Outokumpu Oyj · OMXHEX:OUT1V
Outokumpu Oyj — Investor Day (May 2002)
19 slides from Outokumpu Oyj's investor day presentation, May 28, 2002
Slide 1: AvestaPolarit Stainless Oy – Presentation for Capital Market Day
AVESTAPOLARIT STAINLESS OY Presentation for Capital Market Day Tornio, May 28, 2002 Niilo Suutala Contents: 1. Introduction 2. Business environment 3. Size matters? 4. Project DOUBLE NJS_Capital Market Day 28.5.2002 1
Slide 2: Location
Location SWEDEN FINLAND TORNIO Ud dja ur HAPARANDA Tornio Kemi Röyttä Works Reykjaví k harbour Mine KEMI N Kuopio Osl o Gulf of Ajos Bothnia Harbour 0 5 10 15 km NJS_Capital Market Day 28.5.2002 2
Slide 3: Process Flow
Process Flow AvestaPolarit Chrome Oy AvestaPolarit Stainless Oy Kemi Mine Tubular Products Ferrochrome Ferrochrome Plant Nickel, scrap Slabs Steel Melting Shop Slabs Black Hot Coils Hot Rolling Mill White Hot Products Cold Rolling Plant Cold Rolled Products Other steel mills APP Tube mills End-users
Slide 4: From chrome ore to stainless steel
From chrome ore to stainless steel Kemi mine SINTERING PLANT Product handling Sales of FeCr-SMELTERS FeCr STEEL MELTING SHOP HOT ROLLING MILL Sales of hot coils COLD ROLLING PLANT Sales of Polarit-steel OY JA-RO AB NJS_Capital Market Day 28.5.2002 4
Slide 5: Main equipment
Main equipment EAF Steel melting shop Chrome converter AOD LAF CCM WBF Hot Rolling Mill RM, 4 high FM, 6 high Steckel 4 x AP Cold Rolling Mill 3 x Sz 2 x Skin pass mill slitting lines cut to length lines AvestaPolarit slitting line Processing cut to length line Customers NJS_Capital Market Day 28.5.
Slide 6: Brief History of Tornio Integrated Mill
Brief History of Tornio Integrated Mill 1600 1400 1200 Project Renovation SZ3 Double of Melting AP4 1000 Production x 1 000 t Shop 800 Chrome ? Converter Sz2, 600 AP3 Hot Rolling Mill 400 Production AP2 start 200 0 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 Slab
Slide 7: Business environment
Business environment Consumption of stainless steel will increase 5 %/a Cyclic character of business will continue – Sensitivity to demand/supply balance (capacity utilisation rates) – Sensitivity to variations in nickel price Customer needs will increase – Product quality – Accuracy and speed of de
Slide 8: Cold rolled conversion margins forecast to continue long term downward trend
Cold rolled conversion margins forecast to continue long term downward trend DM/kg 6 Source: C RU 5 4 19 9 5 Peak in Co nvers io n M arg ins 3 Co nvers io n marg ins fo recas t t o b e weak d uring 2 0 0 1-3 2 German CR 3 0 4 2 mm 2 B 1 Exp o n. (German CR 3 0 4 2 mm 2 B) 19 9 9 Tro ug h in Co nvers
Slide 9: Capacities of Top Melting Shops in 2001 and 2006
Capacities of Top 10 Melting Shops in 2001 and 2006 (x 1000 tons) 2001 2006 Posco Pohang 1273 Posco Pohang 1736 AST Terni 1000 AvestaPolarit Tornio 1667 Acerinox Palm ones 932 AST Terni 1550 Yusco Kaohsiung 930 ALZ Genk 1200 KTN Bochum 760 Acerinox Palm ones 932 AvestaPolarit Tornio 637 Yusco Kaohsi
Slide 10: Capacities of Top Cold Rolling Plants in 2001 and 2006
Capacities of Top 10 Cold Rolling Plants in 2001 and 2006 (x 1000 tons) 2001 2006 A cerinox P alm ones 600 A vestaP olarit T ornio 750 A vestaP olarit Tornio 440 A cerinox P alm ones 600 Yusco K aohsiung 380 A LZ G enk 520 A LZ G enk 360 NAS C arrolton 466 A K S teel R ockport 350 KTN K refeld 450 N
Slide 11: Project Double (790 MEUR)
Project Double (790 MEUR) Capacity Existing Double in 2005 EAF EAF Steel melting shop Chrome converter AOD 1,65 Mt/a 640 000 t/a AOD LAF LAF CC CC WBF WBF 1,05 Mt/a Hot Rolling Mill RM, 4 high 650 000 t/a FM, 6 high Steckel 4 x AP RAP 5 3 x Sz finishing Cold Rolling Mill 2 x Skin pass mill capacity
Slide 12: Main Equipment in Project Double: Steel melting shop
Main Equipment in Project Double a) Steel melting shop Arc furnace 150 tons/160 MVA AOD converter 150 tons Ladle furnace 20 MVA Continuous casting machine (max. 1,7 m/min, max. slab thickness 240mm) Filtering units (3 million m3/hour) Hot slab grinding machines (2) NJS_Capital Market Day 28.5.2002 1
Slide 13: Main Equipment in Project Double: Hot Rolling Mill
Main Equipment in Project Double b) Hot Rolling Mill Walking beam furnace 250 tons/hour Scrap cutting machine after Steckel Roll grinding machine NJS_Capital Market Day 28.5.2002 13
Slide 14: Main Equipment in Project Double: Cold Rolling Plant
Main Equipment in Project Double c) Cold Rolling Plant RAP 5 • thickness 1-6mm • process speed 150 m/min (max) • rolling speed 250 m/min • skin passing speed 350 m/min • capacity 1100 ktons/year (with mix 750 ktons hot and 350 ktons cold) Regeneration plant no. 3 Finishing capacity increase NJS_Capi
Slide 15: RAP5 philosophy
RAP5 philosophy White HR RAP5 2B / 2D coils finish Skin- Tandem AP-process pass mill mill Black HR No. 1 / 2E coils finish Second cycle material for 2B / 2D NJS_Capital Market Day 28.5.2002 15
Slide 16: Schedule of Project Double
Schedule of Project Double 2000 2001 2002 4 6 8 1 1 2 4 6 8 1 1 2 4 6 8 1 1 0 2 0 2 0 2 Melting shop - building - erection and start-up - production Hot rolling mill - buildings - erection and start-up - production Cold rolling mill - buildings - erection and start-up - production NJS_Capital Market
Slide 17: Hot rolling mill expansion (170 MEUR)
Hot rolling mill expansion (170 MEUR) Capacities after project DOUBLE – Slab production 1,65 Mt/a – Black coil production 1,05 Mt/a – Tornio cold rolling plant 1,20 Mt/a Hot rolling mill expansion advantages – No need for hire rolling of Tornio slabs – More potential in black coil sales than in slab
Slide 18: Flow sheet of the hot rolling mill with 1,7 Mt/a
Flow sheet of the hot rolling mill with 1,7 Mt/a Slabs from the Walking beam furnace no 2 melting shop Heat keeping pits Cold slabs Walking beam furnace no 1 Furnace Furnace coiler coiler Crop Vertical edger Finishing High pressure stands shear water descaler Steckel mill Roughing mill Scrap Laminar
Slide 19: Summary
Summary Competitive, cost effective and integrated ferrochrome and stainless steel production in Kemi-Tornio area Customer focus on a better control of the order-supply chain Single-site, large scale operations Considerable logistics and energy benefits Up-to-date technology Highly motivated personn