Andrei Karunos

    After a radical reconstruction the 8-strand billet continuous casting machine (BCCM) was put back in operation at West Siberian Steel Corporation (ZSMK). The history of this unique unit, which was supplied to Russian partners by Danieli, might be considered very instructive as far as business in steel industry is concerned.
Originally the Danieli machine designed to cast round billets of 400 mm in diameter was commissioned seven years ago. Limited financial resources of the customer did not permit its full operation: instead of eight strands only four were used. The volume of casting in 1995 to 1997 amounted to 70.7 thousand tons of steel. But later on BCCM was standing idle since its products did not have a market. The unique unit needed modernization. The cost of works to upgrade it was estimated at 8.5 million euros.

Upgraded Danieli BCCM in the converter shop No. 2 of ZSMK

The task to implement the project fell on the management company EvrazHolding, the new owner. Unlike its predecessors EvrazHolding values money and its business reputation highly enough to avoid unwarranted risks: the reason why the positive decision made by the company management might be regarded in a sense as a guarantee of the project’s hopeful market prospects. The market research with due consideration of conditions and technological potential of the available production facilities showed: it would be advisable to convert BCCM to casting 150 mm- square billets.
In January 2002 Aman Tuleev, the governor of the Kemerovo region (that is exactly where the works mill is located), and Gianfranco Facco Bonetti, Italy’s ambassador to Russia, signed a memorandum on a contract between the West Siberian Steel Corporation and Danieli. Under this contract Danieli shipped equipment necessary for reconstructing the machine. Siberian specialists installed it in 6 months.
Now this 25-m high unit is capable of providing the casting of more than 300-ton heats. Steel is cast into eight strands with the whole process taking just 2 hours instead of 4 or 5 hours in the past. When reaching the rated capacity the machine’s production volume will amount to 1.3 million tons of steel a year.
Danieli’s upgraded unit improved the basic oxygen process at ZSMK. Losses were reduced by 80 to 100 kilograms per each ton of steel and this made it possible to increase the output of finished products without additional costs. And potential importers have already shown interest in square billets.
According to Sergei Nosov, one of EvrazHolding’s top managers, who is responsible for the company’s technological policy and who is the management director of two - ZSMK and Nizhny Tagil Iron & Steel Works (NTMK) - enterprises, the reconstructed machine will reach the rated capacity already in the first quarter of 2003. Up to 50% to 60% of billets will be utilized by ZSMK itself for rolling at the 450-mm section mill. The remainder will be marketed.
"The successful modernization of BCCM proves that we seriously mean business", stressed Sergei Nosov. "In a short period of time the management company and specialists of the works managed to accomplish what people failed to be done in ten years", he said.
ZSMK’s reconstruction efforts are focused on steel production. "Before the year ends, we should make a decision of constructing another four continuous casting machines: three billet and one slab. This is the most important project. We want to spurt in overcoming the technological lag in steel casting that haunted the works", Sergei Nosov noted.
As Sergei Nosov believes, in 1.5 - 2 years "it will be necessary to do away with ingot casting completely". By 2004 "the historic injustice should be abolished", he says. In Nosov’s opinion, this injustice lies in the fact that one of Russia’s youngest integrated metallurgical mills has to use an outdated technology at the steel-melting process stage. "Having modern coke & by -products and basic oxigen steel production facilities as well as unique BCCM we will move the works to a new, higher level of development", Nosov says with conviction.
With these machines at ZSMK and after BCCM-4 is constructed on the turnkey basis and commissioned by Austria’s Voest Alpine at the Nizhny Tagil Iron and Steel Works, EvrazHolding’s enterprises will completely switch to the technology of billet continuous casting. Sergei Nosov though makes one important reservation: it will become real on a condition that financing schemes are precisely defined. For example, in order to start reconstruction of BCCM at ZSMK the system of crediting against products to be produced by the unique machine was set. It should be noted that practically all BCCMs, both operating and under construction at enterprises of EvrazHolding, are unique as far as engineering solutions and production potential are concerned.
During privatization of Russia’s steel industry EvrazHolding was not as lucky as its major competitors. Only enterprises with a higher wear extent of their basic assets and smaller range of market-demanded products fell to its lot.
"What was EvrazHolding in the recent past?", reasons Nosov. "First, it was NTMK. Its products were flat products and wheels. There were no orders, basic assets were worn out and the enterprise itself was broke. Then came the Kuznetsk Steel Corporation (KMK). It particularly suffered from mistakes made in previous years. Millions of investment rubles were literally buried: by that I mean the construction of a converter shop that was started and abandoned. Similar errors led KMK to bankruptcy. And ZSMK was also broke. All three integrated works were oriented on making long products that were not in demand at that time".
At present EvrazHolding is doing a truly titanic job to raise these enterprises to world standards. Their managers are reequipping and restructuring all production facilities. So, Russia’s largest steel corporation with an annual volume of steel production equaling 14 million tons is being created now. "In 3 to 4 years experts will appreciate what a hell of a job we did", assures Sergei Nosov.
NTMK is the most dynamic in its renewal. The new coke-oven battery No.6 is about to be commissioned. After that the works be fully provided with coke and by -products. Reconstruction but, in fact, new construction of blast furnace No.6 is underway. Instead of six existing blast furnaces three should remain but they will start producing iron in the previous volume. Those will be modern furnaces with closed casthouses, bell-less charging devices and the latest control systems. In 2003 reconstruction of the converter shop is to be started and it will take a year and a half. "As a result, we will have an up-to-date works with the annual steel production volume of 5 million tons", points out Sergei Nosov.

R    E    F    E    R    E    N    C    E  West Siberian Steel Corporation (ZSMK) is one of Russia’s largest producers of steel rolled products for the construction and machine-building industries. ZSMK’ steel complex containing two basic oxygen shops is capable of guaranteeing the annual production of 8 million tons of steel of over 100 different grades. Its principal products are dry-quenched coke, steelmaking pig iron, steel ingots, iron and steel castings, billets for re-rolling, rounds, steel reinforcement, angles, beams and channels, wire.

The outlook for West Siberian Steel Corporation is from 7.5 to 8 million tons of steel a year. What is more, this integrated works will be developed depending on the rolled steel market conditions. "We will not make investments without marketing guarantees. For example, based on today’s production level the program to construct CCM is, for the time being, oriented on 5 million tons of steel", Sergei Nosov says.
As for KMK there is a need for forming a technological link between the electric-furnace melting shop and the rail mill via continuous casting. Also, construction of a heating furnace at the head of the rail and structural mill shop should be completed. Besides, production of electric steel should increase up to 1.5 million tons a year. As Sergei Nosov says, everything else is subject to either restructuring or closing.
The management director sums up: "The control over three production sites being in the hands of EvrazHolding’s managers allows us to optimize utilization of facilities, to reduce costs and through internal cooperation to completely saturate the market. Reserves are enormous. By my estimates, cooperation in entry billet, in determining the range of products, in optimizing circulated resources and distributing orders competently will permit the company to save up to 15% of its funds".
Strengthening positions of Russian steel industry lies in development of the domestic market. Expansion of Russia’s economy will determine the growth of steel consumption. "Production volumes in steel industry will be growing. Russia cannot and should not consume steel three times less than other developed countries!", says Sergei Nosov.