To all our valued Customers and Friends:

As the Christmas season approaches, and yet another year comes to an end, it is often a welcome break from the pressures of everyday living … an especially good time to count our blessings ... an appropriate time to say “thank-you” to our many customers and friends.

As we pause before we enter a new year, we once again want to tell our valued customers and friends how much we appreciate you. We also want to take this opportunity to advise our customers and suppliers that PATTERSON Industries, commencing in January 2013 will become a Division of ALL-WELD COMPANY LIMITED.

Due to a rezoning to residential of the area of Scarborough that PATTERSON’s plant and offices have been located for over 60 years, PATTERSON INDUSTRIES (CANADA) LIMITED will be closing operations at this location by December 31, 2012. PATTERSON will be moving to a new location operating as a Division of ALL-WELD COMPANY LIMITED with plant and offices on 49 Passmore, Scarborough, ON, M1V 4T1. Our phone and numbers as well as our e-mail address and website remain the same.

To ensure a seamless transition and to continue to manufacture and design PATTERSON process equipment of high quality and reliability, key personnel of PATTERSON Industries will continue to work at the new location.

Like PATTERSON, ALL-WELD is a Canadian owned and operating company providing quality, time-proven equipment and engineering services to various industrial sectors since 1920. ALL-WELD has the skilled and experienced engineering, production and administrative personnel available to continue to manufacture all of the PATTERSON product lines.

ALL-WELD also designs and manufactures in accordance with the ASME Code, Section VIII, Division 1 and carries the National Board of Boiler and Pressure Vessel Inspectors ‘U’, ‘S’ and ‘R’ Stamps of Approval in addition to the Certificate of Authorization from the Technical Standards and Safety Authority (TSSA) from the Province of Ontario. It also has ISO 9001: 2008 standing and is approved for designing and building of Pressure Vessels for the Peoples Republic of China.

Our website www.pattersonindustries.com with many interactive specification sheets for easy RFQ e-mailing continues to grow. We invite you to visit it to fully inform yourself of our capabilities.

On behalf of all of us at PATTERSON Industries, thank you for the opportunity of serving you in the past. We all wish you a healthy and productive 2013, and hope that PATTERSON equipment will continue to contribute to the success of your company. The PATTERSON family wish you and your family a healthy, prosperous and joyful holiday season. May God's richest blessing be with you in the New Year.

PATTERSON Industries (Canada) Limited, a Process Equipment manufacturer in Canada for over 57 years with a history with the founding parent company going back to 1865 was proud to attend the Chem Show 2003 as an exhibitor. Although the revolution and information technology driven by the internet is making trade exhibitions in general increasingly less important, we are happy to greet many old friends and customers at the show. We thought it important to recall the successes and services outlined in the article on the history of the Chem Show.

Europe was at war in 1915, and American imports of dyestuffs, aspirin and other chemical products were cut off. There was skepticism that the American chemical industry was sophisticated enough to take up the slack, but it chose to rise to the occasion. The resulting need to bring equipment manufacturers and chemical producers together led to the “First National Exposition of the Chemical Industries” in New York the autumn of that year. That 83-exhibitor event was the first edition of what was later to become known as the Chem Show.

During its infancy, the Chem Show’s fantastic growth paralleled that of the early process industries; by 1917, for instance, the number of exhibitors at the Exposition had already grown to 288.

Plastics and other synthetics, such as rayon, took the 1929 Exposition by storm. The event not only weathered but helped salve the wounds of the Great Depression — the 1933 Show paid tribute to developers of 112 newly commercialized chemicals, most of them from the new petrochemical industry, calling them “Children of the Depression.”

The theme of the 1943 Exposition was dominated by World War II. Next came the postwar boom years, followed by a brief but dramatic consolidation during the petroleum crisis of the early 1970s. The industry recovered but had to face increasing environmental regulation and the recession of the early 1980s. Reflecting that movement, the Chem Show saw significant increases in the number of displayed products designed to reduce air and water pollution. The 1980s brought downsizing, consolidation and efforts to increase quality control and efficiency, trends which continued into the 1990s.

Meanwhile, the 1995 Chem Show, also called the 46th CPI Exposition, set new records, with 869 exhibiting companies using more than 173,000 net sq. ft. of display space, and more than 17,600 registered visitors (not including 9,257 exhibitor personnel) giving that event its highest attendance in 14 years. The geographic breakdown of the exhibitors reflected the growing globalization of the chemical process industries.

