Dofasco Completes Major Blast Furnace Rebuild

HAMILTON, ON, July 8 /CNW/ - Dofasco today announced the successful  
start-up of its No. 2 Blast Furnace, which was completely rebuilt over the
last year to incorporate the world's most advanced ironmaking technology.
Used to reduce iron ore pellets into molten iron for further processing
in the company's steelmaking facilities, the rebuilt blast furnace features
several advancements over earlier designs that make it one of the safest and
most efficient furnaces in North America.
Innovations included in the upgrade are automation of the material
charging process, complete fume capture for environmental protection and a
covered casthouse floor that allows greater furnace access and improved
employee safety.
Dofasco chose to rebuild its No. 2 Blast Furnace, which was
decommissioned in 1994 following the closure of an older, obsolete steelmaking
operation, instead of shutting down and relining the company's No. 3 Blast
Furnace. The unprecedented strategy allowed iron production to continue
uninterrupted while No. 2 Furnace was under construction, and saved Dofasco
from the usual production and customer service setbacks associated with blast
furnace relines. Dofasco credits employees with the success, largely because
of their commitment to maintaining the No. 3 Furnace at full production well
beyond its planned campaign life.
Dofasco President and Chief Executive Officer Don Pether said the rebuild
of the No. 2 Blast Furnace is part of an investment in the company's Hamilton
operations that totals more than $1 billion, and includes a five-year,
$700 million project to upgrade facilities throughout the company's Finishing
Division.
"These investments demonstrate our commitment to customers, shareholders,
employees and the community," said Pether.
More than half of Dofasco's current capital investment is going directly
into the local economy in the form of wages, equipment and supplies from local
contractors and suppliers. At its peak the blast furnace rebuild employed more
than 650 local contractors and has taken more than 1.1 million labour hours to
complete.
The No. 2 Blast Furnace rebuild is the most recent upgrade the company
has made to its primary production facilities. "Our Hamilton operations are
among the most efficient and technologically advanced of any steel plant in
North America," said Pether.
Dofasco's primary manufacturing facilities include one of the world's
most advanced oxygen steelmaking furnaces that feeds a twin strand continuous
slab caster alongside of a low-cost Electric Arc Furnace, ladle metallurgy and
a single strand continuous slab caster, which processes recycled scrap steel.
The furnace rebuild also comes on the heels of a $138 million project that
made significant improvements to the company's hot rolling operations.

Dofasco is a leading North American steel solutions provider. Product
lines include hot rolled, cold rolled, galvanized, Extragal(TM), Galvalume(TM)
and tinplate flat rolled steels, as well as tubular products, laser welded
blanks and Zyplex(TM), a proprietary laminate. Dofasco's wide range of steel
products is sold to customers in the automotive, construction, energy,
manufacturing, pipe and tube, appliance, packaging and steel distribution
industries.


                Dofasco Starts Rebuilt Blast Furnace
                             Fact Sheet

Blast furnaces explained:
-   Nearly 20 stories tall, blast furnaces are large water-cooled vessels
    lined with heat resistant, refractory brick.
-   Blast furnaces reduce iron ore pellets into molten iron.
-   Other raw materials used in the ironmaking process include coke (made
    from coal) and limestone.
-   The molten iron is then mixed with alloys in Dofasco's basic oxygen
    furnace to create a wide range of steel products for various
    applications.
-   The prime source of fuel for a blast furnace is coke, which is made
    by baking coal in a Coke Oven for 16 hours at 1,100 degrees Celsius.
    The hardball sized coke is nearly pure carbon that when mixed with
    superheated air in the blast furnace, creates the thermo-chemical
    reaction needed to reduce iron ore.
-   The ironmaking process also produces slag, a valuable by-product that
    is recycled and used in products including concrete, concrete blocks,
    roadbed aggregate, roofing materials and rock wool insulation.

How many blast furnaces does Dofasco operate?
-   Dofasco operates two blast furnaces: the No. 2 Blast Furnace and the
    No. 4 Blast Furnace. The rebuilt No. 2 Blast Furnace replaces the
    No. 3 Blast Furnace.

Dofasco's blast furnace capacity:
-   The company's No. 4 Blast Furnace produces 4,600 net tons of hot
    metal per day.
-   The No. 2 Blast Furnace is expected to produce 2,900 net tons of hot
    metal per day.

Improved design:
-   The rebuilt No. 2 Blast Furnace boasts several advancements over
    earlier designs that make it one of the safest and most efficient in
    North America.
-   These improvements include:
       -  A freestanding furnace and re-designed casthouse floor that
          allows for greater access to the vessel itself and greater
          freedom of movement for employees and equipment.
       -  Covered iron and slag troughs with localized fume and dust
          collection.
       -  An increase to 15 from 12 tuyeres (nozzles that inject the
          superheated air), which increases the furnace's throughput.
       -  A top-charging system that increases the furnace's raw material
          charging control and distribution, and reduces the furnace's
          energy consumption.
       -  A closed-loop cooling system that reduces baywater cooling
          requirements.
       -  An automated stockhouse to streamline raw material charging
          control.
       -  Automated drills and mud guns that allow for consistent tapping
          of the furnace, helping extend the furnace's campaign life.
       -  Initially scheduled for a 16-year campaign with a mid-campaign
          repair, the technological advancements incorporated into the
          furnace will likely make the mid-campaign repair unnecessary.

Starting a blast furnace:
-   Blast furnace start-ups are carefully planned and executed.
-   First, the furnace hearth (the lower portion of the furnace) is
    filled with three-quarters coke and one-quarter iron to kick-start
    the initial reaction and begin the heating and melting process.
-   Then a continuous blast of air, superheated to about 760 degrees
    Celsius, is blown into the furnace.
-   Slag is added to the furnace and as the heat in the vessel builds the
    slag is drawn off, and slowly more and more iron is added to the mix
    until the furnace is producing the right amount of iron at the
    desired mix.
-   It takes about three days before the furnace is operating at full
    capacity.

Dofasco tries something new:
-   Historically, blast furnaces are relined (the inner brick lining is
    replaced) after producing iron for a predetermined time period,
    what's referred to as the campaign life.
-   Over the years, Dofasco has had great success in extending the
    campaign life of a blast furnace from three to four years in the
    1950s, to the current 15 to 20 year expected service life.
-   Relines are intensive and can be lengthy, and for steel companies
    this normally results in reduced production and makes it necessary
    for companies to begin planning for relines well in advance, building
    their inventory of semi-finished product to avoid interruption to
    customer service, and if necessary requiring them to purchase slabs
    from outside sources.
-   By rebuilding the No. 2 furnace from the ground up while continuing
    production at its No. 3 and No. 4 furnaces, Dofasco avoided these
    interruptions.

Benefits to local economy:
-   At its peak, the rebuild of the No. 2 Blast Furnace employed more
    than 650 local trades people for a total 1.1 million labour hours
    worked (over 600 labour years) with only one lost time injury.

A history of blast furnaces at Dofasco:
-   No. 1 Blast Furnace entered service in 1951, and was decommissioned
    in 1994, and demolished in 1997, after the No. 1 Melt Shop was
    decommissioned.
-   No. 2 Blast Furnace entered service in 1956, and its last full
    campaign ended in 1994.
-   No. 3 Blast Furnace entered service in 1960, and will be idled in the
    wake of commissioning the rebuilt No. 2 Blast Furnace.
-   No. 4 Blast Furnace entered service in 1971, and remains in service.
    It was last relined in 1998.