LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION

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1 ETTORE CERNUSCHI CHIEF TECHNICALOFFICER DANIELI CENTRO TUBE 10 INTERNATIONAL STEEL TUBE & PIPE FORUM COLOGNE - GERMANY TH SEPTEMBER 2015 LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION

2 LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION THE AUTHORS MR. ETTORE CERNUSCHI CHIEF TECHNOLOGY OFFICER DCT Birth place: Italy Education: BS Degree in Mechanical Engineering Professional achievements: Co-inventor of 19 patents related to seamless pipe plants with Danieli and other 12 in the previous lives (INNSE-SACMA)

3 LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION INDEX 1. DANIELI OVERVIEW 2. DANIELI CENTRO TUBE OVERVIEW 3. THE VALLOUREC 7 OD SEAMLESS PROJECT & RELEVANT OPERATIVE RESULTS 4. TECHNOLOGICAL PACKAGES 5. STAINLESS PRODUCTS

4 LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION ^ 1. DANIELI OVERVIEW 2. DANIELI CENTRO TUBE OVERVIEW 3. THE VALLOUREC 7 OD SEAMLESS PROJECT & RELEVANT OPERATIVE RESULTS 4. TECHNOLOGICAL PACKAGES 5. STAINLESS PRODUCTS DANIELI OVERVIEW

5 1 DANIELI OVERVIEW DANIELI PLANT MAKING - MAIN PRODUCTS LINES IRONMAKING STEELMAKING ENGINEERING PROCUREMENT CONSTRUCTION EXTRUSION FORGING AUTOMATION PROCESS CONTROL LONG PRODUCTS ROLLING FLAT PRODUCTS HOT FLAT PRODUCTS COLD CUSTOMER SERVICE

6 1 DANIELI OVERVIEW DANIELI GROUP PRODUCTION UNITS PRODUCTS > Steelmaking > Flat products > Long products > ABS: 0.75 Mtpy steel production capability > Steelmaking > Flat products (aluminium & steel) > Long products > Direct reduction > Steel tubes (welded & seamless) > Heavy sections, rails > ABS: 1.5 Mtpy steel production capability (Pozzuolo + Sisak)

7 1 DANIELI OVERVIEW DANIELI GROUP CONSTRUCTION / ENGINEERING ITALY THAILAND P.R. CHINA AUSTRIA GERMANY SAUDI ARABIA INDIA RUSSIA ENGINEERING USA CANADA FRANCE UK POLAND SWITZERLAND UKRAINA JAPAN EGYPT VIETNAM SPAIN ROMANIA BRASIL SWISS CZECH TURKEY NETHERLAND

8 1 DANIELI OVERVIEW DANIELI GROUP Danieli Headquarters in Buttrio, Italy Danieli China, Changshu Danieli Thailand Danieli India Danieli China, Beijing Danieli Austria Danieli Fröhling, Germany Danieli Volga, Russia Danieli Taranis, USA

9 LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION ^ 1. DANIELI OVERVIEW 2. DANIELI CENTRO TUBE OVERVIEW 3. THE VALLOUREC 7 OD SEAMLESS PROJECT & RELEVANT OPERATIVE RESULTS 4. TECHNOLOGICAL PACKAGES 5. STAINLESS PRODUCTS DANIELI CENTRO TUBE OVERVIEW

10 2 DANIELI CENTRO TUBE OVERVIEW DANIELI IN TUBULAR PRODUCTS THE SUPPLIES COVERS THE WHOLE RANGE OF PIPE-MAKING EQUIPMENT SEAMLESS WELDED SPECIAL EQUIPMENT SPECIAL EQUIPMENT > Seamless Pipe Mills up to OD 28 > Finishing Lines > Technological Packages > Single Equipment > ERW Longitudinal Pipe Mills up to OD 26 > HSAW Spiral Pipe Mills up to OD 120 > Technological Packages > Finishing Lines > Cold Pilger Mills > Tube & Coupling Threading Equipment

11 2 DANIELI CENTRO TUBE OVERVIEW SEAMLESS PIPE MILLS REFERENCES ALL AROUND THE WORLD Since 2004, birth year of DCT, as a result of innovative technology and big efforts, 13 contracts for seamless pipe plants are already under execution and/or under operation activity. Further developments and improvements in the process and equipment design are in progress looking for the next future. USA VENEZUELA K.S.A. RUSSIA KAZAKSTAN INDIA CHINA

