TGS PIPE is a South Korean ERW carbon steel tube manufacturer specialized in precision tube including both As-Welded and DOM tubing.

1. Introduction of T.G.S PIPE
TGS Makes the Pipe Valuable

2. TGS Makes the Pipe Valuable
Company Overview
Business Area
Market Position
Technology Development
Value Proposition
Appendix1. Size Range
Appendix2. Product Image of Weld Part Identification Tube
Table of Contents

3. Company Overview
● S.Korea based ERW steel pipe maker specialized in high-quality
tube production mainly for the automotive parts
● Production facilities are located in Pohang whrere Korean
steel production facilities are concentrated like Posco
● 3 tube mill lines are equipped with their own eddy-current testers
for assuring sound weldability
<<Size Range by Line>>

4. Business Area
● High-quality tubes including mother tube for cold-drawing and tubes for automotive application
occupy major portion of production
● Among the automotive applications, tubes applied to suspension parts, which especially
require rigorous quality management, are the main item
<<Production Volume by Application>>
Mother Tubes 61%
Suspension Parts 25%
Other Automotive Parts 6 %
Others 8 %
● Other applications in construction & fluid-carrying area include featured products such as
tubes for rock bolt, small hollow section under 50x50, lance tube, air heater tube, etc.
Monthly Production Volume : 5,000MT (‘14)

5. Market Position ① Domestic Market
● We occupy 20% of market share in mother tube market of Korea
<<Global Top 10 Car Production Countries in ‘13>>
<<Estimation of Market Share in Mother Tube>>
Tube Quantity per Car : 82kg
Car Production Total / yr : 4,500,000ea
x
=
Total Tube Quantity / yr : 369,000MT
Cold-Drawn Tube :
144,000MT
As-Rolled Tube :
225,000MT
Mother Tube Qty / yr :
152,000MT
Production
Yield 95%
① Market Volume Estimation
② Production Volume of T.G.S PIPE
Domestic Production Volume : 48,000MT/Yr
Mother Tube Production : 28,800MT/Yr
60.0%
20%
M/S
● Especially, positioned as a dominant player in Shock Absorber usage (80% of Hyndai Motors)

6. Market Position ② Overseas Market
● Shock Absorber : KYB (JP), Hitachi Automotive Systems (JP), Showa (JP)
● Suspension : Yorozu (TH), F-Tech (TH), PT. Gemala Kempa Daya (IND)
● Rubber Bush : Maruyasu (JP), CPR Goumu (TH, Subsidiary of Kinugawa rubber)
OEM Part Makers
● Japan : Toshida Kogyo, River Steel, etc.
● Thailand : Yulchon Pipe Thailand
● Malaysia : Metal Extrusion
Cold-Drawing Makers
※ JP = Japan, TH = Thailand, IND = Indonesia
● Lance Tube (ASTM A53A): U.S big wholesalers such as Se-Ah USA, RJB Wholesale
● Air Heater Tube (AS2556) : Australian big wholesalers
● Rock Bolt : KFC (Japanese ground tunneling solution specialist)
● Small Hollow Section : Tanaka Tekko Hanbai (#1 Japanese wholesaler)
Others
● We’ve targeted high-end market such as Japan first and improved our quality level
● With the experience in high-end market, we’re now enlarging our markets to the
countries where car industry is developing
● We both deal with as-rolled & cold-drawn tubes for realizing one-stop sourcing to part
makers by collaborating with Korean top-tier cold-drawn makers

7. Technology Development
● We’ve secured our core technologies by overcoming the hurdles requested from the
suspension part area which encounters problems derived from weight-lightening & cost down
① Adaptation of Advanced High Tensile Steel
<<Technological Development of Tubes for Suspension Part>>
② Welding Part Identification @ as-rolled Status③ Securing inner & outer surface quality
● Related Parts : Axle, Stabilizer
● Problem Definition
With the requirement of weight lightening, steel bar is
being replaced by tubes. Accordingly, tubes should
assure the same level of hardness (+600 MPa grade)
with steel bar.
● Technological Development
- Weldability control of advanced high tensile steel
such as Dual Phase and high-carbon/manganese
steel over SAE1030 grade
● Related Parts : Arms, Links
● Problem Definition
By adaptation of process automation, welding with other
parts is executed by robot.s In the course of welding,
welding part of ERW tube should be identified by them.
Also, identification carved on the tube surface should be
kept after cold-drawing process.
● Technological Development
- Knurling on the outer surface of tubes’ welding part
- Carving on the inner surface of tubes’ welding part
● Related Parts : Shock Absorber
● Problem Definition
With expansion of mono-tube type (outer case & inner
cylinder is unified), roughness control of inner and outer
surface of tubes should be assured simultaneously
● Technological Development
- Bead control technology within -0.1mm under cut
for securing inner surface quality after cold-drawing
- Developing hot-rolled coil assuring ㎛ level
roughness control with POSCO (POSP)

