1. Induction Heating Technology for the Tube and Pipe IndustryAMM 2014 Steel Tube & Pipe Conference Topic 1: ATM Overview Topic 2: Induction Applications for Tube and Pipe Topic 3: Tube and Pipe Mfg. Cost Modeling , Electric vs. Gas Comparisons.

2. Ajax TOCCO Magnethermic (ATM)Over 1,000 employees in 20 worldwide facilities Staffed with Over 120 Mechanical, Electrical and Metallurgical Process Engineers Ajax Electrothermic Corp., 1916 TOCCO Inc., 1935 Ajax Engineering Corp., 1941 Magnethermic Corp., 1948 Ajax Magnethermic Corp., 1959 Japan Ajax Magnethermic Corp., 1965 Pillar Induction, 1966 American Induction Heating in 1968 Industrial Electric Heating in 1973 Lectrotherm Inc., 1989 Foundry Services, Gmbh 2000 INTECH, Gmbh 2000 3. Topic #1 ATM OverviewSteel Super HeatersCoreless Furnace SystemsHeat Treat Quench and TemperSteel 50% Bookings Foundry 20% Bookings Vertical Channel Furnaces 4. Topic #1 ATM Overview Upsetting SystemsBillet and Bar HeatersForging 10% Bookings Heat Treating 20% BookingsAutomotiveCV Joints Case Hardening 5. Corporate Formed in 1908 Sales approximately $1,200 Million (2011) Employees approximately 4,000 NASDAQ as PKOH Headquarters in Cleveland, Ohio 6. Diverse Services for Tube and Pipe Manufacturing 7. Diverse Services for Tube and Pipe Manufacturing 8. Direct Local Support for Tube and Pipe Manufacturers 9. Topic #2 Applications for Induction Tube and Pipe Manufacturing 10. Typical Tube and Pipe Mfg. Applications for Induction Heating (CECO) (CECO) (CECO) (PINES) (PINES) Heat Treat Quench and Temper of Tubing and Pipe Upset Processing for Heat Treating (in-line or pre-heaters) HF Seam Welding (New Product Release 2014) Weld Seam Annealing Full Body Annealing Pre-heating for Upsetting Sucker Rod Upsetting (Machines and Heaters) Sucker Rod Coupling Flame Spray Curing Swedge End Stress Relieving (Medium and Low Frequency) Tool Joint (Heat Treat, Tempering and Annealing) Curing & Pre-heating of Coatings Swivel Joint Bending (Machines and Heaters) Pipe Bending (Machines and Heaters) De-Bonding of Rubber (Round Stators) Continues Coiled Tube Processing Seamless Mill Billet Pre-heaters Seamless Finishing Taper Re-heaters 11. Complete Solutions for Heat Treat, Quench and Temper LinesFrom 2 40 tons an Hour in Complete ERW Systems 12. Complete Material Handling Solutions to Include Installation12 13. Upsetting Systems We offer a variety of upsetting systems. The most common utilized are the Channel and the Pigeon Hole systems as shown below. The coil efficiency is the primary difference. Pigeon Hole Channel System System (65 70%) (45 50%) Efficient Efficient13 14. Sucker Rod Upsetting 15. Solid State RF Flame Spray Curing of Sucker Rod Couplings 16. ERW Weld Seam Annealing Through advanced FEA analysis we can precisely control the heat effected zone of the seam annealing process.Finite Element Analysis video16 17. ERW Weld Seam AnnealingMovement 15 from coil centerWelded Seam15 18. Full Pipe Annealing / Normalizing Full Pipe 750 1500 kW 1000 Hz3 or more Coils in Parallel or Series / Parallel18 19. Stress RelievingMedium Frequency 1 10 kHz and Low Frequency 60 200 HZ Product Offerings. NEW PRODUCT RELEASE LATE 201419 20. Austenitizing (Tool Joint) Austenitizing for focused tool joint weld re-hardening. Re-hardening of tool joints is required after welding and machining for these processes change the base material hardness.1& 2-turn Induction CoilsWelded and Machined Tool Joint.20 21. Tempering Systems (Tool Joint) Tempering of tool joint heat effected zone. Multiple turn coils are used to temper the entire heat effect area from Friction Welding, Austenitizing and cutting and/or grinding.Multi-turn Induction Coils Open and EncapsulatedTempered Tool Joint.21 22. Coating Systems Induction heating provides a fast, efficient means of drying off surface moisture from pipes. Curing of water based anti corrosion coatings or epoxy can also be accomplished in-line versus in a furnace. Ajax has over 54,000 KW of installed Curing and Drying systems.TYPICAL TEMPERATURE RISE: PAINT/VARNISH CURING IS AMBIENT TO 200 F EPOXY (FBE) IS AMBIENT TO 500 F -22 23. Rubber De-Bonding / Residue and Moisture Removal After Water Jetting Rubber De-bonding for Round Stators to break the bond between rubber on the ID of the tube. Typical OD temperatures are 850 F with ID temperatures of 750 F. 24. Swivel Joint Complete Systems Bending machine capable of tooling for bending up to a 90 degree elbow, sizes range from 1 through 4 swivel joints. 25. Tube & Pipe Bending Typical working temperatures are between 1900 2100 F. a Typical power supply would be 500 3 MW in power. 26. Seamless Mills - (Between Roughing and Finishing ) In-Line Tapered Heat Re-Heaters & Ingot Pre-Heaters) 27. Hybrid Induction Pre-Heaters for Existing Gas Fired Furnace Lines 28. Hybrid Pre-Heaters for Existing Gas Fired Furnaces Lines. 