Slide 1: Port Kembla Steelworks & Springhill Analyst Site Visit
For personal use only 22nd January 2003 Port Kembla Steelworks & Springhill Analyst Site Visit Noel Cornish Chief Executive Australian & New Zealand Steel Manufacturing Businesses File Reference: u:\Guidelines - BlueScope Lysaght PowerPoint Template May 2011
Slide 2: Important Notice
Important Notice For personal use only THIS PRESENTATION IS NOT AND DOES NOT FORM PART OF ANY OFFER, OFFER INVITATION OR RECOMMENDATION IN RESPECT OF SECURITIES. ANY DECISION TO BUY OR SELL BLUESCOPE STEEL LIMITED SECURITIES OR OTHER PRODUCTS SHOULD BE MADE ONLY AFTER SEEKING APPROPRIATE FINANCIAL A
Slide 3: Introduction
For personal use only Introduction 2
Slide 4: Current Structure - Single point of focus for Australian & New Zealand Steel Manufacturing Businesses
Current Structure - Single point of focus for Australian & New Zealand Steel Manufacturing Businesses For personal use only Managing Director and CEO Legal (Michael Barron) CFO (Charlie Elias) Paul O’Malley People and Organisation Performance (Ian Cummin) Aus/NZ Steel Australian Australian Coated an
Slide 5: Current Australian & New Zealand Steel Manufacturing Businesses
Current Australian & New Zealand Steel Manufacturing Businesses For personal use only Noel Cornish Chief Executive ANZSMB Sharon Wingate Personal Assistant Simon Linge John Nowlan Barb Bridger Oscar Gregory Gabe Meena Aimee Allen Lawrence McDonald Ross Murray President General Manager General Manage
Slide 6: New BlueScope Australia & New Zealand Structure
New BlueScope Australia & New Zealand (“BANZ”) Structure – Aligned and Market Focused Australian & New Zealand Steel Businesses For personal use only Managing Director and CEO Legal (Michael Barron) CFO (Charlie Elias) Paul O’Malley People and Organisation Performance (Ian Cummin) Global Building &
Slide 7: New BANZ Structure – Aligned and Market Focused
New BANZ Structure – Aligned and Market Focused Australian & New Zealand Steel Organisation For personal use only 6
Slide 8: Changes to BlueScope Australia & New Zealand Business
Changes to BlueScope Australia & New Zealand Business For personal use only • The recently announced changes to the Australasian business are intended to: ¾ Deliver an improved sales and marketing effort and better integrated customer service,, with a keyy focus to compete p against g imported p ste
Slide 9: Agenda
Agenda For personal use only • Safety • Water conservation • Community • Markets • Port Kembla Steelworks – Process and Production – Costs and Raw materials – Major Investments • Coated Businesses – Process and production • Summary 8
Slide 10: Safety, Water Conservation, Community & Markets
For personal use only Safety, Water Conservation, Community & Markets 9
Slide 11: Safety – ANZSMB – Illawarra
Safety – ANZSMB – Illawarra For personal use only Lost Time Injury j y Frequency q y Rate Medicallyy Treated Injury j y Frequency q y Rate 20 3.0 2.5 2.5 13 2.0 1.8 1.8 1.4 10 9 1.5 7 0.9 6 1.0 0.8 5 5 5 0.7 4.7 4 3.3 0.4 0.5 0.3 01 0.1 0.0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 2011 200
Slide 12: Environment – Continued Improvement in Water Conservation
Environment – Continued Improvement in Water Conservation For personal use only Port Kembla Steelworks Springhill Works • World class water efficiency for an integrated steelworks • Fresh water input is >50% recycled water • 26,500 ML of recycled water used since Oct 2006 • Recycled water is >50% of
