stahlmarkt 09 | 2019

ISSN 0178-6571
steel market
01
Information on the steel trade,
the steel industry and steel processing
international
October 2019
gegründet 1969
European Steel Distributor
Visit us at the Blechexpo, Stuttgart
5. - 8. November 2019, Hall 10, Booth 10214
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Tel. +49(0)209/98251-10, Fax +49(0)209/98251-31
info@bepro.de, www.bepro.de
03-057_AnzSteelMarket-International_210x180.indd 1 19.08.19 08:0
Economists: Outlook for British metal industry »very high risk« (page 12)
Long steel market currently depressed, says Irepas - and players agree (page 22)
Blechexpo 2019: Sheet Metal and Joining Technology Highlights (page 30)

Structural
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Editorial 3
Dear readers,
Brexit and digitalisation: two topics that are currently affecting
the steel industry. While preparing this issue there was
still no surety to the outcome of Brexit but one thing is
certain: British industry will suffer - and with it European
industry. This is the conclusion of an interview with international
credit insurer Coface and an assessment by Make UK,
The Manufacturers‘ Organisation, and business advisory firm
BDO LLP. Nevertheless, there are also some rays of hope, as
Paul O‘Donnell of the Manufacturing Technologies Association
points out in an interview.
Scandinavia has profited from the Brexit chaos, as the Philipp Isenbart
Coface analysts confirm. In the far north, people are dealing
with the industry‘s relevant issues, above all digitalisation. Stainless steel producer Outokumu, for example,
is planning the complete digitalisation of its plant in Tornio to subsequently transform the entire group.
A must-win-battle for the company.
Digitalisation is also changing the lives of steel service centers. In separate interviews, Ralf Henkelmann and
Thomas Niederhofer from Knauf Interfer and Michael Mockenhaupt from EMW Stahl Service Center explain
how tasks are shifting and where new opportunities are opening up.
Visitors to Blechexpo in Stuttgart will find out what else the industry has to offer. We have summarised
current trends, new products and news in a trade fair preview. This also revolves around the further digitalisation
of daily work. But, before that takes place we may even know what the future holds for Brexit, we
will see.
We hope you enjoy reading this special edition.
Philipp Isenbart
editor-in-chief, Steel Market
steel market 01.2019

12
22
30
Copyright: Tata Steel
Copyright: Shutterstock
Copyright: Schall
UK & NORTHERN
EUROPE
STEEL INTERNATIONAL
BLECHEXPO,
STRIPS & SHEETS
UK steelmakers need funds to invest in
their plants and in research to cope with
competition.
The global long steel products market is
depressed as circumstances are becoming
more difficult.
The 14 th Blechexpo, in combination with the
7 th Schweisstec, will be covering all aspects of
sheet metal, pipe and profile processing from
the 5 through 8 November.
CONTENTS 01.2019
SHORT MESSAGES
6 ArcelorMittal to build demonstration plant
7 Baosteel orders additional continuous slab caster
8 Dillinger and Saarstahl launch joint
future-oriented program
9 Marcegaglia to supply 6,000 tons of tubes
UK & NORTHERN EUROPE
12 Economists: Outlook for British metal industry
»very high risk«
14 Make UK and BDO: »Perfect storm of factors«
16 MTA: Chances and challenges for the
British industry
STEEL INTERNATIONAL
22 Long steel market currently depressed, says
Irepas - and players agree
28 Wire rod supply getting scarcer in Europe –
processor firms fear forced production cuts
BLECHEXPO, STRIPS & SHEETS
30 Blechexpo 2019: Sheet Metal and Joining
Technology Highlights
34 A prospect for coil prices to gain ground?
STEEL DISTRIBUTION & SERVICE CENTRES
36 Interview with Knauf-Interfer: The Digital Supply
Manager
38 Multi-functional laser tools for sheet metal
processing
40 EMW Stahl-Service-Center: »More and more
logistics tasks«
VIPS
44 Wolfgang Eder hands chairmanship of the
Management Board to Herbert Eibensteiner
45 Henrik Adam leads Tata Steel Europe
COLUMS
5 World crude steel production
47 Literature & Company brochures
50 Advertiser’s index
50 In the next issue / Imprint
steel market 01.2019

World crude steel production 5
World crude steel production 1) August 2019
1)
HADEED only.
2)
The 64 countries included in this table accounted for approximately 99% of total world crude steel production in 2018.
e – estimated
August August % change. 8 Months Change
2019 2018 August 19/18 2019 2018 in %
Austria 577 321 79,4 5 144 4 497 14,4
Belgium 630 e 642 -1,9 5 295 5 376 -1,5
Bulgaria 55 e 53 4,8 417 450 -7,4
Croatia 4 e 8 -51,2 58 71 -17,4
Czech Republic 364 444 -17,9 3 203 3 394 -5,6
Finland 258 349 -26,1 2 415 2 808 -14,0
France 1 050 944 11,2 10 038 10 260 -2,2
Germany 3 266 3 239 0,8 27 200 28 464 -4,4
Greece 40 e 53 -24,5 894 965 -7,4
Hungary 121 155 -22,0 1 193 1 332 -10,4
Italy 857 1 168 -26,7 15 410 16 144 -4,5
Luxembourg 112 128 -11,9 1 483 1 504 -1,4
Netherlands 578 516 12,1 4 621 4 637 -0,4
Poland 635 e 753 -15,6 6 106 6 784 -10,0
Slovenia 45 e 48 -5,5 426 451 -5,6
Spain 1 133 1 187 -4,6 9 651 9 558 1,0
Sweden 362 345 4,9 3 308 3 244 2,0
United Kingdom 563 546 3,0 4 979 5 143 -3,2
Other E.U. (28) (e) 805 e 816 -1,3 7 250 7 240 0,1
European Union (28) 11 454 11 714 -2,2 109 091 112 321 -2,9
Bosnia-Herzegovina 65 e 75 -13,9 550 383 43,5
Macedonia 20 21 -5,7 172 176 -2,5
Norway 60 55 8,6 408 368 10,9
Serbia 112 158 -29,4 1 281 1 334 -4,0
Turkey 2 634 3 005 -12,4 22 553 25 189 -10,5
Other Europe 2 890 3 315 -12,8 24 963 27 451 -9,1
Belarus 210 e 220 -4,5 1 741 1 587 9,7
Kazakhstan 400 e 375 6,7 2 761 3 068 -10,0
Moldova 35 e 51 -31,4 250 368 -32,1
Russia 5 900 e 6 147 -4,0 48 261 48 450 -0,4
Ukraine 1 938 1 786 8,5 14 655 13 992 4,7
Uzbekistan 60 e 62 -3,2 423 441 -4,1
C.I.S. (6) 8 543 8 641 -1,1 68 091 67 906 0,3
Canada 1 060 e 1 152 -8,0 8 650 9 098 -4,9
Cuba 20 e 20 -2,0 144 142 1,4
El Salvador 10 e 8 21,4 68 64 5,4
Guatemala 25 e 26 -2,0 199 196 1,5
Mexico 1 410 e 1 660 -15,1 12 639 13 844 -8,7
United States 7 497 7 477 0,3 59 229 56 919 4,1
North America 10 022 10 343 -3,1 80 928 80 262 0,8
Argentina 436 455 -4,3 3 173 3 469 -8,5
Brazil 2 524 2 914 -13,4 22 215 23 482 -5,4
Chile 95 e 105 -9,6 641 735 -12,8
Colombia 115 e 115 0,1 749 802 -6,7
Ecuador 55 e 51 7,9 410 392 4,5
Paraguay 2 e 3 -35,9 12 13 -5,6
Peru 105 e 101 4,0 821 810 1,4
Uruguay 5 e 5 -3,7 39 38 2,8
Venezuela 10 e 9 11,1 54 111 -51,2
South America 3 346 3 759 -11,0 28 113 29 852 -5,8
Egypt 525 e 605 -13,3 5 148 5 064 1,7
Libya 31 26 19,3 364 253 43,8
South Africa 434 528 -17,8 4 032 4 260 -5,4
Africa 990 1 159 -14,6 9 544 9 577 -0,4
Iran 2 200 e 2 062 6,7 17 188 16 153 6,4
Qatar 229 226 1,1 1 747 1 766 -1,1
Saudi Arabia (1) 440 e 483 -8,8 3 463 3 531 -1,9
United Arab Emirates 286 265 7,9 2 163 2 124 1,8
Middle East 3 155 3 036 3,9 24 561 23 575 4,2
China 87 251 79 834 9,3 664 869 609 362 9,1
India 9 350 e 9 208 1,5 75 697 72 497 4,4
Japan 8 116 8 806 -7,8 67 589 70 193 -3,7
Pakistan 300 e 430 -30,2 2 269 3 380 -32,9
South Korea 5 941 6 101 -2,6 48 428 48 334 0,2
Taiwan, China 1 890 e 1 950 -3,1 15 197 15 351 -1,0
Thailand 415 e 598 -30,6 2 965 4 478 -33,8
Vietnam 1 816 1 402 29,6 13 882 8 848 56,9
Asia 115 078 108 328 6,2 890 896 832 441 7,0
Australia 501 506 -1,1 3 648 3 945 -7,5
New Zealand 60 54 12,1 450 442 1,8
Oceania 561 560 0,2 4 098 4 387 -6,6
Total 64 countries (2) 156 038 150 855 3,4 1 240 286 1 187 772 4,4
steel market 01.2019

6 Short messages
ARCELORMITTAL TO BUILD DEMONSTRATION PLANT
ArcelorMittal has commissioned technology
provider Midrex Technologies to design a demonstration
plant at its Hamburg site to produce steel
with hydrogen. Both companies have now signed
a Framework Collaboration Agreement (FCA) to
cooperate on several projects, ranging from research
and development to the implementation of
new technologies. The FCA will be governed by a
number of Project Development Agreements,
incorporating the expertise of Midrex and Arcelor-
Mittal. The first Project Development Agreement
is to demonstrate in Hamburg the large-scale production
and use of Direct Reduced Iron (DRI) made
with 100% hydrogen as the reductant. In the
coming years, the demonstration plant will produce
about 100,000 tons of direct reduced iron
per year - initially with grey hydrogen sourced
from natural gas. Conversion to green hydrogen
from renewable energy sources will take place
once available in sufficient quantities and at an
economical cost. Energy for hydrogen production
could come from wind farms off the coast of
Northern Germany. The plant will be the world’s
first direct reduction plant on an industrial scale,
powered by hydrogen.
Midrex-signing: At the signing ceremony
in Hamburg (from left to right):
Vincent Chevrier, Todd Astoria and KC Woody
from Midrex with Dominique Vacher,
Dr Uwe Braun and Matthias Schad
from ArcelorMittal.
Copyright: ArcelorMittal
SEVERSTAL INVESTS IN ARCANUM ALLOYS
PAO Severstal has invested in Arcanum
Alloys, Inc., a Michigan-headquartered company
that develops innovative steel-based alloys.
Severstal is the lead investor of the round,
investing approximately six million dollars in
this funding round. Another major investor in
the company is the leading American venture
capital firm Khosla Ventures. Arcanum Alloys,
Inc. has developed a unique technology for the
production of surface optimized diffusion alloys.
With this platform technology, the company is
able to produce a wide variety of products with
enhanced properties. Their first product offers
aesthetic and corrosion properties equivalent to
stainless steel, but with superior formability
and at lower operational and capital costs. These
products are targeted at customers in the
automotive and construction industries as well
as manufacturers of household appliances.
George Gogolev, Head of Severstal Ventures,
commented: »We plan to present to our clients
steel produced using Arcanum Alloys’ technology
on our pilot production at Cherepovets Steel
Mill in 2020.«
SALZGITTER FLACHSTAHL TO REVAMP CONTINUOUS CASTER NO. 1
Salzgitter Flachstahl has commissioned SMS
group to revamp continuous caster No. 1 at its Salzgitter
works. The plant, which was delivered by SMS
group in 1981, is to be fitted with a new machine
head with mold, oscillator, and segment 0. The revamp
is aimed at upgrading the plant with a range
of trendsetting features, including the use of a hydraulic
resonance oscillator and the digital alignment
assistant HD LASr [mold]. The scope of supply covers
the engineering, the delivery of mechatronic components,
the dismantling, and the installation and commissioning
of the new equipment. An innovative
solution will be used for mounting segment 0 in the
machine head. This solution is the result of intensive
and successful cooperation between Salzgitter Flachstahl
and SMS group. The revamp is set to take place
during a scheduled plant shutdown in October 2020.
The four continuous casters at the Salzgitter Flachstahl plant were supplied by SMS group.
Copyright: SMS group, Photo: Salzgitter Flachstahl
steel market 01.2019

Short messages 7
BAOSTEEL ORDERS ADDITIONAL CONTINUOUS SLAB CASTER
Baosteel Zhanjiang, a subsidiary company of
the Chinese corporation Baoshan Iron and Steel Co
Ltd. (Baosteel) placed an order for a continuous slab
caster with Primetals Technologies. The caster, CCM
3, will be set up in the Baosteel production site in
Guangdong Province in South China, where Baosteel
Zhanjiang already operates two slab casters
supplied by Primetals Technologies since late 2015.
CCM 3 has an annual capacity of 2.8 million metric
tons of high-quality, high-strength steel grades. It
will supply slabs for a 1,780 millimeter hot strip
mill, complements the new Zhanjiang facility and
is part of a second phase of site development with
the aim to reach an annual steel plant capacity of
12.35 million metric tons per year. Start-up of the
new casting machine is expected for early 2021.
Baosteel: The additional continuous slab
caster will produce 2.8 million metric tons of
slabs per year for demanding applications.
Copyright: Primetals
QTB PROCESS FOR NUCOR MARION BAR MILL
Following last year’s order for a new 18-stand
rolling mill, Nucor Steel has chosen Danieli to supply
a new Quenching and Self-Tempering system,
to be installed at the same mill in Marion, Ohio. The
Quenching and Self-Tempering process improves
the mechanical properties of deformed bars, in particular
the yield strength, using billets with lower
alloy content. The result is a product with final technological
characteristics equal to or even better
than those obtained by low-alloyed/micro-alloyed
steels. The new system is designed for rolling
speeds up to 13 m/s for single and multi-strand
rebar, and it is controlled by a dedicated stand-alone
system provided by Danieli Automation. Commissioning
is expected in the next few months.
SHANDONG TO INVEST IN BAR MILL LINE
Shandong Laigang Yongfeng Iron & Steel Co.,
Ltd. (Yongfeng) awarded Friedrich KOCKS GmbH
& Co KG, Hilden, Germany, for the supply of a RSB ®
370++/4 in 5.0 design, in conjunction with the
KOCKS Size Control System SCS ® and the 4D EAG-
LE ® profile measuring gauge. The privately owned
Yongfeng Steel Co. Ltd., founded in 2002, is a subsidiary
of Yongfeng Group Co. Ltd. and one of the
major steel producers in Shandong Province. Currently,
Yongfeng produces about 5 million tons of
steel per year with about 6,500 employees. The
brand new bar mill line with an overall capacity of
1 Mio.t/a will be equipped with 22 conti stands in
H/V arrangement and a KOCKS RSB ® 370++/4 and
is designed to produce high quality products and
marks Yongfeng´s entry into the SBQ-market. The
commissioning is scheduled for the second half of
2020.
NUCOR ANNOUNCES MANAGEMENT CHANGES
Nucor Corporation announced that John J.
Ferriola, 67, will retire as Chairman and Chief
Executive Officer (CEO) on December 31, 2019
and that the Board of Directors elected Leon J.
Topalian, 51, to be President and Chief Operating
Officer, and to succeed Mr. Ferriola as CEO on
January 1, 2020, in connection with Nucor‘s
planned succession process. Mr. Ferriola has served
as Chairman since 2014 and as CEO since
2013. Previously, he served as President from
2011 to September 2019, President and Chief
Operating Officer from 2011 to 2012, Chief Operating
Officer of Steelmaking Operations from
2007 to 2010, Executive Vice President from
2002 to 2007, and Vice President from 1996 to
2001. He has also been a director of Nucor since
2011. Mr. Ferriola joined Nucor in 1991 as the
Manager of Maintenance and Engineering at
Nucor Steel-Texas. He later served as General
Manager of Vulcraft-Texas, Nucor Steel-Nebraska
and Nucor Steel-Indiana.
steel market 01.2019

8 Short messages
THYSSENKRUPP RASSELSTEIN TO MODERNIZE TANDEM COLD MILL
Thyssenkrupp Rasselstein GmbH has awarded
SMS group an order covering the modernization of
the oil application system of the tandem cold mill
No. 2. With the modernization, thyssenkrupp Rasselstein
wants to adjust the oil application system
of the tandem cold mill to the continuously increasing
future market requirements regarding product
quality and thus further expand its market position.
At the time of commissioning in 1971, the six-stand
tandem cold mill No. 2 was considered the latest
cold rolling mill of this type in the Federal Republic
of Germany. It already had a high degree of automation
and achieved very good strip qualities at
rolling speeds of up to 2,400 meters per minute.
The modernization is aimed at achieving a high
degree of flexibility regarding the control of various
process-influencing parameters for the production
of state-of-the-art end products. In addition to providing
the required design services and supplying
all mechanical equipment as well as the electrical
and automation systems, the contracted scope of
SMS group and Lux Automation GmbH, a company
The original six-stand tandem cold mill was commissioned 1971.
of SMS group, includes the dismantling of the old
systems as well as the erection and commissioning
of the new equipment. The modernization will be
implemented in two stages of construction. Commissioning
of the second construction phase is
scheduled for 2021.
Copyright: Thyssenkrupp Rasselstein
DILLINGER AND SAARSTAHL LAUNCH JOINT FUTURE-ORIENTED PROGRAM
Saarland’s steel industry is realigning.
»We are doing this in a completely integrated
process at Dillinger and Saarstahl with the
long-term goal of continuing the intergenerational
contract,« said Tim Hartmann, Chairman
of the Board of Management of Dillinger
and Saarstahl.
»We produce premium steels that are among
the best in the world and that are sought by
our customers. At the same time, our costs are
too high when compared with our competitors.
We will be adjusting our structures and processes
accordingly in the coming months. The goal
is double-digit profitability that gives us sufficient
scope for growth investments. In addition,
we are clearly aligning the entire company
in the direction of carbon-free technologies. We
meanwhile expect politicians to provide a fair
competitive framework and sufficient funds in
the short term to implement the transfer process.
We want the most state-of-the-art steel
industry to be here in Saarland.«
The ongoing structural crisis in the global steel
market and the partial economic downturn in
demand in segments such as the automotive
industry and machine manufacturing, as well
as the rising costs of the carbon certification
system, have prompted the company to set up
an integrated strategy process to develop and
implement measures to safeguard the future.
»For the first time, teams of experts from
Saarstahl, Dillinger and SHS have worked
together to develop the strategic goals for the
future,« explained Hartmann. He added: »The
result of the process is clearly defined objectives
and a detailed action plan for the next
few years. We are convinced that this will
enable us to cope with the identified challenges
and to secure our future.«
MINTAL GROUP TO BUILD STAINLESS STEEL PLANT
Mintal Group Co Ltd has announced the
intention to build a ferrochrome & stainless steel
plant in Vietnam at an investment of USD 2 billion.
The first stage involves the creation of stainless
steel production with a capacity of 1.5 million
tons per year. The second stage provides for
an increase in the production of stainless steel
by 1 million tonnes per year and the creation of
ferroalloy production by 1 million tonnes per
year.
Through the collaboration with Metaltubi (Eusider
group), Marcegaglia Specialties supplies a
share of the 6,000 tons of stainless steel tubes
used to make the plant’s collectors. The tubes are
supplied to Rioglass Solar, which reworks and
covers them with several layers of materials that
absorb solar radiation, then they are encapsulated
within other larger glass tubes.
steel market 01.2019

