A half-century ago, POSCO was a just new ‘kid’ in the industry but now, the company proudly ranges with the world’s top steelmakers.

One billion. The number itself is remarkable, of course, but there are countless details the number alone can’t fathom. To dig deep into what it all means, POSCO Newsroom traces the footsteps that led to the one-billion record. POSCO Newsroom reports.

l The Footsteps that Created the Legend

After the first drop of molten iron on June 9, 1973, POSCO shipped out its first steel products on August 1 the same year. In 1981, the company saw the completion of phase 4 Pohang Steelworks construction, followed by the opening of Gwangyang Steelworks in 1983. In 1989, POSCO achieved the cumulative crude steel production of 100 million tons. POSCO completed all construction work of then Pohang Iron and Steel Company in 1992, thereby increasing annual crude steel production capacity to 21 million tons. Since then, POSCO saw a steady increase in its production capacity, leading to the current annual production of 37 million tons of steel.

In 1994, POSCO achieved the crude steel production of 200 million tons. In the same year, the company also was listed on the New York Stock Exchange (NYSE) before any other Korean company. In 1998, POSCO’s production shot through 300 million tons, followed by 500 million tons in 2005. 2005 also marked the first year POSCO made the DJSI list for its sustainable management practice.

* DJSI Dow Jones Sustainability Index:
Launched in 1999, the DJSI evaluates a company’s sustainability performance — it’s the longest-running global sustainability benchmark worldwide and has become the key reference point in sustainability investing for investors and companies. The DJSI assesses various issues including corporate governance, climate change mitigation, and labor practices reflecting the trend to reject companies that do not operate ethically.

In 2011, the year when the cumulative crude steel production broke 700-million mark, Pohang No.1 furnace was selected as Korea’s economic National Treasure No.1 by domestic media. The company went on to received the prestigious $10 billion Export Tower award in 2017 — and finally this year, shortly after its selection of global lighthouse factory, POSCO achieved a cumulative steel production of one billion tons. The year 2019 is also the tenth year POSCO came in the top of the WSD competitiveness ranking, solidifying its stature as the No.1 steelmaker. In each year towards POSCO’s steady race to one billion, POSCO left marks of growth, both big and small.

The one-billion production was not an event created overnight. It was a long, arduous and enduring process holding the heart and souls of people in and out of POSCO communities.

l Tracing One Billion POSCO across Products

Tracing POSCO steel across different product categories —such demand industries as automobiles, construction, industrial machinery— the hot-rolled steel was the most sought-after, with 330 million tons in sales volumes.

Cold-rolled steel came in second — altogether 270 million tons were sold. This product line includes many high-end products such as GIGA STEEL and PosMAC, etc.

What about thick steel plate? As an indispensable product for Korea’s industrial development, 140 million tons of thick steel plate was produced. As for stainless steel, POSCO produced 71 million tons. In addition, POSCO produced 42 million tons of wire rod, which acts as a bridge cable, etc. POSCO also produced 140 million tons of other products which include slabs and blooms sold to other steel companies such as rolling mills.

l One Billion POSCO Went to…

POSCO Newsroom zoomed in on the demand industries to which POSCO steel was sold for the past ten years. With 340 million tons of steel sold across industries, the auto industry and construction sector (including machinery and pipes) took 83 million tons each. The shipping industry took another 29 million tons, whereas the electrical and electronics sectors took 22 millions. 120 million tons went on to be utilized for pressure vessels, re-rolling, surface treatment, distribution, etc. To grasp what this series of numbers in millions, let’s convert these sales volumes into one billion tons of crude steel production.

50% of one billion tons were used in the automotive and construction sectors, amongst which about 250 million tons were sold to the auto industry. Presuming a midsize car weighs one ton, this means POSCO steel produced 250 million cars.

What about the construction sector? 250 million tons can raise 4,910 Lotte World Towers.

The shipbuilding industry took another 10% — 86 million tons of steel which can build 2,392 VLCCs (Very Large Crude-Oil Carriers) each weighing over 300,000 tons. The electrical and electronics sector used 64 million tons of steel which can make 6.4 billion refrigerators for household use.

The above numbers mean much more than the sheer scale of POSCO’s steel production. What they show is the fact there had been sustainable demand for steel, and that the growth of Korea’s key industries coincided with the fate of POSCO.

As Korea’s industries became more sophisticated and advanced, so did the country’s economic power. As the above graph demonstrates, both the historical data of Korea’s GDP and POSCO’s steel production are heading towards the same direction.

In 1973, when POSCO first produced crude steel, Korea’s GDP stood at $13.9 billion. In 2018, at the cusp of the one-billion mark, Korea’s GDP shot through the sky with 1.6 trillion, 116 times that of 1973. With the development of Korea’s downstream industries, the country’s economy advanced — so did POSCO.

As POSCO runs towards the next billion, POSCO’s unwavering support for Korea’s key industries and the global community will continue.

Blast furnace produces molten iron, and it is indispensable to steelworks operation. With 110 meters in height, its scale is enormous.

All the steel products we see in our everyday lives are made from the molten iron. However, other than this simple fact, there really isn’t much we know about the blast furnace as what’s visible is its colossal steel exterior, not the inside.

What’s inside the blast furnace and how does it operate, with what technology? To help understand the details of blast operation, POSCO Newsroom presents ‘Blast Furnace Anatomy #1 – To the Heart of Steelworks Operation.’

l Earth, Fire, and the Wind: The Three Elements of Molten Iron

What gives birth to molten iron? It’s Earth, fire and the wind — these three elements come together in a blast furnace to create molten iron. How exactly? Let’s find out.