Slide 13: Community Engagement
Community Engagement For personal use only • Policy of supporting education, education youth, arts and culture, community welfare • Active participation in a variety of community initiatives and committees • $500,000 in sponsorships, supporting pp g 30+ Illawarra organisations • $80,000 in donations
Slide 14: Markets and Supply Chain
Markets and Supply Chain For personal use only Western Port Building B ildi & Construction Illawarra Direct Distribution Domestic & Solutions Manufacturing Australia Export Distributors Pipe & Tube 13
Slide 15: Port Kembla Steelworks
For personal use only Port Kembla Steelworks 14
Slide 16: Port Kembla Steelworks – Overview
Port Kembla Steelworks – Overview For personal use only • Fully integrated plant with steel making capacity off 5.3Mtpa. • Situated on 760 hectares and employing 3,100 permanent employees (plus 1 000 - 1,500 1,000 1 00 contractors on any given i dday). ) • Excellent technical and operational skills
Slide 17: PKSW – Overview of Steel Production Process
PKSW – Overview of Steel Production Process For personal use only SINTERING Coal I Iron Ore O BLAST FURNACE Sintered COKE OVEN ore Coke Molten pig iron Sl Slag CONVERTER (BOS) “Graded” Liquid Steel REFINING STAND CONTINUOUS CASTING FLAT PRODUCTS Slab REHEAT FURNACE ROLLING MILL Hot rolled strip Cold
Slide 18: PKSW – Production & Despatch Flow
PKSW – Production & Despatch Flow For personal use only Port Kembla Steelworks Slab Domestic Slab Production 0 0 1H 2011 1H 2010 872 839 2,643 2,187 Export 351 375 Inventory movements Interco Western Port (2) & yield losses 521 464 Hot Strip HRC Domestic Mill Port Kembla Steelworks 1,448 1,112 213(3
Slide 19: PKSW – Major Investments
PKSW – Major Investments For personal use only Commissioning Project Capex (A$m) 1996 No. 6 Blast Furnace 478 2000 5 t P 5mtpa Project j t 90 2001 Coke Side Emission Control 91 2004 Sinter Plant Emission 94 2006 Hot Strip Mill Expansion 100 2009 No. 5 BF Reline 362 2009 Sinter Plant Upgrade Project
Slide 20: PKSW – Major Investments
PKSW – Major Investments For personal use only No. 5 Blast Furnace • Built in 1972, relined in 1978, 1991 and 2009; capacity approximately 2.6Mtpa of hot metal • Reline undertaken from 18 Jan to 19 Aug 2009 • Restarted on 19 August 2009 and has operated continuously since blow-in No. 3 Sinter Machin
Slide 21: PKSW – Cost Profile
PKSW – Cost Profile For personal use only Total cost A$m Raw Materials Desp & Freight Conv Costs S&A FY2006 FY2007 FY2008 FY2009 FY2010 1H FY2011 Notes: (1) Chart shows cost of despatches. (2) Conversion costs include depreciation . (3) Raw material includes iron ore, coal, scrap and alloys but not
Slide 22: PKSW – Consumption of Primary Raw Materials
PKSW – Consumption of Primary Raw Materials For personal use only Volume consumed in production (dry mt) Indicative use rate FY2008 FY2009 FY2010 1H FY11 per slab tonne Iron Ore Reflects mix shift Fines 4.0 2.9 4.0 2.3 0.97t from sinter plant Lump 16 1.6 10 1.0 15 1.5 09 0.9 0 31t 0.31t upgrade pg P
Slide 23: PKSW – Productivity
