Special Steels India Business Unit 1. Gerdau Group 2. Special - - PowerPoint PPT Presentation

Special Steels

India Business Unit

• 1. Gerdau Group
• 2. Special Steels Business Unit
• 3. India Business Unit

Global Presence

• 111 years in business
• Production facilities in 14 countries
• 60 steel mills
• Near 46,000 employees
• Crude steel capacity of 25.3 million tons
• Ranked 10th in the world by 2010 steel output
• 2nd largest long steel producer in the world and

the 1st in the Americas

Gerdau Profile

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Company’s Philosophy

Vision

To be a GLOBAL ORGANIZATION and a BENCHMARK in any business we conduct

Mission

To CREATE VALUE for our customers, shareholders, employees, and communities by

• perating as a SUSTAINABLE steel business

Be the CUSTOMERS choice SAFETY above all Respected, engaged and fulfilled EMPLOYEES Pursuing EXCELLENCE with SIMPLICITY Focus on RESULTS INTEGRITY with all stakeholders Economic, social and environmental SUSTAINIBILITY

Values

110 Years in Business

1900 40’s 50’s 60’s 70’s 80’s 90’s 2000

Expansion in Brazil Expansion Abroad

1901:

1St operation:

(nail factory) 1948:

1St mill acquisition

(Riograndense)

Expansion of Riograndense

(construction of 2nd steel mill)

Market Share Increase

• Diversification / downstream
• Own distribution network
• Acquisition of one mill

(Pernambuco)

Acquisition of one mill (Paraná) Construction of a new mill

(Rio de Janeiro)

1St mill acquisition abroad

(Uruguay)

1St mill Acquisition in North America

(Canada)

Acquisition of 3 mills

(Rio de Janeiro, Minas Gerais and Bahia)

Construction of 2 new mills

(Paraná and Ceará)

Acquisition of Piratini

(Specialty steel)

Second mill in Minas Gerais Entering in Açominas Mills acquisitions

(Chile, Canada, Argentina and USA)

Acquisitions in USA

(Chaparral, MacSteel)

Entering in Europe and Asia

(Spain and India)

Expansion in Latin America Construction

• f a steel mill

(São Paulo)

Acquisition in USA

(TAMCO)

16.3 16.5 16.7 16.8 17.9 19.9 20.5 22.0 23.8 24.0 29.8 29.9 30.0 31.9 33.4 37.7 39.1 43.3 44.4 97.2

2011 Top Steel Producers

Source: World Steel Association www.worldsteel.org

Million metric tons crude steel production

• ArcelorMittal
• Heibei Group
• Baosteel Group
• POSCO
• Wuhan
• Nippon Steel
• Shagang Group
• Shougang Group
• JFE
• Ansteel Group
• Shangdong Group
• Tata Steel
• United States Steel
• Gerdau
• Nucor
• ThyssenKrupp
• Evraz
• Maanshan
• Benxi
• Hyundai

1º 2º 3º 4º 5º 6º 7º 8º 9º 10º 11º 12º 13º 14º 15º 16º 17º 18º 19º 20º

2010 2005 2000 2011

• ArcelorMittal

1º

• Gerdau

2º

• Evraz

3º

• Tata Steel

4º

• Nippon Steel

5º

• JFE

7º

• Nucor

8º

• Riva

9º

• Celsa Group

10º

• Industrial Union of Dombass

6º

47.3 19.5 14.7 10.7 10.5 10.1 9.5 8.9 8.6 8.2 Source: Steel on the Net www.steelonthenet.com

2010 Top Long Steel Producer’s Capacities

Million metric tons long steel capacity 8.6 8.8 8.9 9.4 10 10.8 11.1 18.7 22.6 51.2

Products and End Users

• Billets, blooms & slabs
• Merchant bars
• SBQ
• Wire-rod
• Rebars
• Fabricated steel
• Heavy structural shapes
• Nails
• Wires

Products End Users

• Housing
• Infrastructure
• Agricultural sector
• Automotive industry
• Oil and gas sector
• Shipbuilding
• Wind power generation
• Mining
• Other industrial sectors

