Development & Production Strategies of SAIL Steel Plants in 12th Plan Period

S.S.Mohanty Director(Technical) SAIL

Steel Outlook
Steel consumption in India is projected to reach 113 MT by 2016-17 as against 70.9 Mt in 2011-12, at a CAGR of 9.7%. ( As per 12th 5-year plan) Crude steel capacity to reach 149 MT against current capacity of 89 MT. Major Capacity additions to come from Integrated steel producers. Steel producer attempting to reduce production cost by opting for alternative steel making technologies. (eg. DRI, Itmk3 and COREX) Producers are targeting high growth segments (Auto, Construction, Ship building etc.)

SAIL-an Overview
SAIL has achieved a turnover of more than Rs. 50,000 Crores from a level of Rs 15000 Crs in 2001-02. SAIL has steadily shown growth in production since 10th and 11th five year plans. SAIL has been enriching its product mix by increasing the Finished steel component and decreased Semis in the overall product Mix over the years. SAIL finished Mild Steel market share in 2011-12 is at 14.9% out of total Indian steel market of 66.4MT. SAIL share shall increase to 15.6% in 2016-17 after implementation of expansion program.

SAIL Production build up (last 10 years)

14 12 10 8 6 4 2 0 10.6 11.3 11.3 12.1 12.6 13.0 12.5 12.6 12.9 12.4 MT

SAIL Performance- 5 Year Plans

90 80 70 60 50 40 30 20 10 0 2002-07 (10th) 2007-12 (11th) 2012-17 (12th- P) 57.9 9.7% Gr 63.5 82.0 29 % Gr
MT

SAIL - Growth Strategy

SAIL has planned to adopt technologies, which: Have synergy with the natural resource endowments of the company. Are conducive to production of high-end and special steel required for sophisticated industrial and scientific applications. Minimize damage to the environment at various stages of steel making and mining. Optimize resource utilization. Facilitate modernization of the steel industry so as to achieve global standards of productivity and efficiency. To undertake Research & Development activities aimed at introducing new technologies and setting up Center of Excellence. Sustainable Development

SAIL- ongoing Modernization Plan

To retain its leadership in the growing market, a growth strategy for expansion and Modernization of SAIL ISPs was formulated in 2005. The Expansion is targeted at increasing cost competitiveness of the Company by installing state-of-the-art equipment productivity and improved yields. The plan also focuses on installing energy efficient and environment friendly facilities. The facilities are likely to be commissioned during the 12th 5-year plan period. with higher

Modernisation & Expansion Plans

Capacity buildbuild-up :
(Million tonnes)

Particulars Hot metal Crude Steel Saleable Steel

Installed Capacity 13.82 12.84 11.07

After Current Phase 23.46 21.40 20.23

SAILs Expansion Plan

Unit: MT

25 0.89 20 15 10 5 0 Present After current brown field expansion 0.34 0.5 4.36 2.2 1.9 1.8 7 3.93 2.5 Spl Steel Plants 4.6 ISP 4.2 BSL RSP DSP BSP

Increase in Hot Metal and Crude Steel capacity is higher than expanded capacity as it also incorporates the loss due to phasing out of certain facilities

12000

Capital Expenditure Capital Expenditure in SAIL

10606

11280

11021

10000

11th Plan (2007-12) Rs 40322 cr

8000

Expenditure planned during XII 5 yr plan : Rs. 45000 Crs

6000
5233

4000
9th Plan (1997-2002) Rs 4,870 cr
2071

2000
1246 777 426 350 200102 350 224 200203 224

10th Plan (2002-07) Rs 3179 cr

1150 819 454 200304 454 532 200405 532 200506 819 200607 1150

2181

0
Rs. Crore

199798 2071

199899 1246

199900 777

200001 426

200708 2181

200809 5233

200910 10606

201011 11280

201112 11021

Modernisation & Expansion Plan

Objectives
Modernisation & Expansion Plan of SAIL, besides capacity enhancement, addresses the need of Plants towards towards: :

Eliminating technological obsolescence State State-ofof-the the-art technology for:

o o o o

Energy savings (Like Basic Oxygen Furnace, Continuous Casting) Finishing Capacities Enriching product mix Environment control norms

Developing mechanised mines & collieries to meet requirement of key

inputs Have matching infrastructure facilities in the Plant to support higher production volumes.