12 2 DANIELI CENTRO TUBE OVERVIEW SEAMLESS PIPE MILLS REFERENCES CUSTOMER O.D. MIN.-MAX RANGE (mm) O.D. MIN.-MAX RANGE (inch) ANNUAL CAPACITY (tpy) LOCATION YEAR KSP STEEL O.D (339.7) O.D. 10" 3/4 270,000 KAZAKHSTAN 2004 CHENGDU (PANGANG GROUP) O.D O.D. 7" 350,000 P.R. CHINA 2005 NSW (MAXI GROUP) JESCO (TAGA GROUP) O.D (194.5) O.D. 7" 450,000 RUSSIA 2005 O.D O.D. 16" 400,000 SAUDI ARABIA 2006 USTPL O.D O.D. 14" 350,000 INDIA 2007 TMK O.D O.D. 14" 600,000 RUSSIA 2007 JIANLONG IRON & STEEL O.D O.D. 7" 450,000 P.R. CHINA 2008

13 2 DANIELI CENTRO TUBE OVERVIEW SEAMLESS PIPE MILLS REFERENCES CUSTOMER O.D. MIN.-MAX RANGE (mm) O.D. MIN.-MAX RANGE (inch) ANNUAL CAPACITY (tpy) LOCATION YEAR HUBEI XIN YEGANG O.D O.D. 7" 400,000 P.R. CHINA 2008 V&M STAR O.D O.D. 7" 450,000 USA 2010 JIANGYIN CH. O.D O.D. 7" 400,000 P.R. CHINA 2008 EBS TUBOS SIN COSTURA O.D O.D. 14" 465,000 VENEZUELA 2009 BENTELER O.D O.D. 5" 1/2 320,000 USA 2012 NEW O.D O.D. 9 5/8 450,

14 2 DANIELI CENTRO TUBE OVERVIEW THE FQM TM FINE QUALITY MILL TECHNOLOGY PLANT SIZE PORTFOLIO 16 Jesco 7 Vallourec 5 ½ Benteler 9 5/8 NEW

15 2 DANIELI CENTRO TUBE OVERVIEW THE FQM TM FINE QUALITY MILL TECHNOLOGY The FQM 3-ROLLS TYPE The Danieli FQM "Fine Quality Mill" is a retained mandrel mill process. The FQM mainly consists of one set of 4 to 6 rolling units, each one equipped with three individually driven rolls. MANDREL SHELL FQM EXTRACTING MILL The tube is rolled passing through each stand while the cylindrical mandrel moves at a constant controlled speed during the whole rolling phase. At the end of FQM rolling, the mandrel returns rapidly through the mill back in the starting position, while the tube is extracted from the mandrel by means of a extracting mill located in-line with the FQM.

16 2 DANIELI CENTRO TUBE OVERVIEW THE FQM TM FINE QUALITY MILL TECHNOLOGY THE FQM EVOLUTION MPM Up to 2004 FQM ACO From 2005 FQM LCO From 2008 FQM LCO ESR+ From 2013

17 2 DANIELI CENTRO TUBE OVERVIEW TECHNOLOGICAL IMPROVEMENTS OF THE FQM PROCESS High quality products and saving in material cost > Close wall thickness tolerances > Good diameter tolerances > Very high pipe surface smoothness > Optimal yield (better shape of tube ends) Saving in operational cost > Significant reduction in tooling cost and consumption > Reduction in mandrel inventory and tooling change frequency Earnings in efficiency, flexibility and versatility > High efficiency of the process > Internal and external defects minimized > Reduced tooling change over time > Increased flexibility (small lots) > Steels with critical hot workability can be rolled > Pipes with thin wall thickness (higher D/T ratios) can be rolled

18 2 DANIELI CENTRO TUBE OVERVIEW SEAMLESS DIVISIONS / PARTNERS THE DANIELI DIVISIONS/PARTNERS INVOLVED IN SEAMLESS PIPE MILL PROJECTS Known as DCC, Danieli Centro Combustion since 1990 represents the heating and heat treatment system company of Danieli Group. Known as DA, Danieli Automation through 40 years experience and over 400 plants operating worlds wide, assures the perfect integration of the different process unit for a totally efficient production plant. Kocks is a reliable Danieli partner who has conquered the technology market leadership in special rolling mill field.