Although attendance dropped off slightly for the 1997 and 1999 Chem Shows, the number of exhibitors and the amount of display space both continued to rise. The 2001 Show faced a new challenge — weathering the 9/11 terrorist attacks that had occurred only a few weeks before the Exposition was due to open. Some companies chose not to follow through with their plans to exhibit and attendance was down. But the thousands of CPI professionals who did attend represented a shining endorsement of just how valuable the Chem Show really continues to be for the chemical process industries.

Excerpted from “The Chem Show: 80 Years of Success Serving the Chemical Process Industries,” by Clay Stevens, President, International Exposition Co.

On Tuesday, November 18, Gary Anderson, Chairman and Chief Executive Officer of Dow Corning Corp. delivered the keynote address at the 2003 Chem Show. Following is a summary of his speech:

2003 has been a milestone year in several ways. The Chem Show marks the event’s 50^th year and 88^th year in business. 2003 also marks Dow Corning’s 60^th year in business. For myself, after joining Dow Corning in 1967, the first event I attended was the Chem Show in that year.

It is remarkable to consider how far the industry has come since then. At that Chem Show, the attendees eagerly gathered up product information, brochures and other literature at information booths to lug home. Information was power. Back then, value was based on what was taken from books, technical seminars and trade shows and events like the Chem Show. With a few clicks on the World Wide Web today, everyone in the world has access to much of the same information.

1967 was a time before globalization, when US companies were lords of their domain. American technology far surpassed overseas alternatives. Major U.S. companies had few worries about foreign competition, and trade barriers protected domestic markets.

Looking back at the chemical industry in the 1960s and 1970s, those decades may have lacked information technology, but they were the heyday for the industry. Demand was strong for our products. The world was hungry for innovative applications, new product features and new ideas. Demand out-stripped supply.

Prices climbed, profitability grew, and there was plenty of innovation to spread around. Chemical companies faced little competition on a global basis, and most organizations were known for their own areas of innovation or specialization. Profitability came easier three decades ago when energy was inexpensive.

Public trust in the industry was high in those years. Chemical companies were regularly praised for their many contributions to peoples’ lives and society. Communities around our plants were supportive and recognized the employment and financial benefits they provided. Before the 1970s, there were few special interest groups. It was public opposition to the Vietnam conflict that was later adapted for other causes such as environmental protection, animal rights and pressure groups.

Public perceptions today are more critical, more skeptical. Today’s challenges are significantly more complex. This is a particularly difficult business environment for the industry. We are facing a wide range of complex issues and mandates that are changing the way employees work and our businesses operate.

The staggering advances in information technology have changed the industry. IT advances have launched a business revolution unlike any since the dawn of the industrial revolution. While IT advancements provide clear advantages – such as speeding commercialization and boosting productivity -- information technology has unleashed competition on a global scale. It has made it considerably more difficult to protect intellectual property and maintain a competitive edge.

Pricing pressures have ensued, as IT makes the global marketplace transparent, allowing customers to easily compare prices on a worldwide basis. IT has virtually collapsed time and distance. This is coming at a time when companies are consolidating the number of suppliers they buy from. And, the pace of change will quicken -- as information technology advances at a rate that doubles every 7 years.

The rising cost of energy--natural gas in particular--is dramatically increasing the cost of operations and squeezing profit margins. Over-building has created global over-capacity, which continues to drive prices down and further erodes profit margins.

Complicating these issues is the fact that many parts of the chemical business are maturing. Differentiation has become increasingly more difficult, and a high percentage of all chemical products are now considered to be commodities.

These burgeoning pressures have led to weak performance and lower valuations for chemical companies. Specialty chemical companies, once highly valued, now are struggling and are being forced to change or to merge.

So what can chemical companies do? I think there are a number of things we can do. We can all:

· Seek additional ways your company can help customers with their problems and to seize new opportunities.

· Anticipate where the market is going, and proactively develop products and services for the future.

· Get out in front of emerging issues. Consider how they can be addressed before new regulations devastate portions of your business.

· And, last, involve and empower your employees in these efforts. Give them the training and resources they need to help customers succeed.

Perhaps it would be helpful if I share what has happened at my own organization and the lessons we’ve learned. I’m sure your company has its own strategies.

Like all chemical companies, Dow Corning has been rocked by global economic forces and competitive pressures. We quickly realized we needed to look at our business in a different way and to make some significant changes if we wanted to maintain our position and grow in the future. Customer research revealed an interesting opportunity. We discovered that our customers need support in non-traditional areas where my company has expertise.

