FRÖHLING INSIGHT.

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1 FRÖHLING INSIGHT

2 2 DANIELI Fröhling THE INTERVIEW Mr Kotas, you are the Executive Vice President of Danieli Germany and BU Lead for Danieli Fröhling. Would you shortly tell us something about yourself and your background in the industry and at DF? MR KOTAS I have been joining Danieli Fröhling in 2010, and since then assumed different roles in project execution prior to being appointed co-managing Director in 2014, eventually resulting in the responsibility of Danieli Fröhling Business Unit since last year. FRÖHLING INSIGHT Our new information platform has been launched! Regular communication is crucial in today s fast-paced environment. We always look at providing our customers, partners and colleagues with detailed insights about new developments or recent achievements. The Danieli Fröhling News has been published between 2004 and But times are changing quickly and thus we decided to give our newsletter a new, modern and even more informative face. Together with a young media agency called MediaBrennt, we are proud to present now Fröhling Insight. We hope that this bi-monthly magazine will be both informative and attractive to our readers. Enjoy reading! Prior to this, I have been working in the steel manufacturing sector, of which many years I were directly involved in various large-scale projects at international level. Actually I still remember my first working day at Stahlwerke Bremen back in the 90 s on which we visited their impressive hot rolling mill which left me completely stunning. I believe many of us had similar experiences. Summarizing we could say the metals business has influenced my life since then and continues to do so. I have highest respect for everyone active in this industry, but of course especially for all our collaborators committed in continuously raising the bar of equipment performances. Still today, I try to reserve significant amount of time to visit customer sites as often as possible, mostly during equipment installation and commissioning phase; because it is only

3 3 there that you get a comprehensive understanding of what is going right or wrong and understand the real needs of our customers. After some time, Danieli Fröhling relaunches its Newsletter again. Can you tell us what you expect from this relaunch? Josef Fröhling GmbH has been incorporated into Danieli Germany GmbH recently. Customers and suppliers will ask for reasons and if something would change in their relationship with Fröhling. What happens with Danieli Fröhling now and what does it mean for your business partners? MR KOTAS Regular communication is crucial in today s fast-paced environment. We always look at providing our customers, partners and colleagues with detailed insights about new developments or recent achievements through various media. So why did we decide to launch this newsletter? Often when we speak to clients we realize that we can still do better to inform them about our capabilities or latest technological developments. A newsletter is an efficient tool to reach a large share of our existing customer base and definitely one communication channel that should not be underestimated despite the increase of usage of social media. Also, through a newsletter we are able to provide a more detailed view on what we do, as compared to the press releases, for instance. We do really hope the newsletter will find a large interest among the readers, and we would welcome suggestions and comments at news@danieli-froehling.de MR KOTAS First of all I would like to assure you that the new company structure change will not impact adversely on the relationships with our customers or suppliers. Contrary, we used the opportunity to deploy smaller changes to the present organization aiming at further improving project execution and customer relationship management. The first change is the implementation of a Project Leader concept. Through this approach, we intend to ensure a high level of continuity and support covering both sales and project execution phases. The second change relates to the creation of a so-called Tech Team, beeing concerned with constantly improving line performances through technological studies and on-site process support especially during hot commissioning, or in the after sales phase. Besides, all customers will be able to continue to speak to their usual counterparts in Danieli Fröhling, and as such we will carry on serving them in the best possible way. We will also maintain our brand appearance and will continue to be known as Danieli Fröhling (or simply Fröhling, as we are known by many of our customers).

