Astec

Annual Report 2010

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www.heatec.com Hot Oil Heaters Asphalt Tanks CORE products: Polymer Blending Systems Thermal Fluid Heaters Water Heaters Heated Water Tanks Heatec, Inc. Asphalt Group In 2010 Heatec had a record year in sales. Sales of heaters to industrial markets unrelated to asphalt have more than doubled since 2007, now approaching our asphalt market sales. Heatec industrial heaters are used in the oil and gas industry. They are usually very large heaters that dwarf heaters used at HMA plants. For example, in 2010 Heatec built five thermal fluid heaters, each with an output of 36.3 million Btu/hour and a weight of 75,000 pounds. Another one is scheduled for 2011. Two large convection heaters were also built to process crude at oil wells in Angola. Each has an output of 38 million Btu/hour and a weight of 230,000 pounds. At the request of a preferred customer, Heatec also designed and produced a small heater known as a reboiler for use in systems that process natural gas. We did not previously build this type of heater. This newly engineered product is now offered to others in the market. Of special note is a valve profiling system developed by Heatec. It is an automated computer controlled system used as part of the burner controls on large industrial heaters. This system is more reliable and provides more functions than others in the market. Our sales of products for asphalt terminals are strong and continue to grow. We completed a major terminal project for a valued customer and Heatec has secured large orders for additional terminals. Heatec originally developed the Firestorm water heater for the concrete industry. In 2010, a new low profile version for use in the oil and gas industry was created. The new model provides heated water for fracturing oil bores and the low profile makes it easy to fit into a portable system. Industrial Heaters 22 Liquid Asphalt Storage Terminal Astec Industries, Inc. Chattanooga, Tennessee USA

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