Some of these areas include solutions: to improve companies productivity through engineering design, processing and troubleshooting;to train their staffs in chemicals handling and storage; to help companies understand and comply with new regulations; to hcompanies expand into new geographies or markets; and to optimize their supply chains.

We considered what we do everyday as a global business that we could offer to do for customers. The result is we have transformed Dow Corning from a product-only supplier into a solutions company that helps other companies achieve their business goals.

By supporting customers in broader ways, many of which don’t even involve products, we are building closer ties to customers. This new way of doing business has ignited an entrepreneurial spirit among our employees. Customers now turn to them not only to purchase raw materials but also for help solving problems and pursuing business opportunities.

You can imagine how employees love their new roles. It has made them feel appreciated -- they are valued for their expertise. In fact, we’re now selling their brainpower, in addition to products. We offer their knowledge – our company’s “brain trust” – you could say. The most important thing we’re doing to achieve this is listening – listening to identify where their needs and our expertise lines converge.

To facilitate these changes, we enlisted the support of all employees. Not just those who work directly with customers. Everyone in the company is involved –technical service staff, chemical and mechanical engineers, scientists, IT people and our plant operations teams.   No longer are customer-facing staff the only ones who have responsibility for addressing customer needs. It’s people like everyone in this room who are called upon to deliver what the company has promised to customers.

One worrying trend that industry leadership has noticed relates to deteriorating public opinions about the industry. Media reports, government hearings, consumer letters, and community meetings reflect a high level of fear and distrust about chemicals and the industry. The public has lost sight of the industry’s many contributions and how chemicals make a difference in our lives.

So how can we resolve these issues and restore a positive image for the chemical industry? I believe that the industry has a role in this, but each and every one of us also has a role to play.

The American Chemistry Council is working to develop a national campaign to improve the reputation of the industry. If approved by the members, the campaign calls for creating a dialog and communicating interactively with a variety of audiences. It’s all about engaging external groups and educating them about the benefits the industry. The ACC board is working with European chemical associations to temper the REACH program and to ensure its regulations are both realistic and practical.

Responsible Care practices and public reporting are making a difference, and moving us in the right direction. A demonstrated commitment to sustainability in our operations will accelerate this progress. However, promoting its benefits will do no good if accidents and incidents make the national news.

So how can individual engineers, chemists, IT staff, and plant managers make a difference? I have a personal challenge for everyone in this room. We ALL need to get involved in the process to restore public trust and confidence in the industry. And we need to do this both on and off the job.

One of the ways out of this dilemma is for us to share the many ways the chemical industry is improving the quality of peoples’ lives, our health, and our world. We all need to start talking – telling our friends, neighbors and communities about value of the industry. We all know about the many safety features in our plants, but the public does not. Let’s talk about what we are doing to protect our employees and the communities around us. Let’s foster openness. Invite the public into our plants to see it for themselves. Look for opportunities to participate in community advisory groups as part of the Responsible Care program. Talk about our progress and our successes.

You can start by identifying products your company makes that improve the quality of life.

Here are some of the examples we promote at my company: Exciting new products based on nanotechnology and photonics, Small PDA devices in which all our medical information can be kept in one pocket; Chemical industry contributions that protect electronics in cars from heat and wear that help them operate reliably for more than 100,000 miles. We talk about innovations in computer chips that allow electronic devices to be smaller, lighter and to work faster, deodorants that go on dry, shampoos that make our hair shiny, and computers integrated with advanced materials in robots that walk on the moon or assemble electronics and automobiles.

The blending of biotechnology and silicon science, a field that my own company is creating with our partner Genencor. We are working together to create biologically mediated silicon-based products for the life sciences, personal care, and fabric care markets. In addition, biotechnology and innovation catalysts technologies can reduce waste.

We can talk in terms of the benefits our companies offer, including such things as: protecting the environment through advancements like solar power and “green tires,” which improve gas mileage and resist road resistance; and connecting people to each other and the world through telecommunications and computer equipment.

For the engineers in this room, let’s find new ways to reduce energy costs and to become more energy efficient -- chemical process manufacturing have traditionally been energy ‘hogs’. We need to continue to strengthen security and ensure even safer operation of our plants. And let’s develop processes and systems to improve the quality of everything we produce. This is essential to our long-term success.

I would like to end as I began, marveling at the remarkable progress the industry has made, despite a challenging business environment.

