Metals Magazine editor Dr. Larry Gould met with Dr. Franz Androsch, Head of Research and Development at voestalpine AG, at METEC 2015 to discuss the state of the metals industry.
What are the main challenges that your company is currently facing?
Dr. Franz Androsch: One of the challenges is to follow our customers globally to meet their demand for increased local presence. Our goal is to serve our main customers worldwide, for example, in the premium automotive applications segment, with the high-quality products they are accustomed to. voestalpine is well-positioned because our products are at the top of the quality pyramid. We are increasingly becoming a global company, as evidenced by our new GoWest direct-reduction plant under construction in Texas.
How do you see the future of the steel industry in your market areas, and what factors need to be taken into consideration?
Androsch: The steel industry is growing only slightly at the moment. There is a much higher growth rate for higher-value products such as HSS (high-strength steels), which is expected to increase by some 200% over the next 10 years. There is also an increasing substitution of lower-grade steels with higher-grade steels. Therefore, greater emphasis will have to be placed on quality, not capacity, as reflected in the associated change to our product portfolio. For more than 15 years now, the voestalpine Group has pursued a consistent downstream strategy focused on high-quality products. This has proven to be the key to differentiating us from the competition.
What major activities, efforts, or investments are planned by the voestalpine Group to meet the challenges that lie ahead?
Androsch: Innovation is the keyword for voestalpine’s worldwide success and for meeting the challenges that lie ahead. The current record-breaking budget of more than €140 million shows clearly that research, development, and innovation have top priority at the voestalpine Group. Consistent investment in this key sector is essential, as it is clear to everyone at voestalpine that we can only ensure our future as an international player in sophisticated product segments by specializing and maintaining our technology and quality leadership.
What do you see as the main areas for further research and development to improve production operations, costs, and market opportunities at voestalpine?
Androsch: Three areas: The first is working closely with the K1-Met* competence center to improve process steps and energy efficiency, increase the value of byproducts, and reduce CO₂ emissions. The second area concerns the manifold properties of steel. Research is ongoing, and we are stepping up efforts to improve steel’s strength and formability, including at higher-strength levels. A lot will happen over the next 10 to 15 years. Thirdly, we are advancing innovative production as part of the Industry 4.0 initiative, often referred to as the Internet of Things. In fact, an Industry 4.0 platform is being planned for group-wide application. Industry 4.0 is more evolutionary than revolutionary. We need to take a fresh look at this topic to apply the latest process models, interconnect our complete technology spectrum, improve statistical process models, and increase efficiency and productivity. Developments in automation are also continuing.
voestalpine Stahl and Primetals Technologies recently signed a contract for the installation of an industrial-scale prototype plant for the dry granulation of blast furnace slag. The plant will be built at the voestalpine steelworks in Linz. What targets must be met for this project to be successful? And what is the estimated payback period for this worldwide unique DSG (dry slag granulation) plant?
Androsch: For this project to be successful, the slag granulate must meet the requirements for use as a cement clinker substitute. Secondly, an off-air temperature of 600°C must be achieved to generate superheated steam efficiently. The payback period depends on the energy costs at the time the plant is started up. However, we expect that the DSG plant, with an average slag-flow rate of 2 t/min and a boiler system, will have a payback period of approximately 3 years. As we progress through the project, we will be able to define the payback period more accurately. Don’t forget – this is a development project, not an investment project, so payback remains a moving target.
What could be the energy savings with a fully installed DSG plant at the voestalpine steelworks?
Androsch: We estimate approximately 1.5% of the specific energy per ton of steel, or around 1.5 GJ per ton of blast furnace slag. We need about 500,000 tons of steam per year at the Linz steelworks, and 75% of that could be produced using the DSG process, which would yield substantial energy savings. Energy-efficiency laws will also become increasingly important, which could make the payback period shorter.
In your opinion, what will be the focus of future environmental developments within a steelworks?
Androsch: Increased recycling of byproduct materials, such as sludge, dust, and slag, in a closed-loop cycle. A lot also depends on the EU legislation regarding CO₂. The use of natural gas to produce DRI [direct-reduced iron] at our DR plant in Texas for reduction work will be a step toward lowering CO₂ emissions in iron- and steelmaking. Increasing the share of electric arc furnaces used to produce steel might be an option for the future. A key topic for us within the EU is ensuring a level playing field regarding CO₂ tax costs. But we are now a global company and more flexible, so that we can adapt accordingly.
What are the main criteria that you consider when selecting a technology supplier, and which factors do you value most when dealing with business partners?
Androsch: Business has to be a win-win situation for all parties involved. voestalpine relies on long-term cooperation to sustainably build up its know-how. Suppliers should also keep in mind that they must invest in long-term research.
One final question: how would you characterize the business relationship with Primetals Technologies and its former companies?
Androsch: We have a lot of trust. It’s a long-term relationship and a win-win situation. There is a common commitment to research and long-term development. voestalpine and Primetals Technologies have a decades-long history of cooperative development—for example, with Meros, Selective Waste Gas Recirculation, and Liquirob [robotic solutions] applications in recent years, and now with the DSG project and with fines briquetting for the GoWest DR plant project in Texas. The joint establishment of the K1-Met* competence center of metallurgy represents another milestone for the development of future-oriented technologies. The DSG project fits perfectly within this footprint and serves as another example of both parties' willingness to invest and take risks.
*K1-Met, which comprises industrial and scientific partners, is a publicly funded competence center that focuses on the modeling, simulation and automation of metallurgical processes; on valuation and optimization of metallurgical raw materials and refractories; on development and optimization of processes and key components used in metallurgical plants; and on the implementation of solutions to improve product quality, achieve zero-waste processing in metallurgy, and minimize energy and raw material consumption.