First, the iron ore, the raw materials for steel, comes from the Earth. Most iron ores — hematite, magnetite, limonite — contain an average of 60% of iron (Fe). Before the iron ores enter a blast furnace, it undergoes ‘sintering’ which turns the pristine iron ore into more compact and appropriate sizes.

The sintered iron ores become ‘sinter.’ The iron ores that come in just the perfect size right from the extraction are called ‘sized lump.’ The ores in microscopic scales are pelletized, which are called ‘pellets.’ Steelmaking utilizes all three materials as raw materials. Subsidiary raw materials like limestones are also used.

<Blast Furnace: Fuels & Raw Materials>

Now, the blast furnace will melt all the raw materials and extract only the iron (Fe), where coke and pulverized coal fuel the raw materials.

Coke is a grey, hard, and porous fuel made by heating coal up to 1000℃. Inside the furnace, coke is the main heat source melting various materials. It also acts as a reducing agent deoxidizing iron ores. The pulverized coal is a lump of the coal smashed into small pieces — of 0.125mm in size or less. Of the two, pulverized coal makes for a more economical option.

The raw materials and fuels alone do not magically create molten iron, of course. They will need the hot air inside the blast furnace — the hot air about 1200 ℃ in temperature. Then, the fuels and raw materials layered inside the furnace literally fly up inside the furnace! To better grasp the process, let’s slice the blast furnace in half and look inside.

This is what a blast furnace looks like. What exactly happens inside the blast furnace?

Fuels and raw materials enter the furnace through the top opening. The rotating chute evenly distributes the materials, landing them precisely at the due location. Then, the fuels and raw material layer in rotation — a layer of fuel, a layer of raw material, etc. Together, they create more than 40 layers of fuels and raw materials.

At the bottom of the blast furnace, the hot air of 1200℃ heats the materials and fuels. The hot air with a force of 4.0bar triggers such a force that the materials fly up in the air. Because of the heat, coke chemically dissolves the raw materials.

These processes produce molten iron, slag, and by-product gas at which stage, they are still mixed. Then, the by-product gas rises to the top while the molten iron and slag drop to the bottom. Once filtered through dust collectors, the gas transforms as a power source for steelworks. As for slag and molten iron, they are each separated for slag granulation and steelmaking. From the moment the raw materials enter the furnace, it takes about six and a half hours for the materials to transform into molten iron.

l And By-products? Recycle, Recycle, and Recycle

The by-product gases produced inside the blast furnace are released through the top pipe, mostly carbon monoxide, carbon dioxide, and nitrogen. For every ton of molten iron produced, the furnace emits about 1,600 cubic meters of gas. The gases go through primary and secondary dust collectors for purification. The purified gases are utilized to power different facilities at steelworks. This is how POSCO self-produces 74% of the electricity for its steelworks operation.

<Blast Furnace: The Journey of By-product Gases>

Other by-products from inside the furnace also include ingredients like silica (silicon dioxide) — not part of necessary ingredients to produce molten iron. To separate silica from iron ore, the subsidiary material limestone is added during sintering. Once inside the furnace, limestone combines with the silica and drops to the floor. The mixture is lighter than molten iron, so it layers above the molten iron. This mixture is another steelmaking by-product, slag.

Where does the slag end up? POSCO slag is recycled 100% as fertilizer and cement. Blast-furnace slag is rich in silicic acid, an excellent fertilizer for rice farming. Altogether 390,000 tons of POSCO slag was used for agricultural farming in 2018.

POSCO also developed POSMENT, an eco-friendly cement with a higher portion of slag which reduces CO2 emission up to 60%. Altogether 10.69 million tons of POSCO slag contributed to reducing 8.39 million tons of net greenhouse gas emissions.

l Is Blast Furnace Outdated?

Because blast furnaces have been around for so long, it could feel outdated. However, the furnace is full of sophisticated technology.

The sophistication starts from the very moment when the raw materials drop into the blast furnace. Landing them at the precise locations requires advanced technology. Precise calculation is crucial in all procedures — the order of insertion, in what sizes, how much, where, and at what timing. Based on these calculations, the rotation angle of the chute is adjusted, so that the raw materials and fuels distribute evenly inside the furnace.

Another part of the furnace technology involves the insertion of hot air into the furnace through over 40 holes. The timing must be steady. To boost productivity, pure oxygen is sometimes added to the hot air. There is also a facility that produces the hot air, which is called a hot stove. What powers the hot stove is the by-product gas produced in the blast furnace — recycled 100%. Such sustainable technology is at the core of POSCO’s competitiveness.

With the mixtures of solids, liquids, and gases creating many chemical reactions, it can be difficult to predict exactly what’s happening inside the furnace. With the 46 years experience of operating blast furnaces, POSCO has a reliable system to predict the condition of furnaces, however. At POSCO, the condition of blast furnaces can be monitored through live-data such as the temperature of the furnace, pressure, and the status of molten iron-making. Since the blast furnace operation is 24/7 nonstop, maintaining a stable condition has a critical bearing on the safe and economical operations of steelworks.

l Blast Furnace Shapes Korea’s Modern History

It’s no wonder the Pohang No.1 Blast Furnace was cited as Korea’s economic national treasure — for the immense contribution it sparked for Korea’s overall economic growth.

During the 1960s, when the whole country was still reeling from the wounds of the war, POSCO’s blast furnace provided an opportunity not only to lift the country off abject poverty but to continue — to hope.

Even at this moment, the Pohang No.1 Blast Furnace is making molten iron just the same — like the time when the golden molten iron poured out of the tap of the Pohang No. 1 blast furnace for the first time. The initial sentiment of the time might have faded, but the blast operation continues.

