KAMENSK-URALSKY

METALLURGICAL WOKS (KUMZ)

KUMZ history

May, 5th, year 1944 The Birth of the Plant Kamensk-Uralsky city, Sverdlovsk region

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KUMZ is composed of:• casting production• forging production• rolling-mill production• aircraft sheet and plate production

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Dynamics of KUMZ production

103 700

117 292

82 071

65 951

27 533

58 911

38 225

36 918

51 009

161 499

213 804

234 588

231 833

227 654

235 721

233 607

236 112

229 890

96 610

29 530

43 627

28 406

104 507

80 047

0

50000

100000

150000

200000

25000019

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1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2004

2007

2008

2009

2010

(pr)

tons

production, tons4

Aircraft industry

Transport

Military-industrial complex

Building

Oil and gas industry

Engineering industry and others

KUMZ product application

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JSC «ОАC» :

-«KnAAPO» J.S.Co. (Komsomolsk-on-Amur city)

-«Taganrog aircraft scientific-technical complex» J.S.Co.

- «Voronezh joint-stock aircraft company»J.S.Co.

- «Aviastar» C.J.S.Co.

- «Nizhny Novgorod aircraft company «Sokol» J.S.Co.

- «Russian aircraft corporation «MiG» J.S.Co.

- «Kazan aircraft association of S.P. Gorbunov» J.S.Co.

- «Irkutsk aircraft plant» J.S.Co.

-«NAPO of Chkalov» J.S.Co.

- «AVIAKOR – aircraft plant» J.S.Co.

- «Rostvertol» J.S.Co.

- «Ulan-Ude aircraft plant» J.S.Co.

- «Kazan helicopter plant» J.S.Co.

- «AAK Progress of N.I. Sazykin» J.S.Co.

KUMZ products:

Sheet

Plate

Forging

Profile

Rolled ring

АВИАПРОМ

Airbus

Boeing

Bombardier

Embraer

Goodrich

Snecma

Honeywell

CATIC6

Al-Li Alloys

Al-Li alloys are developed and still being developed by Russian Institution for Aviation Materials (VIAM). KUMZ is one of the three world companies, and unique in Russia, which produces AL-Li alloy semi-finished products.

Li content:

1.0% up to 2.4%

Advantages of Al-Li:

About 10% lighter than standard Al alloys Strength and fatigue characteristics Corrosion resistanceWeld ability

Applications of Al-Li:

Aviation and aerospace

Sheet: fuselage, plane wings, spacecraft fuel tanks

Extrusion: beams and critical parts in aircraftForgings: wheels and critical parts in aircraft

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In 1985 -1990 planes MIG-29М and MIG-29МК were created from Al-Li alloys with welding. The planes had 18% winning in weight, all weldingoperations were automatically made.

Al-Li Alloys

Results: 18% winning in weight, which gives:

- increased fuel reserve- larder range of action - increase in the number of arms

automated welding process > 80% improved maintainability, including

in the field conditions

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Strategic partners:

Russian Railways

Siemens

VASO

UVZ

RusPromAvto

DMZ (Demihovo)

Incat

Austal

Brush Electrical Machines

Samsung Heavy Industries

Alstom

TRANSPORT

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Customers:

Kurganmashzavod

Rosoboronexport

Zvyozdochka

Sevmashpredpriyatiye

Raytheon

McDonnel Douglas

Westland Helicopters

Sikorsky

MIC and Nuclear Power Engineering

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Customers:

ZiD

Tochmash

Proposal for the construction of Rolling Complex with capacity of 165 900 tons per year

№Title

Investment, in million of

roubles 1 Stage №1 Cold rolling mill construction 12 5262 Stage №2 Hot rolling mill construction 9 469

Total project: 21 995

Total project investments are: 21 995 million Russian roubles Net present value (NPV) –1 724 million Russian roublesInternal rate of return (IRR) – 14,1 %Payback period (PP) – 8,4 years

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Project «Rolling Complex Construction»Stage 1 «Cold rolling mill construction»

№ Title Expectant Doers Realization period Output, tn

1 Design woks (5%) Russian design institutes

2011 - 2013 35 0002 Equipment (70%)

Companies - tenderers: 1. SMS SIEMAG – Germany,2. SIEMENS VAI – Great Britain,3. Achenbach – Germany,4. Uralmash – Russia

3 Construction works (25%) Russian construction plants

Investments for the 1st Stage of the Project – 12 526 million roubles

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№ Title Expectant Doers Realization period Output, tn

1 Design woks (5%) Russian design institutes

2011 - 2015 130 9002 Equipment (70%)

Companies - tenderers: 1. SMS SIEMAG – Germany,2. SIEMENS VAI - Great Britain,3. Achenbach – Germany,4. DANIELI - Italy

3 Construction works (25%) Russian construction plants

Investments for the 2nd Stage of the Project –9 469 million roubles

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Project «Rolling Complex Construction»Stage 2 «Hot rolling mill construction»

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General lay-out of the Rolling Complex

Drill pipes

Public catering

Woodworking

Dispensary

Warehouse

Extrusion production

Rolling production

Forging production

Forging production

Casting production

Extrusion production

Extrusion production (carrying-out to shop 40)

Stocks

Stocks

Railway workshop

Printing office

Laboratory

Rolled-and-welded products

Tool workshop

Construction workshop

Building profiles

Secondary alloys workshop

Project «Chkalovsky»(realized in December, 2007)

Auto transport workshop

Repairs

Flammable liquid warehouse

Cleanings

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“Demidovskiy” plant

II s

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Layout of the Rolling Complex

1st Stage 2nd Stage15

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Experience in performing Investment projects2005 Start-up construction of new factory “Chkalovsky”, Ltd., for aircraft plate production

Output – 22 300 tons annually,Investment - 90 million $,

2007 The factory is commissioned (December, 12th, 2007)

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Experience in performing Investment projectsAlso the next major projects were successfully realized:

2006 г. Two new casting machines with the production capacity of 30,000 tn for aircraft production were constructed. Investments in 2006 year - 1 334 million roubles

2007 г. Commissioned:

• furnace for coils annealing in an inert atmosphere

• homogenizing furnace for ingots

• unit for quenching forgings for aircraft industry

• thick bars cutting section

• new highway around KUMZ for shipment of goods by road

Total investment – 742 million roubles.

2008 г. Hot rolling mill was modernized, and a new billet cutting line was started-up .

Investments – 1 050 million roubles

2009 г. Melting-and-casting unit with capacity of 60, 000 tn, as well as ingot heating furnace were constructed and prepared for the commissioning. Investments - 252 million roubles.

2010 г. Modernization of vertical press with capacity of 30 000 tn and horizontal press with capacity of 12 000 tn is planned. Planned investments – 800 million roubles

KAMENSK-URALSKY METALLURGICAL WORKS IS

THE BEST OBJECT FOR INVESTMENTS

• The Plant is the main enterprise for the Russian aircraft construction.• KUMZ is the basic enterprise for the research activities of Russian Institution

for Aviation Materials. The Plant maintains close ties with other scientificinstitutes.

• The continuity of generations is maintained at the plant, and this allows todevelop new products in short time despite the outdated equipment.

• During the last 5 years the Plant performed a number of projects relating toboth the upgrading of equipment and the construction of a new production.

• The Plant runs a Program of strategic development adopted for 2006 – 2015years.

• KUMZ products are certified by Boeing, Airbus, Bombardier, Siemens anddelivered both in Russia and in the majority of world markets practically on allcontinents.

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