Steel Industry News: Kobe Steel and Angang signs JV to start Kobelco Angang Auto Steel Co

Kobelco Angang Auto Steel Co 

13-Aug-2014

Kobe Steel and China's Angang Steel Company, a subsidiary of Anshan Iron & Steel Group Complex, have established a joint venture known as Kobelco Angang Auto Steel Co in China to produce and sell cold-rolled high-strength steel sheet which has a huge demand in automobile industry.

The two parent companies signed an agreement on 17 October, 2013, to form the joint venture and then undertook the necessary incorporation procedures to set up the new company. After receiving approval from the Chinese government, Kobe Steel and Angang Steel were able to establish Kobelco Angang Auto Steel to be headquartered at Angang’s steelworks, Anshan Base, in Anshan, Liaoning Province.

Kobelco Angang Auto Steel will construct a continuous annealing line with a production capacity of 600,000 tons per year to make cold-rolled high-strength steel with a tensile strength of 590 MPa or higher.

According to the Press Release, Angang will supply the joint venture with the substrate coils, with production slated to start in early 2016. The new company will combine Kobe Steel’s world-class automotive cold-rolled high-strength steel technology with Angang’s solid business base to meet growing demand for high-strength steel in China which also harbors the world’s largest automobile market. Total investments are anticipated to reach 1.75 billion yuan (US $291 million).

The new company Kobelco Angang Auto Steel would have a total capital of around 700 million yuan (11.6 billion yen) in which Angang Steel owns 51 percent of the venture and balance 49 percent stake by Kobe Steel. The joint venture will employ about 100 people when it reaches full operation with its Chairman from Angang.

(Source: http://www.kobelco.co)

India builds warships with indigenously developed Alloy Steel DMR249A

1-Aug-2014
In the last month when Rear Admiral (retd) A K Verma, CMD, Garden Reach Shipbuilders and Engineers (GRSE) formally handed over the INS Kamorta to commissioning captain Commander Manoj Jha, India touched another milestone in steel making. The day would be marked when India shed her dependency on imported high-grade steel to build warships. DMR249A, or the new category of steel made at Alloy Steel Plant (ASP), Durgapur and further strengthened at the Bhilai Steel Plant, was used to build the anti-submarine warfare corvette. Both, these Steel Plants are the units of Steel Authority of India Ltd (SAIL), a PSU, is the largest producer of iron and steel in India.

"This was the first ship of the Kamorta class of ASW corvettes. These are very advanced vessels. Garden Reach Shipbuilders and Engineers (GRSE) are presently building the three other vessels of this class. All of them will be built using DMR249A. This was a great achievement for the country. Steel Authority of India Ltd (SAIL) has developed this steel and we will no longer have to depend on imports for naval shipbuilding that will certainly go up in the days to come. Even the hull of the INS Vikrant, India's indigenous aircraft carrier that is under construction, has been built with this steel. The flight deck of the aircraft carrier has been built using a superior quality steel that was also made at the Alloy Steel Plant," a senior defence ministry official said. 

Till now, India has been primarily using Russian-made AB Steel for naval shipbuilding. With India aiming to turn into a 'Builders Navy' from a 'Buyers Navy', the country can't rely solely on imports of steel. The bulk of sensors and weapons systems on the INS Kamorta have also been supplied by Indian companies. 

Besides pricing, one has to consider changes in the global political scenario. A time may come when sanctions are imposed and exports to India are banned by countries that now supply steel for shipbuilding. Employees at GRSE were trained in ASP specially for welding this steel - DMR249A. This quality of steel was first developed in ingot form at the Heavy Engineering Corporation (HEC), Ranchi as per specifications of the Defence Metallurgical Research Laboratory. At Alloy Steel Plant Durgapur, the steel was cast into plates with an aim to build a superior quality steel. It was left to Bhilai Steel Plant to produce plates of 8-16 mm thickness without Quenching and Tempering (Q&T), through controlled rolling. The steel can absorb an impact of 78 Joules at 60 degrees below zero. As temperature reduces, the steel actually becomes tougher. This will enable the ship to sail in as low temperature as in arctic waters if the need arises. 

(Source: Excerpts from TOI)

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SAIL’s new grade of steel would make LPG cylinders lighter and tougher

SAIL’s new grade of steel would make LPG cylinders lighter and tougher

3-May-2014

India's largest steel producer Steel Authority of India Limited (SAIL), a PSU and Maharatna Company of Govt. of India has developed new grade of steel that will help to make domestic LPG cylinders lighter by 2.5 kgs and also tougher. SAIL's new grade steel has already got ISO quality certification and is ready for use after user trials. Normally from one tonne of steel, 62 cylinders can be made each weighing 15 kgs. But by using SAIL’s new grade, from one tonne of steel around 70 cylinders can be made. Moreover, it would be easier to shape and give a new design and look to the LPG cylinders that have remained unchanged for several decades.

The conventional domestic cylinders are made from 2.9 mm thick steel sheets. “The new steel developed and produced for domestic LPG cylinders has a higher strength to weight ratio and hence 2.44 mm thickness for the cylinder would suffice instead of 2.9 mm. This will reduce the weight of the cylinders by around 2.5 kgs,” said C. S. Verma, the SAIL chairman. SAIL has used the period of flat demand scenario in the steel sector to its advantage by focusing its energy on research and development. The new grade of steel for LPG cylinders is part of 25 new products developed by the Steel Authority of India Limited (SAIL) in 2013-14, all aimed at increasing the share of value added products in SAIL's portfolio.

