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POWER OF PROCESS QUALITY OF SERVICE Železiarne Podbrezová a.s. belongs to the oldest metallurgical companies in Central Europe. Its history dates back to 1840.

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POWER OF PROCESS QUALITY OF SERVICE

Železiarne Podbrezová a.s. belongs to the oldest metallurgical companies

in Central Europe. Its history dates back to 1840.

Železiarne Podbrezová GROUP,

geographic location of members

2

Železiarne Podbrezová GROUP, members

3

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Notes:

- Slovak market is 4 % of total sales and 6 % of tube sales.

- Export Sales department of Podbrezova sales to territories: Hungary, former Yugoslavia and Soviet Union, its share of total sales is 28 % and of tubes 18 %.

- Transmesa, its share of total sales is 3 % and of tubes 4 %.

Železiarne Podbrezová GROUP, members

Sales and Marketing companies

PIPEX International, Nidau Switzerland • the company sales and distribution channel through which are sold

ŽP production in European and wolrd markets. Its share of total sales is 12 %, tubes 20 %.

PIPEX Italia, Arona, Italy

• the company is ŽP sales and distribution channel, which accounts for 18 % of total sales.

It operates on European and Middle East markets. Its share of tube sales is 23 %.

ŽP Trade Bohemia, Praha, Czech republic

• company is the distributor marketing ŽP and Transmesa products in Czech Republic.

Its share of total sales is around 22 % and tube sales is 12 %.

Slovrur, Stalowa wola, Poland

• company is the important distributor marketing the ŽP and transmesa products in Poland.

Its share of total sales is around 13 % and tube sales is 17%.

TS Steel pipe & Fittings, Bagnatica, Italy • Tube stock company that is operating products in Italian market.

ŽĎAS SGS,, Düsseldorf, Germany • company is the important distributor marketing ŽĎAS products in Germany.

Sales of core products, in year 2012

5

ESTIMATE OF CONTRIBUTION TO THE PRODUCTION OF SELECTED

PRODUCTS IN THE EU, in 1st half of 2012

Contribution to production, hot rolled seamless steel tubes 7,1 % total

production in the segment was 1 286 kt. (pipe lines and OCTG tubes excluded)

Production in EU ŽP production

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Contribution to production, precision cold drawn

seamless tubes is 9,2 %, total production in the segment was 257 kt.

Production in EU ŽP production

source ESTA, PRODCOM statistics

Market share

Geographical sales, 2012

7

Chart shows the company sale by countries in tons, (excluded con-cast bloom)

- 5 000 10 000 15 000 20 000 25 000 30 000 35 000

Poland

Italy

Czech Rep.

Germany

Slovakia

Hungary

Spain

USA

Serbia

Austria

Croatia

Holland

Turkey

France

Romania

South Korea

Great Britain

Belgium

Bulgaria

Slovenia

Others

Strengths

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1 Closed production cycle begins with the purchase and processing of steel scrap, continues with steel

and steel tubes production and it follows with finalization and transportation to the customer. All

activities are performed by companies associated under the name ZP Group.

2 Research and Development center belonging to the ZP Group and cooperation with the Faculty of

Metallurgy of the Technical University are the guarantors of progress and development of products,

services and technologies.

3 Developed global sales and distribution network, technical support, quick response to customer

demands and short delivery times.

4 Private Secondary Technical School and private High School of the company annually prepares more

than fifty graduates of the metallurgical profession.

5 Continuous modernization and optimization of technologies in the annual financial statements by an

average of 22 million. EUR.

9

Planned activities for investment development for year 2013:

• Dedusting of electric arc furnace and ladle furnace

• Total reconstruction of equipment for continuous casting of steel (september 2013).

Continuously cast steel billets

10

Steel scrap processing

Electric Arc Furnace (EAF)

Ladle Furnace (LF)

Continuously Casting Machine

Continuously cast steel billets

square cross-section

125, 150, 160, 180, 200, 225, 280 mm

circular cross-section

150, 180, 210, 240, 260, 280 mm

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Steel blooms applications :

Hot rolled tubes, steel flanges, steel forgings, steel rolled bars and profiles

Continuously cast steel billets

4 000 –10 000 mm

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billet → heating → sizing mill → piercing press →

elongating mill → push bench → withdrawal mill →

reheating → reducing mill → finalization

(cutting, straightening, testing, marking, packaging)

Seamless hot rolled steel tubes

OD: 21,3 – 139,7 mm

WT: 2,3 – 12,5 mm

production in 2010 → 169 941 t

production in 2011 → 183 099 t

production in 2012 → 193 886 t

Hot rolled seamless tubes

Production in acc: EN, ASTM, ASME, API, GOST,

JIS, DIN, BS, NF A, UNI, STN, ČSN, PN – H,

Tubes for mechanical and general engineering - 52,9 %

Tubes for power industry - 27,2 %

Line pipes - 15,4 %

Tubes for buildings - 4,4 %

Casing and tubing - less than 0,01 %

Power engineering

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We pay a great deal of attention to the production of quality

products designed for the energy-engineering sector as well as

the subsequent production of tubes and final heat processing.

