Solb Misr Integrated Steel Complex Project. 18 th Middle East Iron & Steel Conference Atlantis, The Palm, Dubai, U.A.E 8-10 December 2014

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Solb Misr Integrated Steel Complex Project 18 th Middle East Iron & Steel Conference Atlantis, The Palm, Dubai, U.A.E 8-10 December 2014

Because Steel is a lifetime investment, we handle it from its roots. FROM ORE TO CORE

Solb Misr is an Egyptian steel company producing a wide range of steel by-products, semifinished, finished and downstream steel, in keeping with international standards. The company operates through an integrated steel complex that produces long steel products from iron ore and scrap. It is comprised of a Direct Reduction Plant, 2 melting shops and 4 rolling mills all located in the Suez industrial area. With a total nominal capacity of 2 million tons of semi-finished steel per year, Solb Misr s annual production includes 1.5 million MT of long finished products.

SSC PRODUCTION PROCESS

PLANT LAYOUT 19 SUEZ STEEL INTEGRATED DRI-BASED MINIMILL SUPPLIED BY DANIELI 1 Trucks receiving hopper for iron ore 2 Iron ore day bins 3 Iron ore screening and coating station 4 Energiron Direct Reduction Plant 5 DRI screening station 6 DRI product storage silos 7 DRP water treatment plant 8 DRP electrical cabin and laboratory 9 Maintenance Bay 10 Electric Arc Furnace 11 Ladle furnace 12 Vacuum degasser 13 Continuous casting machine 14 Billets storage yard 15 Fume treatment plant 16 Steel meltshop water treatment plant 17 Compressed air plant for steel meltshop and DRP 18 Steam generation plant 19 Rolling mills

MAIN STRATEGIC FEATURES Location advantage: Proximity to strategic markets (East Africa, GCC,Levant ) Lower freight charges (no Suez canal fees) to neighboring markets Proximity to the sources of Iron Ore pellets from Oman,Bahrain Lower transport charges (~ 2.5 km from the Adabia Port) Lower tariff barriers to other Arab countries Growing Egyptian steel market Product attractiveness: Higher quality standards Production cost savings: Direct reduction process has significant advantages over scrap based production

PRODUCTS PORTFOLIO DRI Billets Rebars Spooled Bars Wire Rods Cut & Bent Lime Slag

Main Plants

DIRECT REDUCTION PLANT Start period: 2014 Nominal capacity (Mtpy): 1,950,000 Technology providers: Danieli (Italy) and Tenova HYL (Mexico) Equipment: Zero reformer technology DRI Cooler CO 2 removal unit Process Gas Heater Hytemp direct hotlink into EAF Products: Cold DRI and Hot DRI Key benefits: World s largest DRP in a single module producing Hot DRI based on Energiron technology Discharging hot DRI, at 600 o C, allows a drastic decrease in energy consumption and increase in SMP2 production High process flexibility makes it possible to schedule the production according to any actual final user requirements

DR PLANT MAIN EQUIPMENT - REACTOR Reactor Vessel Height 49 m Weight 750 tons Inner diameter (ID) 6,600 mm ID with refractory 6,000 mm Design pressure 9.6 bar-g

DRP EQUIPMENT SCHEME ZERO REFORMER PROCESS SCHEME CO 2 and sulphur removal Natural Gas Energy recovery as steam used for CO 2 removal RG Compressor Humidifier TG Heat Recuperator H 2 O PG Heater Oxygen Iron Ore (3.2 18 mm) DR Reactor High temp: >1050 C In pressure: 6-8 bar Simultaneous: in-situ CH 4 reforming Reduction of iron ore Carburisation Fuel HOT DRI

DRP EQUIPMENT SCHEME HYTEMP PROCESS SCHEME Surge bin DRI cooler DR Reactor Buffer bins Discharge bins EAF PT Compressor COLD DRI Carrier gas make up

HYTEMP HDRI PNEUMATIC TRANSPORT SYSTEM Reactor To external cooler Pipe length 62 m, 3 elbows Cooler To EAF Pipe Length 94 m, 3 elbows To EAF DRI Temperature at EAF Over 600 C

