Branch 2 (Houston) is on the move. They will have moved into their facility by May 2015 and in preparation of that event they have just passed their annual surveillance audit for ISO 9001:2008, API spec Q1, API-7K and API-16D. This audit takes three eight-hour days for an outside auditor to review procedures and documents from managing materials, quoting, making assemblies and closing a sale. ISO 9001:2008 is based on a number of quality management principles including a strong customer focus, the motivation of top management, the process approach and continual improvement. It is a very complex procedure and by holding that certificate, it allows them to quote and sell to some OEMs and end users that other hose shops cannot. API-7K is a standard, from the American Petroleum Institute, that covers rotary hoses used in the oilfield. Offshore drillers and many land drillers require rotary hose assemblies to be built to, and meet, API-7K standard. Branch 2 holds a certificate for API-7K FSL2 which is the highest level of assemblies that meet this standard. It can be found on the following website https://mycerts.api.org/Search/CompositeSearch. Houston will be making Flextral branded API-7K rotary hose assemblies sometime in Quarter 2. API-16D is a standard from the American Petroleum Institute that covers all aspects of Blow out Preventor units used on drill rigs. Bridgestone Hosepower already has completed the Lloyd’s witnessed fire testing and obtains that certificate of the burn test for the DR28 hoses according to API specs. Some end users (such as Nabors) are requiring the API 16D certificate from API and not just Lloyd’s. Houston was able to apply for and pass that audit. We do not know of any other distributor that has this qualification. Great Job Houston Team on making Bridgestone Hosepower a best in class choice for the end user.