19 2 DANIELI CENTRO TUBE OVERVIEW THE FINISHING LINES HEAT TREATMENT QUALITY ASSURANCE FINISHING UP-SETTING PREMIUM

2 DANIELI CENTRO TUBE OVERVIEW THE FINISHING LINES HEAT TREATMENT LINE TYPICAL LINE PRODUCTION CAPACITY 100.000 200.

20 2 DANIELI CENTRO TUBE OVERVIEW THE FINISHING LINES HEAT TREATMENT LINE TYPICAL LINE PRODUCTION CAPACITY Tons / Year TYPICAL LINE CONFIGURATION > Pipe identification system > Hardening Furnace > Descaling Ring and Quenching system (Quenching Head and/or Quenching Tank) > Tempering Furnace > Hot Straightener, 10 rolls > Cooling Bed > Hardness Tester > Sample Cutting Saw > Marking System

2 DANIELI CENTRO TUBE OVERVIEW THE FINISHING LINES QUALITY ASSURANCE LINE TYPICAL LINE PRODUCTION CAPACITY 150.000 200.

checking bench > Scale evacuation unit > Tube Body NDT (Non Destructive Testing) for longitudinal and transversal defect detection

21 2 DANIELI CENTRO TUBE OVERVIEW THE FINISHING LINES QUALITY ASSURANCE LINE TYPICAL LINE PRODUCTION CAPACITY Tons / Year TYPICAL LINE CONFIGURATION > Pipe identification system > Cold Straightener 6 rolls type; > Off-line straightness checking bench > Scale evacuation unit > Tube Body NDT (Non Destructive Testing) for longitudinal and transversal defect detection (EMI and UT) > Tube ends UT NDT > Repairing stations (defective parts cutting saws, grinding machine, repairing tools, collecting cradles, ) > Marking System

2 DANIELI CENTRO TUBE OVERVIEW THE FINISHING LINES TUBING / CASING FINISHING LINE TYPICAL LINE PRODUCTION CAPACITY 150.000 200.

22 2 DANIELI CENTRO TUBE OVERVIEW THE FINISHING LINES TUBING / CASING FINISHING LINE TYPICAL LINE PRODUCTION CAPACITY Tons / Year TYPICAL LINE CONFIGURATION > Pipe identification system > Pipe Threading Machine > Visual inspection and gauge application stations > MPI Stations > Thread Phosphatizing System > Coupling Pre-Screw, Screw-on and Drifter > Hydrotesting Machine > Grease and Protector Applicator > Protective Coating Application > Weighing, Length Measuring and Marking Station > Bundling, strapping and wiring Machines

AREA > Pipe identification system > Induction Furnace >

23 2 DANIELI CENTRO TUBE OVERVIEW THE FINISHING LINES UPSETTING LINE TYPICAL LINE PRODUCTION CAPACITY Tons / Year TYPICAL LINE CONFIGURATION UPSETTING AREA > Pipe identification system > Induction Furnace > Upsetting Press > Cooling table > Marking System CHECKING AREA > Visual Inspection > Defects Cutting Saw > Marking System

2 DANIELI CENTRO TUBE OVERVIEW THE FINISHING LINES PREMIUM THREAD FINISHING LINE TYPICAL LINE PRODUCTION CAPACITY 50.000 100.

24 2 DANIELI CENTRO TUBE OVERVIEW THE FINISHING LINES PREMIUM THREAD FINISHING LINE TYPICAL LINE PRODUCTION CAPACITY Tons / Year TYPICAL LINE CONFIGURATION > Pipe identification system > Pipe End Swaging Machine > Pipe Threading Machine; > Visual inspection and gauge application stations > MPI Stations > Blasting and Thread Phosphatizing System > Coupling Pre-Screw, Screw-on and Drifter > Hydrotesting Machine > Grease and Protector Applicator > Protective Coating Application > Weighing, Length Measuring and Marking Station > Bundling, strapping and wiring Machines

