A Dedication to Excelllence Guides This Canadian Company's Success
Cover Story
Friday, 15 September 2006
smc By focusing on the individual, the Eppich brothers have built The Ebco Group from a small tool-and-die shop to a large, multifaceted organization.
By focusing on the individual, the Eppich brothers have built The Ebco Group from a small tool-and-die shop to a large, multifaceted organization.
There are number of North American companies whose founders were immigrants who came to a new country to start a new life. They may have wanted to carry on family traditions or forge a new way of making a living in a new country. What makes Hugo and Helmut Eppich's story unique is that these twin brothers were able to grow their business and lives in Canada by maintaining a dedication to the individual. The twins explain they believe a focus on the individual can lead to corporate excellence.

By using core values to guide their quest for excellence, the brothers have achieved 50 years of success in manufacturing. Their company today enjoys a leading position in the world of high-tech manufacturing of large precision equipment and commercial cyclotrons, combined with metal finishing and hot-dip galvanizing services. It also has developed a roster of employees who value excellence as much as they do. Ebco's corporate value system, developed by Helmut, has played a significant role in the success of the company.

R.A. Young, director of the environmental test lab for Boeing Aerospace Electronics – one of Ebco's early customers – views the value system as an oddity, but it's one of the reasons he enjoyed doing business with the company. "They are gentlemen with high integrity who take pride in their workmanship," he says. "They are people of their word, from top management down."

The Eppich twins were born in 1933 in a German-speaking town in the former Yugoslavia. Conditions in the area were difficult, so in 1938, the Eppich family moved to Germany. However, the family's situation became worse with the outbreak of World War II – their father was killed in an accident, so their mother had to raise them and their two older brothers on her own.

By 1953, Helmut and Hugo were ready for a new life. That year, their uncle Willi, a resident of Kitchener, Ontario, Canada, sponsored Helmut to immigrate into the country as a tool-and-die maker. Because of quota restrictions, Hugo, an electrician and electroplater, had to wait six months to join his brother in Canada.

Three years later, in 1956, having saved a few thousand dollars, Helmut and Hugo decided to go on a trip to see more of Canada and the United States. It was at that time that fate stepped in and took a hand in their destiny. While working on a lathe to make a little money, Helmut was the victim of a freak accident that seriously injured his eye. The brothers decided to stay in Vancouver while Helmut recuperated and the brothers sought business opportunities in British Columbia, rather than in Ontario as originally planned.

Originally, three business opportunities were considered: plating, bumper exchange for cars, and tool and die. The last option was most feasible, and a tool-and-die shop was set up in Vancouver.

The early days of Ebco found Helmut working in a 450-square-foot shop in Vancouver and Hugo helping at night and on the weekends. Their first job produced $4.35, and sales in the first three months were $900. Although money was tight, the twins generated $10,000 in sales in their first year. By 1959, Hugo had joined the operation full time and they grew by starting a plating business. It wasn't until much later, however, that the Eppich brothers paid themselves actual salaries and took their first vacations.

Through the years, Ebco continued to grow and diversify; many employees who joined the operation in its early days maintained loyalty to the company for many years. The firm's business eventually covered a number of markets, including heavy metal fabrication and machining, light metal fabrication, tool and die, electroplating, metal finishing, hot-dip galvanizing, furniture, automotive hardware, computer data collection systems and aerospace parts.

Some of the firm's major successes through the early years included constructing a 16-foot-diameter Robbins tunnel-boring machine as well as the TRIUMF cyclotron.

The $1.2 million, 90-foot long tunnel borer was used to bore the maintenance tunnel under the English Channel from France to England.

Ebco's capabilities also were chosen to build a vacuum chamber and resonators for the cyclotron at TRIUMF (TRI-University Meson Facility), the Canadian Laboratory for Sub Atomic Physics. This project demanded highly skilled assembly capabilities and expert steel forming and plating, which are part of Ebco's expertise. The cyclotron is used for sub-atomic research – when Ebco won the contract, its senior managers went to Sweden, Germany, Switzerland and the United States to seek out the most advanced manufacturing, welding and plating technologies. However, not finding any of the above, Ebco had to develop its own.