8. Value Proposition ① Product & Technology
① Assuring bead control within 0.1mm under cut
② Possible to produce both heavy & thin-wall small diameter tubes
③ Securing weldability of high-tensile steels
④ Rigorous weld defect inspection through eddy current tester
⑤ Welding part identification tube
● Mother tube for cylinder of shock absorber requires rigorous bead control
● We manufacture the item over 1,000MT/Month as mass production
※ Guarantee of under-cut (CPk >1.0 basis)  w/t 2.0 mm↓ : -0.1mm, w/t 2.0 mm↑ : -0.15mm
● Number of drawing path can be reduced if mother tubes with similar size exist
● We’ve developed ① thin-wall tubes through dealing with mother tube of cylinder usage and
② heavy-wall tubes through replacing seamless by ERW
※ Typical Size  ∮25.4 x t1.4 / ∮36.0 x t1.5 / ∮38.1 x t1.5, t1.2 / ∮70.0 x t1.4
∮31.8 x t6.8 / ∮34.0 x t7.3 / ∮38.1 x t7.0 / ∮48.6 x t7.3
● With requirement of weight-lightening and cost-down, adaptation of high-ten steel is getting expanded
● We’ve secured weldability control technology for high carbon/manganese steel such as
Dual Phase, SAE1030(STKM15A), SAE1040(STKM16A), SPHF590, etc.
● We do eddy-current testing at severe condition for all the products for protecting outflow of welding defect
※Typical inspection criteria : drill hole of test piece 1.0mm, signal level 80%
● As adaptation of process automation in tube fabrication is expanding, robots are replacing the manpower
● To make the robot sense the weld part, we carve the weld part during tube manufacturing process
※ Please see the appendix of this material for product image

9. Value Proposition ② Raw Material (Coil) Selection
● What is POSP?
POSP (POSCO Hot-Rolled Coil for Pipe) is the hot-rolled coil developed by Posco specialized in mother tubes for cold-
drawing. Its strictly controlled surface condition and thickness tolerance enables improvement of the quality and productivity
in cold drawing.
● Overview of POSP’s Quality Management Standard
POSP SAE
Dimensional
Tolerance
Width -0~+25mm -0~+25mm
Wall Thickness
50~75% of tolerance in JIS
(applying skin pass to all the
products of under 4mm w/t)
According to standard
(applying skin pass to products of
under 2.3mm w/t)
Shape
Camber, Wave, Telescope,
etc.
Tight management about wave
(applying skin pass to all the
products of under 4mm w/t)
Same rules are applied except
wave (applying skin pass to
products of under 2.3mm w/t)
Cross Section
(Profile)
Under 80㎛ about Crown Under 80㎛ about Crown
Chemical
Composition
wt%
Minimizing elements which hinders
weldability such as phosphorus,
sulfur
According to standard
Surface
Tight management about scab, blow
hole, scale, roll mark, coil break
(applying scarfing to all the products)
Same rules are applied except
fault types of right side
(scarfing is not applied)
○ Minimizing wall thickness deviation and wave by enforcing skin pass (2.3mm  4.0mm)
○ Minimizing impurities such as phosphorus (P), sulfur (S)
○ Rigid coil surface management by enforcing scarfing and inspection
<<Management standard comparison between POSP vs SAE>> Source : POSCO

10. Value Proposition ③ Quality Management System
● We acquired ISO 9001 certification @ 2010
● However, more important thing is making PDCA-cycle operate in quality
● For realizing “measurement  analyzing  improvement” cycle,
① process & related format should be defined clearly to record the result of event
② recorded data should be registered to clearly designed database system
● We’ve made our system visible through “process innovation first ,data system next” manner
<<Process & ERP Relationship Diagram>>

11. Value Proposition ④ Packing
● Packing is the final safe guard for guaranteeing the quality
● However, excessive packing results in rising of cost both for customer & maker
● We’ve developed +10 types of packing style considering various shipment conditions and cost
<<Example of Packing Style>>

12. Value Proposition ⑤ Total Sourcing Through Sound Ecosystem
● We’re ERW tube maker not having facilities for cold-drawing
● However, as a leader in mother tube market in Korea, we have transaction with +20 top-tier
cold-drawing specialists
● We’ve constructed one-stop sourcing system of as-rolled & cold drawn ERW tube for customers
through collaboration with top-tier cold-drawing maker in Korea
<<One-Stop Sourcing Transaction Flow>>

13. Thank you!

14. Appendix1. Size Range ① Round Tube

15. Appendix1. Size Range ② Hollow Section

16. Appendix2. Weld part identification tube
Carved
Artificially
Carved
Weld Part
As-Rolled
<<Outer Surface Type>> <<Inner Surface Type>>