Metal Bulletin Pipe Conference Abu Dhabi Feb Emirates Steel

Metal Bulletin Pipe Conference Abu Dhabi 22-23 Feb 2012 Emirates Steel Feb 2012

Presentation Contents 1. Emirates Steel Developments Overview 2. Pipe Market Overview 3. Emirates Steel Plans for Supply of API HRC 4. Emirates Steel Plans for Supply of Non-API HRC 5. Emirates Steel Plans for Supply of Plate

About Us Established in September 2006, Emirates Steel acquired the assets and business of Mussafah-based Emirates Iron and Steel Factory (EISF) in January 2007. Where we were in 2006 We are wholly-owned by the General Holding Company (GHC), a UAE Government Company. Strategically located in the Industrial City of Abu Dhabi (ICAD), some 35 kilometers away from the heart of the city of Abu Dhabi, Emirates Steel is the only integrated steel plant in the UAE, utilizing the latest rolling mill technology to produce reinforcing bar, wire rod, structural sections and future flat products. Where we are now

Mission and Vision Mission The mission of Emirates Steel is to supply the construction, oil & gas and shipping sectors with their requirements of high quality steel products, to adopt safe and environmentally-friendly work practices across our business, and to engage, develop and inspire our workforce to excel. Vision The vision of Emirates Steel is to be recognized as a leading regional supplier of the highest quality products and services to its customers, to contribute to the creation of employment opportunities locally, to assist in the development of our community, and to conduct its operations in line with best practices concerning health, safety and environmental considerations.

Global SAW Pipe Demand Source: MB Outlook for Large Dia Line Pipe 2010 Issue, SIMDEX

GCC ERW Pipe Producer Locations Source: Hatch

GCC HSAW Pipe Producer Locations Source: Hatch

GCC HRC Production versus Consumption Source: Hatch Source: Hatch

Middle East LSAW Pipe Producer Locations Source: Hatch

GCC & OMEC Plate Imports versus Consumption Source: Hatch All Plates Imported Into GCC & OMEC

Global Plate Trade No Plate Producer in GCC!!! Source: Hatch

North Africa HRC Production versus Consumption Source: Hatch Source: Hatch

Opportunities For Emirates Steel in ERW, HSAW & LSAW 1. Become The Only Local Producer of Plate 2. Become the Only Local Producer of HRC up to 2050mm Wide 3. Utilise Location To Minimise Delivery Times to Local Producers 4. Work with Local Producers to Minimise Inventory 5. Become Local Provider of Premium Grade HRC and Plate 6. Work with Etihad Rail to Distribute Product Efficiently Within UAE and Beyond for Export of Heavy & Wide HRC or Plate 7. Develop Own Jetty for Export of Heavy & Wide HRC or Plate

Phase 3 API HRC Location: ICAD 1, Musaffah, Abu Dhabi Products: Hot Rolled Coil HRC Narrow Quarto Plate Process: DRI - Steel Melting Plant Thin Slab Caster - Continuous Strip Rolling Mill Feedstock: DRI + Scrap Status: Bidding Award: Q2 2012 Production: Q3 2014 Slit Coil 150mm to 1000mm API Thickness (mm) Width (mm) X60 3.00 25.40 1000 1950 X70 3.00 20.00 1000 1950 X80 3.00 18.00 1000 1950 Sour Grade SSC & HIC Resistant Arctic Application

Phase 3 Non-API HRC Typical Grades Thickness (mm) HRC Width (mm) ASTM A53 A&B Schedule 40 2.00 10.00 1000 2050 EN 10025 2 to 5 Structural 1.50 25.4 1000 2050 DIN 1700 ST33 to ST52-3 1.00 12.70 1000 2050 SAE C1010 to C1022 1.00 6.00 1000 2050 Thickness Tolerance to 20% of EN 10051 Structural Standard HRC Supplied Mill Edge or Trimmed Slit Coil Supplied 150mm 1000mm

Phase 3 Narrow Plate Capability Location: Products: Process: Feedstock: Status: Award: Q2 2012 Production: Q3 2014 ICAD 1, Musaffah, Abu Dhabi Narrow Quarto Plate DRI - Steel Melting Plant Thin Slab Caster - Continuous Strip Rolling Mill De-Coiled & Leveled to 12mm Thick Hot Rolled Plate to 40mm Thick DRI + Internal Scrap Bidding Thickness (mm) Width (mm) Length (mm) X52 X80 6.00 25.40 1000 2080 3000 12000 EN 10025 6.00 40.00 1000 2080 3000 12000 API Grade Sour Grade SSC & HIC Resistant Arctic Application

Phase 4 Wide Plate Capability Location: Products: Process: Feedstock: Status: Award: Q4 2012 Production: Q4 2015 UAE Wide Quarto Plate Direct Reduction Plant - Steel Melting Plant Thick Slab Caster Plate Mill DRI + Internal Scrap Planning Thickness (mm) Width (mm) Length (mm) X52 X80 10.00 38.10 2000 5200 3000 24000 EN 10025 10.00 150.00 2000 5200 3000 24000 API Grade Sour Grade SSC & HIC Resistant Arctic Application

Thank you