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Outokumpu Site Visit Tornio Presentation
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Outokumpu Tornio Site Martti Sassi SVP – Tornio Steel Operations September 11, 2013
1. Safety Before Volume
Safety takes priority over all other activities, including production.
2. Safety Starts with Me
We are all responsible for our own safety and caring for the safety of our colleagues.
3. No Shortcuts
We will follow procedures and evaluate risks before we act.
4. No Repeats
We will investigate all incidents and take actions to prevent re-occurrence, anywhere.
SAFETY FIRST – For Every One, Every Time, Everywhere
9/12/2013 2
0
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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
1/1000 000
Own personnel
Approaching our target – zero accidents
The most integrated stainless steel plant in the world
9/12/2013 4
BA EMEA at a glance
• Business area EMEA produces high-volume
and tailored stainless steel grades
• Extensive sales network with 13 service
centers, 11 sales offices, 5 sales agents
across the EMEA region
• Highly cost competitive Tornio stainless steel
mill with integrated ferrochrome production
and own chromite mine in Kemi
• Highly end customer orientated austenitic
and ferritic production in Germany, Europe’s
largest market
5/22/2013 5
Benrath
Dillenburg
Tornio
Kemi
Terneuzen Bochum Krefeld
Dahlerbrück
As of May 2013
• Ferrochrome production onsite with molten Ferrochrome charged directly
• No need to crush or reheat, saving energy and minimizing transportation costs
• Ability to use carbon monoxide from own processing to replace propane as energy source saves costs and CO2
emissions
• Short processing time and lower logistic costs
• Cost savings from full downstream integration into finished products
Most integrated stainless steel mill
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Cold Rolling Mill
Finishing Plant Other Steel Mills
Ferrochrome
Slabs
Black Hot Coils
White Hot Products
End-users and Distributors
FeCr Production Stainless Production
Cold Rolled Products
Tube Mills
Raw Materials
Ferrochrome Works
Kemi Mine
Hot Rolling Mill
Steel Melting Shop
5/22/2013
• Tornio is the most integrated stainless
steel plant in the world
• Highly efficient through large economies of
scale
• Own chrome ore – safe supply and stable
ferrochrome quality
• State-of-the-art technology (RAP line
producing new 2E semi CR products)
Tornio works: Highly competitive cost position
7
Focus on:
• Austenitic and ferritic hot and cold rolled stainless steel
• High quality volume products using best available technology
• Custom-made mass production in selected product areas
1,600
2,000
2,200
1,800
2,600
2,400
1,400
Plant B Plant D Plant C Plant A
2,243
Outokumpu
Tornio
Peer average = 2,320 EUR/t 3)
Lowest CR304 unit production costs among largest European plants 1,2)
1) Source: SMR as of January 2012, 2) Based on Ni: 20.000$/t; January 2012 average exchange rate 0.7792702 $/€, 3) Excluding Outokumpu Tornio
5/22/2013
• Unique low cost position as Europe’s only
ferrochrome producer with access to the
only known chromite reserves in the EU
• Mineral resources to last for roughly
40 years
• Q4 2012: finalization of EUR 410 million
investment program to double ferrochrome
production capacity to 530,000 tonnes
• Q1 2013: progress slightly ahead of
schedule and ferrochrome production of
97,000 tonnes was reached
Ferrochrome – competitive advantage
8
Company expects to reach a ferrochrome production
level of approximately 400,000 in 2013 and the full
capacity of 530,000 tonnes in 2015
Outokumpu ferrochrome production
(1,000 tonnes)
Ore reserves: 33 million tonnes and additional
mineral resources of 105 million tonnes
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400
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2011 2012 2013e 2014e 2015e
5/22/2013
Our products create endless possibilities for our customers
9/12/2013 9
Our products
9/12/2013 10
• Black coils
• Thickness range 2.5–12 mm, width range 1000–1600 mm.
• White hot rolled coils, strips, sheets and plates
• Finishes 1/1D, 2E. Thickness range 2.5–8 mm (1/1D), 1.8–4
mm (2E), width max. 1600 mm.
• Cold rolled coils, strips, sheets and plates
• Finishes 2B, 2D, 3N, 4N, DB. Thickness range 0.4–6.35 mm,
width range 35–1600 mm.
• Ferrochrome product offering
• 10–40 mm, 10–80 mm (Cr content 52–54%)
• 0–10 mm fines (Cr content 50– 52%)
• Slag products
• OKTO-eriste (FeCr slag granules), OKTO-murske (FeCr slag
aggregates), OKTOa-murske (Stainless steel slag aggregates),
OKTO-kevytkivi (Stainless steel slag light mineral aggregates)
and OKTO-filleri (Stainless steel slag filler products).
