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Annual Report 2012

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2003 2004 20062005

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FIGURESof the SMS group

SMS Siemag

Order intake by Business Area in million EUR1)

SMS Meer elexis

Figures in accordance with International Financial Reporting Standards (IFRS)1) Including Other/Consolidation2) Without Paul Wurth3) Reporting date with apprentices

SMS group in million EUR1) 2007 2008 2009 2010 2011 2012

Total order intake 5,142 5,288 2,341 2,931 3,423 3,343

� of which Business Area SMS Siemag 3,725 3,870 1,479 1,892 2,007 1,519

of which Paul Wurth – – – – – 508

� of which Business Area SMS Meer 1,353 1,415 861 1,039 1,365 1,152

� of which elexis – – – – 67 180

Sales 2) 2,937 3,601 3,891 3,036 3,070 3,237

Order backlog 4,884 6,332 4,641 4,460 4,862 5,377

Employees1) , 3) 7,699 8,927 8,951 9,405 11,346 13,588

� of which Business Area SMS Siemag 5,734 6,403 6,313 6,642 7,037 7,515

of which Paul Wurth – – – – – 1,536

� of which Business Area SMS Meer 1,866 2,448 2,573 2,709 3,308 3,496

� of which elexis – – – – 943 990

1,93

3 2,28

2

2,81

1 3,23

5

Plastic Technology

2007 2008 201220102009 2011

5,14

2

5,28

8

2,34

1

2,93

1 3,42

3

3,34

3*

*Order intake by Paul Wurth not yet consolidated.

Paul Wurth

*

*

Executive summary 4Structure of the SMS group 12

Coke oven plants, sintering plants, and blast furnaces 16

Metallurgical plant and steelmaking technology 22Continuous casters for flat products 30Hot rolling mills 38Cold rolling mills 44Aluminum plants 52Strip processing lines 58Furnace technology 64Electrics and automation 72Service 80Technological development 86

94Steelmaking and continuous casting for long products 96Tube and pipe plants 102Long products plants 108Forging plants 114NF metals plants 120Heat treatment technology 126Service 132Technological development 138

elexis automation technology 142

Employees 148

Consolidated Financial Statements as of Dec. 31, 2012 154Supervisory Board and Managing Board SMS Holding GmbH 157Addresses, Products, and Services Business Area SMS Siemag 158Addresses, Products, and Services Business Area SMS Meer 163Addresses, Products, and Services Industrial Participations 166Managing Boards 167

CONTENTS SMS group

PAUL WURTH

SMS SIEMAG

SMS MEER

elexis

SMS group

Annual Report 2012SMS group

4

EXECUTIVE SUMMARY

The effects of the national debt crisis weighed more and more heavily on the real economy in 2012. Global growth slowed from 3.9% in 2011 to 3.2%. Due to the continued pressure to reduce public and private debt, the countries of southern Europe are in recession. Only an announcement by the ECB that it would purchase unlimited government bonds calmed the capital markets. It is now less likely that the currency union will fall apart. The risk premiums for government bonds in the peripheral countries have decreased.

In Germany, growth slowed to 0.9% (2011: 3.1%). However, strong exports and increased domestic demand ensured Germany was much better off than the eurozone as a whole. Yet even here, total economic production declined by 0.6% in the fourth quarter of 2012.

Once again, the developing countries and emerging economies were the drivers of the weaker global economy with their average growth of 5.1%, with China achieving 7.8%.

Recovering by 2.3%, the US economy profited for the first time from the structural changes in energy supply.

The prospect of a uniform bank supervisory system in Europe further calmed the financial markets in the fall. Subsequently, the indicators for the global economy stabilized in the final quarter of 2012.

Compared to the previous year, global steel production in 2012 increased slightly by 1.2% to 1,548 billion t. There was an increased demand for steel in the first half of the year, but this weakened toward the end of the year.

GLOBAL ECONOMY

THE STEEL AND ALUMINUM MARKET

Dr.-Ing. E. h. Heinrich Weiss,

Chairman and CEO

5

Management of the SMS group

Regionally, development was varied. Just 75% of Europe’s steelmaking capacity was utilized. This led to stoppages of some plants. Steel producers are also under pressure from high raw materials and energy prices.

Demand picked up rapidly in the US because of an upswing in the automotive and energy industries. Growth rates in the emerging economies, especially in China, weakened slightly.

Global primary aluminum production in 2012 was up on the previous year by 2.8%, reaching 45 million t. Typically, China played a leading role here, with a share of 44% of the total production volume.

The market for metallurgical plant and rolling mill technology was cautious in 2012. Strug-gling with a difficult profit situation, many steel producers waited to see how the market would develop and postponed project activities. Furthermore, ongoing purchasing processes for existing metallurgical plants in North America and Brazil froze other investment decisions by some of our key accounts.

As in the previous years, the main sales markets are the developing and threshold countries. There is still an increased demand for plants for the aluminum industry in China.

This more positive overall economic outlook has also had a noticeable effect on our customers. The project volume, although still low, has increased a little.

MARKET SITUATION

Eckhard Schulte,

CFO

Dr.-Ing. Joachim Schönbeck,

Business Area SMS Meer

Burkhard Dahmen,

Business Area SMS Siemag


The debt crisis and weak economic development in the eurozone countries once again pre-sent the greatest risk to the global economy in 2013. Recently, early indicators have improved in many industrialized and developing countries. However, due to the continued pressure to reduce debt, the economic situation in the industrialized countries is difficult.

Looking at global development in 2013, experts anticipate continued low inflation and in-terest rates and economic growth of 3.5%. The growth engines will remain the developing and emerging economies.

There is also no change in the main markets for equipment suppliers to the metallurgical and rolling mill industry – China, India, South-East Asia, and the MENA region. The rapid expan-sion of production capacity for aluminum in China remains unbroken. Higher requirements of quality and steel grades as well as more flexible plant designs will make it increasingly necessary for manufacturers in Europe, the USA, and China to modernize their old plants.

Overall, we expect slight market growth in the current year, although our customers will still be cautious in their investment decisions. It seems likely that our Business Area SMS Siemag with its focus on plant construction will see an upturn as from summer 2013, while the Business Area SMS Meer already benefited from the structural changes in US energy supply at the end of last year.

Based on the continued high level of orders in hand, and taking into account the effects of the first full year of consolidation of the Paul Wurth group, we anticipate a modest increase in sales and profit compared to 2012.

There will be a strategic focus on integration of the Paul Wurth group, implementation of cost-saving measures, process improvements, and steady expansion of our service business.

Our takeover of the majority share (59.1%) in Paul Wurth was concluded on December 17, 2012. The other shares remain with the Luxembourg shareholders controlled by the state.

Paul Wurth will continue to operate as an independent company within the SMS group. With more than 1,500 employees and 26 subsidiaries, it ranks among the world’s leading producers of blast furnaces, coking plants, and green technology for metallurgical plants. The product ranges of Paul Wurth and especially SMS Siemag complement each other perfectly. That is why Paul Wurth will be associated with the Business Area SMS Siemag. The merger creates the basis for the further growth of both companies.

Due to the acquisition of the majority share in December 2012, the orders in hand and em-ployees of Paul Wurth are included for the first time in the SMS group figures. However, the late inclusion of the company means that order intake, sales, and result have no impact on these figures of the SMS group in 2012.

PROSPECTS

FORECAST

ACQUISITION OF MAJORITY SHARE OF PAUL WURTH GROUP, LUXEMBOURG

6

1) Average for the year, including apprentices

Order intake in the past business year amounted to EUR 2,835 million, which was 17% (EUR 588 million) down on the previous year. Business Area SMS Siemag generated a 24% lower order intake of EUR 1,519 million (2011: EUR 2,007 million). The decline in order intake by Business Area SMS Meer was 16% at a total of EUR 1,152 million (2011: EUR 1,365 million). The elexis group contributed an order intake of EUR 180 million to the SMS group.

This is how order intake broke down according to global regions:

Europe including Russia: 32% Asia: 43% America: 23% Africa: 2%

SMS group sales increased in 2012 by 5% to EUR 3,237 million (2011: EUR 3,070 million).

This was largely down to Business Area SMS Siemag, with an increase of 4%, or EUR 72 million, to EUR 1,889 million. As in the previous year, sales by SMS Meer totaled EUR 1,197 million. elexis achieved sales of EUR 168 million.

The figure for orders in hand was EUR 5,377 million. The increase compared to the previous year (2011: EUR 4,862 million) is due to the initial consolidation of Paul Wurth (EUR 1,059 million). Due to the long processing time, this represents a sufficient basis for further ca-pacity utilization.

The average number of employees1) in the SMS group increased by 1,345 to 11,822 (2011: 10,477).

The number of employees in Business Area SMS Siemag increased against the previous year by 420, reaching an average over 2012 of 7,248 (2011: 6,828). That breaks down into 4,192 employees in Germany and 3,056 abroad. Essentially, this increase is attributable to the initial consolidation of the Chinese company SMS Siemag Technology (Suzhou) Co. Ltd. and the acquisition of the majority share in ARES Industrial Furnaces (Tianjin) Co. Ltd. in China. Furthermore, we expanded our workforce especially in the growth market of India.

In Business Area SMS Meer, the average number of employees in 2012 was 3,431 (2011: 3,205). The main reason for this increase was new recruitment at our companies in China and India as well as the initial consolidation of SMS Elotherm North America, LLC in the USA. In total, 2,112 employees were on our payroll in Germany and 1,319 abroad.

The further increase in the average employee figure is due to the initial consolidation of Paul Wurth and the first full-year’s inclusion of the elexis group.

As a result of the high level of orders in hand, all our departments were fully utilized in the past business year. Utilization of our engineering and manufacturing capacities is ensured into the second quarter of 2013.

ORDER INTAKE

SALES

ORDER BACKLOG

EMPLOYEES

7

8


The pre-tax result of the SMS group in the 2012 business year was EUR 258 million, which was slightly below that of the previous year (EUR 265 million). The profit on sales was 8.0%.

Mainly due to a higher profit retention, the equity ratio increased in 2012 to 20.7%.

Committed to boosting our competitiveness, our Business Areas have decided on extensive steps to cut costs. The objective is to significantly reduce our own costs along the entire value adding chain, securing an edge over our competitors.

We have drawn up cost-cutting programs in the areas of material overheads, product costs, purchasing and procurement costs, and manufacturing costs. These are currently being im-plemented.

Gross liquidity from securities and liquid assets has contracted by EUR 442 million to EUR 2,129 million (2011: EUR 2,571 million). The outflow of funds from business operations of EUR 344 million, from investments of EUR 169 million, and from financing activities of EUR 6 million contrasts with an inflow of funds from exchange rate and consolidation changes of EUR 77 million. What most affected the outflow of funds from business operations was the decline in customer down payments received due to the low order intake. The outflow of funds in the form of investment activities is connected with the establishment or expansion of service companies and further capital investments. All this results in a net liquidity after deduction of financial obligations of EUR 1,980 million (2011: EUR 2,466 million).

FINANCAL RESULTS

LIQUIDITY

COST-CUTTING ACTIVITIES

9

Dr.-Ing.Joachim Schönbeck Eckhard SchulteBurkhard Dahmen

Dr.-Ing. E. h.Heinrich Weiss

Investments in material and immaterial assets in the 2012 business year came to EUR 124 million (2011: EUR 84 million). Investment in Business Area SMS Siemag focused on the establishment of further manufacturing and service workshops in China, India, Brazil, and the USA. As in 2011, further funds went into the modernization of our Hilchenbach location, including investment in new machines. Also committed to bolstering its competitiveness through modernization, Business Area SMS Meer upgraded its Mönchengladbach and Aachen facilities. The Schlafhorst Business Park in Mönchengladbach-Dahl was acquired from the Swiss Oerlikon Group in early 2013. The site borders directly on the headquarters of SMS Meer. Further investment went into improved IT systems for optimal support of com-pany processes.

Looking ahead to 2013, we are planning total investments of EUR 146 million. Core proj-ects here are investments in the production locations Mönchengladbach and Aachen (2020 Workshop Program), as well as in production workshops (China/India) and service workshops around the world. Investment in IT and machine replacements remains at the usual level.

Financial investments in the 2012 business year totaled EUR 419 million (2011: EUR 192 million). Most of this went on the takeover of the majority share in Paul Wurth S.A., Luxem-bourg (share as of December 31, 2012: 59.1%).

INVESTMENT


The SMS group is, under the roof of SMS Holding GmbH, a group of global players in plant construction and mechanical engineer-ing for the steel and nonferrous metals processing industry. It consists of the two Business Areas SMS Siemag and SMS Meer as well as industrial participations. As the financial organization, SMS Holding GmbH is responsible for strategic planning and controlling. The sole owner of the SMS group is Siemag Weiss GmbH & Co. KG, the holding of the Weiss entrepreneurial family.

STRUCTURE OF THE SMS GROUP


COKE OVEN AND

SINTERING PLANTS

BLAST FURNACE

PLANTS

Coke oven plants Coke oven batteries Coke oven auxiliary plants

Coke oven automation and control

Coke handling machines Sintering plants Sinter cooling Sintering off-gas cleaning (EFA™)

Environmental protec-tion technologies for the metals industry

Steelmaking by-product recycling plants

Blast furnace construc-tion and modernization

Stockhouse and charging systems

Blast furnace top charging technology

Blast furnace proper design

Blast furnace lining and cooling

Hot blast stoves and energy recovery

Blast furnace gas cleaning systems

Furnace automation and control systems

Coal grinding, drying, and pulverized coal injection plants

Tapping and measuring technology

Slag granulation Pig casting machines

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FURNACE

TECHNOLOGY

STRIP

PROCESSING

LINES

ALUMINUM

PLANTS

COLD ROLLING

MILLS

HOT ROLLING

MILLS

CONTINUOUS

CASTERS

Furnaces and cooling systemsfor heat treat-ment of flat steel and NF metals

Continuous casting technology for slabs

CSP® technology

Filter and environment protection plants

Hot rolling mills Steckel rolling mills

Heavy plate mills

CSP® technology


Water supply systems

Logistics systems

Tandem cold rolling mills

Reversing rolling mills

Skin-pass mills Multi-roll mills Filter and environment protection plants

Logistics systems

Hot strip rolling mills

Tandem cold rolling mills

Individual stands Thin strip stands Annealing lines Coating lines Anodizing lines Shear and slit-ting equipment


Logistics systems

Pickling lines Hot-dip galvanizing lines

Annealing lines Coating lines Annealing and pickling lines for stainless steel

Shear and slit-ting equipment

Regeneration, filter and environment protection plants

METAL L UR -

GICAL AND

STEELMAKING

TECHNOLOGY

Reduction metallurgy

Converters Electric steelworks

CONARC® furnaces

Secondary metallurgy

Tertiarymetallurgy


Dedusting plants

ELECTRICS AND AUTOMATION

SERVICE

1313

STEEL-

MAKING/

CONTINUOUS

CASTING

TUBE & PIPE

PLANTS

FORGING

PLANTS

LONG

PRODUCTS

PLANTS

NF METALS

PLANTS

HEAT

TREATMENT

TECHNOLOGY

AUTOMATION

TECHNOLOGY

Control technology

Quality assur-ance systems

Drive technology

SERVICE


Minimills Steelmaking Electric arc furnaces (AC/DC)

Ladle furnaces VD/VOD plants Dust collecting systems

Continuous casters

– Billets – Blooms – Beam blanks – Round products

Seamless tube plants

– PQF® plants – CPE plants – Plug mills – Hot pilger

mills – Assel mills Welded tube plants

– ERW plants – Large-diame-

ter pipe plants – Spiral pipe

welding plants Finishing lines Cold pilger mills CARTA® Technology System

LASUS® hot tube wall thickness measurement

Open-die forging presses

Closed-die forging presses

Powder presses Radial forging machines

Wheel rolling machines

Forging rolls Ring rolling machines

Forging manipulators

Extrusion presses

Special presses

Hot rolling mills – Beams – Rails – Sheet piles – Sections – Light sections – Wire rods – Merchant bars Straightening machines

Peeling machines

Drawing machines

Grinding and polishing machines

Aluminum plants Smelting and casting furnaces

Casters – Vertical – Horizontal Continuous homogenization plants

Chamber homog-enization plants

Ingot scalpers Band saws Brazing machines Plate stretchers

Copper plants CONTIROD® plants

directube® plants VERTICAST® plants Straighteners Drawing plants Inner grooving lines

Induction technology/ Tempering plants Hardening machines

Inductive heating plants

Laser exposure systems

Inductive tube welding

Inductive seam annealing Quench and temper lines

– Bars and tubes – Conventional

and inductiveHeating furnaces Conventional heating furnaces

– Heating furnaces – Reheating

furnaces – Holding furnaces – Rotary hearth

furnaces

INTEGRATED PLANTS

14

Annual Report 2012SMS Siemag Annual Report 2012SMS Siemag

SMS SIEMAG

The Business Area SMS Siemag has noticed a reluctance among its customers to place orders. Order intake in the 2012 business year was worth EUR 1,519 million, or 24% less than in 2011. Sales increased by 4% to EUR 1,889 million.

It is not only the weak demand for steel that has long been holding back orders by our custom-ers, but also the effects on the global financing system from the national debt and euro crises.

Two companies, one standard: Asserting our technological leadership in metallurgical plant and machinery construction. Now, SMS Siemag works together with Paul Wurth to cover the entire steel production process chain – from the ore to the finished product. That means our customers benefit from extensive synergies in engineering, green technology, and worldwide service from one source.

To ensure high quality, SMS Siemag remains committed to producing the most complex com-ponents of its machinery and plants in Germany. That is why we have invested heavily over recent years in the expansion and modernization of the SMS Siemag production facilities in Hilchenbach. Simultaneously, we have expanded our workshop capacities in China and India. As part of this program, our newly built production plant in Zhangjiagang, near Shanghai, went into operation in mid-2012.

SMS SIEMAG NOTICES RELUCTANCE TO PLACE ORDERS

THE ENTIRE PROCESS CHAIN FROM ONE SOURCE

DUAL STRATEGY: GLOBALLY NETWORKED MANUFACTURING

Dieter Rosenthal,

Hot and Cold Rolling Mills,

Aluminum Plants

15

We also built a new service workshop in India. Here, it is mainly about better customer service on the ground as well as special products designed for the local market. These can be pro-duced at a lower price locally. That is how we guarantee the local supply and service shares increasingly demanded by customers in these countries in the usual SMS quality.

We work constantly to further cut manufacturing costs by focusing on production-optimized design, greater efficiency in logistics, plus increased productivity in both engineering and pro-duction. Using the same strategy as that pursued after the first financial crisis a few years ago, the company will make the most of the weaker order intake to drive technological development. Equally important is intensifying on-the-job training and qualification of our experienced core personnel as well as training new staff. We also improve our competitiveness by developing innovative green and energy-saving technologies.

Carrying out these activities means we strengthen our ability to supply both high-tech and low-cost plant and machinery. That enables our customers to produce even more competitively.

EVEN BETTER COMPETITIVENESS

Burkhard Dahmen,

President & CEO

Marc Solvi,

Paul Wurth

Harald Rackel,

Strip Processing Lines,

Furnace Technology,

Electrics and Automation

Eckhard Schulte,

Commercial

Dr. Guido Kleinschmidt,

Metallurgical Technology

and Continuous Casters,

Service

Managing Board of SMS Siemag AG

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Annual Report 2012Paul Wurth

COKE OVEN PLANTS, SINTERING PLANTS, AND BLAST FURNACES

Paul Wurth joins the SMS group

Economic situation and result in 2012

Coke oven technology, blast furnaces

Green and energy-efficient solutions

Other divisions

Tapping into new markets

Future prospects

PAUL WURTH JOINS SMS GROUP

Following the purchase by SMS Holding GmbH of a 59.1% share in the company, Paul Wurth S.A. offi-cially joined the SMS group on December 17, 2012. The specialist in technology for the liquid phase will in future work closely with SMS Siemag.

ECONOMIC SITUATION AND RESULT IN 2012

Although global crude steel production and consump-tion again reached record highs in 2012, the national debt crisis in the eurozone and lower than expected growth in China impacted negatively on the global economy, and held back investment in all areas.

Yet despite this difficult economic situation, the Paul Wurth group booked solid order intake of EUR 507.6 million in 2012.

COKE OVEN TECHNOLOGY

A prime example of how the expertise of Paul Wurth ensures success was the construction and commis-sioning of a second coke oven battery for Zentral-kokerei in Dillingen, Germany, in October 2012.

The group also attracted two further major orders for the design and supply of key components for two coke oven batteries together with gas treatment facilities.

These orders, placed by Posco Engineering & Con-struction for Companhia Siderúrgica do Pecém in Brazil and Bhushan Power & Steel in India, are typical additions to the already existing list of references.

BLAST FURNACES

Today, the core competence of Paul Wurth is com-plete blast furnace construction. Since construction of the first new blast furnace in 1954, the group has collected more than 220 references consisting of projects in which it performed major development and implementation work for new plants or revamps. It variously acted as a planning company, furnace builder, technology and key equipment supplier, construction management company, leader of inter-national consortiums, or supplier of turnkey plants.

Over the last 15 years, Paul Wurth has regularly implemented several projects like these per year, making it a leader on the global blast furnace market.

Worldwide, but

particularly in Europe and

North and South America,

steel companies were

reluctant to invest

18


Particularly at the beginning of 2012, there was intensive work on two construction sites in India to commission the new blast furnaces No. 3 at Rash-triya Ispat Nigam Ltd., in Visakhapatman, and “I” at Tata Steel in Jamshedpur. Other blast furnace construction projects at Bhushan Steel and Bhushan Power & Steel progressed according to schedule in the past business year.

Looking at the new orders in 2012, it is especially worth mentioning that Paul Wurth received a study order from the Indonesian Gunung Steel Group. The task was to design a complete hot metal production complex for the Cibitung location. This ambitious expansion project comprises a new blast furnace, a coking plant, and a complete sintering plant.

GREEN AND ENERGY-EFFICIENT SOLUTIONS

Today, the years of R&D work Paul Wurth has put into green and energy-efficient solutions, also in 2012, are paying off in concrete applications. Construc-tion started in October 2012 on an industrial pilot plant for the dry granulation of blast furnace slag on the Dillinger Hütte works site in Germany. This process developed by Paul Wurth enables recovery of the energy in the slag, while saving water and retaining the physical properties of the slag after it is granulated into sand.

Then there is the PLD process (Paul Wurth Lhoist Deoiling) for de-oiling steelmaking plant sludge and rolling mill scale. It is being subsidized by the European Commission and will soon be applied in a test plant. Already, steel producers are watching both projects with great interest.

OTHER DIVISIONS

The Paul Wurth subsidiary CTI Systems also contrib-uted significantly to order intake in 2012, with orders for teleplatforms, crane and docking systems for the aviation industry, complete painting solutions for the agricultural equipment industry, and fully automated storage systems for an aluminum coil manufacturer.

Furthermore, in the area of project planning for public and private construction, Paul Wurth added to its references above all in the education sector (with the opening of two school buildings) and in transport infrastructure (with engineering orders for railroad maintenance buildings).

TAPPING INTO NEW MARKETS

In November 2012, Paul Wurth established a joint venture with Japanese company IHI Corporation. Operating under the name Paul Wurth IHI Co. Ltd., the joint venture will give the group access to the difficult-to-reach Japanese market, enabling it to supply modern blast furnace and coking technology to the country in the future.

PROSPECTS

Although new construction projects for large plants in Europe or North and South America are un -likely in the near future, the large product range of Paul Wurth ensures that even under changed mar-ket conditions, its expertise and services will be in demand. Further reasons for cautious optimism are the many synergies that result from joining the SMS group, as well as the growth prospects of some Asian markets.

20


20

MAJOR ORDERS COMMISSIONING PROJECTS

TECHNOLOGY FOR HOT METAL PRODUCTION− Posco Engineering & Construction Co. Ltd., South Korea;

engineering and supply of key components for two coke oven batteries including gas treatment facilities for Companhia Siderúrgica do Pecém in Brazil

− Bhushan Power & Steel Ltd., India; engineering and supply of key components for two coke oven batteries including gas treatment facilities

− Voestalpine Stahl, Austria; reline of 4 hot blast stoves at blast furnace A including heat recovery

− Dneprovsky Metallurgichesky Kombinat im. F.E. Dzerzhinskogo (DMKD), Ukraine; engineering and supply of key components for coal grinding, drying and pulverised coal injection plants

− ThyssenKrupp Steel Europe, Germany; engineering and supply of a Bell Less Top® system for blast furnace No. 2

− Trinecke Zelezarny, a.s., Czech Republic; engineering and supply of key components for coal grinding, drying and pulverised coal injection plants for blast furnaces Nos. 4 & 6

− Plakoma GmbH, Germany; supply of a turnkey dedusting system for the flame cutting machine of continuous caster No. 6 of Dillinger Hütte

CTI SYSTEMS S.A.− Airbus, France;

development, manufacturing, delivery, and assembly of loading equipment for the Beluga transport aircraft

− AGCO Italia S.p.A, Italy; development and turnkey delivery of an automated paint shop for agricultural machinery

− Kamensk Uralski Metallurgical Works, Russia; engineering and supply of an automated high-bay coil warehouse for an aluminum rolling mill

PAUL WURTH CIVIL & ENVIRONMENTAL ENGINEERING− DB International, Germany;

technical engineering for the new construction of a workshop for the diesel network in Cologne-Deutz

− DB International, Germany; technical engineering for the construction of a new maintenance workshop for high-speed trains in Cologne-Nippes

− Finance Ministry, Luxembourg; alteration and renovation of prefab building “Lycée de la 2e chance”

TECHNOLOGY FOR HOT METAL PRODUCTION− Rashtriya Ispat Nigam Ltd., India;

new blast furnace No. 3 in Visakhapatnam works (useful volume: 3,814 m3)

− Tata Steel, India; new blast furnace “I” in Jamshedpur works (useful volume: 3,814 m3)

− JSC Evraz Nizhniy Tagil, Russia; coal grinding, drying and pulverised coal injection plants for blast furnace No. 5

− Zentralkokerei Saar, Germany; new construction of coke oven battery B1

CTI SYSTEMS S.A.− Airbus, Germany;

manual workstation and transport systems− Krone, Turkey; automated e-coat, powder-coat

and assembly line for commercial vehicles− Gulf News, Dubai;

rotary lift shuttle system for printing works

PAUL WURTH CIVIL & ENVIRONMENTAL ENGINEERING− Public Buildings Administration, Luxembourg;

opening of European School II in Mamer; technical construction assistance and financing services from Paul Wurth S.A.

− Public Buildings Administration, Luxembourg; opening of Sports academy in Luxembourg; planning and construction by Paul Wurth S.A.

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Location: Luxembourg

PAUL WURTH

COMPANY PROFILE

Headquartered in Luxembourg, the Paul Wurth group is one of the world’s leading plant and machine manufac-turers in the field of hot metal production. Its technologi-cally advanced solutions perfectly complement the range of the SMS group. With some 1,500 employees and 27 locations, Paul Wurth is a market leader in the design and implementation of complete blast furnace plants, coking plants, environmental protection technologies for the metals industry, and by-product recycling plants. Included in the product range for hot metal production are, in particular, blast furnace charging systems, pulver-ised coal grinding, drying and injection plants, refractory linings, cooling systems, hot blast stoves, slag granu-lation systems, and blast furnace automation systems.

Apart from activities relating to the steel industry, Paul Wurth in Luxembourg provides tailored services, in particular integral planning and interdisciplinary

engineering for town planning, civil engineering, and infrastructure projects. Furthermore, with its subsidi-ary CTI Systems S.A., Paul Wurth also offers a modern, powerful partner for the supply and installation of fully integrated, automated manufacturing solutions, for the heavy load area.

Paul Wurth corporate cultureThe performance and cohesion of the Paul Wurth group are based on a series of common values and principles. Thanks to systematic training and information programs, the health and safety of employees and contractors as well as a zero-accident policy have become the key pil-lars of the Paul Wurth corporate culture. Also important, sustainability and energy efficiency are integral to the implementation of innovative projects and green tech-nologies. Crucial to the success of the Paul Wurth group are its employees and their innovative power. Regular training programs contribute to expanding their skills and loyalty to the company.

Marc Solvi (CEO Paul Wurth), Dr. Heinrich Weiss (Chairman & CEO SMS group), Michel Wurth (Chairman Paul Wurth), Burkhard Dahmen (President & CEO SMS Siemag) during the joint press conference on July 25, 2012 in Luxembourg.

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Annual Report 2012SMS Siemag

22

Union with Paul Wurth is important above all for metallurgical technology

From one source: pretreatment, secondary, and tertiary metallurgy

First X-Melt® Conarc® with energy recovery

Order for green technology from India

Extensive modernization of the BOF steelmaking plant of Kardemir A.S., Turkey

Product innovations

METALLURGICAL PLANT AND STEELMAKING TECHNOLOGY

Compared to the previous year, order intake by the Metallurgical Technology Division declined in 2012. The main reason was the delayed implementation of major orders. Sales were also slightly down on 2011.

Considering the sustained euro crisis, development for 2013 is difficult to predict. Relative to the order intake of 2012, the volume of letters of intent (LOI) is high, but it is very hard to say when we will get the final go-ahead for individual projects.

There is continued high project activity in steelmak-ing plants with a focus on engineering as well as extensive expansions and revamps. Last year, the focus of orders from European countries was on the replacement of old plants, while we attracted orders for new plants from the Indian market.

This explains how we were able to maintain a constant high market share for BOF converter steelmaking plants despite the volatile market.

Expanding their secondary metallurgy capacities, our customers are counting more and more on the production of high-quality steel grades. What is more, they are very interested in green technology. Unfortunately, economic uncertainty makes them un-willing to invest. Based on the project situation, we expect orders for revamps and, above all, extensive expansions of existing plants.

Greenfield plants and investments in new plants will be the exception. We anticipate orders from the growth market of India, mainly for BOF converters.

There are good prospects of orders for submerged-arc furnaces and smelting furnaces from companies in Russia, the former Soviet Union states, China, and Africa. The market volume remains at a high level. Most in demand are converters for special process-es as well as equipment for waste recycling and energy recovery.