4 4 DANIELI Fröhling With no doubt, the creation of the Duisburg-based Centre of Competence (CoC) in 2015 focusing on Flat Rolling Technology for Steel, as well as the joining of our sister product line Danieli W+K in our premises in Meinerzhagen has opened opportunities for a closer exchange on technological issues and collaboration in the field after sales service, for example. Therefore, the decision to further integrate the German companies under a single legal entity, while maintaining the status of self-standing brands and product lines, was becoming obvious very quickly. Ultimately, we are convinced that the new company structure will further improve customer satisfaction levels. Can you finally let us know your expectations regarding trends for the next years and how Danieli Fröhling will adopt to these changes? MR KOTAS This year Danieli Fröhling will be completing 70 years in our business history and I am proud to contribute to its further growth and technological development. I am convinced that we are well positioned to participate in the growth we see in various sectors. One of the most important challenges always is to adequately respond to changing customer requirements with new technologies, solutions and services. In terms of market trends there are various sectors that are deploying solutions that will continue to require highest technological equipment and world s best performances. One area that is certainly driving innovation is the transport sector, where I expect to see more innovations finding their way into tomorrow s products. But also the recent recovery in commodities prices was long-awaited and we hope it will be sustainable. In general, innovation has always been at the heart of Danieli. All customers that we speak to are either deploying or at least having plans to deploy their individual Factory 4.0 solutions. Consequently, we are doing the same thing, with the aim to make our future products smarter, easier to service, with less down times and thus having lesser operational costs as compared to a traditional line setup. Especially our DANREACT technology is being deployed rapidly amongst clients, as it allows us to bring together a team of experts within shortest time and to provide failure analysis and support to any place of the world with live audio and video, connected in real time to the line s automation and CCTV camera system. Combined with the innovative DIGIMET Solutions offered by Danieli (such as the Q3Intelligence IT System for cutting lines), the world is poised to change even more rapidly. However, the demographic evolution and the lack of skilled personnel is something that will increasingly be a risk for our business. We need to reflect, adapt and modernize in order to remain an attractive employer also for Millennials or the so-called Generation Z that are right now in their teens and that will soon step into their first roles in the labour market. To do this, we must understand what motivates and drives our future colleagues, their values and expectations.

5 5 YOUR MANUFACTURER FOR tailor made solutions The difference between ordinary AND extraordinary is that little bit extra! ROLLING MILLS Our rolling mills are available in different design configurations from 2hi up to 20hi mills according to the required applications. SLITTING LINES Our slitting lines with advanced CNC-shears and braking units suitable also for sensitive strip surface provide you with cutting edge technology to be a leading strip producer in your market segments. SERVICE Our service department is available not only for spare parts supply but for enhancement and revamping of existing equipment as well. CONTACT US: ONLINE: danieli-froehling.de

6 6 DANIELI Fröhling JUST ANOTHER TELESERVICE? W hat if there is a technological problem on any one of your lines? What if there would be a complicated repair procedure and your maintenance staff is not quite sure how to proceed in the best way? What if you need a bigger conglomerate of know-how from various disciplines to solve a problem? Standard teleservice solutions allow you and the OEM of your machine to connect with each other and have a look into the automation. But how could these systems be used if there is a mechanical or technological problem? Danieli have developed a system called DANREACT a made-up word composed from Remote Assistance Centre and at the same time describing its intention: Danieli Reacts on your request. The idea behind this system is to support customers and site personnel already in the commissioning phase of a new line until the line is running stable and with the required performance. The second idea is to have the same system available on production lines also at a later stage of machine life. HOW DANREACT CAN SUPPORT YOU Saying it in simple words: this system will provide fast contact between operating personnel and a comprehensive team of specialists in our headquarter to solve problems that require a wide range of know-how. The expertise is therefore not limited to the persons who are on-site. Using modern technologies for video and data streaming, all available information can be collected and discussed in real time. This way, the system will support plant users and site personnel not only in commissioning phase of a new line but can be available also at a later stage of machine life.

7 7 But what is the difference between previous teleservice and DANREACT? Danieli Fröhling provide their new Operation Centre Remote Assistance system on site featuring real-time connection of on-site operational data and video monitoring of existing line cameras and additional helmet cameras into Danieli s OP Centres. Such Operation Centres are available in Germany at Danieli Fröhling, in Italy at Danieli Automation, and in England at INNOVAL Technologies. During the commissioning phase, DF and DA HQ can participate and support in real time on-site test, trials and productions with enlarged and specialized teams of: Techn. Office Media System Process Automation Design Workshop At agreed times, the on-site situation is transmitted in real time to OP Centres including automation data flow and live video screens (same as operators see it plus special view from our Supervisors on site with camera helmets). At request we can offer to keep the system on site after acceptance for fast and real-time support of production and maintenance. Of course, this system gives the customer full control: the line is open at customer s request only, with a dedicated intervention time frame, and every remote assistance session is recorded and can be later verified. Obviously, the system can also be installed at lines that have been supplied by other OEM s and not only by Danieli. Further advantages are: The expertise is not limited to the persons who are on site, but larger teams as required from various areas within Danieli, like designers, technologists and the like can participate. No needs for travel arrangements (especially important for sites that are far away from our location) like flight booking, visa arrangements, etc. Each session will be recorded, and a report describing the main points and solutions will be written and transferred to the customer The system is available to be bought, rented or leased. We would be happy to arrange a meeting with you where we can explain to you the technical solution, IT-resources needed on site and also the financial models in more detail.

