KZU HOLDING KZU HOLDING GROUPGROUP

YOUR RELIABLE PARTNER INYOUR RELIABLE PARTNER IN

CONSULTING CONSULTING ◊◊ ENGINEERING ENGINEERING ◊◊MANUFACTURE AND ERECTION MANUFACTURE AND ERECTION

OF STEEL STRUCTURES OF STEEL STRUCTURES ◊◊SUPERVISION SUPERVISION ◊◊ TRADINGTRADING

CONSORTIUM

CONSORTIUMCONSORTIUM

KZU HOLDING GROUPKZU HOLDING GROUPCOMPANY PROFILECOMPANY PROFILE

The company was found in 1992 in Prague, Czech Republic, as a hoThe company was found in 1992 in Prague, Czech Republic, as a holding lding structure in which a major owner is Dr. Eng. Marin Beloev. Understructure in which a major owner is Dr. Eng. Marin Beloev. Under his his management was found in 1966 the state company management was found in 1966 the state company ““Control and Control and welding deviceswelding devices”” in Bulgarian KZU in Bulgarian KZU –– Sofia, which was leader in the Sofia, which was leader in the welding engineering and welded structures till 1992.welding engineering and welded structures till 1992.

After 1992 most of the engineering personnel was transferred intAfter 1992 most of the engineering personnel was transferred into the new o the new company which is 100% private capital and becomes carrier of thecompany which is 100% private capital and becomes carrier of theexperience and the knowexperience and the know--how of the previous company.how of the previous company.

Our main experience is in the following fields: Our main experience is in the following fields:

Large scale storage tanks, pipelines and facilities in the petroLarge scale storage tanks, pipelines and facilities in the petrochemical chemical industry, petrochemical terminals, compressor stations for pipelindustry, petrochemical terminals, compressor stations for pipelines; ines; pressure vessels, Steel structures, pipelines and facilities of pressure vessels, Steel structures, pipelines and facilities of all types all types power stations; power stations;

Cement and limestone industry;Cement and limestone industry;Food processing industry including brewery;Food processing industry including brewery;Civil and industrial building with the systems Civil and industrial building with the systems FiligranFiligran and steel structures;and steel structures;Supervision and management of projects, as well as, quality contSupervision and management of projects, as well as, quality control, quality rol, quality

management of building and welding works.management of building and welding works.In the structure of the Consortium are working specialized produIn the structure of the Consortium are working specialized production ction

facilities with modern equipment for steel structures and apparafacilities with modern equipment for steel structures and apparatus tus following the highest criteria for quality.following the highest criteria for quality.

Certification:Certification:The enterprises and the personnel are certified according EN ISOThe enterprises and the personnel are certified according EN ISO 9001, TUV 9001, TUV

(HP0) SLV (DIN 18800(HP0) SLV (DIN 18800--7) for steel structures and pressure vessels and 7) for steel structures and pressure vessels and EN729, EN729,

The organization chart for functional commitment of the companieThe organization chart for functional commitment of the companies shows, s shows, that engineering, marketing and contracting is common for that engineering, marketing and contracting is common for Consortium. The pilot company is KZU GROUP Prague with branch inConsortium. The pilot company is KZU GROUP Prague with branch inSofia.Sofia.

Major personnel of the ConsortiumMajor personnel of the ConsortiumDescriptionDescription EmployeesEmployees

Design engineersDesign engineers 1212Engineers Engineers 2727Technical supervisorsTechnical supervisors 2424WeldersWelders 8282FittersFitters 158158Welding technologists and flow inspectorsWelding technologists and flow inspectors 1616

KZU Holding Group has high qualified permanent personnel, as shoKZU Holding Group has high qualified permanent personnel, as shown above, wn above, which is enlarged with manpower with general specialists if necewhich is enlarged with manpower with general specialists if necessary ssary for every given project.for every given project.

Six of the engineers have certificate for international welding Six of the engineers have certificate for international welding engineer (IWE)engineer (IWE)Four of the technologists have certificate for international welFour of the technologists have certificate for international welding ding

technologist (IWT)technologist (IWT)

KZU HOLDING GROUPKZU HOLDING GROUPCOMPANY PROFILECOMPANY PROFILE

Major ProjectsMajor ProjectsThe companies have completed projects in Germany, The Czech RepuThe companies have completed projects in Germany, The Czech Republic, blic,

Greece, Syria, Sudan and in Bulgaria for which our personnel havGreece, Syria, Sudan and in Bulgaria for which our personnel have a e a significant experience in building oil terminals, fabrication ansignificant experience in building oil terminals, fabrication and erection d erection of unique steel structures, technological facilities, compressorof unique steel structures, technological facilities, compressor and and pumping stations for transition pipelines.pumping stations for transition pipelines.

