1 Talley Plant History Greenfield startup 1984 Stainless steel mini-mill –State-of-the-art rolling mill –Modern heat treating & finishing facilities Continuous growth –Investment in equipment –Expansion of product offering Acquired by Carpenter in 1998

2 Hartsville Plant Details 220 employees 109 acres 400,000 square feet manufacturing space 30,000 tons/year finishing 70,000 tons/year hot rolling capacity

3 Hartsville Manufacturing Secure starting stock or “billet” from Reading melt shop – Caster Other approved sources – Static Cast from USAP Hot rolling of coil & bar products Heat treating & aging – 9 furnaces Acid cleaning lines – Coil & bar Round bar finishing - 10 finishing cells –5 Cold drawn coil to bar cells –5 Cold finished coil to bar & bar to bar cells CD Shape bar – 2 coil to bar, 1 bar to bar cell

4 Manufacturing Integration Fully integrated manufacturing (Reading, Shalmet and Hartsville) Reading caster Rolling mills Annealing Rod and bar acid cleaning Bar finishing

5 % Value Added Talley Brand

6 % Value Added of Talley Operational Value

7 Products Bar products –Rounds, hexagons, squares & rebar Alloys –Stainless steels grades 303, 304L, 316L, 321, 347, 410, 416, 2205, 17-4, 15-5 Carpenter grades upon request

8 Product Size Ranges Cold finished bar –.187” to 6.000” - Rounds –.250” to 2.000” - Hexagons –.250” to 1.500” - Squares Stainless rebar –#3 to #12 –Ribbed and smooth

9 Talley Customer Base All major independent service centers Our products reach all market segments –Aerospace, energy & defense –Medical, automotive, consumer, industrial

10 Advantages Of Talley As A Supplier Domestic producer Union free work environment Offer broad range of grades and sizes High reliability Short lead times Consistent product / quality Technical assistance Modern facilities Transportation System- Ryder Logistics

11 Quality Assurance Technical support Complete material certifications Mechanical testing  Tensile testing  Hardness testing  Grain size  Charpy impact  Micro and macro etch tests  Carbon / sulfur analyzer  XRF grade check  Eddy current and laser micrometers

12 Continuous Improvement Operational Excellence (OE) –Lean 5S: sort, set in order, shine, standardize, sustain –Operational Equipment Effectiveness (OEE) –Kaizan Blitz –Value Stream Mapping (VSM) –Six Sigma Certifications –ISO 9002 –TUV –LCS –Rolls Royce

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