R E I M E R P ALITY G N I G U Q ATIN CTUR O C NUFAZED I A M LVAN TIVE D GATOMO EALE ART N U E N A LVA -TH F A G TE-O A T S Z-LINE U. S. Steel Canada’s premier zinc-coating line U. S. Steel Canada’s Hamilton Works is home to one of North America’s premier zinc-coating lines. The Z-Line was formerly a joint venture with Mitsubishi Corporation, but in 2010, U. S. Steel Canada bought out their minority partner and assumed 100-percent ownership of the facility. INTR OD U C T I ON Designed to produce world class galvanized and galvannealed sheet steel, the Z-Line has allowed U. S. Steel Canada to become a leader in many key markets, including the steel intensive automotive sector. U. S. Steel Canada’s steelmaking operations consist of Hamilton Works and Lake Erie Works, two fully integrated steelmaking facilities which together have the capability of producing approximately 4.9 million tons of steel annually and employ more than 2,200 people. Hamilton Works is located on the shore of Lake Ontario in Hamilton, Ontario. Lake Erie Works is about an hour’s drive south, and is located in Nanticoke, Ontario, on the shores of Lake Erie. U. S. Steel Canada produces high quality steel that is used primarily in the North American automotive, construction, infrastructure, appliance, manufacturing and pipe and tube industries. U. S. Steel Canada is a wholly owned subsidiary of United States Steel Corporation – one of the largest producers of flat-rolled sheet steel in the world. With a comprehensive portfolio of steel products, enhanced production capabilities, and a strong commitment to quality, service and innovation, U. S. Steel is a leading manufacturer of value-added steel products and primarily serves the automotive, appliance, container, construction and energy markets in North America and Central Europe. U. S. Steel has an annual raw steelmaking capability of approximately 30 million net tons. Today, U. S. Steel remains proud of its past, but is focused on its future. As a leader in the increasingly competitive global steel industry, United States Steel Corporation is dedicated to delivering high-quality products to our customers and building value for all of our stakeholders. As a major supplier of steel products to the North American automotive market, U. S. Steel Canada’s long standing commitment to quality demonstrates a desire to meet the ever-increasing demands of that industry. Our 1830 mm (72-inch) Z-Line compliments our state-of-the-art steelmaking and rolling facilities located at Hamilton Works and Lake Erie Works in Nanticoke, Ontario. Over the years, we have continued to invest in and upgrade our facilities in order to ensure the supply of high quality, cold rolled steel to the Z-Line facility. Some of the improvements we have made over the years include: Improved formability due to our RH-OB vacuum degassing unit at Lake Erie Works. Enhancements to the 80-inch Hot Strip Mill at Lake Erie Works, such as a sixth finishing stand and hydraulic automatic gauge control allowing for increased uniformity of hot-band thickness. Investments in the Cold Mill at the Hamilton Works Tandem Mill included automatic work roll changes, a new entry end, hydraulic capsules on all mill stands, positive and negative work roll bending, automatic closed loop gauge and shape control, and a new roll out automotive inspection station. U. S. Steel Canada’s goal is to achieve superior product value and deliver world-class customer service. We achieve these goals while operating our facilities safely and efficiently. Our objective is being met through continual improvements to workmanship and the implementation of global best practices at each stage of the manufacturing process. Formal quality assurance programs have been established and are monitored at every plant and at each phase of the operation. All of our employees are trained and directed to maximize quality awareness and process control. U. S. Steel Canada’s world class supplier position is bolstered by its own contributions to pre-development programs with automotive customers. Additionally, as a wholly owned subsidiary of United States Steel Corporation, we have the benefit of access to best practices from around the globe. Utilizing these collective marketing, metallurgical, engineering and research resources – and our superior steelmaking