Acerinox Sa · BME:ACX
Acerinox Sa — Columbus Stainless — Investor Day (September 2010)
38 slides from Acerinox Sa's investor day presentation, Sep 16, 2010
Slide 1: Columbus: South African Stainless All Over the World
COLUMBUS: SOUTH AFRICAN STAINLESS ALL OVER THE WORLD Dave Martin Chief Executive Officer of Columbus Investor and Analyst’s Day North American Stainless (NAS) 16th September 2010
Slide 2: Columbus: South African stainless around the world
Columbus South African stainless around the world 16 September 2010
Slide 3: …and in 2010 the world came to South Africa…
…and in 2010 the world came to South Africa…
Slide 4: 2010 World Cup great success
- 2010 World Cup great success - Infrastructure legacy * roads * airports * facilities * communications - Show pieced South Africa’s capability - Nation building event
Slide 5: Current world champions
Spain South Africa Current world champions
Slide 6: Location of plant
Location of plant Zimbabwe Namibia Botswana Mozambique n ga ala pum M • Maputo (Export Harbour) Middelburg Johannesburg (Factory, administration) (Sales Office) 170km from Johannesburg •Richards Bay (Export Harbour) Durban South Africa (Export Harbour, Sales / Warehouse) Cape Town (Sales Office) Por
Slide 7: Mpumalanga Province
Mpumalanga Province • Population: 4 million • SA is the world’s 6th largest coal producer, most of which is mined in Mpumalanga • Two-thirds of South Africa’s electricity is generated here • Other important industries: - Ferrochrome (Samancor, Xstrata, Ore and Metals) - Highveld Steel and Vanadium (
Slide 8: Aerial view of the production facilities
Aerial view of the production facilities Steel Plant Hot Mill Despatch Plate Finishing Shop Hot A&P Cold A&P Cold Mills Z-Mill3 Z-Mill4 under construction Z-Mill4
Slide 9: Official opening
Official opening Official opening by President Nelson Mandela 6 February 1996
Slide 10: History
History 1966 First stainless produced in Middelburg, part of Rand Mines Group 1979-1981 Expansion to 150 000 tons/year 1991 Columbus Joint Venture formed (IDC, Highveld Steel & Vanadium, Samancor) 1992-1995 Expansion to 500 000 tons/year 2002 Acerinox acquired 64% of Columbus Stainless 2002-2004 Inv
Slide 11: Shareholding structure
Shareholding structure ACERINOX SA 2.9% 24% IDC 76% COLUMBUS STAINLESS (PTY) LTD
Slide 12: Vision Mission Values
Vision Mission Values COLUMBUS STAINLESS VISION ADDING STAINLESS QUALITY TO LIFE MISSION To be a globally competitive producer and preferred supplier of stainless steels OUR VALUES Safety as a way of life Quality in everything we do Practical care for our environment A motivated team with respect fo
Slide 13: Main equipment - Raw Materials
Main equipment - Raw Materials • Open yard with two Goliath cranes • Two basket cars • Sixteen silos for belt-feedable materials • Overhead bunkers in Steel Plant
Slide 14: Liquid ferrochrome transfer
Liquid ferrochrome transfer Decanting of MFC ladle filled with Liquid ferrochrome into EAF transfer ladle
Slide 15: Main equipment – Steel Plant
Main equipment – Steel Plant • Electric Arc Furnace (100t, 90MVA) • Liquid FeCr transfer • AOD converter × 2 (120t) • Rinse station • Continuous caster
Slide 16: Main equipment - Hot Mill
Main equipment - Hot Mill • Slab grinding machines • Reheat furnace (150tons/hour) • Roughing mill • Steckel finishing mill • Down coiler • Plate shear and stacker
Slide 17: Main equipment - Cold Mill
Main equipment - Cold Mill • Coil preparation line × 2 • Batch annealing facilities • A&P line × 2 • Bright annealing line • Cold rolling mills – 4 × Sendzimir, 1 × 4-Hi • Skin pass mill • Coil grind/polish line
Slide 18: Main equipment – Finishing lines
Main equipment – Finishing lines • Cut to length line × 2 • Combination coil and plate processing line • Slitting line × 3 • Coil storage, packing and despatch facilities
Slide 19: Main equipment - Plate Section
Main equipment - Plate Section • Roller hearth annealing furnace • Vertical spray pickling line • Roller levellers • Shear • Plasma cutter × 2