25 2 DANIELI CENTRO TUBE OVERVIEW THE PROJECT EXECUTION OAT - OPERATING ASSISTANCE TEAM (background from previous experiences with top level tube-makers such as Tenaris) on exclusive basis means: PLANT PERSONNEL RECRUITMENT PLANT PERSONNEL TRAINING OPERATING ASSISTANCE FOR ACCELERATED PLANT RAMP-UP COLD TESTS HOT TESTS PERFORMANCE TESTS OPERATION

26 LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION ^ 1. DANIELI OVERVIEW 2. DANIELI CENTRO TUBE OVERVIEW 3. THE VALLOUREC 7 OD SEAMLESS PROJECT & RELEVANT OPERATIVE RESULTS 4. TECHNOLOGICAL PACKAGES 5. STAINLESS PRODUCTS THE VALLOUREC 7 OD SEAMLESS PROJECT & RELEVANT OPERATIVE RESULTS

27 3 THE VALLOUREC 7 OD SEAMLESS PROJECT FOREWORD The 7 Seamless plant was developed in order to satisfy the growing request of OCTG in U.S. Market. Agreement date December 2008 Agreement place Main referring market Paris - France Oil & Gas application

3 THE VALLOUREC 7 OD SEAMLESS PROJECT THE HOT ROLLING LINE MAIN PLANT DATA Location Production capacity pipes Youngstown, OH - U.S.A. 450,000 tpy of seamless Production range 2 3/8-7 outside diameter 60.

28 3 THE VALLOUREC 7 OD SEAMLESS PROJECT THE HOT ROLLING LINE MAIN PLANT DATA Location Production capacity pipes Youngstown, OH - U.S.A. 450,000 tpy of seamless Production range 2 3/8-7 outside diameter 60.3 [mm] [mm] YOUNGSTOWN Wall thickness range Starting material 3.6 [mm] [mm] Round billet 225 [mm] ɸ

3 THE VALLOUREC 7 OD SEAMLESS PROJECT THE HOT ROLLING LINE MAIN PLANT DATA Area: 95,000 m 2 (612 x 156 [m]) Hot rolling mill (Danieli supply) > Three billets carbide saws > Billet rotary heating

29 3 THE VALLOUREC 7 OD SEAMLESS PROJECT THE HOT ROLLING LINE MAIN PLANT DATA Area: 95,000 m 2 (612 x 156 [m]) Hot rolling mill (Danieli supply) > Three billets carbide saws > Billet rotary heating furnace > Billet double centering machine > Cone type piercer with lateral guiding discs > 5-stands FQM, 3-roll design ACO > 3-stands extracting mill > 24-stands stretch reducing mill, 3-roll design > Four layer pipes saws Finishing lines (Vallourec supply) > 1 Heat treatment line > 1 Quality assurance line > 1 Casing-tubing threading line > 1 Straightening line > 1 Bundling line

3 THE VALLOUREC 7 OD SEAMLESS PROJECT THE HOT ROLLING LINE LAYOUT 7 5 6 9 10 11 12 13 8 2 3 4 1 1 BILLET CUTTING AREA (3 SAWS) 5 FQM 3 ROLLS TYPE ACO 9 INTERMEDIATE COOLING BED 13 LAYER CUTTING AREA

30 3 THE VALLOUREC 7 OD SEAMLESS PROJECT THE HOT ROLLING LINE LAYOUT BILLET CUTTING AREA (3 SAWS) 5 FQM 3 ROLLS TYPE ACO 9 INTERMEDIATE COOLING BED 13 LAYER CUTTING AREA (4 SAWS) DCT SUPPLY 2 HEART ROTARY FURNACE 6 EXTRACTING MILL (3 STANDS) 10 INTERMEDIATE FURNACE PROCESS CONTROL DCC SUPPLY 3 BILLET DOUBLE CENTERING MACHINE 7 RETAINING SYSTEM 11 STRETCH REDUCING MILL (24 STANDS) KOCKS SUPPLY 4 PIERCING MILL 8 MANDREL HEATING FURNACE 12 COOLIGN BED DA SUPPLY

