High Performance Stainless Steel Long Products & Production Process of Daido Steel. ISSF-8 Seoul, Korea

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1 1 High Performance Stainless Steel Long Products & Production Process of ISSF-8 Seoul, Korea May 17, 2004 Hiroo Inamori Co., Ltd

2 2 Consumption of Stainless Steel (SS) Long Products Rapid increase of consumption in Asia (Thousand tons per year) Asia Western Europe others

3 3 Consumption & Production Capacity of SS Wire Rods in in Asia (Thousand tons per year) Taiwan China 132 Japan 168 Taiwan 132 Korea 108 S.E Asia China ~ Capacity Consumption China 324 (+192) 504 (+0)

4 4 Consumption & Production Capacity of SS Wire Rods in in Asia Consumption Production Capacity Japan China Taiwan Korea S.E. Asia Total (Thousand tons per year)

5 5 Current Conditions Rapid increase of consumption in Asia Rapid increase of production capacity in China Increasing production of common grades in China Overproduction and price competition in East Asia Daido s strategy Value added and high performance products Sophisticated production process & technology From Volume to Value

6 6 SS Long Products of Output : 178,000 t/y (2003) Corrosion-Resistance Electro-Magnetic Heat-Resistance High-Hardness others Cold-Heading VALUE-ADDED 113Mt/y (63.5%) Free-Cutting COMMON 65Mt/y (36.5%) 304,316 etc. 403&

7 7 Typical Examples of High Performance Grades of

8 8 302HQ with Higher [Cu] Content Cold Workability 4mass% [Cu] contained 302HQ (18Cr-9Ni-Cu) Excellent cold workability (heading, drawing) Advanced process technology for poor 10 (poor) (excellent) hot workability SS CONVENTIONAL Hot Workability Cold Workability Cu contents (mass%) 10 (poor) (excellent) Hot Workability

9 9 303 Free Cutting SS with Higher [S] Content 0.4 mass% [S] contained 303 (19Cr-9Ni-S) Superior machinability and comparable corrosion resistance with conventional steel (0.3mass%S) Advanced process technology for poor hot workability SS High S [ 0.4mass%S ] Conventional [ 0.3mass%S ] Cutting chip in drilling

10 10 Clean SS for Ultra Fine Wire Super clean 304,316 by remelting processes Drawability: 0.012mm Super Clean SS Conventional [ AOD-VSR-VSR ] [ AOD-ESR ] [ AOD ] No. of Inclusions ( N / 3.75cm 2 ) Max. Dia. ( µm ) Al 2 O 3 [0.010mm] Ultra fine wire [φ 0.012mm] Fractured wire [φ 0.023mm ] in drawing

11 11 WSR44K* // Ferritic SS Welding Wire Fine grain microstructure Superior mechanical, oxidation and corrosion properties Application for exhaust systems Tensile Strength (MPa) WSR42K 20 Solid wire WSR44K WSR44K (Ti,Al,N added) Conventional Elongation (%) Elongation(%) Tensile Properties at 950 degree C * Patent Pending WSR44K 1mm Conventional 1mm Macrostructure of Weld Bead

12 12 Production Process of High Performance Grades Melting ( VCR-B/L CC) Rolling Isothermal Temp. Control Secondary Processing Application 302HQ High Cu VE ( Low C,N ) VE --- Cold Heading ( Screw ) 303 High S --- VE --- Free-cutting ( Shaft, Pin ) Clean SS VE ( Triple-Melting ) --- VE ( Special Drawing ) Ultra Fine Wire ( LCD&PDP, Mesh ) WSR44K E E VE:Very Effective E:Effective --- Welding Wire For Exhaust Muffler

13 13 Daido s Advanced Process Technology

14 14 Daido s Newly Designed/Developed Production Process & Technology New Process for for High Performance Stainless Steels EAF VCR CC (350 φ) Ingot Casting Bloom rolling Inline Reheating Furnace Billet rolling Full Automatic Inspection & Conditioning High Performance Wire rolling Bar rolling Conventional Process EAF AOD CC (Billet) Conditioning Wire rolling Bar rolling

15 VCR (Vacuum Converter Refiner) 15 Vacuum pump Higher efficiency of decarburization Ultra low [C], [N] content Shortening of refining time Saving of Argon gas consumption 0.1 Conventional AOD Argon gas Vacuum level 5.3kPa [C] % Grade:302HQ Vacuum Time:15min Pressure:5.3kPa Before final de[c] stage VCR After final de[c] stage

16 16 Vertical & Round Bloom CC Specification Bloom size : 350mm φ Type:Vertical bloom caster Capacity : 57,000 ton/month Number of strand : 4 Ladle size : 80ton Tundish size : 20ton Casting velocity : 0.65m/min Pinch roll with soft reduction