SteelChallenge takes place over two rounds – the Regional and then, the World Championship. To compete in the World Championship, contestants must first pass the regional round that takes place in four regions: North & South America; Europe, CIS, Middle East & Africa; Asia & Oceania, excluding China; and China.

The Regional Championship takes place online. Participants can access the competition from the steelUniversity website and have 24 hours to record at least three successful runs of the basic oxygen steelmaking and secondary steelmaking simulations.

On November last year, Yong-Tae Kim of POSCO advanced to the final World Championship as the regional winner of Asia. In the World Championship in Madrid, he competed with four other regional winners for two hours, finally taking home the winning trophy. How did Kim prepare for the competition and what was his key to success in steelChallenge? Find out at POSCO Newsroom.

 l “Precision, Precision, and Precision.”

Q: What is steelChallenge World Championship, and how did you get to participate?
A: SteelChallenge is every steel engineer’s dream stage. Even though the competition is individual-based, I personally felt it would mean more to me if I participated with the company affiliation. I wanted to let the whole world know how proud I am to be part of the company.

Q: How did you prepare for the steelChallenge World Championship?
A: Ever since joining POSCO in 2010, I tried to learn as much as possible from the previous participants who also work in my department. Quite a few POSCO employees had already experienced the competition which was helpful. I also tried horning my skills by participating in steelUniversity Korea challenge – in fact, I became the winner in 2010, the year when I joined POSCO. Since then, I was busy focusing on the work at POSCO so I held off participating in the World Championship. Nevertheless, I was still rooting for my colleagues who challenged themselves for the competition. I always studied with them and prepared for the competition thinking I would participate one day.

Q: What was the mission challenge for the steelChallenge-13 World Championship, and how did you come up with the solution?
A: This year, the task was to produce a specific engineering steel grade at the lowest cost using steelUniversity’s Basic Oxygen Steelmaking and Secondary Steelmaking simulators. This meant we had to build billets into which ferroalloy is inserted. As a cost-cutting measure, I maximized the use of low-cost ferroalloy and focused on reducing intermediary costs. I analyzed the stats of every simulation to come up with an accurate forecast model.

Q: What was your top priority going into the competition?
A: Precision, precision, and precision. I believed the key to winning the challenge was a meticulous calculation. Through the forecasting model and multiple simulations, I worked on perfecting the model. In the actual competition, I simply crunched in the data required for the challenge question, coming up with the best numbers in the end.

 l Racing towards the Top – in Ten Minutes

Q: Can you tell us about the other contestants? What were they like?
A: The other contestants came from Brazil, Netherland, and China – our academic background ranged from computer science, mechanical engineering, to industrial engineering, and some even participated with steelChallenge team uniform. Their energy and vibes were all very infectious and inspiring.

Q: During the competition, what did actually go on? Any anecdotes to share about the result, or speculations about possible winners?
A: For the past two years, China’s HBIS Group took the World Championship, so the expectation was in the air that this result will reciprocate. For the World Championship final challenge, the contestants had two hours to finish their assignment. Right until the 15-minute cutoff time, all contestants’ records were shared. As soon as the clock started, I became number one in 10 minutes’ time – other contestants caught up after about 30 minutes into the competition. After the challenge ended, I found out I won by a landslide – there was a significant gap between my record and that of the next runner-up. When asked about the secret to this success, I simply had to say, “doing one’s best,” – the rest was confidential (chuckles).

Q: Was there any fun story to share?
A: In the World Championship, everything is decided within a matter of two hours which is why I was so tensed up. Then, I had a brief encounter with our CEO Jeong-Woo Choi. He was attending the general assembly for the worldsteel, and he said something that completely helped me decompress. It was actually a compliment – and something I’ve never heard elsewhere. (chuckle). He really helped me unwind, and I was able to compete in the best mindset.

Q: What about your work at POSCO? Is there any connection between your work and the techniques involved in the competition?
A: In the steelmaking department where I work, we’re currently developing a temperature forecast model. Managing temperature is so important for quality steel, so my work was definitely helpful for the competition.

l Teamwork: The Secret Sauce Behind POSCO’s Winning Streaks

Q: So some of your colleagues are also past winners of the steelChallenge?
A: Yes. At Pohang’s steelmaking department, there are altogether two world champions and three regional champions. Jin-Hong Park and Sung-Jin Kim started all this back in 2006. At that time, the competition was team-based – from 2014, the steelChallenge became an individual competition, and this is the first victory since then. Because of the work of my predecessors, we were able to take home the victory.

▲ Past winners of the steelChallenge from POSCO including 2006 World Champions Sung-Jin Kim (second from the right) and Jin-Hong Park (far right)

Q: Any words of advice from the previous winners?
A: Yes. it was, in fact, Sung-Jin Park who first introduced me to the steelChallenge. For the past few years, I have been studying for the competition with my colleagues. Until I learned about the competition eligibility, I went through actual simulations with my colleagues who participated in the challenge. Preparing for steelChallenge takes years – for the World Championship especially, the years of working experience at POSCO helped get my foot in the door.

Q: Multiple winners in just one department? How?
A: I have to attribute the credits to the senior leadership in our department. They helped us organize the team to prepare for the competition – also coaching our studies. They provided the best environment for us to prepare. The steelChallenge itself is one of the hottest events for the whole department, so it was especially motivating.

Q: Do you have any words of advice for the next contestants?
A: Before the competition begins, prospective participants are given two months to study a simulation program. It is critical for them to understand the simulation program fully in order to come up with calculations on various problems – after of which, through countless practice, you horn and perfect your skills finding anything that is overlooked and minimizing errors.

