- Safety & Quality -

HEALTH AND SAFETY MANAGEMENT

Health and Safety issues are regarded as very important by the Malta Shipyards.

The specific objectives of the company is to provide safe and healthy working conditions for all employees and to maintain the highest safety standards in relation to systems of work and equipment operations. Furthermore, through training, supervision and the provision of information, the company is committed to ensuring a safe place of work for both shipyard employees, client personnel and other persons who are within shipyard responsibility areas.

Malta Shipyards Ltd, through its commitment to the Corporate Safety Policy:

Seeks to avoid harm to health, injury to employees and others, damage to property or the environment from its operations, and those of sub-contractors acting on its behalf.

Requires that sub-contractors working on its behalf apply acceptable health, safety and environmental practices.

Recognises the importance of the involvement and commitment of senior management and the responsibility of each and every employee in the application of this Policy. Managers, supervisors and employees at all levels are held accountable for health, safety and environmental performance.

Acknowledges the principle that essentially all accidents can be prevented and actively promotes, among all those associated with its activities, the highest standards of safety awareness and performance.

Designs and provides products which, when used in accordance with the appropriate operating instructions manuals, will minimise the risk of injury or harm to health or the environment.

Applies appropriate measures to minimise any adverse effects of its operations on the environment.

Observes all relevant legal requirements.

Has regard to relevant approved Codes of Practice and other guidance material.

Maintains an effective system for monitoring and reviewing health, safety and environmental performance.

Provides an effective system of communication on safety related matters.

Provides safety education designed to prevent ill health and accidents by bringing about acceptance of personal responsibility by everybody for health and safety awareness.

Ensures that all company employees are competent and provides, at all levels, appropriate training, and retraining where necessary, in the skill and knowledge required for each individual operation or activity.

During June 2002, the Shipyards joined forces with the Swiss-based internationally-renowned Safety Company - Du Pont Safety Resources - to implement a major 3 year safety improvement programme involving all levels of employees throughout each business. A statement relating to this safety development is attached.

In May 2001, the Cospicua Site was audited and awarded by a Four Star Rating safety certificate from the British Safety Council. This certificate indicates a very high standard of safety.

The 5 Star Audit System is designed to help a company meet the standards that are set by the United Kingdom's safest companies.

In fact a British Safety Council Auditor reviewed the Health and Safety management procedures, which were covered under five key elements:

- Safety Organisation.

- Management Control Systems

- Fire Control Systems

- Measurements and Control Systems

- Workplace Implementation

QUALITY MANAGEMENT - MANAGEMENT RESPONSIBILITY

QUALITY POLICY

It is the objective of the Malta Shipyards to supply a service of consistent quality to meet the expectations and needs of its customers and to ensure compliance with the applicable bodies, standards and regulatory requirements. Our technical expertise and advice are available to our customers at all times.

This Quality Manual describes the Quality Management System employed by the Malta Shipyards. Its contents have been reviewed and indicate compliance of the system with the requirements of ISO 9002 - 1994. Operating Procedures and Work Instructions, which define in detail how each element of the system is applied, support it.

The QA/QC Manager/Quality Assurance Co-Ordinator is the designated management representative and is responsible for ensuring the implementation of the quality programme, the identification of quality related problems and the initiation of corrective actions. He has the authority and organisational freedom to resolve all such problems but in the unlikely event of an irreconcilable difference of opinion with another department this matter is referred to me. The Management Representative is further responsible for keeping me advised of the status and adequacy of the quality programme.

The achievement of consistent quality calls for a systematic and disciplined approach by all employees in all activities associated with the customer's order and all personnel have been made aware of the Company's quality policy by use of introductory seminars, internal memos, issue of the policy statement and familiarisation with the supporting quality documentation.

The management and workforce of the Malta Shiyards are fully committed to the principles of quality assurance and to the practices described in this manual.

QUALITY ASSURANCE:

Malta Shipyards' QAS covers all the core processes for shiprepair, conversion and new construction projects. The QAS is documented in a 3 tier system, namely, the QA Manual, stating the shipyard Quality policy, the second tier consists of the Operating Procedures which cover all clauses specified in ISO 9002, and the third tier includes all the Work Instruction which detail how jobs are executed.

The company is in the process of implementation the requirements of ISO 9000, having completed the documentation stage. In the near future it will be executing the implementation and evaluation stages for the eventual certification to ISO 9000 to cover both normal shiprepair work and conversions. This would consist of all the major trades in the shiprepair industry, including steel construction, mechanical, electrical and electronic engineering work.

The QA Department issues the following documented procedures.

- Quality Planning

- Contract Review

- Design and Engineering Control (where appropriate)

- Document and Data Control

- Change Control of scope of work

- Vendor & Sub Contractor Selection, Inspection and Quality Assurance

- Product identification and Traceability

- Fabrication, Construction and Installation QA/QC arrangements

- Corrective and Preventive action

Every department within the shipyards will be audited at least once a year in accordance with the Operating Procedures. These audits will be carried out by suitably qualified and experienced internal auditors from relevant departments.

The QA and QC functions within the Malta Shipyards are performed by various departments.