March 27, 2006 — HYL Technologies, now part of Techint, has formed an alliance with Danieli for the direct reduction plant market.

This strategic alliance will allow the three Partners to join their own know-how and technology for the design and construction of gas based direct reduction plants, which will be presented worldwide under the new trademark Energiron.

The new alliance will enhance the resources and potentials of the Partners in the field of DRI, where tradition, consolidated technologies and innovation will combine to yield:

• A heritage of over 40 direct reduction modules, including the first commercial plant worldwide, which was built in 1957.
• A major steelmaker, the Techint Group, with annual production of over seven million tonnes of DRI and HBI.
• Patented direct reduction technologies of Danieli and HYL Technologies.
• The plantmaking capabilities and powerful international networks of Danieli and Techint.

The new trademark Energiron highlights the high energy content of the final product. The new technology is able to process multiple typologies of iron ore, including sulfur-rich ores. The process can utilize a range of reducing gases, such as natural gas, syngas and coke-oven gas.

The new alliance has been contracted for the turnkey supply of a steel complex to produce 1.4 million tonnes/year of long rolled products for General Holding Corp., in Abu Dhabi. Danieli signed the contract, with the cooperation of HYL Technologies and Techint.

One of the key plants for the General Holding steel complex is a new HYLIII^® module for the production of 1.6 million tonnes/year of DRI. This plant will also be equipped with the HyTemp^® technology, the state-of-the-art pneumatic system for the continuous transportation and charge of hot DRI into the EAF. This same system has been successfully in operation for more than six years at Hylsamex in Monterrey.