UNION WITH PAUL WURTH IS IMPORTANT ABOVE ALL FOR METALLURGICAL TECHNOLOGY

The product ranges of Paul Wurth and SMS Siemag complement each other perfectly. While Paul Wurth is a leader in blast furnace construction with a strong market position in upstream equipment and plants for treating the input material, SMS Siemag supplies the downstream plants in the process chain: the steelmaking plants. There will be further synergy effects in the fields of green technology and service.

The merger creates the basis for the further growth of both companies.

Right at the core of our strategy is the adaptation and further development of our product range, above all with the aim of being able to supply all components for the entire process chain.

Our customers

continue to invest in

quality improvement

24


24

FROM ONE SOURCE: PRE-TREATMENT, SECONDARY, AND TERTIARY METALLURGY

Attracting a contract from Tata Stocksbridge to pro-vide the engineering for a VIM (vacuum induction melting) plant represents a huge success.

We launched our new tertiary metallurgy products on the market just under one and a half years ago, and this order is confirmation of our customer-centered and results-oriented approach.

The other tertiary metallurgy processes in our range apart from VIM are ESR (electro slag remelting) and VAR (vacuum arc remelting).

FOCUS ON ENVIRONMENT

But that is not the only aspect of our product expan-sion program. We have also introduced green and energy-saving components. SMS Siemag supplies innovative solutions for water supply systems, espe-cially for freshwater purification, improved cooling circulation systems, wastewater treatment solutions, and plants for recycling water.

Also included in our broad product range of heating plants and steam generators are systems for the uti-lization of process gases, for instance using steam

for production purposes or to generate electricity in a complete power supply process.

FIRST X-MELT® CONARC® WITH ENERGY RECOVERY

The Chinese steel producer Taiyuan Iron & Steel (Group) Co. Ltd (Tisco) has awarded SMS Siemag a contract for the planning and supply of an X-Melt® Conarc® furnace unit with energy recovery for its new long products line in Taiyuan, northern China.

The plant is capable of saving around 25,000 t of CO2 emissions per year. This is because it channels the hot (1,250 °C) waste gas from the Conarc® through a boiler system. Here, the gas is cooled and much of the thermal energy converted to steam that is utilized in the steelmaking plant. The two boiler units can generate up to 60 t of steam per hour.

ORDER FROM INDIA FOR GREEN TECHNOLOGY – VIZAG STEEL CONVERTER STEELMAKING PLANT

Visakhapatnam Steel Plant (Vizag Steel), India, has chosen SMS Siemag as the leader of a consortium for the revamp and extension of its converter steel-making plant No. 1 at its Visakhapatnam location.

Tertiary metallurgy

cost-effectively produces

isotropic materials spe -

cifically for the aviation

and aerospace industry,

electricity and energy

generation, automotive

manufacturing, and the oil

and gas industry

25

The objective is to increase annual production from 3.2 to 3.6 million t of steel as well as to im-prove the environmental footprint by installing an SMS Siemag gas cleaning plant.

Included in the scope of supply are the engineering and manufacture of core components for three new 150-t converter vessels with tilt drives, the asso-ciated oxygen lance systems and bottom flushing equipment, plus modernization of the primary dust collecting system, and supply of a secondary dust collecting system. The method used for gas cleaning is wet dedusting with Venturi washers.

SMS Siemag is responsible for the complete assem-bly as well as commissioning. Steelmaking plant No. 1 will feature X-Pact® electrics and automation for the main and auxiliary plants.

Commissioning is scheduled for the first quarter of 2014. The company plans to produce 2.8 million t of liquid steel per year with its new steelmaking plant No. 2.

RAIL MANUFACTURER IN TURKEY AWARDS ORDER FOR EXTENSIVE REVAMP OF BOF STEELMAKING PLANT

Kardemir A.S. awarded us an order for the extensive revamp and expansion of its BOF converter steel-making plant in Karabük, Turkey.

Specialized in long products, Turkey’s only rail man -ufacturer aims to increase its production from 1.3 million t to a total of 3 million t per year.

For our customer Vizag

Steel, SMS Siemag is

currently already erecting

an X-Melt® converter

steelmaking plant at the

same location

26


26

It will achieve this target by increasing the volume of the two existing converters from 67 to 121 m3 each and installing a new 120-t converter. Also included in the supply package are an oxygen lance, bottom flushing system, tilt drive, material supply system, and a new gas cleaning system for the new converter.

The three converters will each be equipped with new sublances and slag retention systems, plus lamella suspension systems developed by SMS Siemag.

It is only possible to increase the volume of the two existing furnaces and there-fore achieve a higher tapping weight of 120 t by using the SMS Siemag-pat-ented lamella system with its special geometry.

SMS Siemag is supplying the complete X-Pact® electrics and automation for all three converters (levels 0, 1, and 2). The two existing converters will also be integrated in the level 2 automation.

The X-Pact® Logistic Manager will be implemented in the steelmaking plant material management sys-tem. Developed by SMS Siemag, this software can be used to flexibly adjust the material supply system for all three converters to new process requirements. No changes in the control system are necessary.

Also included in the order is a control system for all the steelmaking plant’s production units, including the continuous casters. It provides a thorough over-view of the production performance and quality of the individual plants.

PRODUCT INNOVATIONS

Teaming up with our customers, we test and try out pilot versions of new developments. The focus here is on metallurgical processes and the corresponding technology, above all for special processes.

Currently, we are building the pilot plant for a shaft with automatic scrap feed (primary energy melter, PEM) at ArcelorMittal Gent, in Belgium. The scrap is melted by gas and oxygen burners, then charged into the converter with a pig iron ladle. This increases the production performance of the converters.

Together with our customer Kazchrome, Kazakhstan, we successfully tested a process to refine ferrochro-mium medium carbon in a vacuum AOD converter.

Our automation

solutions can achieve

low operating costs with

variable input sub-

stances, and reduce

consumption

28


28


SPECIAL METALLURGY/SUBMERGED-ARC FURNACES– Magnesit Group, Russia;

MgO electric smelting furnace – First Quantum, Zambia;

copper slag cleaning furnace– Asia Cement, Malaysia;

two 24-MW silicon submerged-arc furnaces

STEELMAKING PLANTS– Vizag Steel, India;

modernization of the BOF steelmaking plant– Kardemir A.S., Turkey;

addition of a new converter and modernization of the two existing converters in the BOF steelmaking plant

– Taiyuan Iron & Steel, China; supply of an 80-t Conarc® furnace unit with energy recovery

– ThyssenKrupp Steel, Germany; new 400-t converter vessel

– PT. Gunung, Indonesia; supply of an ARCCESS® electric-arc furnace with green technology and a ladle furnace

– Tubos Reunidos, Spain; 110-t RH plant– Tata Stocksbridge, UK;

engineering for an 18/8-t VIM X-eed plant– SAIL (Steel Authority Of India Limited) Rourkela Steel

Plant, Rourkela Orissa, India; connection of a secondary dust collecting system for converters #1 and #2 to the secondary dust collecting system for converter #3 of the SMS II steelmaking plant

SPECIAL METALLURGY/SUBMERGED-ARC FURNACES– Vale, Rio de Janeiro, Brazil;

120-t MVA AC rectangular furnace for ferronickel– Erdos Junzheng Energy & Chemical Industry Co. Ltd.,

China; two 46.5-MW calcium carbide submerged-arc furnaces

– Basco, Kazakhstan; 30-MVA submerged-arc furnace for silicon metal

STEELMAKING PLANTS– Tata Steel, India; two 165-t BOF converters– Tata Steel, India; two 170-t BOF converters (LD III)– Dragon Steel Corporation, Taiwan;

BOF converter steelmaking plant and 210-t RH plant (Phase 2)

– China Steel Corporation, Taiwan; 270-t RH plant– Essar Steel, India;

200-t Conarc® (Phase 2) and 200-t RH plant– OMZ, Russia;

secondary metallurgy center (120-t LF, VD, VOD)– Elwood National Steel, USA;

40-t VOD plant with mechanical vacuum pump

Location: India

TATA STEEL

CONVERTER STEELMAKING AND CSP® PLANT: EXPANSION TO 10 MILLION TPY IN JAMSHEDPUR

As part of the celebrations to mark its 173rd anniversa-ry in March 2012, the Indian company Tata Steel Ltd., put into operation a converter steelmaking plant and a CSP® (Compact Strip Production) plant. SMS Siemag supplied all the mechanical equipment as well as the entire X-Pact® electrics and automation. Also in the steelmaking plant, the first station of the new pig iron desulphurization plant built by SMS Mevac UK and SMS India went on stream.

Ratan Tata, CEO, and Cyrus Mistri, Tata Sons, as well as Burkhard Dahmen, CEO of SMS Siemag, attended the inauguration ceremony for the steelmaking plant and the CSP® plant, alongside other guests of honor. Step by step, the world’s sixth-largest steel producer has increased its annual production capacity at the Jamshedpur location from seven to ten million t. With the converter steelmaking plant and the CSP® plant supplied by SMS Siemag, Tata Steel has fulfilled its ambitious “Tata Growth Plan”. To mark the occasion, Ratan Tata and Cyrus Mistri signed the first coil produced on the CSP® plant. Together Burkhard Dahmen and Ratan Tata cut the ribbon. The business relations between Tata Steel and SMS Siemag stretch back to the 1980s, when SMS first supplied equipment to Tata Steel. “Our good cooperation is based above all on trust and past experience from joint proj-ects we have successfully accomplished together,” said Burkhard Dahmen.

During the official ceremony, the plants were put into operation witnessed by the Vice Chairman of Tata Steel, Balasubramanian Muthuraman, General Director Hemant Nerurkar, and other guests of honor. Responsible for key equipment for the steelmaking plant, SMS Siemag supplied two converter vessels with maximum tapping volumes of 170 t each, as well as the transmissions with pneumatic emergency drives, lance systems, and the refractory lining devices. The converters feature maintenance-free SMS Siemag lamella technology. The primary waste gas systems of the two new convert-ers work with the proven Baumco system that involves wet cleaning and subsequent re-utilization of the waste gases for resource-saving energy utilization. There are two electric filter units for secondary dust collecting.

Ratan Tata (CEO, Tata Sons) cuts the ribbon together with Burkhard Dahmen (CEO, SMS Siemag).

[1] | In 2012, Tata Steel awarded SMS Siemag the distinction “Best Supplier”. [2] | One of the two 170-t converters in LD Steel-making plant 3.

[1] [2]

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30

Modernization of the continuous caster at JSPL with India’s largest slab cross-section

Revamping of continuous caster No. 1 at ThyssenKrupp Steel Europe

Habaş, Turkey, starts production of flat products

Bhushan Steel commissions India’s longest slab caster

Pilot plant at Salzgitter Flachstahl, Germany

STEC-Roll® – easy assembly, easy maintenance

CONTINUOUS CASTERS FOR FLAT PRODUCTS

Order intake in 2012 was slightly down on the pre-vious year, while we achieved a modest increase in sales. New on the books was an order from Turkey for a slab continuous caster. We expect the current low willingness to invest in new plants to continue in 2013.

However, our customers are keen to produce high-er-quality steels, and this resulted in a number of orders for extensive revamps and the expansion of existing plants. The main markets for this kind of business are increasingly in the USA and South America, as well as in Europe and China.

Due to the massive drive for industrialization in Saudi Arabia and the Middle East, we currently anticipate high investments there in CSP® thin slab technology. Following many years of low investment in the USA, re-industrialization is due, and we expect new orders from this country as well.

MODERNIZATION OF THE CONTINUOUS CASTER AT JSPL WITH INDIA’S LARGEST SLAB CROSS-SECTION

SMS Siemag is modernizing a slab caster for Jindal Steel & Power Limited (JSPL) at its Raigarh location in Chhattisgarh, India. The purpose of the revamping is to expand the product program in terms of quality range and slab dimensions. So far, the maximum slab format has been 2,600 mm wide and 280 mm thick. Now it is being increased to 3,000 mm wide and 300 mm thick. The plant is designed for an annual production of 1.3 million t of steel slabs. Commis-sioning is scheduled for the end of 2013.

To achieve the required modernization, we are sup-plying an entirely new slab guide system, the cold strand system, new molds, and a new slab removal station including slab cutting devices. The ladle tur-ret will remain in place. It is important to upgrade the existing hydraulic systems so they can meet the higher standards. We are also supplying the entire X-Pact® electrics and automation complete with

control systems and process models with various ISC (intelligent slab casting) modules that determine quality and production performance. Included here are remotely adjustable mold narrow sides to alter the slab width, (online) conicity setting during casting, and adjustable segments for dynamic soft reduction.

These solutions, combined with width-dependent dual-substance secondary cooling and the dynam-ic solidification control process model, guarantee slabs with excellent internal quality. Furthermore, our integrated production quality system IPQSslab® monitors all the relevant measured data to ensure slab quality.

JSPL plans to extend

its range to include

sophisticated tube

grades (API), high-carbon

steels, and micro-alloy,

peritectic grades

32


32

ALTERATION OF CONTINUOUS CASTER NO. 1 AT THYSSENKRUPP STEEL EUROPE IN DUISBURG-BEECKERWERTH, GERMANY

ThyssenKrupp Steel Europe already engaged us to provide the engineering for its continuous caster No. 1 in the company’s facility in Duisburg-Beeckerwerth, Germany, in March 2012. Then we also received an order for the alteration of the same plant. This is where the company produces high-quality input stock for high-strength steel, ULC and IF steels, as well as tinplate, sheet, skelp, and heavy plate. The planned alteration of the two-strand line will improve the slab quality and expand the product range.

SMS Siemag originally supplied the continuous caster No. 1 in 1974 and revamped it in 1985 and 1998. “We already have very good experience of working with SMS Siemag,” says Heinz Liebig, Head of the Raw Steel Division at ThyssenKrupp Steel Europe. “The SMS engineers know the plant inside out and together with us, they find solutions that enable us to produce even better steel quality in the future.”

The plant is designed for slabs between 1,000 mm and 2,150 mm wide and 257 mm thick. It is being fit-ted with a dual-substance cooling system featuring

a cooling zone that can be adjusted according to the width (ten control loops per segment).

After the alteration, slabs will be dry cast as from segment nine. Included in the design is a strand extension section (segments 14 and 15).

The supply scope covers all the mechan-ical components, the entire XPact® elec-trics and automation, plus customer staff training, and supervising assembly and commissioning.

ThyssenKrupp Steel Europe awarded SMS Siemag this order after examining more than 400 technical criteria.

HABAŞ STARTS PRODUCTION OF FLAT PRODUCTS

The Turkish steel producer Habaş A.S. has ordered a slab continuous caster and a hot broad strip mill from us. Included in the supply package for the hot rolling mill are the mechanical equipment as well as the complete automation. The new plants will be built in Aliaşa on the Turkish Aegean coast and are due to go into production at the end of 2013. This will be the start of flat product manufacturing by Habaş.

True to the motto

“experience pays off”,

ThyssenKrupp is also

counting on SMS Siemag

for this modernization

33

Built for an annual production of 2.5 million t, the two-strand slab caster will produce slabs in gages of 200 mm and 225 mm and widths of 1,000 mm to 2,100 mm. The plant is designed as a vertical-bend continuous caster, and comes with resonance os-cillation to ensure high slab surface quality. To op-timize the internal quality of the slabs, it features dynamic segment control with our patented Soft Reduction technology.

The first construction stage of the compact hot strip mill is designed for an annual production of 2.5 mil-lion t of hot strip. Later, the capacity can be increased in stages to 4.5 million t per year. The strip widths range from 700 mm to 2,100 mm at gages of between 1.2 mm and 25.4 mm. Once it is completed, Habaş can use the plant to produce a wide spectrum of carbon steels as well as multi-phase and pipe grades up to strength class X80.

Even before commissioning, we will test and adjust the automation using our proven Plug & Work process.

BHUSHAN STEEL COMMISSIONS INDIA’S LONGEST SLAB CONTINUOUS CASTER

Bhushan Steel Ltd., India, has successfully com-missioned its second single-strand slab continuous caster supplied by SMS Siemag.

The high-performance plant with 19 segments and a metallurgical length of 42.1 m is currently India’s longest continuous caster. It is designed for quality slabs made of sophisticated steel grades in a gage of 230 mm and widths of up to 1,680 mm.

The supply scope covers the entire plant, process, and automation technology.

The caster features several ISC® (Intelligent Slab Casting) modules that determine the quality and production performance.

SMS Siemag

manu factures the core

components that de ter-

mine the product quality

in its workshops in

Hilchenbach, Germany

34


The hydraulic resonance oscillation and remotely adjustable mold sides make it possible to adjust the casting width between 800 mm and 1,680 mm during the ongoing process. Features essential for high internal slab quality are dynamic soft reduction, width-dependent dual-substance secondary cooling, and the technological process model dynamic solidi-fication control.

Our supply scope for the vertical bending caster comprises the mechanical equipment and X-Pact® electrics and automation, including level 2. Also included is assembly and commissioning supervision.

ENERGY RECOVERY FROM SLABS – PILOT PLANT AT SALZGITTER FLACHSTAHL, GERMANY

Another focus in our Continuous Casters Division is reducing greenhouse gases and improving the energy efficiency of our plants.

Teaming up with our customer Salzgitter Flachstahl, we are building the first plant for recovering energy from hot slabs.

The project is being subsidized by the Federal Gov-ernment of Germany, and uses the heat (convection)

from the slabs to generate steam. This has the po-tential to considerably improve the overall efficiency of the casting process.

HD MOLD – HIGH DEFINITION FOR THIN SLABS

In 2012, the Continuous Casters Division launched its newly developed HD mold with integrated optical temperature measurement onto the market.

Using fiber-optic cables, the HD mold delivers high-quality, high-accuracy measured values for an in-depth insight into the solidification process.

This means the strand shell formation can be precise-ly tracked across the height and width of the mold. The fiber-optic cables measure the temperature up to three times faster than other methods, and the process works faultlessly within electromagnetic fields. Even without additional cabling, the mea-suring point density is ten times higher than with conventional thermal elements, making it possible to measure extensively over the full mold height. The mold is maintenance-free for the plant operator.

Bhushan Steel produces

quality steel for the

automotive industry and

sophisticated pipe grades

for the Indian and interna-

tional markets

36


36


MODERNIZATIONS– Gallatin Steel, USA;

supply of the hydraulic oscillation system for a CSP® caster

– ThyssenKrupp Steel Europe, Duisburg-Beeckerwerth, Germany; revamping of continuous slab caster No. 1

– JSPL, India; modernization of a continuous slab caster– Nucor Steel, USA; modernization of the CSP® plant– Dillinger Hütte, Germany;

supply of spare parts for continuous slab casters 5 and 6

NEW PLANTS– Habaş, Turkey; supply of a continuous slab caster

– Bhushan Steel, India; continuous slab caster– Tata Steel, India; CSP® plant– Hyundai, Korea;

new oscillation system for a CSP® caster– Salzgitter Flachstahl, Germany; BCT® belt caster

Location: China

SMS SIEMAG

STEC-ROLL® – EASY ASSEMBLY, EASY MAINTENANCE

More than one hundred guests accepted the invitation from SMS Siemag to a symposium in Zhangjiagang (near Shanghai, China) dealing with state-of-the-art continuous casting technologies. The event focused on solutions for the production of high-quality slabs as well as technological innovations. There was plenty of information available from SMS Siemag experts, including the latest about electrics and automation, in-novative processes for copper mold plates, and the new STEC-Roll® strand guide rolls.

Participants were able to visit the workshop in Zhangji-agang to see at first hand the STEC-Roll® strand guide rolls developed by SMS Siemag.

The STEC-Roll® solution is a reliable and cost-effective alternative to drive rolls with split center bearings. The advantages of undivided bearing housings are that they prevent water from penetrating and extend the service life at similar load-bearing capacity. The STEC-Roll® is maintenance-friendly and makes it possible to disas-semble a roll line in one hour and reassemble it in two hours. What is more, no special tools are necessary.

STEC-Roll® strand guide rolls in our workshop in China.

Participants at the symposium.

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38

Modernization of the CSP® plant at Nucor in Berkeley, USA

Modernization of hot strip mill No. 1 at Baosteel, China

New heavy plate mill stand for Outokumpu VDM, Germany

Finishing train and laminar cooling at TKSE in Bochum, Germany

Cold plate straightener at Outokumpu Degerfors, Sweden, in operation

HOT ROLLING MILLS

Order intake and sales of hot rolling mills were below the previous year’s figures in 2012.

The market for new plants remains weak in 2013, with only a few projects ready for contracting. How-ever, we expect continued stable demand for our advanced modernization solutions.

MODERNIZATION OF THE CSP® PLANT AT NUCOR IN BERKELEY (USA)

Nucor Steel awarded SMS Siemag a contract to modernize its CSP® plant in Berkeley, South Carolina, USA. The revamp will increase the finished strip width from 1,680 mm to 1,880 mm and enable our customer to produce thinner strip. It is scheduled for completion in 2014.

With the expansion to 1,880 mm, the Nucor Steel CSP® plant will be one of the world’s widest.

To achieve this upgrade, SMS Siemag will widen the first casting strand and the rolling mill. The strand guide will be equipped with Liquid Core Reduction (LCR 3). This enables the stepless adjustment of the thin slab gage between 48 mm and 63 mm.

Inductive heaters will be installed between the CSP® furnace and the entry to the rolling mill so that Nu-cor Steel Berkeley can produce strip with reduced end gages. These heaters mean that Nucor Steel can increase the thin slab temperature as required,

achieving greater reductions in the mill stands. Furthermore, SMS Siemag will install a seventh finishing stand and new level 2 automation for the CSP® rolling mill.

The installation of an inductive heater upstream of the CSP® rolling mill will be the first time SMS Siemag has implemented part of its innova-tive eco-package, designed for further reduction of the energy consumption in CSP® plants. It means the equalizing furnaces can operate at lower tem-peratures, and the inductive heaters can precisely raise the thin slab temperatures whenever neces-sary. The result? Even better energy efficiency of the CSP® plant.

MODERNIZATION AT BAOSTEEL

We attracted an order from Baoshan Iron & Steel (Baosteel) to revamp its hot strip mill No. 1 in Shang-hai (China). Included here is delivery of a new slab sizing press and a primary scale washer, as well as replacement of a rougher. The modernization will increase production in the hot strip mill and the continuous caster as well as enabling more flexible coordination of the two production stages.

Baosteel’s 2,050-mm-wide hot strip mill No. 1 went into production in 1989, and has since then pro-duced more than 100 million t of hot strip. Back then, SMS Siemag supplied the entire hot strip mill, establishing itself as the leading vendor on the Chinese market.

Wider, thinner strip and

low energy consumption

40


The slab sizing press for Baosteel from SMS Siemag will be the eleventh in China, and the first installed in the country as part of a revamp.

It is a big advantage that the slab width can be set before rolling, because this enables Baosteel to reduce the number of casting formats in the plant, gaining more flexibility for its rolling programs.

Furthermore, casting slabs with a greater average width increases the rate of throughput in the con-tinuous caster.

In the roughing train, Baosteel is replacing the drive rod of mill stand R2. SMS Siemag is supplying two new slipper-type spindles for this job. Because of the higher drive torques, Baoshan Iron & Steel can save passes for many products, increasing production.

NEW HEAVY PLATE MILL STAND FOR OUTOKUMPU VDM

We are supplying a new 2.7-m heavy plate mill stand to Outokumpu VDM GmbH for its plant in Siegen, Germany. Equipped with the new mill stand, Out-okumpu VDM will, in the future, be able to supply plate with narrower product tolerances as well as heavier weights.

The SMS Siemag supply package comprises the mill stand with the X-Pact® electrics and automation, a new scale washer, complete assembly of the new

equipment, and modification of the foundations. Commissioning is due in summer 2013.

The new 2.7-m mill stand replaces the old machine dating from 1954. It comes with a rolling force of 60 MN and features hydraulic screwdowns and work roll bending. The mill stand will be pre-assembled and tested in the SMS Siemag workshop in Hilchenbach.

Also responsible for automation, SMS Siemag is supplying the level 1 systems and level 2 process models with pass schedule calculation. To make sure everything runs smoothly, SMS Siemag will set up the automation systems in our test center in advance and put them through their paces using our proven Plug & Work method.

FINISHING TRAIN AND LAMINAR COOLING IN TKSE WORKS IN BOCHUM, GERMANY

In the middle of 2012, SMS Siemag modernized the finishing train and cooling section in the Bochum plant of ThyssenKrupp Steel Europe (TKSE). Now TKSE achieves narrower hot strip tolerances and applies more cooling strategies and higher cooling rates to expand its already broad product range.

The upgrade of the finishing train comprised the installation of new hydraulic screwdowns in the F1 to F4 mill stands as well as an increase in the roll-ing force. Mill stands F3 to F5 were equipped with

40

SMS Siemag established

itself on the Chinese mar -

ket in 1989 with Baosteel’s

hot strip mill No. 1

41

CVC® plus systems and more powerful work-roll bending systems.

Furthermore, SMS Siemag installed a new level 2 automation system for the finishing train, including profile and flatness control.

Even before its integration, the new auto-mation ran parallel to the existing system. This listening mode option and the ability to switch between old and new automa-tion systems made it possible to test the full functionality of the new automation system without interrupting production.

SMS Siemag also entirely replaced the old spray cooling with a modern laminar cooling solution. It features reinforced cooling in the first sections for high cooling rates. Here again, SMS Siemag supplied the automation.

OUTOKUMPU DEGERFORS, SWEDEN

In September 2012, Outokumpu Stainless AB in De-gerfors commissioned a new cold plate leveler. It is

designed to level high-strength stainless plate with yield strengths of up to 1,100 N/mm².

Now Outokumpu Stainless can supply plate with improved flatness and benefits from an increased leveling capacity of 200,000 t per year. The cold plate leveler works with X-Pact® electrics and automation from SMS Siemag. Combining mechanical equip-ment and leveling models, the machine can be set to achieve the ideal flatness for any plate.

In 2013, SMS Siemag will expand the facility in Degerfors, Sweden with a thermal treatment line for stainless plate and a new water treatment plant. With two tempering furnaces and a quenching unit, Outokumpu Stainless will be able to improve product quality and thermally treat more plate. SMS Siemag will connect the thermal treatment line to upstream and downstream systems, and is also supplying the electrics and automation for both new plant sections.

The X-Pact® cooling

model calculates the

cooling water distribution

and quantity based on the

key physical processes

42


42


– Baoshan Iron & Steel, China; modernization of hot strip mill No. 1

– Outokumpu Stainless AB, Degerfors, Sweden; thermal treatment line

– Outokumpu Stainless AB, Degerfors, Sweden; water supply system

– Outokumpu VDM, Germany; 2.7-m heavy plate stand– Shandong Taishan Steel, China;

modernization of the Steckel rolling mill– Shougang International, China;

alteration of coiler No. 3– Nucor, USA; modernization of CSP® plant in Berkeley– Tata Steel, UK; modernization of rougher main drive– Minmetals Yingkou Medium Plate, China;

double side trimmer– Hyundai Steel, Korea; coil box for hot strip mill

– Azovstal, Ukraine; hot plate straightener– Salzgitter Flachstahl, Germany;

extension of Steckel rolling mill– NMLK DanSteel A/S, Denmark;

modernization of heavy plate stand– Tata Steel, Netherlands;

modernization of coiler No. 3 in hot strip rolling mill– ThyssenKrupp Steel Europe, Germany;

modernization of the finishing train and laminar cooling in the hot rolling mill in Bochum

– Handan Iron & Steel, China; modernization of heavy plate mill stand

– Baoshan Iron & Steel, China; pre-leveler for 4.2-m heavy plate rolling mill

– Shanxi Taigang Stainless, China; third coiler and more powerful laminar cooling for 2,250-mm hot strip mill

– Acroni, Slovenia; heavy plate stand with rougher function for Steckel rolling mill

– Outokumpu Stainless AB, Degerfors, Sweden; cold plate straightener

– Benxi Iron & Steel, China; more powerful laminar cooling for 2,300-mm hot strip rolling mill

Farbe?

Location: Denmark

NLMK DANSTEEL A/S

SUCCESSFUL MODERNIZATION: NLMK DANSTEEL HEAVY PLATE ROLLING MILL

Working in close cooperation, NLMK DanSteel A/S and SMS Siemag commissioned a new 4.2-m heavy plate mill stand, a new hot strip leveler, and the associated electrics and automation in Frederiksvaerk, Denmark, in October 2012. This revamp was one of the largest invest-ments in a European heavy plate mill in recent years.

Using its new mill stand, NLMK DanSteel can now pro-duce plate in widths of up to 4,000 mm and gages of 5 mm to 200 mm. The unit replaces the company’s 3.6-m mill stand dating from the 1960s. This is the third heavy plate mill in Europe to be equipped with our CVC® plus technology. It was also the first time ever that we implemented coaxial CVC® plus shifting, where the shift cylinder moves vertically to the work roll. The advantage here is a very large roll opening. Additional features are the hydraulic screwdowns and work roll bending equip-ment. The SMS Siemag supply package also included the new roll workshop.

To complete the job, SMS Siemag provided the entire electrics and automation for the plant. This comprised the complete level 1 and level 2 automation, the power supply and distribution (from 33 kV), and the drive tech-nology. What makes the control panel so comfortable to work with is its special ergonomic design.

Prior to installation, the entire automation system was tested in the SMS Siemag test center using our Plug & Work process. The heavy plate stand and the hot plate leveler were pre-assembled in the SMS Siemag workshop in Hilchenbach.

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44

ABUL KHAIR, Bangladesh, sets new quality standards on the local market

Quality-critical plant components manufactured at SMS Siemag

Top precision for copper rolling

High capacity and cost-efficiency in stainless steel production

Fully automatic roll change in 180 seconds

Rolling and skin-passing in a single mill stand

COLD ROLLING MILLS

Both order intake and sales declined in business year 2012. Taking account of the continued difficult market situation, we expect a stabilization of order intake and sales at a low level in 2013.

In recent years, rolling mills designed for the special requirements of local markets in threshold countries have become more and more important for the Cold Rolling Mills Division. Our customers are particu-larly interested in producing high-quality thin strip cost-effectively.

