Strategic position

Scana maintains a high standard with regard to its production as well as a broad product range. Getting a foothold in
this industry is difficult since both production facilities and infrastructure represent major investments, and because it
is also extremely challenging to acquire sufficient levels of metallurgic and technical expertise.

Scana is one of few players in its area with integrated production facilities that include both melting/production of
steel, heat treatment and machining of components. Few of Scana’s competitors have their own steelworks and have to
buy billets and semi-finished goods in order to be able to offer finished steel products. This gives Scana a clear competitive
advantage, which the group will further develop.

During 2008 and 2009, Scana has invested more than NOK 200 million in the steel companiesto increase capacity, enhance
delivery precision, and reduce risk and production costs. In 2010, Scana has decided upon a larger investment project in
China to increase production of rolls and larger rings.