29. Hybrid Pre-Heaters for Gas Fired Furnaces. (Austenitize) 18005.5 OD, 0.304 wall,Tube 15 TPH 1600 1400Temp (Deg F)1200 1000 800GAS FURNACE 600 400 200 0 050100150Time(Sec)200250300 30. Hybrid Pre-Heaters for Fossil Fuel Furnaces. (Temper) 14007 OD, 0.408 wall,Tube 15tph 1200Temp (Deg F)1000800GAS FURNACE 6004002000 050100150200250300350400450500 31. Topic #3 Technology Comparison of Fossil Fuel Furnaces to Induction 32. Competitive Technologies Induction to Fossil Fuel heating for the Manufacturing of Tube and Pipe Primary Operational Difference Efficiency Considerations Between Technologies Cost Comparison Worksheets Additional Considerations between Gas and Induction Technologies 33. Primary Operational Difference 34. Heating Efficiency Considerations Between Technologies Induction cost differential is typically offset with the efficiency average ofHeat Treating = 65% 75% for Induction 40% to 55% for a typical fossil fuel furnace. Tempering = 65% 75% for Induction 60 70 % efficient for a typical fossil fired furnace. Source = ASM American Society of Metals 35. Efficiency Analysis of Typical In-line Fossil Fired Furnaces Losses in a typical fossil fuel furnace.Source = U.S Dept. Of Energy - A source Book for Industry 36. Efficiency Analysis of Typical In-line Fossil Fired Furnaces Model for Heat Treating = 49% Efficient Recovery with a Recuperator = 68% Efficient Because of their high temperature, furnaces are large users of fossilfuel energy. The following simple diagram lists the main losses on a typical furnace. Flue gases usually represent the main source of wasted energy.49% 2% 1% (Barrel) 3% Open Ends Not Incl. 45% HT 32% Temper 11 - 19% Recovery 37. Efficiency Considerations Between Technologies Losses in a typical Induction System. 38. ATM Technology Comparison Worksheets 39. Case Study of Annual Operating Cost Comparison (2013) Max Utilization Scenario Gas - HTAvailable HoursSummary Sheet of Annual Operating Cost of Gas and Induction for 36 Tons/hr. Heat Treat Quench and Temper Lines.Page-1Min Utilization Scenario InductionGas - TemperInductionAvailable Hrs./ Yr.8760876087608760Planned Downtime1584158415841584Actual Operating Hours7176717671767176Demand Cost?2.52.5Power Factor?9000900086%97%60%80%6171.366960.724305.65740.836363636222168.96250585.92155001.6206668.83,440,000 $5,375,000$3,440,000$5,375,00021.45$22.19$26.01Utilization Historical Utilization Percentages Actual Operating Hrs. Based on utilization Design Tons per Hr. Annual Production TonsEnergy Cost Annual Operating cost Energy Cost Per Ton$ $15.48$ 40. Case Study of Annual Operating Cost Comparison (2013) GAS - HTInductionGAS - Temper InductionScale ProductionSummary Sheet of Annual Operating Cost of Gas and Induction for 36 Tons/hr. Heat Treat Quench and Temper Lines.Page-2Scale Production1.3%Cost per ton Lost Opportunity Cost$1.5%0.50%2777.11Yield lost to scale in Tons0.30% 751.762325.021033.34800$800$800 $800$ 2,221,689.60$ 601,406.21$ 1,860,019.20 $ 826,675.20Adjusted operating cost$ 5,661,689.60$ 5,976,406.21$ 5,300,019.20 $6,201,675.20Adjusted Cost per ton$$$Adjusted Operating Cost25.81Gas (W.Beam)23.92InductionCapital Investment Capital investment (2013 Quotes)$18,750,000.00 $ 7,150,000.00Installation Cost (Estimate)$ 3,131,073.00$1,897,620.00(Gas installation multiplier = .65) Total Investment (Estimate)34.19 $ENERGY COST ANAYLISIS $/MBTU $ $/kWh $ Power Factor$21,881,073.00 $ 9,047,620.00*Consider that gas process DOES requires electrical power for ancillary componentsDemand $30.01GasInduction 3.76 0.05 $0.05600090002.50 $2.50 41. Additional Considerations Cost Comparison in $/ton at Reduced Production Rates. Source = Induction heating source Book ASMThis figure outlines the cost per ton difference between the technologies at reduced throughputs. 42. Additional Considerations Controllability of InductionThe power supplies are controlled by IR temperature controller feedback throughout the line. Power is adjusted automatically by Power proportional controls. 43. System Controls with Computer Generated Simulations Line speed and power can be adjusted electronically during production in response to changing conditions / alloys.The line can loose utilities or be shut down and restarted as required with a minimum loss product. 44. AUSTENTIZING SYSTEM Design Simulations 36 tons/hr 20004.5 OD, 0.25 wall,Tube, 36 TPH 1800 1600Temp (Deg F)1400 1200 1000 800 600 400Tave200TcoreTsurf0 05101520Time(Sec)25303540 45. TEMPERING SYSTEM Design Simulations 36 tons/hr 14004.5 OD, 0.25 wall,Tube, 36 TPH 1200Temp (Deg F)1000800600400200TaveTcoreTsurf0 051015Time(Sec)2025 46. Additional Considerations - In-line Upset Tube and Pipe Uniform Heating Modeled two upset pipes, end to end 47. Additional Considerations Reduced Cost of Environmental Compliance with Induction With induction combustion emissions of a furnace heating systems are eliminated. The corporation sees the benefits of fewer incidences of emissionrelated penalties. -OR In Some areas getting permitting is difficult and expensive. 48. Additional Considerations Worker Comfort and Safety Induction reduces the exposure of operators to the direct heat of fuel fired furnace systems. The corporation benefits from more employee comfort and a reduction in heat related safety incidences. 49. End of presentation (Questions) By: Donald A. Gibeaut