17 High Performance Wire Rod Mill 17 High productivity by one heat rolling Seam free rolling Small size wire rod rolling (φ 4) Billet ( 155mm sq, 145mm sq ) Reheating furnace Non-oxidation reheating furnace Rough rolling ( reversing) Inline induction heater 3 roll mill (φ 500) [ 2std x 3 ] Intermediate rolling mill [ HV x 6std ] Block mill mill [ X [ 10std x ] ] New sizing mill [ 2std x 2 ]

18 18 Non-Oxidation Reheating Furnace N 2 Induction coil Billet Nitrogen atmosphere 1700KW,250Hz Drive roller Air atmosphere Mechanism of induction reheating furnace Cross section of products

19 19 Inline Induction Heater Rolling temperature Roughing Intermediate Finishing With IH Without IH Rolling temperature transition

20 20 3 Roll Mill ( φ 500 ) 3-Roll Position (120 degree) Roll Reducer & Distributer Drive Moter 3-Roll Mill

21 SUMMARY 21 Demand for High Performance SS Daido s Advanced Process Technology R&D Value Added & High Performance Stainless Steel Cold Heading Stainless Steel Free Cutting Stainless Steel Super Clean Stainless Steel Heat Resistant Steel

22 Introduction of ( Domestic Major Works) 22 Products Specialty Steel (Long Products) Die Forging Works Production Plant Process (x1000t/ y) Chita Melting & Rolling 918 Hoshizaki Ti-Melting, Rolling 241 Kawasaki Rolling 35 Chita Die Forging 67 Kimitsu Die Forging 30 Free Forging Shibukawa Melting, Remelting & Free forging Strip Products Chita Cold Strip Rolling 22 IT Castings (Stainless Steel) Tsukiji Casting 5 Nakatsugawa Precision Casting 4 Automobile IT Customer Industrial Equipment Automobile 62 Aerospace Power Generation Automobile Industrial Equipment

23 23 Miscellany

24 Specialty Steel Production by Steel Grade 24 Spring 3% Tool 3% Bearing 12% Alloy 31% Stainless 13% including Ni-base alloys t/y Carbon 18% Free C utting 20%

25 New Pb-free Free Cutting Steels -StarcutTICS 25 Innovative free cutting element : Ti-carbosulfide Superior machinability by fine dispersion Excellent corrosion resistance Av. Frank Wear (um) Tool : Carbide(M20) Cutting Speed : 100m/min Feed : 0.1mm/rev Depth of Cut : 1.0mm Cutting Length : 22mm Lube. : Water Soluble 430F Starcut TICS Number of Machining Operations 50μm 50μm <Starcut TICS> <430F (MnS)> Microstructures (base : Fe-16%Cr) <TICS> <430F> Machinability in turning/ base : Fe-16%Cr Corrosion Resistance / base : Fe-16%Cr Salt Spray Test (35 C,5% NaCl, 96h)

26 New blooming and billeting process of of Chita Plant 26 Ingot Soaking Pit No.1 CC Reheating Furnace Blooming Mill Large Mill Bloom and Billet Rolling Shop in Chita Plant Inline Press No.2 CC Reheating Furnace Inline Reheater Billeting Mill 155mm sq Billet 145mm sq Billet New Process Ingot CC-Bloom Inline Press Blooming Mill Inline heating furnace Large Mill Billeting Mill Improvement of Internal Quality Improvement of yield Constant rolling temperature control (less surface defects)

27 27 Schematic view of Inline Press (I/P) Hydraulic cylinder Accumulator Manipulator Ingot or CC bloom

28 Photograph of Inline Press (I/P) 28 Manipulator Hydraulic cylinder

29 29 High-Performance Wire rolling mill in in Hoshizaki Plant 2 Induction Heater 1 Non-Oxidation reheating furnace (Induction Heater) Reheating Furnace Rapid reversing roughing mill Intermediate rolling 4φ290 Kocks Sizing Mill Block Mill Direct Annealing Furnace Wire Rolling Press Laying head 3φ500 Kocks 5 Compact Sizing Mill(4φ) Reheating Furnace Non oxidation reheating furnace (Ti,Ti-alloy,Superalloy etc) Rough Rolling (reversing) IH φ500 Kocks Intermediate rolling Block Mill φ290 Kocks New Size Mill 4φ Wire rod

30 Melting Equipment of of Shibukawa Plant 30 Electric Arc Furnace VCR(AOD) ESRx6 30t x 1 20t x 1 20t x 2 Vacuum Ladle Furnace 30tx2 Vacuum Induction Melting Ingot Casting 2.5~32.5tIngot 3t x 1 9t x 1 0.5~10tIngot VARx7 2~15tIngot VSRx1 Inclusion Size (µm) Frequency AOD AOD-VSR AOD-VSR-VSR Quality of Special Remelted SS for Ultra Fine Wire

31 31 Billet ( 155mm sq, 145mm sq ) Reheating furnace Non-oxidation reheating furnace Rough rolling ( reversing) Inline induction heater 3 roll mill (φ500) [ 2std x 3 ] Intermediate rolling mill [ HV x 6std ] Block mill [ X x 10std ] New sizing mill [ 2std x 2 ]

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