Apart from these, schemes related to the existing assets of the plants such as technological upgradation, value addition and sustenance also envisaged. envisaged .
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Modernisation & Expansion: Benefits envisaged

Reduction in semis and to focus on value added finished products To improve efficiency, up gradation of the existing equipment/ technology is also integrated into SAILs expansion programme. programme. New state of the art facilities for current & future expansion Continuous casting technology viz viz. . Round cum bloom caster, Beam blank caster . Adoption of 100% 100% continuous casting route Coke dry quenching facilities in Coke ovens Large Blast Furnaces and up up-gradation of existing Blast Furnaces Furnaces. . Top pressure recovery turbine, Coal Dust Injection, pellet charging in Blast Furnaces Increase in cold rolled capacity with higher value added products
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Use of modern & energy efficient technologies

100% 100% desulphurization and addition of degassing units for cleaner steel steel. . Extensive use of ERP ERP; ; MES; MES; LevelLevel-3 automation Development of new iron ore mines with beneficiation facilities Beneficiation of iron ores to be introduced in Chiria/ Chiria/Rowghat/ Rowghat/Gua Reduction of alumina and silica; silica; Improvement of Iron ore Fe content content; ; Reduction of slime loss Phasing out of small capacity inefficient Blast Furnaces Phasing out of OHF/THF Ingot casting route at BSP,ISP Phasing out of primary mills (Blooming/Slabbing (Blooming/Slabbing Mill)

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Expansion Plan : Technological Shift

Technology
BOF Steel making CC Route Pelletisation Plant Coke Dry Quenching Top Pressure Recovery Turbine Auxiliary Fuel Injection in BF Desulphurisation of Hot Metal
Continuous Annealing and Pickling line

Current Status
78% 62% No No No Partial coverage Partly
No

After Expansion
100% ~100% Yes Yes Yes Full coverage 100%
Yes

Expansion Plan : Technology Shift

PRESENT 2% 20% POST EXPANSION 3 0%

78%

97%
EAF BOF THF EAF

BOF

THF

6% 30%

70% 94%
Ingot CC Ingot CC

Expansion Plan : Product profile

PRESENT POST EXPANSION

38% 62% 59%

41%

Commodity

Value added steel

Commodity

Value added steel

21% 47% 55% 23%

12%

41%

Semi Finished

Long Products

Flat Prodcuts

Semi Finished

Long Products

Flat Prodcuts

Product profile
GP/GC, 2% CR C/S, 6% PET, 2% Strls, 4%

Present Product Profile

Wire Rod, 16% Rly Prdts, 10%

Plates, 26% HR Coils, 34% CR C/S, 12% HR Coils, 18% GP/GC, 4% PET, 1% Strls, 16%

Wire Rod, 22%

Post Expansion Product Profile

Plates, Wire Rods and Strls share in SAIL product mix 18%

Rly Prdts, 9%

will improve

Enhanced Product Mix

Universal Sections (H Beams up to 700 mm) at ISP Wide Width Plates (up to 4300 mm) at RSP Improved quality CR products at BSL Thinner gauge HR Coils (0.8 mm to 1.2 mm) at BSL API X 70 / 80 / 100 steel for line pipes at RSP / BSL Head Hardened Rails (for Metro) & Special Heavy Rails (for high speed tracks) at BSP

Commissioning Schedule
Plant SSP ISP BSP RSP BSL DSP Commissioning (Current Phase) Sep10 (completed) Major facilities progressively by Mar13 Sep13 Mar13 Oct12 (New CRM) Mar13

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Research & Development

To enable SAIL to achieve its operation & business goals SAIL has embarked upon implementing a R&D Master Plan . The objective is: To gain competitive advantage by - Improving efficiencies - Reducing costs - Meeting market demands To upgrade current steel technologies. To develop technologies and new products in collaboration with key customers. To increase R&D expenditure gradually to international benchmark level ( 1% of turnover).

Research & Development

Implementation through : Technology Missions - Corporate Level High Impact Projects Centres of Excellence (COEs) at plant level to focus on various product development and improvements in collaboration with key customers and technology suppliers.

