Steel Mills
Essar Steel Algoma Planning Capital Investments
Written by Sandy Williams
January 12, 2015
Now that Essar Steel Algoma has its liquidity problems under control, the company is embarking on a CDN $350-$400 million investment plan in its steel mill located in Canada that will span the next 5 to 7 years.
The plan includes optimizing operating capability, enhancing product quality, modernizing production lines and expanding the company’s product mix to serve new and evolving markets, says Brenda Stenta, Manager of Corporate Communications for Essar Steel Algoma. The company will also invest in energy efficiency and environmental initiatives.
First on deck is repair of nine coke oven through walls on the No. 8 Coke Battery, scheduled to begin this spring. It will take approximately 12-18 months to complete the refractory repairs with a break during the winter months when temperatures are not suitable for refractory installation.
The second impending project, is the replacement of four of the hot blast stoves that service the No. 7 blast furnace. One will be replaced over each of the next four years since three are required to keep the furnace operational. The state-of-the art replacements, said Stenta, are more energy efficient, allowing higher blast temperature and working pressure. The result will be a fuel savings of $16.7 million per year after three of the four stoves are replaced.
The two projects described have a combined investment cost of CDN $123.5 million and are part of the overall investment plan for the company. “This modernization of our facility will mitigate risk and ensure our long-term operating reliability,” said Stenta.
Steel Market Update asked if there has been a decision to restart the No. 6 blast furnace.
“We are currently assessing the potential for startup of No. 6 blast furnace in 2015 subject to market conditions,” replied Stenta. “No decision at this time.”
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.
USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!