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HENG TONG CASTING

HengTong Casting Statement of Owen Zhao

1. Introduction My name is Owen Zhao. I am here on behalf of my father, Mr. Jinyou Zhao, who is the president of HengTong Casting. HengTong is founded in 1997 by my father, and he studied the metal casting in the university and designed a centrifugal casting machine used to produce cast iron soil pipes. After graduation, he worked in the metal casting industry until he founded HengTong Casting. HengTong is based on technological development and focus on high-end markets. Our core technology includes two patents. One is a coating system for the casting mould, and the other is a coating system for EN877 soil pipes, as shown below.

A coating System for the Casting Mould A coating System for the EN877 soil pipes

2. Our Global Market Our products are exported to all over the world, including America, France, Germany, Croatia, Italy, Netherlands, Sweden, Norway, Turkey, Australia, South Korea, Russia, and so on.

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MATCO-NORCA Global sourcing, National compliance. Local service.

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2.1 US Market - Clients We had two large customers in US market, MATCO-NORCA and Star Pipe. In 2001, we shipped 80 containers per month to MATCO-NORCA. After MATCO-NORCA exit the business, we became the largest pipe supplier of Star Pipe.

2.2 European Market - Products In European market, our French customer is the largest cast iron soil pipe manufacturer as well. Their rainwater pipes as shown below are made by one single manufacturer, us. In Germany, the 40mm, 500mm, and 600mm EN877 cast iron soil pipes are made by no others, but HengTong. In European market, our products are variable in terms of shape, coating, size, color, more importantly, applications.

For the German Customer

For the French Customer

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2.2.1 EN 877 — Four types of Coatings According to different applications, EN877 pipes can be classified into four types, including SML, TML, KML, and BML. They are coated with different coating materials, having different anti-corrosion performances. More details can be found in the following picture and table.

Coating Type Internal Coating External Coating Applications

BML Epoxy Epoxy / Extra Zinc Bridge only

KML Extra Epoxy Epoxy / Zinc High-corrosive occasions, such as chemical laboratory, hospitals.

TML Epoxy Epoxy / Zinc Underground applications

SML Epoxy Epoxy Inside Building

2.3 Back to US Market In 2012, we introduced EN877 into US market through the cooperation with NewAge.

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3. HengTong EN877 Pipes vs US ASTM Pipes Our pipes are different from US ASTM pipes in terms of smoothness and appearance. We provide three pipe samples, including our EN877 pipes for European market (Red), our EN877 pipes for US market (Green), and local pipes (Black). Please feel free to pass and have a close look at internal and external surfaces of these pipes.

Our EN877 for European Market

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Our EN877 for US Market

US ASTM Pipes

4. Comparisons between EN877 and ASTM A888 EN877 meets higher and more requirements for cast iron soil pipes than ASTM A888 in many aspects, especially tensile strength and coatings.

EUROPEAN STANDARD EN 877:1999+Al

NORME EUROPEENNE October 2006

EUROPAISCHE NORM

ICS 23.040.10; 23.040.40 Incorporating corrigendum January 2008

English version

Cast iron pipes and fittings, their joints and accessories for the evacuation of water from buildings — Requirements, test

methods and quality assurance

Tuyaux et raccords en fonte, lours assemblages et Rohre und Formstucke aus Guaeisen, deren Verbindungen accessoires destines a ['evacuation des eaux des und Zubeher zur Entwasserung von Gebauden -

bailments - Prescriptions, methodes d'essais et assurance Anforderungen, PrUfverfahren und Qualitatssicherung qualite

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Designation: A888— 13a

INTERN417ONAL

Standard Specification for Hubless Cast Iron Soil Pipe and Fittings for Sanitary and Storm Drain, Waste, and Vent Piping Applications'

This standard is issued under the fixed designation A888; the number immediately following the designation indicates the year of original adoption or, in the case of revision, the year of last revision. A number in parentheses indicates the year of last reapproval. A superscript epsilon (e) indicates an editorial change since the last revision or reapproval.