Short messages 9
AIRBUS FORCASTS THE NEED FOR OVER 39,000 NEW AIRCRAFT
The global passenger and freighter aircraft
fleet is set to more than double from today’s
nearly 23,000 to almost 48,000 by 2038 with
traffic growing at 4.3% annually, also resulting
in a need for 550,000 new pilots and 640,000
new technicians. These are some results of the
Global Market Forecast 2019-2038 recently published
by Airbus.
By 2038, of the forecast 47,680 fleet, 39,210 will
be new and 8,470 will remain from today. By
updating fleets with latest generation fuel-efficient
aircraft such as the A220, the A320neo
Family, the A330neo and the A350, Airbus believes
it will largely contribute to the progressive
decarbonisation of the air transport industry and
the objective of carbon neutral growth from
2020 while connecting more people globally.
Reflecting today’s evolving aircraft technology,
Airbus has simplified its segmentation to consider
capacity, range and mission type. For example,
a short haul A321 is Small while the long-haul
A321LR or XLR can be categorised as Medium.
The new segmentation gives rise to a need for
39,210 new passenger and freighter aircraft –
29,720 Small, 5,370 Medium and 4,120 Large. Of
these, 25,000 aircraft are for growth and 14,210
are to replace older models with newer ones
offering superior efficiency.
The new production facilities in Hamburg.
Resilient to economic shocks, air traffic has more
than doubled since 2000. It is increasingly playing
a key role in connecting large population
centres, particularly in emerging markets where
the propensity to travel is amongst the world’s
highest as cost or geography make alternatives
impossible. Developments in superior fuel efficiency
are further driving demand to replace
existing less fuel-efficient aircraft.»The 4%
annual growth reflects the resilient nature of
aviation, weathering short term economic shocks
and geo-political disturbances. Economies thrive
on air transportation. People and goods want to
connect,« said Christian Scherer, Airbus Chief
Commercial Officer and Head of Airbus International.
Copyright: Airbus
MARCEGAGLIA TO SUPPLY 6,000 TONS OF TUBES
Marcegaglia Specialties contributes to
the construction of the largest single site CSP
(Concentrating Solar Power) plant in the world.
This is the Noor Energy 1 Project, the fourth
phase of development of the Mohammed Bin
Rashid Al Maktoum Solar park in Dubai, United
Arab Emirates. The project, with a total cost of
USD 3.9 billion, includes 700 MW from CSP
technologies and 250 MW of photovoltaic
power generation. Once completed, it will provide
clean energy to more than 320,000 homes
in Dubai, reducing carbon emissions by 1.6
million tons per year.
Developed by Acwa Power in close cooperation
with DEWA (Dubai Electricity & Water Authority),
Shanghai Electric Group Corporation as EPC and
Abengoa Energía as solar field technology provider,
the system will use Rioglass Solar technology
with linear parabolic collectors that concentrate
sunbeams in receiving tubes linearly
developed and positioned in its focus. The collectors
are designed to follow the motion of the sun
along an axis, which moves in a north-south
direction.
SCHMOLZ + BICKENBACH ADJUSTS GUIDANCE
Schmolz + Bickenbach has lowered its earnings
forecast for the 2019 financial year on the
basis of the preliminary figures for the first eight
months of 2019 available at the end of August. The
company is now forecasting adjusted EBITDA of
between EUR 70 million and EUR 100 million.
Demand for steel weakened further during the
third quarter due to political uncertainties and
escalating trade conflicts. The order backlog continued
to decline, as subdued demand from automotive
was aggravated by softening orders from
mechanical engineering. This is triggering a more
pessimistic outlook. Subsequent to the deteriorated
results and outlook, Schmolz + Bickenbach is reviewing
the value-in-use of its operating assets.
steel market 01.2019

10 Short messages
MANNESMANN TO SUPPLY PIPES FOR GAS PIPELINE
Salzgitter Mannesmann International GmbH
(SMID) has been awarded a major order in Denmark.
Salzgitter Group subsidiaries and associate
companies will produce and supply around 30,000
t of steel pipes and 90 steel pipe bends for the
Baltic Pipe Project. This is an important European
gas infrastructure project which will see Norwegian
natural gas piped via Denmark to Poland. The
EU is providing financial support for this project
aimed at diversifying the European gas market.
The pipes will be manufactured by Mannesmann
Grossrohr (approx. 24,000 t) and EUROPIPE
(approx. 6,000 t), with the bends being produced
by Salzgitter Mannesmann Grobblech. The input
material including slabs for the production of
sheet and hot rolled coils will be supplied by other
Salzgitter Group subsidiaries and associate companies.
Salzgitter Mannesmann International GmbH will
be responsible for the entire project coordination
from preparation of offer through to execution of
the order. The company will also safeguard the
entire supply chain and collaborate with prominent
financial service providers.
The pipes will be stored at 24 different places.
Between January and March 2020 Salzgitter Mannesmann
International will ship pipes and bends
to customer Energinet for Lot 2 of the project.
Together with its road, rail and marine shipping
partners, SMID will be responsible for the comprehensive
project logistics including delivering and
stacking pipes and bends at 24 different storage
areas along the route of the pipeline.
Copyright: Salzgitter AG
JACQUET METAL SERVICE: SALES DOWN
Jacquet Metal Service reported sales in the
first half of 2019 of EUR 884 million (-3.8%; Q2:
-6.1%). EBITDA was EUR 47 million (Q2: EUR 23
million) or 5.3 % of sales (Q2: 5.5%). Net income
(Group share) was EUR 18 million. »Market conditions
are not expected to improve in Q3 2019
and sales are expected to fall significantly compared
to Q3 2018,« the company states. In this
context, the Group will focus on controlling working
capital requirements and operating costs
while keeping an eye out for acquisition opportunities
arising from current economic conditions.
In accordance with IFRS 5 – Assets held for
sale, the contribution of Abraservice is not included
in the sales and operating income of the
Group. For the sake of comparison with 2019
figures, 2018 financial statements have been
restated by removing the results of the Abraservice
group, currently under disposal, and the
results of businesses sold in 2018 (proforma data
»PF«).
ABB DIGITAL SOLUTION ELIMINATES NEEDLESS MAINTENANCE
ABB has launched a scalable, digital application
that gives metals producers a complete
overview of their production assets’ health, helping
to avoid excess maintenance, prevent
unnecessary exposure to hazardous areas and
speed up repairs.
The solution – ABB Ability Asset Vista Condition
Monitoring for metals – quickly gathers previously
disparate data from a variety of production
equipment such as motors, switchgears, gearboxes,
valves, switches and sensors. The data is then
presented via user-friendly dashboards to operations,
automation and maintenance personnel,
ensuring smooth joint working and integration.
Highly scalable, it is particularly quick and easy to
implement at plants already using a wide range
of distributed control systems, including ABB’s
market-leading ABB Ability System 800xA. »Our
goal with ABB Ability Asset Vista is to break down
information silos between operations, automation
and maintenance personnel, helping metals industry
customers define a thorough predictive maintenance
strategy,« says Tarun Mathur, Global
Product Manager for Metals Digital at ABB.
steel market 01.2019

Short messages 11
NEW-CAR DEMAND IN THE EU IS DOWN
According to the European Automobile
Manufacturers Association in July 2019,
demand for new passenger cars increased by
1.4%, with almost 1.3 million units registered
across the European Union. Looking at the five
big Western European markets, Germany was
the only major car market to post positive
results (+4.7%). The region-wide increase was
largely supported by the Central European
countries, where registrations went up 13.4%
in July.
During the month of August, the EU passenger
car market contracted by 8.4%. This is mainly
the result of the high base of comparison, as
August 2018 saw exceptional growth
(+31.2%) ahead of the introduction of the new
WLTP emissions test on 1 September 2018. The
top five EU markets all recorded decreases,
with the strongest drops in Spain (-30.8%) and
France (-14.1%).
Over the first eight months of 2019, new-car
demand in the EU went down by 3.2% compared
The number of new cars in Europe is declining.
to the same period last year, counting 10.5 million
registrations in total. Germany (+0.9%) posted a
slightly positive result so far this year, but the other
major EU car markets saw demand falling.
Copyright: Pixabay
MAJOR ORDER FOR VALLOUREC
Vallourec has been awarded a contract by
Abu Dhabi National Oil Company for the supply
of tubing and casing, over a five year period,
with a possible 2-year extension, for an
amount of USD 900 million. It covers a full
range of products, from standard API to high
end premium OCTG for both onshore and
offshore oilfields, and conventional to complex
wells. In addition, Vallourec will supply a large
range of »from mill to rig« services as part of
its new »Vallourec.smart services offer«. This
award represents one of the largest awards
received by Vallourec to supply international
markets. Edouard Guinotte, Senior Vice President
Middle-East/Asia, said: »We are delighted
that ADNOC, the national oil company of Abu
Dhabi and one of our key Group customers, has
renewed its confidence to Vallourec by awarding
this contract and enabling Vallourec to
accompany ADNOC in its long term strategy.
We will contribute to ADNOC‘s In-Country
Value Program. Our successful track records in
Quality, Health & Safety, and Environment
have been decisive. This contract is a new
milestone in our longstanding relationship
with ADNOC, to whom Vallourec will provide
added value, with increased flexibility and
technical expertise included within our new
services and digital offer Vallourec.smart.«
Tubing and casing will be supplied from Vallourec‘s
mills in Europe, South America and
China. Deliveries are expected to start from
the second half of 2020.
MECHANICAL ENGINEERING GERMANY: ORDER INTAKE DOWN
The order situation in the mechanical
engineering sector continues to deteriorate. In
August 2019, German mechanical engineering
companies booked 17 percent fewer orders in real
terms than in the previous year. Domestic orders
fell by 12 percent and foreign orders by 19 percent.
»As feared, the previous months were only a breather
with single-digit minus rates. The ifo business
export expectations show that mechanical
engineering companies continue to be pessimistic
regarding the economic and political risks,« explained
VDMA economic expert Olaf Wortmann. In
the month under review, 14 percent fewer orders
came from the euro zone and 21 percent fewer
from non-euro countries. In a three-month comparison
from June to August 2019, orders were
8 percent lower in real terms than in the previous
year. Domestic orders fell by 11 percent,
while foreign orders were down 7 percent.
Orders from euro countries fell by 6 percent,
orders from non-euro countries by 7 percent.
steel market 01.2019

12 UK & Northern Europe
Levelling the playing field
Economists: Outlook for British metal industry »very high risk«
Brexit dominates the headlines and darkens the outlook for the British economy. What can European business
partners expect? In an interview with Steel Market European Edition, two experts of the international credit
insurer Coface talk about the prospects. Christine von Berg, economist for the Northern European region, and
Khalid Ait-Yahia, industry analyst for steel, assess the situation.
Steel Market (SM): Brexit has darkened
the outlook for the British industry. How
do you asses the prospects for the industry
in general and the steel industry in
particular?
Coface: Our outlook for the British industry
is very bad. Since 2017, the investments
in machinery and equipment were negative
compared to the year before (average 2010
– 2015: +4.1%, change year-over-year).
The sentiment of British manufacturing
companies is decreasing, especially since
late spring 2019 when Theresa May resigned
as Prime Minister and the probability
of a no-deal Brexit increased. The yearly
growth rate of production in the manufacturing
sector has been in the negative since
October 2018. The only months when we
had a peak were February and March 2019,
but only because the producers wanted to
fill their stocks before Brexit is realized. Since
then, the yearly growth rate has been
negative again.
As a result, insolvencies picked up since
2018. In the first half of 2019, insolvencies
in manufacturing were 9% higher than the
first half of 2018. The situation for the steel
industry is even worse. There is a general
weakness of the car industry in Western
Europe due to several problems with emission
standards/decreasing demand/uncertainty
regarding future mobility concepts. On
top of this, several car producers have left
the UK or reduced their production (because
of cross-border supply chain disruptions),
which is hurting the steel industry.
The British car industry is foreign-owned,
and decisions are made abroad. For example,
MINI is a subsidiary of the BMW group.
Moreover, the weakness of the construction
sector is weighing on the steel sector. This all
resulted in an increase of insolvencies of
Christine von Berg and Khalid Ait-Yahia are not very optimistic for the British industry.
31% year-over-year in the first half of 2019. partner, 4.4% of exports; USD 66.5 million
Therefore, our outlook for the British metal - the British steel industry is affected by US
industry is »very high risk«.
tariffs. But US steelmakers are on the verge
of developing new greenfield projects as
SM: The problems seem overwhelming. their market is now protected from imports.
Are there also rays of hope?
Additionally, the competition with Japanese
Coface: In the first quarter of 2019, some steel products is very strong as their quality
high value-added steel producers were better is very high. Therefore, the market could be
at protecting their margin. As in every crisis, overcrowded for British steelmakers. Furthermore,
in the case of the Brexit, there will be
the pressure on the companies to change
their business models, to develop new, more tariffs from the EU on steel and aluminum,
efficient or sustainable products is high. So, if too. As the other TOP 10 export partners of
the companies survive this weakness, they the British steel industry are almost all EU
will be better in their standing in the global countries, it is not likely that the trade agreement
with the US alone could save the Bri-
market. This outcome is highly dependent on
the ability to generate enough cash while tish steel industry.
managing a very difficult market.
SM: What do you see being the greatest
SM: Could a trade agreement with the risks to the British steel industry?
US save the British steel industry? Coface: The British steel industry, while
Coface: A trade agreement with the US being declared ‘vital’ by the British Government,
cannot compete with its European
could help the British steel industry, depending
on the terms and conditions. As the peers, notably those from Germany or France.
This is due to political support in these
United States is a main partner for steel
exports - 2nd partner, 9% of exports; USD countries. The British steel industry is evolving
in a landscape impacted by higher 445 million - and aluminum exports - 5 th cost,
Copyright: Coface
steel market 01.2019

UK & Northern Europe 13
notably energy and environment-related
ones, particularly emissions. One must ask if
the future of the industry is on the top of the
Government’s agenda with the growing
political uncertainty related to Brexit.
The industry is outcompeted by actors that
are better prepared to cope with a sluggish
market with a more efficient plant, a better
portfolio of products, a highly integrated
supply chain, and so on. The fact that big
British plants such as Port Talbot are under
the constant threat of closing reminds us
that the industry needs an overhaul.
SM: What effects do you expect for the
German/European steel industry?
Coface: The effects will be noticeable but
manageable. In the case of Germany, the relevance
of the United Kingdom as a trading
partner has diminished in the past decades,
but especially in the last years. On the export
side, the UK ranks 13 th (2.9% of exports) for
iron and steel and is in the top 10 for steel
products (equals 4.2% of all German steel
exports). On the import side, the UK ranks 15 th
for iron and steel as well as for steel products
(both 1.8% of the import share). Here, the
effect of Brexit should be less significant. As
the steel market is suffering from overcapacities,
it would be easier to replace the absent
supply by other trading partners. Additionally,
the demand from German manufacturing is
decreasing - e.g. from automotive and the
machinery sector - so that, if we disregard
highly specialized steel products, the supply
from the UK is no longer needed as much.
SM: What consequences do you expect
for British branches of German steel traders?
Coface: Brexit does not mean that there
won’t be any steel trade between the UK
and Germany anymore. It means that delivery
times will be longer due to customs
control, that the prices will go up due to
tariffs and that regulations may change. In
comparison to UK steel traders, German traders
will lose a lot of their competitiveness,
except for their product-competitiveness. If
the quality or specifications are unique, the
loss in competitiveness will be limited.
SM: How can German and European trading
partners and customers arm themselves
against these risks?
CofaceIndustry: UK steelmakers need funds to invest in their plants and in research to cope
with competition.
Coface: They have already done so by changing
their supply-chains and export partners.
Over the last four years, the growth rates of
exports and imports between the UK and
Germany have decreased, but this dynamic
severed between 2017 and 2018, with a
continuing tendency in 2019. Instead of the
UK, other countries, especially from the EU
(due to the customs union), can win from
this change in trading structures. For example,
exports of steel and iron products to Sweden
increased by 24% between 2017 and
2018, boosting the export share to Sweden
up to 3.4%, 11 th in Europe, right behind the
UK.
SM: What can European politicians do to
mitigate the consequences for the steel
industry?
Coface: Brexit, in whatever form, will hurt
the European steel market. Even if Brexit will
not be realized, the uncertainty around it is
hurting the economy. European politicians
can work towards a decision so that the
uncertainty diminishes (even if the decision
is a no-deal Brexit) because the uncertainty
is delaying many investment decisions on the
continent. Additionally, politicians can work
on the demand side and decide on a European
concept of automotive mobility, so that
a coordinated European infrastructure can
be built and customers and producers have
more security about which technology will
be used in the future. This would support the
demand for automobiles and therefore help
the steel industry as well.
SM: What is your long-term expectation
of the British steel industry?
Coface: As explained above, the short term
outlook is not that positive. In the long term,
this industry must reinvent itself with the
help of the public authorities, notably by not
burdening it with extra-costs. Being in the
European Union helped the industry. However,
the exit could damage the industry and
the whole supply chain. UK steelmakers
need funds to invest in their plants and in
research to cope with competition. The Chinese
authorities are forcing their steelmakers
to produce better steel while closing inefficient
plants. Japanese and Korean steelmakers
are providing higher grade products. In
Europe, Austria with Voestalpine is doing the
same. There are good examples to follow,
but the key unknown is the commitment of
British authorities in providing UK steelmakers
with a level playing field.
Copyright: Tata Steel
steel market 01.2019

