Russula Newsletter No 18 English

Russula Newsletter No. 18 | Copyright © by Russula S.A.U. November 2018

Russula invents new

laying head technology

EXCLUSIVE INTERVIEW

Sanjeev Gupta, Founder

of Liberty House and

Executive Chairman of

GFG Alliance, shares vision

of a circular economy.

NEWS

Russula celebrated

thirty years of Exceeding

Expectations at ALACERO

in Cartagena, Colombia.

TABLE OF CONTENTS | Russula Newsletter No. 18 | November 2018

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TABLE OF CONTENTS | Russula Newsletter No. 18 | November 2018

Table of contents

EXCLUSIVE INTERVIEW

Sanjeev Gupta, founder of Liberty House Group and Executive Chairman of 1

GFG Alliance

NEWS

Russula celebrated 30th anniversary at ALACERO 2018 in Cartagena, Colombia 7

TECHNOLOGY

New simplified laying head design solves real-world performance problems 8

BAR & WIRE MILLS

Isdemir grants Russula final acceptance for water boxes 18

Celsa Atlantic chooses Russula to upgrade bar mill 20

INSIDE RUSSULA

Russula launches INSIDE RUSSULA interview series beginning with our Quality, 21

Safety and Environment Department Director, Elvira Martínez Fernández

EXCLUSIVE INTERVIEW | Russula Newsletter No. 18 | November 2018

We’ve got four pillars to the Group

– industrial, infrastructure and

resources, financial services and

property. They all work together

towards a common industrial

strategy based on long-term

economic and environmental

sustainability. Whenever we enter

a new territory all four pillars

come with us.

Sanjeev Gupta

When you founded Liberty House as a trading

company in 1992, did you ever imagine

saving the UK steel industry, Australian

mining and steel industry, Georgetown and

thousands of jobs? Was it destiny, opportunity

or part of the plan?

It’s fair to say that industry and enterprise were in

my blood because both my father and grandfather

were successful industrialists and they encouraged

me as a young child by taking me to see steel mills

in action. It certainly captured my imagination and

gave me a big view of what is possible in industry.

In founding my first company, Liberty, while still at

university back in 1992, I can’t say I’d set out a clear

plan to build or acquire all the assets that GFG companies

have today, but I’ve always had an appetite

to go for the big opportunities when they presented

themselves. Initially this allowed us to build a global

trading company over two decades and lay the

groundwork to build the industrial and energy side

of the business over the past four years when there

have been an enormous number of opportunities

as the world economy has gone through extensive

change.

1


In the acquisition of distressed steel plants,

what do you see that the sellers don’t? How does

your business model differ from other steel producers?

You are able to cut costs, but not jobs.

What are the pillars of a successful turnaround

strategy?

We find synergies and savings through integration.

For example, we integrate metal-making into

downstream manufacturing to create higher-value

products for diverse sectors, including long-term

contracts with big-name OEMs in fields like automotive.

This not only improves margins but makes our

business more resilient in the face of the inevitable

We feel we can achieve success with businesses economic cycles.

where others have tasted failure

because we’re willing to

embrace change, do things

Collocation of metal and downstream

assets is another approach

– for example our

differently and to engender

planned wheels factory at Fort

a fresh enterprising mindset We believe economic and

William will cast liquid aluminium

among the people working in

those businesses. We’re natural

disruptors and champions

environmental sustainability

go hand in hand and that a

circular economy is the way

from the adjacent smelter

directly into finished product.

That approach gives us great

of change. An example of this

forward. For example, we plan agility which is needed because

is our GREENSTEEL model for

everything moves so quickly in

to make plate steel from scrap

sustainable production. In certain

countries, particularly de-

the market.

in Scotland using wind energy

veloped countries, where there to power our furnaces and

We also believe economic and

is an abundance of scrap this mills. We then turn that steel environmental sustainability

will mean more metal recycling.

It also means integrating both

upstream into energy and mining

into towers for our wind farms

in the Highlands which will

generate more green power for

go hand in hand and that a circular

economy is the way forward.

A good example of the

and downstream into en-

our steel mills.

circular economy is the plan

gineering and manufacturing

we’ve got to make plate steel

in order to capture as much

of a value chain as possible.

We also look at where we can

add value by integrating horizontally into things like

financial services.

from scrap in Scotland using

wind energy to power our furnaces

and mills. Then, in our

own fabrication plant, we turn that steel into towers

for our wind farms in the Highlands which will generate

more green power for our steel mills. If that

When we acquire new businesses we have the ability

to make a fresh start, unshackled by past legacies

which might be old debt, a bloated management

structure or just an outdated mindset that we can

help to change. Where possible, we reduce energy

costs by developing renewable sources of supply.

Even with primary steel making we look to newer

technologies to reduce our carbon footprint.

sounds a bit cozy, then trust me it isn’t. Our integration

model doesn’t allow individual businesses to

rest easy within a big group. We pursue ‘decoupled

integration’ and that obliges each part of the business

to build a strong external customer base as

well service its ‘internal’ customers within the group.