4.1 Tensile Strength The minimum tensile strength of EN877 is 200 MPa while ASTM A888 is 145 MPa.

BS EN 877:1999+A1:2006

4.5.2 Mechanical properties

Pipes, fittings and accessories shall have the mechanical properties given in table 3.

Table 3: Mechanical properties of pipes, fittings and accessories

Type of casting and material 1)4

Minimum tensile strength

MPa

Minimum ring crush strength

MPa

Maximum Brinell hardness

HB

Pipes

- grey cast iron 200 350 3' 260 - spheroidal graphite

cast iron 420 — 230

Fittings and accessories

-grey cast iron 150 — 260 - spheroidal graphite

cast iron 420 -- 250

1) Other types of cast iron shall satisfy the criteria laid down for grey cast iron. 2) Tensile and ring crush strength for other products see annex A. 3) 332 MPa for nominal sizes equal to or greater than DN 250.

A888 - 13a

fittings. Tension test specimens shall be employed. The manu-facturer shall maintain a record of mechanical tests for a minimum of 7 years.

5.1.1 Tensile Strength Test—The tensile strength shall be not less than 21 000 pjJl45 MPa).

5.1.2 Tension test reports shalT include breaking load of test

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4.2 Coatings EN877 has many strict tests in anti-corrosion performance of cast iron soil pipes, but ASTM A888 has none. For the internal coatings alone, it includes Resistance to Salt Spray, Resistance to Waste Water, Chemical Resistance, Coating Thickness, Adhesion, Resistance to Hot Water, Resistance to Temperature Cycling.

4.3 TUV SUP Test Report TUV SUD is the German organization that provides inspection and product certification services. Here is our EN877 test report.

Industrie Serve

Report No.: 251696 Choose certainty.

Add value.

Date: 2017-11-06

Order number:

Third party inspector: Yuan Junjie

Name of manufacturer: Yuncheng Jiangxian Economic Development Zone

Hengtong Casting Co., Ltd

Location of plant: Meli Town, Jiang County, Yuncheng City,

Shanxi Province, P.R.China

Standard: EN 877:1999+A1:2006+AC:2008

Date.

Our reference:

this document consists of 26 Pages. Page 1 of 26

Excerpts from tee document may any be reproduced and used Ire alvertisMg purposes with the expfess %Peen approval of TI3V SOD Industrie Sentice GmbH.

The test results refer exclusively to the units under test.

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4.3.1 Resistance to Salt Spray — EN877 After 350-hour salt spray test, coatings are carefully examined and classified to certain class in accordance with ISO standards. For example, degree of blistering is classified as Class I for our coatings.

2.12 Internal coating: Resistance to salt spray

Test in accordance with 5.7.2 at least 350h in accordance with ISO 7253:

- degree of blistering: dimension 1, dass 1 according to ISO 4628-2;

- degree of rusting: Ri 1 according to ISO 4628-3.

4.3.2 Resistance to Waste Water — EN877

2.13 Internal coating: Resistance to waste water

Test in accordance with 5.7.2 at least 30d at 23°C.

Test panels examined immediately after test for blistering or damage and after 24h at ambient

temperature examined again:

No loss of adhesion and no rusting.

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4.3.3 Chemical Resistance — EN877 EN877 test description is:

5.7.2.3 Chemical resistance

The tests shall be carried out in accordance with EN ISO 2812-1 using standard panels complying with EN 605. These samples shall be immersed for 30d in the following test liquids:

- a solution of sulfuric acid at pH 2, for the first sample: - a solution of sodium hydroxicie pH 12, for the second sample.

Both solutions shall be held at (23 ± 3) °C. The pH shall be continuously monitored and the solutions renewed as soon as the pH has changed by more than 0,3 from the initial value.

At the end of the immersion period the samples shall be rinsed and examined for blistering, the acceptable degree being dimension 3, class 3 according to ISO 4628-2. In addition a cross-cut test in accordance with EN ISO 2409 shall be carried out, in accordance with 5.7.2.5 and the result shall meet level 1 of EN ISO 2409.

