ArcelorMittal Tubular Products Jubail Project (“AMTPJ”) 2nd Sept 2013 0 ArcelorMittal Jubail Project overview capability highlights • Constructing a 600,000 t/yr Seamless Tube Mill in Saudi Arabia to supply the energy tubes market of the Middle East & North Africa from a local source: – Product: OCTG (Oil Country Tubular Goods) & Line Pipe for Oil and Gas – Manufacturing Size range from 4 1/2” to 16” – Finishing Size range 2 3/8” to 16” (Green pipe sourced from inter-company units) – Approximate split: 60/40: OCTG / Line Pipe – Heat treatment capability at 330 kt/yr • Joint venture with Al-Tanmiah Company for Industrial and Commercial Investment of Riyadh: Jubail Confidential Information AMTPJ – Health & Safety Performance Health and Safety – June 2013 WEEK No :2 10th to 16th Aug AMJ IBSF NSH SAS IICS GTS AAF PIC O AQY KTZ EBTI Total to week Accident 0 0 0 0 0 0 0 0 0 0 0 0 Incident 0 0 0 0 0 0 0 0 0 0 0 0 Near Miss 1 0 0 0 0 0 0 0 0 0 0 1 W*letter 0 0 7 1 0 0 0 1 0 0 0 9 T** letter 0 0 0 0 0 0 0 0 0 0 0 0 *W : Warning letter ** T: Termination letter WEEK No : 2 AMJ Man hour 23892 IBSF 407 NSH 60005 SAS 1370 IICS 0 GTS 660 AAF 0 PICO 2808 AQY 0 KTZ 5606 Frequency Rate 0.14 Severity Rate * 0.0003 Man hour for the week (total) 94748 Man hour worked to Date 21 822 822 LTI Free Hour From Last LTI 7 949 849 EBTI 0 Safety Concern: - Housekeeping - Repeated none compliance to AMJ Safety requirements Mitigation: - AMJ Site Management to assist in enforcing safety requirements Safety focus for the week : STORAGE OF FLAMMABLE LIQUIDS SUBSTANCE Project Overview Plant Layout and Equipment Capacities 3 ArcelorMittal Jubail Built with state-of-the-art technology Hot mill: PQF® (premium quality finishing) SMS Meer (Germany) Heat treating: SMS Elotherm (Germany) and Tenova LOI Italiampianti (Italy) Furnace: Tenova LOI Italiampianti (Italy) Electrical systems: ABB (Switzerland) Cutting: Linsinger (Austria) Straightening & hydrotesting: Bronx (USA) Non destructive testing: Tuboscope (USA) 12-stand sizing mill Threading: PMC–Colinet (Belgium and USA) 4 (9) Operational Readiness – Our Business Pillars Launch Priority Priority 1 Q1 ‘13 • Health & Safety • People • Product Quality • Supply Chain Priority 2 Q2/3 ‘13 Priority 3 Q3/4 ‘13 • Performance Management • Organizational Structure • Marketing & Sales • Systems • Government Relations • Professional Maintenance • Autonomous Maintenance • Environment & CSR • Cost Deployment • Projects Product: Specification and Grades Seamless OCTG Casing & Tubing Grades: H40, J55, K55, M65, L80, C95, N80-1, N80-Q, C90, T95, P110, Q125 High collapse grades also available. End finishes include: P-plain end, S-short round thread, L-long round thread, B-buttress thread, H-Hunting Energy Services premium connection Seamless Line Pipe Grades: 6 API5L B, X42, X46, X52, X56, X60, X65, X70 EN 10208-2 L245NB, L290NB, L360NB, L360QB, L415QB, L450QB ASTM A53* A, B A106* A, B, C ASTM A333* 1, 3, 6 * Standard pipe; high and low temperature services ArcelorMittal – Global R&D ArcelorMittal R&D… • Around 1,300 full time researchers • Annual R&D expenditure of $300 million • Number one R&D in the industry • Working on all development axes – Research into products & steel solutions – Process research – Technical assistance to the plants • Worldwide network of 11 research centres, further supported by a network of scientific and academic partners worldwide … strongly supporting specialties • R&D spending focused on 7 areas: – Automotive, Packaging, Construction, Energy, General Industry, Long products and Special Plates R&D Key challenges in accordance with the Group strategy • Product: