The Case For A 15,000Tonne Open Die Forging Press Materials Supply - - PowerPoint PPT Presentation

The Case For A 15,000Tonne Open Die Forging Press

Materials Supply Chain for UK Power Generation

Outline

• Company & Employees
• Performance & Markets
• Investments
• World Demand
• Future Direction
• Funding Support

Company & Employees

Group Structure

Current Shareholders

Shareholders Holding

SFIL Management and Workforce 100%

520 570 620 670 720 770

• No. Employees

Jul-04 Aug-04 Sep-04 Oct-04 Nov-04 Dec-04 Jan-05 Feb-05 Mar-05 Apr-05 May-05 Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 M onth

• 745 Employees
• 61 Apprentices
• 510 Hourly-paid
• 235 Staff

Total Employees

Performance & Markets

Total Sales

20 40 60 80 100 120 2004 2005 2006 2007 2008 Sales Sales (Projected)

2004 2004 2005 2005 2006 2006 2007 2007 2008 2008 TOTAL TOTAL £ £48.5M 48.5M £ £66.5M 66.5M £ £80M 80M £ £95M 95M £ £120M 120M

Current Sales by Product

80% EXPORT 80% EXPORT

Serving a Worldwide Business

• 4
• 2

2 4 6 8 10 12 14

£M

2001 2002 2003 2004 2005 2006 2007 2008

Year

Operating Profit/Loss

External Order Book

20000 40000 60000 80000 100000 120000 140000 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08

Investments

Total Investment 2006/08

Business Unit £K Steel SFM 1769 Engineering SFM 9669 Vulcan SFM 11125 Total Investment 22563

SFIL Has Invested More In the last 12 Months Than In The Previous Decade

World Demand

New & Proposed Presses >10,000 tonnes

Korea 3 Germany 1 Japan 2 Italy 2 Czech Rep 1 USA 1 Ukraine 1 China 6 UK 1

Shipbuilding

Backup Roll Weights

Increase In Power Generation New Build 2007/11(base date 2002/06)

0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 200%

Power Generation Demand 25% 41% 50% 185% 200% Gas Turbine Hydro Coal fired super critical Wind Nuclear

Generator Rotor Weights

Demand For New Casks For High-Level Waste Transport Casks Type B

10 20 30 40 50 60 70 80

Number of Casks

2007 2008 2009 2010 2011 2012 2013 2014 2015

S1

Year

Nuclear Renaissance

Source: EIA Annual Energy Outlook 2004 Source: EIA Annual Energy Outlook 2004

1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 1990 1995 2000 2010 2015 2020 2025

Asia Europe USA Rest of World

Forecast Electricity Demand (Billion KWh)

Growing demand for clean, safe electricity

• Nuclear Reactor – Core Components

• Nuclear Reactor Pressure Vessel

• Forged Steel Nuclear Vessel Components

• Nuclear Vessel Components in Forging

• Global use of Nuclear Power

Plans For New Reactors Worldwide

2 4 6 8 10 12 14 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Year

• No. per Year

Location Of New And Proposed Nuclear Build In Operation By 2025

USA UK South Africa Korea Canada Russia Japan India Iran China Argentina Pakistan Finland France Slovakia

Forging Demand Per Reactor Type

1,000 2,000 3,000 4,000 5,000 6,000 7,000

Candu Today System 80+ 1970-80 AP1000 Today EPR Today

Major Nuclear Forges

Mx Ingot Press (tonnes)

• Japan Steelworks

600t 14,000

• Creusot (France)

250t 11,300

• OMZ (Russia)

360t 12,000

• Sheffield Forgemasters (UK)

300t 10,000

• Doosan (S. Korea)

540t 10,000

• Capacity and Demand for Heavy

Nuclear Forgings

34 59 54 50 44 40 21 70 68 66 55 50 34 22

10 20 30 40 50 60 70 80

2008 2010 2012 2014 2016 2018 2020 Year

Nuclear Forgings in Tons (K)

Capacity Demand

Steam Generator Components (SG)

EPR AP1000

• Steam Generator (SG)

9 Parts on the EPR 4 Parts with Current (4 per installation) Capabilities 9 Parts on the AP1000 4 Parts with Current (4 per installation) Capabilities

Pressurizer Components (P)

EPR AP1000

• Pressurizer (P)

5 Parts on the EPR 3 Parts with Current Capabilities 4 Parts on the AP1000 4 Parts with Current Capabilities

Reactor Pressure Vessel Components (RPV)

• Reactor Pressure Vessel (RPV)

7 Parts on the EPR 0 Parts with Current (1 per installation) Capabilities 4 Parts on the AP1000 0 Parts with Current (1 per installation) Capabilities

EPR AP1000

500 1000 1500 2000 2500 AP 1000 EPR Size per reactor in delivered tonnes

SFIL can cover today :

• 26 % of AP 1000
• 44% of EPR

If 5+5 UK programme: Total expected demand = 20225 tonnes SFIL can cover:

• 34% of total demand

Assembled Forging Weight Per Reactor Type

Future Direction

Investment – Melt Shop

Equipment £K Secondary Steelmaking Unit 6000 High bay extension 2000 New Vacuum Tank 750 500Tonne Crane 2000 Ladle Processing Facility 1000 Ironware and Ladles 1000 Power and Transformers 2000 Total 14750

Proposed Investment at SFIL To Support The UK Nuclear Program

Investment – Forge

Equipment £K 15000 Tonne Press 10000 Forge and HT Building 6000 Electrical Supplies 2000 Civil Works 2000 2x Forge Furnaces 3000 6x HT Furnaces 4000 2x Class 8 Forging Cranes 3000 Quench Tank 1000 Forge Manipulator 2000 Forge Tooling 2000 2x HT Cranes 1000 Total 36000

Proposed Investment at SFIL To Support The UK Nuclear Program

Investment – Machining

Equipment £K Building 4000 3x Vertical Boring Mills 7000 2x Lathes 6000 Various Equipment 2000 Total 19000

Proposed Investment at SFIL To Support The UK Nuclear Program

Output Impact New Jobs created 120 (direct) 80 (indirect) Safeguarded Jobs 750 New Sales (Domestic) £230M Safeguarded Sales £120M/y UK Nuclear Program Build Schedule Underpinned

Expected Outputs From Proposed Investment at SFIL

Funding Options

Source Private Equity Trade Partners Banks Government

Funding Support