DRP TECHNICAL SPECS Process Gas Heater Flow 440,000 Nm 3 / hr Inlet temperature 110 C Outlet temperature 950-970 C Operating pressure 7.85-8.0 bar-g Duty 188.2 Gcal / hr Low NOx Emission Footprint area ~ 23 m 38 m External Cooler Height 61 m (with surge bin) Weight 190 tons Inner diameter (ID) 4,600 mm Design pressure 8.51 bar-g Reactor Vessel Height 49 m Weight 750 tons Inner diameter (ID) 6,600 mm ID with refractory 6,000 mm Design pressure 9.6 bar-g CO 2 Absorption Plant Ammine - based Flow 386,000 Nm 3 / hr Inlet CO 2 content > 9% Outlet CO 2 content < 2.5% CO 2 removed 36,500 Nm 3 / hr Operating pressure 9.6 bar-g

DRP PERFORMANCES Productivity 243.75 t/h Average metallization 94 % min Average carbon content 3.5 % min Average Natural gas consumption 2.42 Net Gcal/t max. (9.59 mmbtu) Average electricity consumption 95 Kwh/t max Average make up water consumption 1.4 M3/t Average Hot DRI temperature 600 C min. Average iron oxide pellets consumption (on dry basis and screened) 1.4 t/t

DRI TEMPERATURE MEASURED AT EAF SURGE BINS 601.44 ºC 601.22 ºC ACTUAL TEMPERATURE AT EAF SURGE BINS

DRI TEMPERATURE MEASURED AT EAF SURGE BINS DRI TEMPERATURE IN EAF SURGE BINS DRI WEIGHT IN EAF SURGE BINS AVERAGE TEMPERATURE OF HOT DRI FEEDING > 600 C

BIN 4 VALE (OMAN) 0 0,0 0 0 0 0 0 0 SOLB MISR INTEGRATED SSC DRP DAILY REPORT HOPPER REMET 0 0,0 0 0 0 0 0 0 Average metallization 94.0% Average Carbon content 3.5% TOTAL: 2767 2964 2873 8604 Danieli Automation Time 06:00 07:00 Production From 6 a.m. 01-11-2014 To 6 a.m. 02-11-2014 DRI Production tons % tons % tons % tons tons DRP DW m3 46 74 61 181 8 0,03 BIN 1 VALE (OMAN) 1384 50,0 1481 49,97 1437 50 4302 4302 IO Coating kg 10414 11231 11479 33124 1380 5,65 BIN 2 VALE (OMAN) 0 0,0 0 0 0 0 0 0 DMDS l 177,46 177,47 177,55 532,49 22 0,09 BIN 3 VALE (OMAN) 1383 50,0 1483 50,03 1436 50 BIN 4 VALE (OMAN) 0 0,0 0 0 0 0 0 HOPPER REMET 0 0,0 0 0 0 0 SSC DRP Daily Report Consumptions Shift1 Shift2 Shift3 Total Monthly Average Variables Unit Shift 1 Shift 2 Shift 3 Total [tons] [tons] [tons] tons tons per h per tdri Hot DRI 214 790 1323 2327 2327 Natural Gas Nm³ 545376 550392 522184 1617952 67415 276,00 Cold DRI 1768 1200 563 3531 3531 NG LHV kcal/nm³ 8759 8762 8760 --- --- --- Total DRI 1982 1990 1886 5858 5858 Natural Gas Gcal 4776,71 4822,33 4574,21 14173,25 591 2,42 Production Rate [ton/hour] 248 249 236 244 244 O2 Nm³ 116204 114424 110928 341556 14232 58,00 08:00 09:00 10:00 DAY BIN 11:00 12:00 13:00 14:00 15:00 16:00 17:00 REMET 0 0 0 0 0 N2 Nm³ 31715 32643 31193 95550 3981 16,00 MIX ORE 0 0 0 0 0 Electricity Total kwh 183104 180768 178800 542672 22611 92,64 Type Iron Oxide Electricity WTP kwh 44848 44128 44952 133928 5580 22,86 Shift 1 Shift 2 Shift 3 Total Monthly Electricity AUX kwh 1214 2270 2849 6333 264 1,08 DRI Analysis From Hot Sampler 4302 4302 Make Up Water m³ 2588 0 0 Instrument Air Nm3 3040 SSC 2651 2521 7760 323 1,32 3260 3085 TOTAL: 2767 2964 2873 8604 8604 IOP Gross-W06 tons 2809 2812 2620 8241 Time 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 Fe Met [%] 84,91 84,5 85,66 84,61 84,35 84,66 84,91 84,55 81,69 84,05 81,29 83,05 AVG 84,13 Fe Met [%] 84,91 Fe Tot [%] 89,31 89,13 90,33 89,14 89,51 90,16 89,8 89,58 89,16 88,5 88,1 90,38 89,47 84,5 85,66 84,61 84,35 84,66 84,91 84,55 81,69 84,05 81,29 83,05 AVG 84,13 94,97 92,27 91,89 3,45 Cold DRI Analysis From N07 9385 391 1,60 343 1,41 Met [%] C [%] S [%] FeO [%] Time Fe Met [%] Fe Tot [%] Met [%] C [%] S [%] Feo [%] Gangue [%] 95,07 94,81 94,83 94,92 94,24 93,9 DRI Analysis From Hot Sampler 94,56 94,39 91,62 94,03 Fe Tot [%] 3,75 3,38 3,57 3,8 3,68 3,82 3,75 2,99 3,37 3,34 3,79 3,6 89,31 89,13 90,33 89,14 89,51 90,16 89,8 89,58 89,16 0,0076 0,0053 88,5 0,0065 0,0085 88,1 0,0075 0,0077 90,38 0,0076 0,01 0,0088 89,47 0,0078 0,0246 0,0109 0,0072 0 5,66 5,95 6,01 5,83 6,64 7,07 6,29 6,47 9,61 5,72 8,76 9,43 6,86 Met [%] 95,07 94,81 94,83 94,92 Electricity Core kwh 132712 130128 126680 389520 16230 66,49 Electricity MH kwh 4328 4238 4324 12890 537 94,24 93,9 94,56 DW to QW m³ 0 19 0 19 1 0,00 94,39 91,62 94,97 92,27 91,89 94,03 AVG C [%] 3,75 3,38 3,57 3,8 3,68 3,82 3,75 2,99 3,37 3,45 3,34 3,79 3,6 0,0078 0,0246 860 S [%] FeO [ 0,0076 0,0053 0,0065 0,0085 0,0075 0,0077 0,0076 0,01 0,0088 0,0109 0,0072 5,6 5,9 6,0 5,8 2,2 6,6 7,0 6,2 6,4 9,6 5,7 8,7 9,4 6,8

