USA UPDATE
LATIN AMERICA UPDATE
DIGITAL MANUFACTURING
INNOVATIONS
An upbeat mood exists within the North American steel industry
Gerdau’s ‘internationalisation’ explained
Hi-tech steel production planning using SMS group’s MES systems
Four pages of new products and contracts
www.steeltimesint.com January/February 2019 - Vol.43 No1
STEEL TIMES INTERNATIONAL – January/February 2019 – Vol.43 No1
TWO PERSPECTIVES ON DIRECT REDUCED IRON STI Cover.indd 1 12.2018.indd 1 STI cover ad
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CONTENTS - JANUARY/FEBRUARY 2019
USA UPDATE
LATIN AMERICA UPDATE
DIGITAL MANUFACTURING
INNOVATIONS
An upbeat mood exists within the North American steel industry
Gerdau’s ‘internationalisation’ explained
Hi-tech steel production planning using SMS group’s MES systems
Four pages of new products and contracts
1
Picture courtesy of Midrex
www.steeltimesint.com January/February 2019 - Vol.43 No1
STEEL TIMES INTERNATIONAL – January/February 2019 – Vol.43 No1
2 Leader By Matthew Moggridge, editor, Steel Times International. TWO PERSPECTIVES ON DIRECT REDUCED IRON
STI Cover.indd 1 12.2018.indd 1 STI cover ad
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EDITORIAL Editor Matthew Moggridge Tel: +44 (0) 1737 855151 matthewmoggridge@quartzltd.com Consultant Editor Dr. Tim Smith PhD, CEng, MIM Production Editor Annie Baker Advertisement Production Martin Lawrence SALES International Sales Manager Paul Rossage paulrossage@quartzltd.com Tel: +44 (0) 1737 855116 Sales Director Ken Clark kenclark@quartzltd.com Tel: +44 (0) 1737 855117 Managing Director Steve Diprose stevediprose@quartzltd.com Tel: +44 (0) 1737 855164 Chief Executive Officer Paul Michael SUBSCRIPTION Elizabeth Barford Tel +44 (0) 1737 855028 Fax +44 (0) 1737 855034 Email subscriptions@quartzltd.com
4 News Industry news, astounding facts and figures and diary dates.
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9 Innovations The latest contracts and new products from the international plant builders and suppliers. 16 USA update Strong economy, strong opinions.
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35 Digital manufacturing Hi-tech steel production planning.
19 Latin America update Gerdau’s divestments. We look at the company’s ‘internationalisation’ strategy.
45 Perspectives: REIDSTEEL Pro-Brexit and extremely optimistic
Direct Reduced Iron 23 How much DRI is one billion tons? 27 Trends in H2-based steelmaking.
48 History Walking to work.
Steel Times International is published eight times a year and is available on subscription. Annual subscription: UK £195.00 Other countries: £270.00 2 years subscription: UK £350.00 Other countries: £485.00 ) Single copy (inc postage): £45.00 Email: steel@quartzltd.com Published by: Quartz Business Media Ltd, Quartz House, 20 Clarendon Road,
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Redhill, Surrey, RH1 1QX, England. Tel: +44 (0)1737 855000 Fax: +44 (0)1737 855034 www.steeltimesint.com Steel Times International (USPS No: 020-958) is published monthly except Feb, May, July, Dec by Quartz Business Media Ltd and distributed in the US by DSW, 75 Aberdeen Road, Emigsville, PA 17318-0437. Periodicals postage paid at Emigsville, PA. POSTMASTER send address changes to Steel Times International c/o PO Box 437, Emigsville, PA 17318-0437. Printed in England by: Pensord, Tram Road, Pontlanfraith, Blackwood, Gwent NP12 2YA, UK ©Quartz Business Media Ltd 2019
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LEADER
Things are hotting up in the Indian steel market
Matthew Moggridge Editor matthewmoggridge@quartzltd.com
It’s 2019, we’re about three weeks in, and already I’m wondering what will take place in the global steel arena as the new year unfolds. One online report claims that India is now the second biggest steelmaker in the world having taken over from Japan. It’s a close-run thing with India recorded as producing 96.92Mt during the first 11 months of last year and Japan dipping by 0.1% to 95.92Mt. China is still way ahead at a staggering 857.37Mt. The Indian steel industry is hotting up. Two large South Korean steelmakers, POSCO and Hyundai, are in talks with the Indian Government regarding investment in value-added steel production via joint ventures with leading Indian steelmakers. There is also news that India’s Prime Minister, Narendra Modi, wants to stoke local production of high-grade steel and reduce import dependence. Meanwhile, Indian steel giant Tata Steel and Jindal Steel and Power Ltd are both making the headlines: Tata Steel is seeking government support to develop the Subarnarekha port on the country’s east coast – and has increased its shareholding in Creative Port Development Private Ltd to 51% – while JSPL has shipped over
55% of a big rail order for Indian railways, several months ahead of schedule. ArcelorMittal’s bid for the 10Mt/yr Essar Steel rolls on as media reports criticise India’s bankruptcy code, some claiming that its teeth have been replaced by dentures, others saying it lacks ‘bite’. India faces more imports from China and Turkey, thanks to US president Donald Trump’s 25% tariffs, announced early last year, which are diverting steel destined for the USA to India. And if that’s not bad enough, some industry observers claim that Indian steel exports are ‘largely priceuncompetitive’ in world markets. The Indian government is not overly concerned about imports, according to online media reports. An article by Argus Media quoted an Indian steel ministry official who claimed that it’s not imports that are alarming, but India’s tariff barriers, which are ‘not very effective’. The future awaits us all as we paddle in the shallows of the new year. Indian steelmakers can only wait and see what transpires. Future Steel Forum Asia, New Delhi, 20-21 November. Further details, http://www.futuresteelforum.com
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4 NEWS IN BRIEF South Korean interest in India confirmed South Korean steelmakers POSCO and Hyundai are in talks with the Indian government with a view to investing in India. According to steel minister Chaudhary Birender Singh, the two companies are interested in manufacturing valueadded products in the country. It seems likely that joint ventures will be formed with Steel Authority of India Ltd (SAIL) and Rashtriya Ispat Nigam (RINL).
Trump’s steel slat wall can be breached A report in the Independent, a UKbased news website, claims that the use of steel slats in the construction of a border wall between Mexico and the USA might not be as secure as President Donald Trump thinks. Testing by the Department of Homeland Security (DHS) has demonstrated that it could be cut through with a saw. Critics have described Trump’s wall as ‘a very expensive vanity project’.
Ultra-thin steel from Taiyuan subsidiary Zhang Wanquan, a subsidiary of Taiyuan Iron and Steel (Group) Co. Ltd, has developed an ultra thin type of stainless steel that is 0.02mm thick. It can be torn like paper, according to an online report, and it is used in areas such as space, aviation, automobiles and computers. The company makes limited amounts of its ultra-thin metal – something like 24kt – and exports it to the USA, Germany, Brazil and Turkey.
ArcelorMittal France offers ‘Macron bonus’ Employees of ArcelorMittal France whose monthly salaries are less than or equal to EUR3,000 will receive an additional EUR500 at the beginning of February. Known as the ‘Macron bonus’ the aim of the extra cash is to improve citizens’ purchasing power.
NEWS
Converting steel mill gases into chemicals German steelmaker thyssenkrupp has produced ammonia from steel mill gases and is hailing the breakthrough as a further milestone in the Carbon2Chem project, which is being funded by the Federal Ministry of Education and Research (BMBF). According to thyssenkrupp, its latest news represents the first time anywhere in the world that steel mill gases, including CO2, have been converted into ammonia, a chemical used to make fertilisers to improve food production. Last year, thyssenkrupp produced methanol from steel mill gases, as part of the Carbon2Chem project, which is co-ordinated by the steelmaker, the Fraunhofer-Gesellschaft and the Max Planck Society, plus 15 other partners from industry and research. If implemented on an industrial scale, the process, claims thyssenkrupp, could make around 20Mt of annual CO2 emissions from the German steel industry commercially viable – and could be used in other CO2-intensive industries. Reinhold Achatz, head of technology at thyssenkrupp, commented: “Our Carbon2Chem concept has shown that it is possible to use steel mill gases for the production of various chemicals and thus achieve a circular carbon economy. Our goal is the large-scale industrial use of the technology.” Carbon2Chem is based on the fact that steel mill gases contain
valuable chemical elements, including carbon in the form of carbon monoxide and carbon dioxide (CO2), nitrogen and hydrogen. They are, therefore, suitable for the production of carbonand hydrogen-containing synthesis gas, a precursor for various chemicals. Examples include plastics and higher alcohols as well as ammonia and methanol. In the chemical industry, synthesis gases have so far been obtained from fossil fuels such as natural gas or coal. Carbon2Chem not only converts the CO2 contained in the steel mill emissions, but also saves the CO2 arising when synthesis gas is produced from fossil carbon sources. The first ammonia production took place in the Carbon2Chem technical centre in Duisburg, a pilot plant in which laboratory results are validated under practical industrial conditions using gases from regular steel mill operation. According to thyssenkrupp, this work forms the basis for transferring the technology to an industrial scale. The company has invested 33.8 million euros in the pilot plant on top of 8.5 million euros of BMBF funding for equipment and operation. Thyssenkrupp believes that the solution, which was developed in Duisburg, could be transferred to over 50 steel mills worldwide and is holding talks with interested parties from various regions on how the technology could be applied to other CO2-intensive industries.
History page error In last month's History page introduction we stated, wrongly, that Alexander Nasymth invented the steam hammer. We were wrong, it was James Nasymth, Alexander's son.
For more steel industry news and features, visit www.steeltimesint.com
For more global steel news, log on to our news website, www.steeltimesint.com
• In the USA, more steel is recycled than paper, plastic, aluminium and glass combined. Source: AISI.
• The US steel industry is currently recycling three-quarters of the steel coming from the packaging market, nearly 100% of the automobiles at end-of-life, and over 90% of steel from infrastructure, appliances and construction. Source: AISI.
• Over 66Mt of scrap is processed in North America for domestic and overseas recycling. When multiplied across the millions of tons of steel recycled by the steel industry each year, this process conserves enough energy to electrically power one-fifth of all homes in America. Source: AISI.
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FACTS AND FIGURES
DIARY OF EVENTS
Astounding Facts and Figures... • According to South Korean steelmaker Posco, global demand for lithium will increase from 250kt as of 2017 to as much as 710kt by 2025. The process may accelerate depending on the expansion of the electric car market. Source: KoreaBizWire.com
• Shenzen, a major city in China with a population of 12.5 million, has an almost entirely electric-powered taxi fleet. It was announced at the start of 2018 that 99% of the city’s 21,689 taxis were electric. Some 7,500 cabs in the city are still petrolpowered. Taiyuan, population 4.3 million, has had electriconly taxis since 2016. Source: tribtown.com
• In June 2018, plants operating with MIDREX® direct reduction technology surpassed the cumulative production total of one billion metric tons of direct reduced iron (DRI) products. Source: Midrex.
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February 2019
• With one billion metric tons of direct reduced iron it is possible to build 10,000 really big ships, such as a Gerald Ford-Class aircraft carrier. Source: Midrex. • A billion tons of DRI could supply enough iron to enrich a slice of bread (iron is used as a nutrient in enriched flour) for three meals a day for every human on earth (current population about 7.6 billion) for 250,000 years. Source: Midrex.
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• Nearly 100% of the steel industry’s co-products can be used: slag is used in cement production, road construction, fertilisers, hydraulic engineering and sea forestation. Source: worldsteel.
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• A basic oxygen furnace (BOF) can be charged with as much as 30% scrap. As most steel products remain in use for decades before they are recycled, there is not enough recycled steel available to meet growing demand. Source: worldsteel. • Steel makes up around 10-15% by mass of highspeed trains. The main steel components of these trains are bogies. Most freight wagons are made of steel. Source: worldsteel.