The company explains this was the first major job it received after moving into its Richmond, British Columbia, headquarters in 1969. The Eppich brothers were unsure at first whether the firm could handle this highly complex job; however, it completed it on schedule and below cost estimates.

To tackle the cyclotron project, "we had to train 16 welders on stainless steel, and 16 more on aluminum," recalls Helmut Eppich. "And this was a challenge in 1969, when there were no welding procedures in existence for either 316-stainless steel or 6061-T6 aluminum. We had to develop our own. “This raised our capability to such a level that we were able to bid on similar work in many other markets."

Winning the cyclotron project led to many other successes for Ebco, Hugo Eppich says. "This really put our name before the world at large." Ebco was soon receiving contracts from airplane manufacturers Boeing and DeHavilland, as well as Raytheon, a world leader in developing defense technologies and converting them for use in commercial markets.

In 1965, Ebco embarked on a new venture, Epic Data. As Helmut Eppich explains, he wanted to create a computer data-collection system for Ebco's own use, one that would track each worker's time at various jobs. Electronically naïve, Helmut didn't quite know what a transformer was, so he sought help from John McDonald (then a professor at the University of B.C. and later a partner in McDonald Dettwiler, an aerospace company). Persevering, Helmut eventually designed a system that served Ebco well until Epic Data was sold in 1996.

During its 50-year history in British Columbia, the Ebco Group has pioneered four high-tech sectors computer data-collection systems, aerospace, commercial cyclotrons and large precision equipment, a mainstay of Ebco Industries Ltd.

High-tech companies such as Epic Data Inc., Ebco Aerospace, Ebco-Hamilton Partners and Advanced Cyclotron Systems Inc. were spin-offs from Ebco Industries Ltd. In 1990, the Ebco Group was comprised of 15 companies generating $104 million in sales, with 1,150 employees originating from more than 48 countries. Ebco-Hamilton – the original company that ran Vancouver's many Aircare facilities – and Ebco Aerospace were later sold in 2002. Start-up funding that ran into millions for these high-tech companies was provided by Ebco Industries Ltd., Ebco Metal Finishing Ltd., and the EIF Group.

Diversification is another key to the company's achievements. Hugo Eppich notes that Keystone – a leading distributor of high-performance automotive parts – and EIF Sales Ltd. played significant roles in the history of the Ebco Group.

Today, Ebco Metal Finishing Ltd., run by Hugo, provides industrial finishes like hard chrome, electroless nickel, chromate conversion coating, passivating and parkerizing.

In addition, electroplating finishes such as bright nickel chrome, nickel, brass, copper, antique and zinc used for the decorative industry are a significant part of the business.

Ebco Metal Finishing Ltd. has the largest hot-dip galvanizing plant in western Canada. Parts galvanized at Ebco have gone into retrofitting the Port Mann Bridge, the Massey Tunnel seismic upgrade, transmission towers for B.C. Hydro, light standards and other items for numerous municipalities; and steel fish pens for the aquaculture industry in British Columbia, Washington state and Australia. Closer to home, Helmut's cyclotron parts are plated in Hugo's plating shops.

Manufacturing Diversity
As it has acquired and sold a number of companies through the years, Ebco Industries Ltd. has grown to operate one of the largest custom-manufacturing facilities in western Canada. Ebco's current capabilities offer a one-stop shop for customer requirements, including heavy metal fabrication, heavy machining, assembly and light precision machining and fabrication. As an ISO 9001:2000 manufacturer of equipment, machinery and components, EBCO services the petrochemical, mining, power generation, hydroelectric, pulp and paper, nuclear, aerospace and defense and health science industries.