There’s no featherbedding. We’re always looking for

efficiencies and increased competitiveness.

2


Steel is a cyclical business. In a downturn economy

will the diversification of your vertically

integrated business portfolio help weather the

storms of price pressures and production costs?

What are the main competitive advantages of

your vertical integration strategy?

Yes; nearly three decades of trading metals worldwide

have shown us how cyclical the metals industry

can be, and how reliance on upstream production

alone leaves you exposed during the down-cycles.

Plugging our metals businesses firmly into downstream

manufacturing, and ensuring we serve

diverse sectors, enables us to manage our own

destiny to a much greater extent. We are naturally

gravitating towards the sectors and sub-sectors

where we can add most value. For example, in automotive

we’ve established good income streams from

supplying volume tubular components to mainstream

car-makers, but we also earn excellent returns

from making low-volume high-end braking

systems for performance cars including Formula 1

and NASCAR.

Our aim is to maximize the raw material cost advantages

and security of supply that come from being

part of a global group – for example supplying competitively

priced slab from Australia to our rolling

mill in Wales, – but making sure at the same time

that we’re sufficiently differentiated to protect margins

during all phases of the economic cycle. That

means applying innovation and enterprise wherever

we can, along the value chain.

Now GFC Alliance business ventures range from

steel, power, car wheels, commodities trading

to financial services. How do you leverage the

synergies without losing focus on each business

unit?

As I’ve said, each strand of the business must stand

on its own two feet and we put top class highly-experienced

directors in place to ensure that’s exactly

what happens. Each unit leader is accountable for

the financial sustainability of their own operation

but can draw cost and operational advantages from

being part of a global group.

All of the directors we’ve put in place have impressive

track records in industry and a clear focus on

what they need to achieve. We ensure they all have

a clear vision of the Group’s overarching philosophy

and plenty of opportunity to interact with each other,

so those synergies grow naturally.

We’ve got four pillars to the Group – industrial, infrastructure

& resources, financial services and property.

They all work together towards a common industrial

strategy based on long-term economic and

environmental sustainability. Whenever we enter a

new territory all four pillars come with us.

What is your growth strategy based on? Geographical

expansion, the right opportunity, business

diversification?

Certainly, it means geographical expansion and

grasping opportunities. Right now, we’re expanding

into the USA, India and continental Europe; all of

these are economies full of opportunity; particularly

India which is set to grow at an extraordinary rate.

Yes; we are always on the lookout for acquisition

opportunities that fit with our integrated vision and

that align with emerging market opportunities. For

example, we’re growing rapidly in the aluminium

space having had the opportunity to acquire the

UK’s last smelter in Scotland and Europe’s largest

smelter at Dunkirk in France. This fits well with the

automotive industry’s move towards lighter weight

3


materials to optimize fuel consumption. We’ve

staked our claim to a share of that automotive

market too as we’ve acquired an existing aluminum

wheels plant in France and secured planning

permission to build a new wheels plant next to our

smelter in Scotland, which will supply the UK car

market. Diversification is always on our agenda, but

it must be a strong fit with our existing business and

blend with our vision for sustainable industry.

Where do you see the alliance in 10 years? Selling

electric cars?

What technology developments look the most

promising in the future?

Batteries are the great disrupter. With the advent

of batteries and solar power we will see generators

becoming smaller and more local to the consumer.

As the cost of batteries gets cheaper everyone will

have the potential to become a generator as well

as a consumer. That will change the way we think

about life. It will be a different world. If we look at

large-scale generation; tidal is an area that is still under-developed.

It’s ironic that some people have accused us of

obsessing over what they would see as sunset industries

such as metal manufacturing in Western

economies. The reality is that we have our eyes very

firmly fixed on the future; the new technologies and

the big emerging market opportunities. Applying

new technologies to generate and distribute green

power is a growing area for us. We’re already heavily

invested in solar, hydro and wind and we’re taking

forward projects both in the tidal power sphere and

in generating energy from waste. Electric cars are a

huge opportunity.

Governments want traditional petrol and diesel

vehicles off the road within the next 25 years so

pressure to deliver affordable electric vehicles and

the infrastructure to go with them is rising. We’re

already in the automotive market as a metals and

component manufacturer and we’re investing significantly

in the application of battery technology, so

it should be no surprise that we would be looking

closely at electric car production as an opportunity

we could take forward with partners. One thing that

the last 25 years, and particularly the last four years,

have shown is that the GFG Alliance doesn’t stand

still.

Of all the renewable energy technologies, wind,

wave, sun, hydro, which is the most efficient

and sustainable?

This will vary from place to place across the world. It

depends on available natural resources. For example,

in the UK, onshore wind is probably the most

cost-effective source of green energy at the moment

so we’re investing around £150m in a 168 MW

wind farm in Scotland, whereas in Australia we’re investing

in a 280MW solar farm at Cultana near our

Whyalla steelworks as part of a $1billion green energy

program there.

How do you anticipate Brexit will impact the UK

steel operations?