5: Modern Logistics for Indian Metals and Minerals Location: Shangri-la, New Delhi, India The logistics sector is changing fast across the globe and logistics performance is envisioned as the key to economic growth and competitiveness. This event looks at the nature of demand, type of players, use of modern technologies, on-time deliveries and other facets of logistics and the steel industry. Further information, log on to www.metalogicpms.com 12-14: 24thMexican Steel Forum Location: Sheraton Ambassador Hotel, Monterrey, Mexico. Organised by AMM. This is the 4th International Exhibition and Conference and it is a joint initiative taken by the Ministry of Steel, Government of India, and the Federation of Indian Chambers of Commerce and Industry (FICCI) Further information, log on to www.amm.com 26: 2nd Postgraduate Research Symposium on Ferrous Metallurgy Location: Armourer's Hall, London, UK. Organised by the Materials Processing Institute. Particularly relevant for doctoral students, universities, academics, researchers and industries involved in materials, metals and process improvement. Further information, email academy@mpiuk.com
March 2019
• Indian prime minister Narendra Modi plans to boost manufacturing in India to 25% of the economy by 2020 and create millions of jobs. Source: Bloomberg.
20-21: 12th Steel Tube & Pipe Conference Location: Hyatt Regency Houston Galleria, Houston, USA. Organised by AMM. There are many reasons to be optimistic if you work in the US steel tube and pipe industry, says AMM. US energy pipe markets have strengthened and drilling rig counts have remained at a robust level. This event addresses the issues affecting the industry. Further information, log on to www.amm.com January/February 2019
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NEWS ROUND-UP
Steel News Monthly Summary • The China Railway Taiyuan Group has announced that a new railway for coal transportation has opened in northern China. The railway runs 214 km between Shuozhou in Shanxi Province and Zhungeer in the Inner Mongolia Autonomous Region. The railway has an annual transport capability of 5.26Mt and serves as a major coal outlet for the mineralrich Inner Mongolia. The Shuozhou-Zhungeer railway is described as ‘a vital part of northern China's railway network for coal transport and will offer new opportunities for local industries,’ according to the China Railway Taiyuan Group. Source: Xinhua, 6 January
• US steel giant Nucor Corporation is planning to spend USD1.35 billion on building a new plate mill in the Midwest. According to a report by Reuters, the company is ‘taking advantage of federal tax cuts’ that have resulted in windfall gains for several other businesses. The new mill will be fully operational in 2022 and will produce 1.2Mt/yr of steel plate. Source: Reuters, 7th January.
• President Donald Trump is now talking about erecting a steel barrier instead of a concrete wall to stop illegal immigrants entering the USA. “We have to build the wall or we have to build the barrier,” Trump said. With US steel prices high at present, the wall will be pretty expensive. Source: www.news18.com, 8th January.
• A report by Platts claims that Tata Steel might be selling off its NatSteel assets to the Chinese company HeSteel. Operations in Thailand, Singapore and Vietnam are up for grabs, it is claimed, and both companies are ‘in discussion’ according to NatSteel president and CEO Ashish Anupam. There are rumours that Tata might want to retain a shareholding in its South East Asian units. Source: Platts, 8th January.
• A lithium plant being planned for Gwangyang, South Jeolla Province in Korea, is to be expanded following the signing of a Memorandum of Understanding between POSCO and the Australian company Pilbara Minerals. POSCO is investing USD8.9 billion in its lithium business over the next five years, it is claimed. Source: KoreaBizWire.com, 7th January.
• Jindal Steel and Power Ltd (JSPL) headed by Naveen Jindal, has shipped over 55% of its one lakh tonne of rails ordered by Indian Railways. An online media report quotes Naushad Ansari, joint managing director of JSPL, claiming that the Indian steelmaker has already shipped 54.3kt of 97.4kt of rail and is expected to complete the order in February – several months ahead of schedule. Source: The Hindu, 8 January. January/February 2019
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• In November last year US steel mills shipped 7.8Mt (net tons), a 4.2% decrease from the 8.1Mt (net tons) shipped the previous month (October 2018), and a 5.6% increase from the 7.4Mt (net tons) shipped in November 2017. Shipments year-to-date in 2018 total 87.4Mt (net tons), a 4.7% increase versus 2017 shipments of 83.5mt (net tons) for 11 months. Source: American Iron and Steel Institute, 10 January. www.steeltimesint.com
22/01/2019 08:42:45
NEWS ROUND-UP
• Gerdau Steel India Private Ltd has changed its name to Arjas Steel Private Ltd following an announcement earlier in the year from Gerdau SA stating that the company had agreed to sell its entire shareholding in Spanish subsidiary Gerdau Hungria KFT Y CIA Sociedad Regular Colectiva, including 100% of all operations and assets in India to Blue Coral Investments Holdings Private Limited and Mountain Peak Investment Holdings, which is owned by ADV Partners and affiliates. Source: Economic Times, 8 January.
• Thyssenkrupp’s Industrial Solutions business will supply ArcelorMittal with a new coke battery at its Tubarão steel plant, located in the Espirito Santo state in southeastern Brazil. The new coke battery will replace an existing one and will ensure the production of 600kt/yr of coke. Paulo Alvarenga, CEO of thyssenkrupp South America, commented: “This order is a further important milestone in the close and longstanding partnership with our customer ArcelorMittal.” Source: Thyssenkrupp Industrial Solutions www.steeltimesint.com
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Creditors of Chinese steelmaker Bayi Steel have agreed to swap debts owed them by the company for a stake in the business. Bayi, described as a ‘struggling flats and longs producer’ is part of the China Baowu Steel Group, which is trying to clean up the finances of its member companies. Source: Mysteel Global, 10 January.
• Nippon Steel & Sumitomo Metal Corporation has appointed Kosei Shindo as director and chairman of the business and Eiji Hashimoto as director and president. Both men take up their appointments on 1 April and were previously director and president and director and executive vice president respectively. Source: Nippon Steel & Sumitomo Metal Corporation, 10 January. • India steel giant Tata Steel is seeking State Government support to develop the Subarnarekha port in eastern India. The company has increased its shareholding in Creative Port Development Private Limited (CPDPL) to 51%. Source: Daily Pioneer.com, 7th January.
• It is claimed that the Indian government is approaching steelmakers such as POSCO and Hyundai Steel with a view to them partnering state-owned mills. According to a report by Bloomberg, Prime Minister Narendra Modi wants to ‘stoke local production of high-grade steel and reduce import dependence’. Source: Bloomberg, 9 January.
• US steel prices have reverted to pre-tariff levels according to the Financial Times. The newspaper quotes S&P Global Platts’ benchmark price for hotrolled coil and how it has dropped from USD920.00 a short ton last July to around USD725.00 at the start of the New Year. Source: Financial Times, 8 January.
• In an effort to reduce pollution, East China’s Shandong province has prohibited three of its key coal handling plants – Qindao, Yantai and Rizhao – from receiving ‘all types of coal deliveries’ starting 1 January 2019. It is thought that the notice is not yet legally binding as no penalties have been spelled out. Source: Mysteel Global, 7 January. January/February 2019
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INNOVATIONS
Fives supplies SDI’s new Columbus CGL
US steelmaker Steel Dynamics Inc (SDI) – one of the largest domestic steel producers and metals recyclers in the United States – is investing $140 million at its Columbus plant in Mississippi. The company is adding a new continuous hot dip galvanising line (CGL No.3) and has contracted global industrial engineering group Fives follow-
ing on from the company’s involvement in the upgrade of SDI’s CGL No. 2. The CGL No. 3 project represents the second contract awarded to Fives in 2018. SDI’s aim is to diversify its product portfolio. Currently, the company’s Columbus Flat Roll Division services the needs of automotive, agriculture, appliance,
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building and construction, energy, HVAC, lighting and machinery industries. The latest project includes the design, supply and commissioning of a complete 400kt/yr CGL No 3. The new line will be dedicated to producing unexposed automotive steel grades, as well as other commercial and specialised steel products. The scope of the project includes a complete design and supply of entry and exit coil handling sections, a degreasing section, a horizontal annealing furnace, hot dip galvanising and cooling equipment, a skin-pass mill and strip leveler, inspection, metallurgical assistance for different steel grades and types of coating, as well as construction and commissioning support. The new line is scheduled to be commissioned in the middle of 2020. According to Madhu Ranade, SDI’s vice president and general manager, SDI’s target is to increase value-added product capacity, diversify its product portfolio and increase profitability by investing in new projects and advanced technologies. “We look forward to again working with Fives. With the three lines in Columbus, Mississippi, and a fourth planned for the new mill in the south western region, SDI will become the leading supplier and a one-stop shop of coated products for customers throughout the southern region of the United States and in Mexico.” The partnership between SDI and Fives began in August 2018, when SDI contracted Fives to upgrade its continuous galvanising line (CGL No 2) at Columbus in order to increase production capacity. Fives deployed its DMS OptiLine speciality software to simulate the complete operation of a strip processing line. “We are proud to work with SDI to contribute to the success of their entrepreneurial-oriented business. Fives has significant references worldwide designing and supplying advanced technologies, including complete annealing, galvanising and coating lines in the USA, Europe and Asia,” said Guillaume Mehlman, president of Fives’ Steel Division. For further information, log on to www.fivesgroup.com
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INNOVATIONS
Liberty Speciality Steels’ ‘Infor-first’ tech policy Improved processes through the use of upto-date technology is Liberty Speciality Steels’ mantra now that it’s enlisted the services of business cloud software specialist Infor as a key technology supplier. The steelmaker has deployed Infor’s CloudSuite Industrial Enterprise and is planning an ‘Infor-first technology policy’ as the basis of a growth strategy following its separation from Tata Steel. The Infor CloudSuite Industrial Enterprise applications are structured to ‘help deliver a single ecosystem with end-to-end functionality, minimal customisations and simplified processes’, claims
Infor. They are designed to help improve efficiency and visibility of data around products and customers and will help Speciality Steel compete globally by contributing to consistent on-time, first-time product deliveries. According to Infor, Speciality Steels deployed Infor CloudSuite Industrial Enterprise as a multi-tenant cloud deployment in order to benefit from continuous software updates and to reduce the burden on internal IT staff to learn how to manage a new software environment or future upgrade projects. Chris Smith, CIO of Liberty Speciality Steels
commented: “There is a clear desire throughout the business to not only establish new processes but optimise how we do business. To do this we need to recognise the need to standardise on a single platform that is built for our industry and delivers relevant functionality via the cloud. That led us to Infor and this extended investment.” Simon Niesler, general manager, western Europe, Infor, said that speed of implementation is what puts Speciality Steels ahead of the game. For further information, log on to www.infor.com
MMK implements quality management system Russian steelmaker MMK has contracted MET/ Con, an SMS group company, to implement a quality management system. “Together, MMK, SMS group and MET/Con intend to set a milestone with this project and show how the location’s performance and quality levels can be improved thanks to total process and production transparency,” according to SMS group. MMK produces around 10Mt/yr of quality steel at its Magnitogorsk site in Russia. The steel is used by the construction and automotive industries. The implementation of SMS group’s product quality analyser (PQA) is part of MMK’s company-wide Industry 4.0 initiative designed to improve quality levels across all processes in Magnitogorsk. It is also part of a drive to stabilise production processes, improve on-time delivery performance and thus improve the company’s
competitive position. According to SMS group, ‘the PQA system is a holistic IT solution that operates on knowhow-based expert rules.’ The company says that, among other things, the software and database solution from Quinlogic GmbH in Aachen (also part of the SMS group) will also be used. The PQA system conducts an online analysis of process, production and quality data from steel production, through casting and rolling, right down to surface finishing and refining. The PQA expert rules, which can be freely configured and fed with specific know-how, take into account customer and order-specific information in the quality assessment process or when the material is approved for further processing, says SMS group. The software is modular and comprises a LogicDesigner for flexible rule adaptation, a quality assessment module, a web-based re-
porting system and a DataCorrelator, which also covers current topics such as big data analysis and artificial intelligence. Various intelligent mathematical evaluation methods, including pattern recognition options, identify and indicate correlations that can be directly used for process optimisation. For further information, log on to www.sms-group.com
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INNOVATIONS
Paul Wurth becomes Sunfire lead investor Electrolyser and fuel cell developer and manufacturer Sunfire GmbH has secured venture capital of EUR25 million and a new lead investor in the shape of Paul Wurth, an SMS group company. With its latest cash injection, Sunfire hopes to implement a number of commercial ‘multi-megawatt’ projects applying high-temperature electrolysis and ‘power-to-liquid’ technology. Having Paul Wurth involved means ‘a significant step’ in terms of new technological developments leading to green steelmaking and an opportunity to join the e-Fuels market. Sunfire develops technologies that enable climate-neutral fuels and gases for sectors that traditionally rely upon fossil energy sources, such as the steel industry. Green hydrogen is produced based on green electricity in an efficient high-temperature electrolyser, using waste heat generated by industrial processes.
