Former CTO of Primetals Technologies, Dr. Etsuro Hirai, answers questions from customers.
Why is Industry 4.0 so crucial to the future of steel production?
Dr. Etsuro Hirai: To me, at the heart of the concept of Industry 4.0 is knowledge management. One of the central challenges in metals production has always been that there was just so much know-how at work—too much for any one expert to master. Since more data is generated today, the value of this information has not yet been fully digested and transferred from generation to generation. This is where knowledge management comes in, which can make production processes far more reliable and improve the consistency of the end-product quality.
How seriously should I take recent advancements in artificial intelligence?
Dr. Hirai: I think that artificial intelligence needs to be taken quite seriously, even if we are still far away from what Ray Kurzweil calls the “singularity”—the point in time when computers will be advanced enough to host the complexity of human consciousness. But even for today’s steel industry, artificial intelligence is essential. Computer networks have become more powerful, and techniques called “machine learning” and “deep learning” can tackle new kinds of problems. We are already employing these methods in some of our technologies, for instance, in our Through-Process Quality Control solution. An important topic to address in conjunction with artificial intelligence and cloud computing is data security, which we handle with great care. In general, if I look far into the future, I see steel plants operating fully automatically—with very little need for traditional human labor. But it will be a step-by-step process to get there, and it will take several decades.
What are the main trends you see in the Chinese steel industry?
Dr. Hirai: The steel industry in China is now re-adjusting itself. It is following a three-stage plan in alignment with the Chinese government. The first stage is about a reduction in overall production capacity. Much of this downsizing has already taken place. The second stage is about increasing end-product quality. This is a crucial step, but it will take a while to unfold comprehensively. China is home to numerous steel producers, and there is no “one size fits all” type of formula for how production facilities should best be upgraded. The third stage is about changing the structure of the Chinese steel industry. In the years ahead, many producers will move from the blast furnace to the EAF-based manufacturing route, and toward a larger scrap percentage in their raw materials.
What is the greatest benefit of digitalization in steel production?
Dr. Hirai: If implemented correctly, digital solutions can help steel producers to increase productivity and ensure long-term profitability. But it is important to remember that this goal can only be reached if the new digital technologies are combined with state-of-the-art production equipment. In other words, the digital and the mechanical sides of steel production need to come together to form a powerful unity. Let me give you an example: Arvedi Endless Strip Production is highly innovative on the mechanical side; never before has endless thin-slab casting and rolling been this compact, energy-efficient, and environmentally compatible. We are now developing a digital twin of Arvedi ESP to enable sophisticated simulations and make product development much easier and faster. This allows producers to respond more effectively to specific customer orders for new steel grades. Digitalization also allows better quality control, which is particularly complex, mainly when producing advanced high-strength steels or electrical steels.
What are the benefits of collaborating with steel producers remotely—via video link?
Dr. Hirai: In the time of COVID-19, the most obvious benefit is that remote collaborations minimize risk and ensure the health and safety of those involved. Thanks to remote connections, we can provide producers with seamless support and online training sessions. Remote monitoring has become a reality for many steel plants worldwide, and remote maintenance and commissioning are also on the rise. The ultimate target is the “remote factory,” where everything can be controlled from afar. For now, some work still has to be done manually—specifically for hardware implementations. But once the setup is complete, more and more processes will lend themselves to remote execution.
How can metals producers prepare for a low-carbon economy?
Dr. Hirai: At the moment, the best strategy is to aim for flexible production routes in iron- and steelmaking. Over the next few decades, the blast-furnace-to-converter route, which currently accounts for around 70 percent of global steel production, will increasingly shift to electric steelmaking. Direct reduction will become even more relevant, and we are happy to be partnering with Midrex in this regard. Midrex currently relies on natural gas, but eventually, hydrogen will become an option. The hurdle to that happening is not technological but economic. In the long term, our HYFOR technology will enable hydrogen-based fine-ore reduction for absolutely green ironmaking, and carbon capture and storage, as well as carbon utilization, can be part of a greener strategy.
