China Yangzhou plant

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1 China Yangzhou plant TM

2 Marcegaglia China 714,000 sqm total area 153,000 sqm first phase covered area EN norms production quality standards Precision tubes from carbon and stainless steel Beijing Yangzhou Shanghai Macau Taiwan Hong Kong

3 Marcegaglia China spreads over a land of 714,000 m² located in Guangling Economic Development Zone, Yangzhou (270 km from Shanghai). The first phase of plant development includes 153,000 m² of covered production area equipped with European manufacturing systems, plus a 4,200 m² office building. Marcegaglia tube production is implemented in complete accordance with EN norms including raw materials procurement, production, quality control, on time delivery and after-sale service, in order to supply top level complete solutions to our customers.

4 Quality and environment Marcegaglia China is currently certified according to the most advanced international standards: ISO 9001:2000 for the Quality Management system ISO for the Environmental Management System OHSAS for the Occupational Health and Safety management system The ISO/TS required by the Automotive customers for the Quality Management System is currently under development.

5 In addition we guarantee: strict compliance with EN norms including raw materials procurement, production, quality control, delivery, after-sale-service; same level of environmental standards required in EU is currently implemented; all major certifications in the sector are being applied for manufacturing, production equipment are compliant with the latest energy saving criteria; highest level of service to comply with Marcegaglia worldwide standards.

6 Production areas All main production lines in Marcegaglia China are imported from Europe, represent the latest technology in the field of tube production and are a perfect replica of the lines operating within Marcegaglia European plants. All the processes employed by Marcegaglia China are the same used in Italy, so that the same quality and efficiency of European-made products can be guaranteed. 1) Coil slitting 5) Refrigeration tube mills 4 5 2) Carbon steel welded tube mills 6) Pickling 3) Stainless steel welded tube mills 7) Heat treatment 4) Cold-drawn precision tube mills 6 7

7 Carbon steel welded tubes (ERW) Min. thickness (mm) 1,50 Max. thickness (mm) 16,00 Min. diameter (mm) 20 Max. diameter (mm) 254 SUPPLY CONDITIONS - Dimensional tolerances according to manufacturing standard - Special tolerances upon request - Control documents 2.1, 2.2, 3.1, 3.2 according to EN and specific norm requirements

8 Carbon steel welded tubes (ERW) Round carbon steel welded precision tubes Square carbon steel welded precision tubes Rectangular carbon steel welded tubes

9 Main manufacturing standards MANUFACTURING STANDARD PRODUCT DESIGNATION TREATMENT GRADE* SURFACE CONDITIONS EN Round and shaped precision tubes +CR1 Welded and sized +A Annealed +N Normalized +CR2 Welded and sized E190, E320, E220, E370, E260, E420 E155, E195, E235, E275, E355 S1 From hot-rolled strip, black S2 From hot-rolled strip, pickled EN Square and rectangular precision tubes EN Cold formed welded structural tubes (CE homologation) S235JRH S275J0H S275J2H S355J0H S355J2H (*) Upon request: supply of grades not included in the above mentioned standards

10 Manufacturing process COILS SLITTING tube forming and welding NORMALIZATION STRAIGHTENING AND CUTTING NON DESTRUCTIVE TESTING PACKAGING

11 Testing STANDARD AND OPTIONAL TESTING Chemical analysis Tensile test STANDARD TEST Visual and dimensional test 100% Flattening test or drift expanding test (*) Roughness measurement Eddy current test 100% acc. to EN Ultrasonic test 100% acc. to EN OPTIONAL TEST NDT of the full tube circumference for longitudinal imperfections (*) The test method is at the discretion of the manufacturer; this option only applies for tubes supplied in the annealed or normalized delivery condition.

12 Typical applications Marcegaglia has developed a unique know-how in the manufacturing of precision tubes to meet the strict dimensional and surface specifications requirements by manufacturers in key sectors such as constructions and mechanical engineering.