Slide 20: Investment program 2002 - 2010
Investment program 2002 - 2010 Area Amount Steel Plant R223m Hot Mill R163m Cold Mill (2 x Z Mills) R1,825m Utilities R112m Environment R64m IT R14m Total R2,401m
Slide 21: Columbus Stainless production
Columbus Stainless production Annual production, '000t 800 Melting 727 700 Hot rolling 718 682 670 Cold rolling 657 643 639 622 600 564 550 546 539 538 534 528 523 500 520 519 512 490 476 446 439 400 400 395 365 333 330 300 306 283 266 251 200 181 154 132 124 100 0 1998 1999 2000 2001 2002 2003 2004
Slide 22: Sustainability – way of life
Sustainability – way of life Frequency # of accidents 20 180 18 DIFR 160 MIFR 16 DI 140 MI 14 120 12 100 10 80 8 60 6 40 4 2 20 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 as at Aug 2010
Slide 23: Sustainability – way of life
Sustainability – way of life • ISO 14001 • BPEO (Best Practical Environmental Option) • Water management focus • Reduce, Re-use, Recycle * slag * dusts * liquids
Slide 24: Sustainability – way of life
Sustainability – way of life • Training & education * on-site • Community projects * education, sport • HIV / Aids * awareness • MSI (Middelburg Stainless Incubator) * entrepreneurship, employment
Slide 25: Sustainability – way of life
Sustainability – way of life Employment qualifications Diplomas 17% Technical 33% Graduates Grade 12 Education 8% 42%
Slide 26: Stainless products
Stainless products • Austenitic - 304, 321, 316, 309, 310 • Ferritic - 3CR12, 409, 441, 430, 436, 439,444 • Duplex - 2001, 2304, 2205 Ferritics • Coil, slits, sheet, plate - 1000mm – 1524mm wide Austenitics - 0.4 – 6.0mm Cold Rolled - 3.0 – 63.5mm Hot Rolled
Slide 27: Stainless steel types
Stainless steel types Duplex corrosion 2205 corrosion 2304 +Ni, Mo 321 316Ti +Ni, Cr +Ti 2001 Sensi- +Ti tisation sensi- tisation strength corrosion +Mo 316 +Mn, N +Ni 304 pitting +Cr, Ni Austenitic +18Cr properties Fe corrosion 430 oxidation +Cr, Ni 309 dation oxi- 310 +Ti forming +Mn, Ni weld +11C
Slide 28: Sales - 2006 to 2010
0 10000 20000 30000 40000 50000 60000 70000 80000 Tons 2006/01 2006/03 2006/05 2006/07 2006/09 2006/11 2007/01 2007/03 2007/05 2007/07 2007/09 2007/11 2008/01 2008/03 2008/05 2008/07 Sales - 2006 to 2010 2008/09 2008/11 2009/01 2009/03 2009/05 2009/07 2009/09 2009/11 2010/01 2010/03 2010/05 Total Lo
Slide 29: Sales – 2008 to 2010
Sales – 2008 to 2010 30 % 4% 5% 32 % 0.04 % 5% 1% 25 %
Slide 30: South African market 2010 forecast
South African market 2010 forecast Local supply 114,684 tons Local conversion Imports - flat 13,306 tons 151,208 tons - other 23,218 tons Finished product imports 13,900 tons Apparent consumption 165,108 tons SASSDA
Slide 31: Sales - RSA
Sales - RSA General Tanktainer Tubemakers Stockists Domestic Automotive Distributor
Slide 32: Sales – Automotive
Sales – Automotive 22 % 11 % 10 % 1% 80 % 1% 10 % 65 % Component sales Stainless steel sales
Slide 33: Sales – 3CR12
Sales – 3CR12 21 % 22 % 3% 2% 1% 2% 51 %
Slide 34: Key business thrusts
Key business thrusts • Group Excellence Plan * Quality, yields, allocations, DDP * Inventories * Consumables * Delivery costs • €100 / ton savings plan * Raw materials * Services * Manning
Slide 35: Key advantages of Columbus
Key advantages of Columbus • Fully integrated & globally cost competitive production site • Raw material availability (Liquid FeCr) • Still competitive input costs (gasses, power) • Labour skills & competitive costs • RSA potential (including Africa) • Flexible operations
Slide 36: Challenges
Challenges • Power supply capacity in 2011 / 2012 (mitigated by liquid FeCr) • Supply chain efficiency & cost • Growing consumption of stainless steel in Africa
Slide 37: Corporate responsibilities (RSA)
Corporate responsibilities (RSA) • Human Resource development • EE & BBBEE • HIV / Aids
Slide 38: Summary
Summary • Modern, 1 million ton capacity operation • Skilled people • Competitive cost of production • Key South African market & Africa potential • 25% domestic / 75% export sales • Flexible operation (volume, products) • High SHE standards