John Brett: A challenging market environment - ArcelorMittal ...
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1 Company 1 Community 1 Magazine ArcelorMittal USA March/April 2020 Vol. 13, No. 2
03
John Brett:
A challenging
market environment
04
The injuries that change lives
06
Do you have a twin?
08
Ready for duty
08
Our steel in sports
Make it slips, trips and falls Digital twins are our Our steel in the USS St. Louis The home team would
prevention company’s problem solvers be nowhere without us!
Liz Johnson Summer Paris Jolice Pojeta USA Communications
2 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | March/April 2020
> Global News
ArcelorMittal and Nippon Steel complete acquisition of Essar Steel
ArcelorMittal has completed the CEO of ArcelorMittal. “Essar has
acquisition of Essar Steel India sizeable, profitable, well-located
Limited (ESIL) and simultaneously operations and the long-term
established a joint venture with growth potential for the Indian
Nippon Steel Corporation (Nippon economy and Indian steel demand
Steel), called ArcelorMittal Nippon are well known.”
Steel India Limited (AM/NS India), “We are also delighted to be
which will own and operate ESIL. embarking on this together with
ArcelorMittal holds 60% of Nippon Steel, with whom we have
AM/NS India, with Nippon Steel a trusted, long-term relationship.
holding the balance. Our combined strengths and
Aditya Mittal, President and technology will bring many
CFO of ArcelorMittal, has been new opportunities which will
appointed Chairman of AM/NS allow us to make a positive
India, and Dilip Oommen has been contribution to India’s target to
appointed AM/NS India’s CEO. grow steelmaking capacity to
Commenting, Lakshmi 300 million metric tons per year
Mittal, Chairman and CEO of by 2030, and for its manufactur-
ArcelorMittal, said: ing sector more broadly.”
“The acquisition of Essar AM/NS India is an integrated
Steel is an important strategic flat steel producer and the largest
step for ArcelorMittal. India has steel company in western India.
long been an attractive market Its current level of annualized
for our company and we have crude steel production is about
been looking at suitable opportu- 7.5 million metric tons. It also has
nities to build a meaningful iron ore pellet facilities in the east
production presence there for of India, with a current annual
more than a decade,” stated capacity of 14 million metric
Lakshmi Mittal, chairman and tons per year. AM/NS India, formerly Essar Steel India Limited
> Global News
ArcelorMittal’s Olympic hopeful
Multi-talented Danil Polyanskiy is an ArcelorMittal miner and a competitive
pole vaulter. Here he shares his journey to the cusp of Olympic qualification,
giving us a glimpse into his life underground and in the sky:
Our 10 sustainable
development outcomes
Our 10 sustainable development
outcomes are how we will
contribute to making a more
sustainable future, from the way
we make steel and use resources,
Multi-talented Danil Polyanskiy, an ArcelorMittal miner and a competitive pole vaulter, shares his journey to the cusp of Olympic qualification. With
the company’s support, he has traded mine for gym, as he trains full-time in the hope of carrying the dreams of a nation in Japan this summer. to how we develop new products, and
support our people and our communities.
You’re either born with a talent and without a wristwatch or rest of my time at the gym. opportunity to do my favorite
for pole vaulting, or you’re not. mobile phone, just some of the My personal life was almost thing in the world. Now every- 1 Safe, healthy, quality working lives
To be a world-class pole measures taken across the board non-existent and I was only thing is different: I have two
vaulter, you need to be fast and to reduce the risk of electrical getting four or five hours of sleep training sessions a day rather than for our people
well-coordinated. You also need spark, which we must avoid a night. This schedule was very one and have time to rest properly
to be a natural risk-taker – and because methane is highly hard on my family and on me. in between. I also get a full night’s 2 roducts that accelerate more sustainable
P
start training by the age of combustible. Thanks to the extra For instance, last April, I sleep every night and have
twelve. methane detectors the company missed the birth of my daughter weekends off to spend with my lifestyles
Pole vaulting, as I see it, and has installed, I can more accu- because I was at a training camp family. I think only about training
my career as a foreman of route rately monitor the gas levels in in Turkey preparing for the Asian and competitions, so I am entirely 3 roducts that create sustainable
P
control in Tentekskaya mine are the air and pump in the right Championship in Doha the focused on achieving my goal and infrastructure
like yin and yang. For me, these amount of fresh air from the following week. (Elizaveta was I feel the support of my family.