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With the company’s latest product development, high-temperature electroylis not only reactivates water, but also CO2 and thus transforms combustion off-gases into clean feedstock, replacing fossil oil or natural gas. The hydrogen produced can be used directly or can be transformed in further process steps into CO2-neutral oil substitute e-Crude. In refineries it can be further processed into e-gasoline, e-diesel and e-kerosene (for aviation). Sunfire is currently building the first high-temperature electrolyser at megawatt scale. Sunfire’s CEO Carl Berninghausen said that the company’s latest financing round paves the way for the industrialisation of the company’s technology in validated pilot plants. “We experience daily how the interest for our solutions for energy transition is growing,” he said, adding that Sunfire had already ‘set a signal’ in the steel sector.
Berninghausen said that with Paul Wurth on board ‘we become a valuable partner for energy-intensive industries’ and will be able to expand its pure product business to service activities also in the field of projects. Paul Wurth’s CEO, Georges Rassel, said that collaborating with Sunfire ‘expresses our strategy to play a leading role in the upcoming transformation of the steel industry towards CO2-free steel production. “We would like to accompany our customers also in their journey to hydrogen-based hot metal production and support them to achieve climate protection targets,” he said. Existing Sunfire investors also participated in the latest financing round. For further information, log on to www.paulwurth.com
www.steeltimesint.com
22/01/2019 09:50:01
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Rugged machines, featuring Gradall’s world-famous, strong, telescoping tilting boom designed for maintenance on: • Basic oxygen furnaces (BOF) • Electric furnaces • Blast furnaces • Tap hole cleaning • Ladle maintenance • Torpedo car maintenance For information about distributors worldwide, contact:
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DRIVING INGENUITY
2/19/18 12:01 PM
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INNOVATIONS
Air hoists for tough environments from JDN The Profi series air hoists from J D Neuhaus (JDN) are designed for tough or hazardous operating conditions and are claimed to be safe, cost-effective and high-performance thanks to their ‘inherent design attributes’. Profi air hoists are claimed to be known for their robust design, a characteristic that makes them suitable for tough industrial applications, even in continuous working processes. “Safety features, such as 100% duty rating and explosion protection are an important advantage when working in hazardous areas,” claims JDN.”In line with customer requirements, various control systems are available, including remote controls, while for traversing loads, different trolley designs can be specified.”
The company argues that its Profi hoists ‘excel in places where safety is paramount’. Unlike electricity, compressed air does not generate sparks, while overload protection is available and is often provided as standard. What’s more, the chain and hook are manufactured from high-quality tempered steels with a breaking strength some five times the nominal load, it is claimed. According to JD Neuhaus, carrying capacities from 250 kg to 100 tonnes can be accommodated, with 4 or 6 bar pressure compressed air. As standard, sensitive, infinitely variable speed control allows the precise positioning of loads, a function that is supported by frequent switching and extended duty cycles. Simple operation, sound absorption and suitability for lube-free
operation are among further benefits. Because the Profi series is insensitive to dust, humidity and temperature (from -20°C up to +70°C) they also boast low maintenance as a primary attribute. In addition, the chain sprocket in the mid-section runs in dustproof, maintenance-free ball bearings, while the planetary gear, which features teeth made from tempered or hardened high-grade steel, is lubricated with long-life grease. Profi hoists are insensitive to high temperatures and dust.
For further information, log on to www.jdngroup.com
Danieli reports ‘an impressive start-up’ for 2019 After the start-up of the pickling, galvanising, batch annealing lines and temper mill, Italian plant builder Danieli has reported ‘an impressive start-up’ of a cold tandem mill, which is part of a new complex for Yildiz Lar in Izmit, Turkey. According to Danieli, the quality and productivity results were twice the contractual values, with PAC signed after two weeks. Four weeks after start-up, the productivity was three times the expected rate, claims Danieli. The new five-stand tandem mill is made up of January/February 2019
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six-high stands featuring Danieli OSRT shaped-roll technology and controlled by a Danieli Automation process control system. Danieli Automation’s D-REC automatic eccentricity compensation algorithm ensures precise and simple control of strip thickness, according to Danieli. “As a result, strip thickness tolerance is ± 0.6%, head/tail off-gauge length lower than four metres, and strip flatness less than 5lU. Coils with a final strip thickness of 0.20mm and widths of up to 1,550mm in a product mix
including DP600, DP1000, IF and HSLA, are produced, says the company. Since the beginning of the year, Danieli has announced a number of big steel projects, including work with Tata Steel in India, Voestalpine, Metalloinvest and Siam Yamato Steel of Thailand. The company was also responsible for a slab caster relocation project for Shandong Rizhao in China. For further information, log on to www.danieli.com www.steeltimesint.com
22/01/2019 09:50:03
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USA UPDATE
Strong economy, strong opinions A strong economy and tariffs sustain an upbeat mood within the North American steel industry – but there are problems surrounding steelconsuming industries, argues Manik Mehta*
THE USA’s continuing economic strength and the tariffs imposed by the Trump administration on imported steel, have sustained the upbeat mood that currently exists in the US steel industry. This could sum up the overall performance of the steel industry during 2018, but indicators suggest that the strong economic growth is likely to lose steam in 2019. Tariffs, a double-edged sword, are also hurting steel-consuming industries in the US, which depend on cheap imported steel. US exports to China have been affected. This is, particularly, true of agricultural exports and big-ticket items such as aircraft, automobiles and heavy machinery. The stock markets in 2018 went through turbulence and the economy faced headwinds. In the final quarter of the year, investors sought refuge in what are called ‘safe haven investments’, gold being a much-sought after item. The USChina trade war took its toll even though the trade war tensions of mid-2018 have, meanwhile, eased slightly. Nonetheless, it must be admitted that the 25% tariffs levied in March by President Donald Trump on imported steel have benefited US steel producers. Rising steel prices in the US have contributed to the profitability of domestic steel producers, including major companies such as US Steel Corp, Nucor Corp, Steel Dynamics and AK Steel Holding Corp, which have benefited from this development. The tariffs have also resulted in a rise in production capacity of US steel producers
while lowering imports. US steel industry capacity utilisation is presently around the 80% level, which is seen as a benchmark for the industry’s long-term viability. The American Iron and Steel Institute (AISI), the apex steel industry association, reports that US steel companies effected shipments of some 8.1Mt in October alone, up 4.6% compared to the earlier month and up 6% over the year-earlier period. Including October shipments, the steel industry shipped a total of 79.6Mt, up 4.6% over the year-earlier period. The AISI attributed the rise in domestic steel consumption to the tariffs imposed by Trump under Section 232. On the other hand, the data released by the US Census Bureau suggests that US imports of steel products fell some 11% during the 10-month January-October 2018 period compared to the year-earlier period. However, the US Chamber of Commerce has been warning that the tariffs were adversely impacting the economy, pointing out that every week the tariffs remained in place, US imports and exports were affected to the tune of $500 million; besides, jobs and farmers’ businesses were also affected. The Chamber called for the immediate removal of tariffs. It is an undisputed fact that foreign steel companies play an important role by supplying a wide range of speciality products that US companies do not manufacture; indeed, experts feel that US suppliers would not fill in the vacuum created in the supply chain. US steel-consuming industries have
blamed the tariffs for the higher costs, the squeeze on profits and even layoffs and production cuts. Critics also point out that substantial losses have resulted from retaliatory tariffs by trading partners. Harley-Davidson Inc, the leading motorbike manufacturer, for example, has faced problems in overseas markets, particularly in Europe where it has been slapped with tariffs, forcing the motorbike company to take its production outside the US. Also, Harley-Davidson, which also uses imported steel and aluminium, said that its costs of assembly in the US had increased by some $55 billion in a single year. Car-manufacturing companies constitute a huge market for the US steel industry, with one study projecting the demand for advanced high-strength steel alone will exceed $40 billion by 2023. The auto industry is spread across North America with supply chains that stretch across the United States, Canada, and Mexico. Steel made in Northwest Indiana, for instance, gets shipped to ArcelorMittal’s finishing lines in Calvert, Alabama, that serve some customers in Mexico. Unlike the predecessor NAFTA agreement, the new revised agreement – USMCA – addresses issues such as currency manipulation and state-owned enterprises, besides creating mechanisms for information sharing between the three member countries. “We believe these enhancements provide valuable improvements to the text of the original NAFTA that will help keep our manufacturing supply chains strong
* USA correspondent January/February 2019
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USA UPDATE
throughout North America,” the AISI president/CEO Thomas J. Gibson said. Gibson also recently defended the steel tariffs in a case brought by foreign steel importers challenging Section 232 at the International Court of Trade in New York. “We continue to strongly believe this case is without merit and the effort by importers of foreign steel to undermine the Section 232 relief through this case is bound to fail. Congress acted within its constitutional authority when it authorised the president to take action to adjust imports, when the Secretary of Commerce has determined that such imports threaten to impair the national security,” Gibson said. On the other hand, the Coalition of American Metal Manufacturers and Users (CAMMU), a trade association that represents a variety of industries, including the aerospace, agriculture, automotive, consumer goods, construction, defense, electrical, medical, and other sectors, had said it was a missed opportunity to end Section 232 tariffs of 25% on Canadian and
Mexican steel. CAMMU has said, reacting to the Section 232 tariffs, that thousands of manufacturing companies around the country had now to cope with price hikes, delivery delays and the outright unavailability of the steel and aluminium they count on to make their businesses operate. The trade organisation said the tariffs that have put US steelmakers back on the road to profitability and helped workers land new contracts that will raise their pay by more than 14% over the next four years, have hurt other industries that buy steel by driving up prices. Meanwhile, there are prospects of huge investments being made by ArcelorMittal and US Steel – there is talk of some $5.6 billion – in US steel mills. ArcelorMittal and US Steel in their latest round of collective bargaining with the United Steelworkers’ Union plan to invest this combined sum in their US operations, mainly, in and around the Northwest Indiana Lakeshore
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region. The USWU wanted guarantees of investment to safeguard the sustainability of local mills and long-term job security. US Steel pledged $2.5 billion for the four-year contract period, with a minimum of $750 million over the coming years to upgrade and revitalise its steel-production facilities at its Gary Works in Indiana, the company’s largest production plant. Without the capital investment, as Michael Young, the president of USWU Local chapter 6103 recently told journalists, the “mill’s equipment becomes stagnant and inefficient. Inefficiency and stagnation affect our competitiveness in a global marketplace.” Jobs depended very much on the health of the steel industry in Northwest Indiana, he said. ArcelorMittal USA, for its part, has pledged to invest at least $3.1 billion over the next four years. Both US Steel and ArcelorMittal have declined to comment to the media on the contracts. The steelworkers have voted to ratify both contracts, which were retroactively implemented from 1 September 2018. �
Measures rebar like never before regardless to the rolling speed High-tech light section measurement.
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January/February 2019
22/01/2019 08:50:13 07.01.19 09:15
LATIN AMERICA UPDATE
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Gerdau’s divestments In part one of a two-part article, Germano Mendes de Paula* looks at Gerdau’s internationalisation strategy and its recent divestments. Transactions carried out over the 2017-2018 period will be analysed in the second part of the article.