ABUL KHAIR SETS NEW QUALITY STANDARDS FOR THIN STRIP ON THE LOCAL MARKET

In January 2012, ABUL KHAIR Strip Processing Ltd., awarded SMS Siemag the contract for a compact cold mill (CCM®) to increase its output of cold strip in Chittagong, Bangladesh. As a highly flexible plant type, the CCM® meets diverse market requirements. The SMS Siemag CCM® model consists of two re-versing mill stands in CVC® plus six-high design. In terms of production capacity, the CCM® closes the gap between the single-stand reversing mill (RCM) and the multi-stand tandem mill (TCM). Due to its low investment and operating costs, it is an attractive alternative.

The CCM® will process pickled hot strip in widths of up to 1,250 mm and entry gages of up to 4.00 mm. It will roll the strip down to a minimum final thickness of 0.09 mm. CVC® plus technology combined with work roll and intermediate roll bending, multi-zone cooling at the entry and exit ends, and our Dry-Strip system ensure all strip quality requirements are met. The CCM® comes complete with a payoff reel and two tension reels. The annual production capacity is 185,000 t.

TOP PRECISION FOR COPPER ROLLING

Ningbo Xingye Copper awarded SMS Siemag an order for two reversing cold rolling mills for copper and copper alloys. A major player on the Chinese copper market, Ningbo Xingye Copper will use the two new cold rolling mills to produce copper and copper alloy strip for a wide variety of applications. Important end products are, for instance, so-called lead frames and semi-finished products for further processing in LED technology.

Quality-critical plant

components manufac-

tured at SMS Siemag

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46

GImperro quia ellibus

andelicit volesto

tatatentem re plaborios

id quam eles maio. Equis

ma volore omni.

The four-high stand at Ningbo Xingye Shengtai Group Co. Ltd., rolls strip made of copper and various copper alloys in gages of up to 16 mm. It processes strip between 420 mm and 680 mm wide with entry gages of 9 mm to 16 mm.

A special feature of this rolling process is that the strip is introduced into the closed roll gap so that it is fully rolled out.

Proven control elements such as hydraulic screw-downs, positive and negative work roll bending, swiveling of the mill stand, and multi-zone cooling ensure the required final gage of 0.5 mm to 4.0 mm as well as excellent flatness. The reversing cold rolling mill is scheduled to go into production in July 2014.

Only a little later, in October 2014, the 20-roll cold rolling mill will also roll its first strip. This SB23-26" split-block plant will further process the strip to produce thin strip.

The strip measures 400 mm to 660 mm wide and has a maximum entry gage of 2.50 mm. After processing, the minimum final gage is 0.05 mm. Rolling takes place at a maximum rate of 800 meters per minute. Using the control elements hydraulic roll adjustment, crowning adjustment of the A-D axes, and interim roll shifting, the rolling mill ensures the strip com-plies with the required gage and flatness tolerances.

To be able to process

the valuable material

cost-effectively, the

SMS Siemag rolling mills

are designed to ensure high

material utilization and

minimum off-gage lengths

Annual production capacity of the rolling mill is more than 55,000 t.

Responsible for equipping both rolling mills, SMS Siemag supplied the complete engineering, the mechanical components, and the entire electrics and automation for the cold rolling process. That includes for the four-high mill not only the new X-Shape flat-ness measuring system, but also a pass schedule calculator tailor-made for this type of plant. The 20-roll mill stand will also be equipped with a level 2 offline model. It comes with green, resource-sav-ing technology from SMS Siemag in the shape of a multiplate filter with top filter fineness for cleaning the rolling oil.

HIGH CAPACITY AND COST-EFFICIENCY IN STAINLESS STEEL PRODUCTION

Chinese stainless steel producer TISCO (Shanxi Tai-gang Stainless Steel Company), a subsidiary of Tai-gang Group International Trade Co. Ltd., contracted SMS Siemag to supply two fully continuous cold tandem mills. One of them will be a CVC® plus six-high type, and the other will be built in 18-HS design. This investment gives Tisco an extra capacity of more than one million t of stainless steel strip per year.Each rolling mill forms the heart of an integrated,

The annual capacity

of the rolling mill is

some 75,000 t

47

Tandem cold rolling mill.

continuous production line for stainless steel cold strip, also called a white sheet rolling annealing and pickling line (WRAPL). The two new production lines will be erected by a consortium in Taiyuan city in the Chinese province of Shanxi.

As a member of the consortium, SMS Siemag will supply not only the tandem mill, but also two strip cleaning plants. Both tandem mills process hot strip pre-treated in a hot strip annealing and pickling line also supplied by SMS Siemag.

“TCM 400”. The six-high tandem mill processes AISI 400-series stainless steel strip and has an annual capacity of up to 500,000 t. Highly flexible due to its modern control systems, the five-stand rolling mill ensures excellent quality of the rolled strip.

Included here are CVC® plus, positive and negative work roll and intermediate roll bending in all mill stands, and multi-zone cooling in stands 4 and 5 for final flatness optimization.

The tandem mill is due to roll its first strip in Feb-ruary 2014.

“TCM 300”. This 18-HS tandem mill is only the second of its kind in the world. The first was built by SMS Siemag in 2009. Achieving an annual capacity of up to 600,000 t, the TCM 300 rolls stainless steel strip of AISI 300-series quality. The high-tech tan-dem line features five mill stands in 18-HS design (HS = horizontal stabilization). Very high reductions per pass result from the slimline work rolls, making production especially cost-effective.

The WRAPL configuration

ensures Tisco produces

stainless steel especially

cost-effectively because

rolling, annealing,

and pickling all take

place in one go

48


To prevent horizontal bending of the slimline work rolls, lateral support rolls are installed in the 18-HS system.

The tandem mill will go on stream in April 2014. Its annual capacity is 600,000 t. That will give Tisco an extra annual production capacity of more than one million t.

FLEXIBLE SKIN PASSING

Latin American company Ternium ranks among the continent’s leading producers of long and flat prod-ucts, with production plants in Argentina, Mexico, Columbia, Guatemala, and the USA. In January 2012, Ternium contracted SMS Innse to supply an offline wet skin-passing mill for its facility in Pesqueria, Mexico.

The annual capacity is 700,000 t, made up of 520,000 t of carbon steel and 180,000 t of silicon steel. The plant skin-passes carbon steel strip measuring up to 1,850 mm wide and silicon steel of up to 1,400 mm wide. Depending on the material, strips are processed down to a minimum final thickness of 0.26 mm (silicon steel: 0.8 mm). All this at a maximum rolling speed of 1,000 meters per minute.

SMS Innse is supplying the complete skin-passing mill including electrics and automation. The main components in the entry area are coil handling equip-ment, a coil preparation station, reel handling, and

a pinch roll unit. Also included here is a payoff reel in double expanding head design. The mill stand is a four-high type that can take work rolls in two differ-ent diameters. There is an exit section consisting of inline coil inspection, pinch roll unit, tension coiler, oiling machine, and coil handling machine with tying and weighing equipment.

The first strip will be rolled in November 2013.

FULLY AUTOMATIC ROLL CHANGE IN 180 SECONDS

The first strip was rolled on the SB 22-54" 20-roll cold rolling mill in February 2012, and a Taiwanese customer issued the final acceptance certificate (FAC) on May 31, 2012. Following fast commission-ing, the plant also impressed with rapid run-up and short optimization phases. Extra special here is a roll changing robot for the work rolls and intermediate rolls. As a result, the plant is ready to go again al-most immediately.

The Taiwanese company uses the cold rolling mill to produce high-quality stainless steel strip from austenitic and ferritic steel grades for the IT industry, in widths of up to 1,350 mm and a minimum final gage of 0.15 mm at a rolling speed of as much as 800 meters per minute. The annual capacity is 100,000 t.

Crucial for the fast and smooth commissioning, run-up, and process optimization were extensive pre-

48

The skin-passing mill will

process a wide range of

materials including not

only carbon steels but also

silicon grades

49

assembly and testing in our workshop in Hilchenbach, Germany. That ensured we could iron out any pos-sible problems in advance.

ROLLING AND SKIN-PASSING IN A SINGLE MILL STAND

Esmech Equipment Pvt. Ltd., our Indian joint venture partner, successfully commissioned a new revers-ing cold rolling mill at Starcore Co. Ltd., in Rayong, Thailand, on November 7, 2012.

Now Starcore has an extra production capacity of 200,000 t of high-quality cold strip as well as an additional skin-passing capacity of 146,000 t per year. The combined reversing and skin-passing mill

(RCM/SPM) rolls and skin-passes strip in widths of up to 1,250 mm at a maximum rolling speed of 1,200 meters per minute. The minimum rolled final gage is 0.2 mm. Starcore will supply these products to its own parent company Saeng Thai Metal Drum Company Limited (STD) as well as to the South-East Asian market.

Esmech Equipment installed and successfully com-missioned the combined four-high cold rolling mill with CVC® plus. The core components such as the cylinder and bending blocks as well as the CVC® slide systems came from the SMS Siemag workshop in Hilchenbach. To ensure everything went without a hitch, the entire mill stand was pre-assembled in the ESMECH workshop in Wada.

Quality testing.

Fully automatically,

the work rolls are

changed in pairs in less

than 180 seconds

50



– ABUL KHAIR, Bangladesh; CVC® plus six-high CCM®

– Ningbo Xingye, China; four-high RCM– Ningbo Xingye, China;

20-roll cold rolling mill in split-block design– Tisco, China;

18-HS TCM for integrated rolling, annealing, and pickling line

– Tisco, China; CVC® plus six-high TCM for integrated rolling, annealing, and pickling line

– Rautarruukki, Finland; modernization of a TCM– Wickeder Westfalenstahl, Germany;

repair of an RCM after fire damage– Ternium, Mexico; skin-passing mill

– Han Yang (Hysco), China; two 20-roll cold rolling mills, type SB 22-52"

– Bahru Stainless, Malaysia; 20-roll cold rolling mill, type MB 22B-52"

– TKN Nirosta, Germany; modernization of a 20-roll cold rolling mill, type MB 21BB-64"

– Benxi, China; two 20-roll cold rolling mills, type 22B-54"

– Customer in Taiwan; 20-roll cold rolling mill, type SB 22-54"

– Starcore, Thailand; combined four-high reversing and skin-passing mill

50

131dpi

Location: Malaysia

BAHRU STAINLESS

PRODUCTION START IN MALAYSIA

Asian company Bahru Stainless SDN BHD, a subsidiary of the Spanish Acerinox Group, has built a new production facility for stainless steel cold strip in southern Malaysia. Integrated in the plant is a 20-roll cold rolling mill of type MB 22B-52" from SMS Siemag. Just a few months after the start of assembly work on June 1, 2012, the first strip was rolled on December 14, 2012 to the full satisfaction of Bahru Stainless.

The compact, robust rolling mill processes austenitic and ferritic strip grades up to 1,320 mm wide with entry gages of up to 6.35 mm, and rolls them to final gages of down to 0.15 mm. And that was not all, because apart from the rolling mill, SMS Siemag supplied the entry and exit groups, leveler and cropping shear, as well as a proven Supafine® filter system for efficient, eco-friendly filtration of the rolling oil.

By completing the first stage of the new production facil-ity in Johor Bahru with an annual capacity of 240,000 t, Bahru Stainless has achieved an important interim goal. Next on the agenda is a stage that will increase the ca-pacity to 600,000 t of stainless steel cold strip per year.

Pleased to see the fi rst strip: from left to right Project Manager Frank Lettau, SMS Siemag, Rolling Master Brent Welty, Bahru Stainless, and Electrics Project Manager Tim Lotte, SMS Siemag.

20-roll cold rolling mill of type MB22B-52" at Bahru Stainless.

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52

Continued high demand for aluminum plants

Product-specific automation systems

Attractive green technology

Production start of the hot rolling mill at Henan Zhongfu, China

Aluminum hot rolling mill and cold rolling mill for automotive products for Shandong Nanshan Aluminium, China

ALUMINUM PLANTS

Already high in recent years, demand for our alumi-num plants remained strong in 2012. We were able to further increase both order intake and sales. Another moderate increase looks likely in 2013.

Responding to the wishes of many aluminum cus-tomers for a complete supply package, SMS Siemag has developed AluControl, an automation system specifically designed for aluminum rolling. Due to AluControl, we were able to increase the share of aluminum rolling mills we supplied complete with electrics and automation to more than 80% in 2012.

Now aluminum producers can also benefit from the teamwork between our specialists in development, engineering, manufacturing, and electrics and au-tomation. Even more than before, our customers can rely on the full performance and productivity of their rolling mills, plus no-fuss, smooth project management.

PRODUCTION START OF THE HOT ROLLING MILL AT HENAN ZHONGFU, CHINA

Henan Zhongfu Industrial Co. Ltd., China rolled the first coil on its new aluminum hot strip mill on December 19, 2012. A whole month before the contractual deadline and after a commissioning phase of just six weeks, the first 1,330 mm-wide strip with a final gage of 6 mm rolled off the line in Gongyi, Henan Province. In the future, the new plant will produce 760,000 t of aluminum hot strip for a wide application spectrum such as foil, packaging,

beverage cans, automotive and facade panels, and printing industry supplies.

We will also deliver a single-stand cold rolling mill and a twin-stand cold tan-dem mill for further processing of the material.

The 1+ 4 hot rolling mill ordered from SMS Siemag back in October 2010 consists of a reversing rougher with edging stand and a four-stand finishing train. To achieve the required strip quality in terms of gage and profile, the stands are equipped with hydraulic roll adjustment and multi-zone work roll cooling, while the finishing train features CVC® plus with integrated work roll bending. There is also a transfer bar cool-ing system in the entry of the finishing train that adjusts the strip temperature for special products, guaranteeing a high production rate. Further main components are a light and a heavy cropping shear, an exit group with side trimmer, tension reel, and coil transport system, as well as the related media systems for hydraulics, emulsion, and lubricating oil, plus vapor extractors.

Henan Zhongfu Industrial Co. Ltd., was delighted with how well the project was handled: “We look forward to continuing this good cooperation and working together just as successfully on the upcoming pro-jects,” they wrote in a letter SMS Siemag received from Gongyi shortly after the first coil was rolled in perfect condition. During the commissioning phase, SMS Siemag also impressed our customer on-site with its qualified engineers, excellent expertise, and efficient technology.

Production start one

month before the

contractual deadline

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54

ALUMINUM HOT ROLLING MILL AND COLD ROLLING MILL FOR AUTOMOTIVE PRODUCTS FOR SHANDONG NANSHAN ALUMINIUM, CHINA

Shandong Nanshan Aluminium Co. Ltd., a subsidiary of the Nanshan Group, ranks among China’s leading manufacturers of aluminum products. In November 2012, Shandong Nanshan contracted SMS Siemag to supply a 1+ 5 hot rolling mill for aluminum and aluminum alloys. Soon afterward, the company or-dered a cold rolling mill for special tasks.

Hot rolling millThe 1+ 5 hot rolling mill consists of a plate mill and a five-stand finishing line for aluminum and aluminum alloys. Starting in late 2014, it will go online at the location in Yantai, Shandong Province, producing aluminum strip for beverage cans as well as sheets and plates for the automotive and aircraft industry. In the first phase, an annual production capacity of 300,000 t will be implemented. Included in the supply scope are all fluid systems, an offline coil inspection line, and the pallet conveyor system for the coil handling.

In its first construction stage, the mill will produce plates up to a width of 3,800 mm and strip up to a width of 2,800 mm. The minimum final gage of the hot strip will be some 1.8 mm. There are plans to add

an extra-wide hot plate rolling mill in a subsequent construction stage.

The new hot rolling mill will be equipped with state-of-the-art actuators and technological control sys-tems. All the core components of the mill stands will be manufactured in the SMS Siemag workshop in Hilchenbach, Germany, providing Shandong Nanshan with plant technology that will ensure high-quality rolled products.

Cold rolling mill The new cold rolling mill will give the aluminum strip the special material properties important for further processing in the automotive industry. Engineered for an annual production of more than 130,000 t, it is due to roll the first strip in winter 2014.

The fully equipped rolling mill in CVC® plus six-high design rolls extremely wide strip measuring up to 2,650 mm, with entry gages of up to 7.5 mm down to final gages of 0.2 mm.

To produce special automotive grades, it will be pos-sible to perform the final pass as a skin pass. Here, the strip surface receives a defined roughness that later ensures the high standard required for external body surfaces. This is achieved with EDT (electro discharge texturing) rolls used for skin-passing.

Complete supply

including auxiliary plants

55

To be able to apply the low rolling forces used for skin-passing in a controlled way, the aluminum cold rolling mill will be equipped with the innovative extended bending system (EBS) from SMS Siemag. What happens is that the top backup roll lifts up while the required low rolling force is applied solely by intermediate roll bending. Further equipment in the cold rolling mill are a coil preparation station, pallet conveyor system, coil inspection line, and fluid and filter systems, including multiplate-filter and Airwash exhaust air-cleaning systems.

Tandem mill successfully commissionedWith these two new orders, Shandong Nanshan has demonstrated its trust in rolling mill technology from SMS Siemag for the third time. Previously, we sup-plied two single-stand cold rolling mills with CVC® plus and one three-stand cold tandem mill, which went into production in summer 2012 and was the first rolling mill of its type in China.

Aluminum cold rolling mill.

China’s first three-stand

cold tandem mill

in operation

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MAJOR ORDERS

COMMISSIONING PROJECTS

– Ma’aden Alcoa, Saudi-Arabia; four-high cold rolling mill

– Jilin Midas, China; CVC® plus six-high cold rolling mill

– Henan Zhongfu, China; CVC® plus six-high cold rolling mill and tandem mill

– Shandong Nanshan, China; 1+ 5 hot rolling mill and CVC® plus six-high rolling and skin-passing mill

– Tianjin Zhongwang, China; 1+1+ 3 hot rolling mill and two CVC® plus six-high cold rolling mills

– Aluminium Norf, Germany; modernization of rougher

– Shandong Nanshan, China; three-stand TCM– Luoyang Wanji, China;

two CVC® plus six-high cold rolling mills– Novelis do Brazil, Brazil;

two-stand TCM (four-high)– Henan Zhongfu, China; 1+ 4 hot rolling mill

HENAN ZHONGFU ORDERS TWO COLD ROLLING MILLS FOR 2,400-MM WIDE ALUMINUM STRIP

For its new production complex in Gongyi, West-Zheng-zhou, Henan Province in China, Henan Zhongfu Industrial Co. Ltd., ordered a single-stand cold rolling mill and a two-stand cold tandem mill for aluminum strip. Previ-ously, Henan Zhongfu ordered a 1+ 4 aluminum hot roll-ing mill which we successfully commissioned in 2012. Once again, Henan Zhongfu is relying on the expertise, dependability, and high quality of SMS Siemag.

Henan Zhongfu is a member of the Vimetco Group which operates facilities including its own bauxite mine and aluminum smelting plant. The cold rolling mills will be erected side by side in Gongyi. According to the plan, both rolling mills will go into production in the second half of 2014. The aluminum strip they produce will be used primarily for manufacturing beverage cans and lithographic sheet and foil.

That is why the cold rolling mill is designed to process aluminum alloys of series 1XXX, 3XXX, 5XXX, and 8XXX. It rolls strip with a maximum width of 2,400 mm and a maximum entry gage of 8.0 mm to a minimum finished gage of 0.15 mm.

Location: China

HENAN ZHONGFU

The finished strip is wound into coils with a diameter of up to 2,750 mm weighing up to 34 t. Annual capacity is more than 180,000 t. The tandem mill processes strip of the same material range with entry gages of up to 5.0 mm, which are mainly used for manufacturing foil. It also achieves a final gage of 0.15 mm. The annual capacity is 115,000 t.

To ensure the required high strip quality in terms of gage and flatness, both rolling mills are equipped with CVC® plus, work and intermediate roll bending, multizone cooling, and our Hot-Edge-Spray and Dry-Strip systems.

Each rolling line will be completed by SMS Siemag with a coil preparation station, an offline coil inspection, all the necessary fluid systems, and a total of three Multi-Plate® filters for cleaning the rolling oil. The exhaust air will be cleaned by one Airwash™ system from SMS Siemag for each mill. What makes both filter systems stand out is their high cleaning performance. Equally important, they reduce the rolling oil consumption, contributing to the good green credentials of the cold rolling mill. Fur-thermore, with its capacity of 360,000 m3 per hour, the Airwash™ system integrated in the TCM is the largest SMS Siemag has erected to date.

Smiles all round after successful commissioning of the 1+ 4 aluminum hot rolling mill.

[ 1 ] | The kickoff meeting took place in June 2012 in Gongyi. [ 2 ] | Model of the Henan Zhongfu single-stand aluminum cold rolling mill with CVC® plus.

[2][1]

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High-strength steel grades for the automotive industry: Cold strip lines at MMK commissioned and acceptance received

Flexible plant designs for our customers’ market success

Henan Zhongfu, Ma’aden Alcoa Joint Venture & Coil GmbH – three aluminum strip processing plants

High productivity and product quality: TISCO orders hot strip annealing and pickling line for stainless steel strip

STRIP PROCESSING LINES

Despite a very difficult market situation with high pressure on prices, we were able to maintain a sat-isfactory order intake in 2012.

Especially gratifying is that SMS Siemag attracted orders for a total of three aluminum strip processing plants, gaining a good market position in this field. Furthermore, we also booked orders for normal and stainless steel strip processing plants. Overall, the Division defended its leading status on the market.

Sales stayed at the same level as in 2012. We expect a moderate market recovery in 2013.

HIGH-STRENGTH STEEL GRADES FOR THE AUTOMO-TIVE INDUSTRY: COLD STRIP LINES AT MMK COMMIS-SIONED AND ACCEPTANCE RECEIVED

There was a special reason to celebrate on “Metal-lurgy Day”, July 13, 2012: commissioning of the two cold strip processing lines in the new MMK works in Russia. Previously, in late November, MMK had already issued the final acceptance for the lines.

Flexible plant design for sustained market successThe two cold strip lines process much of the roughly 2 million t of cold strip produced annually by MMK in the new pickling/tandem mill also supplied by SMS Siemag. The annealing and hot-dip galvanizing line has been in operation since mid-June 2012. It was followed in July 2012 by the continuous hot-dip galvanizing line. What makes all this so special is the large material range from soft to high-strength grades that are processed into galvanized strip. Fur-thermore, with a pure hot-dip galvanizing line and a universal annealing and hot-dip galvanizing line, MMK has chosen a very flexible plant configuration.

It enables MMK to use the lines as required for manufacturing two different, top-quality product groups (annealed and galvanized). Even in today’s

ever-changing market environment, the wide prod-uct range and rapid adjustment to market demand ensured by this plant design promise high cost-ef-fectiveness.

Modern, high-strength steel grades for the automotive industryAs one of Russia’s leading steel producers, MMK will, in the future, use these plants to supply primarily the automotive industry. The strip is intended especially for external and internal auto parts. To meet the re-quirements of the international automotive industry, MMK will produce high-strength steel grades such as HSLA, IF-HSS, BH, DP, MP, and TRIP.

The material will also be used in the white goods and construction industries. The SMS Siemag scope of supply and services covered engineering, mechanical equipment, furnace technology, hydraulics, electrics and automation, as well as assembly supervision and successful commissioning.

Hot-dip galvanizing line Some 450,000 t of the cold rolled strip is processed in the continuous hot-dip galvanizing line. High-performance

capability and rapid

run-up curves

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60

A total of three vertical loopers separate the vari-ous plant parts from each other. In the entry area, two payoff reels alternately feed the strip into the plant, where they are joined to make endless strip. Surface cleaning in a precleaning and main cleaning section follows. Next in line is a Drever furnace with a capacity of 107 t per hour. It efficiently anneals and precisely cools the strip according to a defined annealing curve. At a temperature of approx. 460 °C, the strip progresses through an equally hot zinc bath. There is a FOEN air knife system above the zinc bath, which regulates the thickness of the zinc coating. The downstream induction furnace is an optional section for producing galvannealed grades. For post-treat-ment, the plant features a four-high skin-passing mill with work roll bending, a tension leveler, and a roll coater. A side trimmer adjusts the strip width. Various measuring instruments in the inspection station enable a thorough quality check. Finally, a cross-cutting shear cuts the strip into lengths and two coilers wind it into coils.

Flexible production with annealing and hot-dip galvanizing lineA further 650,000 t of the cold rolled steel are pro-cessed in the universal annealing and hot-dip galva-nizing line. This plant is similar in design to the hot-dip galvanizing line. However, after annealing and cooling in the furnace, the strip can be further processed in two different ways. The first option is like the hot-dip galvanizing line, where the still-hot strip goes through a zinc bath, is coated with liquid zinc, then cooled.

Then there is the second option of feeding the strip from the furnace directly into an overaging furnace.

Here it is subjected to temperatures of between 270 and 430 °C for up to 180 seconds. This releases carbides and minimizes the risk of aging. Annealing is finished off with final cooling and water cooling. Due to this configuration, the combined line features an operating mode that can achieve qualities just as high as a modern continuous annealing line.

Electrics and automationSMS Siemag supplied the electrics and automation for both lines. But first, the entire automation system was set up in our test field and tested using our Plug & Work method. Plug & Work simulates the production sequence and makes it possible to test and optimize the automation functions under realistic conditions before installation in the factory. These tests make commissioning easier and ensure very good results after just a short time.

HENAN ZHONGFU, MA’ADEN ALCOA JOINT VENTURE & COIL GMBH – THREE ALUMINUM STRIP PROCESSING PLANTS

Last year, SMS Siemag attracted three orders for aluminum strip processing plants. The orders all included mechanical equipment, process technology, furnace technology, and electrics and automation. For aluminum manufacturer Henan Zhongfu Indus-trial Co. Ltd., we are building a color coating line for 70,000 t of strip in the form of can stock. The an-nealing and passivating line of Ma’aden-Alcoa Joint Venture can anneal and chemically treat 50,000 t of

Combined annealing

and hot-dip galvanizing

line guarantees more

flexibility

61

aluminum strip per year for the automotive industry. Coil GmbH in Bernburg will, in the future, operate a new anodizing line with a capacity of 15,000 t per year.

HIGH PRODUCTIVITY AND PRODUCT QUALITY: TISCO ORDERS ANNEALING AND PICKLING LINE FOR STAINLESS STEEL HOT STRIP

Chinese stainless steel producer TISCO (Taiyuan Iron & Steel Group) has awarded SMS Siemag a contract for the world’s highest-capacity annealing and pickling line for hot strip. Each year, this line

will process one million t of ferritic and austenitic stainless steel strip. With this annealing and pick-ling line, TISCO intends to significantly increase its capacities for high-quality stainless steel strip, while simultaneously reducing production costs. The plant features modern processing and environment protection technology, ensuring compliance with all environmental standards relating to exhaust air and wastewater, while having a very efficient and flexible production process. What is more, its high degree of automation and low maintenance requirement reduce overheads.

The order for this line was issued in March 2012. At the end of 2013, the line will go on stream in TISCO’s main plant in Taigang, Shanxi Province.

Strip looper.

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– Habaşş, Turkey; push pickling line and acid regeneration plant

– Henan Zhongfu, China; continuous color coating line for aluminum can stock

– TISCO (Taiyuan Iron & Steel Group), China; continuous hot strip annealing and pickling line for stainless steel

– Ma’aden-Alcoa Joint Venture, Saudi Arabia; annealing and passivating line for aluminum

– Coil GmbH, Germany; continuous anodizing and color coating line for aluminum

– Benxi, China; two air-knife systems for continuous hot-dip galvanizing line

– VAMA, China; two air-knife systems for continuous hot-dip galvanizing line

– ThyssenKrupp Steel Finnentrop, Germany; air-knife system for hot-dip aluminizing and alteration of entry section

– Segal SA, Belgium; two air-knife systems for continuous hot-dip galvanizing lines

– Erdemir, Turkey; air knives for continuous hot-dip galvanizing line

– MMK, Russia; continuous hot-dip galvanizing line– MMK, Russia;

continuous universal annealing and hot-dip galvanizing line

– Steel producer in northern China; seven lines for manufacturing grain-oriented electric strip

– Severstal Columbus, USA; horizontal continuous hot-dip galvanizing line

– Anshan Iron & Steel, China; air knives for continuous hot-dip galvanizing line

– Haining Lianxin Strip Science & Technology, China; air knives for continuous hot-dip galvanizing line

Location: Germany

COIL GMBH

ANODIZING LINE FOR COIL GMBH

Anodizing is an electrochemical process that creates a transparent, colorless protective oxide layer on the strip surface. This significantly increases corrosion resistance and surface hardness. Wherever esthetically pleasing, non-corrosive strip material with a long service life is required (e.g., in the automotive industry), this type of aluminum plate is the ideal solution.

Pre-treatment involves alkaline cleaning and degreas-ing as well as alkaline pickling to roughen the surface. Then the material is neutralized with acid. Anodizing itself starts with positively charging the strip over an electric roll (anode).

The downstream electrolyte bath contains cathodes that discharge the strip. This creates an oxide layer on the aluminum strip that protects the material from corrosion, also at deeper layers. Moreover, it reduces material wear due to abrasion, increasing the service life. Next in line is color-coating in a paint bath. The paint penetrates deep into the surface pores, and the color intensity is precisely controlled. Finally, the pores are closed in a sealing bath, permanently sealing in the color pigments. The resulting color coating is UV-proof and durable.

Coil GmbH has ordered an anodizing line with an annual capacity of 15,000 t from SMS Siemag. The new line is the first of its kind able to process aluminum strip in

widths of up to 2,000 mm and gages of 3.5 mm. With these record dimensions, Coil will significantly expand its product range and sales market. Another special fea-ture of the line is an electrolytic paint bath developed in cooperation with Coil. SMS Siemag commissioned the first anodizing line in Bernburg, Germany, in 2005.

Refi ned aluminum strip is increasingly used in the automotive industry.

Coil GmbH anodizing line in the Bernburg plant.

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Henan Zhongfu and Ma’aden Alcoa Joint Venture: Two strip flotation ovens for aluminum strip processing lines

Flexible and energy-efficient heat treatment of stainless grades: Heat treatment plant for Outokumpu Stainless

Successful year for Chinese furnace manufacturer: SMS Siemag holds majority share in Ares

Acceptance certificate received in just a few months: Three Drever radiant-tube furnaces commissioned at MMK

FURNACE TECHNOLOGY

Unlike in the previous year, order intake in 2012 contracted slightly, yet was maintained at a high level in a difficult market situation.

