One of the World’s Largest Ferronickel Plants Delivered

Tokyo, November 17, 2009 — Kawasaki Plant Systems, Ltd. (K Plant) announced today that it has delivered a ferronickel plant to SNNC Co., Ltd., an affiliate of the Korean steelmaker, POSCO.

Constructed near POSCO’s Gwangyang Works, the plant boasts a production capacity of 30,000 tons/year, making it one of the largest ferronickel plants in the world. After signing a contract with SNCC back in August 2006, K Plant finished work on the plant approximately three months ahead of schedule. The plant went into operation in early October 2008 and performance tests were conducted in April and late September 2009. The tests verified that the plant met all the performance requirements specified in the contract.

Responsible for the design and manufacture of the entire plant, K Plant provided all the primary equipment (rotary dryer and rotary kilns, casting machine, etc.) with the exception of the electric furnace. K Plant also provided technical assistance on test runs and headed up operational training at PT Antam Tbk. in Indonesia while process analysis and inspections were carried out by the Kawasaki Heavy Industries Technical Institute to provide optimal ferronickel production solutions.

The ability to choose the right suppliers for the job on top of expert project management was key factors that enabled K Plant to finish three months earlier than anyone expected. The swift completion of the project allowed SNNC to finish about six months earlier than it would have normally taken to construct this, one of the largest, ferronickel plants in the world. K Plant’s comprehensive plant engineering capabilities have earned it high marks from both POSCO and SNNC. Completion of the plant makes POSCO the world’s first integrated steelmaker capable of doing everything from nickel mine development to ferronickel production and stainless steel product manufacturing while forging a stronger position in the global steel market.

The delivery of this large-scale plant well ahead of schedule marks a huge step forward for K Plant’s ferronickel plant business. K Plant will continue to make further inroads in the global market as it adds to a growing list of customers that now includes SNNC and Antam.