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An Introduction to... © PT Krakatau Posco - 2017 Production Process & Product Excellencies Fildzah Fikrotuzzakiah SEAISI Conference – May ‘17

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An Introduction to...

© PT Krakatau Posco - 2017

Production Process & Product Excellencies

Fildzah Fikrotuzzakiah

SEAISI Conference – May ‘17

I. COMPANY PROFILE

No. 1 Steel Maker in Southeast Asia

2.6 Mil Ton/year prod. capacity (2016)

U$ 1.11 Billion of sales (2016)

11 Subsidiaries

Established in 1970

No. 4 Steel Maker in the World (2015)

42.0 Mil Ton/year prod. capacity (2015)

US $53.8 Bil. of Consolidated Sales (2016)

82 Subsidiaries

Established in 1968

Global 100 Most Sustainable Corporations in the World Economic Forum (WEF 2017)

Global Sustainable Management for 12 Consecutive Years in the Dow Jones Sustainability Indices (DJSI 2016)

World’s Most Competitive Cooperate for 6 Consecutive years by WSD (2015)

Integrated up & downstream Production FacilityInfrastructure supporting key:power plant service, port and water treatment

Green Industry award of 2014 from Ministry of Industryof Republic of Indonesia

© PT Krakatau Posco - 2017

Founding Company

“The First Integrated Steel Mill in South East Asia”

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Vision, Mission, and Values

MISSION

Contributing to Indonesian Economic Through Synergy in Providing Competitive Steel Products

VISION

To be the Most Competitive Integrated Steel Mill to Dedicate

Pride for Indonesia

CORE VALUES

Improvement

Execution

GrowingTogether

Preparing for better future

through Innovation, continuous learning, and lean thinking.

Safety condition will be improved continously

Act safe and fast to reach the target on time, accurate, and compliance

Build and maintain relationship with all stakeholders

respectly, mutual trust, and good

communication.Nurturing ownership with, collaboration,

and fairness

© PT Krakatau Posco - 20172/11

II. MANUFACTURING PROCESS

© PT Krakatau Posco - 2017

Coal

Iron Ore

Limestone

Coke Oven Plant

Sinter Plant

Raw Material Handling

Blast Furnace

Kanvara Reactor

Basic Oxygen Furnace

Ladle Furnace

Rheinstahl-Heraeus

Continuous Casting

Slab(width 1100-2300mm)

Multi Mover

IRON MAKING

STEEL MAKING

PLATE MILL

Rolling Process

Reheating Furnace

To Customer

Rolling Mill Cooling Bed

Shearing and Finishing Process

Rolling Process3/11

Cast IronPlateSlab

Our Products

© PT Krakatau Posco - 2017

Using the best steel industry technology with three million ton a year of capacity, PT KRAKATAU POSCO is ready to provide the best slab and plate product for Indonesia

4/11

© PT Krakatau Posco - 2017

Slab

● Available Specification

Through internal quality control starting from ironmaking process to continuous casting

process, KRAKATAU POSCO’s slab is produced in minimum impurities process which lead to slab

product with the best cleanliness.

Classification Specification Remark

ASTM A36, A131, A283, A516/M, A572 -

JIS G3101, G3106, G3131, G3132, G3141, G3113 -

Shipbuilding A/B/D/E, AH/DH/EH For Hull-Mild Steel, High/Higher Strength Steel

EN EN 10025 Structural Steel

SNI BjPS Steel for General Structure

API API 5L Steel Pipe for Pipeline Transportation System

● Very Low Impurities Slab with Spotless Surface

5/11

Why Choose KRAKATAU POSCO’s Slab?

③ Casting slab product with smooth surface and reliable internal quality by usingsoft-reduction technology

Soft-reduction : Preventing centered segregation with dynamic parameter to

optimize segregation monitoring

Grade 1 based on Mannesman Standard

*) Checked through Macro Etch and S-print test

② Tight control of impurities and solved gas to reduce inclusion and deliver moltensteel with excellent quality through integrated refining process

- 1st refining (KR-BOF) : remove main impurities (S, C, Mn, Si, P), add Fe-alloy

- 2nd refining (RH-LF) : 2nd adjustment for alloy addition, remove gas inside

molten steel and slag modification for catch inclusion

Excellent internal quality

① Tight control of iron ore extraction to produce high ratio of molten iron

- Balancing molten iron temperature (1,5000C) to minimize occurence of impurities

- Control ore basicity to make homogeneous slag

- Low cost production by maintain O/C (ore : coke ratio) at 5.0

© PT Krakatau Posco - 20176/11

© PT Krakatau Posco - 2017

Plate

O. Steel Plate for Shipbuilding

A/B/D Mild Strength for Hull (Mild Steel)