I want to reinforce the importance of each and every one of us considering how our roles – however diverse – can contribute to our companies’ and our industry’s growth and future. And lastly, be a chemistry spokesperson at home and in your community. The good news is that we have a lot to talk about.

I’d be happy to take your questions and to hear how your own organizations are meeting the challenges we face today.

Thank you.

How does all of this affect designers and manufacturers of process equipment to the Chemical process industries?

By Heinz W. Haischt, President & General Manager of PATTERSON Industries

The following is an article which appeared in the Nickel Magazine,
December 2001

HIGH TEMPERATURE SERVICE Choosing the right material is critical for avoiding
premature failure

Making Heat Exchangers More Reliable
Nickel stainless steel provides dependable performance in high
temperature applications

Nickel magazine, Dec. 01 -- Heat exchangers that extract heat from
corrosive and erosive slurries require the additional corrosion resistance
offered by nickel stainless steel S31000. In high-temperature service, it has
good resistance to thermal fatigue, cyclic heating, oxidation and carburizing
atmospheres.

One manufacturer, Patterson Industries (Canada) Limited, recently completed
two floating-head-type shell and tube heat exchangers for use in the metal
smelting industry. They were designed to extract heat from a slurry consisting
of liquid sulphur and hydrogen sulphide at a temperature of 454°C. This slurry
has to be cooled before it can be processed further. The units weigh two
tonnes apiece and, once paired for in-series operation, will have the relatively
compact dimensions of 6.4 metres long, 0.9 metres wide and 1.8 metres high.
Each contains 1.5 tonnes of S31000, containing 20.5% nickel.

All of the materials on the tube side including the tubes, tube sheets and channels,
nozzle connection pipe and flanges and all other materials coming directly in
contact with the hot slurry are S31000, according to Mike Lindsey, sales
manager of Patterson.

The slurry enters the first heat exchanger at 454°C and exits the second at
138°C. The coolant (in this case, water), which absorbs heat from the slurry,
reaches a maximum temperature of 149°C and can be used for supplementary
heating of the plant. The shell side design pressure is 9.3 bars, and the operating
pressure is 7.6 bars, whereas the tube side has a design pressure of 12 bars and
an operating pressure of 10.3 bars.

Both the life-cycle costs and the difficulty of repairing the heat exchangers were
important considerations in selecting S31000. Choosing the right material was
critical in order to avoid the loss of either of the units as a result of premature
failure, the high cost of shutting down a production process, and the cost of
replacing the heat exchangers.

Patterson notes that for some heat exchanger projects, the trend is towards
using special austenitics and super-austenitic alloys, which offer better service,
corrosion resistance and mechanical properties.

Photo: Patterson Industries (Canada) Limited

*******

Our heartfelt sympathy and prayers go out to all of those families who have lost loved
ones and friends in the terrible tragedy of September 11, 2001.

In the brilliant morning of September 11, 2001, we had to watch in horror the brutal
act of destruction and mayhem that altered the tenor of life in America and in the free
world in general. The U.S.A. together with the free world faces what is likely to be a
long and ugly struggle against the forces of evil maniacally bent on pursuing their
twisted goals without regard to the sufferings of many innocent people. We all know
that this war, which has been brought to the shores of North America, with such stealthy
cowardice, will require more sacrifice of lives which will include our own as civilians
next to those of our brethren in arms.

It can be stated with a high measure of confidence that the purpose of those who
direct terrorist acts against the free world have much more in mind than the destruction
of buildings and plants. From the slums of their own narrow-minded, unconstructive
and mean-spirited lives, they despise the freedom, humanity, tolerance and prosperity
for which America and the free world stand for.

We could not help but admire the spirit of the American people who with countless
banners and flags stated “In God We Trust”, “United We Stand”, expressions in
the wake of the recent tragedy. It is the unreserved confidence and the spirit of the
American people and our combined determination that will win this war. Heroism has
been manifested in the courage and spirit of forgiveness of the survivors, in the tireless
and daring efforts of the rescue workers, in the generosity of people, volunteers who
donate their time, money and blood and in the self sacrifice and bravery of the
passengers on Flight 93 who perished after thwarting the mission of the 4^th hijacked
plane.

It now remains for all of us to honour and emulate the spirit of these brave souls by
getting on with the business of North America and the free world. In particular, the
people of North America look to the industrial establishment for the repair of damage
done, for the tools for deterrence of further damage, for the equipment and systems to
defend our way of life and for the enterprise and ingenuity that are the engine and basis
of our quality of life.