Production activityProduction activityCylindrical, above and underground ground storage tanks for bulkCylindrical, above and underground ground storage tanks for bulk liquid liquid

products. The company is fully equipped with machines for producproducts. The company is fully equipped with machines for production tion and erection of these facilities.and erection of these facilities.

Pressure vessels for storage of liquefied gasesPressure vessels for storage of liquefied gasesPipelines and equipment, pump and compressor stationsPipelines and equipment, pump and compressor stationsSteel structures for civil and industrial buildings.Steel structures for civil and industrial buildings.Technological pipelines.Technological pipelines.NonNon--standard largestandard large--scale steel sections for bridges. scale steel sections for bridges. Erection of spherical tanks for storage of liquefied gases.Erection of spherical tanks for storage of liquefied gases.Equipment for the food processing industry, such as grain silos,Equipment for the food processing industry, such as grain silos, reactors etc.reactors etc.Cement silos and structures for this industry.Cement silos and structures for this industry.KZU Holding Group has worked out welding procedures for welding KZU Holding Group has worked out welding procedures for welding of of

transition pipelines.transition pipelines.Diagnosis and evaluation of the remaining life of welded steel sDiagnosis and evaluation of the remaining life of welded steel structures and tructures and

facilities with Acoustic emission method.facilities with Acoustic emission method.Main activities of the consortium of the members Main activities of the consortium of the members 1. KZU GROUP LTD, Prague 1. KZU GROUP LTD, Prague –– legal representative of the Consortium, legal representative of the Consortium,

contracting , trading and manufacturing of steel structures and contracting , trading and manufacturing of steel structures and facilities.facilities.2. KZU HOLDING LTD. 2. KZU HOLDING LTD. –– Consulting, design welding engineering, Consulting, design welding engineering,

manufacturing of welded structures, erection of storage tanks, pmanufacturing of welded structures, erection of storage tanks, pump and ump and compressor stations, construction of transition pipelines.compressor stations, construction of transition pipelines.

3. SILOTEH 3. SILOTEH –– BUL LTD. BUL LTD. –– construction and equipment of projects for construction and equipment of projects for processing of agriculture products, grain silos and live stock.processing of agriculture products, grain silos and live stock.

4. TERA 4. TERA –– BM LTD BM LTD –– civil building of apartment and office houses, installation civil building of apartment and office houses, installation works in industrial projects.works in industrial projects.

5. TANK OIL LTD. 5. TANK OIL LTD. –– Equipment of petrol and gas terminal, distribution of Equipment of petrol and gas terminal, distribution of fuels.fuels.

PartnersPartnersLaboratory for NDT with xLaboratory for NDT with x--ray and ultrasonic test of welded jointsray and ultrasonic test of welded jointsTGT Consulting TGT Consulting –– design and supervision of transition pipelines.design and supervision of transition pipelines.For additional information we are at your disposal.For additional information we are at your disposal.

ReferencesReferences

19961996CHEMOPETROL AS CHEMOPETROL AS --Litvinov, Czech Litvinov, Czech RepublicRepublic

Storage tank of volume 3 Storage tank of volume 3 000 m3 with fixed roof, 000 m3 with fixed roof, cup and double bottom for cup and double bottom for waste waters.waste waters.

77

19951995--19991999ČČESKA RAFINERSKA ESKA RAFINERSKA ASAS Czech RepublicCzech Republic

Storage tanks with fixed Storage tanks with fixed roof, cup and double roof, cup and double bottom for: bottom for: -- -- 3 3 pcspcs. . volume 5 000 m3 volume 5 000 m3 --for fuel oilfor fuel oil-- 3 3 pcspcs. . volume 2 000 m3 volume 2 000 m3 --for fuel oilfor fuel oil-- 2 2 pcspcs. . volume 1 000 m3 volume 1 000 m3 --for fuel oilfor fuel oil-- 1 1 pcspcs. . volume 1 600 m3 volume 1 600 m3 --for fuel oilfor fuel oil-- 1 1 pcspcs. . volume 500 m3 volume 500 m3 -- for for fuel oilfuel oil-- 8 8 pcspcs. . volume 360 m3 volume 360 m3 -- for for petrol products and petrol products and pipe connections.pipe connections.

66

19961996OILTANKING/NOELL OILTANKING/NOELL in Gera, Germany.in Gera, Germany.

