Head Office & Plant 1 32, Jeongsin-ro, Jeongeup-si, Jeollabuk-do, KoreaHead Office & Plant 2 22-6, 2 Sandan 6-gil, Jeongeup-si, Jeollabuk-do, Korea Ansan Plant 19, Byeolmang-ro, Danwon-gu, Ansan-si, Gyeonggi-do, KoreaTEL +82-63-530-9600 FAX +82-63-537-7512 www.scsteel.net

BEST QUALITY, COMPETITIVE PRICE AND SERVICESechang Steel Co.,Ltd

BEST QUALITY, COMPETITIVE PRICE AND SERVICE

Prioritizing customer satisfaction with the best quality and competitive pricing

Prioritizing customer satisfaction, Sechang Steel Co., Ltd. was established in 2001 when the

management took over the facilities and technologies of Sechang Pipe Industry, which were considered

the best in Korea.

Sechang Steel holds pride in having contributed to the development of national material industries by

turning general steel pipes used for various purposes into special precision cold rolling and drawing

pipes manufactured according to exact customer specifications as well as by producing hydraulic

cylinders for automotive tubes, industrial use and heavy equipment, gas cylinders for furniture and

industrial use, and carbon steel pipes for aluminum bobbins and shipping top-quality products to the

related industries both domestically and abroad.

In 2008, Sechang Steel became the first to introduce seamless pipe manufacturing facilities and

technologies into Korea and has since been supplying a range of steel products domestically and

internationally, and thus substituted items that had previously been imported from the U.S., Japan and

China. Currently, Sechang Steel is producing seamless automotive tubes and winning recognition for

its technological prowess by exporting products to the U.S. and Germany, the automobile production

leaders. Sechang Steel has achieved this result based on the trust it has continuously earned from its

customers and will dedicate greater efforts in the future as it enters its next phase of growth.

Thank you.

GREETING 0302

ABOUT COMPANY 0504

A company that grows with its customers, Sechang Steel leads the future.

Sechang Steel Co., Ltd. is prioritizing competitive pricing, the best quality and on-time

delivery to achieve only the highest customer satisfaction.

Company Name Sechang Steel Co., Ltd.

CEO Jae-Seon, Lee

Date of Establishment March 26, 2001

Capital KRW 6 billion

No. of Employees 106

Company Scale SMB

Business Type Metal rolling, automotive component manufacturing

Key Production Itemsseamless steel pipe (automotive components, heavy equipment components, hydraulic cylinder, aluminum bobbin and other mechanical structures)

OVERVIEW

● Korean exports have been continuously increasing as a result of the signing of various

FTAs and widespread technological improvement throughout national industries. Sechang

is certainly no exception as it has entered into a supply contract with NEXTEER, a global

automotive parts maker in the U.S. which has enabled it to export products to global

markets, such as the U.S., Mexico and China. And the volume of orders continues to grow.

● In the past, Korea depended entirely on imports for seamless alloy and carbon steel pipes.

Sechang Steel responded by developing the required technologies and thus has produced an

import substitution effect and accomplished foreign currency acquisition through export.

● Sechang Steel has more recently been developing and producing key automotive

components and supplying them in Korea and abroad. This not only contributes to foreign

currency acquisition while reducing imports, but is also expected to accelerate Korea’s

industrial development and have a considerable impact on related industries.

COMPETITIVE POWER

CLIENTS

Chairman

President Research Center

Quality Assurance Team

Dept. of Seamless Pipe Business

Dept. of Drawing Pipe Business

Sales DivisionPurchasing and

Outsourcing DivisionManagement

Support DivisionManufacturing and Production Division

ABOUT COMPANY 0504

ORGANIZATION

VISION

To grow to a global steel pipe specialist based on technological power

Building foundation

Growing Taking off IPO

1step

Stage of technology development and production infrastructure establishment

2step

Stage of mass-production and sales stabilization

3step

Stage of growth and market share expansion in Korea and abroad

Advancing to the global stage with technological competitiveness

Advancing to becoming a global steel pipe specialist based on its corporate culture

that emphasizes communication, cooperation and innovation, Sechang Steel Co.,

Ltd. has entered global markets starting with the U.S. and then to Mexico, China,

Iran, Japan, Malaysia and Indonesia where its technological competitiveness has been

recognized.

