The world steel production in January-November 2013 increased by 3% on average, in November the production level increasing by 3.6% (127 million tonnes) compared to the same period last year. In November, China reported an increase of 4.2% (60.9 million tonnes), Japan, 8.9% (9.3 million tonnes), while South Korea reported negative results (-0.2%). In the EU, Germany recorded a growth of 5.7%, France 3.5%, and Spain 15.5%.
Figures are promising considering the fact that the steel production fell during the financial crisis, like all the other economic sectors determining the adoption of severe measures consisting in limited activities, stagnation of production, or even sale of assets. The situation has improved, the large companies in the area being motivated to invest in the modernisation of factories, technologies included, to increase the quality and quantity of products. According to the World Steel Association, the industry allocates EUR 12 Billion per year to improvement processes, development of new products and technology innovation. Regarding rail production, companies have chosen to invest in the modernisation of the facilities and technologies they use to produce longer rails which could also provide increased safety. For example, Tata Steel has invested EUR 35 Million in the modernisation and equipment of a plant to double production volumes (from 55 thousand tonnes to 125 thousand tonnes) and manufacture long rails (from 36 to 108 m) using heat procedures. The rail moves through an induction furnace which uses an electromagnetic field to heat the steel to 950°C. The rail is then rapidly cooled using compressed air.
The resulting low residual stresses provide further protection against risk of rail failure compared to other in-line heat treatment processes. The investment resulted in signing a contract with SNCF in January on the supply of 200 thousand tonnes of rails. “We made a significant investment in Hayange to be able to produce the 108m long rail required by SNCF. Our heat-treatment facility means we are also now able to produce highly wear-resistant rails with lengths up to 108m – a key requirement of most of our European customers”, Henrik Adam, Tata Steel’s Chief Commercial Officer, said.
To manufacture the 100-m rails (from 12.5m), Mechel invested USD 715 Million in Chelyabinsk Metallurgical Plant (Russia). The complex includes all necessary technological equipment and uses correction, processing and quality control technologies. The plant’s capacity is of over 1.1 million tonnes of end products per year. The investments in other production centres have made the company secure a long-term contract with RZD, within the Railway Transport Development Strategy by 2030 approved by the Russian Government. Under the contract, Mechel will supply a volume of 400 thousand tonnes of rails by 2030.
“We are the only ones in Russia and the CIS to apply a unique method of heat treatment of rails – the rails are hardened by dipping the railhead into a special solution”, said in an interview AndreyDeinek, Board member of Mechel OAO.
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