13 Typical applications Precision tubes for steel structural work Precision tubes for piling Precision tubes for lifting equipment (building hoists and tower cranes) Roller conveyor tubes Precision tubes for pressure purposes The production program of Marcegaglia carbon steel welded tubes covers a wide range of structural and precision mechanical applications, guaranteeing specific suitability for subsequent processing. Precision tubes for automotive applications Precision tubes for the cycle and motorcycle industry Precision tubes for other industrial applications

14 Cold-drawn precision tubes (DOM) Product range Welded Seamless Min. thickness (mm) 2 2 Max. thickness (mm) Min. diameter (mm) Max. diameter (mm) SUPPLY CONDITIONS - Tubes are supplied in 5000/8000 mm lengths unless otherwise specified in order - Dimensional tolerances according to manufacturing standard - Special tolerances upon request - Control documents 2.1, 2.2, 3.1, 3.2 according to EN and other specific norm requirements

15 Main manufacturing standards MANUFACTURING STANDARD PRODUCT DESIGNATION GRADE* TREATMENT +C Hard. No final treatment after final cold drawing. EN Cold-drawn welded tubes E195 E235 E275 E355 +LC Soft. Final heat treatment is followed by a suitable drawing pass (limited reduction of area). +SR Stress Relieved. After final cold drawing, the tubes are stress relieved in a controlled atmosphere. +A Annealed. After final cold drawing, the tubes are annealed in a controlled atmosphere. +N Normalized. After final cold drawing, the tubes are normalized in a controlled atmosphere. EN Cold-drawn seamless tubes (CDS), only for high thickness tubes (please refer to dimensional table) E195 E235 E275 E355 (*) Upon request: supply of grades not included in the above mentioned standards

16 Testing STANDARD AND OPTIONAL TESTING Chemical analysis Tensile test STANDARD TEST Visual and dimensional test 100% Roughness measurement Eddy current test 100% acc. to EN Ultrasonic test 100% acc. to EN Impact test NDT on longitudinal imperfections OPTIONAL TEST Flattening test or drift expanding test

17 Typical applications Precision tubes for hydraulic applications Precision tubes for mechanical and automotive applications Mechanical properties, as well as strictly controlled dimensional tolerances, give cold-drawn tubes significant advantages for several precision applications.

18 Italy China Dedicated manufacturing plants based in Europe and Asia regularly supply the world markets with a specialized production program for the hydraulic cylinder industry and other automotive applications.

19 Product range Cold-drawn tubes for automotive and mechanical applications Cold-drawn tubes for cardans TECHNICAL CHARACTERISTICS TECHNICAL CHARACTERISTICS GRADE E195, E235, E275, E355 GRADE E195, E235, E275, E355 TREATMENT +C, +LC, +SR, +A, +N TREATMENT +C, +LC, +SR, +A, +N surface treatments Outside diameter and inside diameter: smooth as drawn (EN ) On request: roughness Ra < 0.4 m dimensional TOLERANCE Optional processing Standard: according to EN Special: on request Drawing in reactive oil Dephosphating

20 Product range Ready-to-use cylinder tubes TECHNICAL CHARACTERISTICS GRADE E355 TREATMENT +C surface treatments Outside diameter: smooth as drawn (EN ) dimensional TOLERANCE Inside diameter: roughness Ra < 0.80 m (average m) Inside diameter: ISO H9 (ISO H10 for thickness < 4 mm) DELIVERY CONDITIONS - Standard packaging with plastic caps and strapped bundles, standard weight approx kg - Commercial lengths mm, custom lengths upon request - Surface protection - Marking: MM E355 OD x ID EN C - Heath

21 Product range Cylinder tubes suitable for honing, skiving and roller burnishing TECHNICAL CHARACTERISTICS GRADE TREATMENT surface treatments E355 +SR Outside diameter: smooth as drawn (EN ) Inside diameter: with stock allowance (for honing or skiving and roller burnishing) DELIVERY CONDITIONS - Standard packaging with strapped bundles, standard weight approx kg - Commercial lengths mm, custom lengths upon request - Surface protection - Marking: MM E355 OD x ID EN C - Heath

22 Product range Cold-drawn tubes for telescopic cylinders TECHNICAL CHARACTERISTICS GRADE TREATMENT surface treatments E355 +SR Outside diameter: smooth as drawn (EN ) Inside diameter: roughness Ra < 1.6 m

23 Stainless steel welded tubes (SS) Product range Min. thickness (mm) 1 Max. thickness (mm) 5 Min. diameter (mm) 19 Max. diameter (mm) 88.9 SUPPLY CONDITIONS - Dimensional tolerances according to manufacturing standard - Special tolerances upon request - Control documents 2.2, 3.1, 3.2 according to EN and specific norm requirements

24 Main manufacturing standards EN , (ASTM A270), (DIN 11850) Process pipes for the food and dairy industry PROCESS PIPES FOR FLUIDS EN , (DVGW GW541) EN , EN EN EN , (AD 2000 W2/W10), (PED 97/23) EN , (DIN 11866) Process pipes for drinkable water and press fitting Process pipes for water treatment Process pipes for the pulp and paper sector Process pipes for chemical applications Process pipes for pharmaceutical applications EN , (ASTM A312 / A778) Process pipes for oil and gas applications