Europe is still a very significant market for UK steel

so it’s important we can negotiate a good trade deal

that allows that to continue and to grow. At the

same time, we at GFG aim to build our share of the

domestic market for steel and steel products so, in

some respects, Brexit may help us by encouraging

UK manufacturers to buy more British-made materials

and components. Like everyone else we’re

watching the negotiations very closely.

4


What % of the power consumed by our steel

plants comes from renewable energy sources?

Because we produce more renewable energy overall

than we consume we can argue that all of the

power consumed by our steel plants comes from

renewable sources, though not directly in all cases.

What are your expansion plans in the NAFTA

and Latin America?

GFG Alliance has been very active in India recently

in a bid to acquire bankrupt steel companies

under NCLT proceedings. Do you see a good

opportunity in the near future in the Indian steel

sector?

Yes. We’ve already had our bid accepted for Adhunik

Metaliks at Chadrihariharpur which makes specialty

steels for automotive and numerous other sectors.

We’re also bidding for other steel assets.

At present our focus is on North America, though

we see Latin America as a longer-term opportunity.

In the US and Canada, we’re looking to replicate

what we’ve done in other global hubs; create a robust

business with metals-making at its core, that is

sustainable through business cycles. In the shorter

term we’re looking to increase our position in the

metals-making space by adding to our output from

Liberty Steel Georgetown South Carolina and getting

into aluminum production as well. Once we

have critical mass we are looking to add raw materials

– scrap, mining and power – to the program

as well. Additionally, we will look to invest in downstream

activities that fit with our investments to help

us get closer to the end customer and add more

value.

India’s industrial economy is growing substantially,

driven by demographics, rising educational standards

and a growing consumer market. Steel as a

foundation sector will be an essential component in

this expansion and we want to be part of that, particularly

in the downstream activities where we’re

already investing in the automotive sector through

our acquisition of Amtek Auto. A strong steel footprint

in India will underpin our stake in India’s burgeoning

economy.

When do you predict that the sleeping tiger of

India will wake up? Will the tiger’s voracious appetite

in steel consumption reach the levels of

the Chinese dragon? What are the challenges in

leading local businesses, globally?

What opportunities do you see in Africa?

Much of our family’s earlier business success was

based out of Africa so inevitably it is on our radar

for the future but right now our focus is on USA, Europe,

India and Australia.

We only need to look at the demographic projections

to realize that the pace of growth is going

to accelerate rapidly over the next decade. India’s

working age population will exceed 1 billion by 2030.

By then, India’s median age will be 32 compared to

42 in China. A big proportion will be well-educated

aspirational people with a big appetite for consumer

goods such as cars and white goods. Indian industry

needs to grow rapidly both to satisfy that demand

and provide jobs for its growing population. There

are currently constraints on investment by Indian

businesses, so I believe foreign direct investment

5


by companies such as ours will provide a significant

part of the answer. There’s no doubt that working

within the Indian system currently presents challenges,

but we have a talented team on the ground

well capable of navigating their way through this.

With this rapid pace of acquisitions, how do

you manage a healthy life/work balance?

opportunities to share their views with management.

We regard trade unions as partners who have

a commitment to the future of the industry and we

work closely with them to build that future.

If GFG Alliance were to become a partially listed

company in the future how would your management

approach change?

Fortunately, we’ve got many very high-caliber people

across GFG worldwide – some who came in through

acquisitions and others we’ve recruited from elsewhere.

Their talents and commitment have lessened

the burden and given me the confidence that

our new acquisitions are being nurtured and integrated

properly. Nevertheless, the pace of growth

makes work very demanding so thankfully I have a

very understanding family who get involved in GFG

events and activities and that enables me to balance

work and family life a bit better.

In the name of the GFG Alliance you have welcomed

the newly acquired steel companies as

joining the family. Russula is also a family owned

and oriented business. How does family orientation

filter into the corporate culture? What

are the core elements of your management approach?

Yes, we refer frequently to the GFG Family, not just

because it’s a family-owned company but because

we regard everyone within the business globally

as part of a family with shared experiences and

objectives and hopefully a strong commitment to

each other. When a business becomes part of the

group we hold an inauguration celebration on site

to mark the occasion and involve as many people

as possible. We ensure people in all parts of the

group are kept informed of developments through

regular communications and that they have regular

We are already moving in that direction because a

listing of parts of the group is something we’re considering.

In advance of that, our aim is to increase

transparency and strength of governance but at

the same time combine that with an entrepreneurial

spirit and flair. We have one listed entity within

the alliance – the renewable power company SIMEC

Atlantis Energy PLC in which we hold a 49.99%

share. Moreover, Wyelands Bank, which is owned by

a Gupta Family trust, is overseen by the UK’s Prudential

Regulation Authority. We’re conscious of

the possibility that other parts of the GFG could be

floated at some point in the future so, while we want

to preserve and encourage entrepreneurial flair

across the Group, we are already moving towards

levels of reporting and transparency that are more

in line with the culture of a listed entity.

What advice can you give to the future generations?

Embrace change and be persistent. They should remember

that life is all about evolution and moving

forward so be prepared always to embrace change

or to be the agent of change. At the same time, be

persistent because sometimes things take a bit longer

than you expect.