On the other hand, sales compared to 2011 increased significantly by some 20%.

After positive development in 2011, the market weakened dramatically at the beginning of 2012, especially for hot-dip galvanizing and annealing lines. We were able to make up some of the down-turn by entering the market for aluminum and heavy plate heat treatment. Now we expect the market to recover in 2013.

HENAN ZHONGFU AND MA’ADEN ALCOA JOINT VENTURE: TWO STRIP FLOTA-TION OVENS FOR ALUMINUM STRIP PROCESSING LINES

Last year, SMS Siemag attracted two orders for GATV strip flotation ovens for aluminum strip processing plants. Starting in 2014, aluminum producer Henan Zhongfu Industrial Co. Ltd will process an annual volume of 70,000 t of aluminum strip for can ma-terial on a color coating line. The annealing and passivating line of Ma’aden-Alcoa Joint Venture will be able to anneal and chemically treat 50,000 t of aluminum strip per year for the automotive industry. Particularly impressive features of the GATV strip flotation ovens in both lines are the compact de-

sign, even strip heating and cooling over the entire cross-section, plus extra-high energy efficiency and eco-friendliness. All this requires ideal setting and control of the process parameters, ensured with a mathematical model.

Strip flotation ovenNozzles in the strip flotation oven ensure the strip travels contact-free through the furnace and air cooler in a sinus shape. Throughout the furnace length, hot air nozzles heat the strip evenly and keep it afloat on an air cushion. The elimination of mechanical contact in the furnace translates into a flawless strip surface. Furthermore, the low, even tension rules out heat creasing or dishing caused by excessive tension. Modular in design, the furnaces feature several heating zones that use turbines to generate an air channel consisting of top and bottom airflows. That makes them easy to control. The air is heated by burn-ers that work with combustion air preheated to as much as 450 °C, yet require a very low energy input.

Annealing with high cooling capacities for automotive and aerospace qualitiesBecause these furnaces feature outstanding technol-ogy for heat treatment in annealing and passivating lines, Ma’aden-Alcoa joint venture decided on a GATV floating furnace. Even heating and cooling over the length and width of the strip create uniform hardness and grain size – and high material quality. As a rule, the furnace – usually a strip flotation oven – heats the strip to temperatures of over 550 °C, depending on the material grade.

Characteristic of our strip

flotation ovens are very

high energy efficiency and

eco-friendliness

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Crucial here is that the temperature is achieved throughout the strip. This annealing process restores the formability of the aluminum alloys. Finally, the strip is cooled. It is vital in annealing lines for au-tomotive or aerospace materials to achieve high cooling rates. This is why we supplement air cooling in our lines with a powerful water-cooling system. Our GATV furnaces feature cooling technologies for all alloys including 6xxx and 7xxx series.

Autothermal drying and hardening of coatingsConvection furnaces are also used for drying and po-lymerizing coatings on aluminum strip. One example of this is the new Henan Zhongfu color coating line. In color coating lines, solvents are evaporated at 230 to 260 °C to fuse the paint molecules and harden the paint. We determine the best type of heating for the furnaces according to the product range and mix, as well as the energy and cost-efficiency.

After extraction, the flue gases are burned in an after-burning system (re-generative thermal oxidizer) with a ther-mal effectiveness of up to 98%.

Depending on the solvent content in the exhaust air, the after-burning system and the furnaces can be operated without additional energy input. We have

already implemented strategies with auto-thermal furnace mode for a large product spectrum.

Mathematical modelThe entire thermal process is controlled by a math-ematical model that calculates the treatment curve and target value parameters, ensuring high process reliability and material quality. This model is based on an extensive database and our own software, with different calculation methods applied depending on the particular application. It can be controlled both inline using level 2 automation, or offline by data input. After entry of the material data (type of alloy, dimensions) and in the case of color coating the paint data (solids content, density, necessary temperature), the model delivers the appropriate process parameters. The GATV database contains the details of more than 350 solvents with the cor-responding process parameters.

FLEXIBLE AND ENERGY-EFFI-CIENT HEAT TREATMENT OF STAINLESS STEEL PLATES: HEAT TREATMENT PLANT FOR OUTOKUMPU STAINLESS

Outokumpu awarded SMS Siemag an order for the supply of a heat treatment line for stainless

High cooling rates

with integration of air

and water cooling

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steel plates. With its two tempering furnaces and a quencher, Outokumpu Stainless will boost its pro-duction of heat-treated plates and improve product quality at its plant in Degerfors, Sweden. The new systems will go into operation in 2013.

Outokumpu is a leading manufacturer of stainless steels, and in Degerfors it manufactures heavy plate for challeng-ing applications in the paper industry, power stations, oil and gas conveyance, and desalination plants.

For the expansion of the heat treatment line, SMS Siemag will supply not only the two heat treatment furnaces and the quenching unit, but also the electrics and automation, and will integrate the heat treatment line into the upstream and down-stream sectors.

Flexible charging of the heat treatment furnacesSpecially tailored to the requirements of Outokumpu Stainless, the heat treatment furnaces are designed

for a broad spectrum ranging from very narrow, thin plate to wide and thick plate. The furnaces can an-neal plates of up to 16 meters long. The maximum annealing temperature is around 1,200 °C.

Energy-efficient plate annealing New roller tables and transfer beds connect the heat treatment line to the rolling mill so that the plates can go directly into the furnaces at rolling temperature. That significantly increases the energy efficiency of the heat treatment.

Two plates in quencher simultaneously In the new roller quench supplied by SMS Siemag subsidiary Drever International, the plates are quenched in a controlled way. The quencher can cool two plates independently of each other.

To prevent temperature differences between the top and bottom plate surfaces, the quencher is fitted with special cooling beams. During cooling, squeeze rollers control the water flow for homogeneous cooling. Simultaneously, they prevent unevenness in thin plates.

Complete supply package

including electrics and

automation

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Electrics and automationWhen it comes to the electrics and automation, SMS Siemag is supplying the entire drive technology, including the frequency converters, the motor control center (MCC), and the level 1 system. That covers elements such as the tracking system and visuali-zation of the processes in the HMI (human-machine interface). As SMS Siemag is currently also supply-ing the automation system for a new 9/5 cold plate leveler, the whole area will eventually operate with X-Pact® automation.

SUCCESSFUL YEAR FOR CHI-NESE FURNACE MANUFAC-TURER: SMS SIEMAG HOLDS MAJORITY SHARE IN ARES

As from January 1, 2012, SMS Siemag holds the ma-jority share in Chinese furnace manufacturer ARES.

In order to be able to supply the Chinese market locally, SMS Siemag has already participated in the company since 2010.

The focus is on roller-hearth and rotary-hearth fur-naces as well as furnaces for the heat treatment of heavy plate and electric strip (silicon strip). Currently, some 60 employees work at the company’s location in Tianjin, China. Last year, Chinese steel producers placed orders worth a total of EUR 10 million with Ares. The largest order is for the supply of two fur-naces and one quencher for a stainless steel heat

treatment line at Dongbei Special Steel Group. The line will process bars made of a Cr/Mo alloy (ANSI 4140, 4145) in diameters of 80 mm to 300 mm. These heat-treated tubes are then used in the manufacture of engine shafts or drill pipes. The heat treatment process comprises heating in a V-type roller-hearth furnace followed by continuous quenching with water and subsequent annealing in another roller-hearth furnace. ARES is supplying all the heat treatment equipment for this plant.

ACCEPTANCE CERTIFICATE ISSUED IN JUST A FEW MONTHS: TWO DREVER RADIANT-TUBE FURNACES COMMISSIONED AT MMK

Drever International supplied both radiant-tube fur-naces for the two cold strip processing lines that handle more than one million t of strip per year. The annealing and hot-dip galvanizing line has been in operation since mid-June. It was followed in early July by the continuous hot-dip galvanizing line.

Outstanding features here are the large range of materials from soft to high-strength grades, and the flexible plant design.

Flexibly and to very high quality standards, two dif-ferent product groups can be manufactured here (annealed and galvanized). The strip is intended

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particularly for the manufacture of internal and ex-ternal automotive parts. To meet the requirements of the international automotive industry, the plant will also produce high-strength steel grades such as HSLA, IF-HSS, BH, DP, MP, and TRIP. Furthermore, the material is used in the white goods and con-struction industry.

Hot-dip galvanizing line Integrated in the hot-dip galvanizing line is a Drever radiant-tube furnace with a capacity of 107 t per hour. According to a defined annealing curve, the strip is ef-ficiently annealed and precisely cooled here. To attain the best results, an ultrafast cooling system is installed that achieves the cooling rates of up to 120 K/smm that are necessary for some modern high-strength steel grades. At a temperature of approx. 460 °C, the strip progresses through an equally hot zinc bath.

Annealing and hot-dip galvanizing lineThere are two options for further processing after annealing and cooling using the ultrafast cooling system in the Drever furnace. One is feeding the still-hot strip through a zinc bath to galvanize it in the same way as in a hot-dip galvanizing line. Al-ternatively, the strip can be charged into an over-aging furnace in which it is heat treated for up to 180 seconds at temperatures of between 270 and 430 °C. This releases carbides and minimizes the risk of aging. Annealing is finished off with final cooling and water cooling.

The combined line features a furnace that can pro-duce qualities just as high as a modern continuous annealing line.

Convection furnace.

Cooling rates of up to

120 K/smm enable the

production of high-

strength steel grades

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MAJOR ORDERS


– Henan Zhongfu, China; furnace for color coating line for aluminum can material

– Ma’aden-Alcoa Joint Venture, Saudi Arabia; furnace for continuous annealing and passivating line for aluminum

– Outokumpu Stainless, Sweden; two tempering furnaces and one quencher for stainless steel heat treatment line

– Dongbei Special Steel Group, China; roller-hearth furnace for stainless steel slabs

– Baoshan Iron & Steel, China; roller-hearth furnace for tubes

– Acroni, Slovenia; roller quencher for stainless steel heavy plate

– MMK, Russia; furnace for hot-dip galvanizing line– MMK, Russia;

furnace for combined annealing and hot-dip galvanizing line

– Severstal Columbus, USA; furnace for horizontal hot-dip galvanizing line

– Wuhan Iron & Steel, China; furnace for continuous hot-dip galvanizing line

– Handan Iron & Steel, China; furnaces for two continuous hot-dip galvanizing lines

– ThyssenKrupp Stahl Eichen, Germany; finishing furnace for steel color coating line

– Eastern Special Steel, China; furnace for annealing and pickling line for hot and cold stainless steel strip

NEW GATV FURNACE AT TKS EICHEN INCREASES EFFICIENCY AND ECO-FRIENDLINESS OF COL-OR COATING LINE – FURNACE REPLACEMENT IN FOUR WEEKS!

To upgrade color coating line (BBA) No. 3 at ThyssenKrupp Stahl in Eichen, Germany, SMS Siemag teamed up with ThyssenKrupp to install a GATV convection furnace com-plete with regenerative after-burning system and auxiliary equipment. They finished the job in just four weeks. Due to an intelligent heat and exhaust-air treatment, the furnace requires roughly 30% less energy. At the same time, its output is 20% higher. Furthermore, the air emission values are well under statutory requirements.

Color coating lineThe line is used to coat steel strip. Measuring between 0.5 mm and 3 mm thick, the strip is mostly used in the construction industry (for example, as profiles or sand-wich elements.) Another application field for the up to 1.75-meter-wide plates is consumer durables such as household appliances. First in line is passivation and priming of the strip, before a roll-coater applies a liq-uid coat of paint onto the strip surface at a strip speed of 120 meters per minute. The coating not only makes the material look good, it also protects it from external influences. Finally, the strip goes into a furnace to po-lymerize and dry the paint. This is where the solvents evaporate from the paint and the paint molecules bond together. Because the solvent content in the exhaust air is very high, special provisions must be made to clean the exhaust air and to prevent explosions.

Location: Germany

TKS EICHEN

ModernizationThe old radiant-tube furnace for drying was replaced by a new GATV convection furnace including the complete air channel system. In place of the two old exhaust-air cleaners, a new regenerative after-burning system was installed, which cleans not only the air from the new furnace, but also the exhaust air from the furnace that dries the primer coating. So the entire exhaust-air volume is treated by one air cleaner instead of two. Furthermore, the air supply and ventilation of the coater house were improved. Now the exhaust air from the coater house, which only contains a low volume of solvents, is also used to heat the furnace. To increase the degree of auto-mation, the furnace’s electric system was also replaced.

Alteration project in four weeks: From plant stoppage to restartUsually, a big challenge we face when carrying out re -vamps is that only very short stoppage periods are avail-able for the alteration work. In this case, SMS Siemag as the system supplier and the participating partners had only four weeks time to complete the job. The order for the modernization was issued in March 2011. Im-mediately, we started designing and manufacturing the new components, and meticulously planning the alterations including assembly work in cooperation with ThyssenKrupp. Most of the time a total of 90 people worked in two shifts on site to carry out the work at outside temperatures of as low as minus 10 °C.

In the first two days, we had to remove the old finishing furnace plus exhaust-air cleaning and channeling sys-tem before the foundations could be modified. Then six pre-assembled furnace segments, each weighing 12 t and measuring 7 meters in length, were delivered, lifted into the plant, positioned, and connected up. The pre-assembled, 50-t regenerative after-burner was also installed. Next came installation of the air and media lines as well as all other components. After just three weeks, the first drives were switched on, and the first functions tested.

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Flatness measuring roll with numerous references

Proven AluControl

Excellent production with CONARC®

Sustained demand for Plug & Work

Fast commissioning projects: Pickling tandem mill and strip processing lines at MMK


Order intake by our Electrics and Automation Divi-sion in 2012 fell short of the level in 2011. However, sales increased compared to 2011 and 2010. Looking ahead to 2013, we expect improved order intake and stable sales.

DEVELOPMENT FOR SUCCESSFUL PRODUCTION

There are certain key objectives we focus on in our development work. They include reducing investment and production costs and increasing final product quality for our customers, as well as innovation in the area of energy and the green technology.

One recent project involved the belt caster of Salzgit-ter Flachstahl GmbH at the company’s Peine loca-tion in Germany. We worked intensively here on implementing a new and unique casting method that saves resources while casting innovative, high-strength steels. Belt casting technology comes with the advantages of substantial energy and CO2 savings compared to conventional steel manufacturing. What is more, it is ideal for producing HSD® (high-strength and ductility) steels. We also improved the electrics and automation of the mill stand for better transfer bar processing.

Today’s rising energy costs, limited raw material reserves, and political conditions force plant opera-tors to adopt holistic energy management. To ensure their future competitiveness and energy-efficient, cost-effective production, our customers can rely on our energy management system X-Pact® Energy Advisor. It makes energy consumption transparent and identifies savings potentials. X-Pact® Energy Advisor is a valuable tool for companies in the met-allurgical and rolling mill industry because of their high energy requirement.

With automated ladle management, we have devel-oped a system that saves significant costs, prevents

ladle fractures, and simultaneously increases steel-making plant productivity. It avoids the operating errors that can occur when ladles are managed man-ually in steelmaking plants.

The ladle management system consists of four modules: handling, simulation, re-fractory lining management, and scenario planning. All measured values, process flows, and simulations are visualized on a modern, intuitive user interface.

Using our ladle management system and its func-tionalities, we ensure a safe and productive manu-facturing process.

Metallic products from ferromanganese and fer-rochrome production are decarburized in refining stages that follow directly.

Our energy

management system

ensures transparency of

energy consumption and

helps save money

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In order to meet customer requirements for process optimization, we have developed refining process models for these important ferroalloys.

One example is a new thickness control for heavy plate plants that we have already implemented and put into operation. The thickness control is more dynamic and achieves much better thickness toler-ances and ultimately higher quality of our customers’ products.

FLATNESS MEASURINGROLL WITH NUMEROUS REFERENCES

Our X-Shape flatness measuring system is now im-plemented in a large number of cold rolling mills for steel and aluminum. Precise flatness measuring and control are important to meet ever more demanding requirements in terms of product quality as well as productivity of the overall process line. Even minimal deviations in the strip tension distribution that cannot be detected visually during the rolling process can impair strip quality. Before this happens, our system measures and corrects them. X-Shape is part of the SMS Siemag program of technological controls. The greatest advantages of this system are: the closed roll surface that leaves no impressions on the strip, wear and maintenance-free signal transmission,

use of standard components in the control cabinet, and measuring software developed by SMS Siemag. Depending on customer requirements, different roll surfaces are available. Options include chrome or tungsten-carbide surfaces.

EXCELLENT PRODUCTION WITH CONARC®

The CONARC® furnaces put into operation at our Indian customer Essar Steel India ensure an almost continuous production process.

What makes the tried-and-tested CONARC® process so efficient is its combination of the classic basic oxy-gen and electric steelmaking processes.

The CONARC® consists of a double vessel with a pivoting set of electrodes as well as a pivoting ox-ygen-blowing lance that are used alternately in the two vessels.

The blower lance achieves higher oxygen blowing rates than that of a converter with optimized blow-ing process for reduced iron oxide generation in the slag. At the same time, the technology provides for a broader ratio of possible charging materials such as liquid pig iron and solid materials than conventional

Precise flatness

measuring helps our

customers ensure high

product quality

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electric-arc furnaces, even with high quantities of pig iron. Now, with this flexibility, Essar Steel India can react quickly to fluctuating market prices for energy and input materials.

PROVEN ALUCONTROL

AluControl is the name for our automation systems specially tailored to aluminum hot and cold rolling. More and more customers are using them in their plants and reaping the benefits. With a high de-gree of product-oriented standardization, we were able to considerably improve the competitiveness of our electrics and automation solutions from level 0 through to level 3. During design and engineering work, we focused on excellent cost-effectiveness and transparency of the technical control solutions. All the specific features of the aluminum rolling process were entered directly into our own “Alu Standard” which we continuously update.

The effort required for system adjustments and fine-tuning in the course of commissioning is reduced

by the leaner systems. Furthermore, the plants run up and are integrated into the production process more effectively.

SUSTAINED DEMAND FOR PLUG & WORK

As in previous years, our test fields are constantly fully booked.

Integration test performed for the hot strip mill of Turkish steel producer Habaşş A.S.

Even before commissioning, we tested the X-Pact® electrics and automation that belongs to the hot strip mill with our proven Plug & Work solution.

In our test field in Hilchenbach, the automation sys-tem was tested and optimized under near-reality conditions long before installation at the customer’s facility, using a simulation model that maps the entire mechanics, drive technology, and process. Later, the tests and pre-optimization of the automation made

Automation systems

specifically for hot and

cold rolling aluminum

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a big difference in the form of shorter cold-com-missioning and a faster production run-up. Equally useful, our customer’s operating and maintenance personnel got to know the system by training on the virtual plant.

FAST COMMISSIONING PROJ-ECTS: PICKLING TANDEM MILL AND STRIP PROCESSING LINES AT MMK

Our Russian customer MMK (Magnitogorsk Iron and Steel Works) issued the final acceptance for the cold strip processing lines we installed in Mag-nitorgorsk. The annual volume of high-quality steel strip produced here totals more than one million t. It is mostly used to manufacture automotive parts.

SMS Siemag erected a pure hot-dip galvanizing line and a universal annealing and hot-dip galvanizing line for MMK. This versatile plant configuration covers a very large material range while meeting high quality standards. From the mechanics and hy-draulics, through furnace technology and air knives, to post-treatment, the entire package was supplied from one source and equipped with X-Pact® elec-trics and automation. Previously, we already built a pickling tandem mill for MMK, which went into operation six weeks before the agreed date. Before commissioning, we ran Plug & Work integration tests for both the pickling tandem mill and the cold strip processing lines.Short commissioning

times and fast

production run-up after

Plug & Work tests

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METALLURGICAL TECHNOLOGY– Kardemir, Turkey;

electrics and automation for converters 1– 3– Magnezit, Russia;

electrics and automation for two magnesium oxide reduction plants, each with five submerged-arc furnaces

– Asia Cement Co. Ltd., South Korea; electrics and automation for two silicon submerged-arc furnaces

– PT. Gunung Raja Paksi, Indonesia; electrics and automation for an electric steelmaking plant

– Jindal Southwest Steel Limited, India; electrics and automation for electric steelmaking plant No. 3

CONTINUOUS CASTERS– ThyssenKrupp Steel Europe AG, Germany;

electrics and automation for alteration of a two-strand continuous slab caster

– Nucor Steel, USA; electrics and automation for the modernization of a CSP® caster

– Jindal Steel & Power Limited, India; electrics and automation for the alteration of a continuous slab caster

HOT ROLLING MILLS– Vyksa Steel Works, Russia;

electrics and automation for shifting roller tables in a heavy plate rolling mill

– ThyssenKrupp VDM GmbH, Germany; electrics and automation for a 2.7 m heavy plate stand

– Outokumpu Stainless AB, Sweden; electrics and automation for a water purification plant and a heat treatment line for stainless steel plate

– Shandong Taishan Steel Group Co. Ltd., China; electrics and automation for the modernization of a 1,800 mm Steckel rolling mill

– Nucor Steel, USA; electrics and automation for the modernization of a CSP® hot rolling mill

COLD ROLLING MILLS– Nucor Steel, USA;

electrics and automation for the modernization of a skin-passing stand and reversing cold rolling mill

– Ningbo Xingye, China; electrics and automation for a 20-roll mill and a 4Hi-RCM for copper

ALUMINUM PLANTS– Maa`den-Alcoa, Saudi Arabia;

electrics and automation for an aluminum cold rolling mill stand with pallet-handling system

– Tianjin Zhongwang Aluminium Co. Ltd., China; electrics and automation for an aluminum cold rolling mill (1+1+ 3) and a single-stand cold rolling mill

STRIP PROCESSING LINES– Maa`den-Alcoa, Saudi Arabia;

electrics and automation for an annealing and passivating line

– Henan Zhongfu Industrial Co. Ltd., China; electrics and automation for a color coating line

MAJOR ORDERS

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METALLURGICAL TECHNOLOGY– Arcelor Mittal Bremen, Germany;

electrics and automation for the modernization of the primary gas cleaning system with switching station and gas recovery for BOF steelmaking plants 1 and 2

– Arcelor Mittal Gijon, Spain; electrics and automation for the modernization of a converter tilting drive

– Basco, Kazakhstan; electrics and automation for a submerged-arc furnace plant with auxiliary plants

– Dragon Steel, Taiwan; electrics and automation for a BOF steelmaking plant (phase 2) with auxiliary plants

– Junzheng, China; electrics and automation for four submerged-arc furnace plants

– Tata Steel, India; electrics and automation for a BOF steelmaking plant (LD3) with two converters and auxiliary plants

CONTINUOUS CASTERS– Bhushan Steel Ltd., India;

electrics and automation for a continuous slab caster– Tata Steel, India;

electrics and automation for a CSP® caster– Salzgitter Flachstahl GmbH, Germany;

electrics and automation for a thin strip caster

HOT ROLLING MILLS– Essar Steel India, India;

electrics and automation for a CSP® hot rolling mill– Salzgitter Flachstahl GmbH, Germany; electrics and

automation for the modernization of the hot strip mill– Tata Steel, India;

electrics and automation for a CSP® hot rolling mill

– Baoshan Iron & Steel Co. Ltd., China; electrics and automation for the pre-straightener of the 4.2 m heavy plate rolling mill and for the cold plate straightener of the 5 m heavy plate mill

– Azovstal Iron & Steel Works, Ukraine; electrics and automation for a hot plate straightener

– Industeel Belgium S.A. (Arcelor Mittal), Belgium; electrics and automation for the modernization of the cold plate straightener

– ThyssenKrupp Steel Europe, Germany; level 2 automation system of a modernized finishing train and cooling section

– NLMK DanSteel A/S, Denmark; electrics and automation for the modernization of the heavy plate mill

– Hyundai Steel, Korea; electrics and automation for the extension of the existing 5 m heavy plate mill

– Outokumpu Stainless AB, Sweden; electrics and automation for a cold plate straightener including auxiliary units and safety technology

COLD ROLLING MILLS– Chinalco Shanghai Copper Co. Ltd., China;

electrics and automation for a reversing cold rolling mill

STRIP PROCESSING LINES– Magnitogorsk Iron & Steel Works, Russia;

electrics and automation for a hot-dip galvanizing line and a combined annealing and hot-dip galvanizing line

FOCUS ON EASY OPERATION

To help our customers cope with the increasingly complex automation of production plants, we develop innovative visualization methods and concepts that put the operator at the center of the system more than ever. Crucial here are improved ergonomics and user-friendly workplace de-sign. That is why we have revised our operating screens with our innovation project “HMI 2015”. Now they are easier to understand, better organized, and above all simpler. The new HMI gives the operator more trans-parency and assistance, providing a clear view of the production process. Most important of all for the new HMI design is user-friendliness for increased efficiency and ultimately better acceptance by operators.

We have also restructured the SMS Siemag control sta-tions. Tailored to the activities of the operating personnel, the room is divided into a control area and a seating area. Additional IT equipment supports routine work in continuous operation, completing the holistic operating approach. The new control platform offers extra comfort that supports personnel in their highly concentrated work so they can control production more effectively.

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SERVICE

SMS Siemag continually expands its network of service locations

Long-lasting, trust-based partnerships

Success: Technological assistance in Russia

The challenge of converter repairs

Spare parts business expanded

High attendance at TECademy

SUCCESS BASED ON CLOSENESS TO CUSTOMERS – SMS SIEMAG CONTINUALLY EXPANDS ITS NETWORK OF SERVICE LOCATIONS

Once again in 2012, the Service Division of SMS Siemag was able to increase order intake. Whether spare parts, maintenance, or complex re-vamps of existing plants, service solutions from SMS Siemag are in demand. Especially in the USA, China, Western Europe, Russia, and India.

The Division will stay on its course for growth in 2013, supporting customers throughout the life cycle of their metallurgical plants. For us, contact with customers does not stop after commissioning. We continue to cooperate with our customers to find solutions that further increase their plants’ efficiency.

LONG-LASTING, TRUST-BASED PARTNERSHIPS

Customers such as Salzgitter Flachstahl AG, Germany, Outokumpu Stainless Oy, Finland, and NLMK La Lou-vière, Belgium, rely on the services of SMS Siemag. The service experts from SMS Siemag always focus on the same goals: high plant availability combined with low maintenance costs. For instance, since 2008 SMS Siemag has been supporting Salzgitter with the maintenance of its hot rolling mill No. 1, continually improving the automation systems in cooperation with our customer.

SMS Siemag experts are also available for customers in the stainless steel sector, for instance Outokumpu

Stainless Oy in Tornio, Finland. This company relies on us for support with its Steckel mill stand for stainless steel that was expanded by a finishing train in 2004. Since 2007, SMS Siemag has been responsible for inspection of the plant’s hydraulics system.

NLMK in La Louvière, Belgium, also counts on the experience of our service experts. Every year since 1997, SMS engineers have inspected the pinion gears and replaced defective drive parts on a six-stand hot broad strip line. This work by SMS Siemag guaran-tees the high quality of the rolled strip. A ten-person team was deployed here for two weeks in 2012.

Another example of the trust placed in SMS Siemag Service is provided by the 24/7 remote electrics and automation service contracts renewed in 2012 by German companies HKM, TKS, and Salzgitter Flachstahl, as well as Colakoglu of Turkey.

SUCCESS: TECHNOLOGICAL ASSISTANCE IN RUSSIA

After Seversky, MMK, ChTPZ, and PNTZ, OMK also signed up for the SMS Siemag maintenance program in 2012. Our Service Division installed two more IMMS maintenance management systems for the heavy plate rolling mill at the Vyksa location. A team of experts from SMS Siemag assisted here for more than a year. They created maintenance structures for work schedules, described process routines, analyzed data, and trained personnel. Also included in the services we provide here is our Genius condi-tion monitoring (CM) system that reliably monitors the drive of the heavy plate stand. Plus, we provide 24/7 support for the X-Pact® automation systems.

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There is continued strong interest in the CM system developed by SMS Siemag. We received new CM orders from Saudi-Arabian joint venture Maa’den Alcoa and Tata Steel Port Talbot in the UK.

THE CHALLENGE OF CONVERTER REPAIRS

Despite difficult conditions, our service experts suc-cessfully performed maintenance work on a torn converter at Tata Steel in Port Talbot. Within just ten weeks, SMS Siemag planned, designed, man-ufactured, and supplied a new fixing solution. At the end of 2012, the team successfully positioned the lamella suspension so that the converter could resume operation in early 2013.

SPARE PARTS BUSINESS EXPANDED

There was also increased spare parts business in 2012. To cope with the demand, SMS Siemag built its own repair center where all repair activities are in one place, to the benefit of our customers. Just some of our larger deliveries of spare parts went to Hyundai (Korea), Elval (Greece), Nippon Steel Nagoya (Japan), and Ilsenburg (Germany), as well as Ilva (Italy).

SMS Siemag Service is also very active when it comes to Morgoil® roll-neck bearings and copper mold plates. We received new orders for Morgoil® roll-neck bearings from Voestalpine Stahl (Austria) and Tata Steel IJmuiden (Netherlands).

TECADEMY

Keen to learn how to fully utilize the potential of their plants, many of our customers attended train-ing courses at the SMS Siemag TECademy last year. Tailor-made training courses took place for customers including Hadeed of Saudi Arabia and Bilstein of Germany. Particularly impressive here is the new “Digital Workshop” that enables participants to “walk” through a plant in real time. In 2013, the TECademy will expand its program.

SMS WORLDWIDE

Some 1,500 service employees at 35 locations are dedicated to the slogan “We are X-Cellize®”. The focus here is on closeness to customers. That is why SMS Siemag opened five new service workshops in 2012: in the USA, China, India, Brazil, and Turkey. Further branches in the United Arab Emirates and the Ukraine are currently being set up.

Our Service Division ensures our cus-tomers can run their production plants cost-effectively and economically.

Responding to customers’ requirements, SMS Siemag is constantly expanding its range on the ground. In-cluded here is maintenance of continuous casters and CSP® plants, coating copper mold plates with nickel, nickel alloys, and ceramics, and chrome-plating work rolls. For example, in China we expanded our service for molds in 2012, and in Turkey customers can now have their roller table rolls coated. Our maintenance service range is in demand, above all, in countries such as India, Brazil, and Russia.