O. Steel Plate for Infrastucture ProductPT KRAKATAU POSCO provides the best structural steel as customer order

O. Steel Plate for Pipeline

O. Steel Plate for Pressure Vessel

United Kingdom United States France South Korea Indonesia Japan TaiwanNorway-German

AH/DH High/ Higher Strength Steel for Hull

- For Non-Sour Application with As Rolled Condition- For Non-Sour Application with TMCP Condition- For Offshore Application with TMCP Condition

- ASTM A285 Pressure Vessel Plates, Carbon Steel, Low and Intermediate Tensile Strength- ASTM A515 Pressure Vessel Plates, Carbon Steel, for Intermediate and Higher Temperature Service- ASTM A516 Pressure Vessel Plates, Carbon Steel, for Moderate and Lower Temperature Service

Italy

7/11

© PT Krakatau Posco - 2017

Why Choose KRAKATAU POSCO’s Plate?

● Plate can be produced within 3 weeks afterplacing order *for common order

● Secures world-class delivery assurancesame as POSCO does.

● Rolling process is precisely controlled as low as possible atthe minimum allowable temperature (i.e SS400 <9500C)

※ Advantages : - Ensure supreme formability without cracking

- Increase scale adhesion

- Maintain bright surface

● Rolled with precise levelling control to ensure residual stress-free products

- Temperature control during hot leveller process by deforming plate above transformation temperature(>7230C or eutectoid point)

1w 2w 3w

① Cleanliness ② Production Time

③ Formability & Machineablity

● Uses high quality slab with reliable internal

quality

※ Checked through Macro Etch and S-print test

● Plates are produced by using technology

transferred from POSCO that has advanced

quality control

Design wait (4d)

Production wait (8d)

Order Confirm (9d)

8/11

Cast Iron

© PT Krakatau Posco - 2017

Blast Furnace

Kanvara ReactorCasting Process

Basic

Oxygen

Furnace

Grade %C %Si %Mn %P %S Remarks

KP-DCU ≥3.50 0.50-1.20 ≤0.06 ≤0.03 ≤0.02 Ultra-high purity grade ※ Two available size :

KP-DCH ≥3.50 0.50-1.20 ≤0.15 ≤0.05 ≤0.03 High purity grade

KP-DCC ≥3.50 0.50-1.20 ≤0.25 ≤0.10 ≤0.05 Common grade

KP-FBI ≥4.00 2.00-2.30 ≤0.30 ≤0.15 ≤0.05 For domestic market

Available Specification :

KRAKATAU POSCO also provides High-purity cast iron as WP (world premium) product

Cast Iron Product

★ Consistent chemical content

★ Contain lower residual elements such as sulphur [S] and phosphorus [P]

★ Promotes optimal slag condition and improves process control

9/11

© PT Krakatau Posco - 2017

Europe

India

Brazil

Our Products have been delivered worldwide

Through continuous improvement to provide the best product based on customers need,

KRAKATAU POSCO has spread the market widely and will continue to give our best.

Mid. East

Slab

Plate

Pig Iron

Malaysia

Singapore

Vietnam

Thailand

South East Asia

S. Korea

10/11

III. KRAKATAU POSCO – PHASE II

© PT Krakatau Posco - 2017

1st Stage (3.0MTPA)

BF x 1(3,800m3)

BOF x 1(300T/Ch)

CC x 1(2strand 1M/C)

Plate1.5MTPA

Slab1.5MTPA

2nd Stage (6.0MTPA)

BF x 1(3,800m3)

BF x 1(3,800m3)

BOF x 1(300T/Ch)

BOF x 1(300T/Ch)

CC x 1(2strand 1M/C)

CC x 1(2strand 1M/C)

Plate1.5MTPA

Slab1.5MTPA

HRC3~4MTPA

Phase I : Crude steel production 3.0million tonnes per annual with final product 1.5million

tonnes plate and 1.5 million tonnes slab.

Phase II : Crude steel production 6.0million tonnes per annual with additional 3~4million

tonnes hot roll coil.

※ Additional facility installed is BF #2, BOF #2, and CC Machine #2.

To improve market share and increase market competitiveness,

KRAKATAU POSCO second phase construction to be conducted in the near future

11/11

© PT Krakatau Posco - 201713

※ Attachment 1 : Grade Classification for Internal Defect

© PT Krakatau Posco - 2017

Grade 1 Grade 2 Grade 3 Grade 4 Grade 5

Grade 1 Grade 2 Grade 3 Grade 4 Grade 5

1. Center Segregation

2. Longitudinal Crack

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