NLMK Group to build new reheating furnace at NLMK Pennsylvania
NLMK Group has signed an agreement for the purchase of the core process equipment for the construction of a new walking-beam reheating furnace to streamline the slab heating process at NLMK Pennsylvania (Farrell, PA, USA). The new furnace will replace 3 outdated pusher-type furnaces currently operational at the facility.
The reheating furnace, which will have a capacity of 395 tonne per hour or around 1.7 million tonnes per year, pre-heats steel slabs prior to further rolling at the hot strip mill. The project will significantly increase the quality of finished steel products due to the transition to a more advanced technology. It will also enable lower energy consumption and minimize environmental impact.
The project also includes the construction of a warehouse for slabs supplied by Novolipetsk.
Bob Miller, NLMK USA CEO, said: “The construction of the new furnace is a major project for NLMK Pennsylvania aimed to bolster the market presence of the company. It will improve the quality of hot-rolled steel by eliminating slab surface defects, which are characteristic of pusher-type furnaces. In addition there will be an approximate 45% decrease in natural gas consumption as well as a reduced emission rate”.
Construction and installation works are planned for Q3 2017; and the furnace is to become operational in 2018. Installation of the new equipment will not impact upon the facility’s production plan.
Project capex is estimated at $80 million. At current prices, the project will increase EBITDA by $29 million per year (for reference, NLMK USA's EBITDA for 9M 2016 was $144 million).
NLMK Pennsylvania is the biggest plant in the NLMK USA division. The plant produces carbon and alloyed steel, including hot-rolled, cold-rolled and full hard steel. The facility has a production capacity of 1.7 million tonnes of hot-rolled steel per year. The majority of NLMK Pennsylvania’s products are produced from steel slabs supplied by Novolipetsk.
Sharon Coating, located nearby, uses NLMK Pennsylvania's rolled steel to produce a range of hot-dip galvanized steels that includes extra-deep drawing, high-strength, and dual phase steels.
NLMK Pennsylvania steel is used in machine building, railway equipment and pipe manufacturing and the mining, energy and space industries, and service centres.
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