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– Bluescope, Australia; 6 water boxes– ArcelorMittal, Germany;

mandrel transmission, driver transmission, mandrel segments

– Ilsenburger Grobblech, Germany; overhaul of hot shear

– TKS, Germany; drive parts, pinion shaft, intermediate shaft

– Bhushanpower, India; initial reserve– TATA, India; CVC® blocks for stands F1– F4,

Sieflex spindles for rougher– ILVA, Italy; repair of 33 CVC® blocks– Megasteel, Malaysia; roller bearing– MMK, Russia; drive spindles, spindle heads,

probe heads for ultrasonic system, spiral bushing bearings

– PJSC “VSW”, Russia; pressure pots, spindle heads, various rolls, adjusting cylinders, pressure spindles, worm wheel set

– Donkuk Steel, South Korea; drive parts: spindles and spindle heads

– Hyundai Steel, South Korea; pinion roller transmission, descaler spare parts

– Severstal, USA; pinion roller sets F1– F6, wheel set F3

– Baotou Steel, China; reduction gearbox– Handan, China; various cylinders and rings– Minmetals Yinkou, China;

CVC® blocks, entry and exit sides

MAJOR ORDERS

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SERVICE CLOSE TO CUSTOMERS – OUR BRANCHES

SMS Siemag service technicians are active world-wide. To make sure the necessary help arrives quickly, SMS Siemag is constantly increasing the density of our global service network. Five workshops were opened in 2012 alone: in China (Tianjin and Zhangjiagang), India, Turkey, and Brazil.

Location: North AmericaSpare partsWarehouse managementKnow-how components repairsZinc pot equipment repairsCopper mold plating/segment workshopRoll workshopWork roll chromingTechnical customer supportNEW: Modern roll maintenance

Location: South AmericaSpare partsTechnical customer support Know-how components repairsCopper mold plating/segment workshopNEW: Table roller plating

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Location: Middle EastTechnical customer support

Location: TurkeySpare partsTechnical customer support Copper mold plating/segment workshopNEW: Segment workshop, repair of core components, table roller plating

Location: RussiaSpare partsWarehouse managementCopper mold plating/segment workshopKnow-how components repairsTechnical customer support

Location: IndiaSpare partsTechnical customer support Copper mold plating/segment workshopNEW: Know-how components repairsTable roller platingCustomer training

Location: ChinaSpare partsKnow-how components repairsZinc pot equipment repairsWork roll chromingCopper mold plating/segment workshopNEW: Extended service for moldsExpansion of coating processMorgoil® bearingsCustomer training

Location: TaiwanTechnical customer support

Location: EuropeSpare partsTechnical customer support Know-how components repairsZinc pot equipment repairs

Location: South AfricaSpare partsTechnical customer support

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Sustainability: Resource efficiency with Ecoplants

Innovation needs coordination

Close cooperation with customers

Steelmaking plants

Compact strip production technology

Hot and cold rolling, aluminum rolling mills

Strip processing lines

TECHNOLOGICAL DEVELOPMENT

Ever since its early days, SMS Siemag has always been committed to technological innovation. Contin-uous development work and the resulting new solu-tions form the backbone of our 140-year corporate history and have helped establish the globally leading role of SMS Siemag. Our product range covers the entire process chain with plants for the steel, alu-minum, and NF metals industries from steelmaking, continuous casting, and rolling mill technology right through to processing lines for hot and cold strip, including electrics and automation as well as service.

Included here are groundbreaking developments in steelmaking and continuous casting technology as well as the successful introduction of CSP® (com-pact strip production) plants as an efficient method of manufacturing steel strip by directly coupling the casting and the hot rolling processes. Now we have taken this solution one step further. Our develop-ments slash the energy consumption of CSP® plants even more. The main components of the eco package are a special caster for hot casting, a modular furnace system, and an eco hot rolling mill.

SUSTAINABILITY: RESOURCE EFFICIENCY WITH ECOPLANTS

It is easier than ever to recognize our resource-effi-cient technologies because they now all go under the name ecoplants. Plants with this label stand for sig-nificant reductions in raw materials input, emissions, and energy and operating materials consumption, as well as effectively improved recycling quotas.

We have defined clear criteria for our ecoplants solu-tions so that our customers can directly compare the ecological and economic values of a newly developed plant with those of its forerunners.

INNOVATION NEEDS COORDINATION

Right from the start, our company has been dedicated to maintaining technological leadership in plant and machinery construction. Our formula for success? It all comes down to systematic, interdisciplinary cooperation in expert networks. That leads to the necessary innovations in plant, automation, and process technologies, and ultimately to the solutions our customers demand.

This is how complex and creative development pro-cesses translate into concrete activities. Responsi-ble here is our Technological Development Central Department.

BOF lance head.

The ecoplants label

stands for sustainable,

cost-effective solutions

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The employees of the SMS Siemag Technological Development Department do not work in isolated units. Instead, the Central Department makes sure the know-how of all our experts is pooled. This is one of the major preconditions for useful development results. Equally important is intelligent linking of basic research at universities to plant development issues so that our innovations provide our custom-ers with sustained improvements in equipment and processes.

CLOSE COOPERATION WITH CUSTOMERS

Cooperating with our operative Divisions and other Central Departments, the Technological Development Central Department at SMS Siemag transforms its know-how into marketable, reliable, and profitable solutions for plant operators. Close contact with our customers is essential here.

Projects originate from our own initi-ative or in bilateral cooperation with our customers and research institutes. There is a focus on developing novel solutions and optimizing existing pro-cesses to offer our customers economic advantages.

True to this approach, we work on all aspects of the process chain. Read on for just some examples of our developments.

STEELMAKING PLANTS

Primary energy melter – PEMThe primary energy melter is a cost-effective, eco-friendly shaft furnace for melting scrap, which exclusively uses primary energy. First, the shaft furnace is fired from the bottom with several ox-ygen burners sub-stochiometrically to control the oxidation.

Then the gas is after-burned in the upper levels of the shaft furnace. The energy input into the PEM already amounts to 90% of the total energy required for liquid steel production. The heat flows out of the shaft along the floor of the PEM through a tap on the

side and into a second vessel. This is where the required final temperature is set.

There is a joint development project be-tween SMS Siemag and our customer ArcelorMittal in Gent, Belgium, with the goal of building and testing a PEM.

Basic oxygen furnace – BOFBOF blowing lances can only be designed optimally in terms of oxygen pressure and flow for one oper-ating point. Because the pressure and temperature at the entry to the lance head are unknown and can therefore only be estimated, many BOF blowing lances around the world work in off-design mode. To tackle this problem, SMS Siemag has developed a patented process. It uses a data logger in the lance head to measure oxygen pressure and temperature simultaneously with the process variables at the valve station over several days, after which the re-sults are analyzed. It is possible from the connection between the process variables at the valve station and in the lance head to calculate, among other things, the pressure loss in the oxygen line and to determine whether and to what extent the blowing process deviates from the design. That provides operators with a solid basis for corrective measures for the blowing operation.

The wear of the supersonic nozzles in the lance head is closely connected to fluctuating oxygen volumes caused by steel or slag ejections, pressure fluctu-ations in the oxygen supply line, solid substance charging, etc. This is why SMS Siemag is currently developing an adaptive blowing lance head that re-acts automatically to pressure changes in the oxygen supply line. The principle behind it is that special elements slide into the nozzle cross-sections, ad-justing the surface areas that influence supersonic operation to the off-design flow conditions. That is likely to increase the service life of the blowing lances. Soon we will install this adaptive blowing lance in a 240 t BOF.

CONTINUOUS CASTING

Strip casting – belt casting technologyRecently, the new belt caster we developed in close cooperation with our customer Salzgitter Flachstahl

Linking basic research to

problems from practice

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AG was successfully commissioned. A core compo-nent of the plant is the molten metal application system that must ensure a constant, even distribu-tion onto the belt at casting widths of 1,000 mm to 1,600 mm. This is achieved with the help of a filling level control in combination with a damming device inside the melt application system. An argon rake and an electromagnetic cross stirrer are used for the cross spreading and smoothing of the melt flow. We ran extensive computed fluid flow simulations (CFD simulations) before designing the melt application system including the cross stirrer.

Laser measuring device for slabs during castingThe slab width and narrow side contour depend di-rectly on the position and angle of the mold narrow side as well as the secondary cooling in the strand guide. Any alteration in the casting rate necessarily results in changes that require immediate reactions to minimize yield losses from casting over- or un-der-widths. To tackle this problem, we devised a robust laser measuring device that uses laser tri-angulation to measure the narrow side geometry of the hot strand shortly after it leaves the caster.

The system software uses the measured data to determine online the cold width and cold gage of the slab as well as the narrow side profiles of both strand sides.

Thanks to today’s increasing numerical processing and computing power, these physical processes can be mapped in a way that is becoming more and more like a computer simulation. Apart from the usual thermal simulation of the strand, it is now possible to also calculate the mechanical behavior of the strand shell. This is how the system can predict the spread of the slab as well as the narrow side bulge depending on the operating conditions.

TECHNIKUM TECHNOLOGY CENTER

Nozzle test benchIn the Technikum technology center of SMS Siemag, we put a new nozzle test bench into operation in 2012. It is used to examine the behavior of second-ary cooling nozzles under operational conditions for better design of the secondary cooling sections and

Laser measuring device.

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to improve the framework conditions for our DSC® (dynamic solidification control) cooling model. Var-iables measured here are the water distribution, water impact force, and heat transfer coefficient depending on the water volume, air volume, and air pressure in the case of dual-substance nozzles, the nozzle distance from the strand, the spray water temperature, and the strand surface temperature.

Now the new know-how is being applied to develop even better mechanical equipment and modules.

MEASURING TECHNOLOGY/ROBOTICS

3-D ultrasonic scanning to evaluate slab qualityToday, macro-etching is often used to determine slab quality. However, this method is time-consum-ing, the comparison images often make analysis difficult, and the usefulness is limited because only one cross-section is available. Using 3-D ultrasonic scanning overcomes most of these drawbacks. We have built a prototype of this plant, and the results show that, due to its sensitivity, the method is highly suitable for evaluation of internal slab quality (cracks, porosity, segregation).

COMPACT STRIP PRODUCTION TECHNOLOGY

More energy efficiency with CSP® eco-packageOur newly developed eco-package can significantly cut the energy consumption of CSP® plants even more. Major elements of eco-package are a special caster for hot casting, a modular furnace system, and an eco hot rolling mill.

All the plant components are designed to achieve high efficiency of the over-all plant.

During hot casting, the thin slab enters the tunnel furnace at the highest possible temperature. Fitting the tunnel furnace with dry furnace rollers reduces energy losses by more than 50 %. Furthermore, the required furnace temperature can be optimized in combination with the downstream inductive heating system. High-performance spindles in the hot rolling mill make smaller roll diameters feasible, which in turn reduces the forming effort and rolling energy.

We have also developed our eco-Control module to ensure the individual components work together op-timally. It sets the most efficient temperature pattern depending on the production program, casting rate,

CSP® plant with eco-package.

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and pass schedule. At present, we are implementing eco-Paket elements in the revamp of the CSP® plant of our customer Nucor in Berkeley, USA.

HOT ROLLING

Sampling station for high-strength, thick hot stripOpening, sampling, tying, and further handling of high-strength, thick hot strip present new challenges for hot strip finishing trains. To prevent coils from bursting open and injuring personnel, high holding forces have to be applied. Now SMS Siemag has developed a solution for safe, efficient handling of these coils in the form of a combined sampling and tying station. It is designed as an offline station to be used, for instance, in the coil warehouse. Through-out the process, an 8-roll cage holds and secures the coil. A robot takes the sample and handles it as

well as the scrap pieces. Finally, an integrated heavy binding machine binds the coil again to secure it for further transport.

New cooling system for high-strength plateOther development work at SMS Siemag is driven by the growing demand for heavy plate in ever higher strength qualities. Our patented spray cooling system is a new metallurgical tool that helps here. It is ideal for accelerated cooling and direct-hardening of the plates straight from the rolling heat. The high-pres-sure section is equipped with pressing rolls that guarantee homogeneous cooling and vastly improved flatness of the strip after cooling. This is particularly important for thin and broad strip. Applying spray cooling increases the cooling rate and enables the further development of high-strength steels with optimal plate flatness. The cooling system comes with width, head, and tail masking.

Sampling station.

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COLD ROLLING

Flatness measuring rollerFor some years, SMS Siemag has been successfully manufacturing skin-passing measuring rollers that have so far been implemented in cold rolling tandem mills, cold rolling reversing lines, skin-passing mills, and aluminum cold rolling tandem mills. The rollers can be used for strip at temperatures of up to 160 °C without any additional cooling. According to require-ments, the surfaces of the flatness measuring rollers can be designed with a specific roughness or wear resistance. The measuring signals are transferred contact-free to the plant computer.

This is where SMS Siemag-developed software comes in, precisely analyzing the data using a mathematical model.

The model-based analysis software enables exact adjustment of the measuring system to all the tech-nological framework conditions, including compen-sation of thermo-mechanical influences.

Online sensor technology: Contamination sensor for rolling oilWith our rolling oil contamination sensor (ROCS), we have developed an innovative online sensor system that measures rolling oil contamination and has al-ready proven its worth in practical application. The device makes it possible to determine the quantity and size of particles in the rolling oil.

The measuring principle behind it is the so-called light transmission process. Applying the measured values, it is possible to quickly optimize the opera-tion of the filter system, in this way also optimizing the surface quality of the cold-rolled strip. What is more, the efficiency of alternative filtering means can be tested.

ALUMINUM ROLLING MILLS

High-efficiency strip cooling deviceTandem mills deliver top productivity because the roll passes can be performed in one go without in-terruption. However, so far the resulting high strip temperatures have made the process impractical for highly productive cold rolling of aluminum because of the easily ignitable rolling oil used.

That is why we set about designing an innovative strip cooling system with the name “High Efficiency Cooling”. Its high cooling power makes it especially efficient in tandem rolling, even for aluminum cold strip.

Auto body with top surface qualityIn the upcoming years, the global automotive in-dustry will rely even more on aluminum for weight optimization in new vehicle models. It was this that inspired us to develop a rolling process that meets the automotive industry’s high demands on plate with defined surface textures. In the SMS Siemag

Flatness measuring roller.

No additional cooling

necessary, even at

strip temperatures of

up to 160 °C

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Technikum technology center, we are able to perform rolling tests under near-reality conditions. Even be-fore we start work on these special technological challenges, we can determine the effects on the rolled product and the design of mill stands under different process conditions.

STRIP PROCESSING LINES

Trimming scrap coiler for high-strength steel gradesSMS Siemag has developed a new trimming scrap coiler for the most difficult applications. It can handle high-strength material at very high speeds. The main difference compared to conventional coilers is the high rigidity of the new double-mandrel design. This enabled us to increase the maximum coiling weight and capacity. Another advantage is the optimized scrap roll ejection, which reduces the downtimes that make all the difference to high-speed plants. We also improved the hydraulic switching and provided

a simple opening mechanism on the side walls. In the course of this development work, we carried out extensive structural and dynamics simulations.

Test straightener at RWTH AachenIn April 2012, the first plate was straightened on the new test straightener at the Rheinisch-Westfälisch Technische Hochschule Aachen (RWTH Aachen Uni-versity). The machine is part of a joint research project by SMS Siemag and the university’s Institute of Metal Forming (IBF) that gives both sides the op-portunity to share know-how while combining theory and practice. We can closely examine straightening processes and compare the results with those from simulation models. This is how we deepen our fun-damental understanding of the straightening process and the forces at work, so we can develop new control strategies. After conclusion of the project it should be possible to very accurately predict the behavior of the straightening process and to react automatically to process deviations.

Tandem rolling mill for aluminum.

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Annual Report 2012SMS Siemag Annual Report 2012SMS Meer

SMS MEER

Following a very successful business year in 2011, the order intake in the SMS Meer Business Area fell in 2012. The value declined to EUR 1,152 million – down 15% compared with the previous year. On the other hand, sales improved slightly to EUR 1,199 million after reaching EUR 1,197 million the year before.

In terms of profit, the SMS Meer Business Area matched its good result from the previous year. All the product units plus Service contributed to the success of the past business year.

After years in which the Chinese market was responsible for the lion’s share of growth in the business area, this changed significantly in 2012. It was the first time for many years that the USA became the most stable market for our products. Demand was high especially for tube plants. New methods of oil and gas extraction caused a surge in demand, which foreign manufacturers are also increasingly aiming to meet with their own production facilities in the USA. However, American companies are also expanding their capacities to cope with the growing domestic demand for steel, copper, and aluminum products.

There was also greater project activity in Russia compared with earlier years – especially in the first quarter of 2012. Luckily, this trend has continued since the political situation settled after the presidential election.

In China, on the other hand, the political uncertainty was too high to allow the initiation of the usual number of large projects. Particularly in the area of tube production, overcapacities were revealed, and Chinese companies tried to offset them by increasing exports.

The demand for large metallurgical plants in the Middle East, however, continued unabated. The development of the necessary infrastructure in the Arab region regularly generates new projects, especially in the long products sector.

CHANGING MARKETS

DECLINING ORDER INTAKE

Dr.-Ing. Joachim Schönbeck,

President and CEO

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Managing Board of SMS Meer GmbH

The exceptional boom in the aluminum industry continued. Unlike the steel market, this is an area where China remains the engine of growth because of its huge backlog of demand.

New recruitment of staff in the Asian growth regions by the business area continued in 2012. In India, a large service unit was established, plus capacities in our own workshop. There was further expansion in China (SMS Meer Engineering Shanghai), particularly in manufacturing.

SMS Elotherm was able to stay on its course for growth. With the takeover of the American company Tech Induction, the business area strengthened its presence in North America.

At SMS Meer, service means providing our customers with higher productivity and plant availability. Our business partners profit from higher product quality and lower operating costs. Faced by overall market sluggishness, the Service Product Unit was not quite able to maintain the raid growth rate of the previous years.

However, SMS Meer is not only expanding its international branches and services. It is also investing in its production areas. A total of EUR 60 million will be invested in the Mönchen-gladbach plant by 2014 – spending not only on new workshops, but especially on modernizing our machine tools. “This is how we’re boosting productivity and cutting delivery times,” says Dr. Joachim Schönbeck, President and CEO of SMS Meer.

TRANSFER OF COMPETENCIES TO NATIONAL COMPANIES

DIFFICULT MARKET SITUATION FOR SERVICES

MODERNIZATION OF PRODUCTION MAKES PROGRESS

Jens Barth,

Sales

Norbert Theelen,

Deputy Member of the Managing Board

Torsten Heising,

Commercial

Geschäftsbericht 2012SMS Meer Annual Report 2012SMS Concast

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STEELMAKING AND CONTINUOUS CASTING TECHNOLOGY FOR LONG PRODUCTS

Record demand

Integrated plants: Order intake increased again

Electric-arc furnaces, secondary metallurgy, and continuous casting technology on course for growth

Combined continuous caster for billets and round formats goes to BMM Ispat in India

Order from Ivaco Rolling Mills, Ontario, Canada, for a three-strand billet caster

RECORD DEMAND

SMS Concast registered another increase in order intake compared with 2011. Once again, demand for electric-arc furnaces, continuous casting technology, and secondary metallurgy for long products rose. The integration of SMS Concast into SMS Meer created additional market opportunities that the company successfully exploited. Both order intake and sales achieved record levels.

INTEGRATED PLANTS: ORDER INTAKE INCREASED AGAIN

SMS Concast draws on more than 30 years of experience with integrated plants for long prod-ucts and is constantly improving its solutions. Taiyuan Iron & Steel (TISCO) ordered one of China’s largest and most modern continuous casters from SMS Concast. Apart from this three-strand caster for round blooms in various sizes, SMS Concast is also supplying two 80-t ladle furnaces to Taiyuan. Just one of the features that ensure high steel quality is “Dynamic Mechanical Soft Reduction” (DMSR). Also included in the supply package is a simulation software based on the finite elements method (FEM).

Parallel to this, TISCO has placed another order with SMS Siemag for an X-Melt® CONARC® furnace unit plus an energy recovery plant that cuts CO2 emissions. This overall solution complies with SMS ecoplants standards for sustainable production. The

High steel quality

attracts customers: one

of the country’s largest

continuous casters is

now installed at TISCO

in China

investment means TISCO can now supply the Chinese market with railroad wheels for high-speed trains.

Steelmaking plant with annual capacity of 350,000 t: The plant from SMS Concast for El Marakby meets tough environmental regulations and helps significantly boost resource efficiency in steel production.

El Marakby Steel ordered a steelmaking plant with an annual capacity of 350,000 t from SMS Concast. Included here are a 45-t electric-arc furnace, a ladle furnace, and a three-strand billet caster. The square billets with an edge length of 130 mm are processed in El Marakby’s rebar mill in Giza near Cairo. The mill has an annual capacity of 240,000 t. Any super-fluous billets cast on the plant from SMS Concast will be sold on the market. Today, Egypt is still grap-pling with the aftermath of the revolution, and en-suring the electricity supply is a big challenge. This plant from SMS Concast meets strict environmental standards and helps significantly increase resource efficiency in steel production.

Al-Qaryan Steel in Saudi Arabia has contracted SMS Concast to design, build, and commission a minimill in Dammam. An induction furnace, ladle furnace, and two-strand billet caster will be supplied in the first project phase.

This gives Al-Qaryan the equipment it needs to efficiently produce normal billets.

Annual Report 2012SMS Meer Annual Report 2012SMS Concast

In order to optimize the overall layout, the customer plans to expand its facility with a second steelmaking plant and a caster as well as a rolling mill for rebar for a production volume of 600,000 t per year. Due to a construction boom and increasing investment, the demand for steel in Saudi Arabia has soared in recent years.

ELECTRIC-ARC FURNACES, SECONDARY METALLURGY, AND CONTINUOUS CASTING TECHNOLOGY ON COURSE FOR GROWTH

Last year, SMS Concast attracted a large number of new orders for electric-arc furnaces and contin-uous casters for tonnage steel and special products. For example, Timken in Canton (Ohio/USA) placed a major order for a vertical continuous caster for large blooms. The new three-strand plant will be specially equipped to produce top-quality blooms. It is already designed for future extension to four strands. SMS Concast will supply the entire electrics and automation complete with level-2 process con-trol. Timken will use the plant to meet the growing demand for bars made of special steels. Together with a new ladle refiner, the plant will increase the shippable capacity of the Faircrest operation by 25%, and enable it to produce a broader range of large-diameter bars. This new order represents a continuation of the long partnership between SMS Concast and Timken, which started in the 1960s with the supply of a curved-mold bloom caster.

Vertical three-strand continuous caster: This represents a continuation of the long partnership between SMS Concast and Timken, which started in the 1960s with the supply of a curved-mold bloom caster.

Tianjin Pipe (Group) Corporation (TPCO) America aims to produce 760,000 t of round blooms per year using a new steelmaking plant from SMS Concast. Included in the supply scope are a four-strand caster for round formats, an electric-arc furnace, a ladle fur -nace, and a vacuum degassing plant. Furthermore, SMS Concast will train the TPCO staff who will work on the plant in the future.

Construction boom:

600,000 t of steel per

year for Saudi Arabia

Extended portfolio and optimized pro d-uct quality: ArcelorMittal Ostrava has contracted SMS Concast to modernize its continuous caster.

ArcelorMittal Ostrava has awarded SMS Concast a contract for the extensive modernization of one of its casters. After the revamp, the company will be able to extend its product range and optimize product quality. In the future, the Czech company will be able to produce round formats in different sizes up to 400 mm in diameter. The tailor-made plant is the second SMS Concast has supplied to this cus tomer. SMS Concast is also supplying a 205-t vacuum de gasser with mechanical pumps to ArcelorMittal Ostrava.

A combined continuous caster is going to BMM Ispat in Hospet (India). Making use of the annual capacity of 1.1 million tonnes of billets and round blocks, BMM Ispat will substantially increase its productivity with the new plant. The five (six-strand) continuous casters will produce both square and round profiles. Integrat-ed into the system are mold tubes with CONVEX® technology from SMS Concast for high casting rates at constant high quality. With this expansion of its capacity, BMM Ispat will become the second-largest steel producer in the Indian state of Karnataka.

Ivaco Rolling Mills in Ontario (Canada) has ordered a three-strand billet caster from SMS Concast. It will use the new plant to increase its production capacity for the Canadian and international auto-motive steel markets.

Growth at SMS Concast was driven above all by ser-vices such as maintenance, repairs, and revamps. The company systematically pursued its goal of forming strong partnerships with customers. Tubos de Acero de Mexico (TAMSA) in Tejeria (Mexico) contracted SMS Concast to revamp its continuous caster. Now a new stopper system and a modified continuous casting geometry ensure even better production effi-ciency. This will enable TAMSA to produce high-alloy steels in the future.

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Geschäftsbericht 2012SMS Meer

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Annual Report 2012SMS Concast


INTEGRATED PLANTS– Al Qaryan, Saudi Arabia;

minimill with 25-t induction furnace, ladle furnace, one 2-strand continuous caster for billets, complete with all auxiliary facilities

– El Marakby for Steel, Egypt; minimill with 45-t electric-arc furnace, ladle furnace, one 3-strand continuous caster for billets, complete with all auxiliary facilities

– Taiyuan Iron & Steel, China; two 80-t ladle furnaces, one 3-strand continuous caster for large round blooms; joint project with SMS Siemag

ELECTRIC-ARC FURNACES– Vallourec Mannesmann, France;

90-t electric-arc furnace, including revamping and installation work

– Republic Technologies, USA; 150-t electric-arc furnace and alteration of auxiliary facilities

SECONDARY METALLURGY– ArcelorMittal Ostrava, Czech Republic;

205-t vacuum degasser with mechanical pumps

CONTINUOUS CASTING TECHNOLOGY– Timken, USA;

one 3-(4)-strand vertical continuous caster for blocks– TPCO, USA;

one 4-strand continuous caster for round formats– Rathi Super Steel, India;

one 2-strand continuous caster for round formats– ArcelorMittal Ostrava, Czech Republic;

one 6-strand continuous caster for round formats– Ivaco Rolling Mills, Canada;

one 3-strand continuous caster for billets– BMM Ispat, India;

one 5-(6)-strand continuous caster for billets– Sona Alloys, India;

one 2-strand continuous caster for billets

INTEGRATED PLANTS– Pomina Steel Corp, Vietnam;

100-t electric-arc furnace and ladle furnace as well as one 5-strand continuous caster with all auxiliary facilities

ELECTRIC-ARC FURNACES– Maanshan, China; 110-t electric-arc furnace– Renzhong, China; 110-t electric-arc furnace– Hod, Israel; 70-t electric-arc furnace

SECONDARY METALLURGY– Dalmine Tenaris, Italy; 80-t ladle furnace– Olifer, Italy; 60-t vacuum degasser

CONTINUOUS CASTING TECHNOLOGY– Dongbei, China;

one 3-strand continuous caster for billets and one 2-strand continuous caster for round blooms (800 mm)

– Oezkan, Turkey; additional strand for the continuous caster for billets

– Tubos de Acero de Mexico (TAMSA), Mexico; modernization of the continuous caster

[1] [2]

[ 1 ] | A look inside the mold at the end of the solidifi ed strand. [ 2 ] | Large dimensions are also necessary for handling.

Location: China

DONGBEI SPECIAL STEEL

WORLD’S LARGEST CONTINUOUS CASTER COMMISSIONED

In 2012, a 800-mm bloom continuous caster was success-fully commissioned at Dongbei Special Steel in Dalian City (Liaoning Province, China). That means the company is now operating its third continuous bloom caster from SMS Concast. “This continuous caster is a milestone in terms of mechanical engineering, electrics, and process technology. It sets a new benchmark in the steel casting industry,” said Luis Hernandez, CEO of SMS Concast. “We integrated various technological innovations. The fact that Dongbei has chosen us as its partner three times already proves we are on the right course with our technology.”

With the new plant, Dongbei and SMS Concast are con tinuing their long-lasting partnership. Just like the previous plants in Dongbei-Beiman (2002) and Dongbei-Dalian (2011), the new continuous caster produces high-quality special steel blooms. It comes with an an-nual capacity of up to 450,000 t. The machine casts blooms with diameters of 600 mm to 800 mm.

Dongbei Special Steel uses the blooms to forge large shafts, tool steel, and stainless steel on its hydraulic presses and radial forging machines from SMS Meer. It supplies these products to the oil, energy, aircraft, and automotive industry.

The 800 mm bloom is not easy to handle.

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Annual Report 2012SMS Meer

TUBE AND PIPE PLANTS

Difficult market situation except for the USA

Continued good position in seamless tube plants

Market success for welded tube plants

DIFFICULT MARKET SITUATION EXCEPT FOR THE USA

While there was strong growth in the tube sector in the USA due to a special boom there, project activity in the rest of the world was extremely low. Our Seamless Tube Plants Product Unit reacted with a service campaign that generated a lot of interest among customers because of very promising new products.

CONTINUED GOOD POSITION IN SEAMLESS TUBE PLANTS

SMS Meer attracted numerous orders for seamless tube plants in 2012. For instance, TPCO America in Corpus Christi (Texas, USA) awarded SMS Meer a contract for a new 10 ¾" tube mill with PQF® rolling technology. The plant will produce OCTG (oil coun-try tubular goods) for the crude oil and natural gas industry in the region. This will be the fifth PQF®

plant SMS Meer has supplied to TPCO.

The highlight of the plant is its BCO (bilateral change over) design. What makes BCO special is that the stands can be changed from both sides of the rolling mill. That distributes the rolling forces symmetri-cally onto the rolling mill. Because of its compact, easy-access design, the plant is very user-friendly. Apart from short changeover times, BCO also sig-nificantly improves the wall thickness tolerance.

The PQF® mill is designed for a maximum ca pa c i -ty of 534,000 t per year. Alongside the mechanical equipment, the supply scope of SMS Meer also includes the technology and automation system, the project management with erection supervision, and commissioning.

The Chinese company Anhui Tianda Oil Pipe in Anhui Province has been successfully operating a PQF® mill from SMS Meer for the production of seamless tubes since 2007. Until now, the mill has produced tubes with outside diameters of up to 10 ¾".