The Ebco Group is located in Richmond, British Columbia, on two locations totaling 21-acres on the banks of the Fraser River, near Vancouver International Airport. Ebco Industries Ltd. is served by Canadian Pacific Rail, with an in-plant rail spur connection to Burlington Northern Santa Fe, Canadian National and Canadian National Rail networks.

The company notes that extremely large, ultra-heavy or excessively over-width components can be loaded on barges directly onto the Fraser River from the back of its plant.

The company's plant consists of 240,000 square feet of shop and office space. Its capabilities include heavy fabrication of components (single pieces can go up to 200 tons), expert welding in all steels and alloys, precision machining from palm-size components to extremely large pieces of machinery, sheet metal work, light metal stamping and tubular fabrication, as well as mechanical, electrical and hydraulic assembly of small to large turnkey projects for fully working machines and equipment. Ebco is also an ASME-certified shop with its quality assurance program meeting ISO 9001 requirements and its precision CNC machining capabilities meeting international aerospace and defense standards.

“Ebco is continually looking to improve by measuring itself against some of the world’s most recognized standards,” notes Paul Digby, Ebco's quality assurance manager. “We have adopted many continual improvement programs and best practices from programs such as lean manufacturing and Six Sigma, to name a few, as well as developing our own internal checks and balances.”

The company's heavy fabrication division, Ebco says, has a reputation for its ability to provide large-scale manufacturing services to primary and secondary industries. This division excels in meeting a variety of demanding customer requirements in manufacturing custom and prototype equipment, the firm says, as well as repairing and refurbishing existing equipment.

Ebco's Director of Sales and Marketing Darren Wager explains that "to provide a perspective of the cross section of projects and market sectors that the heavy fabricating division undertakes on a typical daily basis, we currently are working on products for oil and gas drilling rigs; plasma furnaces for high-grade aluminum and titanium production; hyperbaric chambers for the treatment of injuries on both human and animal subjects; frame rails for semi-articulated truck chassis; refurbishment of hydroelectric generating equipment; precision oil processing swivels for remote offshore oil and gas production installations; bleach washer drums and vats for the pulp and paper industry; grinding mill shells for the mining and cement industries; pumps for down-hole oil drilling with a rating of 7,500 psi; components for the military and defense industries; and laundry carts for both hospitals and institutional laundry facilities. The list by no means ends there."

Ebco's heavy machining division has the capabilities to produce precision-made, high-quality products, from nuclear shield valves to components used in worldwide military applications, as well as tightly toleranced oil- and gas-related products. Vertical turning capacity is available for items up to 32 feet in diameter and 100 tons in weight. The horizontal floor mills are capable of machining individual components as large as 14 feet high by 36 feet long in one setup.

Sandro Del Fabbro, director of operations, says, "Adding to our conventional equipment, the heavy machining division has recently installed and commissioned two very large state-of-the-art, four-axis CNC machines, which will enable Ebco to increase both volume and efficiency throughput in the shop."

Ebco's Light Metal Fabrication division has several brand-new five-and-four CNC machines to handle machining requirements on extremely tight tolerances, and complex and repetitive components to a maximum part size of 4 feet wide by 8 feet long. The company also notes that in both divisions, conventional milling, turning and drilling requirements are met by more than 20 separate machine work centers.

Ebco's mechanical assembly division also provides extensive mechanical and hydraulic assembly and testing. The company has built, assembled and tested numerous rock and aggregate crushing machines, tunnel-boring machines with diameters up to 28 feet, and the first Canadian-built Demag H-185 hydraulic mining shovels, which were an overwhelming achievement as a turnkey project.

"It was unbelievably exciting to see the shovels progress from flat steel plates to individual components and then into five fully assembled working mining shovels that were operationally tested here in our shop," says John Blair, Ebco's chief estimator, whom Hugo and Helmut believe has been "the pillar of the estimating department for more than 35 years."

