Tata Steel Limited · NSE:TATASTEEL
Tata Steel — Investor Presentation (April 2011)
136 slides from Tata Steel's investor presentation, Apr 18, 2011
Slide 1: Tata Steel in Europe Management Presentations
Analyst Visit: 18 to 21 April 2011 Tata Steel in Europe Management Presentations 1
Slide 2: Our Strategy in Europe
Dr. Karl-Ulrich Köhler Tata Steel Our Strategy in Europe
Slide 3: Tata Steel Group: Diversified Global Steel Player
Tata Steel Group: Diversified Global Steel Player • One of the flagship companies of the Tata Group and one of the world’s top ten steel companies in terms of crude steel production volume • One of the most geographically diversified steel producers with crude steel capacity of approximately 28 Mn t
Slide 4: Tata Steel in Europe
Tata Steel in Europe • In 2007 Tata Steel Limited acquired Corus Group plc • On 27 September 2010 Corus rebranded to Tata Steel • Sectors: Automotive, Construction, Lifting & Excavating, Energy & Power, Packaging, Rail, and Industry • Crude steel capacity of 18 mtpa, • The 2nd largest steel producer
Slide 5: Our context
Our context 130 250 Spot CIF China (63.5% Fe) 120 Contract (FOB Brazil) 200 110 150 100 100 90 80 Germany - machinery & equipment 50 UK - machinery & equipment Iron Ore Fines EU - Motor Vehicles 70 US$/tonne Steel using sector output 0 (index 2005=100) Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-1
Slide 6: Strategies for a new brand in the European Market
Strategies for a new brand in the European Market Where do we stand today? Confidence restored • Refinancing • Rebranding • New business model 6
Slide 7: Moving towards Customer focus
Strategies for a new brand in the European Market Moving towards Customer focus Confidence restored • Refinancing • Rebranding • New business model Customer Focus • One face to the customer • Sector focus • Reliability and trust • Partner for solutions • Full scope supplier • Innovating together 7
Slide 8: Enabling our customers to perform in their markets
Enabling our customers to perform in their markets Customer focus, Market sector teams, Serving our home market Picture of Lifting & Excavating sector Customer sectors Service Home market Understanding customer Dedication & commitment A European perspective needs & challenges on our home market Ease
Slide 9: Key sectors
Key sectors Construction 20% Automotive 35% Lifting & Excavating 40% Energy & Power Other key sectors 20% 12% 5% 8% Current 2015/16 9
Slide 10: Lifting & Excavating
Lifting & Excavating The market • small number of international players with global footprints • Highly steel intensive sector • Complex supply chain • Significant growth forecast: • Fuelled by commodity extraction, construction demand and industrial growth in developing markets • Demand growth by 3
Slide 11: Lifting & Excavating
Lifting & Excavating Our offering Market Share growth • New sector focused approach centres on the customers’ needs 15% 20% • Stronger partnership with customers to support their globalisation ambitions • Simplification of the purchasing process. Fewer points of contact. Doing business becomes easie
Slide 12: Moving towards customer focus with technological innovation
Strategies for a new brand in the European Market Moving towards customer focus with technological innovation Technological Innovation • Process innovation • Product innovation Confidence restored • The right steels and grades are available to our • Refinancing customers • Rebranding • Creating the
Slide 13: Technological innovation
Technological innovation Unique global R&D for process and product development Picture of R&D facility in Automotive picture of IJmuiden developing products (Jaap Piso presentation) R&D Process Innovation Product Development 5 global R&D facilities Securing the future Increasing customer 4 in Europe
Slide 14: Excellent customer performance by operational excellence
Strategies for a new brand in the European Market Excellent customer performance by operational excellence Technological Innovation Operational • Process innovation • Product innovation Excellence Confidence restored • The right steels and grades are available to our • Optimise Supply Chain customer
Slide 15: Operational Excellence
Operational Excellence Increase reliability to the maximum Replace picture assets Assets Flexible working People Asset performance Flexible workforce & Partnerships with improvement; quality, working patterns universities reliability, cost Quick response to delight Academy & training Asset portfolio
Slide 16: Operational excellence with cost leadership
Strategies for a new brand in the European Market Operational excellence with cost leadership Technological Innovation Operational • Process innovation • Product innovation Excellence Confidence restored • The right steels and grades are available to our • Optimise Supply Chain customers • Reliabili