Company Country Type Place Application

NEXTEER U.S.A Seamless Export Automotive Cage Blanks, Half Shafts

NEXTEER China ERW Export Shaft Blank Tubular

SEOJINCAM KOREA ERWLocal

Automotive CamshaftExport

SAMHONGSA KOREA ERW Export Light industry Gas Cylinder Tube

ERAE CS KOREA Seamless Local Automotive Drive shaft

IRAE AUTO MOTIVE SYSTEM

KOREA ERW Local Automotive Cage Blanks

KOREA Seamless Local Automotive Steering Column

DONGYANG KOREA ERW Local Heavy industry Hydraulic Cylinder Tube

SAM-AALUMINUM

KOREA ERW Local Aluminum Bobbin

GKN&OTHERCUSTOMER

U.S.ASeamless

ERW

Export Over 100 other customer

Local

ISO 14001 TS 16949 ISO 9001 Certification for Company of Excellent Result in

Technological Assessment

Leading Company Designation

Root Technology Specialist Designation

Parts and Materials Specialist Certification

Certificate of Patent Affiliated Research Center Certification

Certification of Tower of Export Award

QUALITY ASSURANCE 0908

HISTORY

LICENSE

1975. 05. 02 Established as Sechang Pipe Industry 1979. 12. 31 Completed Banwol Plant, moved head office and

plant2001. 03. 26 Incorporated 06. 29 Capital increased (KRW 500 million) 04. 25 Joined the Korea International Trade Association2004. 04. 15 Obtained ISO9001 certification 11. 24 Obtained ISO14001 certification2006. 04. 06 Changed trade name to Daedeuk Steel Co., Ltd. 04. 19 Capital increased to KRW 1.5 billion2007. 12. 07 Signed corporate transfer agreement,

CEO Lee Jae-seon took office 12.17 Capital increased to KRW 2.5 billion2008. 05.08 Established affiliated research center 05.28 Obtained parts and materials specialist

certification 07.17 Changed trade name to

Sechang Steel Co., Ltd. 07.22 Obtained INNO-BIZ certification 09.24 Introduced seamless pipe manufacturing facility2009. 03.11 Applied for patent on seamless pipe

manufacturing device 04.24 Obtained venture company certification 06.30 Designated as a parts and materials technology

development business operator 12.02 Won Prime Minister’s Award and Knowledge

Economy Minister Citation 2010. 02.03 Obtained ISO/TS 16949 certification 09.03 Designated as a company of excellence in

productivity improvement

12.14 Won Prime Minister’s Award (parts and materials technology development)

2011. 08.23 Obtained patent on seamless pipe manufacturing device

09.01 Selected as a promising SMB by Gyeonggi Province

2012. 09.06 Entered into MOU for company moving and investment with Jeongeup-si, Jeollabuk-do

11.01 Won Presidential Award (parts and materials technology development)

11.29 Won Knowledge Economy Minister’s Citation (local economy activation)

12.31 Capital increased to KRW 3.5 billion2013. 06.30 Moved plant, head office and research center to

Jeongeup-si, Jeollabuk-do 11.28 Obtained JIS (Japanese Industrial Standard)

certification 11.29 Obtained MAIN-BIZ certification 12.10 Won Ten-million-dollar Tower of Export2014. 12.04 Minister’s Citation for local investment activation

and local industry promotion 12.28 Capital increased to KRW 6 billion2015. 05.27 Prime Minister’s Citation for SMB fostering 12.07 Won 20-million-dollar Tower of Export –

The 52nd International Trade Day2016. 03.29 Won Minister’s Award for Technology

Commercialization Category at Industrial Technology Award

06.10 Designated as a root technology specialist 07.08 Designated as a leading company in Jeollabuk-do

Sechang Steel thinks only of the best quality

For over 40 years, Sechang Steel Co., Ltd. has been dedicating efforts to achieving

only the best quality using its optimal infrastructure.