Wager explains that "when it comes to manufacturing, Ebco has positioned itself as a strong player in all market sectors. Many companies have specialized in one or two market sectors and have become very successful, but with Ebco, we have always had the philosophy, belief and determination that we could compete in every market sector we are involved in.

“When Ebco was developing and growing in the early days, Helmut and Hugo led the company with an attitude of 'yes’ we can,' and to this day that has been and continues to be the backbone of our success,” he adds. “The current market cycle, with the exceptional boom in the petrochemical, mining and power generation sectors, is leading to increased levels of work, such that many of our large CNC machines are already booked out for the next two to three years. As well, our fabrication division is excelling with a very heavy and healthy backlog.

"Ebco is truly unique when it comes to its experience in manufacturing. We have a core of personnel that has been with Ebco for many years and have worked on projects from almost every industry market sector where manufactured products are required. “This alone separates Ebco's tradesmen and support staff from others, as we can confidently undertake any project with the knowledge and comfort that our employees already have the requisite skills, with the end result being a guaranteed first -class product."

Wager predicts "Ebco is positioned to continue to be a major player for many years to come, and with the future demand for oil and gas, the demand for natural minerals from British Columbia's bountiful resources for steel and copper production and the reoccurring cycle of refurbishment for numerous older hydroelectric dam s, to name a few, the future for this manufacturing company is most definitely bright."

Success With Cyclotrons Ebco's core business is in heavy industry, but it also is finding success in other fields. Having successfully constructed the 500 mega electron-volt (MeV) cyclotron for TRIUMF, Ebco continued to do business with TRIUMF, producing small parts for the facility.

However in 1989, the two firms struck a major technological transfer agreement. This allowed Ebco to commercialize the scientific and technological advances of the TRIUMF cyclotron, which resulted in the creation of a family of Ebco TR cyclotrons.

Starting in 1990, with the TR30 cyclotron for Nordion in Vancouver, Ebco began to sell cyclotrons worldwide to countries like South Korea, Taiwan, China, Italy, Thailand, United States and Canada. Later, in 2003, Ebco formed Advanced Cyclotron Systems Inc. (ACSI) as a separate entity dedicated solely to the production of cyclotron systems. Advanced Cyclotron Systems is now one of the leading manufacturers of commercial cyclotron technology for the international biomedical community.

The company's TR cyclotrons are used in the production of radioisotopes, which are used for PET (positron-emission-tomography) and SPECT (single photon emission computed tomography) imaging and biomedical research.

Through its team of technicians, physicists, chemists and engineers, the company designs, builds and installs state-of-the-art 14 MeV, 19 MeV and 30 MeV TR cyclotron systems. Manufacturing the TR30, a 110-ton cyclotron, requires material and parts from 400 suppliers worldwide, including 160 in Canada. The cyclotrons are rated the most powerful, efficient and productive in the world.

ACSI cyclotrons have a life span of 30 years and more have been designed to provide industrial-quality operations around the clock and still undergo modifications to meet market requirements. The Nordion cyclotron, built in 1989, is still in use today, ACSI notes.

The company works closely with its customers to prepare and review their cyclotron system requirements; its services include site preparation, project scheduling, radiation protection, licensing and helping clients meet other logistical requirements. To ensure proper training to run the cyclotron, customers' staffs are trained at the ACSI facility and at the location of the cyclotron. The company also offers maintenance and support of the systems once the cyclotron is installed and commissioned.

ACSI regularly updates its cyclotron systems and services to keep up with the rapid change in the radioisotope and pharmaceutical markets. The company has recently been supporting its new customers by providing ACSI staff to operate their cyclotrons until they are ready to do it themselves. TR cyclotrons, the firm explains, are negative ion cyclotrons designed for rapid, reliable and high-yielding production of radioisotopes for the biomedical industry. The company notes one of the essential features of the TR cyclotron system is its ability to adapt and be upgraded onsite as the needs of the customer and industry change.

