HADEED HSM ENHANCEMENT PROJECT

Transcription

1 HADEED HSM ENHANCEMENT PROJECT Market Impact 18th Middle East Iron and Steel Conference December 8-10, 2014

2 CONTENTS Business Profile Objective Market Data Project Scope & Implementation Project Millstones Updates No. 1

3 HADEED HSM Enhancement BUSINESS PROFILE

4 WE HAVE A CLEAR AMBITION To be the preferred WORLD LEADER in chemicals We will achieve this by partnering with our customers, helping them achieve their ambitions. When they grow, we grow. That s why for us, our customers success comes first. No. 3

5 SABIC IN NUMBERS 1976, our beginning 38 years of growth 2 nd largest global diversified chemical company* 98 th largest public company in the world* 90 B$ total assets 50 B$ annual revenue 6.7 B$ net income 40,000 employees 45 countries 6 Strategic Business Units 63 world-class plants worldwide 19 Technology and Innovation Centers 150 new products each year 10,000 global patent filings * Forbes 2014 No. 4

6 PRODUCTION HAS MULTIPLIED BY 5 IN 20 YEARS A high rate of growth reaching 68.5M metric tons in 2013 Innovative Plastics Performance Chemicals Production (million tons) Metals Fertilizers Polymers Chemicals No. 5

7 SABIC METALS - SAUDI IRON AND STEEL CO. (HADEED) Steel Making/Casting Direct Reduction 5.2 Mtpa DRI 5 Modules Steel Plant with (EAF-6 Nos. & CCM- 5 Nos.) 4 Modules Midrex Total production capacity 6.0 Mtpa 1 Module HYL 2.0 Mtpa Slabs 4.0 Mtpa Billets Hot Rolling Flat 2.0 Mtpa Hot Rolled Coils mm Thick mm Wide CQ, LFQ, SQ, IF, API (Sour and non Sour) Cold Rolling Flat Hot Rolling Long 175 Ktpa CRC. 240 Ktpa CRCG 120 Ktpa GI-PP 4.0 Mtpa Wire rod and Bars CQ, LFQ, SQ, IF, HSLA, DQ, DDQ, EDDQ 300 Ktpa New RIC straightening Shop mm size No. 6

8 HADEED HSM Enhancement OBJECTIVE

9 OBJECTIVE Enhancement of Hadeed Hot Strip Mill throughput from 2.0 to 2.4 Mtpa to satisfy part of High HRC regional Market s Demand both in Quantity & Quality. Positive Contributions: More Supply Capacity Optimized Conversion Cost Reliable Product Quality Expanded Product Portfolio Improve Plant Availability Thermo-Mechanical Control No. 8

10 HADEED HSM Enhancement MARKET DATA

11 HADEED HSM - PRODUCTION HISTORY Highest Production (Enhancement plan) 2,073 Enhancement 2.4MTPA in ,400 Expansion to 2.0 MTPA in ,253 Startup Capacity 0.8Mtpa No. 10

12 GCC HOT ROLLED COILS MARKET 2013 Oman 10% Kuwait 6% Qatar & Bahrain 1% 4.2 Mtpa UAE 19% KSA 64% GCC HR Coils Demand Source : Metal Bulletin Research 2013 & SABIC Market Intelligence Survey No. 11

13 KSA - HRC MARKET- DEMAND & SUPPLY FORECAST 3,700 Base case Growth Rate 3, % 3,184 2,700 2,200 1, ,000 MT HRC 1,720 1,200 1, (300) (800) (702) (430) Demand Local Export No. 12

14 HADEED HSM Enhancement PROJECT SCOPE & IMPLEMENTATION

15 HSM ENHANCEMENT MATERIAL BALANCE + Imported slabs (65 %) 2,100 kt/a 2,000 kt/a 450 kt/a DRI + Scrap Steel Plant - Flat Product (SP-FP) Hot Strip Mill (HSM) Cold Mill Complex (CMC) Cold Rolled Galvanized & Color Coated Coils 2,224 kt/a 2,400 kt/a 450 kt/a 420 kt/a + Internal slabs (35 %) Hot Rolled Coils 1,640 kt/a 1,960 kt/a 420 kt/a Present After project completion No. 14

16 HADEED HSM- PLANT CONFIGURATION HSM Design Present Design Design Capacity 2.0 Mtpa RHF Capacity 440 tph (2 RHF, 220 tph each) Roughing Mill power 2 X 5000 kw Down coilers 2 Finishing Stands 6 Headers : 144, 90 meters Laminar Cooling Coiling temp: o C Cooling rate: 30 o C/s No. 15

17 ENHANCEMENT SCOPE Reheating Furnace Roughing Mill Laminar Cooling Automation System Present Future 2X220 tph Old recuperation Sys. Only PHZ with no Burners 2 X 250 tph New recuperation Sys. PHZ new Burners 2 X 5000 kw drives Old Drive Control Sys. 2 X 7000 kw New Drive Control System 30 C/s 5600 m 3 /hr. water Coiling temp o C No Fast Cooling Nozzles 52 C/s m 3 /hr. water Coiling temp o C Additions of Fast Cooling Nozzles Obsolete & Old system Limited controls Non reliable New state of the art control system ( A1 & A2) Expand Control system No. 16

18 HADEED HSM Enhancement PROJECT UPDATES

19 PROJECT MILSTONE UPDATE Status: Contract Awarding within 2nd Qtr Project execution with months Mechanical Completion planned to be by 2 nd Qtr Commercial Production to start into 03 rd Qtr Project Execution Strategy: LSTK project execution No. 18

20 Thank you No. 19