31 3 THE VALLOUREC 7 OD SEAMLESS PROJECT RAW MATERIAL AND PLANT PERFORMANCE HOT ROLLING LINE STARTING RAW MATERIAL DIMENSION AND TOLERANCES REQUIREMENT BAR DIAMETER BAR LENGTH BILLET LENGTH BILLET MAX. WEIGHT STEEL QUALITY TOLERANCE ON DIAMETER TOLERANCE ON LENGTH TOLERANCE ON LINEAR WEIGHT TOLERANCE MAX. OVALITY TOLERANCE MAX. CAMBER IN LENGTH WITH A TOTAL LIMIT OF mm (180 mm) 4,000-10,000 mm 1,190 mm - 4,500 mm Approx. 1,250 kg Carbon and low alloy steel, alloy steel Cr 13%, as required for the production of all the API tubes (casing, tubing and line pipe) included in the product mix. ± 1.4 % of nominal value mm ± 2 % of nominal value ± 2 % of nominal value (cross section inclination 3% max) 0.3 % 20 mm for 8 m length 30 mm for 12 m length

32 3 THE VALLOUREC 7 OD SEAMLESS PROJECT RAW MATERIAL AND PLANT PERFORMANCE HOT ROLLING LINE

33 3 THE VALLOUREC 7 OD SEAMLESS PROJECT RAW MATERIAL AND PLANT PERFORMANCE HOT ROLLING LINE FINAL PRODUCT DIMENSIONAL AND TOLERANCES OUTPUT API 5CT API 5CT API 5D API 5L ASME SA106 Type O.D. [mm] [inch] Tubing (42.2) (1.66) 2 3/8-4 ½ Casing ½ - 5 ½ Drill pipe Line pipe /8-6 5/8 (42.2) (2) 2 3/8-6 5/8 Others (38) (1.49) W.T. [mm] Qnty. [tons] Length [mm] (3.18) ,356 11,580-12, ,881 10,365-14, ,968 11,585-13, ,795 6,860-13,720 (2.75) ,039-12,501 TOTAL (FINAL PIPES) 450,000

34 3 THE VALLOUREC 7 OD SEAMLESS PROJECT RAW MATERIAL AND PLANT PERFORMANCE HOT ROLLING LINE FINAL PRODUCT DIMENSIONAL AND TOLERANCES OUTPUT Outside diameter tolerances of finished pipe ± 0.3% or ± 0.3 mm (when OD < 100 mm) on 2σ Wall thickness [mm] Wall thickness % on the average value w 5 ± 7 5 < w 8 ± 6 8 < w 12 ± 5 w > 12 ± 4

35 3 THE VALLOUREC 7 OD SEAMLESS PROJECT RAW MATERIAL AND PLANT PERFORMANCE HOT ROLLING LINE

36 3 THE VALLOUREC 7 OD SEAMLESS PROJECT RAW MATERIAL AND PLANT PERFORMANCE HOT ROLLING LINE PLANT PRODUCTIVITY Max productivity (billets) Rolling time 120 pcs/h 140 tons/h 5,151 hours/year

37 3 THE VALLOUREC 7 OD SEAMLESS PROJECT PLANT PRODUCTIVITY 2012 JUNE 2012 NOVEMBER FIRST BILLET PIERCED FIRST COMMERCIAL PIPE ROLLED Vallourec Star FQM pipe mill operating results % OF TOTAL PRODUCTION % OF TOTAL PRODUCTION kton years

38 3 THE VALLOUREC 7 OD SEAMLESS PROJECT OPERATIVE PLANT PERFORMANCE TEST PERFORMED: JUNE 2013 VALLOUREC STAR 7" EQUIPMENT SUPPLIED COMPLETE HRL TUBES DIMENSIONS Nominal mm Fabrication WT mm OD 73 WT OD WT RELEVANT PERFORMANCE TEST: YIELD FTT off Tube 114,3 x 7,5 FTT on Tube 73 x 5,62 GPP GPP + allowance GPP GPP + allowance DECLARED YIELD DECLARED CROP RATE ACHIEVED YIELD (WITHOUT COBBLES) ACHIEVED DROP RATE Length Head + Tail - FTT off Tube 114,3 x 7,5 Length Head + Tail - FTT on [mm] 1400 [mm] 3800 [mm]1400 [mm]2230 Tube 73 x 5,62 FTT APPLICATION DURING PERFORMANCE TESTS EXECUTION FTT: Front Tail Tapering (automation function used on FQM)