Slide 17: Cost leadership
Cost leadership Flexible working model only way to create value for our customers in Europe Picture of raw material Chart of capex plan for projects next 5 years showing ratio of cat 1 and 2 to 3 and 4. Gerard Glas OG gas collection First steps… Improving position… Supported by…. IJmuiden – world cl
Slide 18: Tata Steel in Europe
Tata Steel in Europe Customer Understanding customer needs and challenges and Focus enabling them to perform in their markets Operational Technological Organising for success Excellence Innovation and creating excellent value by continuous improvement Cost Completing our product Leadership offering
Slide 19: Tata Steel Group vision
The Tata Steel Group vision is to be the world steel industry benchmark for value creation and corporate citizenship • One integrated, customer-driven company • Dedicated to understanding our customer’s business • Assisting our customers to perform in their market • Working and growing in partnershi
Slide 20: Research, Development & Technology
Debashish Bhattacharjee Research, Development & Technology
Slide 21: Vision
Vision “We maximise value creation for TSG by creating stakeholder delight through world class differentiating research” 21
Slide 22: RD&T Sites
RD&T Sites United Kingdom The Netherlands India IJmuiden Teesside Jamshedpur Rotherham Jamshedpur Coventry 22
Slide 23: RD&T Sites
RD&T Sites IJmuiden Technology Centre Teesside Technology Centre Swinden Technology Centre Tata Steel R&D Jamshedpur Two small satellites: Automotive Engineering Group in Warwick 23 ECM2 in Port Talbot
Slide 24: People
People % Employees on sites RTG IND GIPS NL AEG UK 2% 1% 2% SS IND 22% IJTC NL 37% R&D IND 15% TTC UK STC UK 7% 14% 24
Slide 25: People (EU)
People (EU) % PhD of Researchers PhD 39% Research without PhD 61% Age distribution in EU 300 250 # of employees 200 NL 150 UK 100 50 0 20-34 35-44 45-54 55+ Age category 25
Slide 26: Organisation
Organisation Group Director RD&T HR Director Finance Knowledge & Library Services Intellectual Property Chief Director Products & Director Director Automotive Chief Director Processes Research& Dev Product Applications Programmes & Engineering Global Programmes Scientific Services 26
Slide 27: Process Research, areas of work
Process Research, areas of work • Ironmaking • Steelmaking and Casting • Ceramics Research Centre • Rolling Metal Strip • Long Product Rolling High Temperature Innovation Centre Teesside Technology Centre 27
Slide 28: Product & Product Application Research, areas of work
Product & Product Application Research, areas of work Product • Steel Metallurgy • Coated Products Product Applications: • Automotive • Industrial & Construction • Packaging Thermo mechanical treatment simulator IJmuiden technology Center 28
Slide 29: Some examples of trial facilities & equipment
Some examples of trial facilities & equipment Scanning Welding Multi mill Microscopy Pilot Packaging line 29
Slide 30: Recent successes
Recent successes Displace competitor’s product Through strain analysis on gridded component, established DX57+Z grade from IJmuiden at Ford. 30
Slide 31: Examples of Project wins across the Group
Examples of Project wins across the Group • Hydroforming for Tata Nano • Automatic Surface inspection 31
Slide 32: Hydroforming for Tata Nano
Hydroforming for Tata Nano hydroformed Major strain Material: S315 MC Hydroforming experience in Europe used for designing hydroformed parts in the Tata Nano 32
Slide 33: Automatic surface inspection
Automatic surface inspection Below the before and after photo’s Top side (before) Top side(after) Work on automatic surface inspection system in Jamshedpur, following work done at IJmuiden Bottom side (before) Bottom side (after) 33
Slide 34: Break through technologies – the challenge
Break through technologies – the challenge • Scarcity ─ Complete utilization of iron ore ─ Reducing ash in coal • Environment ─ Making of steel contributes 4-6% of man made CO2 ─ Blast furnaces are responsible for 80% of the emissions • Market • Yield and efficiency 34
Slide 35: Examples of break through in incubation
Examples of break through in incubation • 20% reduction in CO2 emission in ironmaking – HISARNA • Photo voltaic • SBEC 35
Slide 36: HISARNA technology
HISARNA technology Comparison with the BF route Blast furnace sinter Iron ore coke Liquid iron coal 36
Slide 37: HISARNA technology
HISARNA technology Comparison with the BF route Blast furnace sinter Iron ore coke coal Liquid iron 37
Slide 38: HISARNA technology Key features