Q: Now that you are the final winner, any plans for the future?
A: The actual steelmaking process involved in the field has more variations than in the competition, making precise prediction quite challenging. However, through persistent analysis of the field operation, I will support improving and automating the steelmaking process. Through the automation process, we will minimize the variants, boost quality and reduce costs, helping the company move forward.

What’s ahead for the steelChallenge 2019? Will Yong-Tae Kim’s infectious energy help bring home the victory yet again? The clock is ticking for the next steelChallenge Regional Championship – which is set to take place this coming November.

Smart factories are bringing AI, IoT and Big Data to the manufacturing industry.

#1 How Smart Factories are Changing the Manufacturing Industry

The Fourth Industrial Revolution is bringing AI, IoT and other automated technologies into people’s lives and changing the way they live and interact with one another. It is also bringing about change in the manufacturing industry as more companies embrace smart factories to further enhance efficiency, performance and safety. Take a deeper look at how smart factories are reinventing the manufacturing industry.

SEE ALSO: How Factories Produce Steel- the Smart Way

POSCO GIGA STEEL also offers electric vehicle manufacturers a lightweight material solution.

#2 POSCO GIGA STEEL Increases Strength, Improves Safety in Autos

This year, POSCO GIGA STEEL set a new, industry standard for strength and formability for auto steel. The advanced high-strength steel (AHSS) is an automaker’s dream come true as it falls into the strongest category of steel commercially available today. Plus, its lightweight property makes it the perfect solution for manufacturers trying to design safe, high-performing and sustainable vehicles.

SEE ALSO: Ask an Expert: Has Steel Achieved Its Peak in Lightweighting?

Lithium-ion batteries are found in some of the most popular devices available today. (Source: BGR)

#3 POSCO’s Innovation Shapes the Ever-Growing Lithium Market

POSCO is the world’s 5th largest steel producer, but it’s got more up its sleeves than just steel. This year, POSCO developed game-changing technology that extracts lithium from water in just 8 hours to one month. Traditionally the task takes anywhere from 12 to 18 months. To add, the new technology can achieve a purity rate of 99.9 percent and increases the lithium recovery rate to over 80 percent.

Lithium is a central component in rechargeable batteries for electronics such as smartphones, laptops and most importantly, electric vehicles (EVs). Heading into 2018, POSCO is well-positioned to be an industry leader in a rapidly-growing market for EV batteries.

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

POSCO CEO Kwon Ohjoon fires up Pohang Blast Furnace No.3

#4 POSCO Gets “Smart” with Pohang Blast Furnace No.3

In June, one of POSCO’s oldest and the world’s 5th largest blast furnace got a makeover with some added AI. After undergoing 102 days of repairs, Pohang Blast Furnace No.3 came back much bigger with an expanded furnace volume of 5600㎥, compared to its original volume of 3795㎥ from its beginnings in 1978. Plus, Pohang Blast Furnace No.3 now has smart sensors to monitor operations and detect malfunctions or accidents before they happen.

SEE ALSO: How to Make Steel with an Old(ie but Goodie) Blast Furnace

Ajay Telrandhe in Quality Assurance and Manish Kochar & Chetan Waghchoure in Sales talk to the Steel Wire.

#5 Ask an Expert: POSCO Leads India’s Growing Automotive Steel Market

POSCO Maharashtra is POSCO’s leading subsidiary. Three of their employees gave the Steel Wire an insider’s look into the company’s success, despite a challenging market environment and government restrictions. The team in India implemented positive changes in the company’s steel quality, production processes and customer service to become a leading solution-provider for their automotive partners.

SEE ALSO: Revving Up for Growth: India’s Automotive Market is In Full Gear

EVs, autonomous vehicles and shared mobility will drastically change the auto industry. (Source: Electrek)

#6 Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University, was the first speaker at POSCO’s 2017 Global EV Materials Forum. Zoepf shared his vision of what the future automotive market will look like and its implications for car manufacturers, suppliers and drivers. According to research, 60 percent of the cars in the U.S. will be running on electric batteries by 2030, and those cars will mostly be part of a shared mobility service. Traditional ways of car production, distribution and consumption will undergo massive change and companies will have to find ways to stay competitive in the new market dynamics.

SEE ALSO: The Forgotten Fleet: Looking Back on Early Electric Vehicles for a Better Future

Steel dresses from Naim Josefi’s 2017 F/W GANGS collection. (Source: Naim Josefi)

#7 Ask an Expert: Fashion Forward with Steel

Fashion designer Naim Josefi opened new possibilities for steel application with his 2017 F/W GANGS collection which included dresses made of elaborate steel sequins and laser-printed jeans. He is also known for his 3D-printed high heels that provide the perfect fit. The artist has a passion for fusing technology into his work and finding more sustainable ways to create beautiful clothes and says he will continue to use steel as a high-tech, fashion material.

Heading into a new year in 2018, the Steel Wire promises to be the best source of steel industry news and continue to provide exclusive, insightful and interesting stories.

On December 7, employees celebrated reaching 20 million tons and took a commemorative photo.

FINEX is an innovative, paradigm-shifting technology where molten iron is produced directly in a blast furnace. The process eliminates preliminary processing and uses cheaper powder-type iron ore and bituminous coal as raw materials. Subsequently, investment and production costs can be reduced by 85 percent compared to those of general blast furnaces of the same size. In addition, the technology reduces SOx and NOx emissions by 40 and 15 percent respectively, and fine dust particles can be reduced by 34 percent compared to general blast furnaces.

The beginnings of the technology date back to the 1990s when the Korean government chose POSCO’s smelting reduction steelmaking for a national project and contributed KRW 22.2 billion for research and development.

