DANIELI MINIMILLSA WINNING CONCEPTSINCE 1964

Over the past 50 years the minimillroute has proven to be one of the mostcompetitive ways to produce steel,starting with a ratedcapacities of 60-150,000 tpy and now at rates of up to 3 Mtpy and more.

MIDA® MIcromill DAnielithe breakthrough innovation in rebars production

COST ADVANTAGES

VS COMPETING MILLS

> LOWER LABOR COST.> LOWER NATURAL

GAS COST.> HIGHER YIELD DUE

TO CONTINUOUS /CONTINUOUS PROCESS.

> LOWER COST OF ALLOYS DUETO USE OF QUENCHINGSYSTEM.

> LOWER COST OF INVENTORY.

The first Micromill plant startedoperation at Commercial Metals Co.(CMC) Arizona, USA, in Autumn2009. The Micromill is based on the ECR® Endless Casting Rollingprocess. Among its advancedprocesses and components, theMIDA plant features uniqueinnovative characteristics, such as:> The Direct Casting & Rollingprocess (ECR), involving the directconnection of the continuous castingstrand to the first rolling stand, withthe endlessly-cast billet of indefinitelength through an induction furnacefor temperature equalization.The traditional reheating furnaceand all associated facilities aretherefore no longer necessary. > The Direct Rolling & Bundlingsystem (DRB), the revolutionaryinnovation that enables bar cuttingto commercial length directly atdelivery side of the finishing mill andright before the bundle forming andtying station, making the traditionallong-type cooling beds and cold cut-to-length services no longernecessary. This low-cost mill conceptfinds ideal application for greenfieldsites, but also for existing mills withexcess liquid steel capacity.

MIDA main highlights:> Market-oriented plant, to coverregional or local market demand;> Product range focused on asingle-type product;> Typical capacity of 250,000-350,000 tpy;> Typical finished product range: 8 to 36-mm-dia straight or spooledrebars (equivalent round and squarebars), with production campaignsdedicated to a large amount of asingle product, resulting inminimized changes.> Ultra-compact arrangement:covered area approx 11,000-mq(less than half the space required by a traditional minimill ofcorrespondent capacity)> Minimized investment> Reduced manning> Energy saving> Environmental friendly> Higher yields in melting and rolling> Reduced storage space whencompared to traditional minimills.> Superb quality of the finishedproduct, either in bundles or coils(thanks of the DRB or SPO systems)> Shorter construction time and fastramp-up time > Faster return of investment.

305 m

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1 Scrap yard2 Fume dedusting plant3 Electric Arc Furnace 4 Ladle furnace5 Meltshop maintenance area6 Continuous casting plant7 Induction furnace

8 16-stand rolling mill9 QTB line10 DRB-Direct Rolling & Bundling

system11 Finished product collecting

services12 Rolling mill maintenance area

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Danieli Minimills Fully integrated services

Danieli’s experience in minimills,EAF-based steelmaking and rollingfacilities, dates back to the 1960’s.The concept was -and still is-successful, thanks to its flexibility,lean organization and lowtransportation costs relating tonearby sourcing for raw materialsand distribution of the finished steelproducts.Around 80% of the minimillsoperating world-wide today havebeen supplied by Danieli, or operatewith some Danieli equipment.In 2006 Danieli started supplyingthe first integrated minimills: DRI,EAF, CCM and rolling plants, allconnected through a continuousprocess by a compact layout -to beapplied where scrap is not availableand/or gas is available atcompetitive costs.

In addition to innovative productionprocesses and first-class equipmentDanieli provides customers with fullyintegrated services which includeturnkey plants, auxiliary plants,process control and basicautomation, and continuous support.

Turnkey plants (LSTK)Danieli has thorough capabilities toprovide Customers with plantsaccording to the EPC (Engineering,Procurement and Construction)formula for overall turnkeyresponsibility. Design, engineering,manufacturing, construction, startup,and commissioning activities areprovided by our own divisions andcompanies that operate with ownlogistics, equipment, and tools,worldwide.

Process control and basicautomationDanieli Automation assures theperfect integration of the differentprocess units for a totally integrated,

efficient production plant. Theautomation philosophy is built ondifferent levels (L1 to L4) for eachplant function, and physicallyintegrated by means of the mostmodern networking technologies.The automation systems are madeup of proven packages, optimized onthe specific process, and tailored tomeet specific customer needs.

Customer serviceDanieli Service provides interactiveservices to expedite solutions totechnical problems: training services;metallurgical and process know-howpackages; maintenancemanagement systems; remotesolutions for real-time support;original spare parts, equipmentrefurbishing, repairs and upgrades;on-site inspection and technicalassistance.Thanks to this organization, and tothe team-work established with theCustomer, quality results and on-timeinstallation are guaranteed.

