Property Risk Analysis Report - eValidatefaurecia.evalidate.com/upload/audit/3298_Allianz-Puebla Nave 4...Property Risk Analysis Report Format Version 15/05/2015 Allianz Risk Consultants

Property Risk Analysis Report

Format Version 15/05/2015

Allianz Risk Consultants

Account : FAURECIA

Location Long Name : PUEBLA NAVE 4

Legal Entity : FAURECIA SISTEMAS AUTOMOTRICES DE MEXICO

Business Group : FIS

Address : Circuito Esteban de Antuñano No.30, Parque Ind. Textil,

Huejotzingo, Puebla, México, CP. 74160

Short Name/ID number : MEX0739/260513

Date of Survey : July 7th, 2015

Consultant : Jesús DĺAZ

Reviewed By : Damien LIEBART / Jean-Pierre BERSON

The information contained herein is not meant to imply that every possible hazard has been identified, or that no other hazards exist. The Allianz Group Network specifically disclaims any warranty or representation that compliance with any advice contained herein will make any premises or operations safe or comply with any health standards, law, rule or regulation. Nothing contained herein shall be construed as indicating the existence or availability of coverage under any policy for any property or type of loss or damage. Any interpretation of data contained herein should be made by Allianz Group Network staff.

Life safety considerations are not included in this report.

FAURECIA

Nave 4 New Faurecia Interior Systems Accessories Plt.

MEX0739/260513

July 7th, 2015 Page 2 of 32


Table of Contents

1 GENERAL ....................................................................................................................... 3 1.1 Type of Survey ..................................................................................................................... 3 1.2 Participants .......................................................................................................................... 3 1.3 Distribution ........................................................................................................................... 3

2 OVERALL RISK RATING ................................................................................................ 4 2.1 Project Follow up ................................................................................................................. 5 2.2 Fire Protection Impairments ................................................................................................ 5

3 RECOMMENDATIONS ................................................................................................... 6 3.1 Completed Risk Improvement Proposals ............................................................................ 6 3.2 Management Programme Proposals ................................................................................... 7 3.3 Physical Risk Improvement Proposals .............................................................................. 11

4 OCCUPANCY ............................................................................................................... 13

5 HAZARDS ..................................................................................................................... 14

6 EXPOSURES ............................................................................................................... 18

7 CONSTRUCTION & LAYOUT ....................................................................................... 18

8 PROTECTION .............................................................................................................. 19

9 MANAGEMENT PROGRAMS ....................................................................................... 21

10 PERILS OTHER THAN FIRE ........................................................................................ 22

11 BUSINESS INTERRUPTION ........................................................................................ 23

12 LOSS HISTORY ........................................................................................................... 23

13 LOSS ESTIMATION ..................................................................................................... 24 13.1 Reported Values ................................................................................................................ 24 13.2 Estimated Maximum Loss (EML) ....................................................................................... 24 13.3 Maximum Foreseeable Loss (MFL) ................................................................................... 25

14 APPENDICE ................................................................................................................. 26

RISK EVALUATION ............................................................................................................. 27

PHOTOS AND ATTACHMENTS .......................................................................................... 30

FAURECIA


MEX0739/260513



1 GENERAL

1.1 Type of Survey

Resurvey for property insurance purposes.

Time on site was one day

1.2 Participants

Cesar Hernandez HSE Manager [email protected]

Sergio Morales Maintenance coordinator [email protected]

Carlos Narvaez Security [email protected]

Oscar Rojas Materials [email protected]

Elodie Dunant Group Loss Control [email protected]

Jean-Pierre Berson Property Account Engineer ARC France

[email protected]

1.3 Distribution

Mr. Michel JOSSET Faurecia 1 e-copy

Mrs. Elodie DUNAND Faurecia 1 e-copy

Mrs. Marie-Catherine BUFFLER Faurecia 1 e-copy

Mr. Alexandre MILOCHEVITCH Cabinet Besse 1 e-copy

Mr. Eric BLUM Cabinet Besse 1 e-copy

Mr. Evris MODINOS AGCS SE 1 e-copy

Mr. Jean Pierre BERSON ARC France – Account Engineer 1 e-copy

Mr. Damien LIEBART ARC France – Deputy Account Engineer 1 e-copy

Mr. Jesús DĺAZ CE ARC 1 e-copy

mailto:[email protected]






FAURECIA


MEX0739/260513



2 OVERALL RISK RATING

Occupancy: AOC1 Code: 3611 Manufacture of Plastic Articles (Injection, Extrusion, Moulding) Risk Class: 3 Great Number: 23622493 Staff: 800 employees Land surface: 40,000 m² Total floor area: 11,736 m² Floor area with sprinkler protection: 11,736 m² Floor area with adequate sprinkler protection: 7,000 m² Floor area to be protected by sprinkler: 100 m² (platforms) Number of in-rack sprinkler to be installed: 0 Sprinkler source to be installed/ upgraded: Yes Business continuity plan: Yes Building expansion or sprinkler project: No

EML PD EML BI MFL PD MFL BI

% 70% 50% 100% 100%

HPR Risk Evaluation

HPR PRE-HPR TO BE

IMPROVED POOR

Comments: Typical construction is non-combustible. The main building is provided with

automatic sprinkler protection at all areas, but is inadequate in storage areas. Water supply

has been commissioned during this survey and minor issued were identified, the system

now is working in automatic. A fire alarm system is also provided. Full sprinkler

commissioning will be conducted in the next weeks once sprinklers over storage areas are

retrofitted.

