Hormozgan Steel Company (HOSCO)

Hormozgan Steel Company (HOSCO)

list of countries by steel production from 2007 to 2012, )based on data provided by the World Steel Association Iran jumped one step higher and became the world's 14th steel producer in 2013.

Company name: Hormozgan Steel Company (HOSCO) Company type: Private - joint-stock company Major shareholder: Mobarake steel company Date of operation: December 2011

Hormozgan Steel Comany Persian Gulf free zone Persian Gulf

Introduction of various plant units 1 - Internal rail way yards 2 - Shunting yard 3 - Material Handling 4 - DRI 5 - Briquetting unit 6 - Steel making plant 7- Continuous casting unit 8 - Slab storage 9 - Sub-station 10 - Oxygen unit 11- Desalination plant 12- Lime plant 13 - Management 14 Central Workshop 15 Scrap yard

Starting date Plant Natural gas station Main Power Station Direct Reduction Iron Construction starting date 8/2006 8/2006 06/2006 production starting date 12/2008 01/2009 03/2009 Reverse Osmoses (RO) 10/2007 11/2009 Oxygen 12/2006 09/2010 Steel Making 08/2006 04/2011 Lime 11/2006 06/2011

Regional Facilities Availability to the Persian Gulf Vicinity to Shahid Rajaei Port Vicinity to huge gas reservoirs (Asallooye) Vicinity to iron ore mines (Gole gohar) Existence of trained work force Localization of steel making`s technical knowledge in Iran The facilities for either rail or road transportation

Ranking of HOSCO in Iran 5.5 3.4 2.5 1.5 0.85 Mobarake Steel Complex Khoozestan Steel Complex Esfahan Steel Company production(milion ton) HOSCO Khorasan Steel Company Iran has risen its steel production output by more than 9 percent due to the increase of HOSCO production capacity

Plant Units Capacity row Plant unit capacity unit 1 Continuous casting plant 1.5 Mt/year 2 Steel making plant 1.55 Ton/year 3 Shunting yard 5,000 Ton/day 4 DRI plant 1.65 Mt/year 5 Briquetting plant 40 Ton/hour 6 Slab storage 40,000 ton 7 Lime 90,000 Ton/year 8 Oxygen unit ; O2 7,500 M3/hour N2 11,000 M3/hour Argon 120 M3/hour Compressed Air 6,000 M3/hour 9 Water treatment plant 1,050 M3/hour

Material and Energy Row Description Qty Unit Source 1 Pellet in order to produce sponge iron 2.4 Mt/y Gole - gohar 2 Scrap 90,000 t/y 3 Lime 200,000 t/y 4 Ferro alloyes 60,000 t/y 5 Graphic electrod 4,200 t/y 6 Refractory 35,000 t/y 7 Natural gas with 10-20 bar(g) 550 75,000 Million m^3/y Nm^3/h Sarkhon refinery 8 Power with level 230 volts in two circuits 2 300 Milliyard KWh MW Hormozgan 9 Sea water 3,000 m^3/h 10 Oxygen 7,500 m^3/h

DRI Plant: Hourly production capacity 2 110 ton Net annual operating time 7,500 hours Rated annual capacity 2 825,000 ton Average natural gas consumption 2.6 net G cal/t DRI Average electricity consumption 115 kw h/t DRI maximum

Steel Making Plant:Melting shop Main Process Data: General Data: Process route: EAF LF Slab Caster Material charge: Carbon steel production: 35% scrap / 65% DRI Cycle times: Ave. tap to tap time EAF: 68 min LF cycle time Approx: 45 min Average Casting time Approx: 34 min Production: Yearly production time: 300 day The production capacity: 1,540,000 t of liquid steel per year

Steel Making Plant: CCM Main Process Data: Caster type: vertical bending Number of machines 1 Number of strands 2 Slab dimensions - Slab width 900 2,000 mm - Slab thickness 200 / 250 mm - Slab length 6.0 12.0 m Metallurgical length approx. 26.6 m Main machine radius 9.6 m Vertical length approx. 2.9 m Slab bending and unbending multi-point bending and unbending Number of segments 12 Height of casting floor approx. 13.4 m above ground floor elevation Maximum production speeds - Low carbon with 200 mm slab thick. 1.60 m/min - Low carbon with 250 mm slab thick. 1.20 m/min Maximum machine speed 2.5 m/min Secondary cooling system spray water, multi nozzle system

Main Raw Material Pellet (2.4 Mt/y) Pellet SPECIFICATION Fetotal FeO TiO2 Na2O K2O P S Cu MgO SiO 2 >66.7 <0.7 5 <0.3 <0.2 <0.1 <0.05 % <0.008 <0.0 1 >0. 6 B4 <2 >0. 5 Grain size 9-16 mm

