Identifying KÜMAŞ Raw materials Dead

§ Identifying KÜMAŞ. § Raw materials § Dead Burnt Magnesite products § Final Products ( Bricks and Mortars) § Customers § Quality Management and R&D Activities § KÜMAŞ as a partner 1

HISTORY § KÜMAŞ is the largest manufacturer and supplier of refractory products for steel, cement, lime and nonferrous industry in the Middle East. § Combining the highest quality refractories with exceptional technical assistance, our mission is to deliver the most cost effective refractory solutions. § KÜMAŞ is a fully integrated refractory supplier you can rely on § Founded in 1972 as a public joint-stock company, started to produce sinter magnesite from natural magnesite ore in 1976. KÜMAŞ has been continued to produce the world’s best quality natural magnesite sinter since 1976. 2

HISTORY § In 1990, KÜMAŞ completed the installation of its brick and mortar production facilities to become an integrated corporation and KÜMAŞ started to produce basic refractory materials from magnesite. § KÜMAŞ became a member of Zeytinoglu Holding in 1995 as a within the framework of privatization process. § Meeting the needs for furnace materials of iron-steel, cement, nonferrous metals and glass industries in Turkey and abroad, KÜMAŞ represents the largest sinter magnesite and dolomite production capacity today in Middle East, with a total production capacity of 180 000 tons/year. 3

RAW MATERIAL § The raw material mines of KÜMAŞ are located within the triangle formed by the Provinces of Eskişehir, Bilecik and Kütahya, which have an estimated total reserve of 65 million tons of magnesite ore and dolomite ore. § The crude magnesite ore is transported to the factory by trucks after it is enriched in the ore enrichment plants at the mining area. § Crushing, sieving and separating by means of permanent magnetic separators accomplish the enrichment of crude magnesite ore. 4

MAGNESITE RESERVE 65 million tons of magnesite ore. 5

DEAD BURNT MAGNESITE § After the enrichment in the raw material mines, the raw magnesite is transfered to the dead burnt magnesite plant. § Then it is reprocessed in the ore enrichment plant installed at the factory to obtain a product of concentrated magnesite. 6

ROTARY KILNS § 110 meter length § 3. 6 m diameter § The concentrated ore is fired at a temperature of 17002100 o. C in 2 rotary kilns, each with a capacity of 90 000 tons/year, 7

§ The dead burnt magnesite is produced in 15 different qualities, which are recognized throughout the world where it is used in the production of High Quality Basic Refractory Materials, due to their high purity and high density. § Since 1977, KÜMAŞ has been exporting a large portion of its dead burnt magnesite production to countries such as Ukraine, Italy, Germany, Romania, Yugoslavia, India, Spain, Iran, France and to other countries. DEAD BURNT MAGNESITE 8

§ KÜMAŞ also accomplished the production of first domestic dead burnt dolomite in Turkey in 1996. The dead burnt dolomite is used in the production of fired, pitch and resin bonded dolomite bricks. § KÜMAŞ achieved its own know-how production of Fired Dolomite bricks for Cement and Steel Industry with excellent specifications and targeted to be an alternative producer of this highly demanded product in the world. DOLOMITE 9

IMPORTANCE OF HAVING RAW MATERIAL § KÜMAŞ is one of the few examples of Refractory producers who has its own raw material sources. § Having own raw materials brought us the advantage of Consistency, Repeatability, Strict Quality and Cost Control on our production. 10

CONSISTENCY IN QUALITY § It is a widely accepted fact that, different sources of raw material causes fluctuations in the product characteristics in refractory materials. While most of the refractory producers buy their raw material from different sources depending on the price and availability, KÜMAŞ has its own raw materials and this has been the determining factor of success for KÜMAŞ. § We consider consistency for refractory products as the main parameter, which we focused on in order to achieve long lasting applications and precise campaign programming for our customers. 11

CUSTOMERS § § § § Main customers are Iron & Steel Industry, Cement Industry, Lime Industry, Glass Industry, Nonferrous Metals, Chemical Industries, Heating Element Producers other Refractory Material Producers. 12