This facility cannot be considered a HPR Risk until the sprinkler systems are reliable and

commissioned, furthermore, most of loss prevention and control management programs are

properly developed and implemented, however, some recommendations have been issued

to meet EMC and are necessary to complete to reach HPR level.

The Risk Evaluation spreadsheet was reviewed, discussed and updated with the Local

Management. The Risk is evaluated as “EMC to Be Improved” with a total score of 12

points.

Recommendations to be completed to reach HPR rating are:

- 13-03 :Inspection, testing and maintenance for fire protection equipment

- 15-01 : Emergency response procedures

- 15-02 : Reduce storage heights

- 15-03 : Rack storage storage aisles

- 15-05 : Outdoor storage

- 13-05 : Automatic sprinkler protection for material’s office and below obstructions

- 15-07 : Retrofit sprinkler system # 4

FAURECIA


MEX0739/260513



2.1 Project Follow up

All projects such as building expansion or revamp, installation or revamping of fixed fire protection systems, utilities (boiler, transformers, etc.) should be submitted to ARC France or ARC country engineer for review and comments:

Allianz Global Corporate & Specialty SE French Branch For the attention of Jean-Pierre Berson

Tour Opus 12 – 77, esplanade du Général de Gaulle Case courrier OA 92076 PARIS LA DEFENSE CEDEX

Tél : +33 1 58 85 98 80 Télécopie : +33 1 58 85 98 81 Courriel : [email protected]

2.2 Fire Protection Impairments

For fire protection system impairments expected to exceed 10 continuous hours in duration,

notify Allianz Risk Consulting 48 hours in advance of a planned impairment and as soon as

possible for an emergency impairment by emailing the Fire Protection System Impairment

Notification & Restoration Form to [email protected] impairment form and

guidance document can be downloaded at www.agcs.allianz.com/insights/white-papers-and-

case-studies/fire-protection-impairment-management.

Fire protection systems include sprinkler systems, standpipe/hose systems, fire protection

water supplies, fire pumps, fire mains, fire extinguishing systems, fire detection/alarm

systems, etc.

Work should be planned so as to minimize the time and area involved in the impairment of

fire protection.


http://www.agcs.allianz.com/insights/white-papers-and-case-studies/fire-protection-impairment-management/

http://www.agcs.allianz.com/insights/white-papers-and-case-studies/fire-protection-impairment-management/

FAURECIA


MEX0739/260513



3 RECOMMENDATIONS

3.1 Completed Risk Improvement Proposals

NUMBER RISK IMPROVEMENT PROPOSAL

13-01 New Project – Fire Protection Equipment

The fire protection project engineering should be submitted to Allianz for review.

Engineering includes:

Water Tank

Fire Pumps

Fire Yard Mains, Sectional Valves, and Fire Yard Hydrants

Automatic Sprinklers

Fire Alarm System

FM200 Special Fire Protection System at IT Room The engineering was submitted six (6) times but approval has not been granted. Engineering approval will assure that specifications and design are in compliance with Faurecia, NFPA, and Allianz requirements.

Comment: The project was sent, by the contractor, to ARC some weeks before the survey, moreover we had a meeting with him during this visit. Provided information is now in compliance with ARC requirements.

13-02 Fire Protection Impairment Procedures

Impairments to the fire protection systems should be managed using the Allianz Risk Consultants Follow Your Impairment (FYI) program. These procedures should be used by everyone associated with the facility for any impairment to fire protection or detection equipment, including sprinkler systems, standpipe/hose systems, fire protection water supplies, fire pumps, fire mains, fire extinguishing systems, fire detection/alarm systems. Notify Allianz Risk Consultants as soon as possible for all emergency impairments and in advance of all planned impairments to fire protection systems that exceed 10 hours within a 24-hour period by any of the following methods:

Notification should be done to Jean Pierre Berson at Allianz Paris Office using the notification template.

Tel: +33-1-5885-6171

Fax:+33-1-5885-9881

Email: [email protected]

Impairments should be recorded using FYI tags and work should be planned so as to minimize the time and area involved.

Proper procedures are essential to manage impairments of fire protection equipment to ensure proper precautions are followed and systems are promptly restored to service.

This is a new facility with the fire protection equipment provided, operations recently started and the responsible crew is starting all programs and procedures.

Comment: The procedure was discussed and it is understood by local staff, also the new impairment address was noted.


FAURECIA


MEX0739/260513



13-04 Water Supply – Water Tank and Fire Pumps

Water tank and fire pumps for the water base fire protection equipment should be

installed in an expedite manner.

The facility operations have started and automatic sprinklers are provided at the

ceiling level but there is no water supply. Automatic sprinkler reliability will be

questionable as it is connected to a water pneumatic system that will only feed one or

two heads.

Comment: The commissioning of water supply was performed during this visit,

testing was successful, just minor issues in the installation were observed.

3.2 Management Programme Proposals


13-03 Inspection, Testing and Maintenance for Fire Protection Equipment.

Improve the inspection and testing for the following fire protection equipment:

a) Water based equipment should comply with NFPA 25.

b) Fire alarm system should comply with NFPA 72.

c) FM200 System should comply with NFPA 2001.

Inspection and testing should be performed in accordance with the latest edition of

NFPA 25, Standard for the Inspection, Testing, and Maintenance of Water-Based Fire

Protection Systems; NFPA 72, Fire Alarm Code, and NFPA 2001, Clean Agents.