Research & Development

Aims to acquire radically new technologies, the plan specifically targets Production of Cold Rolled Grain Oriented (CRGO) electrical steels Development of alternative iron making technologies, Endless strip production, Carbon dioxide reduction and sequestration, and Optimising land use by designing compact steel plants .

Input Management
Strategies Iron ore: Use of pellets and micro fines in sintering to increase. Slime Beneficiation Use higher quantities of beneficiated iron ore Alternative technologies like ITMK3, Hismelt,

Coking Coal: Reducing dependence on coking coal through following: Increasing auxiliary fuel consumption (primarily CDI) and nut coke to the extent possible. Use of higher content of semi coking and non-coking coal in the coke oven blend through use of technologies like Stamp charged batteries at BSL etc. Introduction of alternate iron making technologies which can use non coking coal and iron ore fines.

THANK YOU

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Plant wise Plans

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Modernisation & Expansion Plan : SSP

Production (Mtpa)
Item Crude Steel Saleable Steel Installed Capacity 0.18 After Current Phase 0.18 0.34

Major Facilities
New Steel Melting Shop (180,000 tpa) tpa) New Cold Rolling Mill Complex (146,000 tpa) tpa) Up Up-gradation of Existing Cold Rolling Mill Roll grinder for Hot Rolling Mill

Status: Status :
Under regular operation since Sep Sep10 10. .
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Modernisation & Expansion Plan : RSP

Production (Mtpa)
Item Hot Metal Crude Steel Saleable Steel Major Facilities 7m tall Coke Oven Battery Sinter Plant (1x360 m2) Blast Furnace (4060 m3) 3rd Basic Oxygen Furnace, Ladle Furnace, RHRH-OB Single strand slab caster New plate mill 4.3m (1.0 mt mt) )
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Installed Capacity 2.0 1.9 1.67

After Current Phase 4.5 4.2 3.99

Modernisation & Expansion Plan : BSL

Production (Mtpa)
Item Hot Metal Crude Steel Saleable Steel Installed Capacity 4.585 4.36 3.78 After Current Phase 5.77 4.61 4.18

Major Facilities
New Cold Rolling Mill Complex (1.2 mt mt) ) Modernisation & Upgradation of existing SMS SMS-II Rebuilding of COBCOB-1 & 2 with Pollution Control measures Up Up-gradation of Blast Furnace No.2 Augmentation of infrastructure facilities
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Modernisation & Expansion Plan : BSP

Production (Mtpa)
Item Hot Metal Crude Steel Saleable Steel Installed Capacity 4.08 3.93 3.15 After Current Phase 7.5 7.0 6.56

Major Facilities
Coke Oven BatteryBattery-11 (7 m tall) 2nd Sinter M/c in SPSP-3 (360 m2) Blast Furnace (4060 m3) Steel Melting Shop III (4.0 mt mt) ) with secondary refining units 1 x 4 Strand Billet Cum Bloom Caster 2 x 6 Strand Billet Caster 1 x 3 Strand Beam Blank Caster Bar & Rod Mill (0.9 mt mt) ) Universal Rail Mill (1.2 mt mt) )

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Modernisation & Expansion Plan : DSP

Production (Mtpa)
Item Hot Metal Crude Steel Saleable Steel Installed Capacity 2.09 1.80 1.59 After Current Phase 2.45 2.2 2.12

Major Facilities
Bloom-cum round caster (0.75 mt Bloommt) ) Medium Structural Mill (1.0 mt mt) ) Rebuilding of Coke Oven BatteryBattery-2 Ladle furnace RMHS & Coal handling facilities Revamping of By Product Plant Dolomite plant New slag yard

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Modernisation & Expansion Plan : ISP

Production (Mtpa Mtpa) )
Item Hot Metal Crude Steel Saleable Steel From Existing Plant 0.21 0.43 New Plant 2.70 2.50 1.96 Total 2.91 2.50 2.39

Major Facilities
Coke Oven Battery (0.78 Mt) Sinter Plant (3.8 Mt) Blast Furnace (4060 m3) (2.7 Mt) Basic Oxygen Furnace (BOF) Shop (2.56 Mt) Billet Caster (1.67 Mt) & Beam Blank/Bloom Caster (0.8 Mt) Heavy Section Mill (0.6 Mt) Wire Rod & Bar Mill (1.25 Mt)
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