STEEL MELTING SHOP II Start period: Q1-2013 Nominal capacity (Mtpy): 1,250,000 Technology provider: Danieli (Italy) Equipment: EAF: 160 Mt (Transformer 160 MVA) LF: 160 Mt (Transformer 25 MVA) CCM: Radius 12 meter, 5 strands Twin vessel vacuum degasser Products: Billets 130x130 to 200x200 Beam blanks up to 1050 mm in width Round billets: 200 to 450 mm in dia Baby Slabs up to 1000 mm in width

STEEL MELTING SHOP II Key Benefits: HYTEMP hot-link system results in a clean environment less dust emission Hot DRI charging results in reduction in electricity consumption and decrease in corresponding GHGs emission Possibility to feed high-quality of DRI resulting in high-end billets to be used in speciality industry.

STEEL MELTING SHOP I Start period: 2000 Nominal Capacity (Mtpy): 800,000 (after revamp) Equipment: EAF: 95 Mt (Transformer 85 MVA) LF: 95 Mt (Transformer 15 MVA) CCM: Radius 9 meter, 5 strands Products: Billets 130x130 to150x150 Key benefits: The right mix of local scrap with CDRI results in lower production cost and more efficient use of available raw material

STEEL MELTING SHOP 2

EAF MAIN DATA Machine type Shell diameter Charging system Tap to tap time Tapping device EAF EBT - AC 7,500 mm 100% HDRI (reference) - 100% CDRI - 75% CDRI, 25% scrap - 100% scrap 54 min - 58 min - 56 min - 58 min EBT EAF tap weight Chemical energy 160 t 5 OxJet, 2 Carbonjet, 1 Carbon Pipe,1 Limejet Transformer 160 MVA + 10 % Technological package - High impedance technology for arc optimization - CATFIS Automatic Sampler

LADLE FURNACE AND VD

LF AND VD MAIN DATA LF design Single LF with two Ladle cars with 160 t Heat Size capacity LF roof typology Water cooled inert roof with suction hood Heating rate 4.5 ºC/min Auxiliares - Electrode jointing station - Automatic sampler machine - Wire feeding system - Emergency stirring lance equipment VD design Vacuum pump Auxiliares Twin tank with single cover car with 160 t heat size capacity - Suction capacity of the pump at 0.5 torr: 400 kg/h - Number of stages: 5 - Manual sampling equipment - Manual hydrogen measuring system HYDRIS - Wire feeding system - Manual equipment for cleaning of steam ejectors - Slag rake machine