14 UK & Northern Europe
»Perfect storm of factors«
Make UK and BDO: All indicators have weakend significantly
Britain’s manufacturers are firmly in a nosedive as the perfect storm of Brexit uncertainty, slowdown in major
markets and trade wars takes its toll according to a major survey published by Make UK, The Manufacturers’
Organisation and business advisory firm BDO LLP. The Q3 Manufacturing Outlook survey comes on the back of the
latest PMI data and shows all indicators have weakened significantly, with investment and domestic orders in
particular turning negative.
The survey also shows that a weaker
currency is providing no solace, contrary to
claims from some politicians and commentators,
with export orders down despite
prices falling. This indicates that foreign
customers are not buying British goods even
though they are 6 % cheaper than this time
last year.
Commenting, Seamus Nevin, Chief Economist
at Make UK, said: »Industry is facing
a perfect storm of factors, compounded by
a hard Brexit which could not be coming at
a worse possible time. In normal circumstances
a global slowdown on its own would be
enough, but add trade wars and the biggest
shock to our economy since the War and
there seems little doubt that, barring a
remarkable turnaround, the sector may be
heading for recession.«
Tom Lawton, Head of Manufacturing at
BDO, said: »Global competition, skills shortages,
lack of a coherent industrial strategy
from government and continuing technological
disruption has made UK manufacturing
a challenging sector for decades. The long
shadow cast by the possibilities of a no deal
Brexit and the uncertainty of recent months
has only added to the difficulties for the sector.
A cliff-edge decision on a deal or no-deal
Brexit will mean a double whammy of continuing
weaker demand for products and fundamental
disruption to supply chains. The
impact on supply chains will be particularly
felt in the UK automotive sector where car
parts are sourced from different European
countries and delivered on a just in time basis
before being finally assembled in the UK.
Already suffering from a fall in output for
14 successive months, car assembly – the
jewel in the crown of UK manufacturing –
All indicators have weakened significantly.
would be particularly hit hard by a no-deal
Brexit. The Government must strain every
sinew to reach a Brexit deal that protects UK
manufacturing.«
According to the survey, the total order
balance, whilst only just remaining in the
positive, fell to +2% in Q3 (down from +8%
in Q2 and +16 % in Q1) indicating the significant
rate of weakening which has taken
place since the start of the year. According
to Make UK, following the current trend it
will almost certainly turn negative in the final
quarter of the year, barring a remarkable
turnaround in the economy.
Output also fell significantly, down to
+4% from +17 % in Q2, indicating there is
little, if any, evidence that stockpiling is building.
This is leaving companies far less prepared
for a no deal situation compared to
earlier this year. After two quarters where
they were below domestic orders, export
orders (+6%) have returned to a level above
domestic orders which have turned negative
at -6%. Such significant weakening cannot
be explained by the poorer global outlook
alone, especially as UK and export prices are
down by 8% and 6% respectively since this
time last year.
With this harsh outlook it is not surprising
that both investment and recruitment intentions
have also weakened significantly. Recruitment
has continued the decline witnessed
for the last four quarters (six if we discount
the annual increase that came in the
Q4 Christmas season last year). Furthermore,
investment intentions, which have been
paralysed for the last year, have now entered
negative territory for the first time since Q3
2016 (the immediate aftermath of the Brexit
referendum).
Copyright: Pixabay
steel market 01.2019

UK & Northern Europe 15
Unsurprisingly, therefore, both firm level and
UK economy level confidence have fallen
significantly this quarter with the level of
confidence in the overall economy down by
almost a half versus the last quarter. As a
result of this weakening picture, Make UK is
now forecasting manufacturing growth of
just 0.1 % in 2019 (down from 0.2 %) and
an anaemic 0.6 % in 2020 (down from 0.8
). GDP is forecast at 1.1 % in 2019 and 1.4
% in 2020. (All these forecasts are based on
avoiding a no deal).
The survey of 292 companies ran from 31
July to 21 August. Make UK, The Manufacturers’
Organisation, is the representative
voice of UK manufacturing, with offices in
London, Brussels, every English region and
Wales. Accountancy and business advisory
firm BDO LLP provides integrated advice and
solutions to help businesses navigate a changing
world.
NUCLEAR BOOST POWERS ALLOY WIRE’S EXPANSION
Supplying high performance nickel alloy
wire to fuel the growth in nuclear power is
helping a UK manufacturer expand. Alloy
Wire International (AWI) has seen a 10%
surge in orders for its specialist wire, which
is being used within components for the sector
and critical seals and springs found in
many of the world’s largest reactors.
Employing 31 people across sites in the
West Midlands and Yorkshire, the company
is on course to hit GBP one million of sales
for this industry for the first time in 73 years
and the management team believe its ability
to fulfil orders in three weeks is a big factor
in this increase.
It also pointed to the way a lot of the
nickel alloy wire in its range can be treated
with a special process that can offer the critical
performance required to operate in one
of the most demanding business arenas in
the world.
»We have been supplying to this sector
for a long time and our track record for
manufacturing quality is well known with
EAST OF ENGLAND EXPANSION FOR ENERMECH
EnerMech has plans to extend its footprint
in the east of England and has appointed
its first general manager for the region.
Laz Koszeghy joined the mechanical, electrical
and instrumentation services specialist
from BHGE where he held senior global operations
and M&A positions in the company’s
subsea services division and previously he had
operational roles in the US, Norway and Hungary,
in energy and infrastructure businesses.
Already well established in the offshore
sector in the Southern North Sea, EnerMech
currently employs around 30 people in Great
Yarmouth where it has workshop,
warehouse and training facilities. The
Aberdeen-headquartered company has
customers in both the UK and overseas,«
explained Mark Venables, Managing Director
of Alloy Wire International. »The last
nine months have definitely been our
identified a range of onshore opportunities
in the renewables, nuclear, power, chemical
and industrial sectors and is positioned for
further growth in the Eastern England region.
Established 11 years ago, EnerMech
employs 3,500 staff across 40 locations in
the UK, Norway, the Middle East, Caspian,
Asia, Africa, Australia and Americas, working
across the oil and gas, LNG, renewables,
defence, power, infrastructure and
petrochemicals sectors.
busiest time to date and we are supplying
wire that is going into both existing plants
and also new projects taking shape across
the globe.«
Alloy Wire International is one of the UK’s leading manufacturers of round, flat and profile wire.
Laz Koszeghy,
General Manager East of England, EnerMech
Copyright: EnerMech Copyright: Alloy Wire International
steel market 01.2019

16 UK & Northern Europe
»We are not pulling up the drawbridge«
MTA: Chances and challenges for the British industry
Economists and politicians forecast a dark future for the British industry. What does the manufacturing industry
in the United Kingdom think? How are the contacts with European companies and associations? Steel Market
European Edition spoke to Paul O’Donnell, Head of External Affairs of the Manufacturing Technologies Association
(MTA), about chances and challenges for the British industry.
Steel Market (SM): Brexit, global trade
wars, global overcapacities in steel production,
weakening automotive industry,
political standstill in Great Britain:
some economists and politicians
forecast the downfall of the British
industry. What is your answer to these
reports?
Paul O’Donnell (PO): Firms across the world
are facing challenges like trade wars as we
come to terms with the impact of thirty years
of rapid globalisation. In Britain we have the
additional political risk of Brexit which adds
a further level of uncertainty to our economic
outlook. The MTA firmly supports as
close a relationship as possible with the EU
which is by far our largest trading partner. If
a deal can be reached then we should be
well placed to respond to the bigger global
changes that are really shaping the economic
environment.
SM: How do you assess the outlook for
the British industry in general and the
manufacturing industry in particular?
PO: British industry could be well placed to
lead as manufacturing becomes more and
more knowledge intensive. Our world leading
Universities are a major strength and
are driving innovation in industries like
aerospace and pharma. Where we have
been less good is in ensuring the production
elements of the manufacturing process are
located in Britain. As production becomes
more automated some of the cost drivers
that pushed production overseas are disappearing
and there is potential to keep production
close to innovation.
SM: The manufacturing industry is globally
cross-linked. What does the Brexit
mean for the international supply chain?
Paul O’Donnell, Head of External Affairs of
the Manufacturing Technologies Association:
»The UK is a relatively cost effective place to
manufacture.«
PO: Brexit will mean different things in different
sectors. It is no secret that sectors with
significant tariffs in place will have a challenge
to demonstrate the continued viability of
manufacturing in the UK, especially for subsequent
export. Brexit could have substantial
effect here.
SM: Don’t you fear that many global
players will withdraw from UK and shift
production units to the Continent?
PO: The UK is a relatively cost effective place
to manufacture and will remain so for most
sectors. There are lots of reasons that companies
have located in the UK, from the language
to the ease of doing business. Most
of that will not change post Brexit.
SM: Communication on the political side
is more or less eroded. Are you in close
contact with your European colleagues
and partner associations?
Copyright: MTA
PO: Yes, we are in very close contact with
our friends and partners across Europe. The
MTA will be remaining in membership of all
the representative bodies that it is currently
in across the continent. This may become
even more important as the UK Government
loses connections that it has had for years.
SM: How do you expect cooperation
between British and European companies
will develop?
PO: At a company level a lot of cooperation
will continue. British business is very clear
that we are not pulling up the drawbridge.
SM: Does this situation also create unexpected
chances?
PO: The developing situation may prompt
companies to think more creatively about
opening up new markets and developing
new products and services.
SM: Different topic: What about the
digitalisation of the British manufacturing
industry?
PO: Digitalisation is probably the hottest topic
in manufacturing right now. The 2017 Made
Smarter Report put the opportunities created
by digital adoption for manufacturing at GBP
455 billion over ten years with 175,000 jobs
being created and as much as a 4.5% cut in
our carbon emissions. There is a lot of research
taking place at universities and institutions
like the High Value Manufacturing Catapult
that is looking at cutting edge applications,
but it may well prove that some of the
biggest gains are to be had in helping SMEs
to adopt digital solutions that are already proven.
There is a pilot scheme in the North West
of England under the Made Smarter initiative
that is looking to do just that, and we anticipate
it being rolled out nationwide.
steel market 01.2019

UK & Northern Europe 17
Copyright: Pixabay.
World leading universities like Oxford are a major strength and are driving innovation in industries like aerospace and pharma.
SM: More and more production companies
are cooperating with software companies.
Does this trend also play a role
in the British manufacturing industry?
PO: Software is routinely embedded in all sorts
of machinery, it is part of its make up. What is
interesting is that software thinking and way
of working are entering mainstream manufacturing.
Some of the most innovative young
companies we have seen recently are taking a
software focussed, start-up, approach and
deploying it to manufacturing sectors. This is
an area where the UK, which hosts Europe’s
largest Tech sector, could have an advantage.
SM: What role does additive manufacturing
play?
PO: Additive has developed beyond prototyping
into a production technology in a
number of sectors, from medical to
autosport, and more and more are exploring
its potential. One fascinating area is how it
is challenging design concepts. To realise the
achievable gains, the production technology,
additive, must be considered from the outset.
Additive parts can look very different
from more conventionally manufactured
ones – and that opens up the potential for
big improvements.
SM: Where do you see further developments
for the coming years?
PO: We believe that digital technologies
will play an ever increasing role in manufacturing,
making up more and more of the
value proposition of a wide range of products.
Thinking digital first will unlock new
ways of making things and indeed new
products – and services – for manufacturers
to deliver to their customers. It’s a
really exciting time to be in manufacturing
and we’re optimistic about its future in the
UK and worldwide.
CEO REICHMANN LEAVES BRITISH STEEL
Shortly after the Official Receiver had
started negotiations with the new investor,
CEO Gerald Reichmann announced his
departure from British Steel. »We are assisting
the preferred bidder for British Steel to
complete their due diligence and confirm its
sale. The departure of the Chief Executive
does not impact upon this process«, commented
the Official Receiver. Reichmann was
appointed CEO in April of this year. He joined
the company two years ago and previously
served as its Chief Financial Officer and
Deputy CEO.
Only a few weeks ago the Official Receiver
said: »Following discussions with a number of
potential purchasers for the British Steel group
over the past few weeks I am pleased to say I
have now received an acceptable offer from
Ataer Holdings A.S. for the purchase of the
whole business and I am now focusing on
finalising the sale. I will be looking to conclude
this process in the coming weeks, during
which time British Steel continues to trade and
supply its customers as normal. I would like to
thank all employees, suppliers and customers
for their continued support which has been
essential to get to this point.«
KLOECKNER UK INCREASES ITS WATER JET CUTTING CAPACITY
Kloeckner Metals UK has commissioned
a second Water Jet machine to accommodate
growing customer demand. Investment in
the Water Jet Sweden Premium Model NCP
4020 Multi Head Water Jet cutter will allow
the company to significantly expand the
capacities and help to meet the wider range
of 2D cutting requirements.
»The major advantage of water jet cutting is
that no heat is transferred into the component
through the cutting jet, meaning there is no
heat-affected zone (HAZ) and no metallurgical
changes in the processed material. Water jet
cutting allows efficient production, high component
accuracy and excellent surface quality
at the cut edge. What’s more, with water jet
cutting no pollutants are created during the
cutting process so it is also environmentally
friendly«, according to the company.
»The new machine will allow cutting a
range of Stainless Steel materials, whilst
achieving close machined tolerances and
delivering the high-quality products Kloeckner
is known for.«
steel market 01.2019

18 UK & Northern Europe
TATA STEEL EUROPE TO SELL AND TO CLOSE OPERATIONS
Copyright: Tata Steel Europe
Tata Steel Europe has announced the
outcome of a sales process for non-core
business units. The company announced in
May 2018 the potential sale of five non-core
businesses, enabling it to strengthen its
focus on its strategic markets. Buyers have
been found for Kalzip and Firsteel, helping
to secure 275 jobs.
One of the five non-core businesses was
Cogent Electrical Steels, which is made up
of Orb Electrical Steels, in Newport, South
Wales, Cogent Power Inc, in Burlington,
Canada und Surahammars Bruks AB, in
Surahammar, Sweden. Tata Steel has signed
Tata Steel Europe has sold some operations and will close others.
a sales and purchase agreement for Cogent
Power Inc (CPI), with Japanese steel giant JFE
Shoji Trade Corporation. CPI manufactures
cores for electrical distribution transformers
and employs nearly 300 people.
Tata Steel has also decided to retain Surahammars
Bruks AB, which makes advanced
steels for electric vehicles and employs
around 100 people. However, despite exploring
all options, Tata Steel has been unable
to find a way forward for Orb Electrical
Steels and so proposes to close the site, with
the potential loss of up to 380 jobs. Henrik
Adam, CEO of Tata Steel’s European operations,
said: »We have been able to secure
the future for almost 400 colleagues in CPI
and Surahammars Bruks. However, today’s
proposal will be sad news for colleagues at
Orb in South Wales. This is necessary, enabling
us to focus our resources, including
investment, on our core business and markets,
helping us build a long-term sustainable
future in Europe.«
The Orb Electrical Steels business has been
loss-making for several years as it struggled
to compete in the fast-moving market to
supply steels used in electricity transformers
in which customer requirements have
out-stripped the site’s capability. Converting
the site to create steels for future electric
vehicle production would cost in excess of
GBP 50 million in a highly competitive market
where Tata Steel faces higher-volume
competitors both in Europe and globally.
In addition, Tata Steel has been unable to
find a buyer for Wolverhampton Engineering
Steels Service Centre, in the UK, and proposes
to close it, potentially affecting up to 26
jobs, including a sales office in Bolton.
WOOD SECURES CONTRACT EXTENSION
Wood has been awarded a contract
extension for engineering, construction
and maintenance services on TAQA’s North
Sea assets. Effective immediately, the
18-month extension builds on a previous
agreement covering the Cormorant Alpha,
Eider, Tern, North Cormorant and subsequently
Harding offshore assets, and will
see Wood’s activities continue to support
these installations.
The work will be delivered by Wood’s
Aberdeen-based operations and engineering
teams, with construction and maintenance
operatives working offshore. Dave
Stewart, CEO of Wood’s Asset Solutions
business in Europe, Africa, Asia & Australia,
comments: »We are delighted to continue
our long-standing relationship with TAQA
having first partnered with them to support
these North Sea assets over a decade
ago.«
SANDVIK TO INVEST IN ADDITIVE MANUFACTURING
Sandvik has acquired a 30% stake in privately
owned Italian company Beam IT, a provider
of metal Additive Manufacturing (AM)
services and advanced end-use components.
»The investment in Beam IT will complement
our existing offer in Additive Manufacturing.
It is also in line with Sandvik’s strategic ambition
to become a leading solution provider for
the wider component manufacturing industry,«
says Lars Bergström, President of Sandvik
Machining Solutions.
Beam IT is a trusted supplier of metal AM
end-components to demanding industries,
including automotive, energy and aerospace,
and holds several relevant quality certifications
to serve these industries. The company
has more than 20 years of experience within
Additive Manufacturing (AM) and has more
than 20 Powder Bed Fusion printers installed.
»The AM sector is developing fast and there is
a need for AM-specialist-partners with the
advanced skills and resources required to help
industrial customers develop and launch their
AM programs. With this investment we provide
our customers with the opportunity to access the
complementary and combined power of Sandvik
and Beam IT,« says Kristian Egeberg, President of
the Additive Manufacturing division in Sandvik.
In 2018, Beam IT generated revenues of
about 70 million SEK, with its 38 employees.
Sandvik has the right to further increase its
stake over time. The parties have agreed not
to disclose the purchase price.
steel market 01.2019