capabilities – U. S. Steel Canada has developed several programs which continually improve quality, cost and performance. These improvements are the result of steel grade development, product design and manufacture/ process optimization. QU A L I TY A ND TH E A U T OMOT I V E M A R K ET T H E FACILITY Exhibit 1 : Major Characteristics of the Z-Line Cost $180 Million CDN Volume 470,000 tons per year Line Length 275 m (900’) Line Height 55 m (180’) Anticipated Products Galvanized, Galvanneal, Automotive Exposed Width Minimum : 1015 mm (40”) Maximum : 1830 mm (72”) Thickness Minimum : 0.58 mm (0.023”) Maximum : 2.1 mm (0.083”) Maximum Coil Weight 33,636 kg (74,000 lbs) Inside Diameter 610 mm (24”) Outside Diameter 1880 mm (74”) The 18-storey 275 m (900 feet) Z-Line is located at U. S. Steel Canada’s Hamilton Works and has an annual capacity of 470,000 tons. The Z-Line produces hot-dipped galvanized and galvannealed sheet steel with excellent surface quality and superb corrosion resistance and formability, particularly for the stamping and welding processes critical to automotive manufacturing. The Z-Line incorporates the most advanced coating technology, with many state-of-the-art feature including a High Current Density Cleaner with Votobox Magnetic Separator, the world’s largest induction heated ceramic-lined zinc pot with 454 tonne (500 ton) capacity, Zinc-Iron Alloy Coating Weight gauge, Armco’s patented nitrogen wiping/shrouding coating system, and Cognex surface inspection system. Exhibit 2 : Z-Line Features and Benefits 1 2 3 4 5 6 NO. 1 AND NO. 2 PAYOFF REELS THICKNESS GAUGES DOUBLE CUT SHEAR PREP-LAP DC WELDER ENTRY LOOPER SYSTEM HIGH CURRENT DENSITY CLEANER FEATURE: High density alkali cleaning to remove residual rolling oils and iron fines. BENEFIT: Superior surface cleanliness for optimum coating adhesion, optimum galvanneal appearance for auto-exposed applications and optimum paintability for auto exposed cold rolled applications. 8 ZINC POT / NITROGEN WIPING FEATURE: World’s largest induction heated/ceramic-lined pot with a 454-tonne (500-ton) capacity. BENEFIT: Superior stability of both chemistry and temperature. FEATURE: Ultra low lead both chemistry BENEFIT: Optimum auto-exposed surface appearance. FEATURE: Large diameter sink roll and twin stabilizer rolls. BENEFIT: Excellent coating weight distribution across the sheet and on both sides of the sheet - expectation of ±3 σ = ±10g/m2 total both sides. FEATURE: Patented Armco nitrogen wiping and shrouding technology. BENEFIT: Smooth bright finish with minimum dross and coating sag. 7 ANNEALING FURNACE 9 10 POT BY-PASS GALVANNEAL FURNACE FEATURE: Four independently monitored combustion zones using proven SELAS gas-fired high efficiency tube burners. BENEFIT: Precise and uniform temperature control. FEATURE: State-of-the-art induction heating technology for precise temperature control, minimum heating/cooling response time. BENEFIT: Provides optimum coating composition and properties. FEATURE: Furnace elongation control system. BENEFIT: Ensures superior steel width control permitting a stable low-tension operation necessary for processing extra deep drawing quality (EDDQ) fully stabilized grades. FEATURE: Vertical design. BENEFIT: Minimizes strip contact and provides more efficient heating of the strip. FEATURE: Hot bridles. BENEFIT: Minimizes shape distortion and surface marring. FEATURE: World’s largest furnace rolls. BENEFIT: Enhanced mechanical properties. FEATURE: SELAS gas cooling technology. BENEFIT: Cooling rates up to 70°C/sec. for bake hardenable and high-strength steel. FEATURE: Electrically heated over-aging zones. BENEFIT: Prevents deterioration in mechanical properties for non-stabilized plain carbon steels. 11 AFTER-POT COOLING TOWER 12 QUENCH TANK 13DRYER 14 ZINC-IRON ALLOY COATING WEIGHT GAUGE FEATURE: On-line twin-head x-ray fluorescent gauge scanning across the width of the strip. BENEFIT: Continuous readout of the top and bottom surface. Iron content and coating weight are displayed both numerically and graphically through the coil length to confirm coating uniformity. Computer data is maintained for on-going quality control. 