Results should be recorded and retained for review by Allianz Risk Consultants. Any

deficiencies noted should be promptly corrected.

Regular inspection and testing of the above equipment will ensure reliable operation

in the event of a fire.

This is a new facility with the fire protection equipment provided, operations recently

started and the responsible crew is starting all programs and procedures.

Comment: The importance of this recommendation was discussed during the closing

meeting. It will be completed in short term.

15-01 Emergency Response Procedures

Improve the facility’s existing emergency response procedures by designating a

trained employee plus an alternate for each shift for the following responsibilities in

event of a fire or other emergency:

a) Person-In-Charge – coordinates and manages all emergency efforts, including

ensuring all other positions are assigned and proper training is provided at least

annually.

b) Notifier – notifies the fire department as a backup to the fire alarm service and

makes sure the fire department is directed to the scene of a fire.

FAURECIA


MEX0739/260513



c) Fire Pump Operator – reports to the fire pump house to verify the pump has

started and continues to operate until instructed by the fire department to turn it

off.

d) Sprinkler Valve Operator – verifies the valves controlling sprinklers in the areas

affected by a fire are open and remain open until ordered shut by the Person-In-

Charge or fire department. This person should also be responsible for reopening

any closed valves after any operated sprinklers have been replaced.

e) Fire Fighting Salvage Crew – performs incipient stage fire fighting and clean-up

procedures. Members of this crew should be familiar with the location and

operation of all fire fighting equipment.

f) Electrician – familiar with the location of all electrical power disconnects to ensure

power is shut off to areas affected by a fire or other emergency. This person

should also provide temporary lighting if necessary.

g) Utility Operator – familiar with the location of all shutoffs for natural gas, ammonia,

propane, oxygen, flammable gases, air, domestic water, etc. to ensure these

systems are shut off during a fire or other emergency.

h) Salvage Crew – promptly performs clean-up and salvage operations to restore

production as quickly as possible.

The duties of each individual, along with the name of the person assigned to the

position, including alternates, should be maintained in writing. Training should be

provided at least annually and coordinated with the local fire department.

A well trained emergency response organization can minimize property damage and

business interruption caused by most anticipated emergencies

Comment: The recommendation is understood by local staff and it will be completed

15-02 Reduce Storage Height

Reduce the pile storage of Finished Goods

located in Production area, where moulds are

also stored, to a maximum height of 2 m to

assure effective automatic sprinkler control in

the event of a fire. This case applies in all

areas where roof height exceeds 9 m.

The storage is currently 4.5 m high, it exceeds

the maximum height for the capacity of

sprinkler system. A fire involving this storage

may not be controlled resulting in significant

property damage.

If storage reduction is not possible, then an option is to install a suspended ceiling,

over storage, at maximum height of 9 m, and install sprinklers below it, in this option

please ask to ARC for design criteria.


FAURECIA


MEX0739/260513



15-03 Rack Aisle Storage

Remove the storage located in the rack aisles

in the Raw Material storage. A policy should be

implemented to prohibit aisle storage to prevent

the spread of fire between racks and allow

easy access for manual fire-fighting

Comment: The recommendation is understood

by local staff and it will be completed

15-04 Thermographic Inspections

The current evaluations should be enhanced to conduct annual inspections of all critical electrical (and mechanical) equipment in accordance with the latest edition of NFPA 70B, Recommended Practice for Electrical Equipment Maintenance. Inspections should be performed using an infrared imaging system to detect abnormal temperatures for the following equipment:

a) All electrical power distribution switchgear and transformers 480 volts AC or higher, and all DC equipment, including rectifiers.

b) All motors rated 100 hp or larger and their connections and controllers.

c) Severely exposed and heavily loaded electrical equipment.

d) Bearing and couplings of critical mechanical equipment.

e) Internal combustion engines.

f) Generators, exciters and their associated switchgear.

g) Electrical equipment located in hot atmospheres.

h) Electrical equipment that is exposed to particulates that insulate, conduct, or corrosive.

Results of the inspections should be submitted to Allianz Risk Consulting for review. All deficiencies should be corrected promptly.

Conducting regular thermographic inspections of key electrical transformers, distribution panels, motor control centres and connections at critical equipment will help identify “hot spots” that could result in a fire or significant business interruption due to failure


15-05 Monthly Self-Inspection Program

The current self-inspection program should be enhanced to verify the following:

a) Sprinkler control valves are locked or monitored in the open position, easily accessible, and they appear to be in good operating condition.

b) Fire hydrants are easily accessible by the fire department, caps are in place, and they appear to be in good operating condition.

c) Fire department connections are easily accessible by the fire department, caps are in place, couplings are free to rotate, and they appear to be in good operating condition.

FAURECIA


MEX0739/260513



d) Fire extinguishers are adequately charged, easily accessible, appear to be in good operating condition, and have been serviced by contractor within the past 12 months.

e) Fire extinguishing systems are in automatic operation with no trouble indications and the systems have been serviced by contractor within the past six months.

f) Flammable and combustible liquids and stored and handled safely.

g) Overall plant housekeeping is adequate.

h) Building roof coverings, flashing and drains are in good condition.

Inspection results should be recorded and retained for review by Allianz Risk Consulting. Any deficiencies noted should be promptly corrected.

Regular inspections will help reveal any deficiencies associated with the above items and minimize loss potential


15-06 Outdoor Storage

Relocate the outdoor storage of at least 15 m

away from main building and any other

important buildings in accordance with the

latest edition of NFPA 13, Standard for the

Installation of Sprinkler Systems.