GERDAU started its strategy of internationalisation through the acquisition of Laisa (Uruguay) in 1980, which at that time had a 24kt/yr nominal capacity of crude steel. Although it was not very financially representative (implying low risk), the investment in Uruguay was important in that it allowed Gerdau to learn how to operate a plant outside Brazil. In fact, it was not until 1989, when it purchased Courtice Steel (Canada), that productive internationalisation became relevant to Gerdau. After that, the company bought several steel plants abroad, having entered the following countries: Chile (1992), Argentina (1997), the USA (1999), Colombia (2004), Spain (2006), Peru (2006), Mexico (2007), the Dominican Republic (2007), Venezuela (2007), India (2007) and Guatemala (2008). Gerdau was soon endowed with a high degree of internationalisation. In 2008, Brazilian carbon long steel operations accounted for 34.4% of net sales. The balance was distributed among North American operations (35.8%), Latin America (10.7%) and special long steel products (19.1%). As at least half of the production of special long rolled products took place outside the country, the degree of internationalisation rose to approximately 55% in 2008. Transition phase Gerdau substantially reduced its acquisition activities between 2009 and 2013, but was engaged in purchasing minority shareholdings in Gerdau Ameristeel in the USA, and Aços Villares in Brazil. It also bought a steel mill and a scrap processor
in the US. In all cases, the investments were concentrated in countries in which it already had operations. These years can be considered as a transition regarding corporate strategy priorities. More importantly, Gerdau started flat steel production at its Ouro Branco steelworks (Brazil) in 2013. It startedup a new Steckel mill in August 2013, with a capacity of 800kt/yr dedicated to the production of hot-rolled coil (HRC). A 1.1Mt/yr plate mill came on stream in July 2016 using a combination of Steckel and plate mill equipment. When Gerdau decided to engage in a product diversification in Brazil (entering into the flat steel business), it also opted to sell its assets abroad, as discussed below. Gerdau’s new phase of corporate strategy (including internationalisation)
began in October 2014, when it sold a 50% stake of Gallatin Steel to Nucor for a consideration of $385M (R$938M). In the transaction, ArcelorMittal also sold its 50% participation. The reasons that motivated Gerdau to sell its shares in Gallatin Steel – a 1.8Mt/yr flat-rolled minimill in Kentucky – are quite understandable. It was the only flat steel mill controlled by the company in the US. Gallatin Steel’s participation was inherited by Gerdau following its acquisition of the Canadian steelmaker Co-Steel in 2002, which was mainly a long steel producer. Gerdau acquired Co-Steel and as a consequence gained a 50% stake in Gallatin Steel (a flat steel producer).In other words, they targeted Co-Steel’s long steel operations, but also obtained an exposure to the flat steel market via Gallatin Steel. In addition, Gallatin Steel makes more
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Fig 1. Gerdau’s divestments, 2014-2018 (R$bn). Source: Gerdau
* Professor in Economics, Federal University of Uberlândia, Brazil. E-mail: germano@ufu.br January/February 2019
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LATIN AMERICA UPDATE
sense for a company with broad experience of flat steel mini-mill operations and thinslab-casting technology, such as Nucor. Anyway, the crucial issue was that for the first time ever, Gerdau decided to sell a steel mill. This was a change of paradigm, but at the time of the transaction, it was understood more as a punctual divestment rather than the beginning of a new corporate strategy. During the 2014-2015 period, Gerdau sold two downstream plants in the US and another in Spain. The company disclosed that, for this period, the amount of divestments reached R$1.1bn (Fig. 1). Consequently, it can be concluded that the transaction of Gallatin Steel was equivalent to 85% of the total. Divesting in 2016 Gerdau’s divestments in 2016 were R$1.3bn. The key transaction was the sale of Spanish company Sidenor to Clerbil SL, an investment group formed by local executives of the company, which was announced in May 2016. The transaction
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value was €155M (R$621M), with the possibility of receiving up to an additional €45M (R$180M) by the end of five years, depending on future business performance. Sidenor has 1.06Mt/yr crude steel capacity and is focused on special steels, mainly for the automotive industry. It has four plants spread over the Basque country, Cantabria and Cataluña. These were the only European industrial assets that belonged to Gerdau. Selling non-core assets It is important to stress that special long products can be considered within the company’s core business, but not necessarily Sidenor per se. According to JP Morgan bank: “The transaction is in line with the company’s strategy to sell non-core assets and focus on more profitable businesses, and we believe it is a positive step toward reducing the company’s leverage to more reasonable levels”. The aforementioned financial institution believed that the transaction price was fair.
BTG Pactual bank stressed the benefits to Gerdau from selling its Spanish assets: “The sale of Sidenor makes perfect sense to us (largely anticipated by the market) and falls in-line with the company’s strategy: selling non-core, lower return businesses. EBITDA loss from this transaction is minor, and it was one of the worst performing businesses in its specialty steel division”. Smaller divestments During 2016, Gerdau made other smaller divestments. It sold its 30% stake in the joint venture Corporación Centroamericana del Acero, a long steel producer in Guatemala and Honduras for R$238M. Clearly Holdings Corp, a Colombian coke producer, was sold for $196M. Several steel processing units and real estate in the areas of Perth Amboy, Sand Springs, Tonowanda, Indian Town and Little Rock, in the US, allowed for an additional R$184M. Gerdau also sold Colombian longs producer Yumbo, for R$119M to local producer Siderurgica del Occidente (Sidoc). This plant was offline at the time of the transaction. �
www.steeltimesint.com
21/01/2019 15:04:23
(
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Designed for Today, Engineered for Tomorrow™
23
DIRECT REDUCED IRON
How much DRI is one billion tons? In June 2018, plants operating with MIDREX® direct reduction technology surpassed the cumulative production total of one billion metric tons of direct reduced iron (DRI) products. To reach this production milestone, MIDREX direct reduction plants have progressed from struggling to produce five tons per hour during the start-up of the first plant at the former Oregon Steel Mills in Portland, Oregon, USA, in 1969, to now making nearly 7,000 tons per hour at locations around the world, 24-7-365. Robert Hunter* explains. WHAT would one billion tons of DRI look like? If it were stacked in a single massive pile, assuming an angle of repose of 33 degrees and a bulk density of 1.8 tons per cubic metre, it would make a stack over 600 metres tall and almost 1.9 km across (Fig. 1) … or almost 2,000 feet tall and 1.16 miles across. If we assumed all one billion tons were DRI pellets and we laid them in a line with the pellets touching, the line would extend four billion kilometres (about 2.5 billion miles) or 100,000 times around the world or to the moon and back more than 5,000 times. Another way of looking at it is if laid out side-by-side, one pellet deep, one billion tons of DRI would cover 48,000 sq km (nearly 19,000 square miles), which is larger than Switzerland. Of course, it
would be very difficult to place all those pellets side-by-side in Switzerland – they would all roll into the valleys. So, let’s say instead, larger than the Netherlands. What could we do with 1 billion tons of DRI? We could make: • About 900 million kilometres of common #4 rebar, which is enough to go around the world 22,000 times. • Enough one-metre wide auto body sheet to go around the world 3,500 times. • 10,000 really big ships, such as a Gerald Ford-Class aircraft carrier and a The Symphony of the Seas cruise liner. At 6,000 passengers per ship, it would take about two-and-a-half years for everyone on earth to go on a one-week cruise. • The reinforcing bar for the Burj
Khalifa (the world’s tallest building) in Dubai 23,000 times, 4,700 of the world’s longest suspension bridge (Akaishi-Kaikyo in Japan), 2,000 of the world’s largest dam (Three Gorges in China), and more than 120,000 of the Eiffel Tower, which was the world’s tallest structure from 1887-1930 … and happens to be built entirely of iron (because steel was too expensive then). • Last but not least, a billion tons of DRI could supply enough iron to enrich a slice of bread (iron is used as a nutrient in enriched flour) for three meals a day for every human on earth (current population about 7.6 billion) for 250,000 years. In historical perspective There is an iron bridge across the Severn River at Coalbrookdale, near Birmingham, in England (Fig. 2). The fabrication and
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Fig1. How 1 billion tons of DRI “stacks up”
* Consultant – DRI economics & applications www.steeltimesint.com
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DIRECT REDUCED IRON
MIDREX® PLANTS REACH PRODUCTION MILESTONE OF 1 BILLION TONS OF DRI PRODUCTS SINCE 1969 CHARLOTTE, North Carolina, USA – This month, plants operating with MIDREX direct reduction technology reached the cumulative production total of one billion metric tons of direct reduced iron (DRI) products. To reach the production milestone, MIDREX direct reduction plants have grown from making less than 1,000 tons during some of the first months of operation in 1969, to currently producing over 5Mt every month.
construction of this bridge is heralded as the initial event leading to the Industrial Age (around 1760 in Great Britain). In the early 1700s, world iron production was barely more than 100kt/yr. For most of the previous centuries, it had been less than one-third as much. Back then, iron was made using charcoal as the reductant and fuel. By 1800, world production of iron was about 150kt/yr; however, by 1820, it had surpassed 500kt/yr. The advent of tonnage steelmaking accelerated the growth of ironmaking by the early 1860s to 10Mt/ yr, leading to cumulative world ironmaking exceeding 500Mt million tons probably sometime in the 1880s. Back to the iron bridge at Coalbrookdale. Abraham Darby leased a blast furnace there in 1708. At first, he used charcoal like everyone else. However, he remembered seeing coke used as fuel for malting ovens when he was a youthful apprentice to a manufacturer of brass mills used to grind malt for brewing beer. The use of coke instead of charcoal greatly decreased the sulfur content of the beer. He successfully applied the same logic to ironmaking and found a much better fuel/reductant. Blowing in his blast furnace using the new process on 10 January 1709, Darby made enough iron to manufacture 81 tons of iron goods that year. Regrettably, he couldn’t find a market for his iron. It took 70 years and the creative mind of his grandson, Abraham Darby III, to find a use for ‘that much’ iron … he built the famous bridge across the Severn. The bridge weighed a little less than 385 tons. It took more than two years (177779) to cast the iron and erect the bridge. A modern MIDREX plant, like the ones being built for Tosyali Algeria in Oran and Algerian January/February 2019
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“We are pleased to announce this production milestone,” Midrex president and CEO Steven Montague said,” not only as recognition of the reliability of our technology and the fantastic achievement of those who operate MIDREX plants, but also because it comes in a year that saw DRI production grow by 20%.”
Qatari Steel in Bellara, Algeria, can make that much iron in less than an hour and 15 minutes. To one billion tons and beyond It took 38 years for MIDREX® plants to produce the first 500Mt of DRI but then only 11 more to achieve the second 500Mt. By comparison, it took humanity over 3,000 years to produce the first half billion tons of iron, beginning in the centuries before 1,000 BC. Total output by MIDREX plants in 2017 was 56.5Mt, up more than nine million tons over 2016. The first full year of operation by the voestalpine Texas HBI plant brought MIDREX iron production in the USA up by nearly 1.5Mt and start-up of the LGOK HBI-3 plant in Russia helped increase MIDREX iron production there by 1.3Mt. Large production increases were also seen in Argentina, Canada, Egypt, India, and Iran.