UK & Northern Europe 19
STEELTEC STRENGTHENS SALES OPERATIONS IN SCANDINAVIA
Bright steel producer Steeltec has restructured
its Scandinavian sales operations.
The sales team is now headed by the
sales managers Johan Thyni in Boxholm,
Sweden and Brian Nielsen in Nørresundby,
Denmark. Steeltec – a company of the
SCHMOLZ + BICKENBACH Group – has
enhanced its two north European sites and
has optimized the quality of its regional
technical consulting and service capabilities.
As a result, Steeltec has further improved
the speed and reliability with which it
supplies its bright steel products. The two
north European sites are Steeltec’s link between
the company’s bright steel production
facilities in Germany and Switzerland
and its customer base in the Scandinavian
market.
»With the restructuring of its Scandinavian
sales offices, Steeltec is now more
than ever able to offer customers the optimum
bright steel solution for their needs,«
the company states. Products are either
dispatched from warehouse stock held in
Boxholm, Sweden or, in the case of large
quantities, are shipped directly from Steeltec’s
production sites. Products supplied
from Boxholm are also cut to length and
Brian Nielsen
Johan Thyni
chamfered. Steeltec’s reliable, rapid and
flexible product delivery is always preceded
by comprehensive technical advisory services
provided by Steeltec engineers.
»No other steel provider can do what we
do and process an order for several tons of
steel and ship it directly from the steelworks
to the customer within two days,«
says Sales Manager Brian Nielsen, explaining
the capabilities of Steeltec’s Danish
operations. That sort of response time
applies to standard free-cutting steels with
and without added lead and to S355+C.
Brian Nielsen’s Swedish colleague Johan
Thyni adds: »We deliver customer- and
application-specific special steel solutions
backed by locally based, premium-quality
customer services.«
Copyright (2): Steeltec
SSAB TO ACQUIRE ABRASERVICE
SSAB has entered into an agreement
to acquire Abraservice Holding, which
provides wear parts and complete solutions
in quenched and tempered steels
(Q&T). Abraservice is currently part of the
French-owned Jacquet Metal Service
Group. Abraservice had net sales of
around SEK 800 million in 2018. The
acquisition supports SSAB’s strategic target
of global leadership in Q&T and
advanced high-strength steels as well as
providing leading value-added services.
Subject to approval of the relevant regulatory
authorities, the transaction is
expected to close in the second half of
2019.
»The Abraservice network is well
aligned with SSAB Services strategy of
providing products and services to machine
builders and the aftermarket business.
The acquisition will help us to further
improve our direct relationship with
customers and end-users, as well as
address new market segments. The workforce
of Abraservice has recognized experience
and the skills of local management
and employees will combine with SSAB
in an excellent way«, says Gregoire Parenty,
Head of SSAB Services.
The acquisition of Abraservice provides
SSAB with the unique opportunity to
extend the Q&T offering further in the
industrial value chain allowing our customers
and end-users, including our brand
program members, to rely on additional
services, parts and complementary products.
It will increase SSAB’s shipments
through the profitable service channel,
where demand is more stable over the
business cycle compared to shipments to
OEMs.
Abraservice has approximately 200
employees, working at 10 processing
centers and 12 sales offices across 11
European countries. The largest processing
centers are in France, Germany and
Italy.
Abraservice will continue to operate as
an independent unit within SSAB Services,
as part of SSAB Special Steels, and
remain under its own name. The company
will benefit from SSAB support and
expertise, extended product range and
global geographical coverage to expand
its strong market position in distribution
and fabrication of parts in Europe and
beyond.
steel market 01.2019

20 UK & Northern Europe
Outokumpu moves forward with
digital manufacturing
Plant in Tornio to be transformed to the most digitalized operation
Outokumpu is aiming to fully digitalize its biggest factory in Tornio, Finland, transforming it into the most
digitalized and most cost-competitive stainless steel operation in the industry by 2020. After Tornio, digital
manufacturing is planned to roll out to Outokumpu’s other production units internationally.
By digitalizing its Tornio operations,
Outokumpu aims to significantly reduce lead
times to customers through step-change
improvements in reliability, quality and supply
chain management, and to gain up to
100,000 tonnes of freed capacity from the
existing production assets. The Tornio unit is
currently already the biggest, most efficient
and most sustainable stainless steel factory
in Europe, covering the entire production
chain from mining and smelting to melting,
hot and cold rolling and finishing of high
demanding stainless steel products.
Partnership with Microsoft
In a multi-year partnership with Microsoft,
Outokumpu is building an industrial digital
platform, Outokumpu Digital Platform
(ODP), based on Microsoft Azure. During the
first six months of 2019 the joint Outokumpu
and Microsoft project team has created
this platform, including the first two concrete
Jan Hofmann
Copyright: Outokumpu
solutions, already expected to bring considerable
improvements in quality performance
for the Tornio mill.
»The digitalization of our global production
base is a core element of our must-win
battle digital transformation,« says Jan Hofmann,
EVP – Business Transformation & IT,
Outokumpu.« We are aiming for a step
change in the manufacturing of stainless
steel through artificial intelligence based
process optimization, predictive maintenance
and quality control. We have entered into
a partnership with Microsoft to create a new
benchmark for the digitalization of the process
industry. The transformation of our biggest
plant in Tornio by 2020 will create the
future blueprint also for the subsequent
digitalization of our remaining plants.«
»At this point in history, all businesses need
to digitally transform to thrive, if not to survive.
Building a digital mindset is key to develop
new capabilities that draw new insights out
of data and convert those to intelligent
actions to drive new outcomes. By leveraging
Microsoft’s advanced cloud and AI technologies,
Outokumpu is creating new business
value, and serving their customers with faster
deliveries and increased quality. Since the
heart of every company is its culture, Outokumpu
is addressing its change management
holistically and empowering its workforce to
succeed with data-driven decision making,«
said Çağlayan Arkan, Global Lead Manufacturing
& Resources, Microsoft.
STALATUBE TO PRODUCE ITS OWN CLEAN ENERGY
Stalatube will start producing its own
clean energy. The Finnish company is going
to install a solar photovoltaic system on the
roof of its headquarters in Lahti. The solar
power plant will be the region’s largest one
installed on an industrial property. Stalatube
specializes in stainless steel hollow sections.
The solar power plant has a power output
of over 300 kWp and it’s composed of 1150
solar panels corresponding to one hectare or
half of the roof area of Stalatubes premises
in Lahti. According to the company‘s calculations,
the output of the photovoltaic system
will cover the electricity consumption of
lighting, information technology, building
technology as a whole and the stand-by
electricity of production equipment. At its
best, solar energy fulfills almost a third of the
company‘s electricity needs in Lahti.
Stalatube’s solar power plant‘s repayment
period will be about 12 years. Solar panels
have a lifetime of 25-30 years, and even
then of their solar energy collection capacity
is at 80 %. The solar power plant produces
electricity completely free of pollution, so the
investment is not only economically sensible
but also ecological. »Respect for the environment
is one of Stalatube‘s core values, so the
use and production of clean, renewable
energy is a natural development for our
company,« says Managing Director Jukka
Nummi. Stalatube will also install a solar
power plant in its Netherlands office this
year. »Now is the time to invest in solar energy,«
says Kimmo Myyrä, Operations Manager
at Stalatube. »In the long run, electricity
prices and taxes will probably only increase.«
The technology and quality of photovoltaic
systems have also evolved from the early
days, and their prices have fallen. »If your
property has a new roof or is about to be
renovated in the near future, consider installing
solar panels. In this case, the lifetime of
the roof and solar panels will run at the same
pace,« Myyrä hints.
steel market 01.2019

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22 Steel International
Long steel market currently depressed,
says Irepas, players agree
Circumstances are becoming more difficult
The global long steel products market is depressed at the moment as circumstances are becoming more difficult.
It has become a buyer’s market and it is difficult to secure orders at reasonable prices.
It might take longer for a balance to be
reached, said Irepas, the International Rebar
Exporters and Producers Association in a
report published in September. By then,
steel prices had gone down, following the
recent tendency of raw material prices. Iron
ore prices dropped by 25% within 30 days
and coking coal prices were down 10%.
Iron ore collapsed from a high of USD 120/t
at the end of July to levels of around USD
85/t.
Sharp drops in raw material prices
allow prices of under USD 400/t
The cost of steel production at BOF mills had
come down to around or under the USD
240/mt level and the spread for semi-finished
steel to around USD 150/t. It is difficult
to increase steel prices because there is
insufficient growth in demand for steel and
the new base prices for iron ore and coking
coal allow some companies to run prices
below USD 400/t without incurring losses,
Irepas said.
Ferrous scrap prices have trended down
throughout the late summer and became
further depressed as Turkish capacity utilization
dipped below 50%. Scrap inflows have
begun to slow down as an effect of rapid
price adjustments and slowing industrial
activity. Freight rates have been soaring
during late August and early September. Production
cuts have become more pronounced
in late summer as industry and construction
in Europe is not ramping up to the same
extent as last year, Irepas noted.
Positive expectations for fourth quarter
postponed until first quarter next year
Steel ingots
Under such circumstances, many steel producers
started slowing down their operations,
extending maintenance and idling
facilities. However, inventory levels would
also need to come down in order to see
some stability. Accordingly, Irepas postponed
its positive expectations for the fourth quarter
to the first quarter of next year. While
global business has deteriorated, business in
the USA is stable. Domestic mills in the USA,
which are still enjoying a 25 % safety margin,
are adjusting their prices to keep them
on par with possible imports, thereby
making the import business very marginal at
best.
Meanwhile, the EU market will be entirely
closed to Turkish exports until next April
which means that exports from Turkey will
inevitably slow down. Turkish exports to the
US market have resumed for just a couple of
players but sales are still deemed risky due
to the difficulties in predicting the next move
on the US side. The top three markets for
Turkish rebar exports have been Yemen, Israel
and Singapore, which do not provide
security and confidence for the long term.
Steel prices in EU fail: real
improvement unlikely before 2020
With the quota allowed for imports exhausted
and given the lack of a significant
threat to EU mills from other third countries,
EU prices should have increased after
the summer holidays. But the downward
trend of ferrous scrap and iron ore prices
put a lot of pressure on the EU markets.
Even producers of high carbon content
wire rod have been trying to sell mesh-grade
wire rods, which adds salt to the
wound, Irepas noted. As a result, prices
have not moved up despite good demand.
It is difficult to expect real improvements
until next year.
The current status of the market can be
described as fluctuating and unstable, Irepas
finds. There is no market improvement on
the horizon and therefore the situation is
unsatisfactory. At the time, Irepas issued its
statement in September, the prices paid by
stockholders to mills for rebar north of the
Copyright: Shutterstock
steel market 01.2019

Steel International 23
Alps were given as EUR 495 to EUR 505/t
delivered. It seems that deals in northern
Germany and Benelux were some EUR 10
higher than those in southern Germany and
particularly rural areas. The south is commonly
known for its friendlier pricing climate,
given the proximity of Italy and lower
offers from there. The gap between country
and city seems to be a more recent thing.
Cities do better than countryside
There are hotspots where prices and volumes
match well, like Stuttgart or Hamburg,
where demand remains high. Distributors
from the outer areas are trying to snatch jobs
at sites in the cities. »You have an advantage
if you are close to a metropolitan area,« one
stockholder’s manager says.
On the Ruhr, one manager stated that »a
base price of EUR 230 is certainly possible if
you go for high tonnages.« Elsewhere,
further afield, another states that »I can get
it for less if I go for 1,000 tonnes.« But then,
he cautions that these days he would not
buy that much.
The obvious problem of the falling prices
is that buyers prefer to hold back orders
because prices may still keep dipping bit by
bit, so that the downtrend is driving itself.
»Plus, we are soon nearing Christmas, too.
This will be an interesting period coming
up,« the manager says.
He notes that this price level is scratching
on the margins of the mills, too. »But they
don’t care. Rather than have production halt
for some days, it costs them less if they keep
producing and sell at dumping prices; that’s
what you call risk minimization.«
Strong construction but weakening
prices
Although particularly Germany is looking
back at a couple of years of extraordinary
construction activity, the price for rebar has
kept dwindling anyway since an intermediate
peak in spring, also in the neighbouring
northwestern markets. Those two observations
seem to be oppositional, and in the
course of the year, various sources have offered
different opinions as to how profitable
business for the players along the chain
actually is. Some argue that construction
firms as well as rebar mills and distributors
are all caught in a continuous rat race in
which they sacrifice prices to snatch orders.
Possible overcapacity of bending
shops
An explanation offered by another manager
from a stockholder in Hesse is that overcapacities
of bending facilities may be a cause
for the situation »Distributors have built up
quite a lot of bending capacities, over-proportionally
to the demand volume from the
customers, and now we have an imbalance.«
According to him, the expansions have
mainly occurred at big chains, which over
the past five years have added some 70%
bending capacity, he estimates.
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24 Steel International
Nord Stream underwater tie-ins. Each of the two pipelines is built in three sections. Once completed, the three sections must be welded together.
Nord Stream 2
A big project causes big political waves
The construction of the Nord Stream 2 is reportedly 75% complete. Nevertheless, the project keeps creating much
irritation among the European countries. The complex network of interests could become a writing on the wall for
future big pipeline projects.
The follow-up twin of the first Nord
Stream pipeline has long been unpopular
with many Eastern European countries who
feel disadvantaged by the bilateral project,
mainly because it takes capacity from pipelines
through their territories and, consequently,
income from transit fees. Hardest
hit would be Ukraine, which earns an estimated
USD 2 billion per year from such fees.
Since war has broken out between Russia
and the Ukraine, the case has become even
more delicate. The European Commission
has also expressed objections in the past.
Just last September, the designated vice president
of the European Commission, Margrethe
Vestager, said she saw »no necessity«
for a second Nord Stream pipeline. In spring
it was criticized by the USA – by Democrats
as well as Republicans - which has increased
the concerns within the German government
about the project. The USA expressed
that European partners and especially Germany
will make themselves too dependent
on Russian energy at the cost of Ukraine.
A long and winding conflict
in the Baltic Sea
Copyright (3): Nord Stream
Solitaire passes under Great Belt Bridge.
Meanwhile, the US government has also issued
the threat that companies involved in Nord
Stream 2 could face a ban on North American
business. This threat would primarily address
the energy companies that are stakeholders
in the project –Gazprom, Germany’s Eon and
Wintershall, the Netherland’s Gasunie, and
France’s Engie - but potentially also the plate
& pipe makers involved.
According to the plan, the works are projected
to be completed by the end of this
year. At this stage, the work of the plate and
pipe makers involved has long been done,
and paid. Nord Stream 2 required around 2
million tonnes of large-diameter tube, which
was supplied by Europipe, OMK and ChelPipe.
The problem could be that similar pipeline
projects will be put on hold in view of the
steel market 01.2019

Steel International 25
Loading of pipe carrier vessel ocean spirit.
troubles they may cause. Examples are the
Turkish Stream pipeline through the Black Sea
and the TAP pipeline from Turkey via Greece
to Italy.
Many potential pipeline projects
on hold
In fact, »new projects for large-diametre
pipes are not in sight,« one keen observer of
the pipeline market said already late last
year. Although up to 15 big international
pipeline projects are under discussion, they
all have in common that »…they have not
reached the state of commissioning,« says
the chief of Salzgitter’s Mannesmann unit,
Clemens Stewing. The current insecurity
over global politics with its various trade barrier
measures is adding to reservation when
tackling new projects.
This is painfully obvious from the empty
pages of the order books at Europipe,
which is jointly owned by Salzgitter Mannesmann
and Dillinger Hütte. The lull of
orders caused Europipe to announce short
working hours that started in February. Of
course, »phases of higher or lower utilisation
are not uncommon in the project-based
business, and we are looking to the
future with optimism,« the company stated
earlier this year.
Meanwhile, platemaking partner company
Salzgitter Mannesmann Grobblech
(SMGB) has become active in making itself
more independent from Europipe. This
means that it must become more flexible in
making the production of smaller lots economically
viable, and to promote its extra
widths of up to 4,200 mm. Under this
scenario, it is little wonder that the German
plate market is facing an overstocking of
plate, and relatively low demand. The market
price for the product has slowly dwindled
for most of the year. Whilst mills try to
keep the price of standard grade S235 at
above EUR 600 per tonne, many stockholders
say that they would, in fact, pay no
more than that and actually less. The estimates
in September were wide ranging,
from EUR 600/tonne down to EUR 560, or
even lower.
The German government, of course, is
not enthusiastic with the idea of stopping a
venture of this dimension. In a first move of
concession, the head of the German Conservatives,
Annegret Kramp-Karrenbauer – a
potential candidate to run for chancellor at
the next elections – suggested last spring
that the volumes of gas ordered through the
pair of pipelines could be limited.
Tube 2020: exhibition space larger than ever before
In spite of the insecurity over major pipeline projects, the registration
figures for Tube 2020 in Düsseldorf are already very promising.
The two international leading trade fairs for the wire, cable and tube
industries, wire + TUBE, will be held at the Düsseldorf exhibition
centre from 30 March to 3 April 2020.
As global information and business platforms for the key players
in these industries, wire and Tube attract more than 2,500 enterprises
from all over the world. Organisers have posted a strong
increase in attendance from Turkey, India and Taiwan, already
exceeding the final exhibitor numbers of 2018. Additionally, strong
participation from the traditional exhibitor regions Italy, Spain,
Germany, Austria, Switzerland and Central and Eastern Europe
points to new record exhibitor figures for next year. »With the new
multi-purpose Hall 1, we offer our exhibitors the latest in terms of
technical facilities and ultimate convenience,« says Daniel Ryfisch,
Deputy Director Metals and Flow Technologies at Messe Düsseldorf.
In exhibition halls 1, 3, 4, 5, 6, 7.0 and 7a Tube 2020 will
present the complete process chain in the tube industry. Its extensive
portfolio ranges from machinery and equipment for tube
manufacturing, forming and processing, to raw materials, tubes
and accessories, second-hand machinery, process engineering
tools, auxiliaries, measuring and control equipment as well as test
engineering. These are complemented by tube trade, tube bending
and tube sawing equipment, OCTG technology, pipelines, profiles,
machinery and plastic tubes. So far, just under 52,000 square
metres net have been rented out – by comparison the exhibiting
companies occupied a total of 52,436 square metres at the previous
event in 2018.
steel market 01.2019