25 MECHANICAL APPLICATIONS EN EN EN EN Round tubes for pumps and cylinders Round tubes for elbows and fittings Round tubes for heat resistances AUTOMOTIVE EN 10296, (ASTM A554) EN 10296, (ASTM A554) EN 10296, (ASTM A554) Round tubes for automotive, exhaust systems Round tubes for automotive, hydroforming appliance Round tubes and box sections for automotive frame construction

26 Typical applications Precision tubes for for fluids Precision tubes for mechanical and automotive applications Feedwater heater tubes for power plants

27 Marcegaglia stands out today as the world s top producer of stainless steel welded tubes with top-level certified manufacturing activities worldwide and an overall capacity of 400 thousand tons per year.

28 Standard delivery program LASER welding Round tubes EN , EN HF welding Round tubes EN , EN 10296

29 Refrigeration tubes (TR) diameter mm nominal weight g/m 4, , , SUPPLY CONDITIONS - Outside diameter tolerance: nominal ±0,1 mm - Wall thickness tolerance +0,05 mm / -0,10 mm

30 Typical applications Tubes for condensers and refrigeration components Marcegaglia special range of refrigeration tubes is manufactured according to the specific sector norms and tolerances, and is thoroughly tested to allow use in applications such as condensers and evaporators for heating and cooling systems and household appliances.

31 Production process design and development The quality of the products manufactured by Marcegaglia China is suitable for many applications but it perfectly fit for the high requirements of OEM (Original Equipment Manufactures) customers. In order to supply OEM customers with high quality and service, Marcegaglia China has developed an accurate Process Control system and a special organization with Supply Chain and Project Management. Design and sample preparation are fundamental steps for supply new products to OEM customers. Marcegaglia China technical team has developed high skill and experience in product development for many international and domestic OEM customers. The Quality System is also designed and implemented in order to meet the highest standards.

32 Production process design and development Two are the main steps required to develop prototypes for new products: Analysis of the customer requirements based on: - Manufacturing requirement - Steel grade (or chemical component) - Mechanical properties - Dimensions - Delivery condition - Surface conditions - Inspection certificate - NDT test Development of the manufacturing process, which is different for each type of product. New product development flow chart Collect and analyze marketing information Get customer request Product process design Sample production Sample production validation Manufacturing process confirmation Delivery Sample approval by customer Mass production

33 Production process design and development Carbon steel welded tubes (ERW) Choose the proper steel grade based on the chemical, mechanical and roughness requirements, Marcegaglia recommends the proper raw material based not only on EN standard, but also JIS, ASTM and GB standard. Calculate the proper width of the strips thanks to many years of experience in tooling manufacturing, Marcegaglia has successfully developed rules to select the exact width range for different sizes. Choose the tooling, including the inner scarfing tools type for different Finpass rolls, we employ different radius of the scarfing knife, adjusting its height by adjusting the tooling pressure to obtain smooth surface of the welding area. Set up the welding parameters Marcegaglia has a well-developed data storing system to record all the welding parameters which can be reference for further production. Set up the acceptance level of defect by eddy current test the acceptance level is set up according to customer requirement or general norms. Process and production validation dimensional test to verify the strip width, tooling and inner scarfing process. Flattening/drift expanding test according to different steel grade and also different norms to check the quality of the welding. According to customer requirement, we can also perform specific test 3.1 according to EN

34 Production process design and development Cold-drawn tubes (DOM) Choose the proper hollow size the hollow size should be chosen so that the reduction rate is located in the proper range. The reduction rate is calculated with the following formula: Reduction rate=(100-((w1 / W2)*100))*100% W1: kg per meter of finish size W2: kg per meter of hollows W1: =(OD1-T1)*T1* W2: =(OD2-T2)*T2* Select the pickling mode based on the surface requirement, a phosphating or saponification process is performed. Choose the die/mandrel the shape of the die/ mandrel is a critical controlled characteristic. For TTC (ready-to-use) products, special dies are required. Set up the Stress Relieving (SR) process parameters according to different customer requirement, a different heating time, cooling time and cooling speed is set up. Verify the drawing stress during cold drawing, the mechanical stress should comply with the following formula: P/F=K < δs P: hollows drawing force (kgf) F: finished size section area (mm²) K: stress of drawing (kgf/mm²) δs: yield strength of finished tube (kgf/mm²) Process and production validation testing is performed before/after cold drawing to verify the reduction rate. Test before/after SR to verify the furnace setting parameters. Process and production validation though statistic evaluation of the parameters.

