KAMENSK-URALSKY METALLURGICAL WOKS (KUMZ)

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1 KAMENSK-URALSKY METALLURGICAL WOKS (KUMZ)

2 KUMZ history May, 5 th, year 1944 The Birth of the Plant Kamensk-Uralsky city, Sverdlovsk region 2

3 KUMZ is composed of: casting production forging production rolling-mill production aircraft sheet and plate production 3

4 Dynamics of KUMZ production tons (pr) production, tons 4

5 KUMZ product application Aircraft industry Transport Military-industrial complex Building Oil and gas industry Engineering industry and others 5

6 АВИАПРОМ KUMZ products: Sheet Plate Forging Profile Rolled ring Airbus Boeing Bombardier Embraer Goodrich Snecma JSC «ОАC» : -«KnAAPO» J.S.Co. (Komsomolsk-on-Amur city) -«Taganrog aircraft scientific-technical complex» J.S.Co. - «Voronezh joint-stock aircraft company» J.S.Co. - «Aviastar» C.J.S.Co. - «Nizhny Novgorod aircraft company «Sokol» J.S.Co. - «Russian aircraft corporation «MiG» J.S.Co. - «Kazan aircraft association of S.P. Gorbunov» J.S.Co. - «Irkutsk aircraft plant» J.S.Co. -«NAPO of Chkalov» J.S.Co. - «AVIAKOR aircraft plant» J.S.Co. - «Rostvertol» J.S.Co. - «Ulan-Ude aircraft plant» J.S.Co. - «Kazan helicopter plant» J.S.Co. - «AAK Progress of N.I. Sazykin» J.S.Co. Honeywell CATIC 6

7 Al-Li Alloys Al-Li alloys are developed and still being developed by Russian Institution for Aviation Materials (VIAM). KUMZ is one of the three world companies, and unique in Russia, which produces AL-Li alloy semi-finished products. Li content: 1.0% up to 2.4% Advantages of Al-Li: About 10% lighter than standard Al alloys Strength and fatigue characteristics Corrosion resistance Weld ability Applications of Al-Li: Aviation and aerospace Sheet: Extrusion: Forgings: fuselage, plane wings, spacecraft fuel tanks beams and critical parts in aircraft wheels and critical parts in aircraft 7

8 Al-Li Alloys In planes MIG-29М and MIG-29МК were created from Al- Li alloys with welding. The planes had 18% winning in weight, all welding operations were automatically made. Results: 18% winning in weight, which gives: - increased fuel reserve - larder range of action - increase in the number of arms automated welding process > 80% improved maintainability, including in the field conditions 8

9 Strategic partners: TRANSPORT Russian Railways Siemens VASO UVZ RusPromAvto DMZ (Demihovo) Incat Austal Brush Electrical Machines Samsung Heavy Industries Alstom 9

10 Customers: Customers: Kurganmashzavod Rosoboronexport Zvyozdochka Sevmashpredpriyatiye Raytheon McDonnel Douglas Westland Helicopters Sikorsky MIC and Nuclear Power Engineering ZiD Tochmash 10

11 Proposal for the construction of Rolling Complex with capacity of tons per year Title Investment, in million of roubles 1 Stage 1 Cold rolling mill construction Stage 2 Hot rolling mill construction Total project: Total project investments are: million Russian roubles Net present value (NPV) million Russian roubles Internal rate of return (IRR) 14,1 % Payback period (PP) 8,4 years 11

12 Project «Rolling Complex Construction» Stage 1 «Cold rolling mill construction» Title Expectant Doers 1 Design woks (5%) Russian design institutes 2 Equipment (70%) Companies - tenderers: 1. SMS SIEMAG Germany, 2. SIEMENS VAI Great Britain, 3. Achenbach Germany, 4. Uralmash Russia Realization period Output, tn Construction works (25%) Russian construction plants Investments for the 1 st Stage of the Project million roubles 12

13 Project «Rolling Complex Construction» Stage 2 «Hot rolling mill construction» Title Expectant Doers 1 Design woks (5%) Russian design institutes 2 Equipment (70%) Companies - tenderers: 1. SMS SIEMAG Germany, 2. SIEMENS VAI - Great Britain, 3. Achenbach Germany, 4. DANIELI - Italy Realization period Output, tn Construction works (25%) Russian construction plants Investments for the 2 nd Stage of the Project million roubles 13

14 General lay-out of the Rolling Complex Warehouse Building profiles Cleanings Secondary alloys workshop I stage of the Rolling Complex II stage of the Rolling Complex Casting production Extrusion production Drill pipes Extrusion production Demidovskiy plant Dispensary Stocks Forging production Extrusion production (carrying-out to shop 40) Stocks Repairs Auto transport workshop Tool workshop Woodworking Forging production Public catering Printing office Laboratory Rolling production Rolled-and-welded products Project «Chkalovsky» (realized in December, 2007) Railway workshop Flammable liquid warehouse Construction workshop 14

15 Layout of the Rolling Complex 1 st Stage 2 nd Stage 15

16 Experience in performing Investment projects 2005 Start-up construction of new factory Chkalovsky, Ltd., for aircraft plate production Output tons annually, Investment - 90 million $, 2007 The factory is commissioned (December, 12 th, 2007) 16

17 Experience in performing Investment projects Also the next major projects were successfully realized: 2006 г. Two new casting machines with the production capacity of 30,000 tn for aircraft production were constructed. Investments in 2006 year million roubles 2007 г. Commissioned: furnace for coils annealing in an inert atmosphere homogenizing furnace for ingots unit for quenching forgings for aircraft industry thick bars cutting section new highway around KUMZ for shipment of goods by road Total investment 742 million roubles г. Hot rolling mill was modernized, and a new billet cutting line was started-up. Investments million roubles 2009 г. Melting-and-casting unit with capacity of 60, 000 tn, as well as ingot heating furnace were constructed and prepared for the commissioning. Investments million roubles г. Modernization of vertical press with capacity of tn and horizontal press with capacity of tn is planned. Planned investments 800 million roubles 17

18 KAMENSK-URALSKY METALLURGICAL WORKS IS THE BEST OBJECT FOR INVESTMENTS The Plant is the main enterprise for the Russian aircraft construction. KUMZ is the basic enterprise for the research activities of Russian Institution for Aviation Materials. The Plant maintains close ties with other scientific institutes. The continuity of generations is maintained at the plant, and this allows to develop new products in short time despite the outdated equipment. During the last 5 years the Plant performed a number of projects relating to both the upgrading of equipment and the construction of a new production. The Plant runs a Program of strategic development adopted for years. KUMZ products are certified by Boeing, Airbus, Bombardier, Siemens and delivered both in Russia and in the majority of world markets practically on all continents. 18

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