MIDREX plants were producing DRI products at a rate of nearly 60Mt/yr by the end of 2017, and there is sufficient capacity under construction to boost the production rate to 75Mt/yr by 2020 … and the acceleration is expected to continue. This means that the second billion tons of DRI will be produced in less than 13 years. Legend has it that Don Beggs conceived of the MIDREX direct reduction process while mowing his lawn in the late 1960s. I wonder if he imagined on that day in Toledo, Ohio, that more than 50 years later his “what if” idea would be heralded as one of the most innovative technologies in iron and steel industry history and his legacy would be a billion tons of DRI used to make millions of tons of steel that have provided the catalyst for emerging economies and the products that are essential for progress and prosperity. Just think what we can do with the next billion tons of DRI … �
Fig 2. Iron Bridge over the Severn River
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22/01/2019 08:56:47
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DIRECT REDUCED IRON
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Ternium 4M Plant in Monterrey, Mexico
Trends in H2-based steelmaking As part of the decarbonisation of Europe’s economy, there has been a trend in the steelmaking industry, towards hydrogen (H2)-based iron reduction as a long-term substitute for carbon-based processes, says Pablo Duarte* GLOBAL and especially European iron and steel producers need a paradigm change to be prepared for the future, to comply with environmental regulations, specifically on carbon footprint reduction, and to cope with raw material availabilities and final product qualities. ENERGIRON technology has been characterised by the inspiration of innovation. Specifically, the ZR scheme with its wide flexibility for using any energy source for direct reduction of iron ores, while keeping the same basic and proven process scheme configuration, offers the most adequate scheme for the direct use of H2. The following is a review of the benefits and advantages of current achievements and technological experience on H2 use for Carbon Direct Avoidance (CDA), as compared to other proposals. Historically, the steelmaking route based on direct reduction – electric arc furnace (DR-EAF) – has always been characterised by the use of H2, which is normally generated from natural gas (NG) through catalytic reformers. Since the hydrocarbon source is NG, H2 is produced in different concentrations, mixed with CO, depending on the oxidants ratio being used, i.e. CH4 + H2O = 3H2 + CO CH4 + CO2 = 2H2 + 2CO
Since the 1950s, HYL/ENERGIRON technology using reformed gas as a source of reducing gas, includes a conventional steam/NG reformer of the type employed by hundreds of DR and hydrogen plants. There are more than 40 HYL/ENERGIRON plants using this type of NG reformer. Typical operational characteristics for HYL/ ENERGIRON plants and for DR competing technology (Midrex) are shown in Table 1. In any case, as long as NG is used as the primary source of H2 generation, there will be CO2 as a by-product, which is emitted in the DR plant and the meltshop. It becomes evident that the only way to produce carbon-free H2 is from water
electrolysis and using renewable energy to fulfill the required power, thus eliminating the carbon footprint (CDA) for ironmaking and steelmaking (Fig. 1). For carbon-free H2 generation, there are different available electrolyser technologies – such as Proton Exchange Membranes (PEM) and Atmospheric Alkaline Electrolysers (AAE) – with units already in operation for high purity H2 and power consumption ranging from 4.8 to 3.8 kW/ Nm3 of H2. High Temperature Electrolysers (HTE) are also currently in use, but on a smaller scale and using steam and with a power consumption of 3.6 kW/Nm3 of H2. Currently, larger PEM and AAE modules ENERGIRON DR Plant
Carbon free power H2
EAF Renewable energy sources
High efficiency electrolyser
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Fig 1. Carbon-free steelmaking route based on ENERGIRON ZR process
*Commercial director, Tenova HYL www.steeltimesint.com
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Scheme with H2 > 90% vol. (as make-up) –
Scheme with partial use of H2 Fig 2. ENERGIRON ZR scheme with H2 use
are in the range of 4,000 Nm3/h of H2, sufficient for the operation of a DR module of about 40,000 t/a DRI. Replication of available modules will be proportionally required for larger DR plant sizes. 1. LONG LASTING EXPERIENCE WITH THE USE OF H2 IN ENERGIRON DR TECHNOLOGY 1.1. The ZR scheme for intensive H2 use The basic scheme configuration of the ENERGIRON process is the same regardless of the source of reducing gas make-up. Where H2 is concerned, the same concept applies. The only difference is that, for H2 utilisation higher than ~73% (energy) or ~90% vol. at the reactor inlet, the process scheme is simplified by eliminating the need for a selective CO2 removal system. For higher H2 concentrations, any carbon input to the system, via NG, along with other components, such as N2, are eliminated through the tail gas purge from the system, which is used as fuel in the gas heater (Fig. 2). As observed, the ZR scheme provides significant flexibility when compared with other DR technologies. With HYL/ ENERGIRON DR technology, there are some characteristics which makes this process scheme the most suitable for H2 use: • The ZR process scheme is inherently suitable for any reducing gas make-up, specifically H2. • H2 make-up directly replaces NG in the process. • Vast experience with high H2 concentration (~70% vol.) in HYL/ ENERGIRON plants. Since the 1950s, a number of HYL/ENERGIRON plants have used reformed gas as a source of reducing gas from a conventional steam/NG reformer. January/February 2019
DRI tenova.indd 2
Parameter related to H2
ENERGIRON
Other DR technology
H2O/C ratio in NG Reformer
2.0 – 2.5
1.5
H2/CO ratio in reducing gas
4 - 5
1.7
~70%
~55%
%H2 to reactor (% vol.) Table 1. Characteristics of reformed gas in DR technologies
In terms of energy consumption, the impact of H2 (figures as % of total energy input), compared with NG is indicated in Fig. 3. As observed, there is a saving in energy consumption of ~2.0 GJ/t in the DR plant, since H2 is already available and there is no need of NG reforming; however, there is no credit of %C in DRI. 1.2. Demonstration/pilot plant experience with ~100% H2 use In addition to the vast industrial experience using H2 in reformed gas, in the 1990s Tenova HYL carried out extensive tests at a pilot plant (Fig. 4) with ≥ 90% (vol.) H2; producing H2 from reformed gas from an industrial DR plant by water-gas shifting and CO2 removal. The demonstration/pilot plant at Hylsa Monterrey had a production rate of 36 tonnes of DRI/day with full flexibility to produce CDRI and HDRI for HBI production, and HDRI for direct pneumatic transport to an adjacent pilot plant EAF. This plant also included full capability for synthesis of all types of reducing gases; from 100% H2 to 100% CO, including reformed gas, typical COG and gases from coal gasification. In fact, the ZR scheme was developed and demonstrated in this facility during the 1980s. The experimental campaign included 15 different process conditions, depending on the DRI type and quality to be achieved. • For CDRI conditions, some minimum
required amount of NG was injected in to the conical/cooling zone of the reactor. Metallisation was 94%-96% and %C was ~1.0%. H2 was controlled in ~90% vol. • For the HDRI, HBI was produced to prevent fast re-oxidation due to low %C. Metallisation was 94%-96% and %C was obtained between 0.2% and 0.8%, being the latter for the condition of some NG injection to the reduction circuit. H2 was also controlled in ~90% vol. These tests provided all necessary information to define: • Process and design parameters, mainly related to reducing gas optimised flow-temperature correlation. • DRI quality in terms of metallisation and carbon content. • Optimisation of operating pressure, reactor L/D ratio, solids residence time (τ), to consistently achieve the DRI quality, determination of fluidisation factor (ƒ) to ensure proper gas velocities and distribution through the solids bed, among others for the proper gas distribution and design of the process and equipment for H2utilisation. These campaigns at demonstration/ pilot plant tests with high-H2, sustain the fact that ENERGIRON technology is already available for the use of 100% H2, when needed. All required data for design and operation under this condition is available and can be directly applicable to any existing and/or new DR plant installation. www.steeltimesint.com
22/01/2019 09:10:45
Tenova, a Techint Group company, is a worldwide partner for innovative, reliable and sustainable solutions in the metals and mining industries. We work alongside our client-partners in metals and mining industries to design and develop innovative technologies and services that improve their business today and tomorrow as well. We are a team of more than three thousand forward-thinkers that share the long-standing principles of our Tenova S.p.A. Via Gerenzano, 58 21053 Castellanza, VA - Italy tenova@tenova.com www.tenova.com
industrial group and understand our partners’ needs. We are professionals who take a proactive approach to problem solving in every business area in which we operate, and are forever seeking new, cost- and energy-efficient ways to resolve the challenges our clients are facing.
30
DIRECT REDUCED IRON
NG (GJ/tDRI 100% H2 (HDRI)
H2 (GJ/tDRI C Energy credit (GJ/tDRI)
100% NG (HDRI)
-2.0
0.0
2.0
4.0
6.0
8.0
10.0
Energy consumption (GJ/t DRI) Fig 3. Energy consumption figures for NG (3,5%C) and H2 (0%C) – % energy input
2. THE TREND FOR H2-BASED STEELMAKING In general, Europe is leading the trend towards the intensive use of H2 for steelmaking. A major step, as described in the European Steel Technology Platform (ESTEP) Strategic Research Agenda, is the initiative on ultra-low carbon future European steelmaking. Specific futures aspects of ESTEP will cover issues related to H2 supply, use and transport as well as energy storage in general. Some projects oriented on this target are: • ThyssenKrupp with the Carbon2Chem® Project aimed at using CO2 emissions from steelworks and surplus energy from renewable sources for chemical production. • Voestalpine, Siemens and Verbund for the H2FUTURE Project, building a pilot facility for green H2 at Linz. • SSAB, LKAB and Vattenfal with the HYBRIT initiative, based on H2 for steel production. • Salzgitter for the SALCOS project study with high-C DRI as feed to BF and EAF (replacing BOF) in combination with the GrinHy project to generate H2 via reversible, high-temperature electrolysers through renewable energy, to be used for DRI production. HYBRIT was established in 2016 with the aim of replacing coking coal, traditionally needed for ore-based steel making, with hydrogen, a fossil-free steel-making technology, with virtually no carbon footprint. HYBRIT set a specific target toward the construction and operation of a pilot plant with the aim of testing hydrogen as a reducing agent in the production of Direct Reduced Iron (DRI). Tenova was contracted by HYBRIT to supply its DRI solution for the world’s first January/February 2019
DRI tenova.indd 3
fossil-free steel-making technology with virtually no carbon footprint in Sweden. Thanks to the unique characteristics of its process and its specific expertise in direct reduction with high H2 content, Tenova HYL was the perfect fit for the HYBRIT project. The Tenova company, based in Mexico, was chosen thanks to the manoeverability of the production of DRI, adding unique operational flexibility. Moreover, experience gained in nearly 60 years of DR technology development and the references of more than 40 DR modules in operation makes Tenova HYL a reliable partner for this innovative process. The pilot plant will be located in Luleå, Sweden, and is expected to begin operations in 2020. The SALCOS (Salzgitter Low CO2 Steelmaking) project, a study initiated by Salzgitter AG together with Tenova and Fraunhofer-Gesellschaft (FhG) in 2015, is addressed to analyse the capabilities of already existing technologies to reduce greenhouse gas emissions, to investigate implications on integrated steel works and to demonstrate the possibility of generating a significant contribution towards carbon footprint reduction. A major result of the SALCOS study was to demonstrate the possibility of following stricter CO2 reduction targets in Europe after 2030 by realising a stepwise transformation process of integrated iron and steel works towards direct reduction and electrical energy-based steelmaking processes. This transformation process, realised in subsequent steps, including H2 use, reduces the environmental impact in terms of CO2 emissions up to around 95% depending on framework conditions. This stepwise transformation process requires considerable investment in new plant equipment adjustments to comply with the
given regulatory and economic framework and to avoid unreasonable operating expenses (OPEX) due, for instance, to taxes on electrical energy (EEG allocation). These conditions have to be adapted first in order to facilitate the realisation of the transformation project. 3. CHALLENGE WHILE MELTING H2-BASED DRI IN EAF EAF operations to melt DRI are based on certain DRI characteristics for reducing remaining FeO and promoting foaming slag. The optimum %C in DRI is based on the amount of DRI in the mix feedstock for a certain steel quality, specific cost scenario, among others, but the trend is the use of High-Carbon DRI due to the additional chemical energy input to the furnace. H2-based DRI will mean feeding low or 0%C DRI, which will require particular EAF melting practices. Fact: a minimum carbon content in DRI or carbon injected separately is required for EAF steel production operations. Options: 1) To produce DRI from high Fe content premium iron ores, with the optimised/ highest metallisation (~96%), thus minimising the FeO content. Considering the stoichiometric requirements for reduction of remaining FeO and minimum melting needs, the %C in DRI will be ~ 0.8 – 1.2%. This will mean NG injection to the DR plant, which is possible for the ENERGIRON process operating with ~90% (vol) H2, as already demonstrated in our pilot plant. 2) To produce DRI from selective iron ores’ chemical composition with 100% H2 and 0%C, which will be fed to an EAF, requiring a minimum carbon injection of 12-15 kg C/tLS, particular melting operations and slag engineering practices. www.steeltimesint.com
22/01/2019 09:10:45
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32
DIRECT REDUCED IRON