9/12/2013 11
From chrome ore to coil and plate…
…to cutlery and bridges –endless possibilities
9/12/2013 Presentation title, Speaker name – Confidential information 12
Committed to sustainable business
9/12/2013 Presentation title, Speaker name – Confidential information 13
One of the world's most significant recyclers
Recycled & recovered metals 0,2 Mt
MATERIALS OUT
White hot rolled products 0,2 Mt
Cold rolled products 0,6 Mt
Mineral products 0,2 Mt
Waste landfilled and utilized 0,1 Mt
MATERIALS IN
Recycled carbon steel 0,2 Mt
Recycled stainless steel 0,7 Mt
FeCr-, Ni-, Mo-,Ti-,Si-, 0,2 Mt
Mn-alloys
Stainless production, year 2011
Reducing emissions while increasing production
9/12/2013 Presentation title, Speaker name – Confidential information 15
Kemi Mine and Tornio Site – production chain
9/12/2013 16
From chrome ore to stainless steel
9/12/2013 17
Kemi Mine
Underground mine Hoisting Crushing Spiral concentration
Heavy medium
separation
Grinding
Ferrochrome Works
Sintering FeCr
Smelter
Crushing
and screening
Storage
Steel Melting Shop
Liquid ferrochrome Ferrochrome converter
AOD converter
Electric arc furnace Recycled steel
Continuous casting machine
Hot Rolling Mill
Walking beam furnace Roughing mill Steckel mill and Tandem mill Bell furnaces
Cold Rolling Plant
Annealing and pickling line Sendzimir mills Annealing and pickling line Polishing line Slitting and cut-to-lenght lines Coils and sheets
RAP Line
Contious rolling-annealing-pickling line
Logistics
Coils and sheets Transportation Customers
Terneuzen
Slitting and
cut-to-lenght lines
Coils and sheets Customers
• Concentrates from Kemi Mine are refined to FeCr at Ferrochrome Works
• Ferrochrome Works consists of a sintering plant, two smelting furnaces and product handling
• The final product is ferrochrome in different grain sizes. Ferrochrome Works also produces slag products for use as a construction material.
• In 2013 the third smelting furnace has doubled ferrochrome production to 530 000 tpa
• With the third furnace in use, Ferrochrome Works will supply raw material for the whole Outokumpu Group
• The balance will be sold globally
Ferrochrome Works – safe supply and stable quality
9/12/2013 18
FeCr sintering and smelting process BAT-technology
March 2012 Tornio site and Kemi Mine 19
Grinding
Filtering
Pelletising
Sintering
Gas cleaning
Smelting
Preheating
• At Steel Melting Shop liquid
ferrochrome and recycled steel are
melted according to customer
specified grade and cast into slabs
• Slab sizes are: Length 14 m,
thickness 167 – 185 mm, width
1000–1620 mm, weight 16–26
tons
• Capacity 1.6 million tpa
Steel Melting Shop – where the grade is produced
9/12/2013 20
• At Hot Rolling Mill slabs are hot
rolled into black coils
• Capacity is 1.6 million tpa
• Coil sizes: Thickness 2.5–12.7
mm, width 1000–1600 mm
Hot Rolling Mill – turning slabs into black coils
9/12/2013 21
• Black hot coils are annealed and
pickled to white hot bands and
further processed to cold rolled
products
• The capacity of the Cold Rolling
Plant is 1.2 million tpa
• 750 000 tpa cold rolled
products
• 450 000 tpa hot rolled
products
Cold Rolling Plant – producing finished sheet and coil
9/12/2013 22
Tandem mill
Annealing Mechanical descaling
Pickling Skin passing Entry Exit
Products from the RAP5-line
Tornio site and Kemi Mine March 2012 23
• The Port of Tornio is operated by
Outokumpu Shipping
• Exporting products into the
markets and importing raw
materials to Tornio Works
• The icebreakers keep the sea lane
open during winter
• Total traffic more than 2 Mt in
2012
Port of Tornio – an integral part of logistics
9/12/2013 24
• Finishing Plant with slitting and cut
to length facilities
• Capacity 450 000 tpa of cold
rolled and hot rolled products
• Non-stop vessel connection
between Terneuzen and Tornio
Finishing Plant in the Netherlands – link to markets
9/12/2013 25
Steps of Steel in Kemi and Tornio
9/12/2013 26
1950
1960
1970
1980
1990
2010
Chrome ore deposit discovered in Kemi in 1959
Kemi Mine and ferrochrome production begins in 1968 with a capacity of 28 000 tpa
Stainless steel production starts in 1976 with a capacity of 50 000 tpa
Kemi Mine expanded as the second FeCr smelting furnace begins operations in 1985
Hot Rolling Mill starts in 1988
Finishing Plant in the Netherlands opens in 1993
In 1995 ferrochrome converter begins operations, energy savings can
be achieved by using smelted ferrochrome in the process
Expansion of Cold Rolling Plant in 1997, capacity now exceeds 400 000 tpa
In 2004 steel production expansion project finalised,
stainless steel production capacity now 1,2 million tpa
Kemi Mine production moves underground in 2003, open pit exhausted in 2005
The capacity of ferrochrome production doubled in 2013, total capacity 530 tpa FeCr.
2000
Steps of steel Tornio site and Kemi Mine
Instructions for Visitors
March 2012 Tornio site and Kemi Mine 28
You have to be accompanied by your host
Personal protective equipment must be used at all times
Always follow the instructions of your host
We operate a recording video surveillance system on the premises
Photographing is not allowed
Smoking is allowed only in special areas
In case of emergency, please call
+358 16 452 300 (Tornio) or +358 16 453 737 (Kemi Mine)
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