东北特殊钢集团有限责任公司 DONGBEI SPECAL STEEL GROUP CO., LTD

1. 东北特殊钢集团有限责任公司 DONGBEI SPECAL STEEL GROUP CO., LTD 东北特钢集团欢迎您! WELCOME TO DONGBEISPECIALSTEEL GROUP!

2. 东北特钢集团 BRIEF INTRODUCTION TO DONGBEI SPECIAL STEEL GROUP CO.,LTD First part : Establishment and development of Dongbei Special Steel Group Second part:State-of-the –Art Facilities Third part:Integrated series of products Fourth part:Key products and application field Fifth part:products R&D system Sixth part:Dongbei Special Steel Group’s developing strategy

3. 东北特钢集团 First part Establishment and development of Dongbei Special Steel Group

4. 东北特钢集团 Establishment and development of Dongbei Special Steel Group • Dongbei Special Steel Group is the consolidation of the state-owned special steel enterprises in China including Dalian Iron& Steel Group, Fushun Special Steel Group and Beiman Special Steel Group • Dalian Iron& Steel Group established in 1905, which was the producer for precision alloy , the key base for high speed tool steel and special steel wire in China. • Fushun Special Steel Group set up in 1937, which was the first banner in special steel field in China. The stainless steel , ultra-high strength steel , high speed tool steel and super alloy produced by ourselves are firstly studied and manufactured successfully by it. • Beiman Special Steel Group was founded and started up in 1957,and is the sole special steel constructive item among 156 key items in the period of “First Five Year Plan ”, it is the pillar supplying base in developing national defence and military affairs.

5. 东北特钢集团 Establishment and development of Dongbei Special Steel Group • Early in year of 2002，Liaoning provincial party committee and government had made a decision that the chairman and general manager ZhaoMingyuan from Dalian Iron& Steel Group would hold the position of the chairman and general manager concurrently in Fushun Special Steel Group, and conducted deep reforms and the passive situations had been changed and meanwhile Liaoning Special Steel Group had been reconstructed. • On 16th ,January 2003，Liaoning Special Steel Group was merged on the basis of Dalian Iron& Steel Group and Fushun Special Steel Group. • With Liaoning Special Steel Group reconstructed, the complementary advantages emerged quickly. In the year 2003, the main economic and technical norms for Dalian and Fushun realized the optimum level in history, in the year 2002, the balance sheet between the two enterprises after merging was compared, the total gross output of industry increased by 49.53%，the output of steel increased by 32.43%，the output of quality special steel products increased by 41.29%.

6. 东北特钢集团 Dongbei Special Steel Group’s establishment and development • Many years of backward management, and the accumulated effects, On 23th, September 2003, Beiman Special Steel Group declared that they would stop production. • Beiman Special Steel Group was one of the four economic pillar enterprises in Helongjiang, whatever its status and its political standing, it had influence on its locality. When the enterprise stopped production it had a serious effect on political stablility and economic development in Heilongjiang. • On 26th,October 2003, under the support of Liaoning and Heilongjiang provincial party committee and government, Liaoning Special Steel Group started to trust Beiman Special Steel Group, and reconstructed Dongbei Special Steel Group interprovincially.

7. 东北特钢集团 Dongbei Special Steel Group’s establishment and development • On 18th, May 2004，Dongbei Special Steel Group was registered successfully. • On 23th , September 2004, Dongbei Special Steel Group went into operation officially. Its head office is in the beautiful coastal city of Dalian. • Dongbei Special Steel Group has included 6 subsidiaries with total assets, 11 holding companies and 1 company with join stock. • Three production bases: • Dalian Base：Former Dalian Iron & Steel Group（Dalian ,Liaoning）. • Fushun Base:Former Fushun Special Steel (Group) Co. ltd.（Fushun, Liaoning）. • Beiman Base:Former Beiman Special Steel Group(Qiqihaer,Heilongjiang）.

8. 东北特钢集团 The standing in the field • Dongbei Special Steel Group has a century of history in its development, which has been called “the cradle of China’ s special steel”. During building the system for independence and self- relianT national industry, developing national Hi-Tech undertakings and national defence industry in People’s Republic of China, Dongbei Special Steel Group has played an irreplaceable role, Many innovations are created by it in the new history of China. • First heat of stainless steel • First heat of high speed tool steel • First heat of heat resisting super alloy • First heat of precision alloy • First heavy cannon • First heavy tank • First atomic submarine • First fighter • “two missile and one satellite” • “Shenzhou series” manned spaceflight • Long-range carrier rocket • Intercontinental missile under water launching

9. 东北特钢集团 The standing in the field The state leader such as Mao Zedong, Jiang Zemin, had inscribed a few words to Dongbei Special Steel Group, furthermore Zhou Enlai, Deng Xiaoping, Jiang Zemin, Hu Jintao Zhu Rongji have visited our Dongbei Special Steel Group, and given sufficient confirmation to the development of industry. Without industry, there would be no strong national defence, no people’s welfare, no powerful nation. Mao Zedong the key made by China’first heat of stainless steel stored up in the Chinese History Museum.