The storage is currently located next to the

building, which exposes it to significant fire

damage if ignited. Providing adequate space

separation will significantly reduce the hazard

Comment: The recommendation is understood by local staff and it will be reviewed

FAURECIA


MEX0739/260513



3.3 Physical Risk Improvement Proposals


13-05 Automatic Sprinkler Protection for Material’s Office and below obstructions

Existing automatic sprinkler protection should

be extended to protect the following areas:

Material’s Office at the Loading/Unloading

Material´s Area

Below the platform where the poly-

isocyanate equipment is located.

Platform above hydraulic unit at the first

production line.

Material’s office is about 50 m2 and it is

located between the unloading/loading and storage areas. A fire in this office will

easily extend to the storage areas with a larger loss. Storage is being performed

below the platform where the poly-isocyanate equipment is located. This area is about

20 m2 with plastic bin storage. A hydraulic unit is located below a platform at the first

production line.

Comment: Recommendation was discussed, it will be completed.

13-06 Fire Protection to Exhaust System for Hot Press

Fire protection should be provided to the

exhaust system for the new hot press that is

being installed.

There has been previous experience with fires

in these ducts. Detail information from the

press manufacturer should also be provided in

order to install the most adequate fire

protection equipment.

This equipment is new and it is being

installed. Installation can be considered at

50% and the ducting system has not been installed.


13-07 Solvent base glue Spray Booth

The following items should be completed to improve the booth loss prevention

features:

a. Ground system should be reviewed in order to ensure that the exhaust duct,

ventilation system, and booth are grounded to the same ground and grounding

conductivity is within code requirements.

b. All non-Class I Division I rated electrical equipment should be removed from

the area.

FAURECIA


MEX0739/260513



c. An interlock between the spray gun and the ventilation system should be

provided in order not to spray solvent base glue if the ventilation system is

shut off.

There has been previous experience with fires in these ducts. Static energy is

believed to be the reason. Proper grounding will reduce this exposure. Non rated

electrical equipment in a classified zone will provide an ignition source for a fire or

explosion. An interlock system will ensure that an explosion cloud will not be formed

within the booth.


15-07 Retrofit sprinkler system #4 (ESFR)

A sprinkler system was installed to protect storage hazard, the system has been

designed for 12 heads at 52 psi using K=16.8. Unfortunately the ESFR heads were

installed upright directly on 4-inches branch lines, which is an obstruction. The system

must be retrofitted changing the upright head per pendent heads.

Comment: A quotation has been provided by a contactor and the job will be

completed in the next weeks

15-08 Flammable Liquids Room

Provide spill containment or a drainage system that has sufficient capacity to carry the

expected discharge of water from fire protection systems to an approved location

(outside the main building). The existing trench won’t be enough to contain the total

expected volume and a fire can spread easily to plant

Flammable liquids present a severe fire and explosion hazard that should be

segregated from other areas. The above protection will prevent a large fire from

causing significant damage to the facility

Comment: Local management stated that this recommendation is understood and

improvements will be provided

15-09 Drop ceiling in rack storage area

The rack storage area is protected by means of ESFR sprinklers installed under a

suspended ceiling.

For various reasons, holes were opened in this drop ceiling. As this affects the

sprinkler system reliability, those holes should all be filled.

Comments: Discussed during the plant tour. Will be done

FAURECIA


MEX0739/260513



4 OCCUPANCY

The Faurecia Building No. 4 located in Huejotzingo, Puebla, is dedicated to the manufacture

of fabric/leather products, plastic injection molding interior components, and dashboards

assembly for the automobile industry. Production schedule is planned and delivered

according to a just in time production program; products are delivered one week in advance

based on customer requirements.

The facility is currently working three (3) shifts per day, six (6) days a week. When the plant

is not in production the building is occupied by security guards and maintenance personnel.

All plant areas are occupied. There are eight hundred (800) employees at the facility.

The operations are divided into four (4) major areas: Leather/fabric cut and sew, automotive

parts forming, plastic Injection, and dashboard.

Automotive parts includes head rest, arm rest, inserts, central consoles, side flanks,

kneepad, handles, etc., and involves fabric and leather cutting and sewing operations, poly-

isocyanate forming, and assembly.

Plastic Injection moulding process is provided with six (6) moulding machines rated for 450

to 1,600 ton.

There is one (1) production line for dashboard forming where a hot press is installed. Hot

press is the equipment with larger oil reservoir (400 l).

Poly-isocyanate foaming process takes place in one machine that has two foaming heads

that can inject the foam into six (6) different molding machines arranged in a semicircle

shape. Formed products are then sent to any of the twelve (12) the adhesive booths where

the adhesive is spray applied to the part. The adhesive is applied by operators with special

air spray gun. The adhesive is a water base solution, but one (1) booth uses solvent base

glue product.

There are two (2) fabric and three (3) leather cutting machines. Fabric/leather is extended on

long tables in a back and forward process in order to form different layers. A computerized

cutter then follows different templates to cut the material. Pieces are send to the sew

process to form different pieces. Foam parts are covered with the fabric/leather material to

form the final piece.

There are fourteen (14) production lines to assemble the pieces. In these production lines

the fabric/leather is inserted into the foam pieces and if required, formed using hydraulic

presses. Finally the pieces are quality inspected and if approved, are sent for storage and

further shipping.

Dashboard process includes a water jet trimming machine and a hot press.

