Sunne, Sweden - 9 February 2007

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1 UDDEHOLM GRADES IMPROVE PERFORMANCES IN THE PRODUCTION OF MANNESMANN DMV STAINLESS STEEL TUBES FOR AUTOMOTIVES - COLD WORK EXPERIENCES - Sunne, Sweden - 9 February 2007

2 DMV Mission Mannesmann DMV Stainless (short: DMV) is a global player in stainless seamless tube production DMV puts the customer in the focus of all its activities and acts as their business partner DMV always aims for improvement and perfection in quality and service and develops innovative approaches

3 Mannesmann DMV Stainless at a glance Dalmine Mannesmann Vallourec % Mannesmann Röhrenwerke 2006 Manufacturer of seamless stainless steel and nickel basis tubes 320 Mio. sales approx employees t (~10.000km) p.a.

4 Mannesmann DMV Locations Houston/Texas USA Mülheim (HQ) Remscheid Germany Montbard France Costa Volpino Italy

5 Costa Volpino plant presentation Mannesmann DMV Stainless Italia Srl - Via Piò, Costa Volpino (Bergamo) - Italy Homepage : Phone (0) Fax (0)

6 Costa Volpino main figures (2006) PRODUCTION : 8800 T/year (~8000 Km) OVERALL SALES : 110 million EMPLOYEES : 292 INDUSTRIAL SITE : sq.m DMV PLANT : sq.m (covered and uncovered area)

7 DMV products & applications Max. Ranges Diameter mm Wall thickness mm Length up to 25 m Main Applications Chemical and petrochemical industry Energy industry and power plant manufacturing Environmental technology and waste incineration plants OCTG (Oilfield applications) Mechanical engineering and automotive

8 Sales by market segments SALES BY MARKET SEGMENT FIGURES Oil & Gas 4% Power Generation 9% Others 14% Mechanical Engineering and Automotive 13% Chemical- Petrochemical 60%

9 DMV products material groups Stainless Steel Corrosion Austenitic Steels 304 L 316 L Super Austenitic Steels Duplex & Super Duplex N Nickel Basis Alloys Corrosion and Temperature Pure Nickel Materials Nickel-Copper Alloys Austenitic Nickel Alloys Ferritic Steels Stainless Steels Temperature Special Materials 304 H/HCu N 347 H 800 H AC 66 Titan Alloys Grade 1 Grade 2

10 DMV products Automotive applications Main automotive applications: Tubes material: DMV 304 L (UNS S 30403) - 10 x 1 mm: Oil stick tube for top class cars - 13,2 / 17 x 2 mm: fuel injection collector (four cylinders) - 20 x 2 mm: common rail collector (2007 project) EXAMPLE IMAGES

11 DMV products Automotive applications Other applications: Tubes material: DMV 304 L (UNS S 30403) / DMV 316 L (UNS S 31603) Dimension: 6 x 1 mm, 7 x 1 mm, 8 x 1 mm, 8 x 1,5 mm: - Heating system for windows cleaning tank - Cooling circuit - Fuel feeding - Braking circuit system - Airbags - Headrest - Seats main structure - Side impact bar (cold hardened) EXAMPLE IMAGES

12 The DMV production technologies Hot production Cold working Billet Extrusion mandrel Pilger mandrel Tube Extrusion ram Billet container Die Tube Tube blank Plug drawing Pilger rolls Tube Tube blank Drawing ring

13 Overview of pilger mill (Meer SKW 50 type) The process movie

14 Pilger mill Stress distribution Components stress: - Mandrels: Compression, Tensile, Bending, Torsion, Fatigue. - Dies (Rolls): Compression, Fatigue. Cross section trough the forming zone with stress distribution. ( Finite Element Method ) Main concept: To produce small stainless steel tubes we need high quality tools such as UDDEHOLM GRADES to prevent failure mechanism.

15 Pilger mill Failure mechanisms Typical failure: - Mandrels: Wear, Plastic deformation, Cracking, Galling. - Dies (Rolls): Wear, Chipping, Cracking, Galling. Cross section of tube pilgering process.

16 Pilger mill Dies/Rolls Failure mechanisms Dies/Rolls : Chipping, Galling, Cracking.

17 Pilger mill Mandrels Failure mechanisms Mandrels: Adhesive wear (galling), Abrasive wear, Chipping, Plastic deformation

18 Pilger mill Dies/(Rolls) Case Study Application: Customer: Worked material: Notes: Stainless steel tubes for Automotive DMV Austenitic stainless steel (DMV 304L 6 up to 16 mm O.D.) Dies dimensions: diam mm standard ORVAR SUPREME CALDIE HARDNESS >54 HRC >56 HRC requested HEAT TREATMENT FAILURE MECHANISM PRODUCED PARTS (meters) HEAVY CHIPPING Average mt No standard high aust temp CHIPPING Average mt >57HRC CHIPPING Test in progress Actually mt Better toughness at high hardness

19 Pilger mill Mandrels Case Study Application: Stainless steel tubes for Automotive Customer: DMV Worked material: Austenitic stainless steel (DMV 304L 6 up to 16 mm O.D.) Notes: Mandrel dimension: 3.5 mm up to 20 mm ~1.2380/VANADIS 4 VANADIS 4EXTRA VANCRON 40 HARDNESS HRC HRC HEAT TREATMENT FAILURE MECHANISM PRODUCED PARTS (meters) Standard Chipping and breackage Average mt Standard Wear and breakage Average mt Next Future

20 Obtained benefits - Dies: Tool life increased by ~ 30% Material cost difference: + ~ 11% (Orvar Supreme compared with Orvar 2) - Mandrels: Tool life increased by ~ 20-25% Material cost: about the same (Vanadis 4Extra compared with Vanadis 4) DMV production advantages: Pilger mill parameters : increased number of strokes per min. Production stops and set-up : reduced number of tool changes. Surface quality : better quality of the finished tubes, less galling. Pilger process lubrication : chlorine free. Reduced production costs.

21 Future The DMV target is to use high performance steel tools to achieve: efficiency, quality, cost saving & production reliability. How? Reliable supplier continuous technical support optimised processes high performance materials.

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