Semi Products DRI (1.65 Mt/y) Fetotal Met Total Gan DRI SPECIFICATION Al2O3 P C S MgO SiO2 B4 Grain size >90 >92 <5 <1.37 <0.09 1.8-2.6 <0.01 >1 <2.5 >0. 6 5-18 mm Lime (90000 t/y) Oxygen (7500 m3/hr)

Final Product Slab(1.5 Mt/y) Thickness 200-250 mm Width 900-2000 mm Length 6000-12000 mm Max. weight of slabs 46 tons

Low carbon steel Analysis Group/grade acronym %C %Mn %S %Mn / S %P + S Others Low Carbon LC 0.03-0.06 0.5 0.012 40 0.040 Other elements -Si max 0.50% - Sn max 0.010% - Pb max 0.010% - Sb max 0.010% - P max 0.025% As max 0.010% - H max 0.0006% - N max 0.009% - Al max 0.07% - Cu max 0.200%

Structural steel Analysis Group/grade acronym %C %Mn %S %Mn / S %P + S Others Peritectics ST P 0.07-0.14 0.8 0.010 40 0.040 Medium Carbon ST MC 0.15-0.24 1.6 0.010 50 0.040 High Carbon ST HC 0.25-0.49 1.2 0.010 50 0.025 Other elements -Si max 0.50% - Sn max 0.010% - Pb max 0.010% - Sb max 0.010% - P max 0.025% As max 0.010% - H max 0.0006% - N max 0.009% - Al max 0.07% - Cu max 0.200%

Micro-alloy steel Analysis Group/grade acronym %C %Mn %S %Mn / S %P + S Others HSLA Low Carbon MA LC 0.03-0.06 1.4 0.010 50 0.035 Nb,V,Ti,B Other elements -Si max 0.50% - Sn max 0.010% - Pb max 0.010% - Sb max 0.010% - P max 0.025% As max 0.010% - H max 0.0006% - N max 0.009% - Al max 0.07% - Cu max 0.200%

Occupation Current: Direct 1500 Peoples Indirect 6000 Peoples After Expansion Direct 3000 Peoples Indirect 12000 Peoples

ton 3,500,000 DRI Production Chart From 01-Mar-2011 to 30-Nov-2013 3,159,636 3,000,000 2,920,749 3,052,631 2,670,511 2,803,791 2,500,000 2,419,768 2,557,046 2,000,000 1,500,000 1,000,000 500,000 0 2,161,816 2,286,800 1,968,311 2,038,536 1,779,760 1,897,173 1,582,854 1,693,275 1,425,422 1,500,328 1,229,708 1,336,155 1,020,691 1,122,502 811,488 921,551 598,707 700,114 401,276 487,243 282,294 170,713 331,275 48,314 228,059 103,056 Cumulative Actual

ton Slab Production Chart From 01-Mar-2011 to 30-Nov-2013 1,600,000 1,479,959 1,400,000 1,387,290 1,200,000 1,184,694 1,285,605 1,000,000 1,011,051 1,093,509 841,493 927,895 800,000 684,846 767,663 600,000 561,970 626,731 400,000 200,000 0 0 0 92 272 642 4,321 728 17,557 59,811 35,073 124,272 214,368 97,201 171,828 292,582 253,852 342,071 315,079 443,651 391,770 504,110 Cumulative Actual

ton Slab Production Chart From 01-May-2011 to 30-Nov-2013 120,000 100,000 80,000 82,817 73,830 91,185 86,403 83,156 82,458 101,685 100,911 92,647 60,000 64,761 60,459 57,860 58,115 51,881 47,556 49,699 40,000 37,390 42,540 39,484 38,730 20,000 17,516 13,236 24,738 27,071 26,992 22,497 0 3,593 92 180 370 86

ton 160,000 Lime Production Chart From 01-Mar-2011 to 30-Nov-2013 140,000 140,762 120,000 120,627 131,087 100,000 102,706 111,628 87,506 94,993 80,000 72,940 80,175 60,000 58,827 65,453 40,000 20,000 19,848 37,957 37,957 37,957 35,161 37,957 37,957 30,339 37,957 31,197 24,788 41,838 51,501 37,957 Cumulative Actual 9,769 15,403 0 0 0 0 0 2,357 6,188

HOSCO Expansion Project First phase: 1. New billet & bloom machine 2.Increase capacity up to 2.5 Mt/y by 1 new EAF & 2 new LF 3.New DRI Plant (1.8 Mt/y) Second phase: Increase capacity to 3 Mt/y by : 1.Upgrading existing EAFs 2. Adding 13 th segment to existing CCM Third phase: Hot rolling (1Mt/y)

Investment Opportunities Lime calcinating plant Pelletizing plant Direct reduction plant Steel making plant Continuous casting plant Hot rolling plant Hot rolling finishing line Pickling line Cold rolling mill Tinning line Galvanizing line Color coating line Auxiliary unit (Electric power and fluids distribution unit, Water treatment and distribution, Oxygen plant, Power plant, Central Workshop)