As a result, POSCO started operating the FINEX 2 plant with an annual production capacity of 1.5 million tons in 2007, and the FINEX 3 plant with an annual production capacity of 2 million tons in 2014, which now produces 10,000 tons of molten iron every day. Surprisingly, the Korean steel industry, which was heavily reliant on foreign technologies in 1968, now leads the world’s steel industry in terms of technology.

However, the path to success was filled with challenges.

In 1998, objections were raised against additional investment for the FINEX technology because there were no clear, tangible results even after KRW 60 billion was invested. Even so, POSCO management made a decision to construct a demo-plant with an additional investment of KRW 100 billion for technology development in order to secure long-term competitiveness rather than seeking immediate profit.   

In addition, POSCO convinced steelmaker Voestalpine, who was in possession of the world’s leading technology for molten iron production, to participate in the project as a partner. POSCO was able to do this by offering to cover the full cost of dispatched researchers and engineers should the technology become successful.

In 2003, there was a slight setback when the newly-opened core FINEX processing facility failed to operate successfully. However, after dozens of tests with 80 in-house professionals over 3 months, the facility was up and running.

Molten iron is produced directly in a furnace in the FINEX plant.

Sang-ho Lee, Director in Charge of Commercialization at POIST, said, “With less than 50 years of steelmaking experience, POSCO has managed to achieve a next-generation, innovative steel-producing technology. It feels great because even though POSCO started as a fast follower of foreign technologies, we are now a leading company in the world’s steel industry with our FINEX technology.”

POSCO currently has over 200 patents for its FINEX technology and HCI technology in Korea and 50 patents in more than 20 countries worldwide. Many overseas companies have expressed an interest in FINEX, and POSCO is in talks with world-renowned steelmakers in China to export its FINEX technology.

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Here’s a look at how steel is produced in a steel mill or factory, and what the “smartization” of steel factories will look like.

So, how is steel made?

Iron Making

To make steel, manufacturers first need molten iron. Molten iron comes from two raw materials; iron ore and coal. Iron ore is converted into sinter ore in a sintering plant and coal is converted into raw coke using a coke oven. The processed materials are poured into a blast furnace where hot air reaching 1200℃ is blown in from the bottom through tuyeres, causing a chemical reaction. This process oxidizes the coke and reduces the sintered ore, creating molten iron.   

Steelmaking

In the steelmaking stage, the molten iron is transported to the steel making plant via a torpedo car, where the liquid is poured into a converter. Then, oxygen is blown into the converter to burn off all the impurities. All that is left is pure molten steel.

Continuous Casting

This is where steel finally becomes solidified into different shapes such as slab, bloom and billet. Liquid steel is poured into molds and cooled as it passes through a continuous casting machine until it solidifies into the desired shape.

Hot steel passes through rolling machines to be rolled into specific sizes and thicknesses. (Source: Global Sourcing Blog)

Rolling Process

During the rolling process, steel is heated once more to achieve various sizes and thicknesses. Steel slabs are heated to over 1100℃, then pass through rolling machines. This results in hot-rolled coils that can be shaped for different uses such as thick plates. They can also be processed into long, wire-shaped rods for billets. Often, the hot-rolled coils are rolled at room temperature for cold-rolled coils. Cold-rolled coils can be fabricated to produce galvanized and electrical steel products.

“Smartizating” these processes will involve converging IoT, Big Data, and AI to connect the different facilities, IT systems and workers in order to collect and analyze data for optimization.

POSCO is “smartizing” the steel-production process

POSCO is a steel company looking to lead the industry in adopting smart factories. CEO Kwon Ohjoon made “smartization” one of the 4 key priorities for POSCO starting back in 2014, and Kwon will continue to increase those investments.

POSCO smart factory incorporates artificial intelligence to enhance safety and efficiency.

SEE ALSO: How Smart Factories are Changing the Manufacturing Industry

In 2016, POSCO established its Smart Solution Council in order to research AI, big data and IoT applications. In the same year, POSCO ICT’s smart factory platform, PosFrame, was completed and installed in POSCO’s Gwangyang Steel Mill. PosFrame allows engineers to collect and monitor big data. So far, the company has saved over USD 14 million by incorporating the new technology in its production practices.

Here are some other features of POSCO’s Smart Factory.

POSCO’s Smart Blast Furnace

The Pohang Blast Furnace No.3 became a smart furnace in 2017, following a 102-day repair period. The furnace is now equipped with automated sensors that monitor and control its internal conditions using AI technology. Smart sensors monitor the blast furnace for factors like raw material quality and ventilator status, preventing breakdowns and ensuring a much longer lifecycle.

SEE ALSO: Will Artificial Intelligence Lead to Breakthroughs in the Steel Industry?

Worker Safety

Smart sensors can be used for more than just process monitoring. The company is working toward a full implementation of smart sensors for safety purposes, using IoT to create a better working environment.

Steel manufacturing involves high temperatures and high pressure levels, which is dangerous for workers who come in close contact with the equipment. With smart sensors monitoring all of the factory information, workers will instead be monitoring operation from a safe distance.

Workers in POSCO’s smart factory wear smart sensors for safety.

Wearable sensors, in conjunction with factory smart sensors, will be able to detect if and when workers are approaching potentially dangerous areas, and will alert them. These sensors will also detect and alert with regards to any impending accidents, or life-threatening situations like gas leaks, explosions, or fires.

Also, dust, sulfur, and nitrogen compounds will be removed via a high-plasma method, creating an eco-friendly steel plant and a healthier environment for workers.

POSCO will continue to add more smart features to its steel mills to increase efficiency, safety and sustainability. In efforts to learn and implement new technologies, POSCO CEO Kwon Ohjoon visited GE’s smart factories to learn about their technology earlier this year. POSCO also held the 2017 Smart POSCO Forum to share its insights with clients and affiliates, all as part of its expanding smartization efforts.