HISARNA technology Key features • Ore fines are molten in a cyclone reactor • Granular coal is directly injected in the smelter • The use of pure oxygen results in nitrogen free topgas • The combination with CCS is easier to achieve 38
Slide 39: Pilot plant at Tata Steel in IJmuiden
Pilot plant at Tata Steel in IJmuiden • The HISARNA pilot plant is in IJmuiden, starting in first half of April 2011 • The capacity is 8 t/h hot metal • The expected benefits of the process will be experimentally validated 39
Slide 40: Photo Voltaic
Photo Voltaic “We will use the building envelope to save, produce, store and export energy, cut CO2 and address worldwide sustainability issues using functional coatings.” Significant commitment with industrial, academic and government partners a) PV ACCELERATOR - £11m over 3 Years b) SPECIFIC - £20
Slide 41: Photo Voltaic
Photo Voltaic Counter Electrode Light ( photons ) - Transparent films and coatings allow light through - Completes electrical circuit and prevents moisture ingress Diffusion barrier Counter electrode Dye Sensitised Solar Cell (“filling”) Electrolyte - Dye + absorber layer provides the electrical dri
Slide 42: Market: Automotive
Market: Automotive • Increasing customer offerings • Problem solving service 42
Slide 43: Collaborations
Collaborations RWTH Aachen Fraunhofer Leuven Metz TU Delft, TU Eindhoven, UTwente Cambridge Sheffield Swansea Imperial Oxford MIT McGill Carnegie ITT Kanpur More than 100 ITT Chennai, collaborations with IISC Bangalore ITT Kharagpur institutes and Monash universities across Deakin the globe JKMRC 43
Slide 44: The IJmuiden site
Dook van den Boer The IJmuiden site At the heart of our Strip Products Mainland Europe business
Slide 45: Tata Steel in IJmuiden
Tata Steel in IJmuiden • Top producer of steel in Europa • 9.300 FTEs, 450 research staff • approximately 7 million tons of steel in 2011 • Integrated production process • Much attention for the environment • Environment, employment and knowledge • € 0,5 billion spendings in the region • Tradition o
Slide 46: Tata Steel In Europe
Tata Steel In Europe • European manufacturing base to supply demanding markets: • Automotive • Construction • Energy and Power • Lifting and Excavating • Packaging • Engineering, Shipbuilding, Defence & Security • Rail, Consumer Goods, Aerospace • Sales offices and service centres in close to 50 cou
Slide 47: Transforming to meet customer requirements
Tata Steel Transforming to meet customer requirements Automotive Strip Products Mainland Europe Construction Energy and Power Supply Strip Products UK Lifting and Excavating Chain Packaging Long Products Rail Europe Industry Strip/Long Support Functions • Implementation 2010 – 2011: • One integrated
Slide 48: Innovation challenges for Tata
Innovation challenges for Tata, linked 1-to-1 to the “Innovation Union” strategy for the flagship projects • From commodities to high value products and custom-made solutions (Smart Growth) • Klantgerichte toepassingen, via bijvoorbeeld Early Vendor Involvement (EVI) • Hoogwaardige producten bijv. u
Slide 49: Innovation challenges for Tata
Innovation challenges for Tata, linked 1-to-1 to the “Innovation Union” strategy for the flagship projects • Resource efficiency and raw materials shortage– also for Year 2001 2010 steel products (Sustainable Growth) AC 10% 12% • Use of wider selection of Iron Ore and coking coal • Effective use of
Slide 50: M2i Materials Innovation Institute
M2i Materials Innovation Institute • Knowledge Platform for Dutch industry and knowledge institutions in the field of materials (including SMEs) • Tata Steel is a major partner of M2i (both administrative support, content (industrial advisory board), and daily guidance) • Binding force between mater
Slide 51: Innovative sustainable product development
Innovative sustainable product development • PPP Green Car • Advanced high strength steels(stronger and lighter) • PPP Energy Efficient Buildings • Lighter and stronger sheet piling • Insulating sandwichpanels 80% • New materials for storing of energy in walls • Energy generation through solar cells
Slide 52: FP6 ULCOS – HIsarna
FP6 ULCOS – HIsarna (pilot project in IJmuiden) • A significant new process concept that the direct use of powdered raw materials permits. Coke oven and ore agglomeration steps no longer necessary • Iron ore is melted in the blast cyclone reactor furnace sinter • Fine coal is injected directly Iron
Slide 53: Strip Products UK
Jon Ferriman Strip Products UK Value creation with customers and cost flexibility 53
Slide 54: Strip Products UK within Tata Steel
Strip Products UK within Tata Steel Tata Steel Group Tata Steel Limited Tata Steel Europe Long Strip Strip Tata Steel Tata Steel NatSteel Products Speciality Products Products India Thailand Asia Europe Businesses UK Hub MLE Hub Hub Support Functions & Supply Chain Sales, Marketing & Distribution 54