Although attendance was down at the Chem Show 2001 and a number of exhibitors
did not show up, we believe that innovation, ingenuity, resourcefulness and the spirit of
neighbourhood must continue in the free world. Although there was a temptation not to
exhibit due to the uncertainties of low attendance following September 11, our Company
was there to take a stand against the intimidation of terrorism, to help and encourage the
brave people of New York to support re-building their economy and their lives.

As the only major industrial nation at peace in 1915, a neutral U.S.A. was a
manufacturing powerhouse with a problem: In the grip of war, Europe required vast
amounts of finished goods, but could no longer be counted on as a source of essential
raw materials like drugs, dyes and organic chemicals.

To help industry meet the demands, Dr. Charles Roth, Chief Chemist of Standard Oil
called on the International Exposition Company, and an exhibition was planned to
facilitate the transfer of knowledge between equipment manufacturers and chemical
producers. Thus the tradition of holding exhibitions for the Chemical Process Industry
was born. That relationship between the chemical industry, equipment manufacturers
and the International Exposition Company is still going strong over 80 years later.

The first Chem Show with some 83 companies exhibiting marked the start of a rapid
development of the American chemical industry. In 1914, only 10% of America’s
colour dye needs were met domestically. By 1916, American chemical producers
were providing 75% of the demand. Producer companies jumped from six
European-supplied firms to 30, all producing dyes from coal tar and other domestic
materials.

As the Chemical Processing Industry grew, so did the Chem Show which over the
years truly became a “trade show” in the truest sense of the word closing its doors to
the general public and inviting only industry professionals who registered.

American Chemical innovation boomed through the depression. The Chem Shows
showcased a very vital industry doing its part to provide jobs as development
continued apace. By the end of the 1920’s the plastics age had begun. The
myriad users of plastics became apparent. While the country struggled, the chemical
industry continued its growth. More than 200 new chemicals were introduced during
the early years of the great depression, many as out-growths from the emerging
petro-chemical industry. These chemicals led to the first generation of modern
plastics like synthetic rubber, vinyl, acrylic olefins, as well as detergents and
new pharmaceuticals.

Recycling had its beginning during the war years as necessity forced industry to focus
once again on producing goods with limited resources. Advances in the yield
enhancing catalysts and production techniques – born of wartime necessity – positioned
the industry to meet the demands of the post war boom. During the mid 1940’s,
techniques and technologies were developed which prior to this were restricted
during the war. Major advances in controls – vacuum and hydraulic systems,
infrared and photoelectric sensors – made meeting exploding consumer demand
possible, a vital engine in the development of the huge North American consumer market.

During the 1960’s, the expansion of the petro-chemical and plastics market
continued. These boom years were followed by a brief, but dramatic consolidation
during the oil crisis of the early 1970’s. The industry recovered but had to face
increasing environmental regulations and the economic recession of the early 1980’s.
New technologies designed to help plants meet environmental regulations became more
important.

The 1990’s brought downsizing, consolidation, increases in quality control,
efficiency, total plant automation and a focus on the environment. This affected not
only the chemical process industry companies but also the designers and builders of
equipment. Many large process equipment manufacturers with competent Engineering
Departments went out of business due to the fact that industry was constantly shopping
for the cheapest equipment from small companies with little or no engineering overhead.
Today the chemical process industries, the designers and manufacturers of equipment and
the chemical manufacturers continue to foster growth and success into the 21^st century.

In the true American spirit of resilience and free enterprise, PATTERSON Industries
is proud to continue our over 130 year tradition and to play its part as a supplier to this
vital industry. We would encourage all professionals associated with the chemical
process industry to heed President Bush’s and Mayor Giuliani’s advice to get back to
business as usual as quickly as possible to provide people with employment and so
overcome the present sluggishness in the North American as well as world economies.

PATTERSON INDUSTRIES (CANADA) LIMITED’S latest shipment is a
11' 7" (3.53 m) I.D. x 23'0" (7.00 m) overall length Rotary Furnace for the recycling
of lead from batteries. This massive piece of equipment has a large split type
precision machined girth gear and also heavy precision machined forged tires.
The overall weight of the equipment is over 40 tons and had to be shipped on
a specialized "Low Boy" trailer to clear bridges despite special routing that had
to be arranged. This is another example of PATTERSON’s expertise in
manufacturing Rotary Machinery such as Rotary Dryers, Calciners, Rotary
Furnaces and Ball Mills.

H.W. Haischt President & General Manager

H.W. Haischt
President & General Manager