seemingly opposite activities are surface, together with some two weeks old before I could It takes nerves of steel to run
complementary, interconnected chalk dust – a natural neutralizer. get home to meet her.) I finished with and launch yourself from a
4 E fficient use of resources and high
and interdependent, each giving In problem areas, we carry out a respectable 9th place in that pole that can be up to 5.3 meters recycling rates
rise to the other. additional drilling to release competition, but to secure long. And although the pole only
At work, I go into an enclosed methane gas. myself a trip to Tokyo this year, weighs a few pounds, when held 5 Trusted user of air, land and water
space that’s up to 500 meters I have a responsibility to I’m aiming higher. from the end, it effectively weighs
deep, with few routes in and myself and my colleagues to make To support me in achieving 20 pounds or more, so all in all, 6 esponsible energy user that helps
R
out, to fulfill a crucial role in sure everyone is safe. Shouldering my ambition to make the it’s a sport that’s not only a
a workplace with unique and this responsibility every day builds Kazakh Olympic team this year, physical feat but also a mental create a lower carbon future
extreme challenges. My job is in me a resilience set in courage ArcelorMittal has generously and emotional one. I love the
to monitor the safety of the and strength. given me a year off to train courage I feel in the run-in. When 7 S upply chains that our customers trust
mine’s roadways, as well as its In my pole vaulting, I draw while paying my wages and I push into the pole, it throws me
gas levels and ventilation system. on those attributes to fly. guaranteeing my job for me so high it takes my breath away. 8 ctive and welcomed member
A
There are two reasons my Since my university days on my return. Since June, I Whatever happens with my
job is critical: firstly, because at Karaganda State Technical have been focusing on my Olympic ambitions this year, I will of the community
safety is the company’s top University, my life’s ambition pole vaulting so I can maximize go back to the important job I do
priority, and secondly, because has been twofold: to represent my chances of qualifying. at ArcelorMittal, because I enjoy
9 ipeline of talented scientists and engineers
P
methane is released as a direct Kazakhstan at the Olympic Games Between August 2019 it and because I will always be for tomorrow
result of the physical process of and to follow in my father and and this September, I have grateful for the support they have
coal extraction. As layers of the grandfather’s footsteps to be a 15 competitions; 15 chances given me in achieving my dreams. 10 ur contribution to society measured,
O
coal face are removed, the coal miner. What I didn’t plan on was to show my best result. To I will also keep competing. Who
releases methane previously doing both at the same time. get to Tokyo, one of those knows, I may even make it to shared and valued
trapped within the coal seam Securing the sponsorship attempts must be “golden.” the next Olympics in Paris come
into the air inside the mine, thus necessary to concentrate on my For me, as a pole vaulter, that 2024! In any case, I want to set All underpinned by transparent good governance.
creating a potential safety hazard. sport proved extremely difficult, means conquering heights of an example for my daughter, to
It’s my job to manage this so, to support myself, I joined at least 5.8 meters. That is reach for her dreams as I have Look for “The 10” symbol in 1 Magazine to see how
risk, often in utter darkness, ArcelorMittal earlier than I’d my objective for the year. done. Even if she doesn’t follow
save for the light from the planned, in 2016. I worked full I’m so grateful to the me into the mines, I do hope she our company works toward a more sustainable future.
lamp attached to my helmet time and spent virtually all the company for giving me this follows me into sport!
3 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | March/April 2020
A challenging market environment
So far this year, steel
John Brett demand from the automotive
and construction sectors appears
steady and we’re seeing a modest
Looking back at 2019 and uptick in business from our
ahead to the remainder of HVAC and appliance customers.