Slide 55: Strip Products UK: Business Management Team
Strip Products UK: Business Management Team Uday Chaturvedi Chief Technical Officer Jon Ferriman Hub Director Strip Products UK Mike Wixey Ian Hobson Ian Phillips Steve George Mark Davies Director, Head of Health, Safety Engineering Director Technical Director Director, Heavy End Mills & internal Lo
Slide 56: A brief history of Strip Products UK
A brief history of Strip Products UK • 1837 Port Talbot opened – named after principal sponsor of the dock, Christopher Talbot of Margam • 1923 First expansion completed – known as “Margam Works” • 1962 Llanwern works opens • 1967 British Steel Corporation formed – Nationalisation of 14 steel compan
Slide 57: Strip Products UK overview
Strip Products UK overview • Producer of strip steel for UK and European markets • Manufacturing sites in Port Talbot and Llanwern • Capacity to produce 4.8 million tonnes of product per year • Approximately 5000 employees • Annual turnover of £1.7 billion • Iron and steel production, hot rolling, c
Slide 58: A vision to create a sustainable steel industry in Wales
A vision to create a sustainable steel industry in Wales • Our “Journey” change programme • Step change in safety culture and performance • Weathering the Storm • 5000 ideas, £200m saved, flexible working model • We have earned the right to investment • BOS Gas recovery scheme • BF4 rebuild • Ambiti
Slide 59: Strip Products UK Products and Markets 09-10
Strip Products UK Products and Markets 09-10 Sales by product Sales by market (tonnes) External UK 20% External MLE 11% External ROW 1% Hot Rolled 55% Cold Rolled 28 % Coated 16% Tata UK 56% Tata MLE 12% Tata Steel in Europe has approximately 50 % share of the UK market and also delivers to selectiv
Slide 60: Sectors and Applications
Sectors and Applications Finished coils Sectors & applications Construction Packaging Tubes Automotive Consumer Appliances Radiators Electronics General engineering 60
Slide 61: Llanwern Site
Jon Ferriman Llanwern Site Value creation with customers and cost flexibility
Slide 62: Llanwern steelworks
Llanwern steelworks • Built in early 1960’s by Richard Thomas and Baldwin Heavy End 2 Coke Ovens 3 Blast Furnaces Hot Strip Mill 2 Casters Pickle Lines Cold Mill Galvanising Coil Inspection Lines Site 4 Miles by 2 Miles 62
Slide 63: Llanwern steelworks
Llanwern steelworks • Known as RTB, then Spencer works and later Llanwern works • In full production employed around 10,000 people • It was the first oxygen-blown integrated steelworks in Britain when it opened in 1962 • Rail links to main-lines and good infrastructure to road and sea • Reduced reso
Slide 64: Current configuration
Current configuration • Hot Strip Mill • 2 Pickle Lines • Cold Mill • Zodiac • Packaging & Distribution 64
Slide 65: Llanwern: Steel park philosophy
Llanwern: Steel park philosophy • Construction & Engineering Products • MSS • Distribution UK • Slit Centre • Central Engineering Workshops • Central headquarters for: • Commercial • Supply chain • Accounts • SMT • Aim to bring other satellite units on to Llanwern site. 65
Slide 66: Llanwern manufacturing: Cost leadership
Llanwern manufacturing: Cost leadership • Prior to Weathering the Storm: 1000 employees • Base of 580 employees flexed up to 715 at present • Lean structure Core • Flexible and highly trained workforce • Flexible plant model Agency • Challenging product mix – HS, Durbar, DP grades Contractors • Only
Slide 67: Our Journey change programme
Andy Dunbar Our “Journey” change programme
Slide 68: 2005: The Strip Products UK change begins
2005: The Strip Products UK change begins • “The Journey” • launched in September 2005 as an organisation cultural change programme • born as a response to tragic events but has became an enabler to everything we do 68
Slide 69: The Strip Products UK Change model
The Strip Products UK Change model “The best way to predict the future is to go and create it” 69
Slide 70: Strip Products UK: The Journey
Strip Products UK: The Journey 2005 Engagement Recognition of ‘As-is’ and ‘Ideal’ Bicycle projects Business Executive Management Team committee • Recognising the leadership challenge • Engaging our people • Who we are (“as is”) and who we want to be (“to be”) Top 100 • Learning what it would mean fo
Slide 71: Our change in style
Our change in style Our style 2005: ‘as is’ Duck the issues –avoid uncomfortable situations Fail to recognise good; quick to punish Status and influence through being critical Being responsive to the demands of superiors at any cost Centralised decisions – people tend to do only what they are told t
Slide 72: Our change in style