Tubes are checked by the latest technology of non-destructive testing. Our tubes are heat resistant up to 600 °C / 1 110 °F

and withstand pressures of 16 MPa / 2 320 psi - X10CrMoVNb9-1 (P/T91).

Tubes intended for use in the energy industry are supplied as:

seamless ranging from 10 to 139 mm with a wall thickness from 1.6 to 12.5 mm

STEEL TUBES for high output, reliable and environmentally safe power plants …

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Železiarne Podbrezová is approved supplier:

Steel tube for pressure appliances

for room temperature pressure use

tubes for low temperature pressure use

boiler tubes for high-pressure use

fine grain steel tubes for pressure equipment

Steel tubes for heat exchangers

Boiler and exchanger tubes with internal riffling

Power engineering

The laboratory to verify the tube quality, including creep tests.

STEEL TUBES for high output, reliable and environmentally safe power plants.

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Power engineering

Jaworzno II

EVI Abfallverwertung B.V.

PKN Orlen

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Production in

2008 → 46 879 t

2009 → 25 124 t

2010 → 40 390 t

2011 → 47 389 t

Precision cold drawn seamless tubes

Tubes for machining and machine parts - 52,8 %

Tubes for hydraulics and pneumatics - 18,1 %

Tubes for automotive industry - 16,1 %

Tubes for heat exchangers - 11,7 %

Pipe lines - 0,9 %

Tubes for ball bearing - 0,3 %

Tubes for buildings - 0,1 %

Number of drawing benches: 23

Number of annealing furnaces: 7

Precision seamless

cold drawn steel tubes

OD: 4,0 – 120,0 mm

WT: 0,5 – 10,0 mm

Provided Heat treatment (acc. DIN and EN)

BKW (+LC) - cold finished / soft

BKS (+SR) - stress relieve annealing

GBK (+A) - annealed

NBK (+N) - normalized

BK (+C) - no heat treatment

Annealing atmosphere:

N2, N2+H2(2% or 3,5%), N2+H2(40%)+CO+CO2,

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• cutting off tubes

• internal and external end beveling

• skiving and roller - burnishing of inner surface of tubes

• bending of tubes

Zinc plated seamless precision steel tubes

OD: 4,0 – 42,0 mm

WT: 0,5 – 5,0 mm

• coating thickness 8 – 30 micrometers

• the second layer Cr (Cr6+ Free)

• after agreement it is possible to seal Zn/Cr coating

• additional PVC or polyester coating possible

• transparent passivation (An), iridescent passivation (Cn)

• marking Fe/Zn8/An/T0 (example)

Final treatment of precision tubes

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Machine

OD (mm) Wall thickness

WT ( mm )

Length

L ( mm )

Length tolerancies

( mm ) min. max.

Brehm 6 – Cutting 25 152 * 25 – 610 0,2-0,5

Píĺa ADIGE – Sewing 12 100 1 - 5 20 – 3 250 0,3-2

Wrt 8 – 500 - Brushing 8 60 od 1 30 – 500

ST 661 – Brushing 12 102 od 1 150 – 3 000

WM 612 – Washing 12 102 od 1 150 – 3 000

ECONOMY M – Beveling 10 70 1 – 4 20 – 190 0,15

ECONOMY V – Beveling 10 70 1 – 4 190 – 690 0,15

REIKA – Rotary cutting off 20 90 1 – 12 150 – 2 000 0,15

SIN-O- Matic 1,2 – Sewing 12 81 1 – 6 20 – 340 0,05

ADIGE CM 502 - Sewing 12 76 1 – 7 (20)35 – 600 0,05

Cutting off and beveling

Machine

OD (mm) Wall

thickness

Length L (mm) max. Rm bend (mm) max. angle

of bent arm

Tolerancies of

bend angle ( ) min. max. with mandrel without mandrel with a contact strip with rollers

BM42IMC 16 42 up to 3 3 000 3 700 130 260 187° 1

Machine diameter ( mm ) Wall

( mm )