1st Quarter 2012 2011 2010 2009 2008 Net Revenues (US$ million) 4,972 20,233 18,798 13,408 22,618 Net Income (US$ million) 215 1,199 1,471 577 2,832 Total assets (US$ million) 26,826 28,499 25,683 25,605 33,914 Total shipments (thousand tonnes) 4,725 19,164 17,363 13,987 19,118 Total Output (thousand tonnes) 4,940 19,623 17,852 13,509 19,599 EBITDA (US$ million) 545 2,658 3,114 1,999 5,488 EBITDA Margin (%) 11% 13% 17% 14% 24% Gross Margin (%) 12% 14% 18% 17% 26%

Key Financial Figures

Investment Plan (2011 – 15)

USD 6.05 billion in five years

• Heavy plate rolling mill at Ouro Branco unit
• Structural beam rolling mill expansion at Ouro Branco unit
• Commercialization of iron ore resources
• Wire rod and rebar rolling mills in Santa Cruz unit

Investment Installed capacity Goal USD 57 million 700 thousand tons in 2011 Expansion of mining capacity to 7 million tons Self sufficiency for 100% of Ouro Branco unit iron ore needs USD 1.0 billion 1 million tons by the end of 2012 grow in oil and gas, shipbuilding and construction sectors Investment Future capacity Annual Production Goal Investment Installed capacity Goal USD 1.5 billion Additional 600 thousand tons in 2013 Participate in demand due to FIFA World Cup and Rio Olympics

Board of Directors Board of Directors

Corporate Governance

Business Units General Assembly Functional Processes Gerdau Executive Committee (GEC)

Board of Directors

• Dr. Jorge Gerdau

Johannpeter Germano H. Gerdau Johannpeter Klaus Gerdau Johannpeter Frederico C. Gerdau Johannpeter Expedito Luz

General Secretary:

Affonso Celso Pastore André Pinheiro de Lara Resende Oscar de Paula Bernardes Neto Cláudio Gerdau Johannpeter André Gerdau Johannpeter

President Vice-Presidents

Counselors

Alfredo Huallem

Board of Directors Gerdau Executive Committee (GEC)

Corporate Governance

Business Units General Assembly Functional Processes

Gerdau Executive Committee (GEC)

CLÁUDIO Gerdau Johannpeter Osvaldo Burgos SCHIRMER Manoel VITOR de Mendonça Filho ANDRÉ Gerdau Johannpeter EXPEDITO Luz

CFO COO Executive VP CEO Executive VP

Ricardo Giuzeppe MASCHERONI

Executive VP

FRANCISCO Deppermann Fortes

Executive VP

Gerdau Executive Committee (GEC) Board of Directors Business Units

Corporate Governance

General Assembly Functional Processes

Wire rod Wires Merchant Bars

Business Operations GERDAU

Brazil Long and Flat Steel North America Special Steels Latin America North

Billets, blooms & slabs Heavy Structural Shapes Rebars Fabricated Steel Nails Rolling Mill Rolls Forged and Cast Parts

Long Steel

34% 6% 34% 20%

SBQ - Bar SBQ - Wire rod

% of 2011 net sales

Latin America South

6%

Hot Rolled Coils Hot Rolled Heavy Plates

• 1. Gerdau Group
• 2. Special Steels Business Unit
• 3. India Business Unit

Brazil Long and Flat Steel

Organizational Chart

• Mr. Mark Marcucci

Special Steels and India VP

• Mr. Luis Colembergue

Operations

USA

• Mr. Jack Finlayson

Spain

• Mr. Jose Jainaga

Brazil

• Mr. Joaquim Bauer

GERDAU

Latin America South North America

Special Steels

Latin America North

Long Steel

34% 6% 6% 20% % of 2011 net sales

India

• Mr. Arvind Mathur

34%

USA Brazil Spain India China

Locations

12 steel mills + 1 under construction 11 downstream units 10 representative offices