Our change in style The style we aspired to: ‘to be’ Involve others in decisions that affect them Resolve conflict constructively – with respect Positive recognition and reward Concerned about personal growth and well being Do even the simplest tasks well Challenging unacceptable behaviours and stan
Slide 73: Strip Products UK: The Journey
Strip Products UK: The Journey 2005 2006 Engagement Standards, Recognition of ‘As-is’ and ‘Ideal’ Liberty STEP 2 behaviours Bicycle projects Events x3 Demonstrate Performance ‘VALUES’ potential improvements • Using the energy Business Executive Management Team committee • Getting people involved All
Slide 74: Strip Products UK: The Journey
Strip Products UK: The Journey 2005 2006 2007 Engagement Standards, Recognition of ‘As-is’ and ‘Ideal’ Liberty STEP 2 behaviours Values / Behaviours Embed our Bicycle projects Events x3 Demonstrate Performance Q1 Rollout to ALL Values ‘VALUES’ potential improvements Business Executive Goals alignmen
Slide 75: Goals, Values and Behaviours
Goals, Values and Behaviours Our goals define the ‘what’ Our values define the ‘how’ 75
Slide 76: Values & behaviours 2007
Values & behaviours 2007 • Values proposal rolled out to cross-section of 500 employees • 500 employees developed the ‘desired behaviour’ examples • Values and rules booklet (the how) issued • To all employees • Cover note. Summary and process. • 65 engagement events • 5000 employees and contractors
Slide 77: Goals translation 2007 (OGSM)
Goals translation 2007 (OGSM) • Developed the business mission, vision and goals • Vision: “To create a sustainable steel industry in Wales” • Bottom-up process • Areas and functions developed goals • ‘Blue book’ (the what) • containing our values and goals to level 4 for all 5200 employees. • An ea
Slide 78: Strip Products UK: Our Journey
Strip Products UK: Our Journey 2005 2006 2007 2008 Engagement Standards, Recognition of ‘As-is’ and ‘Ideal’ Liberty Behaviours, Values / Behaviours Embed our Bicycle projects Events x3 Performance, Q1 Rollout to ALL Values ‘VALUES’ Improvements Business Executive Goals alignment Achieve Stretching O
Slide 79: Early achievements concurrent with The Journey
Early achievements concurrent with The Journey • Safety • A leap forward in our safety performance • 5,000 sign up to our values • Safety teams, making a real difference • 1,000 days of no LTA at Aluminised • Blast Furnace re-organisation pilot • Customers: Ford Q1 award • Recruitment, across the bo
Slide 80: Strip Products UK: Change Behavioural Model
Strip Products UK: Change Behavioural Model Higher Purpose To create a sustainable Mission steel industry in Wales Values belief Educate Capability Misunderstood Misaligned Behaviour Aligned Recognition Malicious Intolerance Environment 80
Slide 81: Strip Products UK: Change programme
Strip Products UK: Change programme 81
Slide 82: Charles Darwin quote on change
“It’s not the strongest species that survive, nor the most intelligent, but the ones who are most responsive to change”. Charles Darwin 82
Slide 83: The Zodiac Line
Jon Ferriman The Zodiac Line Value creation with customers and cost flexibility
Slide 84: Zinc & Other Developments In Alloy Coatings ZODIAC
Zinc & Other Developments In Alloy Coatings ZODIAC EXIT TRIMMER TEMPER MILL ZINC POT & ANNEALING ENTRY PASSIVATION & TENSION COATING FURNACE CLEANER OILER INSPECTION LEVELLER CONTROL 84
Slide 85: Operational Excellence
Operational Excellence Process performance measured by OEE OEE and Cost are the 100 OEE MONTHLY two drivers for all 95 89.45 93.98 92.45 91.4 90.5 89.31 94.05 90 88.53 86.99 84.23 91.07 review meetings 85 77.35 90.01 79.6 84.82 80 82.19 76.06 73.65 74.63 80.8 75 70 65 60 55 TA R A CT 50 A P R M A Y
Slide 86: Supply Excellence
Supply Excellence • Supply Chain process developments • £80M investment to re-engineer Europe-wide supply-chain order planning & fulfilment processes • Through Supply Chain efficiencies • Enhanced order fulfillment processes ─ decoupling of semi finished products at appropriate intervention points i
Slide 87: Customer Focus
Customer Focus • Product portfolio progression • Development of value-creating product solutions in line with the market-driven strategic product roadmaps ─ Super Bainite: Armour-plating applications ─ High silicon steels for power industry ─ High carbon steels for automotive & construction industri
Slide 88: Tata Steel Construction Products
Sam McCloy Tata Steel Construction Products Business Overview
Slide 89: Tata Steel Construction Products About Us
Tata Steel Construction Products About Us • 90 employees operating within Tata Steel Distribution; one of three new operations set up on the Llanwern site utilising excess warehousing and logistics capability • Specialists in the production of cold roll formed sections with over 50 years experience