Both options are workable, but in terms of overall CO2 emissions related to the integrated system DRP-EAF, while option 1) will result in emissions of about 150 kg CO2/tLS, option 2) will represent just about 50 kg CO2/tLS. In terms of overall decarbonisation, Option 2) would be the preferred choice for H2-based steelmaking. 4. ECONOMICS FOR H2-BASED IRONMAKING In terms of OPEX, producing hydrogen by water electrolysis will incur the direct cost of the connection to the power grid. Considering ~4.0 kWh/Nm3 H2, the energy consumption for DRI, based on ENERGIRON ZR technology, will be ~3.08 MWh/t DRI. Since green H2 will be produced from renewable energy, the analysis will be based on such power costs. The point is that, due to the required high power consumption for H2 generation, the energy costs are also high. Currently, in Germany, for example, the power from renewable sources has dropped to below €0.05/kW, which would mean an equivalent of about $16/ GJ for DRI production, which is still high. However, costs related to water make-up, CAPEX of electrolyser modules, H2 storage and transport (when applicable) and CO2 emissions targets, with corresponding credits, shall also be taken into account in the cost equation. According to the International Renewable
Energy Agency (IRENA), Renewable Power Generation Costs in 2017, electricity from renewables will soon be consistently cheaper than from fossil fuels. By 2020, all the power generation technologies that are now in commercial use will fall within the fossil fuel-fired cost range, with most at the lower end or even undercutting fossil fuels. Record low auction prices for solar photovoltaic energy (PV) in 2016 and 2017 in Dubai, Mexico, Peru, Chile, Abu Dhabi and Saudi Arabia have shown that the levelised cost of electricity (LCOE) of $0.03/ kWh is possible from 2018 and beyond, with the right conditions. By 2019, the best onshore wind and solar PV projects will be delivering electricity for an LCOE equivalent of $0.03/kWh, or less, with concentrated solar power (CSP) and offshore wind capable of providing electricity very competitively. Increasingly in the future, many renewable power generation projects can undercut fossil fuel-fired electricity generation, without financial support. A competitive green H2-based DRI production scenario, based on the efficiency of current electrolysers and – without CO2 credits – the electricity from renewable sources should be ≤ $0.03 /kWh. CAPEX must be significantly reduced and this may be possible over the coming years. 5. SUMMARY In summary, the current status for intensive use of H2 is as follows:
• Hydrogen with up to ~70% vol. has been used on an industrial scale in HYL/ENERGIRON plants with an external reformer of NG over the past 60 years. • Extensive demonstration plant tests were carried out during the 1990s by Tenova HYL, defining the process and plant design parameters for the scheme with >90% H2. Therefore, the most suitable and proven DR technology for 100% H2 is available. • Decarbonisation via H2 use in the steelmaking industry is already under development in Europe through various projects under the ESTEP umbrella. Others will follow in the next future. • Salzgitter AG, together with Tenova and Fraunhofer-Gesellschaft (FhG), has initiated a study of the SALCOS project for stepwise conversion of the integrated BFBOF installation to DR-EAF and H2 use for reduction of about 95% of CO2 emissions. • Due to the unique characteristics of its process and its specific expertise in direct reduction with high H2 content, Tenova HYL has been selected to supply the pilot plant technology for the HYBRIT project with hydrogen, a fossil-free steel-making technology. • Improved efficiency of electrolysers for H2 generation along with expected low cost electricity from renewable sources will make the fossil-free ironmaking route based on DRI production feasible in the coming years. �
Fig 4. HYL pilot plant tests campaigns with ≥90% (vol.) H2
Material balance for condition 10 High hydrogen
January/February 2019
DRI tenova.indd 4
www.steeltimesint.com
22/01/2019 09:10:46
AIR KNIVES & BATH EQUIPMENT
FOR CONSISTENT STRIP QUALITY CMI INDUSTRY METALS provides unique expertise and know-how in steel processing. As a market leader for galvanizing technology, CMI supplies the benchmark for many of its robust, yet innovative equipment designs for processing lines. While these lines are designed to apply different coatings, including the very latest AluSi coatings, with the highest surface uniformity, the modular design of CMI’s state-of-the-art AIR KNIVES & BATH EQUIPMENT stand for improved and homogenous strip quality and reduced zinc consumption through most effective strip stabilization and high-performance jet wiping.
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DIGITAL MANUFACTURING
Hi-tech steel production planning SMS group, the global leading partner for the metals industry, sees MES systems as one of the most attractive fields of application with a high improvement potential through digitalisation. By Wilfried Runde*, Michael Bruns**
DIGITAL transformation is making everything faster, more personalised, and more efficient. SMS group, the global leading partner for the metals industry, sees MES systems as one of the most attractive fields of application area with a high improvement potential through digitalisation. The optimisation opportunities still offer room for improvement. In particular, seamless vertical and horizontal networking, optimisation algorithms, and data-driven models are becoming crucial in providing the increasing flexibility in production planning without the negative impact on productivity and operational stability. Nonetheless, technological know-how in metallurgy continues to be indispensable, and it is now more important than ever that such domain knowledge is integrated into dynamically-growing MES functionalities easily and intuitively. After all, the dynamic changes in market demands, triggered by IoT, require considerably shorter cycles of automation modernisation as we head towards Industry 4.0. The growing amount of data and the increasing information
exchange capability is resulting in closer cooperation between plant and automation suppliers, such as SMS group, and plant managers. The present paper shows successful digitalisation applications for greenfield – and even more challenging – brownfield projects with the SMS group’s new manufacturing execution system X-Pact® MES 4.0. New challenges in steel production Many challenges must be successfully overcome during the production of steel. The flexible customisation of products must be achieved while ensuring a consistently high level of product quality. Production lead times must be minimised and high delivery punctuality levels must be maintained. At the same time, resources must be optimally utilised with reduced stock, and maximum yield must be attained to ensure profitability. In addition, the requirements of end customers with regard to special properties and “tailor made products” are increasing, while lot sizes are tending to become smaller and smaller. During the production process a large
number of set-up values for the various process steps are created to optimise the product. In addition to these values there are a lot of measured values and signal information. Around 15,000 signals are available in a modern CSP plant. When analysing this signal information, it is easy to become confused, especially when you consider that there might be 500 or more temperature values (measured, calculated, surface, and average) from the heat, through casting and rolling, right up to cooling. Knowing the origin of the signals and the way they are created is of vital importance during analysis and thus a crucial factor in long-term production optimisation. Manufacturing execution system X-Pact MES 4.0 is the name of SMS group’s new integrated, modularised planning and management system, which is suitable for all types of production plants in the metallurgical process chain. By providing an extremely wide gamut of customisable functionalities for all these plants, this manufacturing execution system plays
* Production planning systems at SMS group, Germany. ** EA direct business and EA services, SMS group, Germany. Contact: wilfried.runde@sms-group.com www.steeltimesint.com
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DIGITAL MANUFACTURING
Data collected from all sensors: ~3 terabyte per month
Different use roles: 20
Nr. of CSP® sensor signals: ~15.000
Production volume: ~ 1.5 million tons per year
in the production process that may have an impact on the planning. The system thereby relieves the operators in the control room of this critical task. The planning module category will be highly influenced by new data-driven models from ongoing development activities.
X-pact ® MES 4.0 - Level 3 Nr. of users: 150 Pulpit stations/HMIs: 12 System dialoges: ~100
Nr. of tables in use per L2 automation: ~350
X-pact ® Warehouse Manager Nr. of users: 110 Coil yard, 6 areas, 11 sections Stock level at hand: ~3.700 coils 5 Tablets, 10 handhelds, office 3D-HMIs
Customer orders: ~10.000 per year
X-pact ® Business intelligence Nr. of users: 21 Nr. of reports: 18 Materials processed: ~70.000 coils per year
Data load: ~7GB, data points: ~3.500 Planer: 40 sessions per month (~80 hours)
Average order size: ~70 tons/order
Fig 1. Key figures for Big River Steel in Osceola, Arkansas, USA
Order 1 (slab/coil)
Order 2
Order 3
Order 4
Order 5
Order 6
Cmax Ctarget Heat 1
Ctarget
Cmin C represents a chemical element of heat analysis
Cmax
Cmin Displayed are maximum, minimum and target of order analysis
Fig 2. Flexible chemical target analysis, case 1
a salient role within the X-Pact electrical and automation systems portfolio. X-Pact MES 4.0 can be used in meltshops, casting plants, flat rolling mills, tube and pipe mills, section mills and strip processing lines. Against the backdrop of advancing digitalisation in all areas of metallurgical plants, our clearly structured and futureproof X-Pact MES 4.0 gives plant operators an economic advantage in terms of productivity. The cutting-edge software architecture and the modular, expandable design of X-Pact® MES 4.0 allow plant operators to put digitalisation on the right track to Industry 4.0 from the very beginning. As an industry partner, SMS group offers solutions to pressing issues that include: • How can growing product individualisation be achieved while ensuring consistently high quality? • How can production lead times be minimised while guaranteeing timely delivery? January/February 2019
SMS.indd 2
• How can resources be used most efficiently and inventories reduced? A growing number of plant operators are realising the need for change towards an Industry 4.0 environment. And this is where X-Pact MES 4.0 plays a vital role. The functional modules are clearly divided into the following categories: • Planning • Support and optimisation • Supply and dispatch • Reporting • Basis Planning The planning modules form the centrepiece of X-Pact MES 4.0. They generate technical orders on the basis of customer orders and set up optimised capacity plans, time schedules and production sequences. A highlight of the system is its dynamic rescheduling capability. This means it automatically responds to any disruptions
Support and optimisation These modules bring together additional factors that are vital for an efficient planning process, for example the plant condition, product quality, and energy consumption. The target is to achieve a situation in which all production equipment and plant units along the entire process chain are vertically networked in the most effective way. Additionally, these modules provide solutions for the central administration and maintenance of master and production data. The warehouse management module keeps track of inventories and stored products along the whole production line. With the integrated barcode scanning feature, the quality of stored items can be swiftly and efficiently documented on a smart phone. Supply and dispatch These modules provide the basis for a horizontally networked process chain along the lines of Industry 4.0 by integrating both suppliers and customers throughout the entire production process. This facilitates material supplies and requests for equipment at shorter notice, speeds up the dispatch of products, and achieves significant cost savings from these effects. Customers can obtain specific information about the progress of their production orders. Reporting This is where the cycle ends. For reporting and shortening the time-to-decision, a series of business intelligence modules are provided – web-based and using the latest media. The wide ranging reporting options include everything from conventional reports, the display of key production parameters on smart phones, through interactive analyses of production data. In this way, data become valuable information that may be used to further improve the efficiency of planning and production processes. SMS group’s solution is called X-Pact Business Intelligence. In addition to the creation of conventional web-based reports, it also provides an investigation www.steeltimesint.com
22/01/2019 14:38:19
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DIGITAL MANUFACTURING
Order 1
Order 2
Order 4
Order 3
Order 5
Order 6
Cmax Ctarget
Cmax
Ctarget
Heat 2
Heat 1
Ctarget
Cmin
Cmin
Fig 3. Flexible chemical target analysis, case 2
Material handling
DRI plant
scrap yard
EAF 1
EAF 2
EAF 3
Power/material request based on analysis and process data
Fluxes/Alloys LF1
CCM1
Charge mix calculation, material requests, based on availability and quality
CCM2
LF2
Power/material request based on analysis and process data
CCM3
Cut billet request and quality prediction based on process data
Fig 4. X-Pact® MES 4.0 at HADEED SAUDI IRON & STEEL
of connections between data. Interactive data evaluation is the key to business expertise and fast decision making in an organisation, and the resulting business processes are able to promote sustainable cost reductions. Basis SMS group’s basis modules provide a general overview of all processes within the production facility, while guaranteeing maximum data security and data protection. The data can be made available across various locations via a dedicated enterprise cloud. X-Pact MES 4.0 accompanies plant operators all the way from order intake to the dispatch of the product. X-Pact MES 4.0 at Big River Steel – the learning steel mill As a systems supplier, SMS group supplied all the plants and process know-how for the steel complex at Big River Steel, Osceola in the United States, and has supported Big January/February 2019
SMS.indd 3
River Steel during commissioning. Since operations were started, Big River Steel has achieved a steep run-up curve in hot strip production. Covering a site of 567 hectares, Big River Steel is North America’s most modern steelworks. In the first construction stage, the plant has a designed capacity of 1.6 MT/yr. The X-Pact electrical and automation systems solution was applied in all process stages, from steelmaking through to the strip-processing plant. It ensured the steelmaking complex went into production right on schedule in December 2016, and subsequently achieved a steep run-up curve. Big River Steel uses the X-Pact® MES 4.0, which immediately took over production planning and control. Big River Steel is mastering flexible production planning with varying and partly small batch sizes, while adhering to deadlines supported by this set-up, with SMS group’s approach to digitalisation and the learning steel mill. It ensures intelligent, largely autonomous steel production.