6

NEWS | Russula Newsletter No. 18 | November 2018

Russula celebrated 30 years of Exceeding

Expectations at Alacero in Colombia

7

TECHNOLOGY | Russula Newsletter No. 18 | November 2018

Patent Protected Laying Head Technology for

Efficient Steel Production

8


New simplified laying head design

solves real-world performance problems

Today’s global market demands steel producers to roll top quality products faster and more

efficiently. The high-speed rolling environment at high finishing block speeds can create

performance and maintenance issues for the laying head equipment. Russula has patented

a new, simplified, laying head design that reduces maintenance downtime, noise and power

consumption and extends the life of the equipment.

High-speed production reflects

competitive market demand

New laying technology improves

performance and maintenance

The key to success in today’s high-speed rod rolling

mills is to modernize existing equipment with new

technology that will streamline costs. These modernizations

can provide consistent operations with

higher speeds, less maintenance, reduced downtime,

extended component life and less need for

operator intervention.

Russula has developed a new laying head design

that improves equipment performance and simplifies

maintenance. The patented technology involves

reconfiguring the laying head equipment to reduce

power and noise levels, minimize the wear and tear

on expensive parts such as the split ring and eliminate

costly spiral bevel gears.

As finishing block speeds have risen to 120 m/s and

beyond, the expectation is that this is just the beginning

of a continuous growth spurt to meet today’s

competitive demand for superior quality products.

But the high-speed environment creates performance

and maintenance issues for the laying head

equipment that industry technologists are working

to address. Of all the high-speed equipment, the

laying head is specifically plagued by many performance

problems such as complicated pipe changes,

difficult head and tail end control, wear and tear of

the split ring, a lot of noise and vibration and leaking

labyrinth seals.

Russula is focused on developing the next generation

of rolling mills that save energy and maintenance

costs. The new laying head technology fits

right into the company strategy, resulting in simplified

maintenance, lower repair costs, reduced power

consumption and a friendlier work environment

- all while delivering superior performance.

There are five main benefits:

1) Faster pipe changes

2) Fewer TEC plate components to maintain

3) Reduction of split ring wear and tear

4) Noise and power reduction

5) Re-designed motor integration

9


Standard laying head technology

Pipe change-out time: 30-45 minutes pipe

Russula laying head technology

Pipe change-out time: 15-30 minutes

On average standard laying head technology has

14 support clamps and it takes between 30 to 45

minutes to change the pipe.

Russula has reduced the number of support clamps

to 9, which speeds up the change out time to 15-30

minutes.

Simplified pipe support speeds- up laying head pipe change

In today’s rolling environment of intense speeds, the

production of small diameter wire rod can burn up

the laying head pipe and require periodic replacement.

The question is not if, but when, and a reality

that many wire rod producers must address during

every rolling campaign. No one wants to stop production

to change out the laying head pipe.

Typically, laying head pipes have 14 clamps. Russula

has redesigned the pipe support and reduced the

number of clamps to 9, without reducing product

integrity, functionality or durability. Now mill operators

can change the laying head pipe easily and in

less time.

Difficult access to the laying head pipe increases

production downtime. Current laying head designs

require the removal of multiple segment plates,

most have an average of five plates, or ten separate

pieces, which need to be removed in order to

access and change the burned out pipe. Russula

has simplified the process by reducing the number

of plates to four pieces that require replacement,

thus making it much easier for the mill operators

to access the pipe and change it out in record time.

10


Faster pipe changes Fewer TEC plate components Split ring wear and te

11


ar reduction Noise and power reduction Re-designed motor integration

12


The Russula TEC design consists of

only four components or segments

attached by eight bolts, covering

less than 180 degrees.

Streamlined TEC design ensures quality front and tail end control,

with significantly reduced parts

One of the most aggravating quality performance issues

in a rod mill is poorly shaped tail ends and malformed

“knots”. Superior tail end control (TEC) is an

absolute necessity to prevent this from happening

while rolling small diameter, high-speed products at

optimal capacity.

Current state-of-the-art TEC plate technology can

be a number of systems, from a continuous trough,

to many, many plates bolted to a hub covering 360

degrees. Maintaining and replacing these systems

takes time. In addition, there are further complications

in ensuring that a plate style system fits correctly

and does not contact the split ring.

Dogmatically, rolling mill experts believed that 360

degrees of tail end control was both optimal and

necessary to achieve the ideal control of tail ends

at high speeds. Fieldwork and testing have since

proven differently, and that the TEC design itself can

have a detrimental effect on the pattern exiting the

laying head.

Russula’s streamlined design simplifies the process,

ensuring quality front and tail end control, with significantly

reduced parts. This is accomplished by

minimizing the TEC plate to be to as short as required

to deliver proper tail ends, while creating the

best possible laying pattern. The design consists

of only four components or segments attached by

eight bolts, covering less than 180 degrees.