Slide 90: Market Sector & Product Range Construction
Market Sector & Product Range Construction • A range of roll formed products for the construction industry – used for their combination of low cost and high structural performance • Steel Floor decking – used in conjunction with in-situ concrete to form composite flooring for large residential and c
Slide 91: Market Sector & Product Range Highways
Market Sector & Product Range Highways • 50 years of production of Highway vehicle restraint systems • Completely re-engineered to European Standard in 2004 • State-of-the art computer simulation • Fully crash tested • Installed via specialist companies to ensure compliance to standard • Intention t
Slide 92: Market Sector & Product Range Energy
Market Sector & Product range Energy • Low cost & high performance structure for mounting solar PV modules • High strength steel, high performance galvanised coating for long service life • Supplied in kit form for local assembly and installation • Projects supplied in Spain, Germany, Bulgaria, Reun
Slide 93: New Product Development Loadsafe Platform
New Product Development Loadsafe Platform • Developed in-house in response to a number of accidents caused to employees and contractors working on the back of vehicles • Allows safe access to secure loads without accessing the vehicle • 5th generation product now ready for external commercialisation
Slide 94: Supporting Team and facilities
Supporting Team and facilities Precision tool manufacture • Roll design facilities utilising CAD/CAM and CNC machinery • State of the art roll forming simulation technology Fabrications Unit • Our fully equipped steel fabrications facility can manufacture a range of bespoke and standard products, ex
Slide 95: Orb Works: The Cogent Power business
Jim Naylor Orb Works: The Cogent Power business A speciality business with customer product offering
Slide 96: Contents
Contents The Units Electrical Steel Products Markets 96
Slide 97: Cogent Business Dimensions 2010/11
Cogent Business Dimensions 2010/11 Surahammar Surahammar, Sweden NO Electrical Steel Employees 170 CPI Orb Burlington, Ontario Newport, S Wales Transformer core GO Electrical Steel manufacturing/slitting centre Employees 401 Employees 200 97
Slide 98: Cogent Power Orb Electrical Steels (Wales)
Cogent Power Orb Electrical Steels (Wales) • 1898 - W R Lysaught Company starts at Orb • 1909 – Orb licensed to produce Silicon iron • 1947 - Production of Silicon GO & NO steel starts at Orb • 2008 – Production of NO stopped after 61 years Site focuses on GO production • 2008 – Capacity of GO incre
Slide 99: Orb Grain Oriented Generic Material Flows
Orb Grain Oriented Generic Material Flows Cold Reduction Side Trimming Annealing & De-scaling Anneal / Cool De-scaling / Pickling Hot Rolled Coil Decarburisng Anneal High Temperature Coil Annealing Furnace Inner Cover Coil Preheat Decarburising anneal Coat & cure Stalk Base Plate Thermal Flattening
Slide 100: Cogent Power Surahammar Bruks (Sweden)
Cogent Power Surahammar Bruks (Sweden) • 1627 - A “Crown Hammer” in Surahammar • 1897 - First Swedish car is made in Surahammar • 1916 - ASEA acquires Surahammar Bruks • 1917 – First delivery of Hot Rolled electrical steel • 1959 – Production of cold rolled grain oriented steel starts • 1993 – Produ
Slide 101: Surahammar Non-Oriented Generic Material Flows
Surahammar Non-Oriented Generic Material Flows Cold Reduction Side Trimming Annealing & De-scaling Anneal / Cool De-scaling / Pickling Hot Rolled Coil Decarburisng Anneal Slitter Preheat Decarburising anneal Coat & cure Slitter Tension Unit 101
Slide 102: Cogent Power Inc (Canada)
Cogent Power Cogent Power Inc (Canada) • 1970 - Cogent Power Inc. (formerly CorMag Inc) begins operation. • 1993 - CorMag moves its operations into a larger 80,000 square foot facility. • 1996 – CorMag installed and began operation of a new line to slit premium steels including Sura Electrical Steel
Slide 103: Strong Tradition of Continuous Improvement
Strong Tradition of “Continuous Improvement” • GE Global Ecomagination Leadership award 2008 • American Manufacturing Excellence award 2010 for Canada given its “outstanding performance in continuous improvement”. • CEO Manufacturing Excellence award 2010 • Case studies in Books on Lean manufacturin
Slide 104: Contents
Contents The Units Electrical Steel Products Markets 104
Slide 105: Electrical Steels
Electrical Steels • Form the magnetic circuit in electrical machines • Transformers, Generators, Ballasts, & Motors • Easy to ‘’magnetise’’ (permeability) • Low energy loss during magnetisation • Sold on magnetic properties • Total power loss sets the quality (lower the better) • Mechanical values c
Slide 106: Non Oriented (Surahammar)
