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058Product andservice portfolioProduction and finishing Linesfor Metallic strip, especiallyfor carbon and stainless steel.

The Rolling Mills and Strip Processing Lines business area was renamed ANDRITZ METALS as of January 1, 2009.059

060 MetalsThe business area manager:Heinz Hödl Vienna Austria

Metals061500million tonsof metallic stripThe origin of metal strip making is likely todate back to the Bronze Age, when softmetals (bronzes) were hammered into thinsheets. These were used mainly for jewelryand also for household objects.Producing and treating metal strip in rollingmills was not developed until the 19 th century,but grew very quickly during the 20 th century.In 2008, over 500 million tons of metallic stripwere produced.Applications of stainless steel range fromarchitecture to heavy-duty components inthe chemical industry, to power stations.The global demand for stainless steel hasincreased by an annual average of 10%since 2003, with the strongest growth ratesin China and India.ANDRITZ METALS is a supplier of plants andcomponents that are used in many areas ofmetals production and processing, and holdsthe global lead in stainless steel strip productionlines.Stainless steel is also being usedincreasingly as high-grade buildingmaterial and as an architectural element.

062 MetalsPROFILEThe METALS business area designs andbuilds complete lines for the production andfurther processing of cold-rolled carbonsteel, stainless steel, and non-ferrous metalstrips. These lines consist of equipment forcold rolling, surface treatment, strip coatingand finishing, punching and deep drawing,and acid regeneration. The business areaalso supplies turnkey industrial furnace systemsfor thermal processes such as heattreatment of slabs, forged pieces, and strips,as well as refining furnaces for the copperindustry.ANDRITZ METALS is one of the few suppliersworldwide capable of providing all technologiesand processes involved in the manufacturingof steel strip (mechanical, process,electrical equipment, automation, and services).This ensures minimized interfaces andenables full-line optimization.Gravitel anode box for electrolytic galvanizing plants:ANDRITZ METAL’s Gravitel process is usedin the production of top quality electro-galvanizedsteel strip for the automotive and householdappliances industries.

Metals063

064 MetalsMARKETDEVELOPMENTProject activity for plants and equipment tomanufacture carbon steel, stainless steel,and non-ferrous metal strips showed a varieddevelopment during the course of the year.During the first three quarters, project activitycontinued at the high level of the previousyear, both with regard to modernizations andnew plants. In the fourth quarter, a markedslowdown was noted due to the global financialand economic crisis. In all regions relevantto the industry – Northern Europe, Russia,India, and China – many projects andproject awards were postponed; delays alsooccurred in the execution of a few projects.Galvanizing section of the electrolytic galvanizing line supplied by ANDRITZ METALSto Baosteel, Shanghai, China. The line is based on the Gravitelprocess and started operation in December 2008.The market for heat treatment and forgingfurnaces developed very favorably. ANDRITZMaerz, an affiliate acquired in March 2008,booked a number of major orders and, thus,developed considerably better than projected.Inside of a Gravitel cell, where zincis deposited electrolyticallyonto the steel strip.

