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Start of production: First coil on new millThyssenKrupp Nirosta invests an eight figure sum in a new skin pass mill and strengthens the Dillenburg location. The new skin pass mill, a central unit in the cold rolling facility, started operation in January. With this investment we will be better equipped to meet our customers’ requirements over the long term.
Start of production: First coil on skin pass mill
The market trend for stainless strip is towards materials with increased yield strength and higher quality standards, such as improved flatness. For this reason, ThyssenKrupp Nirosta decided to build the new unit for strip thicknesses from 0.20 to 3.50 millimeters. It is 14 months to the day since the order was placed with equipment manufacturer BWG Bergwerk-und Walzwerk-Maschinenbau GmbH in Duisburg. Plant director Heinz Röther supported the project from start to finish and says proudly: “I fought for the new skin pass mill for a long time and now it’s the crowning achievement of my career.” Project manager Hans Joachim Becker is pleased that the special challenge of the project was successfully mastered: The unit was built while production continued and is situated in the logistically correct place between the bright annealing lines and the finishing shop. The hydraulic and technical equipment is housed in the basement beneath the mill. For this 2,500 cubic meters of earth was moved and the construction site fully enclosed for four months.
Shining success: 100 years of stainless steel
Stainless steel is an indispensable part of our everyday lives – from car exhausts to dental braces, from household appliances to sports equipment. The foundations for its global success were laid 100 years ago, when non-rusting steel was developed by Krupp’s researchers in Essen. 2012 marks the 100th anniversary of the world’s first patent for stainless steel: On October 18, 1912 a patent was granted for the “production of articles requiring high resistance to corrosion”. This was a quantum leap in material research, and it was followed two months later by a patent for the “production of articles requiring high resistance to corrosion through acids and extreme strength”. Prior to 1912 it was already known that chromium makes steel rust-resistant, but such steels were expensive to produce and difficult to process. The Krupp researchers were the first to discover that alongside the addition of specific amounts of chromium and nickel and heat treatment, reducing the carbon content was the secret to success. These ingredients were combined in the then patented V2A (Versuchsschmelze 2 Austenit – Test melt 2 Austenite) material – a designation still used today for grade 1.4301, the most commonly produced stainless material worldwide. The invention was particularly welcomed by Germany’s burgeoning chemical industry, already a major steel customer, which was looking for new grades capable of resisting attack by acids. NIROSTA® stainless steel was also of huge importance to the food and household appliance industries and quickly gained acceptance. The subsequent period saw the emergence of products that had never existed before anywhere in the world. Krupp’s stainless steel took the markets by storm.
Inoxum news: Combination with OutokumpuThyssenKrupp and Outokumpu have announced the combination of Outokumpu and Inoxum, creating the conditions for forging a strong global stainless steel supplier. The combination is still subject to the approval of the regulatory authorities and the approval of Outokumpu’s shareholders for the planned capital increase at Outokumpu. The transaction is expected to be completed by the end of 2012. ThyssenKrupp AG will have a 29.9% interest in the new company and receive a seat on the Outokumpu Board of Directors. Since ThyssenKrupp AG decided on the strategic move to carve out Inoxum in May 2011, the following options have been examined: IPO, spin-off or sale. In the end the industrial rationale underlying this transaction was so compelling that the solution now found was the best of all the alternatives. The new company will be more competitive on the global market and open up new perspectives. The product ranges and market segments of the two companies are an excellent fit. Outokumpu is the market leader for austenitic and duplex steels, for the chemical industry and the energy sector among others. Inoxum is one of the leading companies for ferritic, nickel-free steels for the automotive and white goods industries, and a major supplier of high-performance alloys, for example for the aerospace industry. The combination creates a company that will have a global, cost-efficient and competitive production network for a broad range of high-quality stainless products for different customer groups. Krefeld will become a Center of Excellence for cold-rolled products. The targeted optimization of melting capacities will improve operating levels – and thus reduce costs. In the future, the German plants will additionally be supplied from Finland and Italy. In this new constellation our company will continue to deliver high-quality products and customer service. Together with our customers we will work on solutions tailored to meet their specific requirements. North Rhine-Westphalia’s labor minister visits Nirosta
