CLEAN ENERGY FOR FUTURE GENERATIONS

Technical capabilities

PJSC TKZ “Krasny Kotelshchik” was founded in 1896. The Company started manufacturing the boiler equipment in 1932. The production facilities are located in an area of 108 hectares. Power engineering equipment produced at by the Taganrog Boiler Making Works is in operation at 80% of thermal power plants in Russia. At the present day, TKZ is capable of producing power engineering equipment with an aggregate annual capacity of 4 GW. For a period till 2015, it is planned to increase this capacity up to 5 GW. The Company’s location is favorable for shipping and transportation of Boiler equipment considering the following:

— TKZ is located 2 km from the Russian Federal Highway Moscow — Rostov — Mariupol;

— It is close to the Northern Caucasian Railway (via the Company’s connection railway line);

— There is an access to the Azov Sea available because of the Company’s position close to the Sea Port of Taganrog.

The share of steel products utilized in fabrication of the boiler equipment amounts to about 95% of the raw materials and pre-products.

To manufacture the boiler equipment, utilized are mainly steel rolled products, tubes & pipes, forged pieces and cast iron. The main portion within the range of the initial materials is covered by tubes & pipes to be processed in boiler-making.

Certified steel grades are used by the Company only because the design & engineering documentation requires utilization of certified steel grades & pre-products only which is specified as mandatory requirement.

The Company’s production structure includes divisions which are typical for a large-scale machine-building enterprise.

The main workshops are grouped on production basis as follows:

pre-production;

fabrication of steel structures;

fabrication of heating surfaces;

fabrication of shell-type equipment;