26 Steel International
Copyright (4): Kallanish Commodities
Impressions of the first »Saudi International Iron and Steel Conference«
First Saudi Steel Conference sets stepping
stones for local steelmaking
Engineering steels on the agenda
The first Saudi International Iron and Steel Conference, which was held in Riyadh on 16-18 September, saw more
than 800 delegates from global iron and steel companies attending. It was organised by the country’s National
Committee for Steel Industry in cooperation with Kallanish Commodities, under the patronage of the Minister of
Industry and Mineral Resources Bandar bin Ibrahim Al-Khareef. The organisers aimed to encourage and attract
investors.
Saudi Arabia’s steel industry needs to
ensure that it has the right product mix to
cater for the kingdom’s economic expansion,
the newly-appointed Saudi industry and
mineral resources minister Bandar bin Ibrahim
Alkhorayef said at the start of the event.
The country currently has a »… very narrow
base« of production, which must be expanded
to added-value products.
Two important authorities have been created
in Saudi Arabia. One is the local content
authority that will ensure that a greater
deal of local input materials are used in
production, while the other is the foreign
trade authority that will help protect local
steel market 01.2019

Steel International 27
producers. The latter »… shows that the
government is really keen on abiding by
World Trade Organisation rules, but at the
same time we don’t want people to take
advantage of our market,« Alkhorayef
emphasised.
Thanks to the country’s Vision 2030 initiative
and the development of economic
cities, the future is bright for Saudi’s construction
industry. As well as industrial expansion,
the kingdom will see huge investment
into new sectors such as tourism and entertainment.
There are opportunities for steel
suppliers across a range of existing and
future industrial clusters, from automotive,
to shipbuilding, to military. The strong drive
to increase local content presents an opportunity
for investors to develop capacities for
flat and other value-added steel products
not currently available in Saudi Arabia. A key
message during the conference was that this
industrial and economic development should
be integrated between government authorities,
investors and suppliers.
Saudi Arabia has 780 million tonnes of
iron ore reserves that can be utilised to provide
raw material security for the country’s
steelmakers, present and future. Feedstock
security is crucial, especially when raw materials
prices increase far quicker than finished
steel prices, as they have this year. And, »as
we become more environmentally conscious,
we should consider technology that can
recycle EAF dust and reduce steel industry
waste,« the minster noted.
Establishing a steel academy
To support future investment, Saudi Arabia
must focus on implementing trade measures
to protect local production. Also, as was
learnt from the experience of India and China,
quality standards are necessary to prevent
sub-standard imports. Very importantly, in
order to attract foreign investment, Saudi
needs to be able to compete with countries
with competitive cost bases, such as India and
Ukraine. To do this, it is crucial that Saudi Arabia
provides natural gas supply and competitive
energy prices for industry. Also, the country
must introduce strict rules for local steel
content requirement in national projects to
support local steelmakers and encourage
further steelmaking capacity investment. As
an example, the USMCA trade agreement
between the United States of America, the
United Mexican States, and Canada stipulates
that 75% of automotive content is made in
North America.
It would be a privilege for the National
Committee of Steel Industry to cooperate
and work together with the Indian Steel
Association, as mentioned at the conference
by association Secretary General Bhaskar
Chatterjee. Steel will be integral to the
development of Saudi’s economy. And the
annual organisation of this conference will
allow the steel industry to stay at the top
of the agenda. Another crucial factor is
investment into education to prepare the
next generation of bright young engineers
that will drive the steel industry forward.
In this context, the chairman of the conference
and the National Committee for
Steel Industry, Eng. Rayd Al-Ajaji, emphasised
that the idea of establishing a specialised
academy within the iron and steel
industry to train the kingdom’s youth is a
key part of the committee’s agenda. Preparing
the next generation of engineers to
work in the steel industry will encourage
foreign investment into the Saudi steel
sector, he noted.
National production of special steel grades
is becoming necessary for the kingdom's
ship building, automobile, oil and gas and
defence applications, said senior consultant
Anjan Mukherjee. »A series of consultations
with the Saudi government and an extensive
survey of the existing capacities concluded
that only few additional facilities for upgrades
are needed in order to begin producing
high strength micro-alloyed steel grades for
commercial and defence industry applications,«
Mukherjee noted.
Internationally, Saudi Arabia should use
its G20 presidency as an opportunity to
focus on tackling global steel overcapacity;
locally it should implement trade defence
measures to protect local steelmakers and
encourage further steelmaking capacity
investment, delegates were heard proposing
at the conference.
steel market 01.2019

28 Steel International
Wire rod supply becoming scarcer in Europe
Processor firms fear forced production cuts
European makers of fences, wire mesh and steel cable are extremely concerned that they might be left starving for
enough input material. Wire rod has become increasingly scarce over the past few years. On the one hand,
integrated steelmakers that make wire rod prefer to keep the material for their own value-added products, and
things have become worse since the EU closed the doors on imported steel products. Although there is an obvious
shortage of wire rod in Europe, imports are, nevertheless, restricted by safeguard measures.
Well before the international trade conflict
caused the EU to impose measures last
year, independent companies buying wire
rod had already formed an association to
voice their misery. In August 2016, a number
of smaller companies formed EUNIRPA, the
European Non-Integrated Wire Rod Processors
Association, which is fighting to maintain
availability of wire rod on the European
market. The founding members of EUNIRPA
are Exel Fil Belgium, Exel Fil Spain, Fapricela,
Gallega de Mallas, Intersig Belgium, Intersig
France, Sirme si Cabluri and Van Merksteijn
International. Several more have since
joined. In total, these companies represent
more than 3.2 million tonnes of annual processing
capacity.
Big mills keep material to themselves
The independent processors criticize the fact
that integrated mills prefer to keep their wire
rod for in-house processing. Apparently, the
big mills have become stronger by moves
such as the takeover of wire mesh fabricator
Drahtwerk Horath by Riva Germany. »Riva’s
strategy is clearly that it wants to go it alone,
processing its wire rod at its own units,«
EUNIRPA said at the time of the takeover in
early 2017, noting that the only alternative
source for the material in Europe is Celsa.
Furthermore, the indepentent processes
reproach the mills with having encouraged
the European Commission to build a trade
barrier against imports. Back in 2016, EU wire
rod producers already stated they were considering
antidumping action against imports
from Belarus, Russia, Turkey and Ukraine. In
response to this, EUNIRPA made a strong statement
asking Eurofer not to proceed with
any such initiative. Since then, things have
Copyright: Shutterstock
become worse for the independents. In summer
this year, EUNIRPA said its member were
»extremely disappointed« by the European
Commission's final review proposal on safeguard
measures regarding wire rod.
»It is incomprehensible that a European
institution such as the Commission does not
even bother to look into the specific details
of mesh grade wire rod,« said EUNIRPA
chairman Kris van Ginderdeuren, of Dutch
firm Van Merksteijn. In July, the association
proposed that the quota for product category
16 should represent the yearly average of
the volume of imports of wire rod in 2016-
2018, rather than 2015-2017, which increased
by 20%, rather than 5%.
A well-documented shortage of wire
rod
The ever-increasing lack of wire rod available
on the free market in the EU is reluctantly
forcing the association companies to source
well over 50% of their needs from non-EU
countries, EUNIRPA has stated in the past.
»When definitive safeguard measures were
imposed, the uniqueness of the wire rod market
was absolutely not taken into consideration,«
the association argued. There is a
well-documented shortage of wire rod on the
EU market due to an increase in consumption
and captive use, it claims.
Similar to the price of rebar, the price for
wire rod from northwestern domestic EU
works has dipped over the recent months,
and in September was at around EUR 480/
tonne. But, EU mills were encouraged to
bring prices up in the course of autumn now
that the import quota is filled.
»Licence to kill«
European makers of fences,
wire mesh or steel cable are
extremely concerned that
they might be left starving
for enough input material.
What makes things worse is that the quotas
given daily on the EC’s website are not
necessarily correct. »You make a move and
take a risk, but due to the faulty figures we
paid some EUR 430,000 of duties in February,«
one manager says.
Little wonder that the smaller wire rod
companies feel left alone by politics. Hence,
van Ginderdeuren uses harsh words to describe
the balance of power: »It seems like the
Commission is giving the integrated mills the
red-carpet treatment towards full dominance.
We can interpret this as a licence to kill the
non-integrated mesh makers,« he says.
steel market 01.2019

Steel International 29
Focus on construction
Germany‘s long construction boom has reached its zenith
The German construction boom has lasted far into this year, but towards summer, first signs came that a slowdown
cannot be avoided forever.
In May, the latest statistics available by
industry association Hauptverband der Deutschen
Bauindustrie (»Hauptverband«) showed
that orders were still up year-on-year.
But the figures differed quite a bit depending
on the segment. While residential construction
remained strong, public construction
saw a dip in real terms. The dip apparently
kicked in in May, as the period from
January through May still saw orders up
6.2% in real terms. The order backlog in
June was 4.3 months.
Activity still remained at a high level. »Due
to the high order backlog, construction companies
are still well utilised,« Hauptverband’s
managing director Dieter Babiel said in September
at the release of the figures for the
first five months. But he cautioned that the
boom cannot defy the overall economy forever.
»The increasing insecurities due to trade
disputes and Brexit are toxic for the economy.
Companies will be putting their investments
on hold, and this will sooner or later
filter through to the construction industry,«
he said.
Earlier, on the basis of the first quarter,
Hauptverband was still all cheers. At a
mid-year press conference, the Berlin-based
association came up with an increase
of the already optimistic outlook it had
presented in January. »The year in construction
2019 will be better than anticipated
at its beginning. That’s why we lifted
our forecast for the nominal growth of
revenues from 6.0% to 8.5%,« its president,
Peter Hübner, said.
At the end of March, the construction
industry had the highest order backlog ever
measured, EUR 53 billion. Over the past ten
years, spending in German construction rose
2.5% on average each year, according to
Hauptverband’s chief economist Heinrich
Weitz. He also highlighted the growing share
of foreign construction workers filling the
demand for manpower.
Copyright: Sülzle Stahlpartner Nordhausen
These days, a large number of trainees are
Croatian and others refugees from places
like Syria.
What’s puzzling though is that in defiance
of strong construction activity, reinforcing
bar prices in Germany and the Benelux
have dropped quite a bit in the course of
the year. The base price temporarily reached,
or surpassed, EUR 280, but by the
end of the summer came down to EUR 250
or less in many places.
This development is slightly bizarre, given
a construction industry that has kept doing
well, and limited rebar supply due to seasonal
mill closures for summer maintenance.
»Normally, this used to bring the price up,«
one German buyer comments.
Many blame the steelmakers for bringing
down prices without urgency, for the sake
of gathering orders. But others see the crucial
point elsewhere along the chain. They
argue that construction firms are all caught
in a continuous rat race and that that overcapacity
at bending facilities may be a factor
behind the situation. »Distributors have built
up quite a lot of bending capacities, overproportionally
to the demand volume from
customers, and now we have an imbalance,«
one stockholder said. According to him,
the expansions have mainly occurred at big
chains, which over the past five years have
expanded bending capacity by 70%, he estimates.
Furthermore, he sees a gap between
urban and rural areas. »There are hotspots
where prices and volumes match well, like
Sülzle Stahlpartner’s
Nordhausen branch
Stuttgart or Hamburg, where demand is
keeping up,« he comments. And, of course,
distributors from the outer rims are trying to
snatch city jobs. »You have an advantage if
you are close to a metropolitan area,« the
manager adds.
Sülzle supplies rebar to
Salzgitter
Normally, flat steel makers and producers
of rebar have little common ground. But
currently a major project in Lower Saxony,
allegedly the biggest industrial investment
in the state of Lower Saxony, has Salzgitter’s
heavy plate unit Ilsenburger Grobblech
link up with Sülzle Stahlpartner, a
distributor chain for mainly rebar.
Sülzle Stahlpartner’s Nordhausen
branch is supplying around 8,000 tonnes
of reinforcing steel and 300 tonnes of
bored piles for the new heat treatment
plant of Ilsenburger Grobblech GmbH
(ILG). At EUR 150 million, it is the highest
investment Salzgitter has ever carried out
at Ilsenburg. Sülzle supplies this construction
project on behalf of contractor ARGE
Neubau Adjustage Ilsenburg.
The new heat treatment line includes
two roller hearth furnaces, a MultiFlex-Quench
with a water treatment system,
a straightening machine and a preservation
line. Commissioning is scheduled
for mid-2020; the annual capacity is
projected at 200,000 tons.
steel market 01.2019

30 Blechexpo, strips & sheets
Blechexpo 2019
Sheet Metal and Joining Technology Highlights
The 14th Blechexpo, in combination with the 7 th Schweisstec, will be covering all aspects of sheet metal, pipe and
profile processing between 5 - 8 November this year. The two complementarity industry events provide expert with
comprehensive product and service offerings dealing with all facets of thermal and mechanical processing, as well
as welding, joining and fastening technology.
The Blechexpo-Schweisstec trade fair
duo takes place once every two years, taking
turns with the Euroblech fair in Hanover.
Months before the event opens its doors it
was already clear that this year will see more
exhibitors, require more exhibition floor space
and be more international than two years
ago. By June of this year, an increase amounting
to more than 150 primary exhibitors and
a 15% rise in floor space compared to 2017
was confirmed.
A total of roughly 1,500 exhibitors will set the
tone in nine exhibition halls at Blechexpo-
Schweisstec in Stuttgart. Bookings and reservations
from foreign countries have doubled compared
to 2017. More than a year ago, it was
already clear that the 2017 figures for technology
companies from Italy, China, Turkey and
Spain will be exceeded. The number of exhibitors
from some countries has even been doubled,«
said project manager Georg Knauer.
The organizers attribute the reason for this
surge to the strictly practical-oriented concept
of the trade fair duo: Blechexpo-Schweisstec
claims to cover all relevant
issues and trends relevant to the digitalised,
automated world of sheet metal and metal
processing.
As a structural material, sheet metal
keeps dominating in machinery and
equipment manufacturing
As a structural material – along with pipe
and profile materials – sheet metal has evolved
into a common alternative to conventional
cast iron, steel and plastic constructions.
Lightweight design and modular component
systems characterise the image of
modern, material, weight and cost-saving
vehicle, machinery and equipment manufacturing
– all the more reason to attend the
Blechexpo and Schweisstec.
Blechexpo 2017
Precision cutting, stamping and forming of
high-strength and ultrahigh-strength sheet
metal are just as much on the forefront at
Blechexpo as innovative machine building
solutions, tooling with a long service life and
changing equipment for rapid tool changeovers.
Pre-processing and final processing,
module assembly and surface finishing of
optically sensitive components, as well as
lightweight design and construction solutions
are also at the centre of attention. The
technical event also covers associated issues
from handling and quality assurance, to digitalisation
and automation solutions.
All participating companies will profit
from the trade fair’s international setting in
2019, because it is only possible to gain
truly comprehensive insights into the respective
sales markets and their supply
chains at a world class technical event. »We
feel that our concept targeted at strict process
orientation is being confirmed by the
international influx of leading companies.
Demonstrating the practicality and applicability
of the exhibited technologies for routine
industrial use at a technical trade fair is
obviously being very well received throughout
Europe, as well as in the USA and in
China,« the organisers say.
A new floor plan and exhibitor distribution
concepts are providing an even more
realistic and practical orientation towards
routine daily practice. They guide and
bundle the flow of visitors in a thematic
fashion. Experts are guided to the offerings
in which they’re explicitly interested in a
targeted manner with minimal legwork.
New space for processors in hall 10
Whereas leading sheet-metal processing
companies will unveil their innovations in
halls 1 and 3 and emphasis will be placed on
the issue of stamping technology in halls 4
and 5, the latest technologies covering all
aspects of pressing and forming will be presented
in hall 8 of the Stuttgart Exhibition
Centre. Visitors with an interest in cutting
(hall 5) or welding and joining (hall 7) will
also be able to explore concentrated offerings
and, if interested, move on to other
segments with minimal distances to walk.
The new, comparatively larger hall 10 now
also offers adequate space for expanding
offerings in the field of steel processing services.
Numerous new exhibitors are taking
advantage of this opportunity to introduce
themselves to global expert visitors, and
established, longstanding participants will
be able to increase their booth floor space
as well. A longstanding wish of the exhibitors
and the exhibitor advisory committee
will thus fulfilled.
steel market 01.2019

