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Receipt of Order for 2 units of Coke Dry Quenching Equipment (CDQ) from POSCO

May 20, 2003

TOKYO(May 20, 2003)-- In collaboration with POSCO Engineering & Construction Co., Ltd. (commonly known as POSCO E & C; Chairman: Deuk-Pyo Park) of South Korea, Nippon Steel Corporation (Representative Director and President: Akio Mimura) and Nissho Iwai Corporation (President and CEO: Hidetoshi Nishimura) have received an order for 2 units of Coke Dry Quenching equipment (CDQ) from POSCO (formerly known as Pohang Steel & Iron Co., Ltd.) of South Korea.(The units will be installed at the POSCO Gwangyang Works third and fourth ovens respectively.) 

In recent years, POSCO has been moving toward the environmental protection/management of the iron works and their surrounding areas. The construction of the CDQ equipment, for which the order was awarded, will be part of such movement. So far, a total of 3 units of Nippon Steel constructed CDQ equipment are in operation, of which 2 units have been installed at POSCO's Gwangyang Works and 1 unit at their Pohang Works. Their performance is highly esteemed, and has resulted in the latest order receipt.

CDQ equipment is one of the key products of the Nippon Steel Plant & Machinery Division. Recently, the company received consecutive orders to build a new CDQ unit for Wuhan Iron and Steel Company and a No.2 CDQ unit for Shougang Iron and Steel Corporation. In addition, Nippon Steel has experience in remodeling similar equipment in Brazil and Taiwan, which equipment was constructed and delivered by other companies. The Nippon Steel manufactured CDQ unit is equipped with a charging device to disperse coke, which technology is unique to the company, a feed water pre-heater, etc. The unit has a high cooling capacity, and enables efficient heat recovery with little cooling gas. Furthermore, through the fitting of a continuous discharge device, the unit excels in compactness and ease of maintenance operations.

With receipt of the latest order, Nippon Steel will have received orders for and built a total of 43 units of CDQ equipment around the world, including 37 new units and 6 modified units, and their performance over the past 5-years alone amounts to 9 new units and 6 remodeled units. Each of the units built by Nippon Steel boasts high operating rates, and has gained strong trust from customers, thus entrenching the company in the number one position among CDQ equipment suppliers. 

While needs are rising on a global scale for environmental measures against iron works and their surrounding areas, along with the demand for CO2 reduction and energy saving, it is considered that CDQ equipment will meet such market needs, and that requirements to introduce such equipment will follow accordingly. Nippon Steel and Nissho Iwai will continue to focus on expanding advanced technologies, including CDQ, which contribute to environmental protection, CO2 reduction, and energy saving. 

<Reference>
CDQ equipment uses inert gas, which circulates through a quenching chamber, to process quenching and cooling of red-hot coke that is dry distilled in a coke oven. The introduction of CDQ equipment has excellent benefits, such that it is 1) environment-friendly equipment as coke is quenched in the sealed quenching chamber, preventing the dust emission that is considered to be an issue in conventional wet quenching, and 2) the sensible heat of the red-hot coke is recovered and heat-exchanged into steam by a boiler, with the generated steam then used for power generation, and 3) the slow cooling of the red-hot coke in the CDQ equipment improves coke quality and stabilizes blast furnace operations.

[CDQ Equipment Capacity] 
* Capacity of the No. 3 & 4 CDQ equipment to be constructed at Gwangyang Works will be the same.

 1.Coke processing capacity:180 t/h
 2.Steam generation:103 t/h
 3.Electric power generation:29,700 Kw
 4.Turbine generator type:condensing turbine
 5.Schedule (plan)

<No.3> <No.4>
FOB initiation April 2004 August 2004
Red-hot coke charging April 2005 August 2005
Power generation initiation June 2005 October 2005

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