• 12 steel mills in 3 countries + 1 joint venture steel

mill under construction in India

• Ranked 2nd in 2008 SBQ global sales
• Largest supplier of SBQ to the automotive

industry in the world

• Installed capacity over 3.7 million metric tons of

crude steel

• Near 8,100 employees

Special Steels Profile

102 126 149 139 120 172 168 211 264 260 273 309 379 388 374 754 3,214 1,870 2,796 2967

Control of Aços Villares Entry in Europe

Entry in India

20+ Years of Special Steel Expertise

Expansion in Brazil Expansion Abroad

Piratini mill acquisition Kalyani Gerdau Steel

• Ltd. Established

(JV Kalyani Group)

Acquisition of Sidenor Acquisition of Aços Villares Monroe Melt Shop Improvements Construction

• f a new rolling mill in

Pindamonhangaba

1990 2006 2008 2000 1990 2006 2008 2000 2010 2012 2010 2012

Acquisition of MacSteel

US$ 1.5 billion in 2011 - 13

Entry in North America Installation of new rolling mill at Piratini Improvements in the continuous caster at Pirantini Installation of downstream facilities at Piratini Mordernization of melt shop at Piratini Increase in production capacity of melt shop at Piratini Increase in rolling mill L1 capacity at Piratini

Investment Plan (2012 – 14)

USD 67 million Additional capacity of 200,000 tons by end of 2013 USD 322 million Additional capacity of 400,000 tons by 2014 Competitive special steel solutions to a fast recovering industry USD 205 million 500,000 tons by the end of 2012 Accompany growth of the automotive sector in Brazil USD 169 million approved 300,000 tons/year Strategic unit: first in Asia

• Special steel rolling mill in Brazil
• Improvement in melt shop with new continuous caster in USA
• Capacity expansion at 2 different mills in USA
• Investments in Kalyani Gerdau JV in India

USD 1.5 billion in three years

Investment Installed capacity Goal Investment Future capacity Investment Future Capacity Goal Investment Future Capacity Goal

Brazil

• Company Name:

Gerdau

• Steel Mills:

4

• Downstream Units:
• Representative Offices:

1

• Employees: 4,200
• Crude Steel Capacity (1,000 metric t):

1,380

• Rolled Steel Capacity (1,000 metric t):

1,340

• Rolling Mill Rolls Capacity (1,000 metric t): 40
• Product Portfolio: SBQ, Stainless and Rolling Mill Rolls

General Info

• Steel Mills
• Representative Offices

620,000 t 570,000 t 40,000 t

Brazil

Steel Mills

Pindamonhangaba

• Crude Steel Capacity:
• Rolled Steel Capacity:
• Rolling Mill Rolls Capacity:

Sorocaba

• Rolled Steel Capacity:

Mogi das Cruzes

• Crude Steel Capacity:
• Rolled Steel Capacity:

Charqueadas

• Crude Steel Capacity:
• Rolled Steel Capacity:
• Forged Steel Capacity:

30,000 t 360,000 t 190,000 t 400,000 t 550,000 t 25,000 t

• Steel Mills
• Representative Offices

Industrial Capabilities – SBQ and Stainless

• Pindamonhangaba
• Charqueadas
• Mogi das Cruzes
• Sorocaba

95 t/heat 65 t/heat 70 t/heat VD VD/VOD VD 3.2 to 6.9 t 1.3 to 7.3 t 155 mm 150 and 240 mm 155 and 185 mm 152.4 to 560 mm 63.5 to 410 mm 2 to 31 mm 4 to 30 mm 10 to 125 mm 18 to 80 mm 10 to 100 mm 15 to 52 mm 10 to 76 mm 10 to 105 mm 14 to 130 mm 8 5 2 17.4 to 228.6 mm 76.2 to 129 mm 50 to 88.9 mm 66.7 to 450 mm 15.8 to 203 mm 50 to 82.5 mm 4.4 to 60 x 17 to 145 mm 5.5 to 33.3 mm 5.5 to 30.1 mm 4.7 to 8.2 x 60 to 90 mm