The fourth industrial revolution is heralded by big data, the internet of things, artificial intelligence, virtual reality and augmented reality, 3D printing and other technological innovations. It’s happening at rapid speed. The steel industry needs to keep up and take advantage of all that this revolution has to offer.

However, the industrial revolution did not happen overnight, and advancements in human development traces back to the Iron Age.  

The Iron Age and How it Impacted Civilization

After the Bronze Age was the Iron Age. People started using iron and steel for tools. This was a huge shift for the world, and helped improve nearly all spheres of life from the spread of written language to more effective agricultural practices. Iron offered more choice. People could forge this material into whatever they needed for tools, weapons, or ornaments and decor.

Blacksmiths would have used tools like this during the Iron Age.

Tools and weapons created during this era often used steel, which was a vast improvement on the bronze items from the previous age. Items made from steel were just as light as bronze, but stronger, so users were able to get more out of each item they created. The strength of these tools made it possible for farmers to plant and harvest more land, faster. It enabled people to sell or trade for livelihood.

The Iron Age is a great example of how the right materials can make life better for everyone.

The New Structure of Steel

As the world moves through the fourth industrial revolution, it is evident the same thing is happening. Instead of improvements in specific materials and tools, however, technology is changing things.

The steel production process can be completed autonomously if the fourth industrial revolution continues the way it is going. This means that manufacturers will be able to have very detailed and thorough control over production, using smart technology that will factor in every element from the surrounding environment to minute details of the material itself. The steel production process will be able to use real-time data to optimize every facet of operations, saving money and time.

Robot arms with artificial intelligence take part in the steel production process. (Source: Telenor Connexion)

The steel value chain is affected by changes in the provision of after-sales service, owing to new technology. Manufacturers can use smart technology to track how users interact with their completed products and offer better customer service as a result.

Again, real-time information comes into play, allowing steel companies to see exactly how orders are being created, fulfilled and used, as it is happening. Customer needs are met with ease and speed, all tracked and analyzed digitally.

Competition in the steel industry will be affected by this revolution, too. Competitors can see how other companies are using big data and automation to save money and offer a better customer experience, and use those details to revolutionize their offerings. Online steel transaction platforms make this transparency even more accessible, for companies and clients alike.

Implications on the Steel Industry

To keep up with this revolution, and make the most of it, steel companies need to understand the implications on the industry and plan for the future. New technology is only going to become more widespread, more common, and more advanced. Companies need to be ready to react.

Integrating technology and smart software is the ideal way for steel companies, and the industry at large, to take advantage of this new revolution and use it to create better products and better customer relationships.

To get an idea of how to best integrate new tech into existing steel practices, POSCO’s smart steel factory is a prime example, currently being tested at the Gwangyang Steel Mill. POSCO’s smart factories will collect and analyze all of the microdata generated in the steel production process, to determine the cause of every event that impacts quality or production in general.

An image of how POSCO’s Smart Factory will be run.

From facilities to energy and environment, to safety and conditions, the smart factory will monitor everything. And it will respond accordingly to make the best quality steel possible.

Self-learning artificial intelligence ensures that the process of steelmaking is carefully controlled, with adjustments made in real-time to directly and positively impact the result. The smart factories will use technology to fill the gaps where human capabilities are simply no match for software.

The world has come a long way since the Iron Age and through the various industrial revolutions. In the current fourth industrial revolution, steel companies have to take advantage of new technology and innovations by figuring out ways to apply them to steelmaking processes. POSCO has made this a top priority as it continues to research, educate and implement smart technologies to its production processes and materials and will lead the way for steel companies to follow through the fourth industrial revolution.   

Cover photo courtesy of Manufacturing Global.

The Steelmaking Process

So, what does a blast furnace do in the steelmaking process? There are 4 main parts to the process of making steel, and in each process, the accompanying production equipment is as vital as the materials that make steel. Each batch of steel starts off with iron, molten iron to be exact, and the blast furnace is what transforms raw materials into molten iron.

Molten iron leaves through the bottom of a blast furnace

Molten iron comes from two raw materials; iron ore and coal. First, iron ore is converted into sinter ore in a sintering plant and coal is converted into raw coke using a coke oven. The processed materials are then poured into a blast furnace through the top opening. Hot air reaching 1200℃ is blown in from the bottom through tuyeres and chemically reacts with the materials as they fall to the bottom of the blast furnace. This process oxidizes the coke and reduces the sintered ore, creating molten iron. The molten iron is then further processed to make steel.

The Importance of the Blast Furnace

The Blast furnace is one of the oldest and most significant equipment in the steelmaking process. The average lifespan of a blast furnace is about 15 years before it needs to be replaced or refurbished.

The Pohang No.1 blast furnace

POSCO is a few months shy of its 50th anniversary, and the Pohang No.1 blast furnace has been in operation for 45 of those years. Interestingly, the blast furnace has never broken down or gone out of service. With an annual capacity of 1.3 million tons, it helped establish Korea as the top-5 steelmaker in the world and was even named Korea’s Economic National Treasure No.1.

A New Technology from an Old Furnace        

In the beginning of 2017, POSCO decided to shut down the Pohang No.1 blast furnace for good in response to the slowing steel market and put the national treasure in a museum instead. It seemed the oldest operating blast furnace in Korea would finally retire.

However, just before pulling the plug, engineers used the Pohang No.1 blast furnace in a pilot operation program using low-grade raw materials such as soft coke and low-cost iron ore to produce molten iron. To everyone’s astonishment, it succeeded, and with lower charter costs than the larger blast furnaces that have 3 times the production capacity.