FAURECIA


MEX0739/260513



5 HAZARDS

Process Hazards

Hydraulic Units

There are fire hazards associated with the press units that use hydraulic oil. There are ten

(10) presses rated at five (5) ton installed in production area. They use hydraulic oil at

relatively high pressures (180 bar). There are also six (6) plastic injection molding machines,

five of them rated between 450-650 ton with small hydraulic oil reservoirs (25 to 30 gallons).,

and other one rated at 1,600 ton with oil reservoir of 100 gallons

If hydraulic oil is released under pressure, the usual result is an atomized spray or mist of oil

droplets that may extend up to 12 m (40 ft) from the break point.

The flammable oil spray is easily ignited by hot surfaces, such as heated or molten metal,

electric heaters, open flames or welding arcs. The resulting fire usually is torch-like with a

very high rate of heat release.

Hoses and other components associated with the hydraulic systems were observed to be

very well maintained.

In addition, the hydraulic fluid reservoirs are provided with level sensors, which cause the

pump to stop if the level in the reservoir drops below 50%, oil low pressure and high

temperature.

Equipment maintenance was observed to be in very good condition. Excellent housekeeping

was found in the molding machine areas. Injection molding machines have adequate

process controls; they also have two (2) emergency stop bottoms per equipment.

Automatic sprinkler protection is provided at the ceiling level. Fire hose stations and fire

extinguishers are located in the nearby areas. Smoke detection using beam detectors are

provided at the production areas.

Protection is adequate.

One hydraulic unit is blocked by a platform from the automatic sprinklers at the ceiling level.

Refer to Section 3 for further information and guidance.

Flammable Liquids Spray Booth Application

There is one (1) booth where solvent base glue is spray applied to the foam parts located

next to the foam forming area. Booth dimensions area 10 m by 3 m. All booths are

constructed with non-combustible material (metal sheets), electrical equipment inside the

booths is rated for Class I Division I locations, grounding is provided. Ventilation and filters

are provided. About 20 liters (five (5) gallons) of liquids is used at a time. No storage is done

in the booth area.

Good equipment maintenance was observed. Good housekeeping was found inside and

outside the booth.

Automatic sprinkler protection is provided at the ceiling level and inside the spray booth.

Refer to Section 3 for further information and guidance.

FAURECIA


MEX0739/260513



Storage Hazards

Raw Materials Palletized and Rack Storage

Miscellaneous commodity of plastics, metal parts inside plastic crates are stored in rack and

palletized arrangements. There are also synthetic fabric and plastic foam rolls stored at floor

level on wood pallets up to a height of 3 meters in small areas which represent less than

10% of total materials.

The commodity classification according to NFPA 13 is Group A plastics, exposed /

unexpanded. Total storage area is about 2,000 m2. This area is provided with a gypsum

board drop ceiling at 7.62.

NFPA 13 requires a sprinkler design of 12 ESFR sprinklers at 52 psi, K=16.8. The storage

area is protected by automatic sprinklers capable of delivering a design of 12 ESFR

sprinklers at 52 psi, K=16.8 based on the current water supply, unfortunately, upright

sprinklers were installed on 4-inches branch lines.

Fire hose stations and fire extinguishers are also provided in the nearby areas.

Protection is not adequate. Moreover, storage was found in several aisles. See section 3

Recommendations.

Finished Products Rack Storage

Finished products involving plastic/foam products (foam around 10-15%) are stored inside

plastic crates up to 6 m height. Total storage area is about 1,500 m2. This area is provided

with a gypsum board drop ceiling at 7.62.

NFPA 13 requires a sprinkler design of 12 ESFR sprinklers at 52 psi, K=16.8. The storage

area is protected by automatic sprinklers capable of delivering a design of 12 ESFR

sprinklers at 52 psi, K=16.8 based on the current water supply, unfortunately, upright

sprinklers were installed on 4-inches branch lines.

Fire hose stations and fire extinguishers are also provided in the nearby areas.

Protection is not adequate. Moreover, storage was found in several aisles. See section 3

Recommendations.

Common Hazards

Flammable Liquids

There is an attached flammable and combustible liquids storage room located next to main

building. This room is about 10 m x 20 m with non-combustible construction with concrete

tilt up walls and metal panel roof. There are about one hundred (100) 20 liter (5 gallon) metal

buckets stored inside this room. Solvent based glue and paints are stored in this area along

polyol and Isocyanate products.

The room is provided with spill containment, natural ventilation, curb at the main entrance,

electrical equipment rated for Class I Division I locations, and bonding and grounding.

Housekeeping was found good in the area. No smoking is allowed. Fire hose stations and

fire extinguishers are properly distributed.

Automatic Sprinkler Protection is provided at the ceiling level.

FAURECIA


MEX0739/260513



Protection is adequate. However, additional drainage system should be provided. See

section 3 Recommendations

LP Gas Tank

There is a 300 gallon (1000 liter) LP gas tank installed outdoors used for the lift truck fuel

cylinders. This area is located 28 meters from the main building. The area is provided with a

one (1) meter high wall and fence above it to restrict access to the area. LP gas tank, valves,

and meters are under the gas company maintenance policy. Lightning, grounding and

bonding is provided.

Housekeeping was found good in the area. No smoking is allowed. Hydrants, fire hose

stations and fire extinguishers are properly distributed.


Battery Charging

The battery charging area is located inside the main building in attached room. The room

dimensions are 10 m x 5 m. The area is well ventilated and it was found to be separated

from combustible materials.

