Industrial Visit Report

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1 Industrial Visit Report Ceylon Steel Corporation 14 / 02 / 2016 Mechanical Engineering Sectional Committee

2 Industrial Visit Report 2 EXECUTIVE SUMMARY Mechanical Engineering Sectional Committee (MESC) of The Institution of Engineers Sri Lanka (IESL) arranged an industrial visit to Ceylon Steel Corporation, Oruwala on 14 th February 2017 with the participation of 38 Engineers. The purpose of the visit was to enhance industry exposure of the participants, get practical insights into steel manufacturing processes and functional management techniques. TABLE OF CONTENTS EXECUTIVE SUMMARY 2 INTRODUCTION CEYLON STEEL CORPORATION 3 VISIT INSIGHTS 4 APPRECIATION 7 NEXT VISITS 8

3 Industrial Visit Report 3 INTRODUCTION CEYLON STEEL CORPORATION Ceylon Steel Corporation Limited, the undisputed leader in the manufacture of steel products, is the pioneer organization that ushered in steel production to Sri Lanka. Priding itself on that pioneering heritage, Ceylon Steel Corporation Limited, or to call by its brand names, LANWA SANSTHA WANE, is always committed to adopting the very latest technological advancements and operational procedures that are not only productive but proactively environmentally friendly to delivering steel solutions to the nation that have become the preferred choice for their quality, standards and affordability. That stamp of excellence is what Lanwa strives to uphold in every aspect of their operation. There by to win the trust which they have for over five generations of their clients, customers and all the rest of the stakeholders of the construction industry. Company Milestones 1961 Founding of Ceylon Steel Corporation 1967 March Commissioning of the Rolling Mill and Wire Mill 1975 October Commissioning of the Steel Foundry 1982 July Commissioning the 25 T Electric ARC Furnace and Steel Billet Casting Plant 1993 January Conversion of Ceylon Steel Corporation to Ceylon Steel Corporation Limited 1996 December Transfer of Ceylon Steel Corporation Limited to HANJUNG ( Korea) 1997 April Inauguration of Ceylon Heavy Industries and Construction Companies Limited (CHICO) 2009 September Acquisition of Ceylon Heavy Industries and Construction Companies Limited 2010 April Inauguration of Ceylon Steel Corporation Limited 2012 May Commissioning of the GI Pipe Plant 2012 November Commissioning of the Galvanize plant Company Products Lanwa QT Bars Lanwa GI Pipes Lanwa BRC Mesh Lanwa GI Mesh Lanwa Square Tubes Lanwa Hot Dipped Galvanizing Source: -

4 Industrial Visit Report 4 VISIT INSIGHTS As scheduled, the visit team reached the Ceylon Steel Corporation facility at 1.30pm. The team first gathered at the company auditorium with enthusiasm to learn about the steel manufacturing processes. The session was started with a detailed introduction done by Mr. Taya F. Diaz, head of corporate communication at Ceylon Steel Corporation. He explained how the company has evolved from its inception in 1960 s to its modern day operations. He explained how the facility was initiated by Russians targeting future demand of steel in an area more than 400 acres to build the future steel city in the country. Currently the entire facility is operating in an extent of 168 acers, which has not only steel mills but also a considerable extent of vegetation which act as a living lung ( as Mr. Diaz described) absorbing the noise and dust to make the environment clean. This was a clear explanation of how important vegetation in the fight against environment pollution and running a sustainable business. He further explained how the new management turnaround the company appearance by revamping the entire facility from heaps of scrap steel to a lovely garden. The company is now operating in an environmentally friendly manner with ISO 14001:2004 certification. They were the first to introduce locally manufactured GI pipes to the market and their products expand from cold drawn to flat iron covering around 15 products. As per the details revealed, Ceylon Steel was the first to introducing QT bars with the drawing capability of 8mm to 40mm with bendable and re-bendable properties. He explained why the chemical composition of steel billets is important to make the product with correct properties without being too brittle or too elastic.

5 Industrial Visit Report 5 He further explained their core business values and how they differentiates the Ceylon Steel Corporation from other market players and have an advantage over completion in terms of the product quality and sustainability. They maintain raw material quality by latest laboratory testing, ensuring 100% steel from iron ores avoiding use of recycled steel. According to Mr. Diaz in the highly volatile raw material market, making correct purchasing decision is one of the crucial factors of success. The discussion was followed by the a company corporate video which explained how the steel industry evolved in Sri Lanka from ancient times to current era and how the Ceylon Steel Corporation plays it role in Sri Lanka with the Onyx group of UAE to its current markets presence with product portfolio under Lanwa Santha Wane. After the introductory session the team was headed to the factory visit. Since there were large number of engineers participated for the visit the team was divided in to three groups and went separately with the guidance of Ceylon Steel Corporation quality assurance team. At the rolling mill, billets of 12m are cut to 3 pieces using gas cutting to feed into the oven which heats the billets up to 1250 o C and pass through the rolling mill t0 produce QT bars. The advance European technology is used at the rolling plant with high efficiency and capacity to ensure high throughput coupled with precise QTB process. Once the bars are produced to required diameter, SLS and Lanwa branding logos with rib patterns are embossed. The bars are cooled in a special water cooling method. Finally the bars are cut to required lengths and automatically counted and bundled. Each turnaround batch of bars are subjected to a stringent quality control process at the quality check laboratory located in the mill itself. The finished goods area was observed with automated and semi-automated cranes picking up goods and dispatching in to waiting trucks.

6 Industrial Visit Report 6 The wire mill produces the hard drawn wires in a variety of gauges of weld mesh and black reinforce concreate wire mesh (BRC). The mill has a range of equipment to handle tasks from scaling to welding. Further, the team observed a newly introduced nail making facility. GI pipe mill was the new addition to the range of facilities and products under Lanwa brand. Starting from high quality steel sheets, the process follows the sheets going through the slitting machine which reduces the width and cut the sheets in to appropriate narrow strips. The cut sheets are then joined together before going through a conveyer which feed the strip in to sections which gradually creates the desired shape of a circular pipe or box pipe.

7 Industrial Visit Report 7 The quality of the Lanwa products is checked right from the receiving of raw materials. In the rolling mill the QC process starts from the inspection of supplier mill certificates for chemical composition. Inspection of raw materials or billets is done by physical verification. Once the manufacturing process is ongoing several parameters and characteristics are checked to ensure the product quality. The visiting team witnessed the company material testing laboratory that carries out sophisticated metrological tests ascertaining properties of steel and raw materials and for material compositions. It was evident that, through continues improvement, adopting latest state of the art production technology and skilled and experience manufacturing technicians and engineers, the Lanwa strive to add value and deliver best quality products. APPRECIATION On behalf of the Mechanical Engineering Sectional Committee of The Institution of Engineers Sri Lanka (IESL), we wish to thank Mrs. Gowri Karawita, Manager HR of Ceylon Steel Corporation for make arrangements to visit. We specially thank to Mr. Nimal Yapa and Mr. Taya F. Diaz for the insights shared with us about the Ceylon Steel Corporation. The team extends our gratitude to the Board of Directors, the staff of the HR & QA departments of Ceylon Steel Corporation for facilitating the same. The visit was commended by many engineers as a valuable learning experience.

8 Industrial Visit Report 8 NEXT VISITS Alumex Plc, Sapugaskanda 18 th March 2017 at 9.30 a.m. Coming up North Sales PREPARIED BY ENG. KAMAL WIMALARATNE Coordinator Industrial Visits (MESC of IESL)