To: Our Valued Customers

Re: Hanna Steel’s Claims Policy (Effective 7-31-2006)

It is the policy of Hanna Steel Corporation to make every effort to provide our customers with steel coils and tubing products that will meet and hopefully exceed their quality and delivery requirements. As part of our commitment to our customers, every claim and complaint is carefully reviewed in order that steps may be taken to prevent its possible reoccurrence. It is crucial to our review process to have accurate information regarding the identity of the material and the severity of the non-conformity.

In the event that a defect or other issue is noted, the following information must be provided in order for a claim to be considered.

·         Customer Name

·         Description of the material

·         Hanna Steel Ticket numbers (or heat numbers for Tubing items)

·         The amount of material involved

·         A description of the defect (including actual measurements or other evidence)

Hanna Steel will make every effort to have disposition ready for each claim within 7 working days from the date that all of the data listed above is submitted. Claims may be submitted through your Inside or Outside Salesman or directly to a Quality Assurance Representative (please see the attached list). The specific details of our claims policy are attached for your review. Please feel free to contact us with any questions. Thank you for your assistance.

Respectfully,

Randy Kirkland, PE

Senior Metallurgist

Hanna Steel Corp.

Claims Policy – General

The following information must be provided in order for a claim to be considered:

Customer Name

Description of the material

Hanna Steel Ticket numbers or heat numbers

The amount of material involved

A description of the defect (including actual measurements or other evidence)

Please make note on the bills of lading if the material arrived wet or was incorrectly tarped. Digital photographs of the condition of the material are recommended.

Pictures, samples, test results, or dimensional measurements illustrating the defects must be submitted along with the claim documentation.

Hanna Steel must be notified on claims for nonconforming material within 120 days of the shipping date of the material. Claims for rust must be entered within 30 days of the shipping date of the material.

Material cannot be returned to a Hanna Steel facility without prior authorization from a Hanna Steel Representative. Material that arrives without that authorization will not be unloaded and will be returned to the customer at their expense.

Inside and Outside Sales Representatives may not authorize disposition of the material involved in a customer claim. If a disposition is needed on an emergency basis, please call a Quality Assurance representative or the appropriate Sales Vice President. The material may need to be returned to Hanna Steel for closer examination.

Hanna Steel cannot be held liable for consequential damages (i.e. downtime, processing costs, repair cost, etc…) and the total amount of the claim is limited to steel and freight costs only. All rework cost must be approved in writing by Hanna Steel prior to the start of the work. 

Claims Policy – Painted Items, Dry Lubes, Galvanized, and Flat Rolled

A minimum of 10% of the coils must be evaluated prior to rejecting the material. As per the industry standard 98% of a flat rolled coils and 96% of a painted coil are considered as prime material. The inner and outer laps of a coil are considered as packaging, so claims amounting to less than 2% of a flat rolled coil and less than 4% of a painted coil are not deemed valid.

The actual Hanna ticket numbers of the flat rolled coils involved is required (no exceptions). Hanna Steel reserves the right to refuse any claim when actual ticket numbers cannot be provided. A Corrective Action Request from the customer will not be honored without actual ticket numbers.

The dimensional tolerances for flat rolled items are based upon the requirements of A568, A588, A653, A1008, A1011, and/or pre-approved specific customer specification unless listed below.

Camber tolerances in coil form are .750” in 20 feet when the steel is not ordered as temper passed. The camber tolerance for temper passed material is .5” in 20 feet. All camber related claims must include camber measurements based upon measurements made on a 20’ section prior to roll forming. Hanna Steel reserves the right to refuse any claim when actual camber measurements cannot be provided.

The Flatness (i.e. shape) is defined as the maximum deviation from a horizontal flat surface. The Flatness tolerance for non-temper passed steels with a yield strength of 55 ksi or greater is .750” above a horizontal flat surface. The Flatness tolerance for temper passed steels with a yield strength of 55 ksi or greater is .500” above a horizontal flat surface.

Flat Rolled Steel is supplied to chemistry requirements and/or tensile property designations as defined by ASTM or pre-approved specific customer specifications. Failure of the steel to “make a part” is not considered as grounds for a claim unless the material also fails to meet the specified chemistry or tensile property requirements.

The thickness of a given Dry Lubricant is based upon a customer’s and/or the dry film manufacture’s recommendation. Claims for low coating weight must be verified by the submission of samples to Hanna Steel for testing. The average measured coating weight (based upon three readings in different locations) must be under the required minimum for the claim to be considered as valid. 

Claims Policy – Tubing

The actual ticket numbers of the tubing bundles involved is required. A stenciled heat number with the customer's PO number may be supplied in place of a ticket number. Hanna Steel reserves the right to refuse any claim when actual ticket numbers or a stenciled heat number cannot be provided. A Corrective Action Request from the customer will not be honored without this information.

Dimensional tolerances are based upon those listed in A500, A513, A847, or pre-approved customer specifications.

Hanna Steel does not guarantee stock tube items to “make a bend”. Guarantees for bending can be agreed to on special customer tube items after a review of the bending requirements by Hanna Steel personnel.

Hanna Steel does not guarantee telescoping, mandrel, or plug fits on stock tube items. Hanna Steel personnel can agree to guarantees for telescoping, mandrel, or plug fits on special customer tube items after a review of the requirements.

Surface imperfections such as handling marks, weld chatter marks, light die or roll marks, or shallow pits are not considered as valid reasons for rejection on stock tubing items. Claims for these types of surface defects will be honored if Hanna Steel accepts the order as Surface Critical”.

 

Hanna Steel Quality and Technical Contacts

Randy Kirkland, PE

Senior Metallurgist

Hanna Steel Corporation

3812 Commerce Ave

Fairfield, Alabama 35064

Office: (205)-783-8214

Fax (205)-783-8354

Jon Walton

Metallurgist/QA Manager Tuscaloosa

Hanna Steel Corporation

1701 Boone Boulevard

Tuscaloosa, Alabama 35476

Office: (205)-333-4446

Fax: (205)-333-4429

John Goodrich

Quality Manager, Pekin Division

Hanna Steel Corporation

220 Hanna Drive,

Pekin, Illinois 61554

Office: (309) 478-3813

Fax: (309) 478-3835

Tony Hayes

Claims Coordinator

Hanna Steel Corporation

3812 Commerce Ave

Fairfield, Alabama 35064

Office: (205)-783-8361

Fax (205)-783-8354

Roger King

Quality Assurance Leadman, Pekin

220 Hanna Drive,

Pekin, Illinois 61554

Office: (309) 478-3824

Fax: (309) 478-3835

Claim Investigation Form

Date of Contact:

 

Customer Name:

 

Customer Contact:

 

Product Description (including ASTM Standards):

 

Reason for Rejection:

 

Ticket Numbers involved (REQUIRED Information):

 

Quantity Rejected (pieces, footage or weight):

 

Name of Hanna Steel Corp. Representative who performed this Inspection:

 

Inside and Outside Sales Representatives may not authorize disposition of the material involved in a customer claim. If a disposition is needed on an emergency basis, call Quality Assurance or the appropriate Sales Vice President. The material may need to be returned to Hanna Steel for closer examination.

The actual ticket numbers of the material involved is required. A stenciled heat number with the customer's PO number may be supplied in place of a ticket number. Hanna Steel reserves the right to refuse any claim when actual ticket numbers can not be provided. A Corrective Action Request from the customer will not be honored without actual ticket numbers.

When material is returned for dimensional non conformity, actual dimensional measurements must be provided.