In 2012, Anhui Tianda placed an order with SMS Meer for a revamp of the plant. After the modernization, Anhui Tianda will be able to produce seamless tubes with outside diameters of up to 13 ³/8". Twelve new PQF® stands make it possible to produce even larger diameters.

NEW REELER GUARANTEES HIGH PLANT AVAILABILITY AND PRODUCT QUALITY

Voestalpine Tubulars ordered a new reeler from SMS Meer for its facility in Kindberg, Austria. This investment guarantees the tube producer will ben-efit from high plant availability and product quality in the future. SMS Meer is manufacturing the mill,tailor-made to the customer’s requirements. It comes with a special technological innovation: a hydraulic rapid opening device that ensures fast opening of the rolls in the event of stickers. That prevents damage to both the product and the machine.

Symmetrical distribution

of rolling forces

with BCO design

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After a construction period of just two years, Jiangsu Tianhuai Steel Pipe (Jiangsu, China) commissioned its new 20" PQF® mill from SMS Meer for seamless quality tubes, and rolled the first tube. It is the world’s largest continuous rolling mill, capable of producing seamless tubes up to 508 mm in diameter. The plant’s production capacity is 500,000 t per year.

MARKET SUCCESS FOR WELDED TUBE PLANTS

Arvedi Metalfer Do Brasil in Salto (Brazil) ordered a welded tube plant from SMS Meer. That made this the second major order for SMS Meer from Arvedi within a short time. In the future, Arvedi will supply its customers with high-quality tubes for special ap-plications. Because SMS Meer will also supply the finishing line, this is a good example of an integrated solution entirely from one source. The new welded tube line is designed for a capacity of 150,000 t of tube per year. It will produce tubes in lengths rang-ing from 5.0 m to 12.6 m. The tube welding plant will achieve a maximum production speed of 130 m/min.

Once it starts operating the new plant, Arvedi will be able to manufacture high-quality, thick-walled tubes

with round, square, or rectangular cross-sections. Featuring an innovative rapid-change system, the tube welder is on average over 30% more produc-tive than conventional solutions. This is how Arvedi will be able to react flexibly to changed market re-quirements for welded tubes. It takes just two hours to adjust the plant to new tube dimensions.

To equip its tube mill in Pindamonhangaba near São Paulo (Brazil), Tenaris Confab S.A. ordered a mechan-ical expander with a newly developed straightener from SMS Meer. The groundbreaking AGT® (Advanced Geometry Technology) enables precise sizing and straightening of longitudinally welded tubes with small diameters and large wall thicknesses on a single machine.

Expanding and straightening on a single machine thanks to groundbreaking AGT®

(Advanced Geometry Technology)

This type of tube is required for offshore pipelines laid in deep sea waters. Tenaris Confab produces up to 450,000 t of tubes per year.

Innovative quick-change

system enables 30 %

higher productivity

Diameters range from 12" to 48", and wall thick-nesses from 6.4 mm to 40 mm. The maximum tube length is 12.5 m. Alongside the entire mechanical and electrical equipment, SMS Meer is also supply-ing the necessary measuring systems and process engineering.

SeAH Steel (South Korea) awarded SMS Meer the contract for a new JCO® pipe forming press. This machine can produce tubes with diameters of 18" to 64" and wall thicknesses of up to 65 mm. It will be SeAH Steel’s first production plant for 18 m long tubes. That will strengthen the company’s position as South Korea’s largest tube manufacturer. SeAH Steel produces more than one million tonnes of steel products per year.

Mechanical and electrical

equipment as well as

measuring systems and

process engineering from

a single source

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SEAMLESS TUBE PLANTS– TPCO America, USA;

10 ¾" tube mill with PQF® rolling technology– Anhui Tianda Oil Pipe, China;

alteration of the PQF® mill– Voestalpine Tubulars, Austria; reeler– Volzhsky, Russia; sizing line

WELDED TUBE PLANTS– Arvedi Metalfer Do Brasil, Brazil;

RD 140 HF tube welder including finishing line– Izhorsky Trubny Zavod, Russia;

gap closing press with a press force of 25 MN– Confab S.A., Brazil;

mechanical expander with newly developed straightener

– CSI California Steel, USA; welded tube plant– SeAH Steel Corporation, USA; forming press

SEAMLESS TUBE PLANTS– Jiangsu Tianhuai Steel Pipe, China;

20" PQF® tube mill for high-quality steel seamless tubes

– Baotou, China; 18" PQF® mill– Hengyang Steel Tube, China; 7" PQF®

WELDED TUBE PLANTS– Vyksa Steel Works, Russia;

strip preparation line for ERW plant

Location: Russia

ITZ

[1] [2]

NEWLY DEVELOPED GAP CLOSING PRESS MEETS WITH APPROVAL

Izhorsky Trubny Zavod (ITZ), based in Kolpino near St. Petersburg (Russia), has contracted SMS Meer to build a new gap closing press with a press force of 25 MN. The machine will be integrated into the existing 18-m JCOE® large-diameter pipe mill SMS Meer supplied in 2006. Recently developed by SMS Meer, the gap closing press and related process technology can produce small-diameter tubes with thick walls more cost-effectively.

Compared with a single JCO® long-stroke press, the new process triples productivity. First, the heavy plates are precisely and rapidly formed in the JCO® pipe forming press. Then, in just a few steps, the new gap closing press reduces the remaining gap to a minimum. This is the precondition for secure tack-welding. The forming process is controlled by the SHAPE software developed by SMS Meer. The result? High-quality pipes that comply with very close tolerances for demanding applications.

Project Leader Berthold Genser of SMS Meer: “What clinched the deal for ITZ was that we could prove the high productivity and precision of our gap closing press. We had already successfully tested the new technology in production trials. The results convinced ITZ.”

Furthermore, the new gap closing press is the first machine to use our variable speed pump (VSP) control system. This modern and efficient hydraulic control sys-tem considerably cuts energy and maintenance costs.

[ 1 ] | The gap closing press will be integrated into the existing large-diameter pipe mill. [ 2 ] | The erection team on the construction site.

SMS Meer built the JCOE© plant in 2006.

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LONG PRODUCTS PLANTS

Tough market with new competitors

Section and billet mills in China on course

Declining demand for light section mills

New orders for wire rod and merchant bar mills

Bright steel plants remain in demand

The market was very competitive once again in 2012.The pressure came not only from established com-petitors, but also from new vendors. Nevertheless, SMS Meer defended its position on the market.

SECTION AND BILLET MILLS ON COURSE

The Rizhao Steel Group, based in Rizhao (Shandong, China), placed an order with SMS Meer for a new section mill. With this flexible beam mill, the compa-ny is responding to the high demand for steel beams as well as shipbuilding and sheet pile sections. The section mill has the highest capacity worldwide. Designed for an annual production of 2 million tonnes, it is equipped with modern breakdown stands and latest-generation, CCS®-type universal mill stands in reversing tandem configuration. Hydraulic control and automatic program change systems ensure high efficiency. Also included in the supply scope are all the hot and cold equipment as well as the entire technology and engineering for the plant.

Jindal Steel & Power, India, contracted SMS Meer to supply a sawing plant and a railhead hardening plant. The railhead hardening plant is designed for head-hardened rails in lengths of up to 96 m. Using the SMS Meer-developed RailCool process, the plant gives the rails a fine pearlitic microstructure.

Nucor Yamato USA, a leading US producer of beams, awarded SMS Meer the contract to revamp and modernize its existing mill for sheet pile sections. The job involves replacing a rougher and a finishing stand, and installing two more stands to provide the required passes.

For Xining Special Steel, China, SMS Meer is sup-plying a merchant bar mill for high-grade structural steel. Central to the mill is a 3-roll precision sizing mill (PSM®) that can finish-roll dimensions between 16 mm and 100 mm. The same customer also contract-ed SMS Meer to supply a billet mill for large round dimensions with diameters from 80 mm to 300 mm.

Integrated here are compact, rigid CS-type billet stands. Hydraulic screwdowns, a profile measuring device, and monitor control make it possible to achieve close rolling tolerances in this dimension range.

DIFFICULT MARKET SITUATION FOR LIGHT SECTION MILLS

GV do Brasil (SIMEC Group) of Mexico placed an order with SMS Meer for a merchant bar and wire rod rolling mill. The upstream steelmaking plant will come from SMS Concast. The construction site is lo -cated in Pindamonhangaba near Sao Paolo. Designed for a capacity of 500,000 t per year, the plant pro -du ces merchant bars and wire rods in diameters from 5.5 mm to 16 mm.

SMS Meer is also supplying a combined merchant bar and wire rod mill to South Steel, Saudi Arabia. This is part of an expansion project in Jizan, where SMS Meer has already built a minimill for the same customer. The wire rod mill will be equipped with a MEERdrive® finishing block. What is special here is that the rolling modules each come with their own drive. That results in more flexibility and lower conversion costs.

Other projects on the books of SMS Meer are modernization of the light section mill of Gerdau Midlothian (Texas) as well as the bar steel mill of Acciaieria Valbruna (Italy). Abinsk Electrical Steel Works (Russia) contracted SMS Meer to supply additional mill stands to expand its pass section.

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NEW ORDERS FOR WIRE ROD AND MERCHANT BAR MILLS

Steel Dynamics Inc. (SDI) in the USA placed an order with SMS Meer for extensive expansion of its SBQ merchant bar rolling mill in Pittsboro, Indiana. To up-grade the plant, SMS Meer is supplying a reversing rougher, additional mill stands for the intermediate train, and a 3-roll precision sizing mill (PSM®). Also part of the package are the entire electrics and au-tomation as well as a new merchant bar finishing train. With this project, the fifth-largest US steel producer is strengthening its market position. Once work is complete, SDI will also be able to roll high-grade structural steels in smaller dimensions with high precision and flexibility.

Besides the two wire rod mills mentioned above for GV do Brasil and South Steel, SMS Meer received orders in 2012 for a total of 10 wire rod mills. Much of this activity was in China, where SMS Meer has achieved considerable success in cooperation with our Chinese subsidiary in Shanghai. Xinin received two wire rod mills. Gaoyi Iron & Steel placed an order with SMS Meer for two additional wire rod mills, each with two 8-stand finishing blocks. SMS Meer has already commissioned three wire rod mills for this customer.

COMMISSIONING OF LARGE PLANTS

In Germany, ArcelorMittal Hochfeld put its new wire rod mill in Duisburg Ruhrort into operation. We

delivered, erected, and commissioned the entire plant – including walking-beam furnace, rolling mill, coil handling plant, and electrics and automation. It features all the modern equipment and processes necessary for temperature-controlled rolling of the full size range from 5.5 mm to 25 mm. Furthermore, two MEERdrive® blocks integrated here mean the plant can roll all dimensions both thermo-mechani-cally and from a pass series.

At United Gulf Steel (SULB) in Bahrain, SMS Meer teamed up with SMS Concast to commission a new minimill for long products. This is a turnkey plant built in cooperation with Samsung Construction and Engineering, Korea. It rolls medium and heavy beams and sections, using beam blanks as starting material.

BRIGHT STEEL PLANTS REMAIN IN DEMAND

SMS Meer received numerous orders for bright steel plants. For instance, Heinrich Geissler in Witten, Germany, ordered a new two-roll straightener for bright steel from SMS Meer. The straightener is one of the world’s largest, at 7 m high, more than 4 m wide, and weighing 250 t. Heinrich Geissler uses the new machine to straighten round bars made of solid steel with a diameter of 250 mm. To do this, the machine applies a force of 8,000 kN. SMS Meer will also supply the entire finishing train. Heinrich Geissler is one of 49 companies in the Georgsmari-enhütte Holding (GMH). As a long-standing partner, SMS Meer has already supplied a large number of peeling and straightening machines to the GMH

111

group. It has now set new standards with this lat-est straightener.

The Chinese company Huitong Jincheng Precision Metal Manufacturing near Shanghai ordered six drawing machines from SMS Meer. With the ma-chines, Huitong Jincheng aims to meet the high demand for bright steel products in China. Especially efficient, the six machines from SMS Meer draw, cut, and straighten the bars at speeds of up to 120 m/min. What makes the finished products stand out is their extremely precise diameters and excellent surface quality. This is how Huitong Jincheng can satisfy the high requirements of its customers in the electronics and automotive industries. Working together with SMS Meer, the company is tapping into new market fields.

Outokumpu VDM (formerly ThyssenKrupp VDM) in Altena is currently taking action to strengthen its market position. As part of this strategy, it has ordered an RSM 60 regulating wheel grinding machine with complete finishing line from SMS Meer. Outokumpu VDM will use the machine to produce top-quality round bars up to 13 m long. In the future, Outokumpu VDM will monitor the sophisticated processes in the new plant fully automatically. This is because the con-trol system, process monitoring, and diameter control

as well as the linkup to the operating data logging system are included in the order. All this plus plants for emulsion treatment and air extraction comprise a complete package. SMS Meer will also take care of the entire erection work.

Ogiso Kogyo (Japan) commissioned two new grinding and polishing machines from SMS Meer in its Nagoya facility. The N1 grinding and polishing machine dras-tically cuts tooling time and grinding stone changes, enabling Ogiso Kogyo to improve its productivity. In the Nagoya plant, the company produces bars made of specially tempered steels for the automo-tive industry.

The Turkish company Hascelik commissioned a bright steel center for merchant bars from SMS Meer. The plant consists of a peeling machine and a two-roll straightener. With the new bright steel center, Has-celik will produce high-quality bar steel and can strengthen its market position. The bright steel center has an annual capacity of 50,000 t. In recent years, Hascelik has already achieved dramatically rising export sales. BGH Freital commissioned a rotary peeling machine from SMS Meer. Apart from the rotary peeling machine with a working range of 40 mm to 160 mm in diameter, SMS also supplied the complete finishing line.

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SECTION AND BILLET MILLS– JSC Evraz Consolidated, Russia; rail mill– Jindal Steel & Power Limited, China;

railhead hardening plant– Gerdau Acominas S/A, Brazil; profile measuring device– Rizhao Steel Group, China; heavy beam mill– Xining Special Steel, China; rolling mill– Nucor Yamato Steel Company, USA;

modernization of the beam mill– Deutsche Edelstahlwerke, Germany; merchant bar mill

LIGHT SECTION MILLS– Abinsk Electric Steel Works, Russia;

extension of the rolling mill– Acciaieria Valbruna, Italy; extension of the rolling mill– Gerdau Long Steel Midlothian, USA;

modernization of the rolling mill– GV do Brasil, Brazil; minimill– Simec International, Mexico;

modernization of the rolling mill– South Steel; combined merchant bar and wire rod mill

WIRE ROD AND MERCHANT BAR MILLS– Jiangsu ShenYuan Special Steel, China;

wire rod outlet of a special steel line– Xilin Iron & Steel, China;

high-speed wire rod mill with 10-stand wire blocks– South Steel, Saudi Arabia; wire rod outlet– Jiangsu ShenYuan, China;

wire rod outlet for a special steel line– Steel Dynamics, USA;

roughing rolling mill as well as new 3-roll PSM® precision sizing mill and finishing line

BRIGHT STEEL PLANTS– Heinrich Geissler, Germany;

2-roll straightener for bright steel– Huitong Jincheng Precision Metal Manufacturing,

China; six drawing machines– ThyssenKrupp VDM, Germany;

RSM 60 regulating wheel grinding machine with complete finishing line

– Stahl Judenburg, Austria; BC50 bright steel center

LIGHT SECTION MILLS– Gerdau Acos Longos, Brazil;

VCC rolling mill and billet welding plant– Sanan Iron & Steel, China; H.S.D. system– M-Metal, Thailand;

modernization of the automation for merchant bar and wire rod mill

– Emirates Steel Industries, United Arab Emirates; modernization of the merchant bar mill

WIRE ROD AND MERCHANT BAR MILLS– ShanDong Fulun Iron & Steel, China; wire rod mill– Shanxi Gaoyi Steel, China; two wire rod mills– Amsteel Mills, Malaysia;

modernization of the wire rod mill– Yuzhong; two wire rod mills

BRIGHT STEEL PLANTS– Hascelik, Turkey; BC80 bright steel center– BGH Freital, Germany;

PM4 rotary peeling machine with pull-out trolley, including finishing lines

– Ogiso Kogyo, Japan; two N1 grinding and polishing machines

– Schmolz + Bickenbach, Germany; N1 grinding and polishing machine

Location: China

FUJIAN WUHANG

CORE EQUIPMENT FOR STAINLESS STEEL ROLLING MILL WITH PSM® AND MEERDRIVE®

The Chinese company FuJian WuHang Stainless Steel based in ChangLe City, FuJian Province, awarded SMS Meer an order for the core equipment for the con-struction of a stainless steel rolling mill. The plant pro-duces wire rod and bar in coils.

Among these core machines are a 3-roll PSM® (precision sizing mill) with hydraulic roll adjustment under load capable of finish-rolling all final sizes from diameters of 13 mm to 38 mm from a single pass family. Furthermore, the PSM® produces all the necessary initial cross-sections for the wire block.

The supply scope of the PSM® includes the automatic stand-changing system, the workshop for preparation of the stands and guides, and the CARTA® system, which provides the specific setting values depending on the product and dimension.

All the finished products from the 3-roll PSM® sizing block are coiled on the newly designed coiler. This coiler ensures top quality by producing scratch-free finished products and optimal shaping, height, and coiling den-sity of the coils.

Another core component is the wire rod finishing block with MEERdrive® technology. What is special here is that each wire rod mill stand is individually driven by its own motor. The wire rod dimensions range from 5 mm to 20 mm in diameter.

The supply package is completed by a modern coil handling sys -tem with several coil transportation routes for superior martensitic, ferritic, and austenitic steel grades.

“With this modern core equipment, FuJian WuHang will be able to manufacture high-quality products very cost-effectively and with maximum flexibility,” says Liu WeiGuo, Plant Director at FuJian WuHang.

Capable of an annual production capacity of more than 300,000 tonnes, the rolling mill will roll top-quality stainless steels.

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FORGING PLANTS

Stable market situation thanks to aluminum boom

Hydraulic presses with technological innovations

High demand for extrusion presses in China

Stable market for closed-die forging machines

STABLE MARKET SITUATION THANKS TO ALUMINUM BOOM

Characteristic for the forging technology sector in 2012 was a stable market situation. The special boom in aluminum production generated high demand, particularly in China. For the hydraulic presses this led to new dimensions in product sizes, and SMS Meer responded with innovative plants and technology to the satisfaction of the customers.

HYDRAULIC PRESSES WITH TECHNOLOGICAL INNOVATIONS

ATILIM University in Ankara (Ankara Province, Turkey) ordered a direct-indirect extrusion press with a press force of 10 MN from SMS Meer. The modern press will be installed in the university’s Metal Forming Center of Excellence, where it will be used for both basic research and test series for new applications in Turkish industrial companies. Equipped with a piercing device able to integrate a mandrel, the plant can also produce seamless tubes. This makes the extrusion press highly flexible, capable of direct and indirect pressing, as well as tube production. In the future, SMS Meer will continue to cooperate with ATILIM and to support the Turkish university with process know-how and lectures in the field of research and development.

HIGH DEMAND FOR EX TRU-SION PRESSES IN CHINA

Jilin Liyuan Aluminium in Liaoyuan (Jilin Province, China) has ordered two new presses from SMS Meer: A 160-MN front-loading press and a 60-MN direct/indirect tube press. The 160-MN front-loading press will be the world’s largest modern extrusion press of its type in operation today. It will enable Jilin Liyuan to manufacture profiles up to one meter in width. The maximum profile length is 28 meters – equivalent to the railcar length of modern high-speed trains such as the ICE or the TGV. With the new machine, Jilin will be able to manufacture railcar components in a single extrusion process. That saves time, energy, and money. Extra benefits are the lightweight de-sign and high recycling capability that meet green requirements.

Nanshan Aluminium and Shandong Yankuang (both Shandong Province, China) are also going for large solutions. Almost simultaneously, they commissioned 150-MN lightweight metal extrusion presses from SMS Meer. Both plants can extrude aluminum bil-lets weighing up to 2,900 kg. Commissioning was achieved in record time. It took just three months to erect the world’s largest lightweight metal extru-sion press to date. Due to their extended product ranges, the Chinese companies are strengthening their position on the Chinese market for aluminum long products.

The 150-MN light alloy

presses can extrude

sections for railcars up to

28 meters in length in

one piece

116


STABLE MARKET FOR CLOSED-DIE FORGING MACHINES

The Indian company Ramkrishna Forgings in Jamshed-pur (Jharkhand Province, India) contracted SMS Meer to supply a new forging line. The plant is intended for products such as truck parts for India’s rapidly growing automotive industry. Included in the line are a forging roll, a wedge press, and a combined deburring and sizing press.

Whether producing steel forgings for transmission components or aluminum forgings for chassis parts – SMS Meer forging plants meet high standards.

This machine features fully automated production in the forging roll, wedge press, and combined press. Industrial robots and grippers take care of parts handling in the forging line. Also integrated into the plant is a tool holder quick-changing system. The ex-tensive automation guarantees high productivity. At the same time, the plant is flexible and can produce various component families in just a short time.

Baoji Fast Gear placed an order with SMS Meer for two fully automated 5,000-t AMP 5000 closed-die forging presses. Featuring automatic walking beams and spray technology, these fully automated eccentric

presses are ideal for forging transmission compo-nents. They provide much higher productivity for Baoji Fast Gear, producing up to 25 parts per minute. Apart from the two forging presses, SMS Meer is supplying the tool engineering and the entire process know-how. The order represents a new reference project in this region’s automotive industry.

SMS Meer is supplying two new MP/AMP 3150 closed-die forging presses to Hirschvogel Automo-tive Components. The automotive industry supplier in Denklingen (Bavaria, Germany) has been counting on SMS Meer quality for years – with 17 plants al-ready in operation. The powerful Maxima presses will be delivered to the locations Eisenach (Ger-many) and Pinghu (Zhejiang Province, China). The Hirschvogel group’s Chinese plant produces aluminum components for the automotive industry, while the German location is responsible for swivel bearings and steering parts. The closed-die forging machines offer very high precision.

SMS Meer closed-die forging presses are known for precision and low wear.

The ratio of pressure rod width to ram width is almost 1:1. The result? Minimal ram tilting and low wear. The SMS Meer automatic walking beam system guarantees high speed and high productivity – perfect for the booming automotive industry.

The automotive industry

demands flexible plants

with high productivity

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Geschäftsbericht 2012SMS Meer Annual Report 2012SMS Meer


HYDRAULIC PRESSES– SMX 1100, 125-MN radial forging machine– CEIIC, Hong Kong; 100-MN plate stretcher– CEIIC, Hong Kong; 40-MN plate stretcher

EXTRUSION PRESSES– Atilim University, Turkey;

10-MN direct-indirect extrusion press– Jilin Liyuan Aluminium, China; two extrusion presses

with 160 MN and 60 MN press force– Constellium Extrusions Decin, Czech Republic;

28-MN indirect tube press– Shandong Yankuang, China;

two extrusion presses with 75 and 82 MN

CLOSED-DIE FORGING MACHINES– Ramkrishna Forgings, India;

forging line incl. wedge press, type 12500 – Baoji Fast Gear, China;

two AMP 5000 closed-die forging presses – Hirschvogel, Germany;

two MP/AMP 3150 closed-die forging machines

HYDRAULIC PRESSES– Baoshan Iron & Steel, China;

60-MN open-die forging press– Electrostal, Russia; 16-MN high-speed press– Vitkovice Hammering, Czech Republic;

SMX 800, 18-MN radial forging machine

EXTRUSION PRESSES– Ulusan Alüminyium, Turkey;

modernization/revamping of 25/27-MN extrusion press– F. W. Brökelmann, Germany;

modernization/revamping of 17/23-MN extrusion press– Shandong Yankuang, China;

150-MN light alloy extrusion press– Shandong Yankuang, China;

modernization/revamping of 50/55-MN extrusion press– Nanshan Aluminium, China;

150-MN light alloy extrusion press– China Aluminium International, China;

36-MN extrusion press

CLOSED-DIE FORGING MACHINES– Sino Truk, China; MP 8000 eccentric forging press– Sino Truk, China; type 12500 wedge press– Hirschvogel Automotive Components, Germany;

two MP/AMP 3150 closed-die forging presses– Peugeot, France; modernization/revamping of APU 2000

forging press (in cooperation with Actemium)

Location: Russia

ELECTROSTAL

ELECTROSTAL EXPANDS PRODUCT PORTFOLIO WITH HIGH-SPEED FORGING PRESS FROM SMS MEER

The Russian company Electrostal, based in Electrostalnear Moscow, successfully commissioned a new high-speed forging press from SMS Meer. The new machine is the first of its type to be installed in Russia. Its impressive speed and precision allow Electrostal to manufacture a broad range, including high-strength alloys. With a press force of 16 MN, the new machine produces quality forgings for special applications, for instance in the aerospace and energy industries.

Electrostal used to produce these products on various machines, which was much less efficient. “We worked very closely with SMS Meer and developed a strong level of trust. The new press has a wide range of uses. That means we can expand our product range significantly,” says Yevgeny Shilnikov, General Director of Electrostal.

Highly automated, the press can process up to ten work-pieces per hour. Furthermore, it uses very little energy, cutting production costs. Shilnikov says: “With the new plant, we’ve taken two steps forward: we save ener-gy and we produce cost-efficiently. That puts us in an ideal position to profit from the current upswing in the Russian market.”

Sergei Kononov, Technical Director of Electrostal (left) and Ulrich Vohskämper, Executive Vice President, Forging Technology Division, SMS Meer, start up the plant together.

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Aluminum and copper plants: Differentiated market development

Aluminum industry demands energy-efficient solutions

Copper plants in demand

NF METALS PLANTS

ALUMINUM AND COPPER PLANTS: DIFFERENTIATED MARKET DEVELOPMENT

While demand for copper and aluminum plants in China remained strong, project activities elsewhere in the world stagnated.

ALUMINUM INDUSTRY DEMANDS ENERGY-EFFICIENT SOLUTIONS

There was a focus in the aluminum industry in 2012 on energy-efficient solutions. This translated into a surge in demand for Ecomelt furnaces and belt-type billet casting lines from Hertwich Engineering.

The efficient Ecomelt furnaces are ideal for melting scrap. That is because they consume much less gas than conventional melting furnaces. The results are lower energy costs as well as lower CO2 emissions. Furthermore, the immersion melting process reduces metal loss to below 3%.

Impressed by these benefits, Novelis Italia of Pieve (Italy) contracted Hertwich Engineering to supply and erect an Ecomelt PS-80 scrap melting furnace with preheating shaft. The new plant is part of a campaign by Novelis to increase the worldwide recycling rate in the company from 34 to 80% by 2020. In the preheating shaft, a hot air stream pre-heats the aluminum scrap at temperatures of below 650 °C, thus minimizing oxidation of the material.

Impol in Slovenska Bistrica (Slovenia) ordered an Ecomelt PS-120 scrap melting furnace with preheat-ing shaft from Hertwich Engineering. This plant pro-duces 120 t per day and is intended mainly for melting section scrap and plates. Depending on the level of impurity, the gas consumption can be reduced to 400 kWh/t. That is significantly less than the figure for conventional melting furnaces.

Ecomelt furnaces reduce

energy consumption, CO2

emissions, and costs

Aluminij Mostar (Bosnia-Herzegovina) ordered a belt-type billet casting line from Hertwich Engineeringto boost its productivity and flexibility.

Fitting furnaces with preheating shafts reduces gas consumption to between 350 and 550 kWh/t.

The plant comprises a melting and casting furnace as well as an air-cooled belt-type billet casting line. It has a design capacity of 10 t of billets per hour weigh -ing 7 to 10 kg. The air cooling system ensures a high metal quality. Furthermore, high-silicon and other eu-tectic and hypereutectic alloys can be efficiently cast.

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In 2012, several plants from Hertwich Engineering were commissioned. For instance, Aleris Recycling in Deizisau (Germany) now operates a further Ecomelt scrap melting furnace with a preheat shaft. A simi-lar melting furnace from Hertwich Engineering has already been in production at Aleris since 2006. The new furnace also operates very energy and cost-efficiently.

Planning to increase both production and flexibility, Trimet Aluminium commissioned an billet casting line from Hertwich Engineering. The company will expand its casting shop with the new line.

Whether casters for slabs, or CONTIROD® plants for copper wire rods – copper plants from SMS Meer are in high demand world-wide.

The air-cooling system keeps the thermal stress on the molds low, while there is no contact between water and molten aluminum. Using this technology, Trimet achieves excellent metal quality in terms of hydrogen content. Trimet can cast up to 9 tonnes of in -gots, each weighing 7 to 10 kg, per hour.

POSITIVE MARKET DEVELOPMENT FOR COPPER PLANTS

Once again, it was above all Chinese companies that invested in copper plants in 2012 and generated a good order intake. However, other business around the globe also developed well.

Aleris Deizisau chose

the energy-saving

Ecomelt technology for

the second time

Positive business

development in China

Tongling Nonferrous Metals of China placed an order with SMS Meer to supply two Technica horizontal continuous casters. The plants produce high-quality cold-rollable copper alloy strip. The company also ordered a CONTIROD® plant.

SMS Meer is supplying Anhui Xinke New Materials in China with a vertical discontinuous caster for slabs. The plant features a special mold technology that enables it to cast even special alloys such as copper-iron.

SMS Meer received an order from the Mexican com-pany Nacional de Cobre for a sawing plant for copper alloy slabs and a caster for brass billets.

Yangzhou Baosheng Copper Industry, China, awarded SMS Meer a contract for a CONTIROD® plant, which will produce up to 320,000 t of copper wire rods per year. Another CONTIROD® plant will go to Wuxi Rongsheng in China.

At Metallo-Chimique in Belgium and JSC Uralelek-tromed Russia, the anode casting wheels supplied by SMS Meer went into production smoothly.