2020, it has been, and is likely Energy is a mixed story with
to continue to be, a challenging transmission projects using line
market environment for the steel pipe continuing to be approved
industry. There was a sizeable and constructed at a good pace,
disconnect between the overall but demand for OCTG is down.
economy and the market demand Most encouraging, customers
for our products. While GDP have started replenishing their
grew at 2.3% in 2019, apparent inventories supporting the
steel consumption for flat rolled announced price increases which
products decreased approximate- began late in 2019 and continued
ly 3%. The overall economy is in the onset of 2020. These
expected to continue expanding, increases certainly give us some
albeit at a slower pace, but the much-needed traction entering
forecast for manufacturing is, the new year, but prices remain
at best, lackluster. For 2020, flat below pre-Section 232 levels.
rolled apparent steel consumption The Section 232 trade
forecasts range from a slight measures did continue to have
decrease in demand to no growth. the effect of reducing steel
In 2019, we experienced imports. Finished steel imports
lower demand across all major declined by more than 18% in
steel-consuming sectors, much 2019. The continuation of the
of which stemmed from inventory Section 232 measures is critical
destocking. U.S. auto sales were to the overall health of the U.S.
higher than anticipated reaching steel market. With soft global
17 million units for the fifth markets, we will be on the
consecutive year, but North lookout, as always, for unfairly
American production dropped traded steel in the market. John Brett, CEO, ArcelorMittal USA
nearly 5%. The destocking was The slowdown in imports is
even more pronounced in the positive for domestic mills, but
steel service center segment. the impending capacity increase resulted in a substantial increase on a year-over-year basis. We Safe Sustainable Steel video will Workers Memorial Day/Health
Flat rolled shipments declined in both steelmaking and galvaniz- in our delivery performance. We must all rededicate ourselves also focus on slips, trips and falls, and Safety Day on April 28.
6% year-over-year, but much ing will heighten competition. need to institutionalize the gains to practicing Shared Vigilance, and they are the focus of an Please recommit to working
more impactful was the 10% This is why it is imperative that we made and build upon the following every safety protocol article on page 4 of this edition as safely as possible on that
decrease in steel receipts. we continue to operate our assets operational momentum exhibited and stopping to identify potential of 1 Magazine. day and to helping ensure the
The combination of sluggish in the safest and most efficient in the second half of the year hazards before every task. ArcelorMittal USA observes safety of your co-workers.
demand and lower input prices, way possible while meeting our while commercially, we cultivate We continue to see far
most notably scrap, resulted customers’ expectations each new customers and opportunities. too many slips, trips and falls
in a significant decrease in and every time. In addition to Unfortunately, our safety in our workplaces. That’s why ArcelorMittal observes Health
transactional prices. The cost maintaining good cost control, performance in 2019 was both ArcelorMittal USA has initiated and Safety Day and Workers’
of hot band, as reported by CRU, we made meaningful improve- disappointing and unacceptable. a special campaign to increase
averaged about $230 per ton ments in some key operating Regrettably, we experienced awareness of these dangers. Memorial Day on April 28.
less in 2019 than 2018. Although parameters in 2019. We reduced three fatalities, two of which This campaign includes a trifold, This international observance
the price deterioration occurred both our internal rejects and occurred in Q4. We cannot be containing general reminders is to remember co-workers
throughout the year, it culminated additional processing. These key pleased with any results until we and prevention practices, as well
early in Q4 and, consequently, enablers, along with improved are fatality-free. Additionally, as a risk assessment checklist who have been killed, injured
had a substantial negative impact reliability and outstanding for the first time since 2015, our that can be used during audits or disabled on the job.
on our financial results. cross-functional cooperation, LTI frequency rate deteriorated or special assignments. April’s
> Raw Materials
Efficient raw materials planning requires year-round team effort
year-end inventory target for injection coal are 30 days on hand the upper Midwest causes target inventories of stone are from many companies and teams
Gary Norgren each raw material for the next while scrap and coke targets are these locks to close every year closer to 150 days at the end of within ArcelorMittal USA. Even
two winters. Once established, closer to two weeks on-hand. for 70 days, usually from January the season in late November. during the 70-day lock closure,
both procurement and our Iron ore pellets are the 15 through March 25. This closure The coordination between the mills are careful to use pellets
Manufacturing integrated steel logistics departments jump one raw material that requires provides a significant challenge the mines, railroads, vessel in the proper ratio with other
in the Great Lakes region has into action. Procurement finalizes the most planning. The pellet for our company. We need to carriers and steel plants is charge metallics to make sure
some unique challenges. As raw the purchase volumes with our mines that supply our plants are deliver enough pellets to our exceptional during the nine- the pellets are not depleted
materials division manager for key suppliers for the following located in Northern Minnesota. steel plants by January 15 that month shipping season. Loading quicker than planned. It has
our USA operations over the past year. Logistics works diligently We operate two plants there, will last until early April without and unloading equipment at our been rewarding to work with
several years, I’ve worked with with truck, railroad, barge and Minorca and Hibbing Taconite. any deliveries of pellets to our docks must be fully operational the various teams to manage
our facilities, procurement and vessel carriers to ensure we We also purchase pellets from USA steel facilities. We receive our with little downtime during the and improve the flow of pellets
logistics teams to ensure we are delivering the necessary two other Cliff’s owned mines, first vessel of pellets for the new shipping season. Planned to our U.S integrated facilities.
