OPEN JOINT STOCK COMPANY BYELORUSSIAN STEEL WORKS Corporate

OPEN JOINT STOCK COMPANY «BYELORUSSIAN STEEL WORKS «

Corporate Policy Open Joint-Stock Company Byelorussian Steel Works (BMZ), is the largest and the sole independent steel producer in Eastern Europe. Byelorussian Steel Works is 100% the stateowned enterprise. The annual capacity amounts 2, 6 million tons of crude steel and turnover is about 2 billion USD. BMZ is one of the five biggest companies in the Republic of Belarus. Our most important advantage is the geographical location in Eastern European region, the own steel production, the flexibility for technical and commercial matters, as well as favourable cost situation. The export share is about 80 per cent. The main volume of products goes to the EU and Russian markets. Europe is 37 per cent, the Russian Federation – 35 per cent, Middle East and Africa – 22 per cent , America – 5 per cent, CIS-countries - 1 per cent, countries in Southeast Asia – 0, 15 per cent. In 2013 our plant has supplied its products to 114 countries throughout the world, proving that the trademark «BMZ» is widely recognized in the steel goods market. BMZ products are designated for construction, engineering, automotive, and the oil and gas industries. The Byelorussian Steel Works holds 55 certificates of conformity for different types of products (hot-rolled reinforcing bars, cold-deformed reinforcing wire, pipes, fibre), which allow use of the СE marking for hot-rolled sections of construction steel and hot-rolled seamless pipes. Besides this, our plant holds eight certificates of conformity for its quality systems according to the requirements of many international standards: STB ISO 9001 -2009, ISO 9001: 2008; ISO/TS 16949: 2002; BS EN ISO 9001; ISO/TS 29001, API Spec Q 1, AD 2000 Merkblatt W 0 and EN 764 -5.

PRODUCTION STRUCTURE PREPRODUCTION STEEL MAKING 3 Oxygen station, power supply system and power generation, technological transport shop, storage facility, railway shop Scrap yard, steel plant № 1, steel plant № 2 ROLLING PRODUCTION Rolling shop with three rolling mills: mill 850, mill 320, and mill 150, Pipe-rolling mill, Roll maintenance shop STEEL CORD AND WIRE PRODUCTION Steel cord and wire shop № 1, Steel cord and wire shop № 2, Steel cord and wire shop № 3 AUXILIARY SHOPS Refractory scrap processing shop, Power equipment maintenance shop, Metallurgical equipment maintenance shop, Mechanical equipment maintenance shop

Certificates for products At the moment OJSC BSW holds certificate for production of steel cord, wire and rolled products for automotive industry.

Certificates for products

Certificates for products

Light section wire rod and mill construction In 2014 our key project is construction of a new rolling mill. It will be one more section rolling mill with the possibility to manufacture around 700 thousand tons of product per year with the prospect of reaching an annual output of 1 million tons. A long-term partner of BMZ – the Danieli company – will give the opportunity to balance production, increase the output of steel cord and wire and increase the volume of manufactured wire products. In the next three years, BMZ, owing to modernization and the reconstruction of steelmaking production, is going to reach 3 million tons of steel. Considering the capacity of the rolling production facility there is an excess amount of concast billets and blooms of around 700 thousand tons. That excess amount will be processed in a new mill. The new rolling shop with will include seven production areas. Around 224 people will work in the new rolling shop.

Light section wire rod and mill construction ORGANIZATION OF SECTIONS PRODUCTION AND LIGHT SECTION WIRE ROD AND BAR MILL CONSTRUCTION Technological areas and equipment 13 15 16 12 14 17 1 2 3 1 Bars inspection and conditioning area 2 Off-line heat treatment area 3 Coiling line 4 Wire rod production line 5 Off-line heat treatment area 6 Section-rolling line 4 5 6 7 Off-line heat treatment area 8 Rolling mill area 9 Storage 10 Re-heating furnace area 11 Cast billet inspection line 12 Rolling mill laboratory 7 8 9 10 13 Auxiliary equipment 14 Compressor station 15 Maintenance workshop 16 Water treatment area 17 Water treatment laboratory 11

Construction of wire rod and small-section rolling shop PROCESS FLOW DIAGRAM FEEDSTOCK . INSPECTION AND PROCESSING LINE BILLETS HEATING IN REHEATING FURNACE ROLLING OF BILLETS ON THE ROLLING MILL WIRE ROD PRODUCITON LINE, DIAMETER 5, 5 – 22 MM PRODUCTION LINE FOR ROLLED SECTIONS IN COILS DIAMETER 20 – 50 MM PRODUCTION LINE FOR ROLLED SECTIONS IN BARS DIAMETER 20 – 80 MM 9