Length

( m ) Inside diameter tolerancies

ID OD

TBSR 6500 – skiving and burnishing 40 - 110 50 - 130 5 - 10 3 - 6 H 8, H 9

Bending

Tubes for hydraulics cylinders

Final treatment of precision tubes

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Tubes are produced using several technologies and supplied as:

precision seamless cold drawn steel tubes, within the range: from 4 to 120 mm with wall thickness from 0.5 to 10 mm

Automotive

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Hydraulics a pneumatics

Tubes for manufacture of cylinder barrels: precision seamless tubes for mechanical treatment – HPZ, ID 40-115 mm (after agreement up to 160 mm), WT 4-10 mm,

precision seamless tubes "ready to use" – HP, ID 40-110 mm WT 4-10 mm ((after agreement welded tubes)

Tubes for manufacture of pistons and telescopic cylinders: precision seamless tubes – HPK, ID 40 -120 mm WT 5 - 10 mm Tubes for hydraulics pressure lines tubes for pressure hydraulic and pneumatic lines – HPL, OD 6-80 mm ID 4-55 mm galvanized tubes for pressure hydraulic and pneumatic lines – HPL, OD 4-42 mm WT 0,5-5 mm

OUR PRODUCTION IS PRECISE not only in term of dimensions – but also in terms of deadlines ...

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Examples of use of tubes and tube semi-finished products as the input semi-finished products are as follows: hydraulic cylinders high-pressure hydraulic distributions pressure vessels ball bearings parts and axles of engineering units construction units of processing machines bases and support of machines construction parts of cartridges and containers preparations for tools parts of agricultural machinery conveyor belts parts of ships

Machinery

OUR PRODUCTION IS PRECISE not only in term of dimensions – but also in terms of deadlines ...

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Total sales in years 2008 - 2011: 1 190 tons

Steel cylinders are manufactured in accordance with

applicable EN / ISO regulations and technical

specifications. Raw material is chrome-molybdenum

steel 34CrMo4.

- Seamless steel cylinders for industry gases

- Seamless steel cylinders for compressed natural gas

- Seamless steel cylinders for fire equipment

- Seamless steel cylinders for beverage and drinking devices

- Seamless steel cylinders for acetylene

Machinery

STEEL TUBES for high output, reliable and environmentally safe power plants.

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Gea Batignolles Technologies Termiques, France

- process air cooled heat exchangers

Doosan Mecatec, South Korea

- shell & tube heat exchangers

FBM – KNM Group, Italy

- heat exchangers, air coolers, boilers

Ravagnan, Italy

- heat exchangers, pressure vessels

Power engineering

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Butt welding Reducers

OD1: 21,3 – 88,9 mm

OD2: 26,9 – 114,3 mm

WT1: 2,0 – 3,2 mm

WT2: 2,3 – 3,6 mm

Butt welding

Elbows

OD: 21,3 – 610,0 mm

WT: 2,0 – 12,5 mm

Large diameter welded

steel tubes

D: 323,9 – 2235,0 mm

t: 5,0 – 25,4 mm

Other products

Civil engineering - 78,7 %

Power industry 21,3 %

Surface treated by

sand blasting

25

Predaj výrobkov iných výrobcov

Seamless tubes:

OD: 273,0 – 610,0 mm

WT: 9,5 – 72,0 mm

Welded tubes:

OD: 26,9 – 219,1 mm

WT: 1,8 – 8,0 mm

* Possible zinc plating

Cold drawn steel tubes,

delivered in coils

OD: 4,0 – 18,0 mm

WT: 0,45 – 2,5 mm

For injection devices of combustion (Diesel) engines

sizes 6x1,8; 6x2,1; 6x2,125; 6x2,2; 6x2,25 mm, made

from steel grade St 30Al, are delivered.

Depending on tube size there is tube of 60 - 400 m

length in coil.

PIPEX Italia, S.p.A.

Via Paleocapa 10

28041 Arona, Italy

phone: +39 0322 235511

fax: +39 0322 44659

www.pipex.it

[email protected]

ŽP TRADE Bohemia, a.s.

Ztracená 272

16100 Praha, Czech republic

phone: +420 235302307

fax: +420 235300760

www.zptrade.cz

[email protected]

SLOVRUR, Sp. z o.o.

Brandwicka 138

37464 Stalowa Wola, Poland

phone: +48 15 8448045

Fax: +48 15 8420234

www.slovrur.pl

[email protected]

TRANSMESA, S.A.

Calle de la industria, 10

08330 Premia de Mar, Spain

phone: +34 93 7549200

Fax: +34 93 7523847

www.transmesa.com

[email protected]

TS Steel Pipe and Fittings, S.r.l.

Via F. Ili Kenedy, snc

24060 Bagnatica (BG), Italy

phone: +39 035 687560

Fax: +39 035 676278

www.tssteel.it

[email protected]