CONTINOUS CASTING MACHINE (CCM)

CCM MAIN DATA Casting strands Oscillating unit Dummy bar type Outfit sections Withdrawal and straightening unit Mould design Cutting system 5 x 12m radius Hydraulically actuated Rigid 130x130 mm, 150x150 mm, 200x200 mm, Ø 220 mm, Ø 280 mm, Ø 350 mm, Ø 400 mm, BB1 280x220x85 mm, BB2 430x350x90 mm, BB3 670x350x90 mm, BB4 1050x460x120 mm 4 modules per strand; a bottom idle roll between WS2 and WS3 for third unbending point. Tubular for billets and blooms; plates for BB Oxy-cutting torches

ROLLING MILL I Start period: 2010 Nominal capacity (Mtpy): 480,000 Technology provider: Danieli (Italy) Equipment: Furnace: Walking Earth 80 T/hr Stands: 18 (vertical & horizontal) Welding Machine Products: Rebar 10 to 40 mm Key benefits: Hot billets from the casters pass directly into the mill resulting in reduction in cost of production A continuous monitoring system ensures that bars are produced with excellent surface quality and dimensional accuracy A welder is installed on the process line resulting in a higher yield and thus allowing to achieve the capacity of 480,000 Mtpy

ROLLING MILL II Start period: 2011 Nominal capacity (Mtpy): 450,000 Technology provider: Danieli (Italy) Equipment: Furnace: Walking Earth 80 T/hr Stands: 18 (vertical & horizontal) including 10 passes high speed block Possibility to integrate a welding machine Products: Wire Rods 8 to 25 mm, Spool Bars Key Benefits: Hot billets from the casters pass directly into the mill resulting in reduction in cost of production A continuous monitoring system ensures that wirerods are produced with excellent surface quality and dimensional accuracy First in ME capable to produce spool bars of all diameters.the latter will allow to produce rebar at a customized length

HOT & COLD BILLET TRANSFER CAR

ROLLING MILLS MAIN DATA ROLLING MILL 1 1 2 3 4 5 ROLLING MILL 2 9 10 6 7 8 1. Reheating furnaces Walking beam type capacity 80 t/h with cold charging service 2. Billet Welder Machine (EWR ) 6. Reheating furnaces Walking beam type capacity 80 t/h with cold charging service 7. Provision for future installation of Billet Welder Machine 3. 18 SHS housing-less stands in H and V configuration 8. 18 SHS housing-less stands in H and V configuration 4. Automatic bar quenching system (QTB ) 5. Automatic Cooling Bed 66m length, Straight bar cutting and bundling machines with automatic bar counter 9. Wire Rod line with 10-pass Delta type fast finishing block and in-line heat treatment for natural, fast and retarded cooling 10. Spooler line with two automatic spooling units, coil handling/strapping and collecting facilities

ROLLING MILL PLANTS BAR LINE, WIRE ROD LINE AND SPOOLER LINE Plant capacity Starting material Steel grades Finished product Finishing speed Product tolerances Finished product supply 1,000,000 t/y Billet 130x130x12,000 mm 150x150x12,000 mm Weight 1,550 kg and 2,050 kg approx. Low and Medium Carbon Steels, Cold Heading Steel, Mild Alloy Steel, Low Alloy Steel, Rimmed equivalent Steel and Polished Shaft Steel Deformed bars from 10 to 32 mm dia Wire rod from 5.5 to 16 mm dia Up to 100 m/s for wire rod Up to 32 m/s for deformed bars According to BS4449, ASTM 615-96A, DIN488 and AISI standard Spooled and wire rod coils Weight up to 2,050 Kg

MISR NATIONAL STEEL Start period: 2000 Nominal capacity (Mtpy): 360,000 Equipment: Furnace: Walking Earth 60 T/hr Stands: 16 (vertical & horizontal) Products: Rebar 10 to 32 mm Key Benefits: Optimization of production across the group mills by enabling each mill to produce a specific diameter. This will result in a higher production and consequently lower production cost MNS consumes billet produced from SSC and thus eliminate imports of billets. More efficient use of available billets.

EGYPTIAN CO IRON & STEEL PRODUCTS Start period: 2007 Nominal capacity (Mtpy): 240,000 Equipment: 3 high mill rougher Furnace: pulser 50 T/hr Stands: 10 (horizontal) Products: Rebar 10 to 25 mm Key Benefits: Optimization of production across the group mills by enabling each mill to produce a specific diameter. This will result in a higher production and consequently lower production cost ECISP consumes billet produced from SSC and thus eliminate imports of billets. More efficient use of available billets.

