Balanced and Integrated Fabrication Facility for Metric tons per year Modified Boron and Fluorine free E-Glass (E-CR) Fiberglass

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1 APPENDIX 1. Balanced and Integrated Fabrication Facility for Metric tons per year Modified Boron and Fluorine free E-Glass (E-CR) Fiberglass SITE LOCATION: Zonouz Industrial Zone, Marand, East Azerbayjan Prov., Iran ISSUE DATE: DOCUMENT NO.: REVISION: 01 MARAND GLASS FIBER DEVELOPMENT COMPANY (MGF Co.) Address: No. 3, 23 rd Alley, janbazan Blvd., Farshi Moghaddam St. (16 th ), North Kargar, Tehran , Iran. Tel: (9821) , Fax: (9821) , website:

2 Page 2 of 6 1- PROJECT GENERAL SPECIFICATIONS - Title: - Capacity: MT/YEAR - Glass Type: E-CR Glass or Boron and fluorine free Modified E-Glass - Product Mix: Type Direct Roving Assembled Roving Chopped Strand Filament Diameter (µm) Linear Density (gr/km) Cutting Length (mm) Production Capacity (tons/year) To Applications Pultrusion, Filament winding, Weaving, Texturizing, LFT, Tissue, CSM, CFRT, GRP/GRE/FRP chopping for pipe, Spray-up, CSM, Filament Winding, GMT, Panel, Gypsum, GRP/GRE/GRV CSM, BMC, in Thermoplastics (PP/PE/ PC/ PA/ PBT/PET/ABS), GRP/GRE/FRP - Technology requirement: Advanced technology and state of the art Know-how with low cost formula (using locally available raw materials), high melting rate furnace, high efficiency process and equipment, low energy consumption - Target Markets: civilian applications including GRP/GRE pipes, chemical vessels, composite parts, marine industries, building materials, Transportation,... - Execution period: 2 years for whole project and 18 months for EP contract. - Type of Contract: Engineering and Procurement (EP) of main equipment and machineries as well as commissioning, training, supervision and startup. Construction and installation will be done by local contractors with the supervision of selected Bidder (bidders). - Estimation on Contract Value: Estimation of the investment: about 40 million Euro for the subject of tender (EP) including Precious Metals. - Financing: Local Banks, Shareholder s Equity, Foreign Finance 2- PROJECT OWNER - Company: MARAND GLASS FIBER DEVELOPMENT COMPANY affiliated to INDUSTRIAL DEVELOPMENT AND RENOVATIN ORGANIZATION OF IRAN (IDRO) - Funded on 11 November Registered capital: 850 Billion Rials (~ 25 Million Euro) 3- LOCATION OF PROJECT - Zonouz Industrial Zone, Marand city, East Azerbayjan Province, Islamic Republic of IRAN

3 Page 3 of 6 4- DESCRIPTION OF THE PROJECT AND TENDERING PROCESS Marand Glass Fiber Development Company (BUYYER) intends to purchase engineering services, machineries and main equipment for production of Metric Tons per year Glass Fiber (Modified Non-Boron & fluorine ECR) Plant as well as commissioning, training, supervision and startup services through well-known and qualified technology and equipment providers. Tendering has been planned in two stages: - Stage 1: Pre-qualification According to the announcement and submission of the requested documents by interested and qualified Applicants, the eligible bidders will be determined by BUYER after assessment of applicants by BUYER's technical committees. - Stage 2: Selection of Contractor Interested and qualified companies (short listed companies after completion of the prequalification process- stage 1) will be invited to prepare and issue detailed proposal and quotation in the next stage. 5- INSTRUCTION TO PROPOSAL SUBMISSION After completion of prequalification stage, qualified Applicants will be invited to prepare their Proposals as per following format: 6- PROCESS - Full technical specification of the required machineries, equipment and engineering works. - Commercial proposal documents and relevant calculations and analysis. - Full specification of procurement, supervision, training and commissioning. The process is to produce tons per year E-CR and boron-free and fluorine-free modified E-glass fiberglass including production of Direct and Assembled Rovings and Yarns, Chopped Strand fiberglass, using local mineral raw materials. 7- PLANT DESCRIPTION The following items shall be described by the Applicants. - Technology overview