35 Production process design and development Comparisons between Cold-Drawn Welded (CDW) and Cold-Drawn Seamless (CDS) tubes The advantages of cold-drawn welded tubes when compared to cold-drawn seamless tubes can be summarized as: Better geometry (OD and ID roundness) Improved quality surface (less defect after painting and improve fatigue life) Tighter eccentricity and wall thickness tolerances (the eccentricity is 3% max instead of 8%-10% normally guaranteed from seamless tubes) Higher tube safety (tubes are controlled 100% by ultrasonic test and eddy current test) Better toughness at low temperature For these reasons Marcegaglia China always recommend to use CDW tubes when the thickness permits it; indeed in Europe and USA, most cylinders are produced with welded tubes.

36 Production process design and development Stainless steel products (SS) Choose the proper steel grade based on the chemical, mechanical and roughness requirement, Marcegaglia recommends the proper raw material based not only on EN standard, but also JIS, ASTM and GB standard. Calculate the proper width of the strips thanks to many years of experience in tooling manufacturing, Marcegaglia has successfully developed rules to select the exact width range for different sizes. Choose the tooling, including the inner scarfing tools type for different Finpass rolls, we employ different radius of the scarfing knife, adjusting its height by adjusting the tooling pressure to obtain smooth surface of the welding area. Set up the welding parameters Marcegaglia has a well-developed data storing system to record all the welding parameters which can be the reference for further production. Set up the acceptance level of defect by eddy current test acceptance level is set up according to customer requirement or general norms. Process and production validation dimensional test to verify the strip width, tooling and inner scarfing process; flattening/drift expanding test according to different steel grade and also different norms to check the quality of the welding. According to customer requirement, we can also perform specific test 3.1 according to EN

37 Service center The highly specialized service center machinery is dedicated to the the most diverse treatments and finishings of Marcegaglia product range of carbon and stainless steel tubes. Tailor-made services include cutting, end-finishing, special packaging and on-time scheduled delivery, plus a series of additional processing according to customer defined special requirements. In addition to standard supply conditions, additional processes or solutions can be provided according to customers requirements.

38 Optional processing Suitability for subsequent galvanizing Complete normalization or weld area normalization Additional heat treatments Weld seam removing Special end finishing Cut to length Customer defined marking Restricted tolerances Welding position control Surface roughness measurement Delivery without corrosion protection (degreased) Specific corrosion protection Specific packaging method Selection of tubes from a single casting Hot galvanization Drawing in reactive oil Dephosphating

39 Laboratory and testing The tubes produced in Marcegaglia China are strictly controlled to ensure the quality requirements. Tests are done both on the production lines (as described before) and on the finished products before shipment. Operators are continuously trained to guarantee that tests are performed in the correct way. Marcegaglia China laboratory is equipped with the full range of testing equipments suitable to characterize the tubes according all main international technical standards. All main testing equipment are imported to guarantee the best accuracy and reliability of the measurements. All batches of finished tubes are tested according to control plans defined by the norms or according to the customers specific requirements, all batches are delivered with quality certificate to ensure the compliance.

40 Laboratory and testing Optical Emission Spectrometer Chemical analysis on raw material and final product Hydraulic Universal Testing Machine Mechanical analysis on raw material and final product Technical standard GB/T 4336 ASTM E % Raw material verification 100% Final product verification Technical standard GB/T EN ISO ASTM E8M 100% Raw material verification 100% Semiproduct verification 100% Final product verification

41 Laboratory and testing Charpy Impact Tester Mechanical analysis on raw material and final productt Technical standard GB/T 229 EN ISO % Raw material verification 100% Semiproduct verification 100% Final product verification

42 Laboratory and testing Hardness Tester Hardness analysis on raw material and final product Technical standard GB/T 230.1; GB/T 4340 EN ISO ; EN ISO ASTM E18; ASTM E92 Hardness analysis on raw material, semiproduct and final product. HRA, HRB, HRC, HV, HR30T, HR30N

43 Laboratory and testing Roughness Tester Roughness test on semi-product and final product Metallographic Analysis Metallographic examination on raw material and final product - Process verification Technical standard EN ISO 4287 Surface roughness on semiproduct and final product. Technical standard GB/T 6394; GB/T10561: GB/T 224 EN ISO 643; EN ISO 4967 ASTM E112; ASTM E45 Grain size, non-metallic inclusions, decarburization, etc.

44 TM No.1 Marcegaglia Road Guangling Economic Development Zone Yangzhou P.R. China china@marcegaglia.com

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