Metals065businessdeveLoPMentSales of the business area developed verysatisfactorily in 2008. At 566.2 MEUR, saleswere 38.8% higher than in the previous year(2007: 408.0 MEUR). EBITA also showedan increase, reaching 40.1 MEUR (2007:30.6 MEUR).Despite the difficult economic conditionsduring the fourth quarter of 2008, order intakeamounted to 611.5 MEUR, thus only slightlybelow last year’s record (2007: 636.4 MEUR).ANDRITZ Maerz, in particular, showed a veryfavorable development, achieving an orderintake significantly above expectations.Sales 2007: 408.0 MEURSales 2008: 566.2 MEUR+39%Voestalpine Stahl GmbH, Austria successfullystarted up the hot-dip galvanizing lineNo. 4 at the site in Linz. The plant’s productioncapacity is 450,000 tons of sheet steel forthe automotive industry. ANDRITZ METALSacted as the consortium leader and suppliedthe complete mechanical equipment, includinga four-high skin-pass milland the furnacetechnology. Also, the business areahanded over a 5,000 l/h regeneration plantto voestalpine Stahl GmbH. The order compriseda hydrochloric acid regeneration plant,a waste acid purification (WAPUR)and an oxide storage.plant,At Baoshan Iron & Steel Co. in Shanghai,China, ANDRITZ METALS successfully completedthe extension of an electrolytic galvanizingline in a cold rolling mill. The linehad been supplied by the business area andstarted operation in June 2000 with a productioncapacity of 263,000 t/y, which hasnow been raised to 310,000 t/y.A 20-high rolling mill supplied to Jindal StainlessSteel Ltd. successfully started operationduring the reporting period. The scope ofsupply also included the complete automationand electric drive technology.Jiuquan Iron & Steel Co. (JISCO), Jiuquan,China started the annealing and picklingline for cold-rolled strip, two 20-high rollingmills, a skin-pass mill, the grinding and polishingline, and two trimming lines supplied byANDRITZ METALS. The stainless steel millin Jiuquan processes hot-rolled strip of upto 6 m thickness and a maximum strip widthof 1,600 mm into cold strip of 0.3 mm minimumthickness.Arinox S.p.A., Italy successfully started upa 20-high rolling mill for 1,350 mm stripwidth and a slitting line for precision stainlesssteels in the thickness range between0.1 and 1.5 mm and with a strip width of1,260 mm maximum.Lianzhong Stainless Steel, China successfullystarted up its new annealing and picklingline for cold-rolled strip with integratedskin-pass mill. The plant can produce stripbetween 800 and 1,600 mm wide and 0.3 to3.0 mm thick.Taiyuan Iron and Steel, China took over a20-high rolling mill, an S6-highrolling mill,and a skin-pass mill. The 20-high rolling millplant is designed for strip thicknesses of 10to 0.15 mm and strip widths of up to 1,625mm. The S6-high rolling mill can handle stripup to 2,100 mm wide and up to 14 mm thickat the inlet, with a finished thickness of up to0.8 mm. The offline skin-pass mill rolls thestrips that have been reduced on the aforementionedrolling mills.A chamber furnace annealing plant was handedover to Böhler Edelstahl GmbH, Austria. Itconsisted of a high-temperature furnace withrecuperative burners , two low-temperatureannealing furnaces, cooling chamber, manipulationmachine, and quenching basin.Special technical and financial terms are marked attheir first occurrence in a chapter. They are explained inthe glossary starting on page 104. If you have any queries,please do not hesitate to contact us atwelcome@andritz.comKey figures (Meur) 2008 2007* 2006* 2005 2004Order intake 611.5 636.4 401.9 444.8 266.7Order backlog as of December 31 736.2 631.5 403.7 458.9 293.1Sales 566.2 408.0 450.5 275.9 235.4EBITDA 42.6 33.1 33.4 18.2 14.3EBITDA margin 7.5% 8.1% 7.4% 6.6% 6.1%EBITA 40.1 30.6 31.1 15.9 12.1EBITA margin 7.1% 7.5% 6.9% 5.8% 5.1%Capital investments 4.3 3.2 2.3 2.2 3.2Employees as of December 31 996 880 819 749 736* restated

