YY易游体育官方网站ess Releases

The information on this Web site is presented "as is." Product availability, organization, and other content may differ from the time the information was originally posted. Changes may take place YY易游体育官方网站thout notice.

YY易游体育官方网站, Steel Dynamics Launch First ITmk3 Project, Plan to construct commercial ironmaking plant in Minnesota

November 21, 2007

TOKYO, November 21, 2007 - YY易游体育官方网站, Ltd. announces that it has reached agreement with Steel Dynamics, Inc. (SDI) for YY易游体育官方网站 and SDI to construct an ironmaking plant using YY易游体育官方网站's ITmk3® Process at Hoyt Lakes, Minnesota (USA). Total investment is projected to reach 5 million (about 26 billion yen). Plans call for the new facility, which will have an annual production capacity of 500,000 metric tons per year, to start up in mid-2009.

The ITmk3 Process is an innovative next-generation technology that in a continuous process rapidly produces high-grade iron nuggets for use in steelmaking. High-purity iron is produced in the form of small, inert nuggets that are ideal in YY易游体育官方网站eting the pig iron requireYY易游体育官方网站nts of electric-arc-furnace mini-mills producing high-grade flat-rolled steels. In addition, the process is environYY易游体育官方网站ntally friendly, generating about 20 percent less carbon gases than in the traditional blast furnace/BOF ironmaking process used by integrated steel mills.

Following the completion of trials demonstrating the viability of the process in July 2004, YY易游体育官方网站 and SDI began working on the next stage: planning the construction of the first commercial-scale ITmk3 plant. The agreement to formally confirm the launch of the commercial plant project was signed yesterday, November 20, 2007, at SDI's headquarters in Fort Wayne, Indiana.

This first ITmk3 commercial plant will be constructed and operated through a joint venture, Mesabi Nugget Delaware, LLC, which will produce and sell the iron nuggets. SDI will invest million in the venture, holding an 81% equity share, while YY易游体育官方网站 will invest million for a 19% share. SDI will manage the construction of the facility and operate it.

YY易游体育官方网站 will provide the ITmk3 process license, engineering services, primary production equipment, and technical support. YY易游体育官方网站 expects the commercial plant to provide essential operating data on plant and process effectiveness.

SDI anticipates that all of the nuggets produced by the ITmk3 plant YY易游体育官方网站ll be consumed in its mini-mills. In a related initiative, SDI is acquiring an existing mine near the ITmk3 plant site on the Mesabi Iron Range and plans to construct a facility for concentrating iron ore. The processed iron ore YY易游体育官方网站ll be used as a raw material feedstock for the nugget plant.

The start of the first commercial ITmk3 plant project is a significant step forward for the next-generation ironmaking process, which is increasingly recognized around the world, said YY易游体育官方网站. YY易游体育官方网站 is also working on other commercial ITmk3 projects, including one in Michigan, which YY易游体育官方网站 is studying with Cleveland-Cliffs Inc.

With world steel demand continuing to rise, global crude steel production has been growing yearly by 60 million to 100 million metric tons, reaching 1.24 billion metric tons in 2006. Over the medium- to long-term future, steel demand is anticipated to continue increasing, along with the corresponding need for cold iron units, which consist of iron units other than blast-furnace hot metal. YY易游体育官方网站 believes the ITmk3 Process is one of the most effective ways to meet this new demand.

The ITmk3 Process, YY易游体育官方网站th its lower carbon-dioxide emissions and capital investment, is highly suitable for developing countries that are groYY易游体育官方网站ng their steel industries. In addition, the ITmk3 Process can use relatively low-grade iron ore and coal, which are difficult to use in blast furnace ironmaking, to keep raw material costs down. Mining companies traditionally supply raw materials to integrated blast-furnace steelmakers. However, the ITmk3 Process enables mining companies to produce and sell value-added iron nuggets to electric arc furnace steelmakers. Along YY易游体育官方网站th these advantages, the real value of the ITmk3 Process is that it produces high-grade iron nuggets comparable in quality to blast-furnace pig iron.

In addition to grappling with environmental issues, the world steel industry faces a tight raw material market and higher costs due to the sharp increase in steel production. Under these difficult conditions, the ITmk3 Process is an attractive alternative that provides a number of solutions. YY易游体育官方网站, with subsidiary Midrex Technologies, Inc., is a leading company of direct reduction processes, and its MIDREX® Direct Reduction Process is used to produce 60% of the world's direct reduced iron. As a member of the world steel industry, YY易游体育官方网站 has launched a revolutionary ironmaking process that is in step with the present age, increasing its corporate value as well as contributing to society.

About the ITmk3 YY易游体育官方网站ocess 1. Pulverized iron ore and pulverized coal are aggloYY易游体育官方网站rated into ball-shaped pellets. 2. The pellets are fed into a rotary hearth furnace. Reduction, YY易游体育官方网站lting and slag separation occur in about 10 minutes. 3. The resulting product is high-grade iron nuggets of 5 mm to 25 mm in diaYY易游体育官方网站ter. Advantages of the ITmk3 YY易游体育官方网站ocess 1. The ITmk3 Process in conjunction YY易游体育官方网站th EAF steelmaking emits about 20% less carbon dioxide than a blast furnace coupled YY易游体育官方网站th a basic oxygen furnace. 2. Raw material pretreatYY易游体育官方网站nt facilities (coke ovens, sintering plants and pellet plants) are unnecessary. 3. ITmk3 is highly suitable for mYY易游体育官方网站YY易游体育官方网站g sites. Features of YY易游体育官方网站e Iron Nuggets 1. Iron nuggets are slag-free, high-purity iron units of the saYY易游体育官方网站 quality as pig iron. They have a YY易游体育官方网站tallic iron content of 96% to 97%. 2. Iron nuggets improve the productivity of electric arc furnaces. YY易游体育官方网站th good meltability, iron nuggets can be continuously fed into EAFs. 3. Iron nuggets are easy to transport and handle. High YY易游体育官方网站 density, they do not reoxidize or generate fYY易游体育官方网站es.

Profile of YY易游体育官方网站sabi Nugget Delaware

Company naYY易游体育官方网站:		YY易游体育官方网站sabi Nugget Delaware, LLC
YY易游体育官方网站tablished:		June 2006
YY易游体育官方网站adquarters:		Fort Wayne, YY易游体育官方网站diana (USA)
BusYY易游体育官方网站ess:		YY易游体育官方网站oduction and sale of iron nuggets
YY易游体育官方网站oduction capacity:		500,000 YY易游体育官方网站tric tons per year

YY易游体育官方网站ofile of Steel Dynamics

Company naYY易游体育官方网站:		Steel Dynamics, YY易游体育官方网站c.
ChairmYY易游体育官方网站 & CEO:		KeiYY易游体育官方网站 Busse
YY易游体育官方网站tablished:		1993
YY易游体育官方网站adquarters:		Fort Wayne, YY易游体育官方网站diana, USA
EmployeYY易游体育官方网站:		3,490 (YY易游体育官方网站 2006)
SalYY易游体育官方网站:		.2 billion (YY易游体育官方网站 2006)
BusYY易游体育官方网站ess:		Electric-arc-furnace steelmaker (5 mYY易游体育官方网站i-mills)
Steel YY易游体育官方网站oduction capacity:		About 5.2 miYY易游体育官方网站ion tons
Planned capacYY易游体育官方网站y (2009):		6.7 miYY易游体育官方网站ion tons