KLW. Setting the world in motion. KLW: setting the world in motion Page 1

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1 KLW. Setting the world in motion Page 1

2 KLW brand KLW is the wheel brand of global steel company Interpipe. Interpipe is one of the largest producers of railway wheels in the world. KLW is a single brand of Interpipe s wheel division consolidating sales to all of our strategic markets. Page 2

3 Interpipe international company, producer of steel pipes and railway wheels Global steel pipe producer Production, ,1 mln tons of steel pipes: Seamless pipes: 830,000 tons Welded pipes: 260,000 tons Third largest producer of forged railway wheels in the world Production, 2012: 205,000 tons Revenues 2012: US$ 2 bln Third largest producer of forged railway wheels in Page 3

4 KLW Wheelco the major supplier and the largest exporter of the railway wheels Page 4

5 Vertically Integrated Business Model Scrap processing Steel production Pipe & wheel production Global net work of sales offices Scrap Processing & Collecting Plant Interpipe Steel INTERPIPE NTRP Ukraine, Russia, CIS Middle East Modern electric steel smelting complex INTERPIPE NIKO TUBE North America INTERPIPE NMPP Europe Page 5

6 Strategic investment Interpipe Steel In 2012 Interpipe has launched new electric steel melting complex Interpipe Steel. The new mill ensures the provision of company s plants with high quality billets for the production of seamless pipes. Investments into the project amounts to 700 million USD. When Interpipe Steel reaches its full capacity in 2014, it will become the largest electric steel smelting complex in Eastern Europe. Its capacity will amount to 1.32 million tons of round wheel and pipe billets per year. Page 6

7 A Global Sales Geography In 2012 pipes were sold in 64 countries, wheels were sold in 25 countries Ukraine 28% Europe 7% Russia CIS 28% 19% North America 10% MENA 7% Page 7

8 INTERPIPE NTRP RAILWAY WHEELS PRODUCTION Page 8

9 Production site INTERPIPE NTRP Railway wheels under KLW brand are produced at the company's Interpipe NTRP mill in Dnepropetrovsk, Ukraine. Steel melting shop in the mills structure enables us to enforce quality control at all stages of product manufacturing from steel melting to the acceptance test of wheels and tyres. The mill has more than seventy years of experience in manufacturing of railway wheels. In 2012 total Internal rejection level made less than 1% Page 9

10 Production capacities Project capacity: Steel 530 thousand tons Wheels 250 thousand tons Tyres 62 thousand tons Steel pipes 1024 thousand tons Page 10

11 Huge experience in the market place 1935 The first wheel produced 1970 Ten millionth railway wheel produced 1972 New production line for railway wheels and tyres launched 1979 Wheels under KLW brand started to be supplied across Eastern Europe 1984 A major modernization program at railway wheels shop introduced 1990 The first supplies of KLW wheels India and China made 1999 Sales company KLW Wheelco found in Switzerland 2000 Interpipe recognized as the largest railway wheels exporter Interpipe implemented a full program of significant investment to increase production capacities at the Interpipe NTRP mill Page 11

12 Certification of railway products Quality Management System ISO 9001 (TUV CERT, Germany) AAR M-1003 (Association of American Railroads, the USA) Products have been certified by the leading railroad operators: AAR/Association of American Railroads DB/German Railways Railtrack/Operator of the Great Britain railway infrastructure OBB/Austrian Railways PKP/Polish Railways SZ/Slovenian Railways BDZ/Bulgarian Railways SBB/Swiss Railways MAV/Hungarian Railways Page 12

13 WHEELS PRODUCTION TECHNOLOGY WHEELS PRODUCTION TECHNOLOGY Page 13

14 Interpipe NTRP wheel rolling workshop structure The wheel rolling production includes the following: Press rolling line for production of wheels with diameters from 650 to 1269 mm Press rolling line for production of wheels and tires Mechanical finishing floor for wheels Heat treatment floor for wheels and tyres Shot peening line for wheels Non-destructive testing line for wheels and tyres (ultrasonic, magnetic particle testing, and hardness control) Finishing floor for wheels and tyres Page 14

15 Wheel production technology at Interpipe NTRP Linsinger sawing unit (Austria) Project investments: USD million Commissioned: Output capacity achieved: KSS 1600 sawing unit, manufactured by Linsinger Company from Austria has the productivity of 21 cuts / hour. Page 15

16 Wheel production technology at Interpipe NTRP Continuously cast billets' stock Page 16

17 Wheel production technology at Interpipe NTRP Blank production section Metal for production of wheels comes to the blank production section of the wheel rolling workshop in the form of continuously cast billets (CCB) The list of works, carried out by the blank production section of the wheel rolling workshop, includes CCB cutting into single bars, notch cutting, and breaking. Page 17

18 Rolling area Ring furnaces are used to heat billets for rolling. Page 18

19 Press rolling line Rolling area Press rolling operations are conducted by the following units: press 20 MN press 50 MN press 100 MN wheel rolling mill press 35 MN Page 19

20 Press rolling line Heat treatment floor for wheels The heat treatment floor is used to subject wheels to thermostrengthening for formation of a set of steel s mechanical properties: discontinuous quenching of rims with subsequent tempering. Page 20

21 Mechanized line for wheel treatment by shot The following has been introduced: technology of wheel treatment by shot to clear the wheel disk surface from scale technology of wheel disk surface hardening by shop Page 21

22 Mechanical finishing floor In 2008, in the framework of the strategic investment program, the Company installed and commissioned the automated line for the full-profile finishing of railway wheels with the capacity of 100 thousand mechanically finished wheels a year. The floor is equipped with 4 "HEGENSCHEIDT" Company machines for mechanical finishing of wheels. CNC line (SEDIN, Russia) with the capacity of pieces / year for the finishing of wheel centers and tyres. The finishing of the locomotive wheels will become the result of the current modernization. Page 22

23 Automated wheel control line It consists of the following units: Unit to control geometrical parameters of railway wheels, manufactured by "Amest" (Czech Republic) Unit to control hardness of railway wheels, manufactured by "Ernst" (Switzerland) Unit for ultrasonic testing of railway wheels, manufactured by "Starmans" (Czech Republic) Magnetic Particle Inspection unit, manufactured by "Ultracon service" (Ukraine) Bar-coding machine for railway wheels Page 23

24 Automated wheel control line Supplementary equipment for acceptance and control of the mechanically finished products: Numerically controlled machine for maintenance trueing of railway wheels, manufactured by OJSC "Krasnodar machinetool plant" (Russia) Numerically controlled machine for drilling, milling and boring, manufactured by OJSC "Sterlitamak machine-tool plant" (Russia) Unit to control and eliminate unbalance of railway wheels, manufactured by "Diamex 2000" (Russia) Page 24

25 Thank you! Page 25

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