CUSTOMERS 13

DISTRUBITION OF SALES 14

Some of our Customers § IRON & STEEL INDUSTRY: Arcelor Group, US Steel, Eramet Group, Vallourec. Mannesmann Nucor Group, Steel Dynamics, Ovako. Ruukki-Fundia Groups, Sovel-Sidenor, Erdemir Group, Novalipetsk , Krivoy rog, Mobarakeh Steel, § CEMENT INDUSTRY: Soc. Des Cıments Algeria, Southern, Iraqi & Northern Cement Iraq, Padang Cement, Heracles Cement, Titan Cement, St. Mary Cement, Illinois Cement, Monarch Cement, Pars and Khouzestan Cement Set Italcement, Lafarge, Akçansa-Heidelberg, Cimenta, Oysa Group and Nuh Cement in Turkey 15

KÜMAŞ FINAL PRODUCTS CAPACITY 16

KÜMAŞ FINAL PRODUCTS CAPACITY • FIRED BRICK • RESIN AND PITCH BONDED BRICKS • TOTAL BRICK • MONOLITHIC MATERIALS ( Lining, Ramming and Casting Mortars) • MAGNESIUMSULPHATE TOTAL FINAL PRODUCT CAPACITY : 33, 000 ton/year : 60, 000 ton/ year : 93, 000 ton/ year : 40, 000 ton / year : 500 ton / year : 133, 500 ton/ year 17

KÜMAŞ FINAL PRODUCTS § IRON & STEEL INDUSTRY: – Mag Carbon Bricks – Dolomite Bricks – Fired Dolomite Bricks – Alumina Mag Carbon Bricks – Fired Magnesia Chrome Bricks – Mortars » Ramming » Casting » Gunning » Filling 18

KÜMAŞ FINAL PRODUCTS § CEMENT INDUSTRY: Calcination zone – Low Alumina Bricks – High Alumina Bricks Burning Zones – Magnesite Chrome Bricks – Chrome-Free Magnesite Bricks – Zirconia added Fired Dolomite Brick Lower & Upper Transation Zones – Magnesia Spinel Bricks 19 Magnesia based Lining Mortar

NEW INVESTMENTS The new tunnel kiln was installed to operation at the beginning of 2005, which is able to reach up to 1800 o. C. With this new kiln, the fired bricks capacity is reach 33. 000 tons/year. The new hydraulic press was installed to operation at the beginning of 2005, with a capacity of 2500 tons a with vacuum system and an other new press with the same capacity will be in operation in 2006 20

QUALITY MANAGEMENT § Using the TS-EN-ISO 9001 Quality Management System is being awarded, to get world class quality standards, in 1997, all production processes and products are subjected to Quality Management System. Due to May 2003, KÜMAŞ has been organized according to revision 2000. 21

QUALITY STANDARDS § Highest quality standards apply not only to all of our products but also to the KÜMAŞ expertise, know-how in the customers´ production processes, state-of-the-art machinery, global sales, best possible service and optimal product application. § KÜMAŞ views quality and continuous improvement as the foundation for company stability and growth. Our products are manufactured in accordance with the ISO quality standard, as well as an internal quality system that promotes continuous evolution of product quality and production efficiency. 22

§ KÜMAŞ is equipped with extremely modern laboratory equipments, in order to implement necessary Q&M checks and R&D activities to improve quality of products continuously. § RESARCH & DEVELOPMENT KÜMAŞ is working in R&D activities with; Ø Metallurgical and Materials Engineering Department in METU ( Working with consultant for 10 years ) Ø TUBITAK Ceramic Research Center, 70 km away from KÜMAŞ has a board of directory for its management. 23

KÜMAŞ IS A SOLUTION PROVIDER § To cooperate with customers, § To have as much as possible information about operational conditions, § To analyze effects of each parameters on Refractory Performance from Refractory producers point of view, § To implement necessary changes in product specification in order to meet specific requirements of each case, 24

KÜMAŞ IS A SOLUTION PROVIDER § § To submit all kind information and recommendations concerning operational conditions to create Refractory friendly or compatible working conditions. Customers and Producers are integrated part of each other in order to achieve this goal. This concept appeared as the main secret of wide acceptance of KÜMAŞ within very short time period. 25

KÜMAŞ exits to keep a strong, reliable and independent alternative against monopolistic trends in Refractory Industry. With competitive prices and at least the same performance level of existing suppliers, we are ready to be of service to your esteemed company. 26

THANK YOU 27