Introduction of POSCO MVWPC 1 Introduction of POSCO

Introduction of POSCO MVWPC

1. Introduction of POSCO No. 3 Market value In Global Steel Market Industry(2015) 5 th World’s Crude Steel Production Company (41. 4 Million Tons. ) [World Steel Dynamics] The World’s Most Competitive Steelmaker for 7 consecutive years (2010 ~ 2016) [Fortune] The World’s most admire company in Steel sector enterprise [Dow Jones Sustainability Index] Global sustainable leading company for 12 consecutive years (2005 ~ 2016)

2. Global POSCO � 15 Production Plants � 30 Processing Centers � 3 Distribution Centers MVWPC [Mexico] MESDC [Mexico]

12. 3. POSCO Inspection in Mexico Equipment POSCO 2007~2015 investment of USD 663 million in México POSCO-MPPC #2 POSCO-MPPC# 4 POSCO-MEXICO S. L. P (Nov. 2008~) USD 23 million 170 thousand Ton/Year Aguascalientes(Nov. 2013~) USD 20 million 110 thousand Ton/Year POSCO-MVWPC Guanajuato (JUL. 2015~) USD 22 million 25 thousand Ton/Year Altamira (Aug. 2009~) USD 550 million 900 thousand Ton/Year POSCO-MPPC #3 Guanajuato (Nov. 2013~) USD 26 million 140 thousand Ton/Year POSCO-MPPC #1 Puebla (Mar. 2007~) USD 22 million 170 thousand Ton/Year

12. 4. POSCO Inspection MVWPC Equipment Overview Title Description Location § Villagran Guanajuato, Mexico Operation schedule § Construction Start : MAY 2014 § Completion : JUL 2015 Capacity Main Facility Investment Stock holders Main Production Item * CD Bar : Cold Drawn Bar Remarks § 25, 000 MT/ YR • Product : CHQ Wire (for Bolt, Nut etc) • Wire Size : 4~30 mm¢ § 2 Annealing Lines (Heat Treatments) • 25, 000 MT / YR § 1 Pickling & Coating Line • 25, 000 MT / YR § 4 Drawing lines • 25, 000 MT / YR § 2 CD Bar* Cutting Facilities • 04, 000 MT / YR § Total Amounts: USD 22 Millions § § POSCO : 57% Daeho P&C : 30% POSCO-America : 10% Sannohashi : 3% § Materials to make coupling parts such as bolts, nuts and screws for use in automobiles

12. 5. Location Inspection Equipment

12. 6. Hole Inspection View of Equipment the Plant Ground : 40, 000 ㎡ Building Area : 11, 000 ㎡

12. 7. Main Inspection Facility Equipment Facility Annealing Line Pickling & Coating Line Drawing Line CD Bar Cutting Facility Type Bell Type Atmosphere gas : H 2 Transfer Unit Type (Automatic Control) Block Type (ECT included) Press Cutting Type (80 ton Press) Quantity 3 Base 2 Bell (50 Ton/ Bell) 1 Line Capacity Supplier PHOTO Product : 25, 000 Ton/Year Treatment : 40, 000 Ton/Year Treatment : 48, 000 Ton/Year LOI (Germany) HANWHA Tech-M (Korea) 2 Press G-Block 2 Line: 32, 34 inch (Cutting Length & Diameter: Bull-Block 2 Line: 36, 42 inch 100~700 mm, Ø 0. 4~Ø 1. 2 inch) Product : 25, 000 Ton/Year Treatment : 45, 000 Ton/Year TAEWHA (Korea) Cutting : 4, 000 Ton/Year WONKWANG (Korea)

12. 8. Production Inspection Equipment Process (1) Manufacturing Wire

12. 9. Production Inspection Equipment Process (2) Cutting Bar ※ Process of Producing Bar in Korea (Production of Material) 01 Annealing 11 Packing 10 Final Inspection 09 Post-process Shipment/Clearance Cutting Bar (POSCO MVWPC) Packing Shipment to Customers

12. 10. Inspection Producible. Equipment Dimensions & Packing Manufacturable Dimensions Diameter (mm) 4. 0 - 30. 0 Range (mm) Wire Drawing Machine Inner Dia. (mm) Outer Dia. (mm) Unit Weight (Kg) 4 -8 32’’ 700 1, 250 100 – 1, 000 6 - 12 34’’ (ECT) 750 1, 300 – 1, 000 10 - 20 36’’ 850 1, 550 500 – 2, 000 18 - 30 42’’ 900 1, 600 500 – 2, 000 ※ Bar : O. D 10~30 mm(0. 4~1. 2 inch) / Length 100~700 mm Product Packing [ Wire Rod Packing ] Wire Packing [ (Without Wrapping) ] [ Paper Wrapping ] [ Carrier Packing ]

12. 11. Inspection. Equipment Metallurgical Microscope (Olympus BX 41) Magnetic Particle Tester Hardness Tester Universal Tester (100 Ton) Polishing M/C Chemical Test Mounting Press Specimen Cutter Specimen Belt grinder

12. Inspection Equipment < End of Document > Thank you !