The simplified process of maintaining and replacing

fewer components signifies that mill operators can

run production at maximum capacity, while reducing

delays due to maintenance of the plates, which

is intensive and challenging. With this new design,

there are fewer components to maintain and replace,

and changing them is much easier yielding

substantial savings in maintenance costs.

13


Reduced split ring wear and tear

Split ring wear and tear reduced, eliminating broken

tail ends. In Russula’s new design, the tail end

control segments are completely enclosed so that

the wear and tear on the split ring, the stationary

component that goes around the TEC plate, is dramatically

reduced, which in turn eliminates the rod

slipping between the plates and destroying the tail

ends. Rod mills that roll small-diameter products

at high speeds struggle to consistently maintain a

uniform gap between the tail end control segment

plates and the split ring as time goes by.

Because the laying head segments are completely

encapsulated (Fig. 5) in this new design, it prevents

the wire rod from touching the split ring, reducing

wear and tear. And because this wear and tear is

reduced, the head and tail ends are prevented from

finding the gap between the typical TEC plate and

the split ring, which destroys tail ends and leads to

head end cobbles. The “end” result: better performance,

less downtime and far simpler maintenance.

By completely enclosing the TEC segments, Russula

has developed solution that eliminates wear and

tear on the split ring, extending its life, and eliminating

a real-world maintenance issue.

14


Noise and power reduction while

operating at high speeds

Revamped motor orientation

streamlines maintenance

Russula performed a study on the laying head pipe

support and frictional losses between the pipe

support and the environment in which it operates.

In conventional supports, under normal operating

conditions, the scroll plate pushes air out of the way,

which consumes a lot of power and generates a lot

of noise. Like a typical rotary fan, one part of the

total power consumed is directly proportional to

the total pressure increase in the fan, and the air

volume moved by the fan. In Russula’s laying head

design, air is allowed to pass through pipe support

airfoils so the air wraps around the supports and

pipe, as shown in the top figure on the next page. In

effect, this reduces the noise and power required to

operate the laying head at high speeds.

Because of the design of the airfoil supports, specifically

the surface finish of the support and the overall

tight balance, both the total pressure increase

and the volumetric flow rate of air are reduced. The

air flows around these supports instead of being

pushed by them, as simulated in the bottom figure

on the next page. This is a radical change from existing

pipe supports currently available in the market.

Reduction in aerodynamic load on the pipe support

makes the operation of the laying head much more

stable and controllable; the accuracy of front end

positioning is improved.

Russula has redesigned the motor configuration of

its latest laying head technology, allowing for tighter

tolerances to be used in the labyrinth seal design,

which keeps oil from escaping and causing environmental

problems. All of this is possible because

the axial alignment and positioning of the quill are

greatly improved in this new system.

In the current Russula design, the centerline of the

motor is parallel to the centerline of the laying head,

as shown in the photo of page 17. It sits on the same

integrated base as the laying head itself, which creates

a more compact, stable footprint. Because of

this configuration, expensive spiral bevel gears in a

typical laying head are eliminated; they are replaced

with more affordable, helical gear sets.

The axial alignment, using helical gears, also better

positions the quill inside the assembly to a tighter

specification and this enhanced positioning of the

quill determines how the oil flows through the labyrinth.

In Russula’s new design, the static and rotary

portion of the labyrinth seal are positioned very

close to each other, which makes it harder for oil to

travel through the labyrinth and helps prevents oil

leakage.

The end result is that the audible signature of the

machine is reduced, as well as the required power

to run the equipment at both steady state and when

fast, front-end positioning corrections are required.

The noise reduction creates a friendlier work environment

and the reduction in power consumption

results in more energy savings for mills.

15


Top figure: In Russula’s new laying head design,

air passes through pipe support airfoils so the air

wraps around the supports and pipe, reducing the

power required to operate at high speeds.

Bottom figure: The design of the laying head technology

has been radically changed such the air

flows around these supports, instead of being

pushed by them, resulting in energy savings and

a friendlier work environment for the operators.

16


The revamped axial positioning of the motor in

Russula’s newest laying head design provides

better control of the quill positioning, which

ensures a tighter labyrinth seal and less oil

leakage.

Photo courtesy of Silat Plant in Brazil. Russula’s

new technology has been in operation in this wire

rod mill since January 2017, operating at 110

Russula’s patented laying head technology provides competitive edge to

high speed wire rod mills

In today’s competitive steel industry, the time is right

for mill operations to look at ways to enhance performance,

improve product quality, while lowering

expenses. The modernization of the laying head

technology in high-speed wire rod mills is critical to

the success of the rolling process.

This new laying head design is currently available for

all future rolling mill upgrade projects supplied by

Russula, and is also available for new installations.

The new patented technology reduces maintenance

downtime, noise and power consumption and extends

the life of the equipment.

Russula has invented a radically re-designed laying

head technology that helps address a high speed

wire rod mill’s most pressing problems.