Guntram Schneider originally wanted to find out about the expansion of the Krefeld plant in connection with the NiFO (Nirosta Ferritic Optimization) project. But when he arrived at ThyssenKrupp Nirosta on the afternoon of January 23, 2012, the news of the negotiations with Outokumpu had just broken. So he took the opportunity to talk to Nirosta employees demonstrating outside Gate 2 prior to his tour of the meltshop and strip caster. Safe to say: NIROSTA® is not contaminatedHighly radioactive stainless steel plates and bowls from Asia were discovered at Ambiente, the consumer goods show in Frankfurt am Main, Germany. Tests showed that the levels significantly exceeded the legal limit of 10 Bq/g for Co 60. In recent years activity of up to 10,000 Bq/g has been measured in stainless steel imports from China. With NIROSTA®, radioactive contamination is not possible. In addition to 100 percent online scanning to detect contaminated scrap, we inspect at least two specimens from each finished steel heat to ensure that no contaminated scrap enters our manufacturing process. NiFO: Permit application filed
Aerial photo of Krefeld plant
Demand for nickel-free materials – e.g. for the manufacture of washing machine drums and water pipes, and for elevator construction – has risen significantly. So it makes sense for us to adjust our production structure accordingly and combine the two product lines in Krefeld. In January the orders for the new annealing and pickling line and the cold-rolling stand were placed. A further element in stage one is the construction of the black coil store which will mainly deliver starting material to the 1600 annealing and pickling line.
Production will be transferred from Düsseldorf-Benrath to Krefeld in stages by 2016. The project is associated with a three-digit million investment at the Krefeld site. “The filing of the permit application is a major milestone in the implementation of this enormously important project for Nirosta,” says Dr. Ulrich Albrecht-Früh, Chief Operating Officer at ThyssenKrupp Nirosta. “The consolidation of our locations is essential for our viability”. The company expects to receive the permit by summer 2012. The filing was preceded by intensive discussions with Düsseldorf district council, the North Rhine-Westphalia state agency for nature, environment and consumer protection, and the state ministry for climate protection, environment, agriculture, nature and consumer protection. An extensive environmental impact assessment was prepared, including measurements and forecasts of air quality in the vicinity of the plant. In the early stages of planning the company presented the project to neighbors as part of a community dialogue. In addition, the permit procedure involves public consultation, which means that the citizens of Krefeld will be able to study the project and the permit documents in detail in spring 2012. The preparatory measures include the demolition of a building complex in the southwest section of the site, work on which began in November 2011 and is due for completion in summer 2012. Nirosta and Stahl Krebs: 100 years of cooperationStahl Krebs in Solingen, established in 1882, is a distributor to manufacturers of cutlery, surgical instruments and tools. Today the company sells stainless steel products worldwide. On October 5, 1911 it signed an agency agreement for steel for scissors, knives and forks with the former Thyssen company Gewerkschaft Deutscher Kaiser in Hamborn, laying the foundation for a business relationship that went from strength to strength. After just a short time the agency Ernst Krebs grew into an independent steel distributor, which has stayed in the family’s hands for five generations. A few years ago Klaus Krebs handed over the helm to his nephew Daniel Krebs, who has since been successfully steering the company’s fortunes as its managing partner. The successful cooperation also has its roots in the company’s personal links to ThyssenKrupp: Both Klaus and Daniel Krebs learnt the “tools of the trade” as apprentices at ThyssenKrupp. With the benefit of this solid grounding and the necessary steel expertise, they have successfully defended the company’s position as market leader. “We’ve always had good connections and good personal relationships,” says Klaus Krebs. “In the past we have done a lot of joint development work and for instance optimized materials and finishes.”
Klaus and Daniel Krebs in the new warehouse.