8 8 DANIELI Fröhling DANIELI FRÖHLING S COLLABORATION WITH HENAN ZHONGFU GOES AHEAD 18th aluminium high-speed trimming line supplied by Danieli Fröhling in the last ten years THE COLLABORATION D anieli Fröhling and Danieli China recently commissioned Henan Zhongfu Industrial Co., Ltd. to design, supply and install, under supervision, a high-speed edge trimming line. This is the third order in a row received by Henan Zhongfu, and testifies to the deep and positive collaboration initiated by the parties in Henan Zhongfu Industrial Co., Ltd. is a subsidiary company of Henan Yulian Energy Group, a global aluminium-processing group with around 13,000 employees. With this new investment, Zhongfu will almost double its actual production capacity and focus to further strengthen its leading position in the can and foil stock market. This new line can process around 200,000 tpy of coils with a strip thickness from 0.1 up to 0.8 mm at a max speed of 1,500 mpm.

9 The line will be installed in the Gongyi production facility where Zhongfu already operates the two-strip slitting and trimming lines supplied by Danieli Fröhling few years ago. Electrical components and the Level 1/Level 2 automation system for the entire line will be supplied by Danieli Automation. The plant startup is expected by the end of SIGNED CEREMONY PHOTO: In the centre Mr Ma Wenchao, General Manager of Zhongfu high precision Alu processing Co., and Mr Kotas, M. EVP Danieli Fröhling. Attendees to the ceremony Mr He Huaiqin, Chairman of Yulian group and Mr G. Benedetti, CEO of Danieli Group.

10 10 DANIELI Fröhling HENAN MINGTAI ORDERS DANIELI FRÖHLING TRIMMING LINE H enan Mingtai Al. Industrial Co., Ltd. was founded in Gongyi, Henan Province in Today, Mingtai is a large-scale public company in China, processing aluminium sheet, aluminium foil and aluminium coil. With an annual capacity of some 650,000 tons, Mingtai Al. Industrial Co., Ltd. provides a wide range of flat products, such as material for electronic, automotive, construction, and packaging applications, for the domestic market as well as North America and Southeast Asia. SUPER FLEXIBLE line concept is the convincing factor for customer s final decision Mingtai recently started an ambitious expansion project, for which Danieli Fröhling was chosen to supply a high-speed trimming and slitting line. Danieli s scope of supply includes the complete mechanical system, from the coil entry side and in-line coil preparation process to side trimming/ slitting, scrap suction and recoiling. Furthermore, the auxiliary systems and electrics/automation are included in the supply. Direct connections from and to a high-bay storage shall ensure an optimized material flow. The line design reserves space for the installation of an electrostatic oiler as well. This might be needed if future development in the aluminium market will require in-line oiling for certain products. The process concept for this line not only allows trimming of a lighter gauge strip in high-speed mode (up to 1,500 mpm), but the operation also may be applied for intermediate trimming of material coming from the cold mill of up to 2.5 mm thickness.

11 11 The incoming strip can be as wide as 2,650 mm with a maximum coil weight of 28 ton. To cover this large range of strip cross sections (and thus also cover the required tension range), a special motor and drive concept will be applied. Electrical components and the Level 1/Level 2 automation system will be supplied by Danieli Automation. In addition to the standard trimming application, up to three finished strips may be slit from the incoming material. For this reason, a CNC trimming shear with eight individually driven and automatically adjustable knife heads is provided, and the line will be designed with two recoilers. The flexible concept presented to the customer by Danieli Fröhling s engineers which allows covering a wide portfolio of Mingtai s intended product range was the decisive factor for Mingtai s choice of Danieli Fröhling. At the same time, short conversion times when changing the cutting programme were essential to the end-user and are realized by use of our automatic CNC trimming & slitting shear solution that has meanwhile proven itself in various reference applications. Besides the technically convincing solutions, the customer also appreciated the close cooperation between our engineers and Mingtai s specialists during the development of the project: in several rounds of technical exchange meetings we jointly elaborated the best suitable solution for Mingtai considering our experiences gathered in other projects as well as the customer s detailed needs and wishes. We are sure that this spirit of cooperation will be continued during order execution and the start-up phase.

12 12 DANIELI Fröhling DANIELI GERMANY GmbH Danieli Fröhling Scherl Meinerzhagen Germany

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