Two tanks with double Two tanks with double bottom of 25 000 m3 bottom of 25 000 m3 each. each.

55

19961996SUGAR RAFINERY SUGAR RAFINERY JULICH, GermanyJULICH, Germany

Two tanks for molasses of Two tanks for molasses of 35 000 m3 each and two 35 000 m3 each and two tanks of 3 000 m3 each.tanks of 3 000 m3 each.

44

19951995SUGAR RAFINERY SUGAR RAFINERY PFEIFER & LANGEN, PFEIFER & LANGEN, AppeldornAppeldorn, Germany, Germany

One tank of 40 000 m3 One tank of 40 000 m3 with double bottom.with double bottom.

33

19951995MERO MERO IKLIKL, , VohburgVohburg, , GermanyGermany

Tank farm, consisting of 3 storage tanks 40 000 m3

each and 1 tank 80 000 m3

with double bottom and cup all with floating roofs with pump station.MEROIKL, Vohburg, Germany1995

22

19921992CeskaCeska RafinerskaRafinerskaLitvinov, Czech Litvinov, Czech Republic.Republic.

Three underground Three underground storage tanks 6500 m3 storage tanks 6500 m3 each for gasoline.each for gasoline.

11

Year of Year of completioncompletionInvestor / ClientInvestor / ClientDescription of the ProjectDescription of the ProjectNoNo

ReferencesReferences

2005LUKOIL BULGARIA

Prefabrication of steel structures for 2 storage tanks for crude oil with single capacity of 50000 m3

19.

2004-2005

PETRODAR/RPJV

MELUT BASIN OIL DEVELOPMENT PROJEC design, fabrication of 7 x 52166 m3. Design of storage tanks for Field Production Facility & Central Processing Facility.

18.

2002ChemopetrolSA LitvinovFilling station15

2003-2004

BUTEC SAL, Lebanon

Storage tank farm 10x33 000 m3 for Banias Refinery Company16

2001ChemopetrolSA Litvinov

1 x 5000 m3 for BTX fraction in Litvinov, Czech Republic -13

2001JPM Ingenieurtechik, Germany

Kerosene storage tank 12000 m3, at Munich airport14

1998

Forum roof of the Munich airport center West

Forum roof of the Munich airport center West. Pipe trusses 25 m. long. See picture enclosed

12

1997-2002UkrainePumping stations for transitions

pipelines 17

1998Plena, BulgariaCement silos in 4x500 t. capacity Bosnia and Herzegovina11

1997Stahlbau Wolf Rosenhaim, Germany

Warehouse for BMW Wackersdorf, Germany10

1999-2000

CEPRO AS -Cerekvice nadBystrici, Czech Republic

Storage tanks with volume 10 000 m3, with fixed roof, cup and double bottom - 11 pcs. for - for petrol products with pipelines and pump stations

9

1997

CEPRO AS-Tremoshnanear Pilsen, Czech Republic

Storage tanks with fixed roof, cup and double bottom: with pipelinesand pump stations;4 Pcs. х 10 000 m3 for petrol products.

8

ReferencesReferences

PRODUCTION PRODUCTION CAPABILITIESCAPABILITIES

KZU Holding is a company with KZU Holding is a company with vast production experiencevast production experience,,which is based on the big which is based on the big number of projects that we number of projects that we have constructedhave constructed. .

Nowadays we have two own Nowadays we have two own production factories. The production factories. The strong competitive strong competitive environment and our exacting, environment and our exacting, partners and the short terms partners and the short terms for delivery require to be closer for delivery require to be closer to the client. Thatto the client. That’’s why we s why we have made our facilities in a have made our facilities in a way to be closer to the central way to be closer to the central European and Bulgarian European and Bulgarian clients.clients.

The factory for steel structures in The factory for steel structures in Varna Bulgaria is situated in Varna Bulgaria is situated in the Western Industrial zone of the Western Industrial zone of the city. We have very well the city. We have very well developed infrastructure and developed infrastructure and close connection to the port of close connection to the port of Varna, railway and road Varna, railway and road connections are available next connections are available next to the factory. The factory is to the factory. The factory is equipped with the brand new equipped with the brand new steel working machines which steel working machines which gives us the opportunity to gives us the opportunity to manufacture wide range of manufacture wide range of steel structures, vessels and steel structures, vessels and process equipment. The annual process equipment. The annual output of the factory could output of the factory could reach 13000 tons, depending reach 13000 tons, depending of the type of the structures. of the type of the structures.