Medical Imaging
There is a growing need for regional distribution centers for both PET and SPECT applications, the company says. In addition to its current offerings, ACSI has under development new cyclotrons, production targets and processing systems specific to these regional medical centers.

Unlike CT scans (a type of X-ray) or MRI (magnetic resonance imaging), which display the anatomy of the body, PET makes metabolic activity visible, using short-lived radioactive substances, called radiotracers, injected into the body.

PET has become an invaluable tool in oncology, often leading to more accurate cancer diagnoses, the detection of recurrent diseases and better assessment of how patients respond to treatment. ASCI explains that a 2006 report estimates 2.7 million PET scans will take place worldwide this year, up from 2 million scans in 2005. PET scan use is expected to grow by 30 percent a year.

Individual Excellence
With such a diverse operation, Ebco is known by many customers and throughout many industries for its dedication to excellence in its operations. But many believe the company's success is due to the Eppich brothers' focus on placing value on the person. The brothers have implemented a number of programs to encourage a friendly, family atmosphere throughout the company and stress through their leadership that individual excellence is just as important as corporate excellence.

In honor of their strong leadership style, Hugo and Helmut Eppich received the 2006 British Columbia Export Excellence Award for Leadership. This award recognizes the Eppich twins for championing the cause of exporting and demonstrates the public recognition by their peers as strong leaders in promoting exporting in British Columbia. The award highlights their innovative tactics, which "motivate and inspire others" and have led to the "betterment of people and the industry," the awards selection committee explains.

The Eppich brothers believe they won the award because of their innovative spirit, vision and willingness to risk millions of dollars to pioneer four industries in British Columbia, starting in 1956. This not only created new export markets, it also generated spin-off companies that created hundreds of other jobs in the province.

To ensure continued excellence, growth and success, Helmut and Hugo Eppich defined four values that have guided their business. The first, the brothers explain, is the "value of diversification and growth,” which has enabled Ebco to survive in a fast-changing world. This value, they say, has guided the company's expansion and will continue to do so.

To be successful, however, acquisitions and new ventures must be dedicated to the "value of perfection," the twins believe. In maintaining this value, Ebco has established a goal of "unceasingly striving for and finally achieving excellence" in all its endeavors. The brothers explain that the successful long-term implementation of improvements, with maximum employee participation, is significant in keeping the company competitive. "We will continue to recognize and honor outstanding achievements such as these, whether by an individual or by a whole business unit, through the system of awards and trophies," the brothers said in a statement. "This is based on our company's value codes, which have been designed to improve overall corporate performance. As we adhere to the code of excellence, we will reap its reward and experience the value of prosperity for all."

‘Value of the Person’
Although perfection, diversification, growth and prosperity are important, the Eppich brothers stress "the value of the person" is the cornerstone of Ebco's corporate culture. They explain that the concept of the "Ebco family" was based on the idea that people who work together should also share a wide range of social activities. Ebco says this concept is demonstrated by active employee participation in the company's diverse social and community events, as well as the implementation of the firm's code of respect for the individual.

"We can all be justifiably proud of our record of providing state-of-the-art programs designed to help us grow both personally and professionally, from the value of the person to values of perfection and excellence," the brothers say.

Describing Ebco as a "multicultural, multi-skilled mini-conglomerate," the Eppichs say they are proud that their company's philosophy considers people to be its most important asset. They believe Ebco will continue to succeed in its ventures because the company practices its values and believes deeply in them.

Joe Da Silva, Ebco's director of corporate communications, who has worked closely with the brothers for 30 years, notes that the Eppichs regard their company's philosophy so highly that they asked him to come up with a 20-page company newsletter that documented the history of Ebco's corporate values in action since the start of the company in 1956.

The Eppich brothers believe that if future generations of Ebco employees and the Eppich family continue to keep up this proven philosophy, then the company will be in a good position to grow another 50 years and more.
 
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