Description of main lines and areas -BILLETS INSPECTION AND PROCESSING LINE: Is designated to detect and eliminate defects of steelmelting production that can influence on quality of outer surface of finished rolled sections. Billet inspection and processing line is a technological line where quality control is carried out and billets surface is grinded prior to their transfer to rolling production: concast billets section 140 х140 mm (length 8 -12 m) and blooms section 250 х300 mm (length 2. 5 -5. 5 m). Capacity of inspection line for concast billets section 140 х140 mm – 9. 7 -28. 7 tons per hour, for blooms section 250 х300 mm – 18. 2 - 57. 5 tones per hour. Productive capacity of the line depends on grinding method: complete surface or local areas. 10

Description of main lines and areas Reheating furnace - Billets are charged into the furnace with walking beam and are heated till the required temperature of rolling. Reheating furnace provides following advantages: - Heating of billets in one row and/or blooms in two rows; - High accuracy, uniformity and wide range of temperatures; - High uniformity of temperatures; - Furnace can operate with different types, sizes and steel grades; - Heating of a billet from all sides improves temperature uniformity and in that way decrease possibility of defects during rolling; - Fast heating significantly decreases decarburization; - Decrease of temperature of waste gases up to ≤ 200°C; - Minimization of the emission of Nitrogen oxides. 11

Description of main lines and areas ROLLING LINE: - Rolling line (SHS) includes 21 stands: - roughing rolling mill consists of seven SHS stands. - intermediate rolling mill consists of six SHS stands. - finishing rolling mill consists of eight SHS stands Main advantages are: - Rigid construction; - High rolling moment; - Interchangeability of units within stands of the same size - Unified components for all constructions of stands ; - Improved quality of finished product; - Increase of mill utilization factor; 12

Description of main lines and areas LINE FOR PRODUCTION OF WIRE ROD DIAMETER 5, 5 – 22 MM includes: -10 stand wire rod block DWB is a high speed finishing block. Transportation sector is equipped with water chamber for wire rod temperature regulation. Finishing block provides rolling without twisting in order to ensure manufacturing of finished products within strict dimensional tolerance. - DSC-System for controlled mode of formation of metal structure This system is a complex treatment of rolled material in the rolling line in automatic mode during rolling process and after it. 13

Description of main lines and areas - Sizing block TMB (Two-Modules Block); TMB system provides the following advantages: - High production speed – up to 140 m/s, including small sizes; - Precise dimensional tolerances up to ± 0, 1 mm and optimal surface quality; - Wide range of products – from Ø 4, 5 mm to Ø 22 mm; - Finishing rolling at low temperature around 750ºС for all range of products; - Laying head; Provides stable operation at high speed of finishing rolling. Special design of the machine and new automation/control system provides forming of tail coils in perfectly round shape. 14

Description of main lines and areas PRODUCTION LINE FOR SECTIONS IN COILS DIAMETER 20 – 50 MM: This production line consists of: - two rotary coilers - walking beam conveyer. - discharge unit These equipment provide smooth and accurate transfer of hot coil without damage of coil shape and scratches on wire surface as well as slow cooling of coils. Main advantages of this line are: - Uniform coiling of material into coils of regular shape. - Easy uncoiling on the following production stages. - Controlled cooling of coils which allows to decrease necessity of off-line heat treatment of material. 15

Description of main lines and areas PRODUCTION LINE FOR ROLLED SECTIONS IN BARS DIAMETER 20 – 80 MM includes: -High Reduction Sizing Mill (HRSM) consists of tree stands SHS with separate drives and compact location of rolls Main advantages of this line are: Adjustable reduction allows to produce - wide range of finished sizes with - precise dimensional tolerances; Small changes of finished sizes are performed within several seconds by means of roll gap change; Fast change of rolling stands – up to 5 min. 16

Description of main lines and areas - Cooling bed, with walking beams is designated for accumulation and cooling of rolled material and cut to preset length. Size of cooling bed was calculated in a way to provide stable and required cooling of all range of rolled material. 17

Description of main lines and areas - Finishing and Inspection line for hot rolled material includes: - charging table, - multi-roll straightening machine: - number of lower rolls – 3 pcs. - number of bending rolls – 4 pcs. - number of counter rolls – 3 pcs. - Beveling machine (from 30° to 45°± 1°). To meet strict requirements for surface quality and bar geometry there is a set of equipment for peeling, straightening and polishing: Peeling machine: - feed rate, from 1 to 50 m/min, - number of turning head rotations up to 3100 rpm, - system for bar feeding – 4 self-centering rolls, Straightening/polishing machine: - feed rate, up to 50 m/min, - number of rolls – 2 pcs. - roll diameter – 470 mm - roll length – 700 mm 18