specify, purchase, deliver and raw material, based on our United Taconite and Northshore season between March 27 and maintenance is performed both The spring of 2014 is still
consume the raw materials year-end target. Mining. These mines blast the April 1. Typically, on April 1, we at the docks and on the vessels remembered as the most
needed to produce our high- There are more than 30 raw ore from the ground in large are left with just 10 days of pellet during the 70-day lock closure challenging year, by far, due
quality integrated steel products. individuals within ArcelorMittal open pits, then separate the iron inventory. April also proves to be to ensure high reliability during to harsh winter weather. We,
The primary raw materials we USA involved in the raw materials ore from the waste rock, then a challenge with ice still present the shipping season. The mines as a company, are ready to
use are iron ore pellets, coal, supply chain. Total raw material form the iron ore into the small on Lake Superior, slowing the continue production during this minimize the impact to our
coke, limestone and scrap. movements and consumption balls about the size of gumballs vessel transit times. We can time, delivering ore material to operations when we are faced
With our major steel are 32 million tons-per-year. called pellets. typically deliver the same number the dock stockyards during the with the next 2014-like winter.
manufacturing operations That includes roughly 18 million Boats transport the pellets, of pellets that we consume in April lock closure.
located in Northwest Indiana tons of iron ore pellets, two carrying anywhere from 15,000 and do not actually start to build For the first time in many Gary Norgren was recently named
and Cleveland, the winter weather million tons of other iron-bearing to 60,000 gross tons per vessel. up the pellet inventory level at the years, vessel shipping companies general manager of mining for
can be quite harsh from mid- materials, four million tons of The vessels then travel across mills until early May. With roughly have announced the manufacture ArcelorMittal USA, with responsi-
December through late March. coal, and two million tons each Lake Superior and through the less than 150,000 gross tons of and commissioning of new vessels bility for mining operations at
We need to ensure we have of coke, stone and scrap. Soo Locks located at the east end pellets on the ground in April, we in the coming year to replace ArcelorMittal Minorca, Princeton
adequate inventories of all While the coal, coke and of Lake Superior. From there, they spend from May until mid-January some of the aging fleet currently and Hibbing Taconite Company.
these materials on-hand at scrap inventory levels are come down through either Lake growing the inventory to close to moving pellets. There is also work Most recently, Gary served as
each location to be ready for relatively constant throughout Michigan or Lakes Huron/Erie to 1.5 million tons of pellets when underway to design and build division manager of raw materials
the tough winter cold weather, the year, the year-end inventories our steel facilities. The average the locks close. This equates to a new Soo Lock to replace the for ArcelorMittal USA.
high winds and snowstorms are typical 10% to 20% higher time for pellets to arrive is three about 100 days of inventory on aging, but crucial current lock.
that occur each year. to account for supply interrup- days. With the unloading and hand. Stone for the blast furnaces The process of supplying This article was originally
Planning for the winter tions that may occur due to return trip, it takes six days per have a shorter shipping season pellets to our mills is a year-round published in ArcelorMittal USA’s
starts as much as 18 months in winter weather. Summer target full roundtrip. due to the impact of cold weather effort that requires significant “Raw Materials” blog.
advance. Our operations set the inventory levels for coal and Unfortunately, the weather in in both the fall and spring, so planning and implementation
An adequate supply of iron ore is needed to feed the blast furnaces
The Stewart Cort makes frequent iron ore deliveries to ArcelorMittal at our three integrated facilities of Burns Harbor, Cleveland and
Burns Harbor almost year-round, even when winter has started. Indiana Harbor throughout the year, and especially during the Processed taconite iron ore pellets from ArcelorMittal’s mining
Sometimes an icebreaker ship is needed to help vessels like the shipping offseason when the Soo Locks are closed from January 15 facilities are needed year-round to feed the blast furnaces used
Cort make their way when the Great Lakes freeze. through March 25. to make liquid iron as part of the steelmaking process.