The supplier of the coating material shall demonstrate compliance with these requirements for his material.

Our test result is:

2.14 Internal coating: Chemical resistance

Test in accordance with 5.7.2 from pH2 to pH12 at least 30d at 23°C:

- degree of blistering: dimension 2, class 2 according to ISO 4628-2;

- cross-cut test: level 1 of EN ISO 2409.

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4.3.4 Adhesion — EN877 EN877 test description is:

5.7.2.5 Adhesion

The adhesion of the coating shall be checked by a cross-cut test in accordance with EN ISO 2409, in the following way:

test sample: section 150 mm long cut from a coated pipe or fitting preferably of a size at least DN 100;

number of cuts: 6; - spacing of the cuts: 2 mm (3 mm for coatings which have a minimum thickness

specified by the manufacturer equal or greater than 120 pm).

The results shall conform to 4.6.2.

Our test result is:

2.16 Internal coating: Adhesion

Test in accordance with 5.7.2 by a cross-cut test and adhesion in accordance with level 1 of EN

ISO 2409.

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C over a period of

(15± 5) C over a period of

4.3.5 Resistance to Hot Water EN877 test description is:

5.7.2.6 Resistance to hot water

The test shall be performed on coated pipes and fittings or on sections 150 mm long, cut from these products. The end and/or the cut faces shall be sealed to ensure suitable protection.

The samples shall be immersed for_24 h in a water bath held at (95 ± 2°)C. The internal coating shall then be examined immediately for degree of blistering which shall not exceed dimension 3, class 3 in accordance with ISO 4628-2.

Our test result is: 2.17 Internal coating: Resistance to hot water

Test in accordance with 5.7.2 24h a

- degree of blistering: dimension 2, c ccording to ISO 4628-2.

4.3.6 Resistance to Temperature Cycling EN877 test description is:

5.7.2.7 Resistance to temperature cycling

The test assembly shall be subjected to 1500 cycles of passage of hot and cold water in accordance with following schedule:

a) (30 ± 1) I of water at a temperature 1 min, at a constant rate of flow;

b) rest and drain period of 1 min; c) (30 ± 1) I of water at a temperature

1 min, at a constant rate of flow; d) rest and drain period of 1 min.

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Our test result is: 2.18 Internal coating: Resistance to temperature cycling

Test in accordance with 5.7.2 1500 cycles between 15°C at 93°C:

- degree of blistering: dimension 2, class 2 according to ISO 4628-2;

- degree of rusting: Ri 2 according to ISO 4628-3.

Why EN877? Compared with EN877, ASTM A888 cannot satisfy requirements in modern life. We use more chemicals than before, such as laundry detergents, dishwashers, sanitary cleaners and industrial salt (clean the snow), creating highly corrosive occasions. Furthermore, we use less water to flush the toilets, so 85% of water has been saved. But the acidity or the alkalinity of waste water has been dramatically increased, leading to higher requirements of anti-corrosion performance of cast iron soil pipes. Therefore, EN877 is indispensable.

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Conclusion

• HengTong EN877 pipes are totally different from US ASTM pipes.

• US manufacturers cannot produce the same products as ours.

• Obviously, our products, to the utmost extent, can satisfy various requirements that are continuously increasing in modern social development.

Messages from Mr. Zhao History shows that countries that seclude themselves from the world have no future. USA is not and should not be one of them. However, it is a pity that over the past twenty years, we have been refused for many times. MATCO-NORCA has been out of the market, and Star Pipe has also been out of the market. Maybe, one day, NewAge will be the same like them. But we are still here, develop with the times, strive for the excellence, and never stop.

USA is a country which advocates equality and freedom. Here, technological improvement and scientific development are encouraged. Americans and we think alike. Their rights to pursue higher quality life cannot be deprived.

In a word, HengTong should not be in the anti-dumping list.

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