NON-TECHNICAL SUMMARY (Meltshop upgrading ABS Sisak d.o.o., Croatia)

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1 1. INTRODUCTION NON-TECHNICAL SUMMARY (Meltshop upgrading, Croatia) 1.1 A.B.S.- Sisak d.o.o. ABS Sisak is a Steel Factory located in Sisak, 50 km south of Zagreb, the capital of Croatia. The factory is registered as and owned by Italian Group Danieli and belonging to steelmaking sector (ABS ITALY lead partner). The factory produce steel blooms using scrap, by Electric Arc Furnace and Continuous Casting Technology. 1.2 ABS ITALY ABS ITALY (ABS) was established in 1988, after the merging of two highly qualified and longexperienced companies, 'Officine Bertoli' founded in 1813 and 'Safau', whose origin dates back to The long-term experience in steelmaking, together with the spirit of innovation of Danieli Group, ensure the necessary leadership to satisfy the requirements of the most demanding markets. ABS is determined to continue on the path of social awareness and responsibility in terms of Health, Safety, Environment and Future. 1.3 SUSTAINABILITY ABS is deeply involved in every aspect of sustainability. The concrete projects and the considerable investments in Health, Safety, Environment and in the future of our territory represent the tangible demonstration of such commitment. The concreteness, the determination, the tradition and innovation that we apply in our products and services, are the same that characterize the vision and actions of ABS in taking its social responsibility as a priority. 1.4 ENVIRONMENT ABS invest strongly for the preservation of the environment. Such investments are aimed at improving and preserving the air we breathe, reducing water consumption in the producing process, reusing slags.

2 Environment policy will be an integral part of ABS Sisak d.o.o business policy and strategy. Production and transport of the products in the agreed quality and within delivery dates, together with the economical usage of all the resources, constant improvement of product quality and continual care for the environment, are the basic preconditions for profitable production and competitiveness of the company. In order to fulfil its obligations determined by the law and legal acts of the Republic of Croatia, will thoroughly applying activities in the field of environment follow-up, its protection and improvement. This implies the following: collecting data regarding the environment status at, program making and application of all the necessary environment measurements for its protection, as well as decreasing the effect of technological processes to the environment and trying to harmonize the activities of with legal and other regulations. In the follow-up on the steel production and its influences to the pollution of the environment, all ecosystems are covered: air, water, soil and the degree of spreading waste in the environment. reportedly runs its activities in compliance with the current Croatian environmental law. It is to be expected that future environmental legislation will impose significant additional technological, emission control and monitoring requirements, including investment needs, on the works. 1.5 OCCUPATIONAL, HEALTH AND SAFETY The steelmaking environment is by nature one of the most hostile and dangerous. Precisely for this reason, ABS decided to invest heavily in the safety of its employees. Through an ongoing project, in terms of staff training and corporate culture, combined with massive investments in the plants' technology, ABS is committed to pursuing the goal of zero injuries. ABS is committed to combining the reduction of risky behaviours of employees and health promotion through a challenging educational process. ABS Sisak will carry out following OHS prevention and protection measures: - Practical training by means of working alongside the Head of Department and assessment of the effectiveness of training. - Audit in the departments to assess the level of learning of employees. - Assessment of all the risks present in the plant with reference to each job and including protective measures and plans for improvement. - Monitoring plan for the detection of the specific risks above listed.

3 - Procedures for the protection against chemical-biological and radio emission risks elaborated following risk assessment. - PPEs provided in relation to the activities in the various departments according to the risks present in the work place. - Procedures to ensure that safety rules are respected by means of appropriate forms and audit plans in the departments. - Preparation of emergency plan and operational instructions for evacuation and first aid: selection of emergency and first aid teams, training of the teams, instructions to all workers relatively to emergency scenarios. - Before the beginning of the activities on site, an operational safety plan will be devised. - The transportation of hazardous material entrusted to authorized companies only. 2. THE NEW PROJECT 2.1. OVERVIEW The meltshop now consists in an EAF (Electric Arc Furnace) and a LF (Ladle Furnace), a Continuous Casting Machine (CCM) and two Fumes Treatments plants. The modernization consist in improving the quality of steel produced (special steel) and volume, by means: - a new refinement secondary metallurgic station type VD (Vacuum Degassing); - revamping of Continuous Casting Machine (CCM); - installation of new evacuation crane; - improving performance of fume treatment plant for LF; - increasing productivity introducing automatic process; - review of production process focusing also the optimization of material flows and logistic; - increase safety in work operations; - reparation of buildings, internal roads, railways, fencing, gates; - Modernization of data network, telecommunication system, surveillance and data protection SITE LOCATION ABS Sisak is located in the town of Sisak, in the center of Sisak-Moslavina County.

4 The area that belongs to ABS Sisak from downtown Sisak is about 4 km and from town's populated areas 1 km. On the east it is surrounded by the railway Zagreb-Vinkovci and Zagreb- Split and on the northside populated area Caprag is located. ABS Sisak has own railway and its connected with Croatian railways; state road passing through the ABS Sisak area PRODUCTION TECHNOLOGY/TECHNOLOGIES The aim of project is to improve the quality of the products at metallurgical level increasing the treatment time in the degassing system, using vacuum technology. Here below it s a diagram showing the new plant and auxiliaries: EXISTING METALLURGIC PROCESS: From the Electric Furnace (EAF), the ladle containing liquid steel is lifted by crane and placed on a car to be moved to existing Ladle Furnace station (LF), consisting of a cooled roof to cover the

