山东伊莱特重工介绍Introduction of High-alloy Non-ferrous Metal Forging Project

SHANDONG IRAETA HEAVY INDUSTRY STOCK CO.,LTD

Company Introduction P3

Project Introduction P8

内容 Contents

Investment Highlights P13

Iraeta Listed New Three Boad Market on Jul. 18th, 2016stock code 837192

Contact Us P17

Shandong Iraeta is located in Zhangqiu, Jinan city and the joint venture partner is Gestamp Group in Spain. Both sides hold 50% shares. Iraeta is named as China forging association executive director unit and a national high-tech enterprise.

Main products include forged discs, rings and cylinders as well as grinding media which are widely used in shipbuilding, petrochemistry, wind power, hydropower, nuclear power, UHV, mining & metallurgy, etc.

Company Introduction

50%-50% Sino-Spanish Joint Venture

300 thousand square meters

800 employees

40 years of forging experience

40

Gestamp Group is a transnational enterprise headquartered in Spain. It owns over 140 factories and business institutions in 31 countries and hires 45,000 employees. In 2015, the global turnover of Gestamp Group reached above 12 billion Euros.

Gestamp-the largest steel deep processing enterprise in Spain

Introduction of Joint Venture Partner

steel deep processing clean energy spare parts

vehicle stamping parts clean energy development

Company “158” Structure

sales company

Financial Center

Purchasing Center

Technical center

Admin Center

QC Center

Petrochemical Industry Nuclear Business Unit

Onshore Wind Power Business Unit

Grinding Media Business Unit

Modern Logistics Business Unit

Offshore Wind Power Business Unit

Numerical Control Equipment Business Unit eBiz & Info Business Unit

High-alloy Non-ferrous Metal Forging Business

Unit 55

Main Products Wind power, nuclear power and hydropower forgings, aluminum magnesium alloy and copper alloy forgings, grinding media

High-alloy Non-ferrous Metal Forging Project

China and the whole world is going through an energy revolution. Climate issues force countries have to intensify efforts to develop clean energy. In G20 summit, China and USA submitted Paris Agreement on Climate Change to the United Nations simultaneously, which means that clean energy will enter a sustained positive period. China's clean energy consumption share should be more than 15%. Therefore, wind power and nuclear power installed capacity will be definitely in a rapid growth trend.

Application：Integral super scale high-alloy non-ferrous metal forgings, used in nuclear, hydropower, wind power and aerospace fields.

competitiveness：1. Solve the problem that most large forgings used for domestic nuclear power and hydropower can only be imported from foreign countries. 2. Solve the problem that large-size forged discs and cylinders can only be manufactured by casting and welding.

Advantages：High precious equipmentLi Yiyi Academician Workstation, established with CAS.

from Aug, 2016 to Dec, 2017set up time：

Main Equipment

• Iraeta Imported one super ring rolling machine form SMS Meer with 16-meter diameter and 3-meter height. SMS keeps the world leading position in smelting and rolling fields. It has nearly 200 years of experience in designing and manufacturing steel and non-ferrous metal processing equipment. Now, SMS expands business to the whole world.

Main Equipment

• Bought one 13,500-ton press machine from Tianduan Press, using Germany Rexroth control system and hydraulic system.

• Imported one 150-ton manipulator from DDS in Germany. DDS was established in 1865 and now has more than 100 years of history. It’s well known in Germany for its forging equipment.

Main Equipment

• The matching heat treatment equipment and machining equipment are all purchased from well-known enterprises.

Main Products Large-size forged rings and cylinders used in wind power, nuclear power, hydropower, marine engineering and hydrogenation reactor

Investment Highlights

1

Powerful real economy+ Internet + capital operation

Iraeta's product chain is from low-end to high-end and then to high precious, with diameter from 70mm to 16m, weight from 0.2 kg to 200 tons and material from ferrous to non-ferrous metal.

Main products includes forged discs, rings and cylinders which are used in nuclear power, hydropower, large pressure vessel and marine engineering.

Shandong Iraeta is capable to develop new business rapidly relying on its rich customer resources in energy and machining fields.

China enterprises: CGNPC, State Grid, CNPC, etc

International enterprises: Siemens, Alston, GE, etc.

In addition, our joint venture partner has over 140 factories and business institutions in more than 30 countries as well as the share holders Arcelor Mittal and Mitsui. With their support, we can expand business in the whole world rapidly.

2Business Model

Sales Network3Elite Team

With 40 years of operation experience, Shandong Iraeta formed an unique administrative method with the features of state-owned enterprise's standardability, joint venture's advancement and private company's fast decision-making mechanism.

Clients & Certifications

PED CPD

ISO 17025

• 35 patents, 21 certifications, Shandong Province famous trademark

• Chief editorial unit in drafting the stand of Ring type forgings of wind turbine generator system , issued by National Energy Board

• Participate in drafting the industrial stand of Transmission line steel tower flange, issued by State Grid.

• A unit of the national torch plan Ring type forgings of wind power precision forming technology and equipment.

• Certifications from Top 500 enterprises, like Siemens, GE, Alston.

• Supplier of Chinese 90% large MW wind turbine flanges

Technical support-Li Yiyi Academician Workstation

Shandong Iraeta established Li Yiyi Academician Workstation together with Metal Institution of CAS for developing integral high alloy non-ferrous metal forgings. In addition, we has provincial technical center, national-level lab and 86 R&D team members.

Liyiyi is the national academic leader in researching low temperature and nuclear structural materials. She presided four Five-Year Plan national technology subjects continuously and completed five types of anti-hydrogen steel.

Metal Institution is one of the first batch institutions of CAS after the establishment of PRC. In recent years, Metal Institution takes on the following tasks about national key material technology breakthrough :

Key materials used in manned space flight, aircraft, Aircraft engines, high-speed railway and the Three Gorges Project.

Shandong Iraeta Heavy Industry Stock Co., Ltd

www.iraetaforging.com