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ALUMINUM PLANTS– Novelis, Italy; Ecomelt PS-80– AMAG, Austria; GOSO7 melting/casting furnace– EMAL Emirates Aluminium, United Arab Emirates;

two chamber homogenizing furnaces, ultrasonic testing facilities, batch handling

– Aluminij Mostar, Bosnia-Herzegovina; belt-type billet casting line and melting/casting furnace

– Impol, Slovenia; Ecomelt PS-120– Dubai Aluminium (Dubai), United Arab Emirates;

two helical ultrasonic testing facilities– Constellium, Czech Republic; Ecomelt PR30– Zhongwang, China;

two plate stretchers

COPPER PLANTS– Zhejiang Hailiang, China; drawing plant for brass rods– Tongling Nonferrous, China;

two new continuous casters, modernization of a caster, and one CONTIROD®

– Yangzhou Baosheng Copper Industry, China; CONTIROD® line

– Wuxi Rongsheng, China; CONTIROD® line– Nacional de Cobre, Mexico;

sawing plant for slabs and caster for brass billets– Anhui Xinke New Materials, China;

vertical discontinuous caster for slabs

ALUMINUM PLANTS– ISAL, Iceland;

continuous homogenization plant and sawing plant (step 1)

– Asas, Turkey; continuous homogenization plant, helical ultrasonic testing facilities, sawing plant

– Aleris Recycling, Germany; Ecomelt PS-100– Hammerer Aluminium Industries (HAI), Austria;

chamber homogenizing plant– NZAS, New Zealand;

helical ultrasonic testing facilities– Dubai Aluminium (Dubai), United Arab Emirates;

chamber homogenizing plant and cooling system– Trimet, Germany; billet casting line

COPPER PLANTS– Jiangxi Copper, China; CONTIROD® line– Shandong Xiangrui, China; CONTIROD® line– Zhejiang Honglei Copper Industry, China;

CONTIROD® line– Taewoo Metal, Korea; vertical continuous caster– Metallo-Chimique, Belgium; anode casting wheel– Uralelektromed, Russia; anode casting wheel

Location: Austria

HAMMERER ALUMINIUM INDUSTRIES

HOMOGENEOUS MATERIAL PROPERTIES AT LOW ENERGY CONSUMPTION

In 2012, Hammerer Aluminium Industries (HAI) in Rans-hofen (Austria) commissioned a chamber homogenizing plant from Hertwich Engineering. The new plant is the second of its type in the HAI casthouse. It features a furnace designed for the extra-long holding times nec-essary for special alloys. There is increasing demand for these furnaces from Hertwich Engineering.

The plant can heat billets with diameters of 153 mm to 381 mm and lengths of up to 7 m. All this comes with a furnace capacity of 43 t. The chamber homogenizing plant makes it possible to implement special homogenizing recipes for hard alloys. Included in the features are precise temperature control and step-by-step heating.

Close cooperation meant the plant went into operation on schedule.

The accurate temperature control ensures top quality.

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Green and energy-efficient solutions in demand

Induction hardening plants for the automotive industry

New orders for induction heating plants

Induction tempering plants in operation worldwide

Further growth for reheating furnaces

HEAT TREATMENT TECHNOLOGY

GREEN AND ENERGY-EFFICIENT SOLUTIONS IN DEMAND

There was a welcome recovery last year on the mar-ket for thermal technology. Driven by the automotive industry, demand for SMS Elotherm induction solu-tions remains strong. Simultaneously, the market for conventional reheating furnaces grew.

INDUCTION HARDENING PLANTS FOR THE AUTOMOTIVE INDUSTRY

In 2012, SMS Elotherm booked eight orders world-wide for EloCrank™ crankshaft hardening machines. What makes these machines particularly attractive is their compact design and reduced energy con-sumption. The flexibility of EloCrank™ means en-gine manufacturers can quickly adapt to changed crankshaft geometries.

NEW ORDERS FOR INDUCTION HEATING PLANTS

Ovako Tube and Ring in Hofors, Sweden, awarded SMS Elotherm two orders for induction hardening plants. The EloBar™ and EloTube™ machines com-bine high energy efficiency with a small footprint.

Destined for the Ovako forging shop, the EloBar™ will be used to heat steel bars with a production

Flexible modular design

for customized solutions

capacity of up to 8,000 kg per hour. The EloTube™ plant will be installed upstream of an existing Assel rolling mill in the seamless tube plant at Ovako. It makes sure the temperature in the hollow blocks is more homogeneous, leading to higher product quality.

Today’s automotive engines require more compact, high-strength components.

SMS Elotherm is to supply an EloForge™ in duction heating plant for heating steel blocks to Forjasul Canoas in Rio Grande do Sul, Brazil. The compact design comprising various modules can be flexibly combined for optimal productivity, a stable process, and high product quality. Included in the product range of Forjasul Canoas are forged hooks, electric hardware, and vises.

Again trusting in technology from SMS Elotherm, the Russian company Promco has bought another inductive bar heating plant plus loading equipment to produce steel balls for grinders.

The company based in Nizhny Tagil (Russia) operates among other facilities a forge for steel balls ranging in size from 120 mm to 140 mm. With this order for an EloBar™ bar heating plant to be installed upstream of a ball rolling mill, Promco is expanding its long-term competence in this area. With a total power of some 1,000 kW, the plant heats up to 3 tonnes of bar mate rial per hour to a forging temperature of 1,150 °C.

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Teaming up in a joint project, Salzgitter Flachstahl GmbH and SMS Siemag are developing a new belt caster. SMS Elotherm supplied a damping stirring system for the project.

The inductive stirring system ensures especially high steel strip quality.

Due to the innovative electromagnetic stirring sys-tem, the molten metal spreads evenly over the casting belt. That results in HSD® (high strength and ductility) steel strip.

INDUCTION TEMPERING PLANTS IN OPERATION WORLDWIDE

Whether for tubes or bars – tempering plants from SMS Elotherm are in demand worldwide. With its Quench & Temper System, SMS Elotherm won orders in 2012 from Tubos Reunidos (Spain) and Tri-Control (China), among others.

In 2012, Dongbu Special Steel (Korea) commissioned a Quench & Temper plant for tempering merchant bars. Joining forces with SMS Meer, SMS Elotherm also installed railhead heating systems for SAIL Bhilai Steel Plant (India) and Handan Iron and Steel (China).

Global demand for

SMS Elotherm heating

plants for bars,

tubes, and merchant

bars is stable

FURTHER GROWTH FOR REHEATING FURNACES

Once again in 2012, SMS Meer consolidated its mar-ket position in conventional billet/bloom reheating furnaces. There was particularly strong demand for tube mill furnaces and heat treatment technology. Globally, companies successfully put various plants into operation throughout the year.

US Steel Lorain (USA) contracted SMS Meer to re-vamp its SRF shell reheating furnace as well as new charging/discharging equipment for its existing rotary-hearth furnace. Outokumpu (Sweden) and Nucor Yamato (USA) placed orders with SMS Meer for slab/bloom charging and discharging machines to be integrated into new and existing furnaces. Nucor Connecticut and SMS Meer signed a contract for the supply of a 60-t/h pusher furnace.

Recently, SMS Meer developed a new, integrated furnace heating optimization system (SMS Prome-theusTM). The innovative solution consumes less material and fuel than conventional systems of this type. It reduces CO2 emissions and enables plant operators to produce more cost-effectively.

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INDUCTION HARDENING PLANTS– ZF Lenksysteme, Germany; two EloShaft™ plants– Skoda, Czech Republic; two EloCrank™ plants– VW Braunschweig, Germany; EloFlex™ plant– GM, Mexico; EloCrank™ plant– GM, Korea; EloCrank™ plant– GM, China; two EloCrank™ plants– GM, USA; EloCrank™ plant– Shanghai GKN, China; four EloFlex™ plants– ZF Shanghai Steering, China; three EloShaft™ plants– VW FAW Engine, China; EloCrank™ plant

INDUCTION HEATING PLANTS– Moritani for JFE Steel, Japan;

EloStrip™ plant for strip edge heating– Hirschvogel, China, USA, Germany;

four EloForge™ plants for billet heating– Saudi Steel Pipe, Saudi Arabia;

EloSeam™ plant for seam annealing– SMS Meer for CSI, USA;

EloSeam™ plant for seam annealing and EloWeld™ plant for ERW tube welding

– Ovako Tube & Ring, Sweden; EloTube™ plant for tube heating

– SMS MEER for Jindal Steel & Power, India; railhead heating plant

– INA Schaeffler, Germany; EloBar™ plant for bar heating– EIE for Peugeot, France; EloBar™ plant for bar heating– Cotarko, Germany; EloBar™ plant for bar heating– Sroubarna Kyjov, Czech Republic;

two EloBar™ plants for bar heating– SMS Siemag for Nucor Steel, USA; slab heating plant

INDUCTION TEMPERING PLANTS– Tubos Reunidos, Spain;

Quench & Temper plant for tempering tubes– Tri-Control, China;

Quench & Temper plant for tempering merchant bars

REHEATING FURNACES– Nucor Steel Connecticut, USA;

new 60-t/h heating furnace in pusher furnace design– Outokumpu, Sweden;

handling machines for heat treatment furnace– Nucor Yamato Blytheville, AR, USA;

charging/discharging equipment for beam blanks and blocks

– USSC Lorain, OH, USA; revamping of tube reheating furnace

– USSC Lorain, OH, USA; billet charging/discharging equipment

– Steel Dynamics, Inc. (SDI) Columbia, IN, USA; level-2 heating furnace and fine tuning

MAJOR ORDERS

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INDUCTION HARDENING PLANTS– Shanghai GKN, China; nine EloFlex™ plants– Daimler, India; ModuLine™ individual plant– MAG IAS GmbH, Germany for BMW, China;

EloCrank™ plant– MAG IAS GmbH, Germany; EloCrank™ plant– GM, Hungary; two EloCrank™ plants– FAW VW, China; two EloCrank™ plants– BMW Hams Hall, UK; two EloCrank™ plants– Gebr. Heller, Germany; EloCrank™ plant– Gebr. Heller, Germany for FAW, China; EloCrank™ plant

INDUCTION HEATING PLANTS– Sona BLW, Germany; EloForge™ plant for block heating– Metaldyne Zell, Germany;

EloForge™ L plant for block heating– Schmiedetechnik Plettenberg, Germany;

EloForge™ L plant for billet heating– Promco, Russia; EloForge™ L plant for block heating– GFM, Austria;

EloForge™ individual plant for individual heating– SMS Siemag for Salzgitter, Germany;

damping stirring system– Hirschvogel, Germany, China; two control units– Bifrangi, Italy; iZone™ control unit– Arvedi, Italy; EloSeam™ plant for seam annealing– Daimler, Germany; press welding plant– Schöler, Germany;

three EloWeld™ plants for tube and section welding– Danieli W + K Industrie, Germany;

EloWeld™ plant for tube and section welding– GPT Stal, Poland;

EloWeld™ plant for tube and section welding– Benteler Rothrist, Switzerland;

EloWeld™ plant for tube and section welding

– ArcelorMittal Roman, Romania; EloTube™ plant for continuous tube heating

– Omnia, Slovakia; EloBar™ plant for bar heating– ArcelorMittal Vinton, USA;

EloBar™ plant for bar heating– Schmiedetechnik Plettenberg, Germany;

EloBar™ plant for bar heating– EIE for Peugeot, France; EloBar™ plant for bar heating– INA Schaeffler, Germany; EloBar™ plant for bar heating– Jiangsu Pacific Precision, China;

EloBar™ plant for bar heating

INDUCTION TEMPERING PLANTS– Dongbu Special Steel, Korea;

Quench & Temper plant for tempering merchant bars– SMS Meer for SAIL Bhilai Steel Plant, India;

railhead heating plant– SMS Meer for Handan Iron and Steel, China;

railhead heating plant

REHEATING FURNACES– South Steel, Saudi Arabia;

100-t/h walking-beam furnace– Tenaris Siderca, Argentina;

two walking-beam furnaces for the thermal processing line, 51.6 and 60.8 t/h

– ArcelorMittal Hochfeld GmbH, Ruhrort, Germany; 110-t/h walking-beam heating furnace

– SULB Yamato, Bahrain; 180-220-t/h walking-beam heating furnace

Location: Korea

DONGBU STEEL

MORE FLEXIBILITY: INDUCTIVE TEMPERING FOR DONGBU STEEL

Dongbu Steel (Korea) commissioned its first inductive tempering plant from SMS Elotherm. The TemperLine™ for inductive heat treatment of cold-drawn alloyed steel bars is highly versatile. It can process various bar dimen-sions and produce material with different mechanical properties and microstructures.

SMS Elotherm supplied the entire system including ma-terial handling, inductive heating, quenching, tempering furnace, and cooling bed.

“The fast erection and commissioning meant our invest-ment quickly started to pay off,” says Jai Jong Park, Managing Director of Dongbu Steel Pohang. “With the TemperLine™, we can quickly adapt the system to dif-ferent dimensions when market requirements change.”

Unlike conventional methods that use a burner furnace, the inductive process produces straight bars that do not have to be straightened. As a result, Dongbu Steel saves the investment costs otherwise necessary for additional process stages. Because it works without fossil fuels, inductive heating is also very eco-friendly.

[ 1 ] | The quench & temper process tempers the bars inductively. [ 2 ] | The cooling bed in the TemperLineTM at Dongbu Steel ensures fl awless bars.

[1] [2]

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SERVICE

SMS Meer service solutions for long-lasting partnerships and good customer relations

Customized service with MEERcare®

Partnership with MEERcoach®

All-inclusive advice with MEERconsult®

Focus on internationalization and qualification

SMS MEER SERVICE SOLU-TIONS FOR LONG-LASTING PARTNERSHIPS AND GOOD CUSTOMER RELATIONS

In recent years, customer requirements and expec-tations with regard to services have changed dra-matically. Faced with increasing competition, many plant operators must focus exclusively on their core business. That is why SMS Meer again in 2012 de-veloped even more customized service solutions in its three service lines MEERcare®, MEERcoach®, and MEERconsult®. The objective of consolidating long-lasting business relations and strong partner-ships with customers was systematically pursued. Many of these services are already firmly estab-lished on the market, others were newly developed or expanded. In 2012, SMS Meer developed even more technology and maintenance packages. For example, the “Technology Partner” concept with the Seamless Tube Prod uct Unit was successfully presented at Tube & Wire in Düsseldorf. The idea is that SMS Meer offers customers modules they can use to produce seamless tubes more efficiently and environment-consciously. The issue of spare parts management also became more important in 2012.

CUSTOMIZED SERVICE WITH MEERCARE®

The MEERcare® service line from SMS Meer com-prises maintenance, repairs, modernizations, and spare parts. Value-added parts are also covered by MEERcare®, creating palpable competitive advan-tages for SMS Meer customers. Included here, for instance, are our PQSC® (premium quality surface coating) plugs, which have become firmly established on the market since their launch in 2012. The tool enables more efficient production with better results in seamless tube manufacturing. Plant operators that use PQSC® can save tool costs of up to 40%. But it’s not only about PQSC® systems. Other technology modules were also developed that make seamless tube plants greener and more cost-effective.

MEERguides® are guide systems developed by SMS Meer that can be installed in wire rod, merchant bar, and long product mills. Customers from Europe, the Middle East, the USA, and the BRIC countries chose this product in 2012. MEERguides® were in-stalled there in existing as well as new plants. Fur-thermore, SMS Meer developed its camera-based MoVE (modular video equipment) system that enables precise, reproducible setting of the guides to the size of the product. This is how it helps customers slash setting and tooling times.

In 2012, customers worldwide chose tailor-made mod-ernization solutions from SMS Meer. Among them was Chinese plant operator Wuxi Turbine Blade. For this customer, SMS Meer developed a special solution for its clutch-operated screw press. Commissioned back in 1994, the press now works reliably and safely once again thanks to the revamp. The SMS Meer service team completed the job in record time, with erection finished three months earlier than planned!

More efficient production

plus better results

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PARTNERSHIP WITH MEERCOACH®

As a partner for machines, SMS Meer is simulta-neously a partner for the people who work with the machines. What operators need for the efficient and safe operation of plants is solid know-how and a thor-ough understanding of the production and machine processes. This is where MEERcoach® comes in. The training and support programs train our customers’ employees systematically. MEERcoach® supports customers with tailor-made training units that we can even deliver at their locations if required.

For instance, in 2012 the first workshop dealing with extrusion press maintenance took place in Bellefonte, Pennsylvania (USA). More than 60 customers learned how to keep their machines in good working order and prevent stoppages. During the two-day workshop, SMS Meer experts explained the most important procedures and techniques. Now the participants benefit from a better understanding of equipment and maintenance.

Systematic customer

courses and

tailor-made training

ALL-INCLUSIVE ADVICE WITH MEERCONSULT®

MEERconsult® pools all the consulting services of SMS Meer. In 2012, SMS Meer not only advised customers on the selection, procurement, and storage of the right spare parts. We also set up warehouses for two customers that are run by SMS Meer staff. That way, customers can be sure they get important spare parts at very short notice.

SMS Meer warehousing solutions offer customers maximum security because their spare parts are tailor-made and always ready for use.

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Location: North America

Location: South America

FOCUS ON INTERNA-TIONALIZATION AND QUALIFICATION

As in previous years, SMS Meer’s service branches worldwide registered a substantial increase in demand in 2012. To guarantee uniform service and continuously train technicians and employees so they can meet grow-ing customer requirements, SMS Meer has developed a new qualification scheme. This strategy recognizes the challenge of keeping employees who mainly work abroad up to date. One example was the trip by SMS Meer trainers to Shanghai, where they instructed construction site managers working on various projects in China.

New on the scene is the SMS Meer service company in Bahrain. The team at SMS Meer Middle East S.P.C. now provides our customers in the Gulf region with products and services. In 2012, the SMS Meer company in Russia celebrated its 5th anniversary. SMS Meer expects steady growth in demand especially for maintenance services in Russia in 2013. In addition, more and more customers in the USA, India, and China chose to rely on the technolog-ical know-how of SMS Meer service staff. Encouraged by this development, we installed a center of excellence for electrics and automation services in India. In China, we registered an increase in local spare parts business. Due to our strong network of global branches, we expect growth in our global service activities.

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Location: Middle East

Location: Russia

Location: India

Location: Asia

Location: UK

Location: Europe

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directube® copper tube production – straight to the finished product

CONTIROD® copper wire rod production – top quality and efficiency

Soft starter – intelligently controlled performance

CONMOULD®: The competence center for molds

TECHNOLOGICAL DEVELOPMENT

ECOPLANTS ON COURSE FOR GLOBAL SUCCESS

Our ecoplants concept is increasingly setting new standards in the industry. Customer interest in the cost-effective, eco-friendly plant solutions is very high.

Ecoplants unite ecology and economy – reconciling sustainability and good business sense for extra cus-tomer benefit. This is a challenge almost all markets face worldwide. Especially in the metal industry with its comparatively high energy-saving potential, the issue is gaining in importance. SMS Meer has long recognized this and offers its customers solutions that address both aspects equally. Ecoplants is the new name for sustainable solutions. They reflect the fact that sustainability has become a vital factor for our customers’ growth – for both economic and eco-logical reasons: in terms of economy because saving energy and resources saves money, and ecologically because protecting resources is ever more vital. Both aspects are given equal consideration by our ecoplants solutions. The ecoplants criteria impact in four dimensions:

Significant reduction in raw material input Significant reduction in energy and operating

materials Significant reduction in emissions Significant increase in recycling

These requirements are tested and measured in a reference plant. If they are met, the product and the

reference plant receive the ecoplants label. Equally important is that customers gain economic value from the new solution. Various ecoplants solutions are already in use at our customers’ facilities.

EXAMPLES OF OTHER RECENT ECOPLANTS APPLICATIONS

directube® copper tube production – straight to the finished productWith directube®, SMS Meer has perfected an ex-tremely cost-efficient process for manufacturing copper tubes.

It directly shapes copper cathodes into tubes. Com-pared with normal extrusion processes followed by cold pilger mills, directube® saves several work-in-tensive intermediate stages: pressing, preheating, and one of two intermediate annealing processes. That results in much higher efficiency and lower cost.

directube® consists essentially of two production stages. First in line is melting the copper cathodes, continuous multi-strand casting of tube blanks, and surface treatment by milling. Second, the tube blanks are cross-rolled in a planetary rolling mill, then coiled. Finally, the tube blanks are processed into the re-quired end products.

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CONTIROD® copper wire rod production – top quality and efficiencyPractice-proven for over 40 years, the CONTIROD®

process for continuous casting and rolling of copper wire rods just got even better. How? SMS Meer has succeeded in vastly improving its energy efficiency.

That is based on innovations in both the casting and the rolling processes. The newly designed melting furnace transfers the heat from the burner gas to the raw material more efficiently, and an automatic burn-off control system makes a further difference. The result is optimized combustion conditions that both minimize oxidation of the liquid copper and re-duce gas consumption. Together, these innovations unlock an average fuel-saving potential of 27%.

Even more impressive is the reduction in electricity consumption. Variable-frequency 3-phase AC drives both for the fans in the melting furnace and for the individually driven mill stands generate a further savings potential of on average 67%.

Soft starter – intelligently controlled performanceSMS Meer light alloy extrusion presses will work even more efficiently in the future. The reason is automatic switching of the drives for much lower energy consumption.

During hydraulic extrusion of light alloys, the force is applied to the material, e.g., aluminum, using pump

drives. However, not all the drives are required for every extrusion operation. If a pump is idling, the new solution will automatically switch it off and switch it on again when it is needed. That leads to vast savings. Assuming a production time of 6,000 hours per year and average pump utilization, the energy consumption can be reduced by 50,000 kWh per drive.

This translates into savings of EUR 4 per tonne of long products produced – a huge competitive advantage.

CONMOULD®: the competence center for moldsThe mold is the heart of every continuous caster. It follows that the quality of the molds is crucial to the quality of the steel. SMS Concast produces techno-logically advanced molds. With the CONMOULD® system, SMS Concast can recondition molds several times over. That increases the service life by many times and reduces expenditure on spare parts. Plant operators benefit from measurable advantages in terms of cost, yield, and product quality. The patented design and mature technology of SMS Concast molds ensure high quality and casting speed for the entire range of casting formats. All SMS Concast molds are made in-house.

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Annual Report 2012elexis

Business model: Focus on technology and the market

New products along the added-value chain: The hot rolling mill

Comprehensive risk checking in the printing industry: The QCenter

drupa – the printing industry’s leading trade show

New, modular range for medical technology

ELEXIS AG

BUSINESS MODEL: FOCUS ON TECHNOLOGY AND THE MARKET

The elexis business model is built on the pillars cost leadership, market leadership, technology leader-ship, and diversification. This clear strategic vision is behind everything the elexis group does, and it defines concrete policy.

There was a commitment in business year 2012 to developing new products to strengthen the exist-ing technology leadership of the elexis companies. The elexis group is more than just a supplier, it is a problem solver.

Its companies optimize customers’ pro-cess routines and supply solutions for their cost-effectiveness, quality assur-ance, and manufacturing automation. The companies in the elexis group stand for re-liability, innovation, and customer benefit.

The latest campaign is designed to further strength-en the market leadership already established. The products launched in 2012 are relevant to many in-dustries, from steelmaking to printing to packaging. This strategic diversification makes the elexis group less vulnerable to fluctuations in the economic cycle.

NEW PRODUCTS ALONG THE ADDED-VALUE CHAIN: THE HOT ROLLING MILL

The production process from ore to steel covers many work stages. Crucial to the quality of the metal strip is the addition of raw materials such as titanium and other elements. But the production process itself, with its variables, also strongly influences the quality of the steel strip. The main properties of the steel, such as tensile strength, are determined by the hot rolling process.

Through its subsidiary EMG Automation GmbH, elexis AG has so far been represented exclusively in the cold rolling industry. That means it can only analyze the main steel properties at the end of the added-value chain. There have already been attempts in the past to expand our competence to hot rolling. Now that SMS GmbH has taken over the majori-ty share in the group, our cooperation has given the project a new dynamic. Also significant here is that cutting costs and pollution have become more important than ever in the steel industry. Due to increasing energy and raw materials prices, energy efficiency, resource saving, and process optimization are central issues.

They influence future investment decisions across all added-value stages in the metals industry. How-ever, each manufacturing stage comes with different technological challenges.

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Transferring application know-how between different processes – a current elexis focus – is only possible with a thorough understanding of the specific product properties, ambient conditions, and technological as well as physical requirements. There are already nu-merous promising approaches for the adaptation and diversification of elexis products and technologies.

As a company in the SMS group, and due to close cooperation with the technology departments of steel producers, the elexis group now has better access to upstream production processes. While revising our portfolio strategy, we identified new measuring systems for use in the hot rolling sector that have a relevant market potential. These developments focus on processes in the hot strip mill. Initial prototypes are currently in the test phase. They include the new EMG hotCAM for measuring the strip position be-tween the mill stands in hot broad strip rolling mills.

EMG hotCAM uses the infrared heat radiation of the still-glowing metal strip to optically measure the strip position and width. The market launch of EMG hotCAM is scheduled for 2013.

Also on the agenda in 2013 are feasibility studies for the measurement of the strip position in the hot broad strip mill based on new technological approaches.

These two examples illustrate the systematic ex-pansion of our product range within the flat steel manufacturing process. Development will be based on new technologies that have so far not been used for these applications. Ultimately, elexis will offer innovative technologies for measuring strip position in all production stages.

COMPREHENSIVE RISK CHECKING IN THE PRINTING INDUSTRY: THE QCENTER

The printing and packaging industry demands very high quality and efficient process monitoring. Cor-respondingly, many customized solutions have been developed over the years. Yet only comprehensive risk checking guarantees an overview of production conditions and ensures a cost-optimized production process.

This comprehensive risk checking is the next step in process monitoring and improvement. The solution from elexis is the QCenter. It consists of a central control system for quality assurance. Working on the basis of a newly developed software, BST Inter-national GmbH, an elexis AG subsidiary, integrated numerous functions onto one platform.

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This created an intelligent, modular tool for the man-agement of extensive production monitoring tasks.

What is especially innovative about the QCenter is the integration of the hard-ware and software components onto a single user interface. With referencing menu structures familiar from smart-phones and tablets, the interface is in-tuitive to use.

The touchscreen provides central access to functions such as zooming, selection of image details, viewing the entire strip width, and other quality assurance tasks. The QCenter is modular in structure: cameras, image analysis functions, additional lighting, and oth-er options can be integrated as required. They are all controlled via a central user interface. High-resolution line scan camera modules can also be integrated.

With this modular platform, the elexis group has achieved a milestone in comprehensive quality moni-toring of a production schedule. All existing products

for image monitoring and fault detection can be integrated into this system landscape.

Furthermore, we have developed another quality-assurance system based on the same approach for inline color spectrum measurement, named QCenter Spectral. This product measures the spectral composition of the printed colors during the ongoing production process. It enables fast color correction without interruption of production, replacing existing manual measuring methods.

DRUPA – THE PRINTING INDUSTRY’S LEADING TRADE SHOW

drupa, which takes place every four years and is the world’s largest trade show for the printing and paper industry, was held once again in 2012. It is recognized as the leading trade show for the printing and further processing industry. Stretching over 14 days, drupa is also the world’s longest industrial trade show.

BST trade show stand at drupa.

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The range of products and services on show covers everything from machines for the various printing pro-cesses (such as offset, flexographic, and digital print-ing) to packaging plants, machine accessories, and software. Big exhibitor names are Heidelberger Druck-maschinen, MAN Roland, HP, Canon, Windmöller & Hölscher, and Bobst. The total number of exhibitors was 1,844, including the elexis company BST Inter-national GmbH.

The BST group attracted a lot of interest with new products and presentations on all aspects of the QCenter. More than 900 visitors came to the 180-m2 trade show stand to find out about our product in-novations.

NEW, MODULAR RANGE FOR MEDICAL TECHNOLOGY

The elexis group reached a new milestone in plant efficiency with its development of a modular range for medical technology. The robot systems from el-exis-group company HEKUMA GmbH for handling petri dishes and pipette tips set a new technology benchmark. Featuring cycle times of under 4 seconds, elexis petri dish handling systems rank among the fastest robot solutions available on the market.

The company is successively applying the modular design principle from its medical technology to oth-er product series. Furthermore, a newly developed

electronic compound frame for steering wheel con-trol in the automotive industry has also reached market maturity.

ACQUISITIONS

Technology and market leadership were also the investment criteria for the acquisition policy of elexis AG.

The takeover of betacontrol GmbH & Co. KG in Freudenberg, Germany, enhanced its range to include further sensors for measuring thickness and layer thickness in the industrial film industry.

As a sign of its integration, the company was re-named BST ProControl GmbH and now benefits from sharing the strong brand name within the elexis group.

At the end of business year 2012, the elexis group acquired 100 % of the shares in AccuWeb Inc. in Madison (USA), mak-ing it the market leader in North America for (non-metal) strip guide systems.

Other acquisitions were the increase in the elexis share in EMG-Beijing (China) by 29% to 80% as well as a further 49% of the shares in P2T Protagon Process Technologies GmbH.

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Annual Report 2012Employees

International human resources management

Employer branding

Life-work balance

Vocational and on-the-job training

SMS Academy

Valuable suggestions

EMPLOYEESSMS GROUP

The in-depth experience of our employees and our systematic commitment to training young ca-reer-starters are success factors that secure our leading market position. Yet they present us with a challenge. On the one hand, we must preserve and nourish established know-how, and on the other hand, we need to ensure a permanent process of renewal and further qualification of our employees in our internationally expanding group. This creates the basis on which we develop attractive products and solutions for our customers at competitive prices.

The number of employees in the SMS group in 2012 increased to 13,588 (2011: 11,346 employees). This was due to the take over of 59.1% of the shares in Paul Wurth S.A. Luxembourg as well as new recruitment in China, India and Germany. Some 46% of our employees work outside Germany.

The number of employees in Business Area SMS Siemag was 7,515 (2011: 7,037), which breaks down into 4,246 in Germany and 3,296 abroad.

Mainly responsible for the increase in Business Area SMS Siemag was the initial consolidation of the Chi-nese companies SMS Siemag Technology (Suzhou) Co., Ltd. and ARES Industrial Furnaces Co. Ltd., as well as new recruitment at SMS Siemag Technology (Beijing) Co. Ltd.

The number of employees in Business Area SMS Meer in 2012 was 3,496 (2011: 3,308), broken down into 2,137 in Germany and 1,359 abroad.

This increase is attributable to the consolidation of SMS Elotherm in the USA, new recruitment in the Sales and Engineering departments of SMS Meer and Elotherm in Germany, as well as recruitment at SMS Meer Engineering in China, and SMS Concast in Spain and India.