Square bars Forging Mill Round bars Drawing Grinding Inspection Lines Number of lines Sizes Rolling Mill Round bars Square bars Flat bars Wire Rod Types Heat Treatment Ingot casting EAF Degassing Billet casting Bloom casting Melt Shop Other (special profile) Cold Finishing Turning

Q+T, Annealing and Spheroidizing Q+T, Annealing and Spheroidizing Q+T, Annealing and Spheroidizing 5.4 to 32 x 70 to 102 mm

Spain

• Company Name:

Gerdau Sidenor

• Steel Mills:

5

• Downstream Units:

5

• Representative Offices:

5

• Employees: 2,600
• Crude Steel Capacity (1,000 metric t):

1,080

• Rolled Steel Capacity (1,000 metric t):

1,040

• Forged and Casted Parts Capacity (1,000 metric t): 70
• Product Portfolio:

SBQ, Stainless, Rolling Mill Rolls and Forged and Cast Parts

General Info

• Steel Mills
• Representative Offices
• Downstream units

Spain

Steel Mills

Basauri

• Crude Steel Capacity:
• Rolled Steel Capacity:

Reinosa

• Crude Steel Capacity:
• Rolled Steel Capacity:
• Parts Capacity:

Azkoitia

• Rolled Steel Capacity:

Vitoria

• Rolled Steel Capacity:

690,000 t 250,000 t 340,000 t 180,000 t 360,000 t Legazpi

• Crude Steel Capacity:
• Rolled Steel Capacity:

140,000 t 10,000 t 70,000 t 150,000 t

• Steel Mills
• Representative Offices
• Downstream units

Industrial Capabilities – SBQ and Stainless

• Basauri
• Reinosa

220 to 1500 mm 350 to 2500 mm

• Vitoria
• Legazpi
• Azkoitia

20 to 100 mm 95 to 300 mm 5 to 36 mm 19 to 30 mm 20 to 82 mm

Inspection Lines Number of lines Sizes

25 to 100 mm 4 10 to 220 mm 1 5 20 to 80 mm 4 20 to 200 mm

Rolling Mill Round bars Square bars Flat bars Wire Rod Other

25 to 100 mm 70 to 170 mm 100 to 230 mm 5.5 to 38 mm 1.5 to 15 x 1000 x 2000 mm 20 to 200 mm 65 to 200 mm Q+T and Annealing VD/AD

Ingot casting EAF Degassing Billet casting Bloom casting

145 t/heat VD/VOD 155 and 180 mm 300 x 400 mm 70 t/heat VD/AD 3.1 t 50 t/heat 2.5 t 310 x 240 mm

Melt Shop (flat steel)

20 to 45 mm Q+T and Annealing Q+T and Annealing Q+T and Annealing Q+T and Annealing

Square bars Forging Mill Round bars Drawing Grinding Types Heat Treatment Cold Finishing Turning

7 to 40 mm 35 to 88,9 mm 6 to 92 x 50 to 350 mm

Forjanor Villalba

• Business:

Forging Legutiano

• Business:

Cold drawing

Spain

Downstream Units

Maltzaga

• Business:

Cold drawing and turning Forjanor Elgeta

• Business:

Forging Polinya

• Business:

Cold drawing and turning

• Steel Mills
• Representative Offices
• Downstream units

USA

• Company Name: Gerdau MacSteel
• Steel Mills:

3

• Downstream Units:

6

• Representative Offices:

2

• Employees: 1,700
• Crude Steel Capacity (1,000 metric t):

1,180

• Rolled Steel Capacity (1,000 metric t):

1,100

• Product Portfolio: SBQ

General Info

• Steel Mills
• Representative Offices
• Downstream units

USA

Steel Mills

Jackson

• Crude Steel Capacity:
• Rolled Steel Capacity:

Monroe

• Crude Steel Capacity:
• Rolled Steel Capacity:

Fort Smith

• Crude Steel Capacity:
• Rolled Steel Capacity:

250,000 t 470,000 t 460,000 t 440,000 t 230,000 t 430,000 t

• Steel Mills
• Representative Offices
• Downstream units

• Jackson
• Fort Smith

Industrial Capabilities – SBQ

54 t/heat VD 28 to 132 mm 31.8 to 127 mm 3 44.4 to 153 mm

• Monroe

25.4 to 88.9 mm 2 25 to 82.5 mm 14.2 to 82.55 mm 46 t/heat 128 t/heat VAD VAD 178 and 237 mm 160 and 195 mm 152 mm 25.4 to 108 mm 19.05 to 82.5 mm 2 22 to 85 mm

Inspection Lines Number of lines Sizes Rolling Mill Round bars Square bars Flat bars Wire Rod Other Ingot casting EAF Degassing Billet casting Bloom casting Melt Shop Square bars Drawing Grinding Types Heat Treatment Cold Finishing Turning Forging Mill Round bars

Annealing and Spheroidizing Annealing and Spheroidizing Annealing and Spheroidizing

USA

Downstream Units

Lansing - Basset

• Business:

Forged parts coating and heat treating Lansing – Mt. Hope

• Business:

Forged parts coating and heat treating Pleasant Prairie

• Business:

Surface treatment (Nitrosteel) Huntington

• Business:

Heat treatment (Quench & temper) North Vernon

• Business:

Forged parts coating and heat treating Canton

• Business:

Forged parts coating and heat treating

• Steel Mills
• Representative Offices
• Downstream units

• Hot Rolled Bars
• Rounds
• RCS
• Flats
• Special Profiles

Product Portfolio: SBQ

Products Applications

• Forged Bars
• Wire Rod
• Coils

Grades

• Rounds
• RCS
• Flats
• Carbon
• Alloyed
• Micro alloyed
• Free cutting
• International specifications

(SAE, DIN, AFNOR and others)

• Customers specifications
• Automotive
• Non-Automotive
• Trains
• Energy (oil and gas; wind power)
• Mining
• Heavy machinery
• Agricultural equipment
• Powertrain
• Suspension
• Steering

Conrods Gears Crankshafts

• Camshafts
• Bearings
• Fasteners
• Shafts

Coil springs

• Shock absorbers
• Clamps
• Fasteners

Leaf springs Stabilizer bars Gear racks Wheel hubs

• Bearings
• Shafts
• Fasteners

Some of Our Valued Customers

Vehicles in Which Gerdau Steel Can be Found

Research and Development

• 3 research centers (Brazil, Spain and USA)
• The second best research center in the steel industry in Europe
• The best research center in the long steel industry in the Americas
• 200 engineers working with product and process development
• 3,000 different steel grades every year
• 100 process development projects developed in 2007
• 1,000 product development projects in 2007

(PPAP - Production Part Approval Process )

General Info

Areas of Expertise

Steel for Automotive Components

• Conrods
• Crankshafts
• Camshafts

Engine

• Constant velocity joints (CVJs)
• Gears

Transmission

• Gear racks
• Drive shafts

Steering System

• Springs
• Shock absorbers

Suspension

• Bearings
• Fasteners

Various Systems Parts Systems

Areas of Expertise

Steel for Non-Automotive Sectors

Energy

(Wind Power, Oil and Gas)

Agricultural Equipment Applications Sectors Mining Trains Other

• Tractors components
• Subsea equipments components
• Fasteners for wind power equipment
• Grinding bars
• Electrodes for aluminum production
• Springs
• Axles
• Hand tools
• Shafts for electric motors
• Harvester blades
• Mooring chains for offshore rigs

Projects and Partnerships with Think Tanks

BFI-VDEH Fraunhofer-Institut IMA GmbH Dresden IAS Senai Cetemp CRM Vitkovice R&D CEIT Inasmet Labein Irsid Leces Pole Univesitaire Leonard de Vinci CSM Istituto Nazionale Galileo Ferraris Instytut Metallurgii Zelaza ISQ Institutet För Metallfrskning AB IVL Kimab Mefos ASPPRC NCMC AISI AIST FIERF FIA ASPEX