39 3 THE VALLOUREC 7 OD SEAMLESS PROJECT OPERATIVE PLANT PERFORMANCE TEST PERFORMED: JUNE 2013 TUBES DIMENSIONS Nominal mm Fabrication WT mm OD WT RELEVANT PERFORMANCE TEST QUALITY DECLARED ACHIEVED DIAMETER TOLERANCE % ± 0.3 % ± 0.3 % WALL THICKNESS TOLERANCE GPP GPP+ allowance ± ± % % ± 6 % RELEVANT PERFORMANCE TEST ROLLING CYCLE s pcs/h DECLARED CAPACITY ACHIEVED 30* 120 * Result achieved not only tested tubes but for the whole product mix

3 THE VALLOUREC 7 OD SEAMLESS PROJECT PLANT IMPROVEMENTS THE FTT 1 2 3 4 5 THE CONCEPT FRONT TAIL TAPERING It means production of thinned shape ends on the mother tube after FQM-Extracting mill.

40 3 THE VALLOUREC 7 OD SEAMLESS PROJECT PLANT IMPROVEMENTS THE FTT THE CONCEPT FRONT TAIL TAPERING It means production of thinned shape ends on the mother tube after FQM-Extracting mill. Tapering in the body section due to uneven temperature may be also compensated. HEAD Macro element 1 Macro element 2 BODY Macro element 2 TAIL Macro element 1 FTT acts on the capsule position in order to apply the imposed tapering parameter, and the same time roll speeds are adjusted in order to avoid any interstand tension or compression. Any undesired tension or compression is avoided automatically between FQM and EXTRACTOR. Front and tail of the pipe are automatically detected, different billet length does not affect the result of correction. THE TARGET > Improve WT inlet profile or SRM process > Reduce even more the crop length > Enhance the production yield

3 THE VALLOUREC 7 OD SEAMLESS PROJECT PLANT IMPROVEMENTS THE FTT - OPERATIVE RESULTS SRB (reading) RESULTS OBTAINED USING AN IMS READING Detected crop head Detected crop

41 3 THE VALLOUREC 7 OD SEAMLESS PROJECT PLANT IMPROVEMENTS THE FTT - OPERATIVE RESULTS SRB (reading) RESULTS OBTAINED USING AN IMS READING Detected crop head Detected crop tail no FTT Applied FTT Applied 2.08 [m] 1.16 [m] [m] (-44%) 2.70 [m] 1.07 [m] [m] (-60%) Total crop 4.78 [m] 2.23 [m] [m] (-53%) FTT Applied no FTT Applied

42 3 THE VALLOUREC 7 OD SEAMLESS PROJECT PLANT IMPROVEMENTS THE FTT - CONCLUSIONS Analyzing the results it becomes evident the effectiveness of the FTT functionality in terms of crop reduction. As a conclusion it can be guaranteed that the production yield can be improved by using FTT function. From the various analysis and production tests made on field with FTT ON, it is proven that the functionality is reliable and the effectiveness is stable and repeatable. HEAVY ENDS FQM SRM NO FTT Mandrel mill Stretch reducing mill FQM TAPERED PROFILES SRM NO HEAVY ENDS WITH FTT Mandrel mill Stretch reducing mill

43 LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION ^ 1. DANIELI OVERVIEW 2. DANIELI CENTRO TUBE OVERVIEW 3. THE VALLOUREC 7 OD SEAMLESS PROJECT & RELEVANT OPERATIVE RESULTS 4. TECHNOLOGICAL PACKAGES 5. STAINLESS PRODUCTS TECHNOLOGICAL PACKAGES

44 4 TECHNOLOGICAL PACKAGES FOREWORD ATC ADAPTATIVE (WALL) THICKNESS CONTROL CMC CONTROLLED MANDREL COOLING HCMD HYDRAULIC CAPSULE & MOTOR DRIVE FUNCTIONS HBC HOT BILLET CENTERING MACHINE ILPB PIERCER II SECTION WITH IN-LINE PLUG BAR CHANGING

45 4 TECHNOLOGICAL PACKAGES FOREWORD ATC Adaptative (Wall) Thickness Control CMC Controlled Mandrel Cooling

4 TECHNOLOGICAL PACKAGES ATC - ADAPTIVE (WALL) THICKNESS CONTROL AIM To optimize the wall thickness distribution in the cross section and along the length of the tube at the outlet of extracting mill.