Housekeeping was found good in the area. No smoking is allowed. Fire hose stations and

fire extinguishers are properly distributed.

Automatic Sprinkler Protection is provided at the ceiling level.


Utilities Hazards

Electricity

Electricity for the site is provided by Comisión Federal de Electricidad (CFE), a reliable

public power supply company

One aerial feeder rated at 34.5 KV is provided

There are three oil cooled transformers rated at 750 and 150 KVA installed in a substation

next to the main building. Primary reduction from 34.5 KV to 440v.

There are not emergency generators

Smoke detection and sprinkler protection is provided in the substation and electrical

switchgears.

Predictive maintenance includes yearly infrared inspection only for electrical panels, and

yearly transformer oil analysis. Infrared inspections should be extended to substation. See

Recommendations

FAURECIA


MEX0739/260513



Compressed Air

Compressed air is necessary for plant operations. The facility has three (3) air compressors

located in an attached room along the west side of the building. The compressors include

two (2) rated at 102 m3/h units and one of 75 m3/h. The current Pant demand is 75% of total

capacity

Regularly scheduled PM programs are in place for the air compressor equipment.

Housekeeping was found good. Building and equipment maintenance was observed to be in

good condition.

Sprinklers, fire hydrants and fire extinguishers are provided. Protection is considered

adequate.

FAURECIA


MEX0739/260513



6 EXPOSURES

Formed By : Industrial facilities to the North, West and South. Open land to the east.

This facility is located in the nearby area of the Puebla International Airport.

It is located within one (1) kilometer of the facility.

Protection : Physical detachment of about fifty (50) meters from surrounding buildings.

Comments : This is a Textile Industrial Park; most of the facilities are engaged in the

production of some type of fabrics.

Rating : Moderate

7 CONSTRUCTION & LAYOUT

Predominant

Construction

: Class : Non-Combustible

Year Built : 2012

Stories : 1

Production

Building

Height

: It is a Peak Roof with a height of 19.7 m at the peak

and 12.5 at the eave.

Storage

Building

Height

: Drop Ceiling at 7.62 m. Drop ceiling is gypsum board

material. Above drop ceiling there is the production

ceiling (recommendation).

Land Area : 40,000 m2

Floor Area : 11,736 m2

Fire Areas : This building is a single fire area with no fire walls or barriers.

GPS Coordinates are 19.160630, -98.384258.

Comments : This is a leased building. General building maintenance was found to be

good. This facility is considered one fire area as there are no fire walls or

barriers. Construction is concrete tilt up walls up to 4 m and then metal

panel up to roof. Roof is metal panel on light steel with fiber glass insulation

below. Floor is concrete slab. Building construction and maintenance was

found in good condition.

FAURECIA


MEX0739/260513



8 PROTECTION

Water Supplies : The private water supply consists of two (2) UL/FM listed / approved

fire pumps, one is a diesel engine and the other is an electrical motor

driven fire pumps both rated for 453.6 m3/hr at 9.65 psi at 1,780 rpm.

These both pumps are taking suction from an above steel bolted

water tank rated for 1,137,000 liters (1,137 M3).

This pump also feeds the fire protection of the nearby FAS plant.

Because of insufficient transformer capacity, the electric-motor

pump is Currently not working. As MFL values are presently

under 75M€, this pump is not needed. Should values increase in

the future, adequate electrical supply to this pump should be

provided.

Sprinkler + Hydrants

Maximum Water Demand

: 398 m3/hr @ 6.75 bar

Satisfied? yes

Sprinkler Protection : Floor Area Covered : 11,736 m²

Floor Area with

Adequate Protection

: 7,000 m²

Additional Coverage

Needed

: 100 m² (platforms)

Riser n°

Protected area Water/

Dry

Occupancy

commodity

Density

(mm/min)

Operating area

(m²)

Type of spkler

Nb of spk

Max permitted storage height

(Applicable standard)

Adequate

Y/N

1 Production Water Workshop 16.3 232 K11.2 2 Y (*

)

2 Production Water Workshop 16.3 232 K11.2 2 Y

2A Offices Water Offices 7.3 232 K8 0 Y

3 Production Water Workshop 16.3 232 K11.2 2 Y

4 Warehouse Water Storage 12 hds @ 52 psi

-- K16.8

6.1

NFPA 13

N(**

)

(*) There is high piled storage, 4.5 m tall, of Finished Goods (plastic crates and card boxes). The

storage height must be limited to 2 m into all production areas

(**) A new set of drawings and calculations were submitted to ARC and they were found

acceptable, it consists in the replace of upright heads for pendent heads, since upright were

installed on 4-inches branch lines. Once it is complete the system will be adequate.

Water demand met: Yes

FAURECIA


MEX0739/260513



Fire Hydrants : Adequate

Fire Department : Ty

pe:

Paid Response Time: 15 minutes

Alarm Service : Proprietary

First Emergency

Team

: At least 100 workers receive annual fire extinguisher training.

Training is done on a rotating basis so that all employees

eventually have received extinguisher training.

Currently there is not a safety manager on site, a recommendation

is not being issued since a new manager is in process of hiring.

First Fire Fighting

Team

: Fire brigade consists of 22 members, training is performed bi-

monthly in fire extinguishers and fire hoses. Two (2) drills are

conducted per year.