Blechexpo, strips & sheets 31
Wilhelm Schröder joins plastic with metal
Interaction of metal and plastic in hybrid technology
Wilhelm Schröder, a specialist in metal plastic compounds, will be represented by a team of experts at the
14 th Blechexpo in Stuttgart from 5 to 8 November. In Hall 4 at Stand 4102-1, trade visitors can get their own
impression of the company's know-how in the field of intelligent metal-plastic hybrids.
Wilhelm Schröder is a specialist for metal-plastic compounds.
The interaction of metal and plastic in
hybrid technology gives Wilhelm Schröder
the necessary edge to meet its customer's
requirements and help them grow, the German
company claims. Among Wilhelm
Schröders customers are companies in the
automotive industry, the automotive supplier
industry, the white goods industry and the
medical technology sector.
Wilhelm Schröder notes that it is already
involved in the product development phase
as a technical consultant and developer. The
company's own tool production specialises
in computer-aided 3D design and the manufacture
of stamping and injection moulding
tools. Over the years, the company has kept
developing its portfolio in order to offer
innovative solutions and products.
Since 2017, the company belongs to the
OKE Group, which manufactures sophisticated
technical plastic components for various
industries such as the automotive and furniture
industries. With the takeover, Wilhelm
Schröder has become even more international.
As a result, customers benefit from more
efficient work processes and lower costs, the
company notes. »We are looking forward to
explaining our comprehensive portfolio of
hybrid solutions in detail to visitors at Blechexpo.
We will have competent members of
staff at our stand, who will answer visitor's
questions in detail.«, says Alexander
Zuchowski, head of technical sales at Wilhelm
Schröder.
Copyright: Wilhelm Schröder
MicroStep: Production management with MPM:
Control and efficiency in all processes
MicroStep‘s Machine Production Management
(MPM) software suite provides computer-aided
process planning (CAPP) features
for automation of the workflow on
CNC machines and production lines.
It is an integrated system of order processing,
nesting, stock management, machine
operation planning and evaluation which
interconnects pre-production data, CNC
machine control systems and MicroStep‘s
automatic nesting software AsperWin. It
helps reduce work-in-progress, save material,
and eliminate operator errors.
A substantial part of MicroStep‘s product
portfolio is focused is on high-end customers
with large production facilities, who
put emphasis on efficiency and a high level
of automation. Complying with these
requirements, MicroStep offers an in-house
developed CAPP application called MPM
(Machine Production Management), which
is an integration platform for different areas
of the business – material storage, order
management, creation of cutting plans,
and CNC machines operators - allowing
automation of information flow among
them.
MPM software is primarily aimed at facilitating
efficient machine use. Used to its
full potential, the machine‘s interface offers
the operator a cutting plan together with
the location of the specific material (plate,
pipe, etc.) in the warehouse. The operator‘s
task is to place the material in the machine's
working zone, synchronize the coordinate
system with the semi-product‘s spatial orientation
(which can be automated by finding
of the material edge by a laser sensor),
install the required consumables and start
the cutting process. All necessary parameters
are selected automatically, based on
the information contained within the cutting
plan. When using an integrated loading
system, the machine also loads the
semi-product into the cutting area and can
also facilitate the unloading of finished
parts.
steel market 01.2019

32 Blechexpo, strips & sheets
Perforated sheets by Schäfer
EMW Steel Service Centre an Schäfer Perforated Metal present
a selection of their product and service portfolios
EMW Steel Service Centre and Schäfer Perforated Metal will be among the exhibitors at the 14 th Blechexpo in
Stuttgart. At stand 10201 in hall 10, the two business divisions from the Schäfer Werke Group will be presenting
a selection of their product and service portfolios.
The SSC's new logistics centre at the
headquarters in Neunkirchen has been in
operation and showing notable improvement
of order processing and overall capacity
since the beginning of the year. Following
the launch of the »Yoursteel« customer
portal at the end of 2018, EMW now
has the capability to retrieve all important
information on orders and stocks at any
time, as well as being able to download various
documents, such as test reports, delivery
notes and much more. »By setting up
and launching the Yoursteel platform, we
can offer our customers an even more efficient
service and are ideally equipped to
meet the demands of Industry 4.0,« says
Michael Mockenhaupt, managing director
of the EMW Steel Service Centre (see also
the interview with Michael Mockenhaupt on
page 38, »More and more logistics tasks«).
New location in Saxony,
new space at home
Fair stand »EMW Steel Service Centre and
Schäfer Perforated Metal«
The company opened a new location at the
beginning of this year. The plant in the Saxony
town of Treuen will not only serve customers
in the Saxony and Thuringia regions
but also international clients in Poland, the
Czech Republic, Slovakia and other central
European countries.
Meanwhile at the headquarters in Neunkirchen
in the Siegerland area of North Rhine
Westphalia, two new halls are closing the
gap between service centre halls 3 and 6.
Together with SSI Schäfer’s warehouse
management software WAMAS, these
approx. 12,000 m² facilities will significantly
improve internal logistics processes and
reduce loading times, the company states.
Increasing demand, new areas of application
and steady growth in customer numbers
were behind the decision to extend the capacity
of the Steel Service Centre yet again. Priority
was given to increasing the safety and
speed of the overall intralogistics capacity of
the new building. These goals were achieved
by a new unloading and loading concept,
which allows a higher throughput and at the
same time minimizes turnaround and waiting
times for trucks. This guarantees smooth
loading in a three-shift operation. The
new intralogistics are controlled by a
warehouse management system, which is
designed to comprehensively map and permanently
improve all requirements. The system
receives the data required for control via
a direct connection to the SAP system and
so, by integrating control of the raw material
stock, production and dispatch, an optimal
material flow can be created.
Since the middle of this year, Schäfer Perforated
Metal has been on the market with
an extended portfolio of in-stock perforated
sheets, new perforation patterns and stain-
At a glance: EMW
Copyright (3): EMW Stahl Service GmbH
A view into the new logistics centre
Since it was founded in 1952, EMW has
grown to become one of Germany’s largest
independent steel service centres, delivering
over 900,000 tons to its customers this year
alone. To warrant the right material at the
right time is only possible with over 130,000
tons of stocks specially geared to the needs
of the automotive industry and a logistics
concept specially devised together with the
customer. For the production of slit strip and
cut-to-size blanks, there are five slitting and
multi-blanking lines available with thickness
ranges of 0.4 to 4 millimetres and coil
weights of up to 32 tons.
steel market 01.2019

Blechexpo, strips & sheets 33
less steel grades. The aim is to respond to
current market demands with new products
and focus even more on digital services. Since
2018, the entire range has been available
in an online shop, which guides users to the
very product they are looking for in just a
few clicks, and with numerous filter and
selection options. The online shop can be
found at lochblech-shop.de.
»This comprehensive digitalisation will
improve both the production processes as
well as our customer-oriented processes. If
you’re the type who prefers direct contact,
we are happy to arrange personal meetings,
and if you feel more at home online, we can
now offer you an extensive range of digital
services,« says Alexander Tumasjan, head of
sales at Schäfer Perforated Metal.
Cooperations with Daimler
and Schürholz
For more than 20 years, the EMW Steel Service
Centre has been supplying premium car
manufacturer Daimler AG with cut-to-size
blanks and slit strip. During this time, EMW
has seen and accompanied many changes in
grades and coatings at Daimler AG. Whether
Bonazink or Granocoat, electrolytically galvanised
or hot-dip galvanised, all product
EMW has developed into one of Germany’s largest independent steel service centres.
changes were mastered together, EMW
claims. Deliveries go to the sites in Bremen,
Hamburg, Sindelfingen, Mettingen and
Gaggenau. The slit strips are then processed
into so-called structural elements (connecting
plates, reinforcements and supports) at
the Daimler production plants.
EMW also highlights its long-standing
cooperation with automotive supplier Schürholz
Group, of which it says »is more a trusting
partnership than a conventional business
relation.«
For Schürholz, the focus of this cooperation
lies on the lowest thickness tolerances,
specially limited strengths and edges that
can be rounded. All these material demands
have been worked out and defined by
Schürholz and EMW in numerous talks and
trials over recent years to ensure the input
material is of a consistently high quality.
MHMM TO BECOME SOLE OWNER OF PRIMETALS TECHNOLOGIES
Mitsubishi-Hitachi Metals Machinery
(MHMM) and Siemens AG reached
agreement, that MHMM will acquire Siemens’
49 percent stake in Primetals Technologies.
Closing of the transaction is
subject to customary conditions and is
expected by early 2020. Siemens will support
the process to ensure a successful
closing of the transaction. Following closing,
MHMM will assume sole control of
Primetals Technologies. Financial details
of the transaction were not disclosed.
Primetals Technologies was established
in January 2015 and grew out of a long
history of innovation in the field of metals
production established by its predecessor
entities, Mitsubishi-Hitachi Metals Machinery
and Siemens VAI. Primetals Technologies
is an engineering, plant-building,
and lifecycle services partner for the
metals industry. Its creation was a result
of the desire to closely collaborate in the
field of metals machinery and develop an
enterprise between MHI and Siemens
that would be renowned for its technical
and business excellence.
Takashi Ishizuka, President and CEO,
Industry & Infrastructure of MHI,
MHMM’s parent company, expressed
his appreciation to Siemens: »I would
like to express my deep gratitude to
Siemens for their enormous contribution
to Primetals Technologies over the
past four years and nine months.«
Jochen Eickholt, Chairman of Siemens
Portfolio Companies said: »We have
successfully brought together our activities
in metal plant equipment and
have achieved a lot together. Now the
time is right for Primetals Technologies
to develop even further under the full
ownership of Mitsubishi-Hitachi Metals
Machinery. The agreement with MHI
benefits customers, employees, and
owners alike.«
steel market 01.2019

34 Blechexpo, strips & sheets
A prospect for coil prices to gain ground?
»If prices stay flat for long, it is more likely they will lose, not gain«
Each year, the Blechexpo and Euroblech raise expectations as to what will happen to the steel prices in the
following year. Both fairs are a platform for steel mills, distributors and fabricators to meet and talk, and normally
by the end of the week some figures in euros appear more clearly on the horizon. Quite often, it is the steel mills’
turn to give a clear signal – which normally mean upwards. But, if we recall the last Blechexpo in 2017, impulses
on prices remained feeble, and many buyers expect things to be similar this year.
September is often a month in which
the prices pick up after the summer break.
This year, even though the mills tried in vain
for hikes, many distributor buyers and others
within the industry believed that quarterly as
well as spot market prices will at best remain
stable going ahead.
According to Andreas Schneider of StahlmarktConsult,
the interplay of international
trade disputes, low domestic demand, falling
import prices and the correction of raw
materials costs leaves little hope for price
increases in Europe. The raw material costs
of the blast furnace route calculated in the
StahlmarktConsult cost model were down
by almost EUR 50 per tonne in the August
average. This means that the steel manufacturers'
most important argument for higher
prices has lost much of its weight, »even
though they will only benefit from the recent
declines with a certain delay.«
The slump in commodity prices has put
steel prices on the world market under
widespread pressure. Conversely, the weak
demand for steel products in many places is
a factor for falling raw material prices. Steelmakers
have been banking on the stock cycle
that would bring a »natural« upswing. But
with negative economic news, ordering
behavior is likely to remain very cautious,
Schneider stated. Many buyers agree. »Everyone
is reserved with buying these days.
Rather than buying big lots, people prefer to
buy smaller lots more often,« a manager of
a German service centre said, characterizing
the overall mood.
Regarding the overall European economy,
one Dutch observer noted that »many
experts believe that the economy in the
Federal Republic of Germany has entered a
recession. However, this will only become
Each year the Blechexpo raises expectations
as to where steel prices will go when the
next year starts.
apparent in October when the figures for the
third quarter will be published.« Fact is that
many German service centres, distributors
and cold rolling mills, as well as suppliers to
the automotive industry, are severely affected
by the drop in demand for strip and
sheet, he noted.
To improve their utilization, mills reportedly
have increasingly, started to go for enduser
customers, thus wooing for the clientele
normally served by distributors. This creates
not only irritation along the value chain
but confusion in pricing. One manager of a
distribution group puts it this way: »There is
no real base price any more, negotiations are
in relation with a tonnage. You submit a
request for a tonnage, then you get a price
offered,« he describes the process.
It is, therefore, little surprising that prices
reported by different buyers had a relatively
Copyright: Schall
wide range in August/September, and that
different customers ended up with different
prices, often wondering if the figure heard
from the other end can be true. One service
centre said it paid between EUR 470 and
EUR 480/ton for hot-rolled coil on its contract
for the fourth quarter. At another service
centre, part of a larger group, the manager
signed deals for EUR 450 to EUR 460/
ton. In fact, he claims that this was already
the level he paid in June, when the majority
vote was closer to the mark of EUR 480. The
size of the latter company may have helped
get friendlier prices, but the manager notes
that this is not always the case.
Galvanized coil can have a corrector
function
While prices for hot-rolled averaged at
EUR460-470, hot-dip galvanized coil was
seen in the range of EUR 550-570, and cold
rolled coil very similar, possibly some EUR 10
lower than that.
Galvanized coil is arguably the coil material
most under pressure from the crucial
slowdown in car production. But also, it can
have a vanguard function when reducing
production to stabilize prices. »It is easier to
stop a galvanizing line to take capacities out
of the market,« a trader explains. Against
that, »the hot-rolling and cold-rolling mills
have capacities in the millions and hundreds
of staff, so the decision to stop a galvanizing
line is more likely.«
Also, a blast furnace cannot be stopped
that easily for the sake of reducing excess
production. At the moment, there are no
noteworthy blast furnace relines planned at
the moment which would relieve the market
of capacities.
steel market 01.2019

Blechexpo, strips & sheets 35
Thyssenkrupp: No future for plate?
Investment abroad, not at home
Thyssenkrupp is currently reviewing its heavy plate production operations, and it appears very likely that the group
will give up this product group. Group CEO Guido Kerkhoff in August for the first time said explicitly that the group
»… will assess the potential« of its plate activities at Duisburg-Hüttenheim.
Copyright: Shutterstock
Heavy plate as Thyssenkrupps fine-grained high-strength steel type XABO 1300 is suited for applications like mobile cranes.
The business unit has been making losses
for years, and the company does not
expect much relief in the foreseeable future,
given the difficult market environment.
»Against this background we need to make
investment decisions responsibly and in the
interest of the overall steel activities,« the
division Thyssenkrupp Steel says in a statement.
The announcement has come under heavy
criticism from Thyssenkrupp’s works council,
which argues that that the company has
long missed out on investments to modernise
its plate production facilities. One such
investment should have been in a new cutting
line for hot-rolled strip for making plate,
according to the site’s shop chairman, Mehmet
Göktas. »The supervisory board decided
on a replacement of the cutting line back in
2008/09, knowing that the existing one
would not be competitive for much longer;
but that never happened,« he says.
The Hüttenheim site has a reversing mill to
roll plate from slab, but also makes plate
from coiled strip, which gets cut and subsequently
hardened and tempered to achieve
plate properties. In this section, a new cutting
line would have been necessary to deal
with high-tensile steels, »…which have
good chances on the market and achieve
high prices, whereas standard plate is under
much pressure from imports,« Göktas says.
Instead, Thyssenkrupp bought a relatively
modern cutting facility in Antwerp, the Antwerp
Decoil Center (ADC), for thicknesses of
2-20 mm, which was then renamed to Thyssenkrupp
Steel Heavy Plate Antwerp. »The
acquisition of an existing plant with a high
performance and with a very good connection
to road, rail and waterways made more
sense than a new construction,« Thyssenkrupp
said in a statement on that decision.
Shop chairman Göktas admits that the Antwerp
plant has the necessary state-of-the
art, and estimates that it was much cheaper
to buy it than to build a new one. But then,
the decision of course weakened Duisburg
as the company’s home-base location.
Decision by year-end
For Thyssenkrupp group, the plate segment
was already under review during
the failed merger with Tata Steel Europe.
A team of experts will now asses the
options for the company’s plate activities,
»… without prejudging the outcome,«
the company underlines. It envisages
a decision to come about until the
end of 2019, and prefers to refrain from
giving in-between updates before it has
all the facts cleared. »We do need time
to come to a decision based in facts; only
then we can give a concrete statement,«
it says.
If it decides in favour of a sale, the
question will remain who would buy. One
experienced buyer of plate from international
sources says he is not much surprised
about Thyssenkrupp’s announcement.
But he wonders »… if you can find a
buyer for it, because that would not help
the overcapacities we have in Europe.«
steel market 01.2019

36 Steel distribution & Service centres
Copyright (2): Knauf Interfer
The modern slitting line at the Walter Patz Plant is robot-supported and highly automated.
The Digital Supply Manager
Interview with Thomas Niederhofer (Knauf Interfer)
Steel service centers are growing increasingly into the role of „Digital Supply Chain Managers“. This was reported
by Thomas Niederhofer, Business Unit Manager Steel Service Center and Managing Director of Knauf Interfer Stahl
Service Center GmbH, in an interview with Steel Market European Edition.
SM: What are the most important trends
in the area of steel service centers?
TN: We continue to see digitization and
industry 4.0 as drivers of important trends
such as automation and robotization. Robots
for automatic handling of slitting tools automatic
removal or automatic coil storage are
just a few examples of how processes and
process chains in the Steel Service Centers
are changing.
SM: How has your role in the supply
chain changed?
TN: As a Steel Service Center, we are growing
more and more into the role of „Digital
Supply Chain Manager“. Through increasing
networking, we can digitally map the chain
from the plant to the end consumer and
generate added value for our customers
with speed, security and cost-effectiveness.
SM: More and more stockholders are
also offering preprocessing. How do you
react to this?
TN: Our focus is on securing the supply
chain. To this end, we offer a wide range of
logistics systems and storage systems such
as buffer stocks, security stocks and
warehousing. Of course, this also means that
we maintain stock tailored to customer
requirements. We offer further processing
within the Knauf Interfer Group via Knauf
Interfer Automotive Blanks GmbH.
SM: What role does digitisation play for
you?
TN: With a view to the future requirements
of our customers and suppliers, we create a
technological platform as a basis for suppor-
steel market 01.2019

Steel distribution & Service centres 37
ting logistics, production and sales with integrated
application software. In essence, our
strategy is aimed at improving our daily working
life and our relationship with business
partners - through digitization, but also
through the continuous optimization of our
competencies in logistics, automation, procurement
and process documentation.
SM: In which areas can you and your
customers benefit from digitisation?
TN: The new technological possibilities
enable shorter technical throughput times
with greater transparency and greater process
reliability. This benefits our customers
and suppliers just as much as we do as a
Steel Service Center.
SM: Where do you see the greatest
future challenges for service centers?
TN: We must constantly question our role as
a steel service center and help shape changes
in the market. In the automotive sector,
for example, we are facing far-reaching
changes in mobility concepts. The supply
Thomas Niederhofer, Business Unit Manager
Steel Service Center and Managing Director
of Knauf Interfer Stahl Service Center GmbH.
chain is also becoming ever shorter and integration
into customer processes ever closer.
One of the biggest challenges, not only in
our industry, will be the search for qualified
specialists.
SM: How do you intend to adjust to
this?
TN: Through our positioning as Digital Supply
Chain Manager, we are well prepared for
the challenges of the future - as an attractive,
sustainable employer and as an active
partner who can shape the supply chain
efficiently and economically. By outsourcing,
our customers have been entrusting us with
the procurement and scheduling process for
several years now. We are prepared for the
fact that this will intensify in the coming
years.
SM: Where do you see future opportunities?
TN: The demands placed on steel service
centers in terms of flexibility, delivery reliability
and process competence will continue to
rise. Companies that can use the potential
of digitization and industry 4.0 to optimize
their processes and act independently and
quickly can reposition themselves in this
dynamic environment. We believe that we
are well positioned in this respect.
INNOVATIV UND
LEISTUNGSSTARK.
SPALTBÄNDER · BLECHE · COILS
STAHL-SERVICE-CENTER
Hagener Feinblech
Service GmbH
Im Lindental 26 | D-58135 Hagen
Hammacher Str. 29 | D-58119 Hagen
Telefon +49 (0)2331.48 14-0
Telefax +49 (0)2331.48 14-30
info@hfs-hagen.de
www.hfs-hagen.de
Anzeige: HFS - Hagener Feinblech Service GmbH
steel market 01.2019
Medium: Stahlmarkt