Differentiated product offer • Geography: Support the transfer of technology between plants • Value chain: Transverse projects optimising the product value along the complete value chain from mining to finished products Research & development enables to realize our ambitions in technological innovation and sustainability R&D Centre – Gent, Belgium Unique facilities in processing, characterization and testing of metal alloys Unique facilities in processing and characterization of metal alloys • Fully equipped chemical characterisation laboratory • Extensive electron microscope facilities • Complete coating laboratory including novel curing techniques and corrosion laboratory • All major welding and cutting techniques available ((hybrid) laser, SAW, MIG/MAG/TIG) • Forming and rapid prototyping capabilities • Complete facilities for electromagnetic characterisation • Large experience in Finite Element Modeling Completely integrated metallurgical processing center • Wide range of casting possibilities • 5 rolling stand of which 2 continuous • Multi-purpose dynamic annealing line with transverse flux inductor • Complete mechanical testing facilities • Advanced characterisation equipment like dilatometry, torsion and easy access to high speed-compression • Complete sampling preparation facilities including waterjet cutting • Unique reactive continuous annealing simulator • Fully equipped hydrogen lab APPENDIX – A Picture paints a thousand words 9 AM Jubail – Overview Building AM Jubail – Overview Billet Preparation Area • Construction completed • Equipment Commissioning ongoing • First billet cut on 9 May 2013 AM Jubail – Overview Rotary Heart Furnace • 200t/hr Capacity • 48m diameter – 5.5m max billet length • Construction completed • Under Commissioning AM Jubail – Overview Cone Type Piercer • Construction walkthrough • Under Commissioning AM Jubail – Overview PQF – Premium Quality Finishing Mill • Construction walkthrough • Under Pre-Commissioning AM Jubail – Overview Induction Furnace • Construction completed - walkthrough AM Jubail – Overview 12 Stand Sizing Mill • Under Construction AM Jubail – Overview Cooling Bed • Construction completed • Under Commissioning AM Jubail – Overview Hydraulic Systems • Construction completed • Under Pre-Commissioning AM Jubail – Overview Layer Saw Line • Most Construction completed • Under Pre-Commissioning AM Jubail – Overview Straightening • Most Construction completed • Under Pre-Commissioning AM Jubail – Overview Inspection and Prove-up Area • Most Construction completed • Under Pre-Commissioning AM Jubail – Overview Heat Treatment 1 - Induction Furnace • Construction ongoing • Under Pre-Commissioning Induction Quench AM Jubail – Overview Heat Treatment 2 – Gas fired Furnace • Construction ongoing • Under Pre-Commissioning Tempering Furnace Hardening Furnace AM Jubail – Overview OCTG Line • Construction completed • Under Pre-Commissioning Threading Machine MPI End Inspection Coupling Torque AM Jubail – Overview Hydrostatic Machine • Construction completed • Under Pre-Commissioning AM Jubail – Overview Coating System • Construction completed • Under Pre-Commissioning Coating System AM Jubail – Overview Bundling for OCTG 2 • Areas still under Construction • Under Pre-Commissioning Bundling System AM Jubail – Overview Final Material Storage • Area ready AM Jubail – Overview LPG / SNG Storage • LPG Storage ready • Access road completed • Awaiting final approval before gas delivery AM Jubail – Overview Water Treatment Stock • Construction completed • Under Commissioning Water Treatment Filter Sea Water Cooling Tower AM Jubail – Overview 115kV Substation • Completed