- Simplified pipe change process by

eliminating 36% of the clamps used on

standard technology

- Completely encapsulated TEC plate,

preventing maintenance issues and reducing

downtime

- Reduced wear and tear on the split ring

- Eliminated trapped and broken tail ends

- Lowered power consumption and reduced

noise

- Reconfigured the motor, providing tighter

control positioning of the quill and better

tightening

17

BAR & WIRE MILLS | Russula Newsletter No. 18 | November 2018

Isdemir grants Russula final acceptance

for water boxes

Russula supplied two water boxes for the Isdemir wire rod mill located in İskenderun, Turkey

Isdemir chose Russula to install two of the four water

boxes of the wire rod mill. Russula was responsible

for the engineering, installation advisement,

commissioning support and spare parts supply.

After the successful upgrade of the automation system

and drives of the two-line wire rod mill in 2015,

Isdemir chose Russula to install two of the four water

boxes of the wire rod mill. Russula was responsible

for the engineering, installation advisement,

commissioning support and spare parts supply.

All detail piping, engineering and installation were

executed by Erdemir Mühendislik.

In February 2018, the equipment was shipped to

the plant and on March 8th Isdemir stopped production

to install the water boxes. Shortly after, on

March 23rd, the installation was completed and the

commissioning successfully took place.

18


New water boxes improve temperature rod temperature homogeneity

Not only was the homogeneity of the bar increased,

but also the water flow rates were reduced by more

than half compared to the existing line. The total flow

needed to reduce the bar’s temperature to 230ºC in

the other cooling line was 124 m 3 /h. In comparison,

the line with the new water boxes only required 70

m 3 /h to reduce the bar’s temperature to 230 ºC.

About Isdemir

Isdemir, owned by OYAK Mining Metallurgy Group,

is Turkey’s only integrated iron and steel plant that

produces both long and flat steel. It is located in

İskenderun, in the province of Hatay, on the Mediterranean

coast, in the south of Turkey.

On June 8th Isdemir granted Russula final acceptance

for the water boxes. Russula would like to

thank Isdemir for their trust and excellent collaboration.

19


Celsa Atlantic chose Russula to upgrade

bar mill

Celsa Atlantic chose Russula to perform a mechanical

upgrade that allows the plant to roll 180 mm

size billets on both the bar and wire rod mills. The

objective of the upgrade was to achieve greater

flexibility and a higher tonnage output per billet. Included

within the mechanical scope of supply were

two roughing mill RCS stands, by-pass roller tables,

pinch rolls, toggle shear and looper.

The two RCS stands were installed after the reheat

furnace of the bar mill along with a bypass roller

table to replace the stands when they are not required

by the production schedule. High rigidity,

simplicity and reliability are the features of Russula’s

housingless mill stands. Once a stand is installed,

the only connection required is the air-oil connection;

operations and maintenance procedures have

been simplified to the fullest.

Russula is supplying an interconnecting trough to

connect the two mills. The trough is movable and is

designed to reduce the switching time. Two guiding

pinch rolls, a horizontal looper table, toggle shear,

electrical and pneumatic systems are all included

within the trough scope of supply. The ability to roll

180 mm square billets on both mills provides Celsa

Atlantic not only with higher flexibility but also cost

savings.

process together with premium materials is why

Russula rolling stands are built to last.

The equipment was installed during planned shutdowns

in September and October, 2018. The commissioning

occurred as scheduled on November 18,

2018.

As Russula celebrated its 30th anniversary this year,

it is time to reflect on how it all began. Twenty-nine

years ago, Celsa was Russula’s very first customer,

a long-lasting partnership that has spanned many

projects and many countries. With gratitude and

appreciation, Russula would like to thank Celsa for

their continued trust and confidence to undertake

this mechanical revamp.

CELSA Group is the second largest manufacturer

of long steel products in Europe, being the most

diversified and vertically integrated. With industrial

operations in Denmark, Finland, France, Ireland,

Norway, Poland, Spain, Sweden and United Kingdom,

CELSA Group produces steel exclusively in

electric arc furnaces, using recycled metal scrap as

raw material, contributing significantly to the preservation

of the environment.

The rolling mill stands and accompanying equipment

for the interconnection were manufactured

and assembled in reputable workshops throughout

Europe. Close proximity to the Russula headquarters

allowed the engineers to perform frequent

quality checks. Strict controls in the manufacturing

20

INSIDE RUSSULA | Russula Newsletter No. 18 | November 2018

[ INSIDE]

How do we measure customer satisfaction?

How do we keep employees motivated?

How do we deliver quality work year after

year? Find out the answer to these questions

and many more in INSIDE RUSSULA,

a series of extensive interviews with auspicious

members of our team.

Elvira Martínez Fernández

Quality, Safety and Environment Director

How and when did the need to implement a

quality, safety and environmental system arise?

At the end of the 90s, Russula management

detected that many of our customers increasingly

required certified suppliers according to internationally

recognized quality standards, for they generated

an extra level of trust. This triggered Russula

to carry out the implementation and subsequent

certification of its management system according to

the international quality standards of ISO 9001 and

environmental standards of ISO 14001.

Why a department? What are the functions and

benefits?

This Department of Quality and Environment was

born out of necessity. Once the management system

was implemented, it had to be maintained.

