. Consequently, a large portion of the foundry raw material is obtained by pelletizing iron and steel swarf and off-cuts from the manufacturing facility. Bronze castings for the machining of thrust plates are produced in a similar fashion. Reclaimed machining coolants and cutting oils are recycled. This investment also helps contains costs. ISO9001:2008 Certified Our manufacturing facility is ISO9001:2008 certified. The certificate can be viewed on our website here. Gear Pump Manufacturing has been certified to various ISO 9001 standards since

4 Quality Our quality management system makes use of statistical analyses to determine manufacturing process capability. The stability of manufacturing processes is continuously monitored and managed via machine run charts. In line with our technology investment philosophy, we have recently invested in a 3 dimensional co-ordinate measurement machine. This will increase productivity by means of faster first-off measurement as well as enabling expanded statistical sampling checks. Technology Investments Our focus is purely on gear pump and motor assembly, ensuring consistently high-quality products. Our plant modernization program is ongoing. For the past two years we have increased our manufacturing capability and capacity with the latest technological, state of the art, CNC turning, milling, and grinding machinery. Design Service The company manufactures and provides pump design services for customers needing customized solutions. We handle design from specification to final blueprints and will manufacture custom-built pumps from these plans if the customer wishes to place an order of sufficient quantity. Exports Approximately 70% of our production is exported to countries in North and South America, Europe, the Middle East, South East Asia, Africa and Australasia. As a consequence of our reinvestment philosophy and policy, we have been successful in substantially growing our sales and production capacity to meet the demand for our quality product in the market. Pump Assemblies & Testing All assemblies are tested on computerized test stands which have multiple flow, pressure, temperature and speed testing capability. Custom Porting We have porting capabilities to suit the needs of all our customers. Our volumes of pump assemblies have more than quadrupled during the last two years. This necessitated the construction of a new and substantially larger pump assembly area as well as new and upgraded test stands. Inventory Our inventory philosophy remains unchanged and we continue to maintain substantial investments in inventory at our Cape Town factory, at the Gear Pump Manufacturing US Distribution Facility in Nesbit, Mississippi, USA as well as at various distribution centres worldwide. 4

5 Company Information Company Name Contact Person Company Address Gear Pump Manufacturing (Pty) Ltd Stephen Fullaway 15 Moody Avenue Epping Industria , Cape Town South Africa Telephone Number: Fax Number: Contact Address Website Type of Company Shareholding Top Four Market Competitors stephenf@gearpumps.co.za Private Company within a holding company listed on the Johannesburg Stock Exchange (JSE). 100% owned by Hudaco Trading Limited (JSE listed company) Parker, Metaris, Permco, Heavy Motions Competitive Advantage Very high quality Cheaper than goods of comparable quality Short lead times Small batch manufacture Custom manufacture for small batches Own foundry, not dependent on others Agency / Distribution Potential GPM s future growth in the international market would require the appointment of distributorships with companies wishing to invest in stocking of comparably priced quality product, or the appointment of regionally approved agents/representatives of GPM. If business develops, GPM may establish a distribution depot as in the USA For more information, please visit our website at 5