The Emergency Response Procedures should be improved. See

Recommendations

Automatic Fire

Detection

: The facility is provided with smoke spot type detection at the offices

(including technical rooms and electrical substation), and smoke

beam type detection at the production area. Automatic sprinkler

systems are provided with water flow switches. Other initiating

devices are: manual pull stations, valve tamper switches.

The fire pumps controllers are not supervised by FACP. A

recommendation is being included in the commissioning report

Automatic Gas

Suppression System

: There is a clean agent (FM200) extinguishing system provided at

the IT Room. Inspection, testing and maintenance are not being

performed yet. See Recommendations

Site Security : There are twelve (12) guards provided, four (4) per shift. Guards conducts three-hourly round with a recording system. Guards are trained in the use of fire extinguishers. It is a guard contracted company. There is a fence surrounding the property line. Access control is per electronic cards and security guard houses. There is no intrusion alarm system A CCTV circuit is provided with nineteen (19) cameras. Good illumination is provided for the dark periods.

Comments : Water base system design and installation is considered standard, except sprinklers over storage, which are being retrofitted. The full sprinkler protection is subject to a commissioning visit.

Overall Rating : Standard

FAURECIA


MEX0739/260513



9 MANAGEMENT PROGRAMS

Program Rating Comments

Housekeeping Standard Housekeeping is good in general, but outdoor storage and aisle storage must be improved. See Recommendations

Smoking Good

Fire Equipment Inspection,

Testing and Maintenance Poor

A program must be developed. See Recommendations

Self-Inspections Sub-Standard, A program must be developed. See Recommendations

Impairments Standard Presently substandard, but Faurecia / ARC procedure will be implemented. See Recommendations

Work Permits Good

Pre-Emergency Planning Sub-Standard Emergency Response Procedures must be improved. See Recommendations

Overall Rating Standard

FAURECIA


MEX0739/260513



10 PERILS OTHER THAN FIRE

Peril Rating Comments

Flood / Water Low

There is no flood information available in Mexico but this area has no previous history involving flooding. The area where the plant is

located is rated as Risk Class 2 with expected rainfall on an annual basis

between 121 and 195 mm.

Flash flood Medium MunichRe Zone 4

Wind / Storm None Provide MunichRe wind zone 0, and no hazard to extratropical storm

Earthquake Medium MunichRe earthquake zone 2

Hail Medium MunichRe Hail Zone 4

FAURECIA


MEX0739/260513



11 BUSINESS INTERRUPTION

The facility has started operations in 2013. It is considered to be operating at eighty (80)

percent of its rated capacity.

Critical equipment is the large forming press, called hot press, around 10% of the production

require this equipment. The equipment is manufactured in Spain and it could be replaced in

6-8 months. In case of loss, Nave 1 could make the production.

There is a stock of the main components of critical equipment.

Ninety (90%) percent of the components are supplied by Faurecia Facilities plants 1 and 5

located at twenty (20) kilometers (about twelve (12) miles) from this location. This facility

supplies Ramos Arizpe from plastic parts and products for the GM Assembly plant.

Faurecia has studied availability of all critical machinery in the plant and considering their

spare parts and subcontracted services as part of a contingency plant.

The main environmental hazard of this facility is the storage, handling and disposal of

hazardous wastes. The volumes handled of these materials are very low and the activities

are done according to documented procedures.

No air emissions, no water discharges other than sanitary and no potential soil

contaminations were observed during the survey.

Plant management reports the disposition of a Corporate Business Contingency Plan, which

is available to local plants through the intranet. The main scenario evaluated in the plan is a

large fire. Aspects as new location, equipment and suppliers are included in the plan.

12 LOSS HISTORY

No losses are reported for this location

FAURECIA


MEX0739/260513



13 LOSS ESTIMATION

13.1 Reported Values

Buildings : $8,685,618.90 Equipment : $16,131,344.25 Goods : $7,333,213.00 Total Property Damage : $32,150,176.15 Business Interruption : $33,628,000.00 Total : $65,778,176.15

Comment: Values extracted from RIMS and expressed in USD.

13.2 Estimated Maximum Loss (EML)

Estimated Maximum Loss is defined as the largest loss likely to occur as a result of a single incident under normal conditions. All existing physical protection measures and/or human factors are taken into account. The extraordinary circumstances likely to modify the nature of the risk are left out.

Scenario: A fire starts in the storage area during non-operating hours, prompt detection is

expected by fire alarm system (sprinkler water flow and smoke detection), the fire spreads

horizontally and vertically very fast for total storage area reaching the contiguous

manufacturing area. The fire is anticipated to be controlled by the fire department, once the

sprinkler protection is not adequate to control the fire alone and it will be ineffective. Taking

into consideration fire, smoke and water contamination a PD damage is expected a 100% of

inventories and about 60% of building and equipment.

PD= $7,333,213 + 0.40 ($8,685,618.90 + $16,131,344.25 ) = $22,223,400

From this scenario we can expect that 100 percent of total operations be affected for six

months.

BI= $33,628,000 x100% x 26/52= $16,814,000

PD EML : $22,223,400 = 70% of insured values

BI EML : $16,814,000 = 50% of insured values

Total EML : $34,074,000

FAURECIA


MEX0739/260513



13.3 Maximum Foreseeable Loss (MFL)

Maximum Foreseeable Loss is defined as the largest loss that may be expected from a single fire or explosion to any given property, when the most unfavourable circumstances are combined and when as a consequence, the fire is not fought and therefore is only stopped by impassable objects or lack of sustenance.

