DANIELI AND ENERGIRON DIRECT REDUCTION TECHNOLOGYA HISTORY OF SUCCESS SUPPORTING THE FUTURE CHALLENGES

2011With the latest two2.5-Mtpy DRI module orders in force (+3 awarded),Energiron technologyconfirms its leadershipin the ironmakingindustry. In the pastfive years 12.75 Mtpy of new DRIcapacity added with the Energironplants changed the world scenario

Two Energiron DR plants enable today the Emirates Steel Industry to produce more than 3 Mtpy of Hot DRI.Starting from the completion of the Hot Commissioning,the DRP has scored some remarkable achievements.

EMIRATES STEEL INDUSTRIES:THE PLANTS WITH THE HIGHEST PRODUCTIVITY RATE WORLDWIDE

> 2009 Commissioning of the first ESI Energiron plantsuccessfully completed at the end of December with a production higher in quality and quantitythan the guaranteed one and with the consumption

parameters well below the contractual limits.

> 2010 Several remarkable achievements collected by the first Energiron plant in operation at ESI, including: new world record for daily production with 5895 t/day of Hot DRI (245.63 t/h) on February 1st; new world record for monthly production with 134,951tons (plant availability higher than 97%) in June.

> 2011 On May 24 the second Energiron DRP successfullypassed the 7 day Performance Test recording an average metallization of 95.61% and an averageproduction exceeding 200 tonnes/h. Further 10-day test proved the efficient integration of the Energiron DRP with the meltshop: 41,000 tons of saleable billetsproduced in 275 heats which is 10% above target.

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4

5

6

Layout of a typical Danieli Energiron Direct Reduction plant.

1 Incoming oxide storage area

2 Direct reduction plant3 Iron oxide day bins4 Product storage

open yard5 Product storage

silos for cold charge6 Water treatment plant

Danieli excellence in DRI technology

> High degree of metallization and controlof carbon content, according torequirement of the final use of DRI

> High DRI quality with different rawmaterials (iron ore pellet, lump ore, BF pellet, or mix)

> Maximum process flexibility -with or without external reformer- and maximumproduction flexibility, from 0.2 to 2.5 Mtpyof cold or hot DRI

> Optimized energy consumptions

> Improved environmental parameters(Selective elimination of CO2, Removal of sulphur from gaseous emissions, Low NOx emissions, Zero make-up waterrequirements)

> Advanced automation systems

> High ramp-up performances (97% of the monthly operating time reached in less than 1 month; 92% of the nominalplant production reached in less than 5 months)

HYL

Others

ENERGIRON

Others

DRP built from1957 to 2005before HYL-Danielialliance.

New EnergironDRP installedand/or underconstruction since2006, after Danieli-Tenova HYLalliance.

Effect of the Energiron alliance and the worldwide commercial network of Danieli.(based on tpy of installed capacity)

Customer Location Mtpy

Emirates Steel Industry I UAE 1.6

Gulf Sponge Iron UAE 0.2

Emirates Steel Industry II UAE 1.6

Suez Steel Egypt 1.95

Ezz Rolling Mills Egypt 1.9

(*) Far East 0.5

Nucor Steel USA 2.5

Jindal Steel & Power India 2.5

Total new projects capacity 12.75

DANIELI AND ENERGIRON DRTECHNOLOGY A HISTORY OF SUCCESS SUPPORTING THE FUTURE CHALLENGES

In the recent years, the increasing price of reducingagents and the restrictions imposed by theenvironmental regulations induced the steelmakingindustry to adopt alternative solutions.The high performance parameters, both in terms of efficiency and productivity, reached with the Energiron direct reduction technology set a new benchmark for the ironmaking industry.Focusing on the DRP market, the world scenarioshows a strong change when this innovative technology has been created merging Tenova HYL & Danieli technologies (2005).

0 100 200 300 400 500 600 700

0 100 200 300 400 500 600

E (k

Wh/

tLS)

DRI temperature (C)

HOT DRI CHARGE INTO THE EAF

When DRI with a temperature of 600 C is melted in the EAF,the savings in electric energy are up to 141 kWh/tLS with an increase in productivity of up to 22% for a practice of 90%hot-10% cold DRI.

DANIELIAUTOMATIONINNOVATIVE DIRECTREDUCTION PLANT PROCESSCONTROL SYSTEM

The control systemarchitecture includes a Level 1for equipment and systemcontrol and a new Level 2designed not only for process supervision, data traking and reportsgeneration but also for optimization of the process. New functionalities installed in the Level 2 include a Process ReconstructionModel that usesinstrumentation signal comingfrom the PLC and physicalequations in order to provide a full description of the plant status.

DANIELI AND ENERGIRON / PROJECTS UNDER CONTRUCTION, TARGETING OVER 2.5 MTPY IN A SINGLE REACTOR

EZZ Rolling Mills

Plant capacity: 1.9 Mtpy ENERGIRON technologywith an external reformerfor production of cold DRI

Suez Steel Co.

Plant capacity: 1.95 Mtpy World biggest DR plant in a single module ENERGIRON technologywithout external reformer for production of hot and coldDRI, equipped with pneumatictransport for hot DRI

DANIELI CONSTRUCTIONHIGH CONSTRUCTION AND ERECTION CAPABILITY

Danieli Construction International operates worldwide covering full services from soil improvement, civil works, material and equipment handling,electromechanical installations, piping prefabrication, HVAC. The company operates synergically with Danieli Group technology divisions involved in the project, with the aimof providing total customer satisfaction with quality and on-time performances.

DANIELI YEAR 2011