38 Steel distribution & Service centres
Cutting, welding and additive
manufacturing
Multi-functional laser tools for sheet metal processing
Cutting, welding and additive manufacturing with one laser in one machine – this innovation, which gives the
sheet metal processing industry significant productivity and quality advantages, is the focus of MultiPROmobil, an
NRW Leitmarkt Project. Four partners are developing multi-functional laser tools to master the changing
production and technical challenges of new, electric vehicle designs. The Fraunhofer Institute for Laser Technology
ILT is coordinating the project, which will appeal in particular to small- and medium-sized companies.
Fast-changing products, fluctuating
batch sizes and innovative production concepts:
Hybrid lightweight construction and
electromobility require a balancing act between
flexibility and productivity. »In volatile
markets, laser technology combined with
digitalization is a predestined enabler for
cost-effective production,« explains Dr. Dirk
Petring, group leader for Macro Joining and
Cutting at Fraunhofer ILT and coordinator of
the joint project »Multifunctional robot technology
with a universal laser tool for separating,
joining and additive manufacturing
processes in semi-bionic lightweight e-mobility
– MultiPROmobil«.
Clever combi-head
Together with Bergmann & Steffen GmbH,
CAE Innovative Engineering GmbH and the
Laser Processing and Consulting Centre
(LBBZ GmbH), Fraunhofer ILT is developing a
multi-functional laser processing head and
robot technology for the flexible and economical
production of sheet metal component
assemblies.
A combi-head from Laserfact GmbH is
used, one that the scientists have continuously
developed over the last few years.
In the future, this head will not only enable
users to integrate cutting and welding but
also to additively generate structures. The
latter process already works with a replaceable
nozzle module. The project partners are
currently working on optimizing the combi-head
in such a way that it can execute all
three processes in a production plant »on
the fly« – i.e. without changing the optics or
nozzles.
Processing of an automotive structural component with the multifunctional laser tool.
The project is also focused on developing
intelligent design and simulation software
for an optimized process chain. With »Digital
Twins«, the project partner CAE Innovative
Engineering digitally can image machines,
processes and components to be produced
so that key figures of the process
chains can be identified and improved.
Using the highly flexible process chain, the
MultiPROmobil partners can digitally display
new vehicle components, then test and
evaluate the developed technology. In an
industrial environment at project partner
LBBZ, a robot that masters all three manufacturing
disciplines will produce semi-bionic
vehicle structures with a laser. As the first
application example, the triangular control
arm of an electric vehicle will be optimally
designed and cut, then welded and reinforced
with additive structures in the multifunctional
laser robot cell, all without a single
tool change. Of particular importance here
is the flexibility of the clamping technology
developed by Bergman & Steffen GmbH. In
the future, several multifunctional robots are
to be used in highly flexible manufacturing
cells, depending on the size of the assembly
and the required cycle time.
More efficiency and lower costs
The project partners predict that engineering
efficiency can be increased and startup times
reduced by around 30 percent each. In addition,
they want to reduce unit costs and
resource consumption by at least 20 percent
each. »With agile, laser-based manufacturing,
process chains for the production of
Copyright (2): Fraunhofer ILT
steel market 01.2019

Steel distribution & Service centres 39
sheet metal assemblies can be made very
flexible and scalable so that they can be gradually
introduced into electromobility applications«,
explains Dr. Petring.
The technology invented at Fraunhofer ILT
with the combination head from Laserfact is
already being used in the industry, for
example when cutting and welding strip
ends in coating and inspection lines of the
steel industry, as well as when producing
high-precision metal assemblies. With the
further development of the combi-head,
MultiPROmobil will now appeal, in particular,
to small- and medium-sized companies
that make an important contribution to the
future market of e-mobility.
The MultiPROmobil project will run for
three years, is coordinated by Fraunhofer ILT
and funded by the European Regional
Development Fund (ERDF) and the State of
North Rhine-Westphalia.
Multifunctional laser processing head that can already cut and weld innovative sheet metal
assemblies. Now, additional additive manufacturing steps are added.
Stahlo with new Managing Director on course for growth
Change at Stahlo Stahlservice: On October
1, Oliver Sonst took over as Managing
Director. He stands for the reorientation
of the company towards the
future - through technological leadership
in the field of high-tech steel processing,
strong partnerships in the automotive
industry and expansion into the
Eastern European market.
This year, Stahlo puts its new plant in
Gera into operation, which is unrivalled in
Europe with the latest production technology.
With the new building, the company not
only doubles the number of plants, but also
increases production capacity to around
400,000 tons of steel per year in Gera. At
the end of last year, Stahlo took over Blech-
Service Nordhausen, significantly expanding
its range of services.
The expansion of business in the Eastern
European markets is on the agenda for the
future. Great tasks for the new managing
director of Stahlo, who has been in charge
of the company since 1 October.
Oliver Sonst has written the growth history
of Welser Profile GmbH, based in Austria,
in recent years, as Managing Director since
2014. Previously, he held numerous international
management positions at Benteler
Oliver Sonst
Distribution Germany and the Erbslöh Group
- always focusing on the development of
cutting-edge technology and customer proximity.
Experienced manager
Copyright: Stahlo
Since October, Oliver Sonst has been leading
the company with headquarters in Dillenburg,
locations in Gera and Nordhausen as
well as subsidiaries and sales offices in
Poland, the Czech Republic and Benelux:
»With Mr. Sonst, we have gained an experienced
manager with an excellent reputation.
He has already written several success stories
in the steel and automotive industries. And
he stands for growth,« says Prof. Dr. Friedhelm
Loh, owner and CEO of the Friedhelm
Loh Group, to which Stahlo belongs.
»This is an exciting task to which I am very
much looking forward,« says Oliver Sonst:
»Stahlo offers a unique integrated manufacturing
competence with state-of-the-art
production technology, is a reliable partner
and family business with heart and mind. I
am convinced that we at Stahlo will open a
new chapter and further expand our market
position.«
Oliver Sonst succeeds Guido Spenrath,
who is leaving the company to take up a
new challenge outside the Friedhelm Loh
Group.
Stahlo is one of the most modern and largest
mill-independent steel service centers in
Germany. The range includes the complete
delivery program for all important materials
in the sheet metal market. At the Dillenburg,
Gera and Nordhausen sites, the company
produces slit strip, blanks, standard formats,
shaped blanks and contours in all common
grades - up to high- and ultra-high-strength
- according to individual customer requirements.
steel market 01.2019

40 Steel distribution & Service centres
Copyright (5): EMW Stahl-Service-Center
Delivery status, the query of quantities ready for dispatch, an order history or delivery papers and test certificates - customers get all the information
from the platform www.yoursteel.de.
»More and more logistics tasks«
Interview with Michael Mockenhaupt, director EMW Stahl-Service-Center
What’s going on in the field of steel service centers? Steel Market European Edition talked to Michael
Mockenhaupt, director EMW Stahl-Service-Center, about new market trends and how they effect the
company’s business.
Steel Market (SM): What are the main
trends in the field of steel service centers?
Michael Mockenhaupt (MM): In addition
to the provisioning of high-quality materials
that we do anyway, a newer and recent
focus is on cooperations between steelworks,
steel services and steel processors.
This results in taking over of more and more
logistics tasks within the supply chain. In
addition, storage and transport as well as
IT-related processes via Electronic Data
Interchange (EDI) play an increasingly
important role in todays business.
SM: You are increasingly focusing on
optimizing customers‘ supply chains.
What is the intention for this?
MM: Customer proximity is one of the key
factors in our business strategy. This also
applies to the geographic component. For
years, we have been focusing on the increasing
importance on Central European markets.
With success! With the plant in Treuen,
we increase the overall process speed on our
and thus also on the part of our customers.
We can now serve increasing volume needs
just-in-time more efficiently. But not only
customers from the area are benefiting from
this investment, also Poland, the Czech
Republic, Hungary, Slovakia and other Central
European countries are supplied more
efficiently.
Michael Mockenhaupt, Managing Director
EMW Stahl-Service-Center.
SM: You have introduced an EMW portal.
What is the purpose of this portal?
MM: Our customer portal www.yoursteel.
de makes all order-related data transparent
for customers. Whether current delivery status,
the query of quantities ready for
dispatch, an order history or delivery papers
and test certificates - customers get all the
information up-to-date and from a single
source. This will be followed soon by further
logistical benefits, such as pick-up control
and the coordination of partial deliveries.
SM: What is your first interim assessment
of the portal?
MM: We do see a great acceptance of the
portal. It is just easy and useful for the customer.
It is unique in the steel service industry
in this form. With our portal, we cover the
entire process chain of processing, transparently
and at any time. But as it is such a new
approach, we are very sensible for customer
feedback in order to further optimize the portal
for their needs. It helps us to stay in touch
with the customers and learn from them.
SM: Where do you see the effects of
digitalisation elsewhere?
MM: The digital transformation is not only
changing processes in production, sales or
other internal aspects. It changes the expectations
of our customers and partners.
Speed, availability and automation are key
components for success today.
Our customers want to make their processes
faster, more efficient and smarter. As a
steel service center, we see one of our main
tasks to respond to the growing needs within
the process flows, and also to drive
them. We show our customers potential and
concrete digital solutions.
SM: How do you intend to prepare for
this?
MM: Industry 4.0 is not the future, it is the
presence and we are prepared to adapt the
new challenges coming up with it. We are
aware that we need more agility than that
steel market 01.2019

Steel distribution & Service centres 41
was the case years ago. For that reason, we
are constantly analyzing the market and listening
to our partners and customers.
For example, our new EMW portal, which
enables customers today to retrieve all
order data bundled. Users can view orders,
check whether they are ready for delivery
or delivered, or access current and past
transactions directly via their order number.
Further services are already in planning.
That is one reason why we – for example
– entered a strategic cooperation with fabrikado,
a Cloud-based Internet platform
with immediate cost calculation, optimized
ordering processes, production and delivery
on the customer and supplier side. At the
heart of the platform is an intelligent algorithm,
the basis of which minimizes the
entire supply chain process and, through
machine learning, permanently adapts the
logic of the platform to the volatile
demands of the market. It allows us to integrate
processes into our ERP systems and
create complicated offers in seconds. That
is what the customer expects today and we
are well prepared for it.
EMW has an extensive stock of metal sheets.
SM: Where do you see the greatest
opportunities?
MM: We are in a unique situation, because
we have a strong position within the Schäfer
Werke Group, which provides us with synergies
in production, development sales and
other areas. Saying this, we are still one of
Europe’s largest independent Steel Service
Centres with great market experience. Both
Slit strip coils ready for processing.
aspects make us optimistic for future
developments
Two future topics or trends are very
important to us. First is mobility. What will
the mobility concepts of the future look like
and what impact will this have on steel
consumption? Second is the digital transformation
and evolution. To what extent will
digitization processes and platforms determine
the future of our business? Both trends
can be dangerous for any organization. But
we see more opportunities to act successfully
on the market with optimized, changed or
new business models.
Logistics are playing an increasingly important role for steel service centres.
steel market 01.2019

42 Steel distribution & Service centres
thyssenkrupp to invest over
70 million euros
State-of-the-art logistics center and new warehouses are to be built
thyssenkrupp Materials Services, the distribution and service provider of the thyssenkrupp Group, is investing
around 70 million euros in the modernization and expansion of its European warehousing and logistics network. A
state-of-the-art logistics center and new warehouses are to be built in Germany, Poland and Hungary. The
investments are an important part of thyssenkrupp Materials Services’ strategy. Under its »Materials as a Service«
approach, the western world’s biggest materials distributor is focusing on expanding its portfolio of services
supplementing its core business.
»Expanding and modernizing our capacities
are important elements of our
growth,« says Klaus Keysberg, Chief Executive
Officer of thyssenkrupp Materials Services.
»Innovative logistics, automation and
digitalization will help us improve our performance
and our productivity. That means
we can cater even better to the individual
requirements of our customers while they
can concentrate on their core business.«
Connected processing equipment and the
digital integration of the company’s sites will
ensure flexible and perfectly coordinated
logistics processes and services.
New logistics center
A state-of-the-art logistics center with
around 36,000 square meters of storage
space is to be built in Rotenburg/Wümme
(Lower Saxony). The company is investing
around 60 million euros in the site, which
will store up to 20,000 tons of materials to
guarantee maximum material availability.
thyssenkrupp Materials Services is investing a total of 11 million euros in the expansion of its
sites in Nowe Marzy (picture), Poland and the Hungarian capital Budapest.
The main goal is the modernization and expansion of the European warehousing and logistics
network.
The groundbreaking is planned for the end
of the year. Serving customers in the north
of Germany, the new logistics and processing
center is scheduled to go into operation
in 2021.
thyssenkrupp Materials Services is investing
a total of 11 million euros in the expansion
of its sites in Nowe Marzy, Poland and
the Hungarian capital Budapest. Two new
modern warehouses are to start operation
at the end of September. With around
13,500 square meters of storage space, the
new warehouse in Nowe Marzy is an addition
to the hub in north Poland, which was
built in 2017. The new facility in Budapest
will cover a space of around 6,500 square
meters.
With around 480 locations – 271 of them
warehousing locations – in over 40 countries,
thyssenkrupp Materials Services is the
biggest materials distributor and service provider
in the western world.
Copyright (2): thyssenkrupp Materials Services
steel market 01.2019

Steel distribution & Service centres 43
247TAILORSTEEL EXPANDS IN GERMANY
Carel van Sorgen in the 247TailorSteel site in Varsselder (Netherlands).
247TailorSteel will expand its activities in
Germany. The new production facility will be built in
Hilden (near Düsseldorf) and initially equipped with
4 lasers and 4 bending benches. »This expansion will
contribute to our growth target and strengthen our
brand and position in the market,« says the company
in a statement.
»The opening of this new production facility in Hilden
will enable us to offer our customers even better
service and faster delivery of our high-quality products.
Thanks to our Sophia portal, customers can
place their orders online around the clock, receive a
quote in just one minute and have their product delivered
within 48 hours. Our own machinery is completely
under our own control«. The machines are
available to the customers for laser cutting, tubes
and edging parts.
In spring, company founder Carel van Sorgen sold 60
percent of the shares to the financial investor Parcom.
247TailorSteel now has 480 employees and a
turnover of 100 million euros. »I myself will remain
a minority shareholder with proper voting rights,«
says van Sorgen.
Van Sorgen regards the takeover as a further logical
step towards being able to continue growing internationally
under his own steam. Over the next two
years, investments amounting to 40 million euros are
planned. The aim is to open new plants. »I believe
there is still plenty of room for further expansion. We
have already taken the first major steps in Germany,«
reports van Sorgen. »We are also receiving more and
more orders from Austria and Switzerland. And
Oyten, near Bremen, is not far away from Denmark.«
Copyright: 247TailorSteel
IB ANDRESEN CERTIFIED
Ib Andresen Industri, Danish supplier of
steel-based solutions, is now certified to weld
grades of steel up to S700 – pursuant to
EN-1090 – and this has already resulted in the
enlargement of an existing partnership. »With
the S700 enhancement of our EN 1090 certification,
we can now offer to weld high-strength
steel in-house, which provides several advantages,«
explains Sales Manager Lars Bohnsen,
who continues: »It shortens our lead times and
makes us more flexible. Specifically, we have a
customer who before had to weld the sectional
steel workpieces we delivered before they
could forward the steel to their assembly
department. Today, we deliver these parts
already welded, saving the company an internal
welding process.«
Ib Andresen Industri will also bring the S700
welds into play in other customer relationships,
whereas we previously outsourced this to
subcontractors in our network. Similarly, new
customers will also be able to benefit if they
need this. According to Quality Manager Peter
Sylow Madsen, the organisation is well equipped
to weld high-strength steel: »Actually, the
upgrade of the EN-1090 certification reflects a
market need for which we adapt and develop
our welding systems and skillsets – together
with our welding organisation comprising IWE
and IWS skillsets and an NDT Level 3 organisation.
The initiatives of recent years are in
keeping with our welding strategy and generally
illustrate the high priority we give to welding.«
In addition to EN1090-2 exc. 3, Ib Andresen
Industri is also certified to ISO 3834-2.
TRIPLE-S STEEL ACQUIRED SHAMROCK STEEL SALES
Triple-S Steel Holdings executed the
acquisition of Shamrock Steel Sales, the largest
general lines steel service center and
distributor of structural steel located in the
Permian Basin. Shamrock also shears, shapes
and rolls steel plate and sheet and does light
rebar and structural fabrication. Based in
Texas, Triple-S Steel Holdings operates as a
holding company. The Company, through its
subsidiaries, manufactures steel products for
bridges, stadiums, barges, and large buildings.
steel market 01.2019