5 ladle and electrodes, supported by arms, to heat the steel by electric arc and maintaining temperature suitable to the process of refining, that occurs by the addition of ferroalloys directly into the ladle through a suitable duct located in the cover lid. The cover lid is equipped with a duct for the extraction of fumes which are conveyed to the existing fume treatment plant. The ferroalloys are transported from storage silos (divided in the required types) conveyed in hoppers into the liquid steel. NEW SECONDARY STATION PROCESS: Following the refining treatment in LF, the ladle (moved by the crane) is introduced inside the VD plant for the refining treatment by vacuum degassing furnace. The final refining is made, in order to obtain steel with very low levels of hydrogen, nitrogen and micro-inclusions such as to guarantee a greater homogeneity and thermal stability. The process of the degassing under vacuum is obtained by a vacuum pumping system. The process requires the abduction of more ferroalloys (MHS) in the ladle located inside the Vacuum Degassing (VD). The Vacuum station mainly consists of: - Vacuum tank, provided of emergency steel outlet in the lower part of tank bottom. - Vacuum tank cover - Cover car unit - Vacuum additive charging hopper - Sampling device measuring system - Pipes line: between the vacuum tank and the pump; - Vacuum pump station; - Bag filter for vacuum station (Textile filter) - Wire feeding system. All the operations are processed when the VD s cover is closed; fumes are convoyed to the existing fume treatment plant (bag filter 1). Additional ferroalloys are fed to VD station by a Material Handling System (MHS) provided of a dedusting system, which convey fumes to treatment plant (bag filter 1).

6 At the end of the secondary refining treatment, the ladle is moved from the VD to the existing Continuous Casting Machine (CCM), for casting operations. Continuous Casting Machine will be equipped with new Ladle turret. Other auxiliary equipment foresee are: - Ladle preheating station - Ladle poor off station, consisting of ladle vertical stand for full ladle - Ladle refractory wrecking station; - Ladle deslagging station; - Ladle relining stand. The liquid steel flow from tundish to mould, were the first solidification of steel take place. The cooling chamber is located under the mould, the secondary cooling solidifying shell thickness. The straightening and extracting system is composed by a set of modules per strand. After straightening blooms are cut by an oxy torch system, the fumes are conveyed to Fume Treatment plant. After cut blooms are picked-up by crane and stored in a cooling area. Into the new building there is also a scale pit for the cooling water treatment and scale recovery PRODUCTION CAPACITY AND PRODUCT

7 2.5. KEY BENEFITS OF THE PROJECT The aim of the new upgrading is to improve the organization of production, the storage and handling systems, increase the metallurgical quality of steel by Vacuum Degassing (VD), enlarge the size of products with revamped and upgraded Continuous Casting Machine (CCM ). Equipment installed shall fully comply Directive 2006/42/EC - CE marking and CE conformity declaration. 3. ENVIRONMENTAL OBJECTIVES OF THE PROJECT 3.1. EMS and OHSAS Integration and systems in place After realization of the upgrading project the Integrated Management Systems implemented in Italy will be gradually applied for new Croatian plant too Resources ( N/G, electricity, water, raw materials) For the steel factory, main resources are electricity, water, gases, scrap. Electricity will be supplied by the state owned company HEP. Fresh water will be taken from the Sava river. The drinking water to ABS Sisak will be provided by the city water supplier. Natural gas for burners, fires and torches will be supplied via public network that the Company is connected to. Technical gases will be purchased from suppliers and the air will be compressed in the own compressor station. Scrap can be supplied by either train or truck. The scrap yard has capacity of tones Emissions: Air, water, non hazardous and hazardous wastes AIR Planed environmental measures: - existing fume treatment plants; - revamped fume treatment plant outside of the existing building.

8 The obtained results of emission concentrations for CO, NOx, solid particles as well as PCDD/F have ever been in line with the Croatian Regulation on limit values for pollutant emissions from stationary sources into the air and Recommendation for dioxins and furans maximum concentration level from Croatian Ministry. Expected amounts of air emissions are reported in following table Pollutant Nitrogen compounds ( as NO2) Unit Expected Emission Concentrations CROATIAN Max Conc Level mg/nm3 < Carbon monoxide (CO) mg/nm3 < Solid particles mg/nm3 <1,5 20 PCDD/PCDF ng I-TEQ/ Nm3 <0,025 0,1* *not form Croatian law but from Best Available Technologies All values are estimated on the base of maximun emissions during the period and of performance of all treatment plants. WATER Industrial process waste water from all production facilities will be pre-treated (scale is removed in settlings ponds), and then mixed with sanitary waste water and storm water and, after mechanical filtering and oils and grease removal, finally discharged off to Sava River. Equipment will be in accordance with latest technology in water plants. The testing of waste water quality is done once a month according to the requirements of the Regulation on operations and maintenance of the waste water treatment plant and collection system and its quality satisfies local guidelines for waste water discharges to surface waters. Collected oils and grease will be handed over to the supplier for reuse. WASTES Temporarily disposed non-hazardous waste will be handled by authorized collectors. Electric Arc Furnace (EAF) dust and Ladle Furnace (LF) dust are hazardous wastes and will be handled by authorized collectors. Liquid hazardous waste which consists of worn hydraulic oils, non-chlorinated emulsions and worn waxes and lubricants, will be temporarily stored in marked barrels, and handled by producers or suppliers, with green services.

9 3.4. Noise at boundary There will be no noise impact at the boundary. However, noise at the boundary and at a point that the nearest house can be effected will be monitored according to the legislation requirements by authorized laboratories and data of monitoring will be reported to relevant authorities. KEY CONTACT for the site ABS SISAK d.o.o. B. Kavurica, 12 Tel Info.sisak@absacciai.it Andrea Landini - General Manager

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