066 MetalsMAJOR ORDERSJindal Stainless Steel Ltd., India’s largeststainless steel producer, ordered a hotrolledand a cold-rolled strip annealing andpickling line for the new mill in Orissa, India.Both annealing and pickling lines incorporatespecial S6-high cold rolling millsto enable production of final products inone manufacturing process. The hot-rolledstrip annealing and pickling line with integratedS6-high cold rolling mill has an annualcapacity of 850,000 tons and producesstrip with a width of up to 1,650 mm inthe thickness range 1.4-10 mm. The coldrolledstrip annealing and pickling line withthree integrated S6-high cold rolling millsand skin-pass mill has an annual capacityof 450,000 tons and produces strip with awidth of up to 1,650 mm in the thicknessrange 0.3-5 mm.As part of the expansion program of thesteel plants under its fold, India’s largeststeel producer, Steel Authority of India Limited(SAIL), ordered a hot-dip galvanizingsystem for the mill in Bokaro, India. Theplant is designed for an annual capacity of380,000 tons. It will produce high-end galvanizedand galvannealed products for theautomotive, white goods, and appliance industries.ANDRITZ METAL’s scope of supplyfor this project comprises engineering,as well as supply, erection, and commissioningof the furnace and cooling tower.Salem Steel, an affiliate of Steel Authorityof India Limited, entrusted ANDRITZMETALS with the supply of a coil preparationline.The Finnish steel producer Rautaruukkiplaced an order for supply of a cut-to-lengthline for the Raahe mill, Finland. The plant isdesigned for high-strength strip with a widthof up to 2,050 mm and thicknesses of 1.5to 10 mm. The annual output is 250,000tons. The heart of the line is the precisionleveler with three different roll diametersin a patented cassette module system .Antwerp Decoil Center B.V., Belgium ordereda cut-to-length line for its new steelservice center. The plant is designed forstrip widths of up to 2,050 mm and thicknessesof 2 to 20 mm. Plate lengths of1,000 to 16,000 mm can be processed.Thyssen Krupp Steel AG ordered a levelerfor hot-rolled sheets and strips for itsHüttenheim, Germany works. The leveleris designed for sheet thicknesses of up to60 mm, widths of up to 3,800 mm, andstrengths of up to 2,000 N/mm².WISCO Wuhan Iron & Steel Group Corp.,China ordered an electrolytic galvanizingplant. This line – the first electrolytic galvanizingplant in the Wuhan steel works – willproduce steel strip for the highest qualitystandard of the automotive and electrical applianceindustry. WISCO selected ANDRITZMETALS – with its Gravitel process – asthe main supplier for the process sectionof the electrolytic galvanizing line. After thetwo orders received from Baosteel, Chinain 2006, this is another milestone in thesuccess story of ANDRITZ METALS electro-galvanizingsystems.Taiyuan Iron and Steel (Group) Co., Ltd.,Taiyuan, Shanxi, China ordered three Pyromars-type acid regeneration systems,which completely recover the spent acidsfrom the stainless steel pickling operations.The combined capacity of these plantsamounts to 22.5 m 3 of acid per hour; theywill meet stringent environmental standardsand will minimize discharge of waste materialfrom the pickling lines.From Tianjin Tiantie Metallurgical GroupCo., Ltd, China, the business area receivedan order to supply a complete electrolyticgalvanizing line. This line will produce approximately300,000 tons of high qualityelectrogalvanized steel strip per year forthe automotive, household appliances, andelectronics industries.Tianjin Tiantie Metallurgical Group Co., Ltd,China also placed an order for the supplyof a furnace for a continuous annealingline. It is the second furnace that ANDRITZMETALS will supply to this customer in justtwo years.Baoji Titanium Industry Co., Ltd., China’slargest titanium producer, ordered a picklingline for hot-rolled and cold-rolled stripas well as a 20-high rolling mill with rollgrinding machine. The pickling line has acapacity of 20,000 t/y and will process ti-

Metals067supplier to the automotive industry, entrustedANDRITZ Kaiser with the supplyof an automatic punching machine with apress force of 10,000 kN including ancillaries.Böhler Edelstahl GmbH, Austria awardedANDRITZ Maerz an order to supply heattreatment furnaces for the new Böhlerforge. The scope includes three car bottomfurnaces, three chamber furnaces andthree double chamber furnaces, as well astwo rotary hearth furnaces, each designedfor the high requirements of the aircraftand automotive industry. Böhler is a leadingsupplier to these industries.Based on several successful projects carriedout for German Forge Saar, ANDRITZMaerz received a further order to supplythirteen horizontal and eight vertical heattreatment furnaces for the new forge ofForge Saar/Saarschmiede GmbH, Germany.The furnaces will be used in the heattreatment of forged pieces and for hardeningand tempering rotationally symmetricforged pieces and shafts.Cold-rolled strip annealing and picklingline by ANDRITZ METALS for Taiyuan Ironand Steel (Group) Company Ltd., China.tanium and titanium-alloy strip of 0.3 to7 mm thickness and 600 to 1,370 mmwidth. The 20-high rolling mill is designedfor strip widths of 600 to 1,370 mm andthicknesses of 0.3 to 5.0 mm. The completeelectrical equipment for all plants,including drive systems, automation, andthe required technological controls such asstrip thickness and shape controls will alsobe supplied by ANDRITZ.ANDRITZ Kaiser will supply its largest pressever built (press force 25,000 kN) for makingautomobile parts to the Gutbrod Group,an affiliate of voestalpine Austria.Shortly after launching the new servo-pressseries developed by ANDRITZKaiser, the business area received fourorders for such presses for the rangebetween 3,150 and 8,000 kN.Tower Automotive, a large internationalA heat treatment plant for train wheels willbe supplied by ANDRITZ Maerz to the ironworkscombine Nizhniy Tagil Iron & SteelWorks (NTMK) in Tagil, Russia, a memberof the Russian EVRAZ Group. The plantoperates on the basis of highly advancedannealing technology and will produce trainwheels of the highest quality.DanSteel A/S, Denmark placed an orderwith ANDRITZ Maerz for a double walkingbeam furnace. The special type of walkingbeam furnace will be used for annealingheavy plates.Several heat treatment systems will be suppliedby ANDRITZ Maerz to Buderus EdelstahlGmbH, Germany. The eight batchtypefurnaces with different dimensionswill be used in the heat treatment of forgedparts for the power generating industry.