The satisfaction and loyalty of our employees is a major success factor in their work for our cus-tomers, and we regularly monitor it in international staff surveys. The results go into the development of manager training courses, and inform personnel selection as well as the implementation of employee training. We offer all employees the option of joining our profit-sharing scheme.

INTERNATIONAL HUMAN RESOURCES OPERATIONS

Growth and globalization in the SMS group continued at a dynamic pace again last year. Today, a growing number of our employees work outside Germany. That creates challenges we tackle in a number of ways. For instance, we devise and implement uni-form human resources development programs and structures around the world, while still taking into account national and cultural differences.

All the HR managers in the SMS group are in regular contact with each other to discuss issues including recruitment, talent and performance management, and training.

150


This international cooperation requires that our em-ployees have a high degree of intercultural understand-ing, respect for each other, and mutual appreciation.

As part of our talent management pro-gram, and to compare assessments of the performance and potential of our managers, we regularly hold manage-ment conferences and supply 360-degree feedback.

Increasingly, we are using web-based training in combination with shorter on-site courses to train specialist staff.

EMPLOYER BRANDING

We have been working steadily for years to make the SMS group even better known and more attrac-tive as an employer. To reach school kids, university students, and qualified specialists, we also rely on our own employees as ambassadors who attract new apprentices and employees through personal recommendations and by talking about their work.

We are keen to enthuse young people, including kindergarten and school-age children, for technical subjects to ensure there are enough job applicants for our company in the future. Apart from direct contact with schools in the form of school cooperations and projects, we also use new communication methods via social media.

Examples are our Internet TV and YouTube posts that illustrate our activities and apprenticeships on offer.

Many employees with degrees stay in contact with their alma maters. They give talks, accompany lec-tures, or participate actively in various research projects at different institutes. To better support these employees, we have appointed so-called uni-versity ambassadors. They use the information ma-terial developed as part of our employer branding campaign to inform people in depth about not only technical aspects, but also recruitment and career opportunities in our group.

We also offer a whole raft of support measures comprising our own schol-arship program, dual-study courses, in-ternships in Germany and abroad, and assistance with BA and MA dissertations.

Once we have attracted university graduates in this way, they go through an introduction phase that sys-tematically prepares them for their new job as well as giving them the necessary process know-how. This introduction program runs over about one year. Mentors in the relevant specialist departments look after the young engineers.

We believe youngsters should be supported even before they start their working lives. That is why we make contact with potential applicants for ap-prenticeships or university courses at an early stage. Our introduction programs in the relevant specialist

151

departments help new colleagues understand their work and key processes.

Last year, we organized internships and works tours for school students to give them an insight into the world of work in the SMS group. More than 300 people visited our training workshop in Mönchengladbach on our Apprenticeship Day to learn about the options available. Twice in 2012, we carried out our Stahlhart project with a school we have been cooperating with for many years. This involved 34 school children spending two weeks in our engineering departments learning how our professionals work on 3-D drawings.

During the Company Night and Industry Night, a large number of students, graduates, and school-leavers took the opportunity to see our workshops in Aachen and Mönchengladbach. They received answers to all their questions about the machines, production processes, and daily working life in the company. The visitors not only saw ongoing production, but also practical work at a CAD workplace. Many of

them stopped off at a central trade show stand to find out about starting a career with us.

WORK-LIFE BALANCE

We support our employees in finding a good work-life balance. In 2012, we were awarded the “Beruf und Familie” certificate from the Federal Ministry of Family Affairs for our efforts in this area.

Included here are company pensions, company loans, flexible working hours, lifetime working hour accounts, sabbaticals, and professional childcare in our kindergartens. Last year, we added a day care center for children under the age of three.

To promote our employees’ health, we supported a large number of company sports groups as part of our “Healthy Company” campaign, and also launched cooperation with fitness studio chain “Kieser Train-ing” in 2012.

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Many of our employees regularly carry out voluntary or charity work in their free time, and we do all we can to encourage this. We received an award from the state of North-Rhine Westphalia for this in 2012. Now we have a new campaign – “Doing Good To-gether” – which gives employees financial support for social or charitable projects.

Last year, we organized Family Days at the SMS Siemag AG locations in Düsseldorf and Hilchen-bach. More than 12,000 employees with their family and friends were able to take a closer look at our company.

VOCATIONAL AND ON-THE-JOB TRAINING

We believe it is essential for our success in the future to attract qualified young recruits who will cover our needs for specialist personnel. The number of apprentices in 2012 was 561 (2011: 551). The apprenticeship quota in Germany is some 7%.

One reflection of the high quality of our vocational training is the good exam grades regularly attained by our apprentices. Once again in 2012, they were higher than the average recorded by the Chambers of Commerce. Some of our apprentices even won awards as the best in the state.

Just as in previous years, in 2012 our apprentices in Düsseldorf, Hilchenbach, and Mönchengladbach each produced a film and participated very successfully in the Federal Foreign Languages Competition. For instance, “Shot to Goal” by SMS Meer apprentices describes in English, Spanish, Russian, and Dutch the story of a Russian businesswoman who, with the support of SMS Meer, travels to Mönchengladbach to fulfill her dream of owning her own soccer stadium. The Düsseldorf apprentices of SMS Siemag entered the competition with a video entitled “Rusted Trust”. The film tells the story, in English and Spanish, of how an international rescue team rebuilds a town in steel together after an earthquake.

Competing among a total 115 submissions from the whole of Germany, our teams won two of the first prizes.

Because of the constant further devel-opment of technologies and methods as well as changing processes, on-the-job training is always crucial to keep our employees up to date.

Interested employees can regularly take part in inter-nal further training courses that last for three and a half years and lead to the qualification “state-exam-ined design engineer”. This is how we develop highly qualified specialists who are particularly important

153

for the design of our plants in the various Divisions. The course that started in March 2009 was success-fully concluded in October 2012.

SMS ACADEMY

The SMS Academy invites employees to voluntarily attend a broad-based educational program in their free time. It covers not only technical subjects, but also intercultural topics, personal development sem-inars, and sporting activities. In 2012, 3,464 partici-pants (2011: 3,636) attended a total of 268 events.

There is a growing interest in innovative learning with modern media – summed up as webucation. Included here are web-based training, podcasts, video clips, cyber-teachers, telephone training, and audio books. These methods enable our employees to learn under their own initiative, whenever and

wherever they want. Meanwhile, webucation has evolved into a firm feature of our company.

At the end of 2010, we launched our “WERT” program aimed at promoting structured knowledge transfer. The “Senior” component supports the transfer of expertise and experience from employees about to retire to their successors. The “Professional” com-ponent organizes know-how transfers, for instance to spread knowledge between several people, or to support changeovers of product responsibilities due to internal job changes or company-related decisions.

VALUABLE SUGGESTIONS

Our IMPULSE ideas management scheme came up with improvements that saved us EUR 1.31 million in 2012. Employees submitted 1,941 suggestions that led to prizes totaling EUR 393,000.

Dr. Heinrich Weiss (center), Chairman & CEO of the SMS group, congratulates (from left to right) Kurt Eckelsbach, Walter Nietsch, Heinz-Werner Strohmann, and Hans Dausel on their 50th anniversary with the company.

154

Annual Report 2012Financial statements 2012

BALANCE SHEET(IN EUR THOUSAND)

A S S E T S Dec. 31, 2012 Dec. 31, 2011

Intangible assets 588,261 400,315Property, plant, and equipment 609,767 367,228Shares in unconsolidated, affiliated companies 33,494 50,156Other equity investments 65,178 19,383Investment securities 48,384 229Deferred tax assets 111,717 118,859Other noncurrent assets 13,321 23,748

Noncurrent assets 1,470,122 979,918

Inventories 968,579 692,410Trade receivables 868,662 554,841Receivables from income taxes 45,427 20,848Other current assets 157,062 153,130Securities 850,211 766,290Cash and cash equivalents 1,278,991 1,804,996

Current assets 4,168,932 3,992,515

Total assets 5,639,054 4,972,433

CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2012

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L I A B I L I T I E S Dec. 31, 2012 Dec. 31, 2011

Shareholders’ equity 1,168,179 871,800

Noncurrent financial liabilities 13,143 11,287Accruals for pensions and similar obligations 515,705 474,075Deferred tax liabilities 355,204 336,321Other non-current accruals 36,835 33,880Other non-current liabilities 407 54

Non-current liabilities and accruals 921,294 855,617

Current financial liabilities 136,122 93,774Trade payables 411,946 331,085Liabilities from income taxes 79,986 133,450Advance payments received 1,211,247 1,075,954Other current accruals 1,429,479 1,347,916Other current liabilities 280,801 262,837

Current liabilities and accruals 3,549,581 3,245,016

Total liabilities 5,639,054 4,972,433

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Annual Report 2012Financial statements 2012

2012 2011

Revenue 3,237,394 3,069,722Cost of sales -2,418,723 -2,268,284Gross profit 818,671 801,438

Selling costs -286,915 -250,932General administrative costs -130,740 -126,888Other operating income 21,172 14,428Other operating expenses -180,467 -200,327Net investment income -1,315 -641Net interest income 17,788 28,110Pre-tax profit 258,194 265,188

Income taxes -100,572 -89,404Net profit for the year 157,622 175,784

Minority interests -597 -9,822Net profit for the year after minority interests 158,219 185,606

CONSOLIDATED INCOME STATEMENT(IN EUR THOUSAND)

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SUPERVISORY BOARD AND MANAGING BOARD SMS HOLDING GMBH

SUPERVISORY BOARD

DR. RER. POL. MANFRED BISCHOFF, Starnberg,Chairman of the Supervisory Board,Daimler Aktiengesellschaft, Chairman

DETLEF WETZEL, Kreuztal,Deputy Chairman of Metalworkers’ UnionFrankfurt, Vice Chairman

FRANK-GÜNTER BENNER, Hilchenbach,Executive Vice President of Hot and Cold Rolling Mills Division, SMS Siemag Aktiengesellschaft

EDWIN EICHLER, Düsseldorf,Management + Business Consulting (since 04.18.2013)

JOHANNES FRAUENDÖRFER, Frankfurt/Main,Managing Director, ratiolab GmbH

DR. DAGMAR HEMMERICH, Düsseldorf

HARALD HERMANNS, Niederkrüchten,Industrial Clerk,SMS Meer GmbH

PROF. DR.-ING. E. H. HANS-OLAF HENKEL, Berlin,Honorary Professor, Mannheim University

STEPHAN KLENZMANN, SiegenMaster of Industry,SMS Siemag Aktiengesellschaft

PROF. DR. RER. NAT. JÜRGEN KLUGE, Düsseldorf,Management Consultant, Kluge & Partner

PETRA LUX, Hilchenbach,Manager Procurement,SMS Siemag Aktiengesellschaft

DR. RER. POL. MARCUS SCHENCK, Düsseldorf,Member of the Board, E.ON AG (up to 04.18.2013)

MIKE SCHÜRG, Cologne,Office Head of the Deputy Chairman ofMetalworkers’ Union, Frankfurt

MANAGING BOARD

DR.-ING. E. H. HEINRICH WEISS, Meerbusch,Chairman & CEO

BURKHARD DAHMEN, Neuss

DR.-ING. JOACHIM SCHÖNBECK, Krefeld

ECKHARD SCHULTE, Hilchenbach

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Annual Report 2012Notes

ADDRESSES, PRODUCTS, AND SERVICES BUSINESS AREA SMS SIEMAG

SMS SIEMAG AG

Eduard-Schloemann-Strasse 440237 Düsseldorf, GermanyPhone: +49 211 881-0Fax: +49 211 881-4902

Wiesenstrasse 3057271 Hilchenbach-Dahlbruch, GermanyPhone: +49 2733 29-0Fax: +49 2733 29-2852

Walder Strasse 5340724 Hilden, GermanyPhone: +49 211 881-5100Fax: +49 211 881-5200

[email protected]

Machines, plants, and systems for producing and processing steel and nonferrous metals: submerged arc furnaces (SAF), basic oxygen steel-making plants (BOF, AOD), components and systems for dedusting electric furnaces and steel mills, electric steel furnaces (AC, DC), secondary metallurgy plants and processes, continuous slab casters, combined continuous casting and hot rolling mills for the production of flat products (CSP®), hot flat rolling and cold rolling mills, tandem trains coupled with pickling lines, finishing lines, powder coating lines, strip-processing and coating lines for steel and nonferrous metals (surface treat -ment and refining), drive systems, MORGOIL® bearings, electrical, automation, and control systems, hydraulic systems, oil lubricating and cooling systems, rolling oils and emulsions, water supply plants.

PAUL WURTH S.A

32, rue d’Alsace1122 Luxembourg, LuxembourgPhone: +352 4970-1Fax: +352 [email protected]

Complete solutions for pig iron production, coking plants, sinter plants, blast furnaces, direct reduction and recycling plants, energy and environment technology, engineering, service

DUMA-BANDZINK GMBH

Duisburg locationTheodor-Heuss-Strasse 9947167 Duisburg, GermanyPhone: +49 203 51904-0Fax: +49 203 51904-50

Langenfeld locationIndustriestrasse 5940764 Langenfeld, GermanyPhone: +49 2173 10908-0Fax: +49 2173 10908-88

[email protected]

Equipment and service for componentsin strip galvanizing linesCoating plants

EPI INDUSTRIEANLAGEN-PLANUNG GMBH

Schultenstrasse 2745739 Oer-Erkenschwick, GermanyPhone: +49 2368 9869-0Fax: +49 2368 [email protected]

Pipeline, machine, and steel construction

FONTAINE ENGINEERING UND MASCHINEN GMBH

Industriestrasse 2840764 Langenfeld, GermanyPhone: +49 2173 2700-31Fax: +49 2173 [email protected]

Technology and equipment for galvanizing metal strip

LUX AUTOMATION GMBH

Heerstrasse 2345478 Mülheim a. d. Ruhr, GermanyPhone: +49 208 58980-0Fax: +49 208 [email protected]

Automation solutions for the steel industry

SMS LOGISTIKSYSTEME GMBH

Obere Industriestrasse 857250 Netphen, GermanyPhone: +49 2738 21-0Fax: +49 2738 21-2222www.sms-logistiksysteme.com

Transport and handling technology, warehouse technology, packing technology, grinding machines

SMS MEVAC GMBH

Bamler Strasse 3 a45141 Essen, GermanyPhone: +49 201 6323-0Fax: +49 201 [email protected]

Secondary metallurgy: RH recirculation degassing plants, tank degassing plants, VOD plants, ladle heaters (chemical), ladle treatment stands, pig iron desulfurizing plants, steelworks components; tertiary metallurgy

160


SMS SIEMAG PROCESSTECHNOLOGIES GMBH

Daffingerstrasse 41030 Vienna, AustriaPhone: +43 1 6985738-0Fax: +43 1 [email protected]

Push-pickling lines, acid regeneration plants, process engineering automation for strip processing lines

SMS ELEX AG

Eschenstrasse 68603 Schwerzenbach, SwitzerlandPhone: +41 44 80616-40Fax: +41 44 [email protected]

Environment/filter technology for steel production

DREVER INTERNATIONAL S.A.

Parc Scientifique du Sart-TilmanAllée de Noisetiers 154031 Liège, BelgiumPhone: +32 4 36 66 262Fax: +32 4 36 77 [email protected]

Equipment for strip refining, continuous annealing lines, stainless steel annealing lines, annealing and pickling lines, continuous galvanizing lines

SMS INNSE S.P.A.

Via Milano, 420097 San Donato Milanese (MI), ItalyPhone: +39 02 2124-1Fax: +39 02 [email protected]

The entire range of metallurgical plant and rolling mill technology without long-product rolling mills

PARKEGATE LTD.

10 Winchester PlaceNorth Street, PooleDorset, BH15 1NX, Great BritainPhone: +44 1202 675533Fax: +44 1202 [email protected]

Rolling mills, strip processing lines

SIDERNAVAL EQUIPOSSIDERÚRGICOS S.A.

Apartado Postal 559Henao, 7–1°48009 Bilbao, SpainPhone: +34 94 423-9000Fax: +34 94 [email protected]

The entire range of metallurgical plants and rolling mill technology

SMS SieMag LLc

100 Sandusky StreetPittsburgh, PA 15212-5852, USAPhone: +1 412 231-1200Fax: +1 412 [email protected]


SMS MiLLcraft LLc

100 Sandusky StreetPittsburgh, PA 15212-5852, USAPhone: +1 412 231-1200Fax: +1 412 231-3995www. sms-millcraft.us

Service for steelworks, casters, rolling mills

HycoMp LLc

17960 Englewood DriveCleveland, OH 44130-3438, USAPhone: +1 440 234-2002Fax: +1 440 [email protected]

Self-lubricating materials, bearings, and wearing plates for use in rolling mills

SMS SieMag eQUipaMeNtoS e SerViÇoS LtDa.

Avenida 2, 230Distrito Industrial Parque Norte33.200-000 VespasianoMinas Gerais, BrazilPhone: +55 31 2125-1160Fax: +55 31 [email protected]

The entire range of metallurgical plants and rolling mill technologyService and spare parts

SMS iNDia pVt. LtD.

286, Udyog Vihar, Phase IIGurgaon 122 016, Haryana, IndiaPhone: +91 124 435 1500Fax: +91 124 435 [email protected]


areS iNDUStriaL fUrNace (tiaNjiN) co., LtD.

K1-5-301 Hi-Tech Green Industrial BaseNo. 6 of Rd. 6th, Hi-Tech DevelopmentHuayuan Industrial Park, Tianjin 300384, ChinaPhone: +86 22-23783878Fax: +86 [email protected]

Thermal process technology

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SMS SIEMAG TECHNOLOGY(BEIJING) CO., LTD.

18th Floor, Juanshitiandi Tower AJia No. 50-1, Wangjing XiluChaoyang DistrictBeijing 100102, ChinaPhone: +86 10 5907 7100Fax: +86 10 5907 [email protected]


SMS SIEMAG METALLURGICALEQUIPMENT (SHANGHAI) CO., LTD.

Shanghai Chemical Industrial ZoneFengxian Sub Zone1388 Canggong Road, FengxianShanghai 201424, ChinaPhone: +86 21 37504020Fax: +86 21 57448310

Service, repairs, and assembly

SMS SIEMAG STRIP PROCESSING LINES SHANGHAI LTD.

Floor 1-4, B 21No. 500, Jiang Wan West RoadHongkou DistrictShanghai 200083, ChinaPhone: +86 21 5666 00 10Fax: +86 21 5666 18 82

Strip processing lines

SMS SIEMAG SOUTH AFRICA(PTY) LTD.

4 Carse O’Gowrie StreetBuilding BSunnyside Office ParkParktown 2193, South AfricaPhone: +27 11 480-1800Fax: +27 11 [email protected]


METIX (PTY) LTD.

Head Office, Block A, 1st Floor204 Rivonia RoadMorningside, Sandton, GautengSouth AfricaPhone: +27 11676 2300Fax: +27 11676 [email protected]

Reduction metallurgy

163

SMS MEER GMBH

Ohlerkirchweg 6641069 Mönchengladbach, GermanyPhone: +49 2161 350-0Fax: +49 2161 [email protected]

Seamless tube plantsTube welding plantsFinishing lines and machinesMilling and sawing machines for aluminumLong and semi-finished product millsWire millsHydraulic pressesExtrusion pressesClosed-die forgesService

Nerscheider Weg 17052076 Aachen, GermanyPhone: +49 2161 350-0Fax: +49 2161 [email protected]

Bright steel millsCopper plants

Stockumer Strasse 2858453 Witten, GermanyPhone: +49 2302 7098-3370Fax: +49 2302 [email protected]

Ring and wheel rolling mills

SMS ELOTHERM GMBH

In der Fleute 242897 Remscheid, GermanyPhone: +49 2191 891-0Fax: +49 2191 [email protected]

Induction technologyHardening plantsTempering plants

PWS GMBH

Zuppinger Strasse 588213 Ravensburg, GermanyPhone: +49 751 29596-0Fax: +49 751 29596-1010info@ pws-gmbh.infowww.pws-gmbh.info

Spiral tube plantsPowder welding plants

HERTWICH ENGINEERING GMBH

Weinbergerstrasse 65280 Braunau, AustriaPhone: +43 7722 806-0Fax: +43 7722 [email protected]

Aluminum plants

ADDRESSES, PRODUCTS, AND SERVICES BUSINESS AREA SMS MEER

164


SMS CONCAST AG

Toedistrasse 98027 Zurich, SwitzerlandPhone: +41 1 204-6511Fax: +41 1 [email protected]

Electric-arc furnacesSecondary metallurgyContinuous casting technology

SMS MEER S.P.A.

Via Udine, 10333017 Tarcento (Udine), ItalyPhone: +39 0432 799111Fax: +39 0432 [email protected]

Light-section rolling millsReheating furnaces

MRB LTD.

Henson CloseSouth Church Enterprise ParkBishop AucklandDurham DL146WA, Great BritainPhone: +44 1388 7713-00Fax: +44 1388 [email protected]

SMS MEER (UK) LTD.

Units 40-41, The Bridge Business CentreBeresford Way, Dunston RoadChesterfield S41 9 FG, Great BritainPhone: +44 1246 266 250Fax: +44 1246 266 255

SMS MEER SERVICE LLC.

196158, Sankt Petersburg40/4 Pulkovskoye shosse, letter A, off A8030RussiaPhone: +7 812 318 0151Fax: +7 812 318 [email protected]

SMS MEER INC.

210 West Kensinger DriveCranberry Township, PA 16066-3435, USAPhone: +1 724 553 3420Fax: +1 724 741 [email protected]

234 S. Potter StreetBellefonte, PA 16823-1387, USAPhone: +1 814 355 4774Fax: +1 814 353 [email protected]

330 SW CutoffWorcester, MA 01604-2730, USAPhone: +1 724 533 3919Fax: +1 508 755 [email protected]

SMS MEER INDIA PVT. LTD.

RDB Boulevard, 4th Floor, Unit-DPlot No. K1, Block EP & GPKolkata – 700 091, IndiaPhone: +91 336622-1500Fax: +91 [email protected]

SMS GULF FZE

Dubai Airport Free ZoneBuilding 4E, Block A, Office G16P.O. Box 54795, Dubai, U.A.E.Phone: +971 4-204-5010Fax: +971 [email protected]

SMS SAUDI ARABIA LLC.

Taba Center, 1st Floor Suite APrince Sultan RoadP.O. Box 4822, Al Khobar 31952Kingdom of Saudi ArabiaPhone: +966 3 887 58 30Fax: +966 3 887 58 [email protected]

SMS MEER MIDDLE EAST S.P.C.

Trust TowerP.O. Box 2215, ManamaKingdom of BahrainPhone: +973 16500 757Fax: +973 16500 [email protected]

SMS MEER METALURGIA DO BRASIL LTDA.

Alameda Rio Negro1030, Conj. 80306454-00 Barueri, BrazilPhone: +55 11419-18-181Fax: +55 [email protected]

SMS MEER ENGINEERING (CHINA) LTD.

No. 2200, Lianhua South RoadMinhang DistrictShanghai 201108, ChinaPhone: +86 221 2408 6500Fax: +86 221 2408 [email protected]

Sales Office

Room 806, 8th Floor, Juanshitiandi Tower AJia No. 50, WangjingxiluChaoyang DistrictBeijing 100102, ChinaPhone: +86 10 5907 7700Fax: +86 10 5907 [email protected]

SMS MEER K.K.

Sapia Tower 25F1-7-12 MarunouchiTokyo 100-0005, JapanPhone: +81 3 5293 0201Fax: +81 3 5293 [email protected]

166


ELEXIS AG/EMG AUTOMATION GMBH

Industriestrasse 157482 Wenden, GermanyPhone: +49 2762 612-0Fax: +49 2762 [email protected]

EMG WERK ELTMA

Am Pfefferbach 2039387 Oschersleben, GermanyPhone: +49 3949 928-500Fax: +49 3949 [email protected]

Strip guiding and quality assurance systems for metals

BST INTERNATIONAL GMBH

Heidsieker Heide 5333507 Bielefeld, GermanyPhone: +49 5206 999-0Fax: +49 5206 [email protected]

Web guiding and quality assurance systems for real printing

HEKUMA GMBH

Freisinger Strasse 3 b85386 Eching, GermanyPhone: +49 8165 633-0Fax: +49 8165 [email protected]

Handling systems for injection molding machines

ADDRESSES, PRODUCTS, AND SERVICES INDUSTRIAL PARTICIPATIONS

167

MANAGING BOARDS

BUSINESS AREA SMS SIEMAG

SMS SIEMAG AG, GERMANY

MANAGING BOARD

Burkhard Dahmen, President & CEODr.-Ing. Guido KleinschmidtHarald Rackel (since 04.16.2013)Dieter RosenthalEckhard SchulteMarc Solvi (since 01.01.2013)Rüdiger Zerbe (up to 04.16.2013)

HEADS OF DIVISIONS

Metallurgy:Dr.-Ing. Thomas GermershausenMichael Rzepczyk

Continuous Casters:Dr.-Ing. Erich HovestädtChristian Geerkens

Hot Rolling Mills:Frank-Günter BennerStephan Krämer

Cold Rolling Mills:Heinz NiehuesRüdiger Holz

Aluminum:Heinz NiehuesMichael Schäfer

Strip Processing Lines:Dr.-Ing. Hans-Georg HartungDr.-Ing. Holger Behrens

Thermal Process Technology:Dr.-Ing. Fritz Brühl

Electrics and Automation:Detlef EhlertReiner Külchen

Service:Doug A. DunworthViola FrenyoPino Tesè

PAUL WURTH S. A., LUXEMBURGMarc Solvi, Chief Executive OfficerDr.-Ing. Thomas Hansmann, Chief Technology OfficerGeorges Rassel, Chief Operations OfficerFrank Wagener, Chief Administrative andFinancial Officer

DUMA-BANDZINK GMBH GERMANYOliver Abel, Managing DirectorDaniel Plätzer, Managing Director

EPI INDUSTRIEANLAGENPLANUNG GMBH,GERMANYVolker Behm, Managing Director


168

Fontaine engineering undMaschinen gMbh, gerManyPascal Fontaine, Managing director

LuX autoMation gMbh, gerManyhelmut hölscher, Managing director

sMs Mevac gMbh, gerManyMichael thiehofe, Managing director

sMs LogistiKsysteMe gMbh, gerManybernd Klein, Managing director

sMs sieMag Process technoLogies gMbh,austriaherbert Weissenbaeck, Managing directorhorst Krenn, Managing director

sMs eLeX ag, sWitzerLandJan adams, Managing director

drever internationaL s.a., beLgiuMJean Marc raick, Managing directorrobert gruss, Managing director

sMs innse s.P.a., itaLyalberto bregante, ceo

ParKegate Ltd., great britainneil Winkley, Managing director

sidernavaL equiPos siderúrgicos s.a., sPainF. Javier reyes, Managing director

maNagiNg boards

sMs sieMag LLc, usaJoseph t. dzierzawski, President & ceo

sMs MiLLcraFt LLc, usadoug a. dunworth, President & ceo

hycoMP LLc, usarobert scoular, President & ceo

sMs sieMag equiPaMentos e serviÇos Ltda.,braziLMarcellus Piedade silva, general ManagerFrancisco ely Morganti, general Manager

sMs india Pvt. Ltd, indiaMarcel Fasswald, Managing director

ares industriaL Furnace (tianJin) co. Ltd.,chinasu he, general Manager

sMs sieMag technoLogy (beiJing) co. Ltd.,chinastefan Leser, President

sMs sieMag south aFrica (Pty) Ltd., south aFricaPieter bezuidenhout, Managing director

MetiX (Pty) Ltd, south aFricareinier Meyjes, Managing director

169

BUSINESS AREA SMS MEER

SMS MEER GMBH, GERMANY

MANAGING BOARD

Dr.-Ing. Joachim Schönbeck, ChairmanJens BarthTorsten HeisingNorbert Theelen

HEADS OF PRODUCT UNITS

Tube & Pipe PlantsNorbert Theelen (techn. Head of Division)Frank Lüth (comm. Head of Division)

Long Products Plants:Marco Asquini (techn. Head of Division)Robert Bignulini (comm. Head of Division)Ulrich Svejkovsky (sales Head of Division)

Forging Plants:Ulrich Vohskämper (techn. Head of Division)Ralph-Andreas Surma (comm. Head of Division)Martin Kunz (Vice Head of Division)

Service:Johannes Kahlen (techn. Head of Division)Friedhelm Bitter (comm. Head of Division)

Head of Product Unit Schumag & Kupfer:Uwe RepschlägerAndré Rahmen

SMS CONCAST AG, SWITZERLANDLuis Hernandez, President & CEOPhilipp Kannengießer, CFO

SMS ELOTHERM GMBH, GERMANYDr.-Ing. Andreas Seitzer, Managing DirectorMartin Schulteis, Managing Director

HERTWICH ENGINEERING GMBH, AUSTRIAFranz Niedermair, Managing Director

SMS MEER S.P.A., ITALYMarco Asquini, PresidentMarco Fattori, Managing Director

SMS MEER ENGINEERING (CHINA) LTD.,Zuo-Guo Xiao, CEO

SMS MEER K.K, JAPANYuzo Oishi, Managing Director

PWS GMBH, GERMANYRoland Arnold, Managing DirectorMichael Stark, Managing Director

170


INDUSTRIAL PARTICIPATIONS

ELEXIS AG, GERMANY

MANAGING BOARD

Siegfried Koepp, President & CEOEdgar M. Schäfer

EMG AUTOMATION GMBH, GERMANYSiegfried Koepp, President & CEOEdgar M. Schäfer, Managing Director

BST INTERNATIONAL GMBH, GERMANYPercy T. Dengler, Managing Director

HEKUMA GMBH, GERMANYBernhard Rupke, Managing Director

SMS

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Annual Report 2012

SMS groupCorporate Communications

Eduard-Schloemann-Straße 4 • 40237 Düsseldorf • GermanyPhone +49 211 881-4127 • Fax +49 211 881-4386

[email protected]

Internet: www.sms-group.com

annual report 2012 - sms-siemag.com · sms group annual report 2012 the pre-tax result of the sms...

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