What difference does a 100-year collaboration make? “The experience to know that it will continue and we can count on Nirosta’s good quality in the future. We have no doubts about this at all,” says Klaus Krebs. And from ThyssenKrupp Nirosta’s viewpoint too, doubts would be totally unfounded, because Stahl Krebs is expanding: Proof of the company’s confidence in the future is the new warehouse built last year. This investment increased storage capacities by 25 %, so with around 10,000 square meters of covered storage space, Stahl Krebs now has room to accommodate a very wide range of products. Daniel Krebs’ forward-looking strategy goes far beyond traditional steel distribution: “With our integrated service strategy we meet customer requirements also in logistics. That’s why we are also continuously investing in our own vehicle fleet. Looking ahead, I expect us to remain strong partners in the future.” Efficient: Electronic data interchangeIt starts with a game of ping-pong – and ends with a genuine cost saving. Many of Nirosta’s customers are already convinced users of the free service. The advantages of EDI are clear to see: Exchanging information on paper is now a thing of the past. The time-consuming typing up of invoices, test reports, etc. is no longer necessary. Errors made when transferring data manually are eliminated. With EDI, Nirosta sends the data direct to the customer’s system, where it is immediately available for further processing. Information on the entire order process can be accessed and viewed just in time, 24 hours a day, seven days a week. A one-hundred-percent reliable automated process that saves time and money.
“The key to success lies in seeing the business process as a single whole,” says Chief Sales Officer Karsten Lork. “It’s not a case of having one process for the supplier and one for the customer, everything is interconnected. Every purchase order triggers a production order, and so on. So ideally the systems of suppliers and customers should be interconnected and able to communicate with each other. That’s the only way to achieve an optimum integrated process that benefits everyone.” For general questions about EDI or inquiries about getting the system installed, all our customers can contact their respective Nirosta sales agent at at any time. They will then arrange for a meeting with the specialists at our company to discuss the possibilities available. Market environment: Current market situationWhile various indicators have been showing negative trends in recent months, the real economy has presented a more positive picture. The trade press expects further growth in global demand for cold-rolled stainless steel products in the 2012 calendar year. According to CRU forecasts (Stainless Steel Flat Products Quarterly revised of November 1, 2011) growth will be focused mainly on the Asian countries – as in previous years. Global demand is expected to climb 4 % to 17.7 million metric tons, with China showing above-average growth of 7 %. For Europe the analysts expect growth of under one percent to 3.3 million tons. However, the exception to this is Germany, where demand is expected to grow by almost 9 % to 1.1 million tons, exceeding its pre-crisis level for the first time. Expectations for the NAFTA region are down slightly after an above-average year in 2011. For the European producers, order intake in the final quarter of 2011 was very positive. While the previous quarters were marked above all by uncertainty and caution due to raw material price swings, the fourth quarter was considerably better. Compared with the first quarters, European producers increased their order intake by almost 10 %. In Germany, too, orders were up by 8 %. The analysts from Stainless Steel Focus anticipate no major changes in alloy surcharges and only recently published a forecast for the material 4301. They expect average prices of EUR 1,640 per ton in 2012, EUR 50 lower than the 2011 average. However, at EUR 1,416/ton the average price in the first two months of 2012 fell significantly short of this forecast. These assumptions are based on a nickel price increase to USD 21,500/t. The prices for alloying elements such as chromium and scrap and the EUR/USD exchange rate are expected to remain steady. Interactive: Customer/supplier training
Thirty Miele employees trained at Nirosta.
It was not the first time employees from Miele and ThyssenKrupp Nirosta had come together to exchange experiences. Three years ago production workers from ThyssenKrupp Nirosta went to Miele’s Gütersloh plant as part of a training program. Now employees from Miele came to Krefeld to take a look at Nirosta’s production operations. The level of interest shown by the Miele employees for this open training event was astonishing: “The huge response from our employees surprised us. More than 120 employees applied to take part, so we had to select 30 by drawing lots. We really hadn’t expected this, especially as the event was taking place outside working hours,” says Wilfried Barembruch, the personnel development officer responsible for open training at Miele. The trip proved well worthwhile. Afterwards the visitors gave a unanimous verdict: “A successful event at which we not only increased our knowledge of stainless steel but also gained a better understanding of some of the difficulties. We had no idea how much work goes into producing material of the quality required for our equipment!” says Wilfried Barembruch, summing up the impressions of our guests. The next visit is already planned: Another 30 Miele employees can look forward to finding out more about Nirosta in May 2012. ThyssenKrupp Nirosta GmbH is one of the world’s leading producers of stainless steel flat products with a wide distribution network.
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June 18 - 22, 2012 |
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