PKSW – Productivity For personal use only Productivity (tonnes per person per year) 6,000 1,800 E l Employees 5,500 1,600 nnes/Employeee/Year) 5,000 4,705 1 400 1,400 4,500 4,049 4,000 3,783 1,200 3,662 3,610 3,567 3 500 3,500 3,406 3 171 3,171 1,000 Productivity (Crude Steeel Output, Ton 3,146 3,08
Slide 24: Springhill – Coated Products
For personal use only Springhill – Coated Products 23
Slide 25: Springhill – Coated Products
Springhill – Coated Products For personal use only • Springhill’s Coupled Pickle Cold Mill 990kt • Metal Coating Lines (3 lines) 825kt • Springhill Paint Line 200kt 24
Slide 26: Coated Australia – Annual Capacities
Coated Australia – Annual Capacities For personal use only Western Hot Strip Mill HRC Port 1,400 Pickle Line HRC 1,100 Slab Cold Mill CRC 1 000 1,000 Port Kembla Metal Coating Lines Metal Coated 830 Strip Steelworks Paint Lines Painted Strip 330 HRC Springhill Coupled Pickled Cold Mill CRC 990 Metal
Slide 27: Summary
For personal use only Summary 26
Slide 28: Summary
Summary For personal use only • Continued focus on safety, community and environment • Continued focus on cost reduction initiatives • Responding to meet market demands 27
Slide 29: Q & A's
For personal use only Q & A’s 28
Slide 30: Supporting Information
For personal use only Supporting Information 29
Slide 31: Cokemaking
For personal use only Cokemaking 30
Slide 32: Cokemaking Process Overview
Cokemaking Process Overview For personal use only GAS BTX 3.0Mtpa PROCESSING SULPHATE TAR (Benzene) BLENDED COAL 39Kt 86Kt 23ML Interworks COKE OVENS GAS energy 19,000TJ (boilers, furnaces) COKE PLANT COKE SCREEN 86% Types of coke 2.3Mtpa solids produced 1 tonne of coke solids is COKE LUMP SOLIDS 7%
Slide 33: Ore Preparation – Sinter and Raw Materials Handling
Ore Preparation – Sinter and Raw Materials Handling For personal use only No.3 Sinter Machine Built 1975 R Revamped d 2009 Grate Area 480 m2 Production 6.6 Mtpa Productivity 38-40 t/m2/d BF Burden ~60 - 70% 32
Slide 34: What is Sinter?
What is Sinter? For personal use only FINE ORES Blended and Fluxed in Sinter Machine to Produce Sinter PELLETS LUMP ORES Pellets Sinter Lump PREPARED BURDENS BLAST FURNACE 33
Slide 35: Blast furnace – Ironmaking Process
Blast furnace – Ironmaking Process Raw materials , Lump Ore, Ore Sinter , Pellets, Coke & fluxes For personal use only Charged Through top of furnace Excess Hot gases flow from top of Furnace to Gas Cleaning Plant and reused for heating 100 oC Layers of Coke & Ferrous Materials descend over 8 hrs to
Slide 36: Ironmaking – Blast Furnaces
Ironmaking – Blast Furnaces For personal use only No.5 Blast Furnace No.6 Blast Furnace No.5BF No.6BF Built 1972 1996 Relined 1978, 1991, 2009 - C Campaign i Life Lif 15 - 20 yrs >20yrs 20 Output 2.6 Mtpa 2.6 Mtpa 35
Slide 37: Steelmaking Process
Steelmaking Process For personal use only Basic Oxygen Steelmaking (BOS) Molten iron (250t) Scrap steel (approx 60t) Oxygen blowing * Annual Scrap Usage (indicative) 1mtpa (approximately 40% sourced externally) Refractory lined BOS furnaces 3 x 280t 36
Slide 38: Slabmaking Process
Slabmaking Process For personal use only Steel ladle Revolving Steel ladle turret Tundish Continuous Slab Casters Mould 5.3 Mtpa Max. width = 2200mm Max. length = 12.5m To cut-to-length Hot Strip Mill, Plate Mill, Max thickness = 300mm Max. Westernport or export 37
Slide 39: Slabmaking
Slabmaking For personal use only No.11 No No.22 No No.33 No BOS 1972 1972 1983 Caster 1978 1986 1986 5.3Mtpa total output 38
