Babcock & Wilcox Beijing Company, Ltd.

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1 Babcock & Wilcox Beijing Company, Ltd. Babcock & Wilcox Beijing Company, Ltd. (BWBC), formed in 1986, is a joint venture company between Babcock & Wilcox Power Generation Group, Inc. (B&W PGG), an operating unit of The Babcock & Wilcox Company, and Beijing Jingcheng Machinery Electric Holding Co., Ltd. for the design and manufacture of utility and industrial fossil fuel steam generators and related products. BWBC s primary offices and manufacturing facility are located in Beijing, People s Republic of China, where it has 125,000 square meters (1.3 million square feet) of manufacturing shop space with the capacity to fabricate up to 8,000 MW of boilers per year. BWBC employs approximately 2,500 workers and has an engineering capacity of approximately 200,000 hours per year. In addition to being a joint venture company of B&W PGG, BWBC is a licensee of B&W PGG s extensive portfolio of boiler product technologies. BWBC also serves as a primary detail engineering and manufacturing shop for B&W PGG, and is closely connected to nearly all of B&W PGG s original equipment boiler projects regardless of project location. Joint venture company management B&W PGG is a 50% shareholder in BWBC and is integrally involved in the management of the joint venture company. B&W PGG executives serve on the board of directors and are actively engaged in BWBC s major business decisions. B&W PGG appoints the President and the Controller of BWBC, with respective responsibilities for day-to-day general management and financial management of the company. The BWBC management team reports directly to B&W PGG, sharing goals, objectives for projects and financial results. B&W PGG provides BWBC with management support and training in all business functions. Tube panel welder.

2 BWBC capabilities Complete project management, engineering, procurement, manufacturing and on-site services Fabricated burners and tube sections ready for shipment. B&W PGG licensee B&W PGG licenses to BWBC a full complement of utility and industrial boiler products, as well as low NO x burners and selective catalytic reduction (SCR) NO x control systems. Licensed utility boiler products include B&W PGG s subcritical drum-type Radiant Boiler (RB) and B&W PGG s line of supercritical once-through boiler products: UP, SWUP and VTUP boilers. B&W PGG provides technical training to BWBC personnel for design and manufacture of all licensed products and maintains current design standards and proprietary design software at BWBC for projects sold by BWBC in China and for export scope. B&W PGG also provides technical support to BWBC as needed for the design, manufacture and operation of the licensed products that BWBC supplies. Primary detail engineering and manufacturing shop for B&W PGG BWBC functions as a primary detail engineering and manufacturing shop for many of the subcritical and supercritical utility boilers sold by B&W PGG. Typically, the basic boiler design is developed by B&W PGG, the detail design and shop drawings are prepared by BWBC, and the pressure parts are fabricated by BWBC in Beijing and shipped to the United States (U.S.) or other international project sites. Throughout a project life cycle, B&W PGG Engineering, Quality Assurance, Project Management and Manufacturing experts work in Beijing with BWBC, as the boiler engineering and fabrication are executed. Additionally, BWBC has fabricated upgrade and replacement components for a number of B&W PGG s utility customers in North America and worldwide. Such components include superheater and reheater sections, replacement Cyclone furnaces and low NO x burners for boilers up to 1300 MW. BWBC experience To date, BWBC has sold more than 175 utility boilers with a total capacity of 72,000 MW for China and export markets since it was established in Of these, 41 are supercritical boilers with a total capacity exceeding 26,000 MW. The first six domestic supercritical SWUP units (all 600 MW), began commercial operation in and each continues to achieve operational success. Main boiler scope pressure parts structural steel pulverized coal combustion systems air heaters SCR NO x emissions control systems Manufactured products membrane panels sections steam drums headers burners Cyclone furnaces machined parts BWBC manufacturing and quality program B&W PGG maintains a resident expatriate quality inspector at the BWBC manufacturing facility and BWBC follows B&W PGG s quality management system program for all of its work. BWBC is ISO 9001 certified and maintains ASME U, S and PP code stamps in addition to Chinese code certifications. Transfer of technology and management expertise B&W PGG expatriate staff When BWBC was established in 1986, the joint venture was staffed with a large number of experienced expatriate managers from B&W PGG, who headed the key functions for the joint venture company, including general management, finance and accounting, engineering, manufacturing, quality management, and marketing. These expatriate managers played a key role in transferring product technologies related to boiler design and manufacturing, as well as the expertise for managing a multinational operation.