This involves the interconnection and collaboration of humans and machines across the entire value chain in dynamic production processes that adjust to optimum parameters in real time. Digitalisation is not an end in itself; rather it is a means to further increasing productivity and thus profitability, and to increasing the flexibility and resilience of the installed value chain. Highlight: PQA® (Product Quality Analyser) To ensure top quality, Big River Steel uses the SMS group’s PQA system. The PQA system collects and evaluates quality data for all products produced in all steps as well as quality-relevant process parameters along the entire process chain, from steelmaking to the finished product. Here, the process parameters may comprise measured values and results, but also complex criteria applied for quality analysis. Starting from quality order dressing, where the customer requirements are translated into detailed product quality targets, including tolerance values, the X-Pact MES 4.0 also determines the sampling required for minimum yield losses. So the “make-to-order” philosophy is supported to a significant degree by taking the capability of the plant into account. As one example of this, the so-called flexible target analysis for heat steel grades was developed. Highlight: Flexible chemical target analysis The flexible chemical target analysis function is used at Big River Steel to minimise transition bars in the caster. This minimisation of transition bars offers a huge advantage in terms of yield and, therefore, an increase in production. In the first example below, there are six orders (thin slabs/coils) which belong to one heat. So the chemical elements ‘min’ and ‘max’ must suit all orders. The target analysis of the heat is calculated while taking all single targets and limits into account. The next example shows another idea. The heats ‘min’, ‘max’ and ‘target’ are calculated for each heat itself. The problem is that the first target is above the second maximum of the current heat. The solution to this issue is the following: for the first heat, the nearest limit of the second heat is taken. These are just two examples of solutions implemented by Big River Steel and SMS group. www.steeltimesint.com
22/01/2019 14:38:19
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E: sales@cjmasset.com T: +44(0)1724 334 411 W: www.eddisonscjm.com Instructed by Outokumpu Service Centre GmbH
2009 KBM Sheet Grinding & Polishing Line
1998/99 Ocemi 2 Metre wide Cut to Length Line
Suitable for Stainless Steel & Aluminium Sheets
Suitable for untrimmed Stainless Steel 30t Coils upto 2050mm wide
n n n n n
Right to Left Operation Footprint: approx. 8m x 25m Sheet width 1500mm Sheet Length: upto 4000mm Labour Requirements – 2 operators
For Sale Outside Europe Inspection: By appointment with Eddisons CJM Location: Hockenheim, Germany Further Information: Charles Moses T: +44 (0)7831 854971 E: charles.moses@eddisonscjm.com
Instructed by Gutser Group
n Right to left operation n Footprint: approx. 35m x 10m n Coil Weight: 30 tonnes n Coil Width: 800 – 2050mm untrimmed coil n Strip Thickness – 1mm – 4mm Stainless Steel n New Control Panels Installed 2011 n Siemens S7 Operation System n Speed: approx. 40m/min
For Sale Outside Europe Inspection: By appointment with Eddisons CJM Location: Hockenheim, Germany Further Information: Charles Moses T: +44 (0)7831 854971 E: charles.moses@eddisonscjm.com
Instructed by Öztüre Çelik AS
1997 Fagor High Speed Blanking Line
120,000 Tonnes Per Annum Rebar Rolling Mill
n Coil Weight: 25t n Coil width: 400-2050mm n Gauge: 0.5mm – 2.5mm n Coil O/D: 530-2000mm
On Foundation & under power
Including: Coil Car; Expanding Mandrel Uncoiler with snubber; Fimi 17 roll Leveller (optional); Proin 11 Roll Leveller; Cyclical Roll with edge guides; Fagor SE4 500 Hydraulic Blanking Press; Scrap Conveyor; Side Take off Conveyor and Magnetic Piler; Additional Take Off Station with 2 Scissor Lift Tables; Tooling Change Table; Control Desks etc.
Can be seen working
Inspection: By appointment with Eddisons CJM Location: Barcelona, Spain Further Information: Charles Moses T: +44 (0)7831 854971 E: charles.moses@eddisonscjm.com Eddisons CJM, Dunlop Way, Scunthorpe, DN16 3RN, UK
Feedstock: 130 x 130mm x 2000mm Billet n Finished Product: Rebar and other Rounds 12mm – 25mm n Full Refurbishment 2009 n Mill Comprises: Gas Fired Billet Reheat Furnace; Roughing Stand; 2 x Intermediate Stands; 8 x Finishing Stands; Cooling Box; Measuring Pinch Roll; Rotary Bar Shear; Twin Channel Runout to Fixed Shear; Cooling Beds; Bundling and Packing Station; Range of spares including Mill Stands; Rolls & Chocks; Spindles’ Motors; Gearboxes; Shear & Bar Guide n
Inspection: By appointment with Eddisons CJM Location: Izmir, Turkey Further Information: Charles Moses T: +44 (0)7831 854971 E: charles.moses@eddisonscjm.com
DIGITAL MANUFACTURING
The “flexible chemical target analysis” feature is realised in the SMS group production planning system together with the EAF, LMF, RH degasser and caster process models. This feature enabled the number of transition slabs to be reduced from 5 % to 2%. According to Big River Steel, this saves them several millions of dollars each year. X-Pact MES 4.0 at Hadeed Saudi Iron & Steel – upgraded level 3 system As part of a turnkey project, the level 3 production planning system for three electric arc furnaces, two ladle furnaces and two of the three continuous casters, as well as the maintenance section with equipment management system, were fully replaced and prepared for Industry 4.0 with the X-Pact MES 4.0 at Hadeed Saudi Iron and Steel. The implemented solution is scalable, so further progressive digital enhancements can be accommodated.
new self-learning process models. This has resulted in significant cost optimisation. To ensure future-proof, recurring returns on investment, SMS group supplied virtualisation techniques to give Hadeed independence from specific hardware components as well as great flexibility in spare parts sourcing. As a result, a comprehensive asset life cycle optimisation with attractive ROI was achieved with this revamp. Highlight: X-Pact Business Intelligence The core elements also included a business intelligence system with interactive analysis options and a highly extensive, modern web reporting system that provides very clearly structured and comprehensive dashboard visualisation of the production processes and the use of associated inputs, in addition to processing the information to the desired level of detail. The challenge was to channel the enormous amount of
Fig 5. Intelligent and up-to-date reporting with X-Pact® Business Intelligence
The key question about the modernisation project at Hadeed Saudi Iron and Steel was how to prepare a steel plant with legacy equipment that partly dated back to the 1990s for Industry 4.0, while keeping downtimes to an absolute minimum. Within a short time SMS group had already implemented a state-of-the-art automation infrastructure. The new intelligent analysis tools add leverage to Hadeed’s experience in production management, quality control, and business intelligence, including the perfect integration of pre-existing data into the new fault-tolerant database. Through collaboration between the metallurgists from Hadeed and SMS group, a wealth of empirical experience was fed into the www.steeltimesint.com
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detailed data into relevant information packages at one central point for intuitive analysis and strategy development. The central best practice management facilities allow Hadeed to develop its metallurgical strategies centrally and apply them to the different furnaces. This modernisation has allowed Hadeed not only to replace the old hardware and system software with new technology, but also obtain a sustainable platform that is scalable for the integration of innovative modules in connection with Industry 4.0. Such modules can be easily added, and the system’s performance is progressively increased with every new solution module. The strategic KPIs can now be deployed
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across all operator teams, with data dashboards allowing close monitoring and follow-up of targets. Highlight: Melt shop pacing and dynamic re-planning for caster plant (MSP) The core function of the melt shop pacing and dynamic re-planning system is to keep the original planned caster sequence as long as possible, even when some deviations or unforeseen variations occur during production. The system is used by the caster operators and/or dispatchers in the pulpits for the initial selection and timing of used equipment at the steel making plant based on the planned casting sequences. It enables an optimised routing of heats and determination of planned treatment times, continuous monitoring of the actual and planned treatment times as well as a rerouting of heats in case of considerable delays or unforeseen plant unit stoppages. There are also unplanned production events that will require changes to the production schedule. Dynamic re-planning and the availability of an order list mean that the operator can: • increase the production to order (reduce production to stock); • increase the production in quality (operator may change the billet orders if heat grade has not been achieved at steel plant); and • increase the production efficiency of the plant. The selection of equipment and accurate time planning for all units in the steel plant are done automatically by melt shop pacing, used to support the steel plant supervisor (dispatcher). The system checks for free production units and generates a time schedule for the production steps of steel making plant (EAF, LF, CCM). In re-planning the supervisor has the option of manually moving the treatment of heats to another plant unit (e.g. from LF1 to LF2). Furthermore, the supervisor can change the treatment start time and duration. The Gantt chart is automatically updated at regular intervals in all pulpits, taking the latest changes to the schedule by the supervisor into consideration. Mathematical methods are utilised to calculate the start and end times of the work operations of the heat orders for the various plants on the process route and also to calculate the routing alternatives within the steel making January/February 2019
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DIGITAL MANUFACTURING
Machine learning methods with artificial intelligence
Fig 6. Self-learning production planning
Production optimisation
Process
optimisation
Production
Process
Real-time production planning Today’s generally centralised and rigid medium to long-term production planning will be replaced in the learning steel mill in future with real-time, self-optimising production planning. At Big River Steel, the X-Pact MES 4.0 system reviews current planning whenever a change takes place (new order, altered maintenance plan, quality deviation). It does so in real time and applies clearly defined key performance indicators while searching for a better planning result. That involves taking into account real time data and, therefore, fact-based views on the product quality and plant condition, as well as a structural production planning model. In short, X-Pact MES 4.0 optimises production planning dynamically in respect of four main key performance indicators: output, delivery performance, product in stock, and cost efficiency. As part of its digitalisation offensive, SMS group has launched a research January/February 2019
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optimisation
Process
optimisation
Slab
Production
optimisation
Process
optimisation
plant. Last but not least, it is possible to manage the scheduled maintenance operations by indicating an approximate start time for a maintenance operation. Optimisation algorithms consider this flexibility in their calculations and provide the (fixed) planned start time.
Production
optimisation
Process
optimisation
HRC
and development project on intelligent production planning in co-operation with Jacobs University of Bremen, Germany. The project will cover aspects such as dynamic reactions to specific production situations, the use of artificial intelligence, and autonomous learning of automation systems. The dynamic planning and optimisation processes to be developed during the project will be integrated into the automation environment in place at Big River Steel. Improved adherence to production schedules and increased yield by reducing downgrading and scrap will have positive effects on the economic efficiency of the customer’s production facilities. Machine learning and pattern recognition techniques are to be introduced to predict the timeliness of orders. A further objective of the project is the development of a planning module based on artificial intelligence - X-Pact MES 4.0 performance enrichment analysis. This module will be used to detect relationships between production parameters and performance indicators on the basis of historic production data. These capabilities are intended to be used, for example, to perform scalable, self-learning order analyses and generate plans that take order schedules into account.
optimisation
CRC
Processed coil
Conclusion SMS group has been dealing with digitalisation not only under technological aspects, but also it impacts the integral processes of a company and has fundamental effects on existing processes and business models. To SMS group it is more an evolution than a revolution. According to SMS group, digitalisation is set to offer entirely new opportunities for both steel producers and plant manufacturers. A key feature in this area is X-Pact MES 4.0. In times such as these where an exchange of information can be very easily achieved, product added value can be generated. Much more intensive co-operation between the plant suppliers and their customers is possible, and so the implementation of digital solutions is commercially rewarding for both sides. To put it briefly, the clearly structured and future-proof X-Pact MES 4.0 gives plant operators an economic advantage in terms of productivity. The MES system is linked with the automation systems of all units in the plant and obtains status information as well as production and process data. �
THIS ARTICLE WAS FIRST PUBLISHED FOR THE FUTURE STEEL FORUM 2018. www.steeltimesint.com
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PERSPECTIVES: REIDSTEEL
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Extremely optimistic This month’s Q&A takes a look at the global steel industry from a different perspective, that of an international structural steel engineering business based in the UK – in other words, a more downstream steel company. REIDSTEEL celebrates 100 years of trading in 2019 and is very positive about the global steel industry. The company is pro-Brexit and claims that 75% of its trade is for export. Simon Boyd* (pictured below) answers our questions
1. How are things going at REIDSTEEL? Is the steel industry keeping you busy? The company remains strong and this year celebrates one hundred years of trading. Competition throughout the UK and across the world remains a challenge, but we continue to find success through our abilities to design the most cost-efficient structures for our customers.
where our reputation is leading customers to us as their first port of call.