The second factory is in the city of The second factory is in the city of ChomutovChomutov, Czech Republic. It , Czech Republic. It has similar capabilities as in has similar capabilities as in Varna.Varna.

3000 mm wide x 3000 mm wide x 400 mm high.400 mm high.

Shot blasting and Shot blasting and automatic painting automatic painting lineline

Lathes/milling Lathes/milling machinesmachines

Oxy fuel copy Oxy fuel copy cutting machinecutting machine

ESAB welding ESAB welding column with boomcolumn with boom

SAW machineSAW machine

SMAW machinesSMAW machines

MAW machinesMAW machines

Radial drilling Radial drilling machinemachine

Horizontal drilling Horizontal drilling machinemachine

12000x4500 mm12000x4500 mmOxy fuel portal Oxy fuel portal cutting machine cutting machine with CNCwith CNC

3100x16 mm3100x16 mmHydraulic guillotine Hydraulic guillotine shearshear

ØØ330 & 400 mm330 & 400 mmBand sawBand saw

3000x30 mm3000x30 mm4 rolls hydraulic 4 rolls hydraulic plate bending plate bending machine with CNCmachine with CNC

CapacityCapacityMain machinesMain machines

View from our factory in Varna.

Sights of our activitySights of our activity

CNC oxy fuel portal cutting machine CNC plate bending machine

General view of the factory in Varna

Despatch of storage tank structures at port Varna

Sights of our activitySights of our activity

Shot blasting line installed in August 2005Shot blasting line installed in August 2005

The shot blasting line ready for actionThe line can blast up to 18 m2/min

Sights of our activitySights of our activity

Forum roof of Munich airport center west. Pipe trusses with dia. 270 mm 25 m long

We are specialized in erection spheres

Cem

ent s

ilos

in B

osni

a &

Her

zego

vina

cap

acity

100

0 t.

Storage tank in Czech Republic V=10000 m3

Sights of our activitySights of our activity

With short terms for commissioning it is necessary to erect the shell and the roof simultaneously.The roof was lifted with 500 t crane

Storage tank farm in Vohburg, Germany 1x80000 m3 & 3x40000 m3

Storage tank farm in Czech Rep.11x10000 m3

General view of Al-Jabalyn CPF in Sudan – 4 x 52 0000 m3General view of Palouge FPF in Sudan – 3 x 52 0000 m3

Inspection and testing with Inspection and testing with Acoustic Emission methodAcoustic Emission method

The company posses equipment of The company posses equipment of the German company the German company VallenVallen for for nonnon--destructive testing using the destructive testing using the Acoustic Emission (AE) Acoustic Emission (AE) methidmethidAE is a powerful method for AE is a powerful method for evaluation of the behavior of evaluation of the behavior of materials under tension. These materials under tension. These materials materials ““reactreact”” under the stress under the stress and the AE system AMSYand the AE system AMSY--55 is is ““listeninglistening”” a eventual development a eventual development cracks, leak, frictions etc.cracks, leak, frictions etc.AMSYAMSY--55 is an improved AE system is an improved AE system and has the capability to detect all and has the capability to detect all kinds of flaws with its improved kinds of flaws with its improved sensitivity and the modern 32sensitivity and the modern 32--bit bit software.software.

With the AE system we can check With the AE system we can check the status of any steel structure, the status of any steel structure, pipelines, high pressure and high pipelines, high pressure and high temperature equipment working temperature equipment working under stress without shutdown. The under stress without shutdown. The system can continuously monitor system can continuously monitor and record the behavior of the and record the behavior of the equipment. After the reading of the equipment. After the reading of the recorded data we can localize the recorded data we can localize the problem with precision accuracy. problem with precision accuracy.

The application area is wide :The application area is wide :Power plantsPower plantsRefineriesRefineriesStorage terminalsStorage terminalsTransition pipelinesTransition pipelines

Inspection of reaction column for JET A1 fuel

during normal operation in LUKOIL BULGARIA

Contact infoContact info

Business address:Business address:1700, Sofia1700, Sofia12, Prof. 12, Prof. HristoHristo VakarelskiVakarelski strstr..BulgariaBulgaria

Tel: +359 2 962 39 48Tel: +359 2 962 39 48Fax: + 359 2 624 854Fax: + 359 2 624 854EE--mail: mail: office@kzuoffice@kzu--group.comgroup.comWEB: WEB: www.kzuwww.kzu--group.comgroup.comContact persons: Contact persons:

George Beloev George Beloev –– Marketing ManagerMarketing Manager