An integrator was needed from all areas of the

company, who did not depend on any particular

area but had a general vision of all of them. Since

2007, our department has transformed into the

Quality, Safety and Environment Department by

incorporating the OHSAS 18001 health and safety

standard guidelines into the management system.

In addition to maintaining the implemented management

system, the functions of this department

are to assist all staff in defining and keeping updated

on the different operating, strategic and support

processes of the company. These processes are

adapted to the different regulatory frameworks. Activities

are supervised and carried out according to

the stipulated standards and the requirements established

internally and by our clients.

It is essential that the processes of the system are

a true reflection of reality, which helps facilitate

decision making and contingency planning, in the

21


event of any incident, and that the processes evolve

depending on the changes that may occur in the

company and in the environment.

project. The method takes in account client’s complaints,

which can penalize the final numerical result.

All the information gathered, is analyzed, and

if needed, actions to improve customer satisfaction

The most relevant benefits are to increase customer

satisfaction, work in a more orderly and efficient

way, control possible deviations in the execution

of processes, improve the quality of our products

are planned and implemented. The level of customer

satisfaction has been increasing within Russula

over the years, and is currently above 85%, which

we value positively.

and services, reduce as much

as possible our impact on the

environment, ensure the safety

and health of our workers and

Over the years, how has the

integration of quality, safety

and environment in Russula

comply with current legislation

evolved?

The level of customer

of application.

satisfaction has been

When I was entrusted with the

increasing within Russula

How do you measure

task of organizing the quality

customer satisfaction?

over the years, and is

system, I started by familiarizing

We have developed a procedure

that allows us to measure and

calculate a numerical value of

customer satisfaction. This value

is compared to a threshold value,

currently above 85%,

which we value positively.

myself with the different work

procedures that were carried

out in Russula, adapting them to

the ISO standards of reference

together with the head of each

department in the company, implementing

above which we consider that the customers are

satisfied.

and monitoring them. The standards at

that time were very focused on the generation of

records as a method of evidence of compliance with

The procedure considers different methods of measurement

by analyzing feedback from the client’s

point of view; projects are analyzed in terms of the

product/service quality, if the product/service meets

requirements, which involved an additional effort

in the definition of records as well as in their subsequent

completion and revision since no one was

used to documenting.

their expectations, how we are compared with our

competition and their assessment of the safety and

environmental behavior of our technical staff in their

facilities and our ability to solve unforeseen issues.

The norms have been evolving towards other ways

of evidencing the work being undertaken which has

helped the system generate the necessary and useful

documentation in each process, defined many

Project feedback is acquired through surveys that

are sent to the customer at the end of the project,

through feedback provided by the Russula project

managers, and through technical closure meetings

times by the workers themselves. This has helped

changed the perception of the system, as something

integral, and we no longer hear the expression

“what the quality department wants”.

with the Russula staff who have participated in each

22


Working groups have been created as a programmed

method for the participation of all workers in matters

related to safety, quality and the environment in

their day-to-day work. This has also contributed and

contributes to a greater awareness and integration

of the system within the company.

Since the department was created, there have been

three revisions of the ISO standards, each one

involved successive updates of the management system.

The current focus is by processes and from the

perspective of risk analysis and opportunities for improvement

within the company’s strategy. Employees

within Russula identify themselves with the processes

that they follow because they have participated to a

greater or lesser degree in defining them.

Last year we made the transition to the ISO 9001:

2015 and ISO 14001: 2015 standards of quality and

environment, respectively, and we expect to make

the transition from the OHSAS 18001: 2007 safety

and health standard to the new ISO 45001: 2018

standard next year.

How has the mentality of workers changed towards

safety and the environment in the last

two decades?

Radically. These concepts are increasingly rooted in

society and nobody within Russula is oblivious to it

and it shows in their behavior, by their commitment

and awareness, which is also reflected within the society

in general.

Do you think there is much left to do? Is there

room for improvement?

Of course, there is room for improvement, there

is much to be done, and not improving would be

moving backwards. The implemented management

system is based on continuous improvement and

provides tools that helps us improve every aspect of

the organization, to name a few, the internal audits

and follow-up reviews with Management where the

objectives and strategies are set.

What was the easiest and most difficult thing?

Nothing has been easy. The hardest thing was and

still is telling people how they have to work without

them feeling invaded. Ultimately, we convey the need

to establish certain controls in the performance of

their functions as an element of improvement.

What do you value most about working at

Russula?

Undoubtedly, its human capital and its technical

capacity that has made possible its growth thanks to

innovation, product diversification and adaptation

to market demands, responding to the increasingly

difficult challenges demanded by industry and society.