As it turns out, because of its smaller size, the blast furnace can operate with low-grade raw materials such as soft coke and low-cost iron ore, and can flexibly adapt to fluctuations in operations. Employees further developed the technology and as a result, Pohang No.1 blast furnace recorded the lowest charter costs of all POSCO blast furnaces in April this year.

Thanks to the new-found technology, the legacy of the Pohang No.1 blast furnace will continue.

What’s the Secret to Longevity?

Usually, a blast furnace needs to be sprayed down every 6 months so that it does not get damaged from temperatures that can reach up to 2000℃. The bottom of the blast furnace is where the heat is concentrated, thus most susceptible to damage. Furthermore, fluctuations of the internal gas composition can lead to explosions. To solve this problem, POSCO’s technicians developed a technique to lower the coke to below the tuyere and repair the bottom of the blast furnace. This technology was applied to other furnaces and maintenance systems and is still in use today.

The Pohang No.1 blast furnace’s TFT during maintenance

To add, the Pohang No.1 blast furnace even has its own voluntary task force team (TFT) to care for and maintain the blast furnace called “Love for the blast furnace, love for POSCO.” The team of 15 not only makes sure the blast furnace is operating smoothly, they also continually research new technologies to prevent malfunctions and enhance the blast furnace.          

In a matter of months, the furnace went from almost becoming an artifact to a central part of POSCO’s competitiveness. This blast furnace’s long history in itself is impressive, but with its recent transformation, there is no telling what greater innovations and technology POSCO will achieve.

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Nam Tae-Gyu in his early days on site at a POSCO steel mill.

Nam’s Battle with the Sublance

Five years into his first job ever, Nam hit his first hurdle. The sublance used for detecting temperature and carbon levels of ingot iron in the converters kept breaking down. The brutal process for replacing the sublance probe took a physical toll on the workers and Nam remembers frequent nosebleeds and extreme fatigue vividly.

Nam explained, “Pure iron is converted into steel in a smelting process that requires 1700 °C of heat and oxygen incorporated into the ingot iron. When the process is 80 percent done, a sublance goes into the ingot iron inside the converter to take temperature and carbon measurements. Then, it sends the data to the operating room. With that data, the operator decides if the process should be continued or stopped. Afterwards, a sublance goes into the post-steelmaking converter again, measures the temperature and the amount of carbon, and then sends that data to the operator one last time. The data is used for the slab and bloom making processes as well. In a way, the sublance acts as an important key that decides the final quality of the steel. So if the sublance doesn’t work properly and sends the wrong data to the operator, there will be a tremendous loss.”

A sublance, which has to be inserted about 1 meter deep into the ingot iron, has a 2-meter probe with a sensor measuring the temperature and carbon and oxygen components. This disposable probe stays in the 1700 °C converter for 5 seconds and transmits the data to the monitor of the operating room through a cable inside the sublance pipe. The problem is that the travel distance of the sublance changes whenever a new probe is equipped. For that reason, facility managers must check the accurate position and adjust the length on every occasion. The sublance had to be adjusted at the top of a 7-story steel mill that is 20 meters higher than the top of the converter. To make it worse, technicians had to physically climb up and down dozens of times for 3 hours to alter the length manually if the lift didn’t work.

Liquid ingot iron in a steel mill during the smelting process

Nam’s First Masterpiece

Nam knew there had to be an easier way. After studying the sublance diagram and its instruction manual, he finally had an “aha moment.” He installed a digital location detector in an encoder form that could receive data to determine the travel distance of the sublance from a cambox instead of a touchbar that bred most of the errors in the previous system.

This allowed digital information on the travel distance of the sublance to be sent directly to the operator who in turn could locate the probe accordingly. This alone reduced errors in the data for every probe change. Furthermore, Nam even installed a detection system to eliminate all errors of the previous touch bar.

In the end, the improved sublance allowed 2 people to finish in 10 minutes what 3 people had to work on for 3 hours previously. The measurement success rate increased from 87 to 95 percent and lead to cost reductions and a shorter operation time overall for the smelting process.

Another Hurdle, Another Masterpiece

In 1997, Nam met his second and biggest challenge of his time at POSCO. A converter tilting device that could tilt and rotate a 1300-ton converter broke down. No one expected this machine to malfunction, as it was made with certified parts with advanced technology brought in from Japan. The Japanese supervisors kept the device’s technology a secret for copyright reasons, so the Korean technicians didn’t know the inner workings of the machine.

The complex device was composed of four motors, reducers, inverters and other parts. In order to run the motors, they had to use a magnetic contactor and high-voltage circuit breaker, both imported from Japan and extremely expensive since they had a short lifespan.

“One time, a large amount of electric current spilled on the converter tilting device. A severe arc was generated and melted the magnetic contactor, causing equipment failure and a KRW 200 million loss. I tried to replace the contactor with a domestic model to improve it, but in the process, the electric current flowed to the field motor, and the electric arc leaned causing molten steel to leak. We had to stop all operations for 14 hours and ended up with 15 tons of leaked steel.” Nam recalls.

A converter holding molten steel being tilted

It was a dark moment for Nam and POSCO, but it only prompted him to work harder towards a solution. After much research, trials and failures, he developed a vacuum magnetic contactor made of domestic parts and applied a vacuum breaker to the tilting device, thus localizing the core parts of the converter tilting device. Also with the new technology, temperatures could be monitored at the bend, cable crossing point and cable access point for a real-time monitoring system for accident prevention. Nam not only raised POSCO’s production quality to global standards, he helped reduce quality deviation and eliminate waste.