Projects and Partnerships with Universities

• Univ. Aachen
• Univ. Freiberg

UFRGS Unisinos USP Unicamp UFSCar

• Univ. BRNO
• Univ. Mondragon
• Univ. Oviedo
• Univ. Pisa

Colorado School of Mines Carnegie Mellon

• Univ. of Toledo
• Univ. Bristol

Projects and Partnerships with Companies

ALD Dillinger Georgsmarienhutte Saarstahl TKN TKS Aceralia (ArcelorMittal) Tecnatom Ovako-Imatra Rautaruukki Oyj Voestalpine Stahl Acciai Speciali Terni Cogne Gianetti-Magnetto Profilarbed (ArcelorMittal) Corus Outokumpu Sandvik Uddeholm Daido Sumitomo Sanyo Ascometal

• 1. Gerdau Group
• 2. Special Steels Business Unit
• 3. India Business Unit

• Company Name: Gerdau Steel India Ltd.
• Mill Location:

Tadipatri

• Office Location:

Bangalore

• Product Portfolio: SBQ

Gerdau Steel India Ltd.

General Info

Tadipatri

• Crude Steel Capacity:
• Rolled Steel Capacity:

Steel Mill

300,000 t 300,000 t

Tadipatri Bangalore

• Steel Mill
• Office

Gerdau Steel India Ltd.

Project History Current Status

2007 2008 2009 2010 SJK Steel acquired to form a JV between Kalyani Group and Gerdau Group Project on hold due to global financial crisis 2011 2012 Project CAPEX approved for 300,000 tons On Going Projects

• Rolling Mill
• Sinter Plant
• PowerPlant
• SMS upgrades
• Coke Oven
• Township

Rolling Mill start - up 2013 Gerdau takes

• ver Kalyanis

stake

Rolling Mill 1 BF 1 350 m3 BOF 1 35t BOF 2 35t LF 1 35t CCM 1 3 x 150 mm 6m radius Clients VD 1 35 t Sinter 1 33 m2 PCM Existing Approved Projects CPP 6 MW

Configuration: 1,000,000 tons liquid metal

Iron Making Melt Shop Rolling Mill

SBQ: 300,000 t/y Ø 16-65 mm P R O D U C T S

Configuration: 300,000 tons liquid metal

Project Scope

CCM 1 3 x 130 mm 6m radius Inspection Coke Oven CPP 15 MW PCI

Mines

Phase II Expansion

Iron Making Melt Shop Rolling Mill

Configuration: 1.2 million tons liquid steel

CPP 2 CPP 3 CPP 4 15 MW 15 MW 15 MW

Coke Oven Existing Phase I (Under

Implementation)

Phase II

4 Battery 4 Battery 4 Battery Sinter 1 Sinter 2 33 m2 80 m2 Pellet Plant 400 kt/y PCM 108 t/h BF 1 BF 2 350 m3 900 m3 BOF 1 35 t BOF 2 35 t BOF 3 35 t LF 1 35 t LF 2 35 t VD 1 35 t VD 3 75 t CCM 1 150 x 150 mm 6/11 m radius CCM 2 160 x 160 mm 9/15 m radius BOF 4 75 t LF 3 75 t LF 4 75 t CCM 3 260 x 320 mm 120 x 120 mm 12/18 m radius VD 2 35 t RM 1 SBQ: Ø 16-70 mm 300 kt/y RM 3 Wire Rod: Ø 5-17.5 mm 420 kt/y RM 2 SBQ: Ø 50-140 mm 500 kt/y Customers Inspection Inspection CPP 1 CPP 5 6 MW 15 MW PCI 1 PCI 2 Benefication

Special Steel: Long-Term Vision

• Quality of products and services
• Proximity to customers
• Product development
• World-Class operation
• Management technology

To be the global supplier of choice in special steel business

Special Steel Business Operation is core in Gerdau’s strategy

Is proud to announce ‘LK Group’

• f companies as their

distributors for marketing their products.

Thanks