Danieli milestones in minimill process

Danieli first minimillDanieli was pioneer in developing the minimill concept and installed its first minimill in Germany. 1964

Black boxDirect charging technology forspecial steel conticast blooms,coupled with a surface quenchingsystem to achieve operating flexibilityand product quality, and to minimizeenergy consumption, handling anddelivery time. 1990

ECR-Endless Casting RollingUninterrupted production from liquidsteel to finished long products,

including in-line heat treatments and inspection procedures leading to higher productivity, superiorproduct quality and material yield.2000

EWR-Endless Welding RollingUninterrupted production of straightbars, sections, and wire rod in bycontinuous on-line welding of billetsat the reheating furnace delivery side.2001

DRI-based integrated minimillDanieli started the construction of the first two integrated DRI-basedminimill complexes for long

and flat products, which is the mostcompetitive production route wheregas is available at low costs and/or scrap is not available. 2006

MIDA-Micromill DanieliThe new generation of Danielicontinuous casting-rolling, compact,micromills designed to serve a limitedmarket (local or regional) and to becompetitive even for small productioncapacities. 2009

Layout legend

1 Incoming oxide storagearea

2 Direct Reduction Plant 3 Product storage silos

for hot charge 4 Product storage open

yard5 Product storage silos

for cold charge 6 Meltshop plant 7 FastCast continuous

casting machine 8 Billet storage area 9 200 tph superflexible

medium section mill10 200 tph superflexible

bar and wire rod mill11 Rolling mill Water

Treatment Plant andcompressed air plant

12 Ferroalloy, lime andadditives storage

13 Electrical substation(plus electricalsubstation HV side)

14 Air separation plant15 DR plant and Meltshop

daily maintenanceworkshop, generalwarehouse and centralmaintenance workshop

16 Fume dedusting plant 17 Water Treatment Plant

(Meltshop)18 Water Treatment Plant

(DR plant)19 Future meltshop

expansion (plusFastCast for bloomsand beam blanks)

20 Future rolling mill for heavy sections

Danieli Leadership Highlights:

> Vast experience, gained in an unsurpassable numberof projects carried out successfully all over the world.

> Top conticasting technology for casting speed/productivity,castable sections, castable grades, product quality.

> Top rolling technology to produce profitably an extremelywide product mix in in a single mill.

> Capability to provide plants on LSTK basis, with overallturnkey responsibility for design, engineering, manufacturing,construction, startup and commissioning activities, worldwide.

Direct reduction (up to 2 Mtpy permodule)Reference best performance: 250tph of highly-metallized andpassivated product with controlledcarbon content (from 1.5% to 4%).

Cash-cost reduction in EAFsteelmakingReference best performance: 42heats/day, energy consumption 350kWh/t, oxygen consumption 38 Nm3/t.

Twin-cathode DC FastArc™ EAF(up to 420 t)fed with 100% hot and cold DRI Reference best performance: activepower > 160 MW, T-T-T time 45 min,energy consumption < 450 kWh/t,oxygen consumption < 40 Nm3/t.

Secondary metallurgy Reference best performance: heatsizes up to 350 t; 90% S removal;50% N removal; H content less 1 ppm.

ECR® Endless Casting RollingsystemReference best performance:average cash-cost savings of 40Euro/t in specialty steels, and 20Euro/t in commercial steelproduction.

EWR® Endless Welding RollingprocessReference best performance:average production cost save of3.5-4.0 Euro/t.

FastCast™ billet, bloom, andbeam blank castersReference best performance: up to 90 tph per strand.

PSP® Profile Sizing ProcessprocessReference best performance:production of H-beams up to1,000 mm (flange height of up to 400 mm). Product size changesin just 20 minutes thanks to theSCC-Stand Core Concept stand.

Spooled bar-in-coilReference best performance:production costs savings of up to 18 Euro/t. Product range is 8 to 52-mm-dia plain bars.Operating speed is up to 35 mps.Up to 5-t ultra-compact coils.

High-productivity, small-sizestraight bar production linesReference best performance: over 120 tph of 10-mm-diabar/rebar production. Speeds of up to 50 mps onto cooling bed.

Ultra-high speed wire rod linesReference best performance: over 125-mps regular productionspeed of down to 4.5-mm-dia (and up to 25 mm) special andcommercial grades, with strict sizetolerances, in up to 3-t coils.

MINIDAMINImill DAnieli

Layout of a typical multi-product, super-flexible, DRI-based minimill.

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DANIELIYEAR 2010