PRODUCTS 1110

Seamless Steel Pipe

● For automotive components● For ship engine components● For heavy equipment and

mechanical structures● High-pressure and high-strength

industrial steel pipes

Precision cold-drawing steel pipe

● For automotive components● For mechanical structures● Industrial hydraulic cylinder● Industrial gas cylinder● For shipbuilding, maritime and

petrochemical industries

BUSINESS AREAS

PRODUCTS

Steering device, Cam shaft, CV cage, etc.

Industrial and heavy equipment hydraulic cylinder

Automobile gas cylinder Hydraulic cylinder

Automobile cam shaft

CV Joint Cage

Automobile drive shaft

Chain part for ship engine

Creating new values resulting from a wealth of expertise

Sechang Steel Co., Ltd. is creating and supplying products according to

customers’ exacting specifications. The products created with its independently

developed technologies as well as accumulated expertise have brought innovative

accomplishments in energy saving and productivity improvement. Sechang Steel will

achieve sustainable growth by continuously creating new values based on R&D.

1. Cutting 2. Centering 3. Inductive Heating 4. Heating in thermostat 5. Piercing 6. Heating of shell 7. Elongating of shell to pipe 8. Calibration 9. Controlled cooling of finished pipe

● 1 and 2 show metallurgical texture of Ti-Alloy● Fig 1 shows a vertically elongated banded

structure. This indicates mechanical weakness

in a specific direction.

● Fig 2 shows the texture under isostatic pressure. A specific directivity is not found

and mechanical properties, such as tensile

strength and impact value, have been

considerably improved.

Texture of extrusion-type product Texture of Sechang Steel’s product Sechang Steel’s product

Comparison of Product Textures

Summary of Manufacturing Technology DifferencesClassification Drilling Extrusion Roll Piercing Remarks

Metallurgical Texture

Directional texture (metal floor formation in a straight-line direction)

Uniformed texture (spiral-type metal floor)

Durability improved

Mechanical Properties

Vulnerable in a specific direction Uniformed mechanical properties Particularly superior in terms of impact resistance

Thickness Good Excellent Post-processing applied

Production Cost High Low

Applications Special steel, stainless steel Special steel, carbon steel, alloy steel Ti

Price Competitiveness

Low High

Durability Good Excellent

PRODUCTS 1312

SEAMLESS STEEL PIPE

DRAWING PIPE

Production Flow

Special Cold-drawn Pipe

Production Process

Technological Competitiveness

Manufacturing Process

A. Sechang Steel

As piercing is possible without

frilling, loss is reduced considerably

in comparison to process B. Round Bar

Elongation

piercing

B. Other Companies

Drilling is necessary before drilling

extrusion. This causes a loss.

Round Bar Drilling

Mass loss

Swaging Machine

Pickling & Surface

Draw BenchHeat Treatment

Furnace

Straightening N-D-T DeliveryCutting

● Sechang Steel produces precision cold-drawing steel pipes using ERW (electric resistance welding) and seamless pipes according to customers’ requirements on

internal and external diameters, thickness, hardness and surface roughness.

● Sechang Steel produces precision cold-drawing steel pipes for a wide range of industrial applications, such as automotive components, hydraulic cylinders in

heavy equipment, farming machinery, gas cylinders, aluminum bobbins and other

machines and instruments.

PRODUCTS 1514

INSPECTION EQUIPMENT

ROCKWELL HARDNESS

METALLURGICAL MICROSCOPE

U.T.M.

SHAPE MEASURING

E.C.T. & U.T.

SURFACE ROUGHNESS

As a pioneer of advanced manufacturing technologies in Korea, Sechang Steel has always contributed to the advancement of the nation's parts and materials industry.

Having been the first in Korea to establish a manufacturing facility for rolling–drilling

by heating up round bars, Sechang Steel Co., Ltd. has been producing various

shafts and suspension components that reduce the weight of automobiles as well

as heat and corrosion resistant pipes for the mechanical, shipbuilding and maritime

engineering parts and pipes used in power generation facilities.