46 4 TECHNOLOGICAL PACKAGES ATC - ADAPTIVE (WALL) THICKNESS CONTROL AIM To optimize the wall thickness distribution in the cross section and along the length of the tube at the outlet of extracting mill. BENEFITS > Better wall thickness quality > Eccentricity s improvement > Reduced wear on mandrel > Improving of the mandrel s life ROI If Instrument Measurement System (IMS) is installed the payback is few months, considering that the IMS has to be installed less than two years for a 400,000 tpy plant

47 4 TECHNOLOGICAL PACKAGES ATC - ADAPTIVE (WALL) THICKNESS CONTROL PROCESS An auto-adaptive algorithm to optimize wall thickness distribution across the section and along the length of the tube at the extracting mill outlet using the IMS hot wall thickness measuring device. Dynamic correction of the capsules adjusts the transversal shape of the wall thickness and the longitudinal profile. Capsule stroke corrections can be done using two different modes: > Sequential: tube after tube and taking into account the previously rolled and measured tube > Tracked Mandrel: the preceding tube rolled with the same mandrel is taken into account wall thickness [mm] alfa [degrees] WT_measured corr_wt_ext WT_EXT_correcte d

number of measured points is higher than

48 4 TECHNOLOGICAL PACKAGES ATC - ADAPTIVE (WALL) THICKNESS CONTROL EQUIPMENT The ATC mathematical model can reconstruct the wall thickness in each angular position if the number of measured points is higher than three and odd (13 is the best compromise). IMS Gauge

4 TECHNOLOGICAL PACKAGES CMC - CONTROLLED MANDREL COOLING AIM To reach a constant temperature along the entire length of the working part of the mandrel.

49 4 TECHNOLOGICAL PACKAGES CMC - CONTROLLED MANDREL COOLING AIM To reach a constant temperature along the entire length of the working part of the mandrel. BENEFITS > Uniform temperature means uniform lubrication coating > Uniform lubrication coating means improved life of mandrel > Improved life of mandrel means save money ROI The payback is only one year in fully operation for 450,000 tpy plant

4 TECHNOLOGICAL PACKAGES CMC - CONTROLLED MANDREL COOLING PROCESS It is based on a mathematical model that starting from the information acquired by the pyrometers located at the mandrel cooling

Calculation of cooling times for each zone it is carried out using the already stored set of thermal exchange coefficients (one set for each section).

50 4 TECHNOLOGICAL PACKAGES CMC - CONTROLLED MANDREL COOLING PROCESS It is based on a mathematical model that starting from the information acquired by the pyrometers located at the mandrel cooling stations defines the proper operating time for each set of nozzles. Calculation of cooling times for each zone it is carried out using the already stored set of thermal exchange coefficients (one set for each section). The initial temperature is measured at the mandrel cooling station entry by pyrometer Py1. PY 2 TO LUBRICATION UNIT If the temperatures read with PY2 is different from the calculated one, than new thermal coefficients are calculated and substituted with an interactive process COOLING STATION 2 d = 100 [mm] EQUIPMENT: COOLING STATION 1 > Sections > Stations > Valves > Pyrometers (PY1 PY2) > CMC Math model PY 1 FROM FQM SECTIONS

51 4 TECHNOLOGICAL PACKAGES CMC - CONTROLLED MANDREL COOLING PROCESS CONTROL TEMPERATURE PROFILE AT FIRST COOLING STATION INLET TEMPERATURE PROFILE AT SECOND COOLING STATION EXIT

52 LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION ^ 1. DANIELI OVERVIEW 2. DANIELI CENTRO TUBE OVERVIEW 3. THE VALLOUREC 7 OD SEAMLESS PROJECT & RELEVANT OPERATIVE RESULTS 4. TECHNOLOGICAL PACKAGES 5. STAINLESS PRODUCTS STAINLESS PRODUCTS

5 STAINLESS PRODUCTS REFERENCE MARKET INDUSTRY

platforms in O&G exploration Seabed Sand Screen Wellhead

Process / Piping / High Pressure Process Piping / Turret

53 5 STAINLESS PRODUCTS REFERENCE MARKET INDUSTRY APPLICATIONS TYPE OF PRODUCTS OFF-SHORE Semisummersible platforms in O&G exploration Seabed Sand Screen Wellhead OCTG Drilling risers FLNG / FPSO / FPU / TLP: Topside / Process / Piping / High Pressure Process Piping / Turret piping / connection to seabed Manifolds Flowlines Well - jumpers