4 Page 4 of 6 - The production process and specifications consist of: Raw Material preparation, formulations, composition and consumption Glass Melting Unit Forehearth and Glass Fiber Forming Winding processes Sizing preparation Drying and Curing Final product quality and standards Instrumentation and Control Laboratory and Testing Equipment Bushing Manufacturing and Repair shop Glass Recycling Unit Utilities and Waste Treatment 8- RAW MATERIALS & UTILITIES SPECIFICATION Detail specification and consumption rate of raw material and utilities shall be provided by the Applicants. Different raw materials are available locally, and BIDDERs must prepare different and alternative formulations according to local sources of raw materials. 9- GENERAL CONDITIONS The followings are general conditions for contract signing and BIDDERS must take the necessary considerations in this respect: - BIDDER shall guarantee the engineering work including basic design, detailed design, etc. object of this proposal, will be prepared in accordance to a good and updated engineering practice. - Time limit for whole project is fixed for 24 months. Hence engineering, supply of the proposed machinery and equipment must be accomplished within 18 months. Construction and installation by local contractors (to be selected by Owner) should be done under supervision of selected BIDDER. Also the selected BIDDER will accomplish commissioning, training and startup of the plant. Shorter delivery time shall be considered as a positive point. - BIDDERS should include, within their proposal, complete sets of spare parts for 2 years of operation as well as necessary tooling for machine set up and adjustments.

5 Page 5 of 6 - Construction, erection and start-up of the plant as well as procurement of local parts, steel works and local equipment should be done by local contractors by supervision of the selected BIDDER. - The prices should be on DAP site (Unloaded and Stored), including sea worthy packing. - The BIDDER at BIDDER's works should train adequate number of BUYER s personnel. - BIDDER should provide the necessary arrangements to jointly, with BUYER, carry-out the first and second acceptance tests as specified in the CONTRACT for manufacturing and supply of machinery, equipment and accessories". - BIDDER should guarantee the supplied services for 24 months from the date of shipment or 12 months from the date of production, whichever comes later. To cover the above mentioned guarantee, upon receiving the L/C covering the costs of the services, the BIDDER should open an unconditional good Performance Bank Guarantee with the value equal to 10% of the received L/C. 10- SPECIAL CONDITIONS AND SCOPE OF WORK The production line should have a High degree on automation. Required is also a list of equipment and spare parts for a period of two years, supervision on installation and commissioning, training and sufficient documentation for the purpose of production, maintenance and repair. The BIDDER will deliver main equipment and machineries, including ovens and furnaces, pre- and post- treatment modules, tensioning and drawing equipment, forming and textile equipment, conveyance and packaging equipment, and data acquisition and control hardware and software. Bushing manufacturing and repair workshop for producing required types of bushings should be included. The process, equipment and machinery will be considered in proposal. Detailed list of Engineering Services and of equipment for each stage of production line shall be proposed by the SUPPLIER, Mainly: - Basic Engineering (whole plant) and Detail Design and drawings of Foreign parts and main equipment - List of Engineering Documents - List of Machinery both for plant and services The scope of services for listed equipment is as follow: - Basic engineering for Civil s

6 Page 6 of 6 - Basic & Detailed engineering for Mechanical, Electrical and Control - Drawings and design requirements of utilities and industrial civil works - Manufacture and supply of main equipment - Know-how for various and alternative sizing preparation, operational manuals for equipment and process, repair and maintenance manuals - Supplier's vendor list - Commissioning and Supervision - Training, After sales services and 2 Years spare parts list - The Bidder will specify the local content of work in different areas especially in equipment and machinery, installation and erection and construction. - Time schedule with sufficient breakdown including necessary estimates for BUYER's approval in determined milestones, and legal arrangements of transactions, will be proposed by Bidder.