Description of main lines and areas Technical parameters of hot-rolled material before finishing and inspection line and after it Original rolled metal (hot-rolled) before turning and straightening machine Diameter, mm 20 - 85 Diameter tolerance ≤ ¼ DIN EN 10060 Straightness not more Bundle weight, than, mm/m max, kg 4 mm/m Bundle diameter, max, mm 5000 500 Finished product after straightening, turning and straightening /polishing machine Diameter, mm 19 -84 Diameter tolerance Straightness not more than, mm/m Bundle weight, max, kg Bundle diameter, max, mm Roughness, μm 1 mm/m 5000 500 min 0, 2 μm max 4 μm IT 9 For quality class h 9 Ø 19 -30 +0/-0, 052 mm Ø 30 -50 +0/-0, 062 mm Ø 50 -80 +0/-0, 074 mm Ø 85 +0/-0, 087 mm 19

Description of main lines and sections -Heat treatment lines include: -1 ST line consists of 3 static furnaces for spheroidizing annealing, capacity – 25 000 t/year. The above furnaces are able to carry out heat treatment of rods diameter 20 to 85 mm, up to 12 m long. Heat treatment with a spheroidizing annealing is steel heating with a periodic temperature change near point Ас1 and a quick cooling. Steels after spheroidizing annealing are less disposed to overheating, crack formation, and are well cut. TEMP. Ac 1 SPHEROIDIZING ANNEALING TIME

Description of main lines and sections - 2 nd line consists of 1 continuous annealing line in controlled atmosphere with indirect heating by emitting tubes, productivity – 400 t/ per day. This line allows steel treatment by heating it up to 50 o. C above the austenitic temperature Ас3, it is held at this temperature for sufficient time, then fast cooling up to temperature Ас1, it is held at this temperature for sufficient time, and further fast cooling. This type of heat treatment eliminates structural flaws generated during hot deformation, material becomes soft and ductile for cutting and with less internal stresses in steel. TEMP. Ас3 Ас1 SPHEROIDIZING ANNEALING TIME

Description of main lines and sections -3 rd line consists of 3 thermo treating units for steel products in coils in neutral atmosphere protected by nitrogen, capacity is 30 000 t/year. This line allows steel treatment by heating it up to 50 o. C above the austenitic temperature Ас3, it is held at this temperature for sufficient time, then fast cooling up to temperature Ас1, it is held at this temperature for sufficient time, and further fast cooling. This type of heat treatment eliminates structural flaws generated during hot deformation, steel becomes soft and ductile for cutting and with less internal stresses in steel. TEMP. Ас3 Ас1 SPHEROIDIZING ANNEALING TIME

Section and grade assortment of light section wire rod and bar mill Startup of a new rolling mill will give possibility to our enterprise to produce the following kinds of products with capacity 700 000 t/year: - HOT-ROLLED SECTION IN COILS - With diameter from 5, 5 to 22 mm in quality carbon structural steel, carbon spring and alloyed steel, planned output - 150 000 t/year; - With diameter from 20 mm to 50 mm in carbon quality and alloyed structural steel, planned output – 100 000 t/year; - HOT-ROLLED SECTION IN BARS - With diameter from 20 mm to 80 mm from carbon quality structural steel, hot –rolled and air-hardened (S 235 J 2, S 235 JR, S 355 J 2), planned output – 50 000 t/year; - With diameter from 20 mm to 80 mm from carbon quality and alloyed structural steel, hot-rolled and heat-treated (С 35 -С 60, C 35 R-C 60 R, C 35 E-С 60 Е, 34 Cr 4, 41 Cr. S 4, 25 Cr. Mo. S 4, 34 Cr. Mo 4, 42 Cr. Mo. S 4, 34 Cr. Ni. Mo 6, 51 Cr. V 4, 20 Mn. B 5, 38 Mn. B 5, 33 Mn. Cr. B 5 -2), planned output – 75 000 t/year; - With diameter from 20 mm to 80 mm from carbon quality and alloyed structural steel (C 10 R, C 15 R, 28 Cr. S 4, 16 Mn. Cr. S 5, 20 Mn. Cr 5, 18 Cr. Mo 4, 20 Cr. Mo. S 3, 15 Ni. Cr 13), planned output – 100 000 t/year;

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