2. What is your view on the current state of the global steel industry? We are positive about the global steel industry. There are challenges for the wider industry, but there always have been and always will be. We have seen international upheaval before and have always found a way through it by maintaining a positive approach. 3. In which sector of the steel industry does REIDSTEEL mostly conduct its business? We are mainly in the industrial sector and can design, manufacture and install everything from basic industrial units to the biggest aircraft hangars, storage warehouses and the like. We also are able to cater for disaster-resistant buildings that can withstand some of the harshest and most dangerous environments on earth, including war zones. In addition to industrial buildings, we design, manufacture and install stadia, public buildings, car parks and specialist structures to aid security. Our bridge market continues to grow throughout the UK and across the world,
4. Where in the world are you busiest at present? This year, about 75% of our trade has been export and we remain very strong in the UK market. We have exported to more than 140 countries in a century of trading to date. International trade has always been part of our DNA. Africa, Central America and the Caribbean are consistently busy, but we also work in the UK, Europe, Asia and South America. 5 Can you discuss any contracts you are currently working on? We recently met all of the propriety design requirements for structural steelwork and decking for a £7.3m Jaguar Land Rover showroom in the Midlands under main
contractor Speller Metcalfe. Automotive is a growth sector for us whether it is for branded showrooms or one-off, unique projects. One interesting project we are currently working on is the construction of the Enis Adams Primary School in Tortola, in the British Virgin Islands, after the previous school was destroyed by hurricanes Irma and Maria. We’re grateful to many of our suppliers, such as Tata Steel, who are supporting this project. 6. Where do you stand on the aluminium versus steel argument? Technology evolves very quickly and this can be to the benefit of the use of steel in the automotive industry too, with different types of steel offering the strength, flexibility and weight to match competitor materials and retain their position within the sector. We place innovation at the heart of everything we do, whether in design or new alloys, to ensure we can deliver the best and most suitable products. 7. What’s your view on Brexit? We are in favour of Brexit. It is the ultimate irony that as a business founded in France in 1919 we have found it impossible to export there because of rampant protectionism within the EU. We can, however, work in every other Frenchspeaking country in the world! I have been campaigning against bad EU directives and regulations for many years. If the UK leaves the EU with a clean Brexit then it will give a tremendous boost to the steel industry and the UK economy in the longer term.
* Managing director at REIDsteel www.steeltimesint.com
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PERSPECTIVES: REIDSTEEL
8. Jaguar Land Rover has talked of Brexit uncertainty being one reason behind its recent announcement concerning job losses. What’s your view? The problems at Jaguar Land Rover have less to do with Brexit and more to do with China and a fall in demand for diesel cars. Uncertainty is a hindrance for business, but this could be easily remedied if the Government set out its stall for a clean Brexit and got on with it. Many people, especially large multi-national companies, are seeking to reverse or blame Brexit when they should be looking forward instead.
comes to competing with the likes of China in steel production and on import costs. 11. How is REIDSTEEL increasing its energy efficiency? We have exciting plans to relocate from our historic home of more than 50 years in Christchurch to a purpose-built new facility nearby in 2020. This will enable us to invest in the latest cutting-edge technology which will double our productivity and allow us to operate significantly more efficiently as well as substantially reduce our carbon footprint. 12. How quickly has the steel industry responded to ‘green politics’? The steel industry has to adapt to survive and prosper. Although we face less pressure at our end of the industry, we do get a sense that the wider industry is succeeding in recognising the challenges it faces and tackling them.
9. “…any hint of doubt when it comes to predictions of climate doom is evidence of greed, stupidity, moral turpitude or psychological derangement.” This is a quote from Bret Stephens writing in The Wall Street Journal. Do you sympathise with his view? There is no doubt that all businesses are seeking to become more environmentally conscious and reduce their carbon footprint. Although it may require some investment, ultimately reducing waste and operating more efficiently makes complete business sense. We are actively investing in the latest technology to massively reduce our environmental impact through our manufacturing process. 10. Talking of emissions control, how is the steel industry performing? The steel industry is making progress in tackling its environmental responsibilities although it is not easy, particularly when it January/February 2019
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13. Where does REIDSTEEL lead the field? The key has been our ability to design, manufacture and erect all elements of our buildings – from the steel structure, roof and cladding to glazing and doors. Innovation is another strength, particularly our patented Archspan Frame, which allows easy design, manufacture and supply of widespan structures. We’re also a world leader in disaster-resistant structures, designed to withstand hurricanes, tsunamis and flooding. 14. How will REIDSTEEL develop over the short-to-medium term? Our relocation into a purpose-built new factory will ensure the continuing growth of REIDsteel. The business has been expanding steadily and will double its productivity once relocation is complete. We are very confident about our future growth and prospects at home and abroad. We have a highly skilled and loyal workforce, which has wholeheartedly embraced our development plans, which will bring benefits for them as well as the company and local economy. 15. How should the industry react to China? There is no simple or easy answer, and it would be easy to fall into the trap of being reactive to every single change in the direction of travel from China. China-
US trade friction will continue, and that is understandable, although we must not let this dictate our own medium- to-longerterm plans. 16. Does REIDSTEEL have a healthy export market? REIDsteel has won four Queens Awards for Enterprise in International Trade and has exported to more than 140 countries to date. We have a healthy domestic market but also export across Europe and worldwide. We have built an excellent reputation for high standards and skilled workmanship. 17. Where do you see most innovation in terms of production technologies? We see this coming in new computer modelling that can not only take a client around the building before he’s placed the order, through virtual reality, but helps all involved to better integrate throughout the construction phase. 18 How optimistic are you for the global steel industry going forward? We are extremely optimistic. With a century of trading under our belts we have adapted and prospered in many different economic climates and met many different challenges. 19. What’s happening in the UK steel industry? We see a lot of companies in the steel sector facing some of the same challenges as us and with the same wider concerns. Undoubtedly the pace of change is accelerating, and the demand for more advanced yet larger structures are growing too. Companies such as ours, which have the capability and expertise to meet this demand across different disciplines, will always have the edge. 20. Apart from strong coffee, what keeps you awake at night? Brexit – it is the chance of a lifetime to make a real, meaningful change which could reap huge benefits not just for the steel sector but the whole country if it is done properly. 21. If you possessed a superpower, how would you use it to improve the global steel industry? Get rid of the rampant protectionism and encourage free and fair trade worldwide. � www.steeltimesint.com
22/01/2019 09:03:43
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48
HISTORY A model of the ‘Sundew’ walking drag line
Walking to work What’s the best way to transport a dragline from one location to another? You could dismantle and then rebuild it at a cost of £250,000 or you let it walk the entire distance – of nine miles – on its own steam, restoring the land after it passes and fixing the hedges that got in the way. Tim Smith* tells the remarkable story of the Sundew dragline and its painstaking journey from Exton to Shotley POST WWII, Britain needed steel and many, now considered uneconomical reserves, were put into operation. Despite being only 20 miles or so north of Corby steelworks (See STI April 2018 p 76), ore mined in Rutland travelled by train 75 miles north to steelworks at Scunthorpe or twice this distance to Teesside. The ore bed is covered by an overburden of clay and low-grade limestone, and runs along the edge of an E-W escarpment. The ore bed dips travelling east thus increasing the depth of overburden to be removed to extract the ore. In 1949, The United Steel Companies commenced a new quarry at Exton Park, laying a standard gauge rail link to the N-S main line. Extraction of ore commenced in November 1951 with a target output of 10,000 tons a week. Exton was some two miles (3.2km) east of the western ore outcrop, the dip in the ore bed resulting in 80ft (24m) of overburden to be removed. To meet the 10,000-ton target, one of the largest drag lines then in existence, the W1400, was ordered. Built by Ransomes & Rapier Ltd of Ipswich, the design was similar to an earlier machine built for Stewart & Lloyds at Corby in 1951 – at the time the world’s largest drag line. With a bucket capacity of 20 cubic yards (15m3) and a 282ft (86m) long boom of tubular steel (pressurised with nitrogen to detect cracks), this was capable of moving 52 tons of overburden at a scoop. The Exton dragline arrived in sections by rail and was assembled at the quarry. Weighing in at 1,625 tons, it was powered by four 225hp electric motors and two1500hp motor generator sets fed by 3 phase, 6600 volts. It started operations in 1957 and was named
‘Sundew’ after that year’s Grand National winner. Mounted on two ‘shoes’ each 48 x 9.5 ft (14.6 x 2.9m), one per side, Sundew could ‘walk’ along the quarry edge by means of a rotating cam, which simultaneously raised each shoe from the ground moving it towards the rear of the machine, causing its front to tilt forward before regaining its upright position as the shoes settled on the ground, completing a forward stride of 7 ft (2.1m). In this way, the machine could cover 200 yd (183m) an hour. But by 1972, the Anchor Scheme at Scunthorpe enabled the import of much richer overseas ores. In May 1973, the last shipment of ore from Exton took place. Following a small amount of infilling to restore the land to fields, Sundew was left to stand idle by the then British Steel Corporation (BSC). But nine miles to the south at Shotley a new quarry for BSC Corby was opening up and needed a giant dragline. A committee was established to assess the feasibility of bringing Sundew to the new site. It was estimated it would take two years to dismantle and rebuild and cost £250,000. But a dragline was needed urgently and the cost was prohibitive. Chief engineer, C W Anderson, said ‘let’s walk it’. Once the laughter died down, it was realised he was serious. In a straight line Shotley was just nine miles south of Exton, but several villages and the recently enlarged Rutland Water reservoir were in the way. Hence, a 13-mile route was plotted taking into account the maximum gradient of 1 in12 that Sundew could climb and the maximum sustainable side tilt of 1 in 20. This route required crossing 10 roads, four
rivers, one mainline railway, three water mains, two gas mains and 74 field hedges. A track 150 ft (45m) wide was negotiated with landowners, with the ground made good after passing. Rivers were crossed by laying culvert pipes followed by temporarily infilling with limestone ballast up to 12ft (3.6m) thick to reduce gradients; roads were protected with a 3ft (0.9m) covering of ballast. After each crossing, this was collected and trucked to the next obstacle. Another problem was the supply of electrical power. It was established that the required 6,600 volts supplied could be carried by cable for six miles. Fortunately, power was available from a sub-station at Exton and a power station in the south at Harringworth. A temporary cable was laid for the first six miles enabling the 1000ft (305m) cable carried by Sundew to be tapped in at intervals. The cable was re-laid to Harringworth for the rest of the route. On 30 May 1994 the journey commenced with an estimated time for completion of 13 weeks. Twice, the giant machine became stuck in boggy ground, but the feet were lifted and the ground reinforced with timbers and ballast enabling safe passage. On 5 August Sundew arrived at Shotley amidst much celebration. Here it worked for nearly six years until January 1980 when the closure of hot metal production at Corby meant ore was no longer required. Two of Corby’s drag lines found new homes in Pennsylvania and hope was expressed that the UK’s National Coal Board would buy Sundew so it was mothballed, but in January 1987 it was scrapped with only one of the two driving cabs preserved, now displayed at the ‘Rocks by Rail museum. �
* Consulting editor Steel Times International January/February 2019
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22/01/2019 09:13:40
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