10. 东北特钢集团 Dongbei Special Steel Group • Dongbei Special Steel Group centralized the platform for operational management, high degree of unity is focused on ten aspects. • The strategic target for development • layout for technological innovation Plan • Production operational plan • Managerial system and operational mechanism • Marketing • Material outsourcing and supply • Financial and capital management • Human resources development and employment • Technological development and information resources • Business culture

11. 东北特钢集团 Advantages of territory

12. 东北特钢集团 Dongbei Special Steel Group • Registered capital：3.46 billion. • Total assets：17.6 billion. • Employee number：19862. • Production capacity： • 3.28 million tons of crude steel. • 2.88million tons of quality special steel products

13. 东北特钢集团 Dongbei Special Steel Group （ the index in 2005 ） • the output of steel：1.75 million tons • the output of quality special steel products：1.50million tons • Business incoming：12.9 billion RMB； • Export earnings：0.15 billion US dollars. among： • stainless steel 12,0000 tons； • tool and mould steel 11,0000tons； • automobile steel 40,0000tons ； • bearing steel 51,0000tons

14. 东北特钢集团 Second part State-of-the –art facilities

15. 东北特钢集团 Ten specialized production line • “the min mill” production line：90tEAF+90tLF/VD+CCM+continuous rolling line for alloy steel bar，the production capacity per year is 50,0000 tons (Beiman：focusing on bearing steel) • “the min mill” production line ：60tEAF+60tLF/VD+CCM+ continuous rolling line for alloy steel bar ， the production capacity per year is 40,0000 tons (Fushun ：focusing on automobile steel) • Special steel wire line：to produce stainless steel , bearing steel (Dalian) . • Die flat steel line：to produce quality die flat steel with fine accuracy (Fushun /Dalian) • Bright steel and cold drawn steel line:alloy steel deeply-processed (Dalian) • Special metallurgical line: heat-resisting superalloy, titanium alloy (Fushun) • Precision alloy line (Dalian). • Roller and cannon barrel heat treatment line(Beiman)。 • Special seamless steel pipe line：pipe diameterΦ140㎜ (Beiman)。 • Alloy steel wire line(Dalian)

16. 东北特钢集团 The six bases for special steel fine product • Automobile steel base（Fushun）. • Bearing steel base（Beiman）. • Tool and mould steel base（Fushun、Beiman）. • Special alloy base（Fushun）. • Stainless steel , bearing steel, alloy spring steel heavy wire rod base（Dalian）. • Deeply-processed special steel base（bright steel, cold roll , special steel wire）（Dalian）.

17. 东北特钢集团 State-of-the –art facilities————Electric arc furnace • 1×90t/CONCAST • 1×60t/FOCUS • 1×50t/KRUPP • 1×45t/KRUPP • 2×40t • 8×25t

18. 东北特钢集团 UHP EAF ：90t / CONCAST(Beiman ）

19. 东北特钢集团 UHP EAF：60t /FOCUS；50t /KRUPP（ Fushun ）

20. 东北特钢集团 State-of-the –art facilities——refining furnace • 90tLF/VD CONCAST • 2×60tLF/VD DANIELI • 30t/60tVOD/VHD LEVSOLD-HERAEUS • 25tAOD；25tVOD

21. 东北特钢集团 VOD/VHD:30t/60t/LEVSOLD-HERAEUS（ Fushun ）

22. 东北特钢集团 AOD:25t（ Dalian ）

23. 东北特钢集团 State-of-the –art facilities——concaster • R12m×4strain/CONCAST 180×180、240×240mm • R12m×4strain /DNNIELI 200×200、240×240、 280×320、Ф450mm • R8m×2strain 150×150、Ф180mm

24. 东北特钢集团 concaster:low alloy steel/four units with four strands / CONCAST （Beiman）

25. concaster:stainless steel/two units with two strands（Dalian） 东北特钢集团

26. 东北特钢集团 State-of-the –art facilities——special remelting • VIM 12t、3/6t、2.5t • VAR 12t、7t、1t • ESR 10t×1 ； 15t×1（26,5t）； 5t×11； 3t×6； 2t×4； 1t×7。