Non Oriented (Surahammar) • Non Oriented (0.2% to 3.3%Si) • Loss levels 8W/kg to 2W/kg ─ High Si Hrc (>2.4% Si). Used for best grades and thin gauge (<0.27mm), ie generators ─ Mid Si (1.8-2.4%). Used for intermediate grades ie ballasts, power steering motors, large industrial motors ─ Low Si (0.2%-1
Slide 107: Grain Oriented (Orb)
Grain Oriented (Orb) • Grain Oriented (all 3.0-3.3%Si) • 2 types CGO and HiB ─ Both have very good magnetic properties in rolling direction (losses of 1W/kg -0.70 W/kg) ─ HiB has better oriented “Goss” grains ─ Grain size is huge, 5-20mm ─ Differentiation between CGO and HiB is permeability (amount
Slide 108: Electrical Steel in Use
Electrical Steel in Use Generators Power Transformers Distribution Transformers Motors High Si (some CGO) Laser DR, HiB CGO (also High Si NO) Mid/Low Si NO (also CGO) 108
Slide 109: Through Manufacturing - Cogent Power Inc
Through Manufacturing - Cogent Power Inc • Cogent Power Inc. is the North American leader in the supply of transformer cores for distribution, power and specialty magnetic applications. • High level technical strength and service approach has enabled strong growth and market development. Process vol
Slide 110: Contents
Contents The Units Electrical Steel Products Markets 110
Slide 111: Cogent Customer Base
Cogent Customer Base • Top 20 ABB Siemens Areva Crompton Greaves Imefy LTC Enpay FKI Emerson Alstom Kienle & Spiess Hidria Rotomatika ATB OJSC Danaher General Electric Camtran Moloney Electric Acme Electric Delta Star Inc 111
Slide 112: The Port Talbot site
Uday Chaturvedi The Port Talbot site At the heart of our Strip Products UK business
Slide 113: The Port Talbot site today
The Port Talbot site today • The main site for our Strip Products UK steelmaking hub • Benefits from Deep water harbour location • Integrated Steelmaking facilities with added value product range capability • Packaging Steels • Automotive Exposed panels • Advanced High Strength Steels • Organisation
Slide 114: Major facilities – Port Talbot
Major facilities – Port Talbot Facilities Equipment Statistics Materials Handling Deep water harbour 3 grab loaders / 160kt max vessel capacity Iron making • Coke ovens • 1 battery containing 84 ovens • Sinter plant • 1 Lurgi, 344m2 strand – 42t/hr • Blast Furnaces • 2 (No’s 4&5) 10.8m hearth diamet
Slide 115: Port Talbot Site
Port Talbot Site Sinter Plant Harbour Stockyards Blast Furnaces Power Plant Steel Plant Hot Mill Coke Ovens Cold Mill CAPL 115
Slide 116: Tata Steel in Europe
Tata Steel in Europe Understanding customer needs and challenges and enabling them to perform in their markets Customer Focus Organising for success and creating excellent value by continuous improvement Operational Technological Excellence Innovation Cost Completing our product Leadership offering
Slide 117: Strip Products UK Products and Markets 09-10
Strip Products UK Products and Markets 09-10 Sales by product Sales by market (tonnes) External UK 20% External MLE 11% External ROW 1% Hot Rolled 55% Cold Rolled 28 % Coated 16% Tata UK 56% Tata MLE 12% Tata Steel in Europe has approximately 50 % share of the UK market and also delivers to selectiv
Slide 118: Deliveries by Market Area
Deliveries by Market Area Strip Products UK Hub 1400 1200 Key Sectors served by Strip UK Deliveries (kt) 183 154 228 185 1000 79 176 134 • External: Automotive, Industry 218 86 225 205 214 224 Strip 800 121 90 191 206 201 123 173 163 158 171 • Via Distribution:, Lifting & 600 159 Excavating, Constru
Slide 119: Cost Leadership - Recent efforts to improve costs base
Cost Leadership - Recent efforts to improve costs base and market competitiveness • BOS Gas Recovery system to reduce our environmental impact and improve cost competitiveness • Installation of Variable Speed drives • Zodiac Pot development to enable Exposed Auto Panel manufacture • HSM capability d
Slide 120: Cost Leadership - Working Better
Cost Leadership - Working Better • Steelmaking Cost reduction • Appropriate Product Design in Supply Chain – reducing reliance in high cost alloys • Grade rationalisation – reducing complexity and set up costs • Through supply chain review – eliminating upstream / downstream waste • Increased piece
Slide 121: Cost Competitiveness Future opportunity Margam Mine
Cost Competitiveness Future opportunity Margam Mine • Geological study completed. Final report awaited • Mine plan and mine schedule complete • Measured and Inferred resource of 37Mt • Extension potential of a further 30Mt • Financial evaluation ongoing • Coal Value in Use benefit of £5/tonne Hot Me
Slide 122: Cost Competitiveness - Blast Furnace No4 Development