3 Local managers were trained and gradually assumed key management functions. BWBC staff training Technical training programs for BWBC staff are ongoing at B&W PGG s offices in Barberton, Ohio, U.S.A. and other locations. Senior managers and leading technical experts from B&W PGG participate in these programs. Joint engineering meetings are held on a regular basis to exchange technical experience, research and ideas between B&W PGG and BWBC engineering specialists. Similar specific exchanges continue, particularly on advanced projects such as designs for 1000 MW ultra-supercritical boilers and the supercritical variable pressure, vertical tube (VTUP) boilers for projects in China. Shared benefits Since its inception in 1986, BWBC has been an integral part of B&W PGG. Together, the organizations continue to design, develop and manufacture advanced steam generation products for utility and industrial markets worldwide. Tube fabrication shop. Shared resources have resulted in a successful business model that is mutually beneficial. Spiral Wound Universal Pressure Boiler Downshot Boiler Process Recovery Boiler B&W PGG Products Licensed by BWBC Utility Boilers UP Supercritical constant pressure furnace SWUP Supercritical variable pressure furnace with spiral wound tubes VTUP Supercritical variable pressure furnace with vertical tubes Wall-fired furnace Downshot ( W type) furnace Radiant Boiler Carolina (RBC) Subcritical drum-type for solid fuels Wall-fired furnace Downshot ( W type) furnace Cyclone furnace Radiant Boiler El Paso (RBE) Subcritical drum-type for oil/gas fuels Industrial Boilers Stirling Power Boiler (SPB) Circulating Fluidized-Bed boiler (CFB) Spreader Stoker boiler (SS) Power for Industry (PFI) Package boiler (FM) Process Recovery boiler (PR) Municipal Solid Waste boiler (MSW) Environmental Equipment/Systems Low NOx burners Various models Selective Catalytic Reduction (SCR) NOx reduction systems Circulating Fluidized-Bed Boiler DRB-4Z Low NO x Burner

4 Steam drum manufacturing. Panel shop. Tube to tube arc welding machine. Drum head forming with hydraulic press. Low NO x burner manufacturing. Replacement Cyclone furnace fabrication.

5 B&W PGG / BWBC Joint Venture Facts: BWBC serves as a primary detail engineering and manufacturing shop for B&W PGG B&W PGG is actively involved in BWBC by: maintaining a 50% equity stake participating on the board of directors providing expatriate staff for management of overall operations and for advisory support in areas like quality and engineering Successful transfer of technology and management expertise Ongoing training and technology licensing program for the latest products BWBC s location in Beijing includes: 125,000 m 2 (more than 1.3 million ft 2 ) of manufacturing space 200,000 hours per year of engineering capacity BWBC is ISO 9001 certified and maintains ASME U, S and PP code stamps in addition to Chinese code certifications BWBC has sold more than 175 utility boilers with a total capacity of 72,000 MW since it was established in 1986 Jinzhushan power plant. Leiyang power plant. Diandong power plant.

6 Babcock & Wilcox Beijing Company, Ltd. Milestones 1867 The Babcock & Wilcox Company (B&W) founded 1956 Beijing Boiler Works (BBW) founded 1986 Babcock & Wilcox Beijing Co. Ltd. (BWBC) established 1989 Delivered first 300 MW boiler 1990 Delivered first 600 MW boiler 1995 Commissioned tube assembly line (TAL) 1996 Completed drum shop 1997 ISO 9001 accreditation 1999 First order for supercritical (SWUP ) boiler 2003 First order for 600 MW W type downshot boiler 2004 BWBC facility enlarged, 3 shops expanded (burners, tube, panels) 2005 Commissioned new MPM12 double-sided panel welder 2006 First order for SCR system (2 x 600 MW) 2006 Order for supply of 8 x 858 MW SWUP supercritical boilers for export to U.S Order for 600 MW ultra-supercritical SWUP boiler for U.S Order for first vertical tube low mass flux supercritical VTUP downshot boiler 2007 First replacement Cyclone furnace order for U.S. market 2007 First 1000 MW SWUP boiler awarded 2007 First ultra-supercritical boiler awarded for China market 2009 Successful start-up of the world s first vertical tube low mass flux supercritical VTUP downshot boiler Babcock & Wilcox Power Generation Group, Inc. 20 S. Van Buren Avenue Barberton, Ohio USA Phone: Fax: The information contained herein is provided for general information purposes only and is not intended nor to be construed as a warranty, an offer, or any representation of contractual or other legal responsibility. UP, SWUP, VTUP, Stirling, DRB-4Z and Cyclone are trademarks of Babcock & Wilcox Power Generation Group, Inc. Babcock & Wilcox Power Generation Group, Inc. is a subsidiary of The Babcock & Wilcox Company (B&W). Established in 1867, B&W is a world leader in providing steam generating and emissions control equipment, nuclear operations and components, and defense program management services. For more information, or a complete listing of our sales and service offices, call BABCOCK ( ), send an to info@babcock.com, or access our Web site at Babcock & Wilcox Power Generation Group, Inc. All rights reserved. PS DC0J

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