Slide 40: HRC Process
HRC Process For personal use only Hot Strip Mill Commissioned 1955, 1955 upgrades pgrades 1972 1972, 1985-1987 & 2000-2006 2 9 Mtpa 2.9 Product flow Slabs ex Slab Coil box Casters Reheated to 1225°C Six Stand Finishing Mill min. gauge 1.48mm Dual reheat Roughing- g g furnaces Reversing Mill300mm – 2
Slide 41: Hot Strip Mill
Hot Strip Mill For personal use only Built 1955 Major upgrades 1972, 1980, 1987, 1993, 2000-2009 2nd Walking Beam Furnace 2006 Capacity 2.9 Mtpa 40
Slide 42: Plate Process
Plate Process For personal use only Slabs ex Slab Caster 450ktpa p capacity p y Commissioned 1963 5mm- 180mm thick x 1200mm- Reheat Furnaces 3400 3400mm wide id Finishing Mill Roughing Mill Hot leveller Descaling Box Shearing, stencilling, shot blasting, prime Product flow painting & inspection 41
Slide 43: Plate Mill
Plate Mill For personal use only No1 Furnace & Stand 1 Rolling Mill 1963 No2 Furnace & No2 Stand Rolling Mill 1971 Capacity 450,000t 42
Slide 44: PKSW – Despatches by Half Year
PKSW – Despatches by Half Year For personal use only 2,609 2,599 2,611 2,555 2,494 2,118 2,081 BSL internal* 1,361 1,295 1 606 1,606 1,423 1 322 1,322 1,411 1,348 1,203 699 Export external 782 838 526 710 876 267 540 490 Domestic external 466 466 479 440 422 100% exported, with 338 296 geographic sa
Slide 45: Springhill – Cold Rolling
Springhill – Cold Rolling For personal use only COUPLED PICKLE COLD MILL Technical Capabilities Coupled Pickle Cold Mill CPCM – Thick 0.30 – 3.30 mm Thickness reduction via cold rolling Recoiling using carousel reel Width 615 – 1320 mm through five stands Scale removal (pickling) using hydrochloric
Slide 46: Springhill – Metal Coating
Springhill – Metal Coating For personal use only Technical Capabilities METAL COATING LINES MCL1 – Thick 0.03 – 3.30 mm Width 610 – 1240 mm MCL2 – Thick 0.50 – 3.50 mm Width 610 – 1240 mm Pre-Heat Ovens Horizontal MCL3 – Thick 0.30 – 1.00 mm Width 610 – 1240 mm Cooling Baths Skin Pass Mill Passivati
Slide 47: Springhill – Painting and Finishing
Springhill – Painting and Finishing PACK & DESPATCH For personal use only PAINTING Primer Ovens Primer Coater Automatic Guided Vehicles Main Oven Main Coater Inspect & Test Painted coil is recoiled Chemical rinsing, cleaning & pre-treatment Labelling Strapping Protective Plastic Finished Coated Coil
Slide 48: Springhill – Site History
Springhill – Site History For personal use only 1939 John Lysaght (Australia) Springhill Works begins full operation 1955 4 stand continuous Cold Rolling Mill commissioned 1968 Cold Rolling Mill upgraded to 5 stands 1961 First continuous galvanising line commissioned 1964 Second continuous galvanisi
Slide 49: Springhill – Environment
Springhill – Environment For personal use only • Springhill site is a zero process water discharge site • all process water is treated through waste water treatment and returned to Sydney Water for recycling. • only stormwater is received into the local environment. • Recertified to ISO 14001 April
Slide 50: Port Kembla Steelworks & Springhill Analyst Site Visit
For personal use only 22nd January 2003 Port Kembla Steelworks & Springhill Analyst Site Visit Noel Cornish Chief Executive Australian & New Zealand Steel Manufacturing Businesses File Reference: u:\Guidelines - BlueScope Lysaght PowerPoint Template May 2011