44 Personalities
VIP-Site
ABB names Björn Rosengren
as CEO
Björn Rosengren, President and CEO of
Sandvik, will leave the company as of 1
February 2020. He will join ABB on February
1, 2020 as Chief Executive Officer
and succeed CEO, Peter Voser, in this
role on March 1, 2020. At that time
Peter Voser will revert to his position at
ABB solely as Chairman of the Board.
»Björn Rosengren has, since he joined
Sandvik in November 2015, established
Herbert Eibensteiner (right) takes
over from Wolfgang Eder.
Copyright: voestalpine
Wolfgang Eder hands
chairmanship of the Management
Board to Herbert Eibensteiner
At the Annual General Meeting, Herbert
Eibensteiner took over as the Chairman of
the Management Board of voestalpine AG
from Wolfgang Eder, who served in this
position for more than 15 years. Herbert
Eibensteiner is an internationally experienced
manager, who started his career at
voestalpine as a plant engineer in 1989
after completing his degree in mechanical
engineering/business management. He
held numerous executive positions in the
company before being appointed to the
Management Board and simultaneously
the Head of the Metal Forming Division in
DVS General Manager
Dr. Boecking on the Board of
Directors of IIW
The 72 nd Annual Assembly of the International
Institute of Welding (IIW) and its
subsequent conference was particularly
significant for DVS, the German Welding
Society, this year because the DVS General
Manager Dr. Roland Boecking was elected
as a new member of the Board of Directors
of IIW. Germany is now represented by
three members in the International Institute
of Welding to which Professor Thomas
2012. Eibensteiner’s switch to the Steel
Division in October 2014 made him the
Head of the Group’s biggest revenue earner.
»I look forward to continuing to
further develop voestalpine’s successful
business model in a consistent way. With
a focus on innovation, internationalization,
and value-added growth as well as our
commitment to sustainability, we will continue
our journey towards a technology
group,« Eibensteiner stated. Wolfgang
Eder, the departing CEO, worked for the
voestalpine Group for 41 years, being
Chairman of its Management Board for
more than 15 years. Under his leadership,
the voestalpine Group developed from an
Austrian steel company into a global technology
group.
Böllinghaus, Vice-President of the Federal
Institute for Materials Research and Testing
(BAM) in Berlin, and Dipl.-Ing. Christian
Ahrens, International Welding Consultant,
Duisburg, already belong. Dr. Boecking
considers it to be an honour to be appointed
to the Board of Directors. He is looking
forward to the forthcoming tasks in IIW.
»The next months will certainly become
intensive and exciting,« said the DVS
General Manager. The headquarters of IIW
will be relocated from Paris/France to
Genoa/Italy on January 1, 2020. Dr. Luca
Costa from the Italian Welding Society is
Björn Rosengren
Copyright: ABB
a solid decentralized business model for
the company and made the organization
more flexible and efficient,« says
Johan Molin, Chairman of the Board for
Sandvik. »This has not been an easy
decision. Sandvik is a great company
with a lot of future potential and I will
continue to lead the organization with
a strong commitment until end of January,«
says Björn Rosengren.
becoming the new CEO of IIW and resigned
from his office as the Treasurer of IIW
for this purpose. The current CEO of IIW,
Dr. Cecile Mayer from the French Welding
Institute, was thanked for her many years
of commendable activity.
steel market 01.2019

Personalities 45
Changes in the Andritz AG
Executive Board
Mark von Laer, who has been Chief Financial
Officer of Andritz since March 1, 2017,
will leave the company at the end of 2019.
The Supervisory Board has appointed Norbert
Nettesheim as his successor, effective
as of December 1, 2019.
Nettesheim was born in 1962 and has a
degree in business administration from the
University of Cologne. He has extensive
experience in project business and spent the
greater part of his career in managerial positions
with increasing responsibility at the
Voith Group, including the position of commercial
director in various group companies
and most recently as head of Group Controlling,
Accounting and Investments.
The positions of the other Executive Board
members of Andritz remain unchanged.
Norbert Nettesheim
Copyright: Petra A. Killick
Group Compliance Executive
Kaufmann leaves Thyssen-Krupp
In the context of the strategic and
structural realignment of the thyssenkrupp
Group, Dr. Donatus Kaufmann,
member of the Executive Board of
thyssenkrupp AG, reached an agreement
with the Supervisory Board of
thyssenkrupp AG to end his mandate
as a member of the Executive Board
of thyssenkrupp AG by mutual agreement.
Dr. Kaufmann will leave the
Executive Board of thyssenkrupp AG
Henrik Adam now leads Tata Steel
Europe
Henrik Adam: Henrik Adam
Copyright: Tata Steel
In a change of leadership at Tata Steel Europe,
Henrik Adam replaced Hans Fischer as
Chief Executive Officer on 1 July. The former
Chief Commercial Officer has been on
board since 2011. Prior to that, he held
various positions at thyssenkrupp, including
CEO of thyssenkrupp Electrical Steel. In his
new role as director of Tata Steel‘s Europe
division, he will in future report directly to
the main site in India. In addition, the company
informed the stock exchanges that
former incumbent Fischer would now continue
to serve on the Board of Directors as
a non-executive director. In an advisory
capacity he should ensure a smooth change
of leadership.
Due to the failed merger plans between Tata
Steel and thyssenkrupp, the new appointment
is aimed primarily at increasing the
company‘s economic independence. »Given
the challenging external conditions, our
European business will continue to focus on
higher quality and specified steel products
that will make our customers more competitive
and successful,« explains T.V.
Narendran, CEO of the parent company Tata
Steel.
In mid-June, the steel division of thyssenkrupp
already announced a change at the
top management. Andreas Goss, who
should also have led the joint venture with
Tata Steel Europe, was replaced by former
Chief Financial Officer Premal Desai.
Dr. Donatus Kaufmann
Copyright: thyssenkrupp
and the company effective September
30, 2019. He has been a member of
the Executive Board of thyssenkrupp
AG since February 1, 2014. »In recent
years, Donatus Kaufmann has enhanced
the change in values and culture
as well as the Group‘s compliance and
governance approach in a way that is
exemplary in German industry. He has
set a clear course in the Group‘s innovation
management and consistently
advanced the digital transformation
of the industrial group and its businesses,«
Martina Merz, Chairwoman of
the Supervisory Board of thyssenkrupp
AG states.
steel market 01.2019

46 Personalities
VIP-Site
BASF Supervisory Board extends
appointment of three members of the
Executive Board
At the end of July, the Supervisory Board of
the chemicals group BASF extended the
orders for three of its members of the Executive
Board, which expire next year. Orders
for Saori Dubourg and Markus Kamieth will
be extended for a period of five years until
the end of the 2025 Annual General Meeting,
and for Wayne Smith for two years
before the end of the 2022 Annual General
Meeting.
Dubourg and Kamieth have been members
of the Executive Board since 2017. Dubourg
is responsible for Agricultural Solutions,
Markus Kamieth
Copyright: BASF
Construction Chemicals, Bioscience Research
and the Europe region. Kamieth‘s responsibilities
include Care Chemicals and
New Business. He is also responsible for the
region of South America. Smith has been a
Saori Dubourg
Copyright: BASF
Wayne Smith
Copyright: BASF
member of the Executive Board since 2012.
In addition to leading numerous business
areas, including North America, he has
served as Chairman and CEO of BASF Corporation
since 2015.
Appointments in the Steering
Commitee of Acerinox
The Board of Directors of Acerinox has
approved, at the proposal of the Appointments,
Remuneration and Corporate
Governance Committee, the appointments
of Fernando Gutiérrez as Strategy and Raw
Materials Director, Oswald Wolfe as Director
of Institutional Relations, Sustainability
and Communication and Mark Davis as
CEO of Bahru Stainless.
Fernando Gutiérrez, new Strategy and Raw
Materials Director, is an Industrial Engineer
by ICAI - Universidad Pontificia de Comillas.
He joined Acerinox Group in 2001 at the
Commercial Department. In 2002 he was
transferred to the Corporate Planning
Department. After that, in 2008, he was
promoted to Deputy Head of Raw Material
Purchasing of the Group. In 2012 he assumed
the responsibility of Director of this
Department, and in 2018 he was appointed
Strategy Director of the Group.
Oswald Wolfe, Director of Institutional Relations,
Sustainability and Communication,
will be based at the headquarters in Madrid.
Oswald has a Bachelor in Law and Master
in International Management. He joined
the Acerinox Group in 1984 in the Commercial
Department, occupying different
positions and responsibilities throughout his
career, with wide professional expertise at
national and international levels. After that,
he was promoted to Commercial Director
of the Group in 2010 and in 2014 CEO of
Bahru Stainless.
Mark Davis, CEO of Bahru Stainless, is
Metallurgical Engineer. He joined the Acerinox
Group in 2001 in the Technical
Department of North American Stainless
(NAS). After that, he held different positions
as Hot Mill, Cold Mill Manager and
Melt Shop areas. In 2011, he was promoted
to Director of Operations Bahru Stainless
at the Malaysian factory and in January
2019 he was appointed as General Manager
of Bahru Stainless.
Daniel Wodera new CFO of
Thyssenkrupp Materials Services
Daniel Wodera has become CFO of Thyssenkrupp‘s
materials trader and service provider
with effect from 1 October. This was confirmed
by the Supervisory Board of Thyssenkrupp
Materials Services at its meeting this
Friday. Since 2014, Klaus Keysberg has held
the post of CFO. In January of this year, he
was appointed CEO of Thyssenkrupp Materials
Services. Since then, he has also been in
charge of the finance department.
The 39-year-old Wodera, a business graduate
and since 2001 in the group, comes from the
Italian subsidiary Acciai Speciali Terni (AST)
Daniel Wodera
Copyright: thyssenkrupp
back to Essen, Germany. In Italy, Wodera has
been CFO since 2015. As a member of the
executive board, he has an important part in
the successful restructuring of AST. Prior to his
appointment as CFO of AST, Wodera held
various leadership positions at Thyssenkrupp
Materials Services, most recently from 2012
to 2015 as Head of Controlling.
»I am very happy that Daniel Wodera completes
our board team. Each of us brings
different skills and a broad business experience.
I am convinced that we are in the best
position to work together with our employees
to successfully advance Material Services,«
said Klaus Keysberg, CEO of Thyssenkrupp
Materials Services.
steel market 01.2019

Literature 47
Recent Trends in Mechanical
Engineering: Select Proceedings of
ICIME 2019 (Lecture Notes in
Mechanical Engineering)
11 January 2020
G. S. V. L. Narasimham (Publisher), A. Veeresh
Babu (Publisher), S. Sreenatha Reddy (Publisher),
Rajagopal Dhanasekaran (Publisher)
This book comprises select peer-reviewed
proceedings from the International
Conference on Innovations in Mechanical
Engineering (ICIME 2019). The volume
covers current research in almost all major
areas of mechanical engineering, and is divided
into six parts: (i) automobile and thermal
engineering, (ii) design and optimization, (iii)
production and industrial engineering, (iv)
material science and metallurgy, (v) nanoscience
and nanotechnology, and (vi) renewable
energy sources and CAD/CAM/CFD. The
topics provide insights into different aspects
of design-ing, modeling, manufacturing,
optimizing, and processing with wide ranging
applications. The contents of this book
can be of interest to researchers and professionals
alike.
Stability and Ductility of Steel
Structures 2019: Proceedings of the
International Colloquia on Stability
and Ductility of Steel Structures
Sdss 2019, September 11-13, 2019,
Prague, Czech Republic
Franticek Wald (Publisher), Michal Jandera
(Publisher)
For more than forty years the series of
International Colloquia on Stability and Ductility
of Steel Structures has been supported
by the Structural Stability Research Council
(SSRC). Its objective is to present the latest
results in theoretical, numerical and experimental
research in the area of stability and
ductility of steel and steel-concrete composite
structures. In Stability and Ductility of Steel
Structures 2019, the focus is on new concepts
and procedures concerning the analysis and
design of steel structures and on the background,
development and application of rules
and recommendations either appearing in
recently published Codes or Specifications
and in emerging versions, all in anticipation
of the new edition of Eurocodes. The series of
International Colloquia on Stability and Ductility
of Steel Structures started in Paris in
1972. The 2019 edition of SDSS is organized
by the Czech Technical University in Prague.
Transactions on Intelligent
Welding Manufacturing:
Volume II No. 4 2018
24 August 2019
Shanben Chen (Publisher), Yuming Zhang
(Publisher), Zhili Feng (Publisher)
The primary aim of this volume is to
provide researchers and engineers from both
academia and industry with up-to-date
coverage of recent advances in the fields of
robotic welding, intelligent systems and
automation. It gathers selected papers from
the 2018 International Conference on
Robotic Welding, Intelligence and Automation
(RWIA 2018), held Oct 20-22, 2018 in
Guangzhou, China. The contributions reveal
how intelligentized welding manufacturing
(IWM) is becoming an inescapable trend, just
as intelligentized robotic welding is becoming
a key technology. The volume is divided
into four main parts: Intelligent Techniques
for Robotic Welding, Sensing in Arc Welding
Processing, Modeling and Intelligent Control
of Welding Processing, and Intelligent Control
and its Applications in Engineering.
steel market 01.2019

48 Literature / Company brochures
REWAS 2019: Manufacturing
the Circular Materials
Economy (The Minerals,
Metals & Materials Series)
PAC-CLAD Petersen
Architectural Metal
15 February 2019
Gabrielle Gaustad (Publisher), Camille
Fleuriault (Publisher), Mertol Gökelma
(Publisher), John A. Howarter (Publisher),
Randolph Kirchain (Publisher), Kaka Ma
(Publisher), Christina Meskers (Publisher),
Neale R. Neelameggham (Publisher), Elsa
Olivetti (Publisher), Adam C. Powell (Publisher),
Fiseha Tesfaye (Publisher), Dirk Verhulst
(Publisher), Mingming Zhang (Publisher)
Every sector faces unique challenges in the
transition to sustainability. Across each,
materials will play a key role. That will
depend on novel materials and processes,
but these will only be effective with a solid
understanding of the trends in the market.
For each respective sector, the papers in
this collection will explore the trends and
drivers toward sustainability, the enabling
materials technologies and challenges,
and the tools to evaluate their implications.
Major sections in REWAS 2019 include:
Disruptive Material Manufacturing: Scaling
and Systems Challenges, Education and
Workforce Development, Rethinking Production,
Secondary and Byproduct Sources
of Materials, Minerals, and Metals.
Petersen has developed a complete line
of PAC-CLAD metal products including
column covers, corrugated panels, metal
composite panels, metal plate panels and
custom heavy gauge fabrication. In this brochure
the Chicago-based company presents
the whole range of applications.
Petersen
1005 Tonne Road
Elk Grove Village
IL 60007
USA,
www.pac.clad.com
Bechem Avantin
As the oldest German manufacturer of
industrial lubricants, Bechem today is one
of the leading producers of high-quality
special lubricants. Bechem Avantin is a product
series of water-miscible coolant lubricants.
From the all-rounder for multi-metal
applications and the expert on series processing
in automotive production lines, to
the specialist in broaching and deep drilling
operations, BECHEM offers different product
solutions. This brochure presents an
overview of the possibilities.
CARL BECHEM GMBH
Weststr. 120
58089 Hagen
Germany
Phone +49 2331 9350
www.bechem.com
Transport – the most
lightweight bus body
material concept
Stalatube is a supplier of stainless steel
products for the transport industry. The
company offers an interesting lightweight
bus body material concept. Its tubes,
steel market 01.2019

Company brochures 49
sheets, sheet metal components and welded
structures are manufactured from a
variety of stainless steel grades, such as
strength class STALA400F for stronger ferritics
and STALA630D for stronger Lean
Duplex. This brochure gives a detailed
overview of possible applications in the
transport sector.
Stainless Steel Solutions
for the Aerospace Industry
Specializing in Steel Buildings
STALATUBE OY
Taivalkatu 7
15170 Lahti
Finland
Phone +358 3 882 190
www.stalatube.com
Structural Shapes
The aerospace industry is dedicated
to the highest quality standards. Stainless
steel producer Ugitech is a certified supplier
to many producers of planes, helicopters
and components. The company
has summarized its range of stainless
steel products for this particular industry
in a new brochure.
With over 30 years of steel construction
behind it, Canadian company JDG continues
to move forward by providing clients with a
high level of service. JDG specializes in preengineered
buildings, general contracting
and in providing design/build services. From a
modest private shop or storage building to
the most complex industrial project steel buildings
have proven to be an economical and
efficient building solution. This brochure supplies
an overview of the possibilities.
Nippon Steel has published a brochure
on the use of structural shapes. Especially
H-shapes are part of the classical
product range of the Japanese steel producer.
What the company means by the
slogan »Leading the New Era on Structural
Shapes with Pioneer Spirits« you will
find out on 96 pages.
Nippon Steel Corporation
2-6-1, Marunouchi
Chiyoda-ku,
Tokyo, 100-8071
Japan
Phone +81 3 6867-4111
www.nipponsteel.com
Ugitech SA
Avenue Paul Girod CS90100
73403 UGINE Cedex
France
Phone +33 4 7989-3030,
www.ugitech.com
JDG Construction
1070 14th Street West
North Vancouver
B.C. Canada, V7P 3P3
Phone +1 604-986-4494
www.jdgconstruction.ca
With us, advertising prices are small
and results are big!
Our Advertising Team:
Claudia Cremer: +49 (0) 22 03 35 84-166, claudia.cremer@maenken.com
Tim Jansen: +49 (0) 22 03 35 84-172, tim.jansen@maenken.com
Susanne Kessler: +49 (0) 22 03 35 84-116, susanne.kessler@maenken.com
steel market 01.2019

50 Steel events / Advertiser‘s index / Imprint
IN THE NEXT ISSUE...
This preview may be subject to change.
METALLURGY
When it gets hot: Schmidt + Clemens has developed new high-temperature materials. In an interview with MPT International,
the company explains what the materials are used for.
DIGITALISATION
Copyright: Shutterstock
Managing obsolescence in steel manufacturing. The steel industry shows a greater
awareness of how automation and digitalization can improve traditional processes
and benefit predictive maintenance. EU Automation explains how obsolescence
management procedures, such as retrofitting, can achieve tangible benefits for
steelmakers.
Advertiser’s index
BEPRO Blech und
Profilstahl GmbH & Co.KG 1
Euroforum Deutschland GmbH 23
Heitmann Stahlhandel
GmbH & Co. KG 2, 51
HFS Hagener Feinblech Service GmbH 37
FRIEDRICH KOCKS GmbH & Co KG 52
IMPRINT
»Steel Market« is published by
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steel market 01.2019

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