Furnace / Fired heater Heat exchanger LNG Ships

Piping / Tubing Heat Exchanger Piping / Tubing

54 5 STAINLESS PRODUCTS REFERENCE MARKET INDUSTRY APPLICATIONS TYPE OF PRODUCTS ON-SHORE Refinery Furnace / Fired heater Heat exchanger LNG Ships Gas compression GTL / LNG On-Shore Engineering Piping / Tubing Heat Exchanger Piping / Tubing Heat Exchanger Oil rig / Wellhead / Flowlines / Plants OCTG

APPLICATIONS GENERAL INDUSTRY Nuclear Plant Conventional

Instrumentation tubes Piping / Pipes for fitting Coal

55 5 STAINLESS PRODUCTS REFERENCE MARKET INDUSTRY APPLICATIONS TYPE OF PRODUCTS POWER GENERATION APPLICATIONS GENERAL INDUSTRY Nuclear Plant Conventional Power Plants General Industry Heat exchanger Instrumentation tubes Piping / Pipes for fitting Coal Power Plant Measuring / Control Pipes Heat exchanger Boilers TRANSPORT Aereospace Jet engines Automotive

56 5 STAINLESS PRODUCTS REFERENCE MARKET INDUSTRY APPLICATIONS TYPE OF PRODUCTS DISTRIBUTION Line / Preparation / Stock CONSTRUCTION TECHNOLOGY Cylinder tubes MARINE Submarine Piping system CHEMICAL PIPING Urea Plant Petrochemical Piping Heat exchanger Piping

5 STAINLESS PRODUCTS OVERALL PROCESS STARTING MATERIAL HOT EXTRUSION PLANT COLD FINISHING LINE Billets: > Forged > Hot Rolled > Hot Extrusion > Hollow

57 5 STAINLESS PRODUCTS OVERALL PROCESS STARTING MATERIAL HOT EXTRUSION PLANT COLD FINISHING LINE Billets: > Forged > Hot Rolled > Hot Extrusion > Hollow Finishing > Hollow Quality/Testing/Repairing > Packing and Shipping > Cold Rolling / Drawing > Straightening > Inspection and testing > Cutting > Packing and Shipping

58 5 STAINLESS PRODUCTS HOT PLANT CONFIGURATION 1. BILLET PREPARATION AREA 2. ROTARY FURNACE 3. INDUCTION FURNACE 4. LUBRICATION TABLE & VERTICAL EXPANDER > Cutting to length /weight > Boring > Machining > Cutting to length /weight > Boring > Machining > Degreasing > Exit temperature aprox C > The billet is rolled on a lubrication table and than the the Vertical Expander wll expand the hole in the billet > Degreasing 5. INDUCTION CELLS 6. LUBRICATION TABLE & EXTRUSION PRESS 7. QUENCHING & COOLING BED > The tempertature is omogenized > Billet are lubricated externally and internally > The hollow billet will be processed to produce a pipe or profile > The pipe are quenched using a Tank Water and finally cooled down in a WBCB

59 5 STAINLESS PRODUCTS HOT PLANT CONFIGURATION ROTARY HEARTH FURNACE INDUCTION FURNACE VERTICAL EXPANDER EXTRUSION PRESS

60 5 STAINLESS PRODUCTS COLD PLANT CONFIGURATION 1. COLD ROLLING 2. STRAIGHTENING 3. INSPECTION & TESTING > Cold Pilgering > Cold Drawing > Bright Annealing / Black Annealing > Straightener > Gag press > UT Testing > Eddy Current Testing > Hydrotesting 4. CUTTING > Tube End Cutting 5. PACKING & SHIPPING > Pickling / Passivation > Marking > Weighing > Packing

61 5 STAINLESS PRODUCTS COLD PLANT CONFIGURATION COLD PILGER MILL STRAIGHTENER MACHINE SPECIAL EQUIPMENT

62 ETTORE CERNUSCHI CHIEF TECHNICALOFFICER DANIELI CENTRO TUBE 10 INTERNATIONAL STEEL TUBE & PIPE FORUM COLOGNE - GERMANY TH SEPTEMBER 2015 LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION

LATEST TECHNOLOGIES FOR COMPETITIVE SEAMLESS TUBE PRODUCTION

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