Mr. Verma said, “Around 37% of our revenues are from value-added steel products at present and in the next one and a half year, we plan to increase this to 55%. This will help the company financially as well as value added products allow better realizations”.

Earlier, the petroleum ministry had a proposal of reducing weight of domestic cylinders but due to difference in the cost and efficiency mechanics the idea was dropped. There was also a plan to use stainless body for these cylinders but because of excessive cost involved for changeover forced to drop the idea. This time SAIL has been pushing very hard towards the new proposal as it would not lead to any substantial increase in steel price. SAIL has already supplied 50,000 MT of this new grade of steel to a Faridabad-based entity for fabrication of export quality LPG and other cylinders. It has now asked oil marketing companies to approve the new steel grade so that it could be commercially manufactured for domestic LPG cylinders.

(Source: The Financial Express)

Kobe Steel Starts Operation of New Hot-Metal Treatment Plant at Kakogawa Works

25-April-2014
The biggest steel producer of Japan, Kobe Steel’s new hot-metal treatment plant has gone into operation in April at its Kakogawa Works in western Japan. The company previously announced that it would construct the facility to improve the production system at Kakogawa to expand sales of high-end “Only One” steel products and increase its cost competitiveness. Kobe Steel has world-class technologies for producing high value-added steel products, but also raw material processing and iron unit production including pellets, direct reduced iron, and the ITmk3® iron making process.

Hot-metal treatment is a process to remove impurities—sulfur and phosphorus—in the molten iron. The high-end steel products, such as special steel wire rod and bar, automotive high-strength steel sheet, and steel plate for the energy sector etc. produced by Kobe Steel or any steel plant, require a high degree of cleanliness. To produce these steels, hot-metal treatment is an essential process.

The new hot-metal treatment plant has two Kanbara reactors for desulfurization and one dephosphorization furnace. The Kanbara reactor uses a stirring method to desulfurize molten iron. An impeller stirs the molten iron and the agitation removes the sulfur. The new plant, together with existing equipment, enable nearly all of the molten iron to undergo hot-metal treatment and will enable Kobe Steel to further increase the production capacity of high-end Only One products.

The new hot-metal treatment plant increases the reaction efficiency during desulfurization and dephosphorization, thereby reducing the consumption of auxiliary materials for refining and improving yield. According to an estimation the new facility will enable Kakogawa Works to save approximately 6 billion yen annually. Striving to strengthen the competitiveness of its steelworks, Kobe Steel is working to raise its presence in the market and increase its profitability.

Details of Kobe Steel’s new hot-metal treatment plant at Kakogawa Works

· Total investment: About 30 billion yen

· Start-up: April 2014

· Main equipment: Two Kanbara reactors, one dephosphorization furnace

 (Source: Kobe Steel Press Release) 

Steel Industry News - SAIL's IISCO Steel Plant modernization nears completion

18-Oct-2013
Steel Authority of India Limited (SAIL) Chairman Mr. C.S. Verma was at SAIL’s IISCO Steel Plant (ISP), Burnpur on 5^th Oct’13 to review the progress the modernization and expansion work of ISP which is in the last phase of its modernization (read integrated commissioning). SAIL Expedites Modernization and Expansion of ISP, Burnpur

SAIL ISP (IISCO Steel Plant) is being upgraded and modernized with a total cost of over ₹ 16000 Crores with a target to produce about 2.9 MT of Hot Metal from this steel plant after its modernization. 

The major facilities include a new 7 meter tall Coke Oven Battery, two new Sinter Machines, a new Blast Furnace of 4060 cubic meter volume with Top Pressure Recovery Turbine, three new 150 ton Basic Oxygen Furnaces, two nos. of 6-strand Billet caster sand one 4-strand Beam Blank / Bloom caster, Universal Section Mill, Wire Rod and Bar Mill with necessary auxiliary and service facilities.

Besides the Coke Ovens Battery, SAIL Chairman also visited the Universal Section Mill, Bar Mill and the BOF (Basic Oxygen Furnace) and CCP sites.   

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·  Iron Making in Mini Blast Furnace (MBF)

· New Coke Oven for Rourkela Steel Plant inaugurated by SAIL Chairman

· India records 33 per cent growth in Steel Production during last 5 years - 2ndHighest in the World         

SAIL News - DSP achieved record Steel Production

18-Oct-2013

Durgapur Steel Plant (DSP), a unit of SAIL (Steel Authority of India) - a Maharatna PSU has done it again by clocking the best ever first half (April - Sept) performance in this year since inception of the plant. DSP recorded an an all time high first half as well as yearly production in the previous year.

Congratulating the employees for the stupendous performance, Mr. P. K. Singh, CEO, DSP said, DSP has maintained consistency on improving the performance. The focused strategy and synergy among all departments have played the key role in this achievement. With heightened optimism and collective efforts we will set yet another record in the production in the current year also".

DSP’s record achievement includes the best ever H1 production in vital items - hot metal, crude steel, saleable steel, special steel, caster, saleable steel despatch, blend mix and sinter, registering a substantial growth over the CPLY.