23

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Companhia Brasileira de Alumínio Grupo Ferroreste Ugitech Celsa Votorantim Kroman Celik Isdemir Sinobras

Store Steel Ternium Severstal Laminoir des Landes Altos Hornos de México Erdemir SIDENOR Group Celsa

Nucor Steel Big River Steel Gerdau ArcelorMittal Evraz Grupo Virgil Steel Dynamics Posco Yolbulan Metal

PROTEC Coating Company Cascade Steel Izmir Demir Celik Steel Special Metals Antara Steel İÇDAŞ, Steel

Commercial Metals Company Kyoei Steel Keystone Steel & Wire SIMEC Novelis Siderúrgica Latino America

Laminoir des Landes Altos Hornos de México Companhia Siderúrgica Nacional Sidenor Group Tata Acerinox

Companhia Brasileira de Alumínio Grupo Ferroreste Ugitech Celsa Votorantim Kroman Celik Isdemir Sinobras

Store Steel Ternium Severstal Nucor Steel Big River Steel Gerdau ArcelorMittal Evraz Grupo Virgil Posco

Steel Dynamics Yolbulan Metal PROTEC Coating Company Cascade Steel Izmir Demir Celik Steel Special

Metals Antara Steel İÇDAŞ, Steel Commercial Metals Company Kyoei Steel Keystone Steel & Wire SIMEC Novelis

ArcelorMittal Evraz Grupo Virgil Steel Dynamics Posco Yolbulan Metal PROTEC Coating Company Cascade

Steel Izmir Demir Celik Steel Special Metals Antara Steel İÇDAŞ, Steel Commercial Metals Company Kyoei Steel

Siderúrgica Latino America Laminoir des Landes Altos Hornos de México Companhia Siderúrgica Nacional Celsa

Gerdau Isdemir PROTEC Coating Company Celsa

Cascade Steel ArcelorMit-

30 YEARS

EXCEEDING EXPECTATIONS

tal Cascade Steel Isdemir

Big River Steel Isdemir SIDENOR Group Novelis

Posco Ugitech Big River Steel Gerdau Severstal

Yolbulan Metal Tata Laminoir des Landes Sidenor Group Tata Acerinox Grupo Ferroreste Ugitech Celsa Group

Votorantim Evraz Kroman Celik Erdemir SIMEC ArcelorMittal Nucor SteelStore Steel Ternium Severstal Nucor

Steel Grupo Ferroreste Ugitech Evraz Special Metals Antara Steel İÇDAŞ, Steel Commercial Metals Company

Evraz Big River Steel Gerdau ArcelorMittal Evraz Grupo Virgil Steel Dynamics Posco Cascade Steel PROTEC

Coating Company Cascade Steel Izmir Demir Celik Steel Special Metals Antara Steel İÇDAŞ, Steel Commercial

Metals Company Kyoei Steel Keystone Steel & Wire SIMEC Novelis Siderúrgica Latino America Laminoir des Landes

Altos Hornos de México Companhia Siderúrgica Nacional Sidenor Group Tata Acerinox Companhia Brasileira

de Alumínio Grupo Ferroreste Ugitech Celsa Votorantim Kroman Celik Isdemir Sinobras Nucor Steel Big River

Steel Gerdau ArcelorMittal Evraz Cascade Steel Izmir Demir Celik Steel Special Metals Votorantim Gerdau

Store Steel Ternium Severstal Nucor Steel Big River Steel Gerdau ArcelorMittal Evraz Grupo Virgil Posco Yolbulan

Metal PROTEC Coating Company Cascade Steel Izmir Demir Celik Steel Special Metals Antara Steel İÇDAŞ,

Steel Commercial Metals Company Kyoei Steel Keystone Steel & Wire SIMEC Novelis Evraz Siderúrgica Latino

America Laminoir des Landes Altos Hornos de México Companhia Siderúrgica Nacional Celsa Sidenor Group

Tata Acerinox Companhia Brasileira de Alumínio Grupo Ferroreste Ugitech Celsa Votorantim Kroman Celik Isdemir

Sinobras Store Steel Ternium Severstal Nucor Steel Big River Steel Gerdau Ugitech Celsa Votorantim

Kroman Celik Isdemir Sinobras Store Steel Ternium Severstal Laminoir des Landes Altos Hornos de México

Erdemir SIDENOR Group Celsa Big River Steel Gerdau ArcelorMittal Evraz Tata Acerinox Big River Steel Isdemir

24

Headquarters

Galileo Galilei 8, Bajo B

15008 A Coruña Spain

T: +34 981160344

Electrical Workshop

Polígono Bergondo

C/Parroquia Rois D-7 15165

A Coruña Spain

South America

Av. Ibirapuera, 2907

Indianópolis Sao Paulo 04029-200 Brazil

T: +55 11 5044 8847

North America

284 Cramer Creek Ct

Dublin OH 43017-2584 USA

T: +1 614 389 3709

Rolling Technology Center

559-202 Main Street

Sturbridge MA 01518 USA

T: +1 774 452-4411

Mexico

Ciudad Victoria 1022

Monclova Coahuila Mexico

T: +52 (55) 5564 1419

Italy

Viale del Ledra 108

33100 Udine Italy

T: +39 0432 231911

Russia

Nekrasova str. 41A, office 93

Yaroslavl, Russian Federation

150040

India

Plot No: 727 3rd floor

Bivab Gulmohar Nayapalli

Bhubaneswar Odisha India 751012

T: +91 0674 2420196

Russula S.A.U. Certifications

Russula Newsletter No 18 English

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