CUT & BEND PLANT Start period: 2012 Nominal capacity (Mtpy): 300,000 Equipment: Stirrups Shape Cut to Length Products: Cut & bend bars Key Benefits: Just-in-time delivery at the construction site according to customer blue-prints Reduction in steel waste Reduction in processing time Reduction in storage space Reduction in rebar theft

Auxiliary Plants

AIR SEPARATION UNIT Start period: 2012 Nominal capacity (TPD): 750 Equipment: Products: Key benefits: Cryogenic Process GOX 21,000 Nm3/hr LOX 1,000 Nm3/hr GAN: 8,000 Nm3/hr LIN: 500 Nm3/hr Lar : 700 Nm3/hr Latest technology Guarantees, independently, the quantity of Oxygen needed for the production of steel Produce high quality of Argon

SLAG TREATMENT PLANT Start period: 2009 Nominal capacity (T/Hr): 120 Equipment: Crushers and Separators Products: Processed slags & metal recovery Key benefits: Separates slag from its metal content and crush the slag in four different sizes that can be re-used in other industries like cement, asphalt, concrete, etc. Greener environment Reduction in production cost by reusing recycled steel into the EAF (metal content recovered from slag) and increase steel yield

LIME PLANT Start period: 2010 Nominal capacity (TPD): 500 Equipment: Products: Furnace 200 TPD Furnace 300 TPD Lime Burned Dolomite Dololime Key benefits: Guarantees the quantity and quality of the produced lime, burned dolomite and dololime needed for steel production Use of local cost effective lime stone and dolomite versus imported one. Hence, reduce exposure to hard currency.

LOGISTICS Start period: 2009 Nominal capacity (tpy): 4,000,000 Equipment: Cranes Trucks Forklifts Front loaders Bob cats Products: NA Technology providers: Gottwald, IVECO, Caterpillar, Terex Fuchs and others Key Benefits: Full control of supply chain Drastic reduction of logistic cost Wolrd tallest Mobile Harbor Cranes

CENTRAL WAREHOUSE Start period: 2010 Nominal capacity (Sq meter): 9,100 Equipment: Products: NA Handling equipment Technology providers: Various Key benefits: Full control of supply chain Centralized storage Reduction in downtime Using best practices in inventory management

CENTRAL WORKSHOP Start period: 2010 Nominal capacity (tpy): NA Equipment: Products: Lathe machine Milling machine Press brakes Shear cutting Plazma cutting Processed spare parts and structural steel Technology providers: Various Key benefits: Centralized workshop providing services to all plants Reduction in downtime Control over quality and time delivery

LABS Start period: 2012 Nominal capacity (tpy): NA Equipment Spectro meter X-ray quantometer Wet lab Tensile yield and elongation Seizing Equipment Others Products: Tested samples Technology providers: Various Key benefits: Centralized lab providing services to all plants, preparation and analysis Control over quality All plants are linked to laboratory by pneumatic transport system that reduces testing time

Social Responsibility Projects

INSTALLATION OF ADDITONAL DEDUSTING PLANT TO CONTROL EMISSION OF SMP-1 Start period: 2010 Nominal capacity (TPD): NA Equipment: Products: NA Key benefits: High-tech filter bags Designed to capture both primary and secondary fume emissions to meet with local and international emission standards

DESALINATION AND WATER TREATMENT PLANT Start period: H2 2013 Nominal capacity (cmtr/day): 40,000 Equipment: Reverse Osmosis Products: Make up water Key benefits: SSC is recycling sewage water and use it as make up water Zero discharge of blown water. It is totally recycled and re-used in the plants The recycling of water reduces to zero the purchase of industrial water from the government. Hence, it creates independence water source. This is important in a desert environment. Knowing the scarcity of water in our region.

FUTURE METALLURGIC TRAINING CENTER SSC is planning to build a training center at the place of the old administration building. The center will be used towards the development of the company s human capacities through regular training and knowledge transfer. The center will also benefit the Egyptian steel industry since it will graduate knowledgeable workers that would add value to the industry and ultimately will reduce the cost of production.

GREEN SPACES SSC has erected plants which the aim to eliminate any potential environmental harm. The company deploys serious efforts towards eliminating the adverse impact of steel on the environment.

Thank You