Cost Competitiveness - Blast Furnace No4 Development • Blast Furnace No4 has achieved 30Mt of production since its 1992 rebuild • Second highest productivity furnace in Europe (15 kt/m3) - world class results • Typical performance of relined Blast Furnaces are between 12-14 kt/m3 European Blast Furn
Slide 123: Rebuild Project Scope
Rebuild Project Scope Enabling Cost Competitive Iron make • New furnace electrical and process control systems • New modern closed circuit cooling system • New Paul Wurth gearbox • Casthouse - Clay guns, drills, main trough and manipulators New stove domes, burners New Gas Plant with the and chequer
Slide 124: Operational Excellence - Engineering is Fundamental
Operational Excellence - Engineering is Fundamental for TSE to be competitive in the Global Steel Market Engineering Standards have major impact on process capability and Product Quality & product quality Consistency Cost base reduction is essential for TSE to be Improved availability competitive in
Slide 125: TSE Engineering Excellence Programme
TSE Engineering Excellence Programme • TSE Wide programme aimed at improving safety, performance & cost by implementing ‘one company’ best practice standards and processes • 5 year cost reduction target of £120m. for TSE Delivering Engineering Excellence 2010 Key Improvement Themes 2014 2015 As Is T
Slide 126: Operational Excellence - Results
Operational Excellence - Results Caster Prime Slab Yield Low Cost Carbon Source Usage Good Good 98 35 30 97.5 25 97 20 % % 96.5 15 96 10 95.5 5 95 0 2005 2006 2007 2008/9 2009/10 2005 2006 2007 2008/9 2009/10 Blast Furnace GCI Rates PT HRP Electricity Usage Good Good 180 140 170 130 160 120 150 110
Slide 127: New Products being developed to meet Customer Needs
New Products being developed to meet Customer Needs Overview of TSE NPD phase gate – February 2011 Selection Delivery Concept Attractiveness Gate 0- Filter Development & Piloting Launch & Commercialisation Gate 3- Post Launch Review Gate 1 -Business case approval. Gate 2-Launch decision (12 months a
Slide 128: Advanced High Strength Steel – DP600
Advanced High Strength Steel – DP600 A new technique developed by Zodiac (Patent Applied) • Capability to produce Advanced High strength steels from zodiac to complete our product package to automotive industry. • A unique technique developed for zodiac (patent applied) in a very short time with low
Slide 129: Strip Products UK Quality Management Approvals and Accreditations
Strip Products UK Quality Management Approvals and Accreditations • ISO 9001:2008, “Quality management systems – Requirements” and ISO / TS 16949 : 2009 for automotive production. • Construction Products Directive 89 /106/ EEC which allows CE mark application on EN 10025 - 2004 Hot Rolled Structural
Slide 130: Health and Safety Management System
Operational excellence Health and Safety Management System 11 Leadership and accountability 12 Competent people 13 Hazard identification 14 Compliance assurance Policy objective 15 Health and safety planning 16 Risk management Planning 17 Asset management 18 Management of change Implementation 19 Ma
Slide 131: Leadership Safety and health excellence programmes
Leadership Safety and health excellence programmes • Focus on leadership in health and safety: “Felt leadership” • Start in 2005: ~ 350 group senior managers • Follow up by delivery in dedicated areas: • Steelmaking, ironmaking – multiple sites • Other areas: mills , services, distribution • Local v
Slide 132: Health & Safety Results 2010/11 H1
Health & Safety Results 2010/11 H1 Lost time accidents Frequency rate Key Health & Safety activities Combined - employees and contractors • Focus on leadership through Leadsafe and felt 10 8.38 leadership training remains. 8 5.31 6 4.36 4 • 650 people through Felt leadership in 10/11 2 1.52 1.59 0.6
Slide 133: Our People
Our People • To achieve world class performance, our highly trained, educated and skilled workforce are key. • Our employees are supported through their careers, with operational training, modern apprenticeships, and higher education. • The Engineering Doctorate Scheme run in conjunction with the Un
Slide 134: Our Environment
Our Environment • We are committed to environmental care and protection. • The impact of our operations and products are minimised through the adoption of sustainable practices and continuous improvement. • We are accredited to ISO 14001, the international environmental management standard. • We use
Slide 135: Our Community
Our Community • Being a good neighbour and part of the local community is important to Tata Steel. • Tata Steel supports five core activities; Health & Wellbeing, Education and Learning, Safety Awareness, Diversity, and Environment. • Tata Steel actively engages with local community events and activ
Slide 136: Thank You
ql TATA Thank You TATA STEEL