15 TEMPER MILL FEATURE: Unique 4-high CLECIM design with tension bridle rolls before and after. BENEFIT: Precise control and uniform distribution of elongation (extensions up to 2%) to import consistent surface finish and mechanical properties. FEATURE: Work roll bending. BENEFIT: Optimum shape control. FEATURE: Variation in work roll diameter. BENEFIT: Wide range of extensions for specific products such as CQ and EDDQ. FEATURE: Wet rolling practice. BENEFIT: No surface contamination or zinc pickup. 16 TENSION LEVELLER FEATURE: CLECIM design with intermediate bridle rolls between temper mill and leveller. BENEFIT: Superior flatness, precise control of elongation independent of the temper mill (extensions up to 1.5%), in-line temper mill/tension leveller eliminate need for secondary processing and the potential for damage and added processing delays. 17 18 PASSIVATION TANKS AND DRYER DELIVERY LOOPER 19 INSPECTION STATION FEATURE: Horizontal/vertical and top/bottom visual surface inspection, fluorescent and unilux strobe lighting, and a COGNEX defect recognition system. BENEFIT: Electronic data logging of surface quality capability to identify surface imperfections via jet-ink marking on the coil. COGNEX inspection system provides enhanced defect recognition capability. 20 ELECTROSTATIC OILER BENEFIT: ECT unit can produce consistent two-sided precisely controlled films of either a rust preventative oil (Ferrocote 61AUS) or single phase prelube (Montgomery PL7105A). 21 22 FLYING SHEAR MAGNETIC WRAP BENEFIT: Provides tension to the outer wrap of the strip to ensure a tightly wound coil during recoiling on the exit reel. 23PACKAGING BENEFIT: All coils will be treated in a auto-exposed manner, handling will preclude damage during warehousing and shipment; ability to meet most manufacturers’ specifications for full bar coding capabilities. Exhibit 3 : Coating Types, Product Types, and Product Dimensional Ranges U. S. Steel Canada Hamilton currently produces Galvanneal and Galvanize Coatings to ASTM and the Automotive Standards GALVANNEAL ASTM - A653 AUTOMOTIVE GALVANIZE Inch-pound Metric Inch-pound A25 - A60 ZF075 - ZF180 G30 - G115 Metric Z120 - Z350 30A30A thru 60A60A 45G45G thru 115G115G Auto Exposed panel capability Differential coating capability Product Types: Low Carbon, Ultra Low Carbon, Structural and High Strength Low Alloy Steel and Bake Hard steels are available, as well as development in Dual Phase Steels STEEL CLASSIFICATION QUALITY COMPOSITION Extra Deep Drawing EDDS Ultra Low Carbon (stabilized-IFS) Deep Drawing DDS Ultra Low Carbon (stabilized-IFS) Drawing / Forming FSTYPE B Low Carbon/Manganese Commercial CSTYPE B Low Carbon/Manganese Structural 33 SSGRD33 Low Carbon/Manganese Structural 37 SSGRD37 Low Carbon/Manganese/Micro Alloy Structural 40 SSGRD40 Low Carbon/Manganese/Micro Alloy HSLA GRD 50 / GRD 350 HSLA50 High Strength Low Alloy HSLA GRD 60 / GRD 420 HSLA60 High Strength Low Alloy 210 Bake Hard BH210 Bake Hardenable ULC (stabilized-IFS) 270 Bake Hard BH270 Bake Hardenable Dual Phase 590T DP590 Dual Phase Product dimensional ranges - see width to thickness charts QUALITY GAUGE inches WIDTH inches GAUGE mm WIDTH mm EDDS/DDS .023 - .083 40 - 72 .58 - 2.1 1015 - 1828 FS/CS/SS .023 - .083 40 - 72 .58 - 2.1 1015 - 1828 HSLA .035 - .072 40- 65 .89 - 1.8 1015 - 1651 BH210 .028 - .080 40 - 62 .71 - 2.0 1015 - 1574 BH270 .030 - .060 40 - 60 .76 - 1.5 1015 - 1524 DP .035 - .072 40 - 65 .89 - 1.8 1015 - 1651 AV AI LA B I LI T Y Galvanized and Galvannealed products from the Z-Line are available in thickness 0.58 mm minimum to 2.1 mm maximum (0.023” to 0.083”) and can be ordered to nominal or minimum thickness. Available widths are from 1015 mm to 1830 mm (40” to 72”). Please inquire regarding widths under 1015 mm, and 20” inside diameter. As a result of the Hamilton Works Tandem Mill upgrade in 2000, incoming cold rolled substrate is produced to tight automotive gauge specifications. Galvanized and Galvannealed sheet steel products can be classified as either ultra low carbon (fully stabilized interstitial free), low carbon, and high strength low alloy. Please inquire regarding bake hardenable and dual phase steel. Within each of these classifications, several steel specifications are available. Exhibit 4 : Thickness/Width Availability by Grade Z-Line Hot-Dipped Galvanized and Galvannealed Sheet Hamilton Works U. S. Steel Canada 386 Wilcox Street Hamilton, Ontario L8N 3T1 Lake Erie Works U. S. Steel Canada General Delivery Nanticoke, Ontario N0A 1L0