Scenario: A fire in any area with the fire protection equipment out of service is expected to

travel in an expedite manner through all the building as there are no fire walls or fire barriers.

The continuity of combustibles is large involving plastics, hydraulic oils and carton.

PD= 100%

BI= 100%

PD MFL : $32,150,176.15 =100 % of insured values

BI MFL : $33,628,000 =100 % of insured values

Total MFL : $65,778,176.15

FAURECIA


MEX0739/260513



14 APPENDICE

Risk Evaluation

Recommendation Analysis

Photos and attachments

Site Plan or sketch

Aerial photograph with coordinates and elevation

FAURECIA


MEX0739/260513



RISK EVALUATION

Minimum

Requirement

Minimum

Requirement

Minimum

Requirement

Current

HPR Pre-HPR To be imp. Poor Level Quotation

Follow-up of previous

recommendations 3 3

LOSS PREVENTION

Organization and training

Safety manager 0 0.5 First emergency team 0,5 0.5 First fire-fighting team 0 0.5 Watchservice 0,5 0.5Fire prevention inspection 1 1

Sprinkler system controls 0 1

Hot work permit 1 1Housekeeping 0,5 0.5Flammable liquids 0 0.5

Sprinkler impairment 1 1

Installation maintenance 0 0.5

Rounds 0,5 0.5Alarms transmission 1 1Recovery plan 0,5 0.5New projects 0,5 0.5Smoking regulations 1 1

LOSS PREVENTION

Construction 0,5 0.5Cut-off 0 0.5Local protections 0,5 0.5Sprinkler protection 2 2Reliability of sprinkler system 0 1

Private water main 0,5 0.5Public water main 0 0.5Exposure 0,5 0.5

TOTAL 16 13 11 < 11 15 20

HPR Pre-HPR To be imp. Poor

RISK EVALUATION : X

TARGET : X

Cost of target implementation: $50,000 Schedule for objective completion: 2015

FAURECIA


MEX0739/260513



Comments: This facility could easily reach the target HPR, and it could happen in the next months, once all EMC are implemented on site, a recommendation has been issued for each one is missing.

EMC = Essential Minimum Criteria to reach a risk category.

Safety manager Criteria is rated 0 as there is presently no safety manager

Fire fighting team criteria is rated 0 as the procedure and organization should be improved

Sprinkler system controls criteria is rated 0 as testing should be improved to meet NFPA 25

requirements

Flammable liquids criteria is rated 0 as there is no adequate drainage provided in the FL

storage area

Installation maintenance criteria is rated 0 as testing should be improved to meet NFPA 25

requirements

Cut off Sprinkler system controls criteria is rated 0 as there is no adequate fire cut off provided

AND sprinkler protection is presently inadequate.

Reliability of sprinkler system criteria is rated 0 as the ESFR protection in the rack storage is

inadequate, there are holes in the drop ceiling and storage heights are exceeded.

Public water main is rated 0 as public water main is scant.

FAURECIA


MEX0739/260513



RECOMMENDATION ANALYSIS

N° Rec PRIORITY DESCRIPTION - STATUS

POTENTIAL LOSS

COST OF RECOM.

POTENTIAL LOSS

BEFORE Evaluation

+/- 25% AFTER

A/ MANAGEMENT PROGRAMME PROPOSALS

13-03 1 Inspection, testing and maintenance of fire protection equipment

15-01 3 Emergency Response Procedures 15-02 2 Reduce Storage Height 15-03 2 Rack Aisle Storage 15-04 3 Thermographic Inspections 15-05 3 Monthly Self-Inspection Program 15-06 1 Outdoor Storage

B/PHYSICAL RISK IMPROVEMENT PROPOSALS

13-05 3 Automatic sprinkler protection for material’s office and below obstructions

$5,000,000 $5,000 $1,500,000

13-06 2 Fire protection to exhaust system for hot press

$5,000,000 $5,000 $100,000

13-07 2 Solvent base glue spray booth $850.000 $5,000 $10,000 15-07 1 Retrofit sprinkler system #4 (ESFR) $34,074,000 $15,000 $1,500,000 15-08 2 Flammable Liquids Room $850.000 $5,000 $10.000 15-09 2 Repair drop ceiling

$34,074,000 $15,000 $1,500,000

Priority 1

Management programme proposals Physical risk improvement proposals for Potential Loss > 30 Million € Reliability of 2nd water supply for MFL (PD + BI) > 75 Million €

Priority 2

Physical risk improvement proposals for Potential Loss > 15 Million € and < 30 Million €

Priority 3

Minor management programme proposals Reliability recommendation Physical risk improvement proposals with low cost of completion (excellent cost/loss ratio such as 1/50). Potential Loss = Potential Loss (Physical Loss + Business interruption).

FAURECIA


MEX0739/260513



PHOTOS AND ATTACHMENTS

Fire Pump FG Storage in Production Area

Outdoor Storage in Provisional Tenant Rack Storage Below Gypsum Drop Ceiling

Hydraulic Press Hot Press

FAURECIA


MEX0739/260513



SKETCH

FAURECIA


MEX0739/260513



AERIAL PHOTO with GPS COORDINATES and ELEVATION

Latitude (decimal) Longitude (decimal) Elevation (metres)

19.160630 -98.384258 2,256

Property Risk Analysis Report - eValidatefaurecia.evalidate.com/upload/audit/3298_Allianz-Puebla Nave 4...Property Risk Analysis Report Format Version 15/05/2015 Allianz Risk Consultants

Documents