Working Philosophy/ Results

Looking over his achievements at POSCO, it is easy to see why Nam was named a 2017 POSCO Master. In the past 40 years, he accomplished 15 patents, 32 outstanding proposals, 1830 general proposals and 156 knowledge records. Nam received the highest award of job competence, the Steel Mill Proposal King award, this year’s Person of Pocheon award, Korea’s Quality Manager award and was named a POSCO Master in 2014.

Nam Tae-Gyu walks through the fire prevention system at POSCO’s Steel Mill 1 with executives and employees.

Nam’s working philosophy is simple. Achieving the best results in steelmaking and maintenance requires hard work and passion, much like how a good harvest requires the sweat and blood of the farmer. With this in mind, Nam’s curiosity is unending as he continues to look for improvements and leave behind a legacy of hard work and dedication.

The FINEX® Process

The FINEX® Process was jointly developed by POSCO in Korea and Primetals Technologies in Austria. FINEX® (along with COREX® – another smelting process developed by Primetals) is the only commercial proven alternative steelmaking process to the blast furnace (BF) route.

FINEX® is based on the direct use of iron ore fines and non-coking coal while eliminating the coke-making and sintering processes, which are most critical to the conventional blast furnace process. Combining these two decisive advantages leads to lower production costs and the reduction of environmental emissions in comparison with the conventional blast furnace route.

The FINEX® Process combines cooking plant, sinter plant, and blast furnace into a single iron making unit.

Advantages of the FINEX® Process

There are several key advantages to and differences in using the FINEX Process:

• Non-coking coal can be used directly as a reducing agent and energy source
• 100% fine ore can be directly charged to the process; no sintering or pelletising is required
• Pure oxygen can be used instead of nitrogen-rich hot blast

In addition, the FINEX® Process offers several key advantages over alternative BF methods.

• Economic benefits – low investment and operational costs due to the elimination of coking and sinter plants
• Ecological benefits – lowest process-related emission rates
• Product quality – hot metal quality suitable for ecological steel applications
• CO2 mitigation potential – pure oxygen is used
• Resource preserving – directly uses a wide range of iron ores and non-coking coals
• Beneficial by-products – generation of highly valuable export gas for various purposes (electric power generation, DRI production, or natural gas substitution)
• The FINEX® Process combines coking plant, sinter plant and blast furnace into a single iron making unit.

Creating The FINEX® Process

Starting in December 1992, POSCO and Primetals Technologies signed a cooperation agreement for the joint development of the FINEX® Process. Following initial laboratory, bench scale and pilot plant tests, the FINEX® F-0.6M Demonstration Plant, with a nominal capacity of 2,000 tons per day, was built in Pohang, Korea, and started up in May 2003. On the basis of successful results and optimization of equipment and process parameters over the past few years, POSCO developed their own independently designed program in February 2017. Designed to carry out overseas FINEX projects without relying on Primetals Technologies or other external resources, the program can be used to calculate core equipment specifications and raw material conditions. In particular, the development of the FINEX Process Design Program, one of the subprograms, has made it possible for the “heat & mass balance” to be automatically calculated when raw & fuel material conditions change.

[clickToTweet tweet=”The FINEX® Process is a cost-effective, more eco-friendly, and efficient way to make steel. ” quote=”The FINEX® Process is a cost-effective, more eco-friendly, and efficient way to make steel. ” theme=”style6″]

Efficiencies of the FINEX® Process

The FINEX® smelting reduction process is one of the most exciting iron making technologies on the market. It is distinguished by the production of high-quality liquid hot metal, on the basis of directly charged iron ore fines, and coal as the reductant and energy source. A key feature of the FINEX® Process is that iron production is carried out in two separate process steps. In a series of fluidized-bed reactors, the fine iron ore is reduced to direct reduced iron, compacted (HCI), and then transported to a melter-gasifier. Coal and coal briquettes charged to the melter-gasifier are gasified, providing the necessary energy for melting in addition to the reduction gas.

The FINEX® Process is Environmentally Friendly

The FINEX® Process and the blast furnace route are coal-based processes reducing iron ore to iron, which is subsequently melted into hot metal. In both processes, the same product is generated out of almost the same raw material. A question that arises – and not only from an economic point of view – is “how do these production routes deal with unwanted impurities?”

A certain amount of environmentally harmful substances is inevitable based on the raw material mix. Hence, the objective of a sustainable steelmaking process is to discharge these substances in an environmentally compatible condition or destroy them during the process itself. Since the FINEX® Process captures most of the pollutants in an inert state in the slag, and the released hydrocarbons are destroyed in the dome of the melter gasifier, no additional investment or operational costs are incurred for a complex gas or disproportional waste water conditioning plant.

Comparing the traditional blast furnace with the FINEX Process shows the improvements that POSCO was able to achieve to be more
environmentally friendly.

Future-Proof Emissions Figures

To bring blast furnaces in line with current and expected environmental standards, plants require significant investment. This can already be seen in the case of blast furnace dust emissions that are efficient, but costly filter systems must be installed in the sinter and coking plant. The FINEX® Process values are already far better than expected future standards. Moreover, the full development potential of the FINEX® Process has not yet been realized with respect to a further reduction of emissions.

Moving Forward with Greater Potential

Because the FINEX® Process is still being optimized, additional economic and technological benefits are anticipated. Major developments are continuously being carried out to increase efficiency. The latest achievements include breakthroughs in the field of heat recovery, dry dedusting, and outstanding performance improvements. Based on the well-proven plant concept, new process features, the highly competitive production costs, and environmental features, Primetals Technologies and POSCO are confident that the FINEX® Process will account for an increasing share of future investments in iron making facilities.

*Cover image courtesy of the World Steel Association

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