068 MetalsRESEARCHAND DEVELOPMENTThe research and development activities ofthe business area concentrated on new coatingtechnologies using electrogalvanic andCVD processes(CVD: Chemical VaporDeposition). Both processes were successfullydemonstrated on a pilot scale.In the stainless steel annealing and picklingarea, a new, patented process was implementedfor the first time. It uses the excessheat in the exhaust gas from the annealingfurnace in catalytic denoxification (DeNOxprocess) of the mixed-acid pickling plant.This process significantly reduces energyconsumption for the DeNOx process and reducesthe nitrogen oxide content in the annealingfurnace exhaust gas.The global automotive industry producesover 25 million tons of scrap material peryear when processing galvanized steel. Thebusines area has developed a process torecover the zinc from the scrap material. Thezinc-free scrap is of high value to foundries.This process saves raw materials and reducesthe environmental impact.A high-pressure vacuum strip cleaning systemhas been developed for continuous stripprocessing plants with inline rolling mills. Itfeatures a very compact, low-priced designcompared to conventional systems. Additionally,this system does without chemicalsand is, thus, very environmentally friendly.The delivery program of punching and metalforming presses was extended to press forcesof up to 25,000 kN. In addition, punchingand metal forming equipment with servodrives was developed for the range between2,000 and 8,000 kN.Roll set of a 20-high rolling mill forstainless strip cold rolling.

Metals069ANDRITZ Maerz:the furnace sPeciaListfor the steeL andcoPPer industryIn March 2008, aNDRItZ acquired MaerzIndustrieofenanlagen GmbH basedin Düsseldorf, Germany. the company,which has been renamed aNDRItZMaerz, has a versatile and comprehensivesupply and services program forthermal process plants for the steel andcopper industry and ideally complementsthe Metals business area’s productportfolio.Founded in 1911, ANDRITZ Maerz is one ofthe globally leading companies in the field ofheat treatment plants and melting furnaces.The products and services spectrum comprisesengineering, supply, installation, andstart-up of furnaces for the steel industry aswell as smelting plants for the copper industry.About 85% of annual sales are derived fromsteel industry orders and the remainder fromthe copper industry and other services. Inaddition to the product portfolio customary infurnace construction, the company has specializedon various modernizations for continuousfurnace plants, e.g. pusher-type furnaces.ANDRITZ Maerz leads the market forbatch-type furnaces for highly specializedforges. In 2008, demand was particularlyhigh for sophisticated forging furnaces andheat treatment plants.As for copper, the company is one out offour major global suppliers of systems forprimary and secondary copper production.Apart from innovations such as an elliptic anodefurnace, ANDRITZ Maerz has built theworld’s largest anode drum furnaces with acapacity of approximately 600 tons of copperin China.ANDRITZ Maerz car bottom forging furnace forSaarschmiede GmbH, Völklingen, Germany.Further information on ANDRTIZ METALS is available at:www.andritz.com