4 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | March/April 2020
Three things that can change your life: slips, trips and falls
Slips, trips and falls are the second most common injury in the workplace and the most common injury at
home. As we get older, we become more susceptible to these potentially devastating injuries.
A simple thing can change your But don’t let a fear of or problems with your thyroid, your risk of falling. Falls are a common reason for health include quitting smoking
life – like tripping on a rug or falling keep you from being active. nerves, feet, or blood vessels Confusion can sometimes trips to the emergency room and and limiting alcohol use, which
slipping on a wet floor. If you fall, Overcoming this fear can help you can affect your balance. Some lead to falls. For example, if hospital stays among older adults. can decrease bone mass and
you could break a bone. A break stay active, maintain your physical medicines can cause you to feel you wake up in an unfamiliar Many of these hospital visits are increase the chance of fractures.
can be the start of more serious health, and prevent future falls. dizzy or sleepy, making you more environment, you might feel for fall-related fractures. You can Also, try to maintain a healthy
problems, such as a trip to the Doing things like getting together likely to fall. Other causes include unsure of where you are. If you help prevent fractures by keeping weight. Being underweight
hospital, injury, or even disability with friends, gardening, walking, safety hazards in the home or feel confused, wait for your mind your bones strong. increases the risk of bone loss
– especially for older people. The or going to the local senior center community environment. to clear or until someone comes Having healthy bones won’t and broken bones.
risk of falling – and fall-related helps you stay healthy. The good Scientists have linked to help you before trying to get prevent a fall, but if you fall, it Osteoporosis is a disease
problems – rises with age. news is, there are simple ways to several personal risk factors to up and walk around. might prevent breaking a hip or that makes bones weak and
prevent most falls. falling, including muscle weakness, Some medications can other bone, which may lead to a more likely to break. For people
Many older adults fear falling problems with balance and gait, increase a person’s risk of falling hospital or nursing home stay, with osteoporosis, even a minor
The fear of falling becomes Causes and risk factors and blood pressure that drops too because they cause side effects disability, or even death. Getting fall may be dangerous. Talk to
more common as people age, for falls much when you get up from lying like dizziness or confusion. The enough calcium and vitamin D your doctor about osteoporosis.
even among those who haven’t Many things can cause a fall. down or sitting (called postural more medications you take, the can help keep your bones strong.
fallen. It may lead older people Your eyesight, hearing, and hypotension). Foot problems more likely you are to fall. So can physical activity. Try to Source: U.S. National Institutes
to avoid activities such as walking, reflexes might not be as sharp that cause pain and unsafe get at least 150 minutes of of Health
shopping, or taking part in social as they were when you were footwear, like backless shoes Keep your bones strong to physical activity per week.
activities. younger. Diabetes, heart disease, or high heels, can also increase prevent falls Other ways to maintain bone
Take the right steps to prevent falls
If you take care of your overall health, you may be able to lower your
chances of falling. Most of the time, falls and accidents don’t “just
happen.” Here are a few tips to help you avoid falls and broken bones:
Wear non-skid,
slip-resistant, low-
heeled shoes, or
lace-up shoes with
non-skid soles that
fully support your
Use an assistive
feet. It is important
device if you need Be very careful when walking on
that the soles are not
help feeling steady wet or icy surfaces. Spread sand
too thin or too thick.
when you walk. or salt on icy areas.
Appropriate use of
canes and walkers can
prevent falls.
Always tell your doctor
if you have fallen since your
last checkup, even if you
aren’t hurt when you fall.
A fall can alert your doctor to a
Stand up slowly. Getting
new medical problem or prob-
up too quickly can cause
lems with your medications or
your blood pressure to
eyesight that can be corrected.
drop, which can make you
feel wobbly.
Stay physically active. Plan an exercise
program that is right for you. Regular exer-
cise improves your muscles and makes you
stronger. It also helps keep your joints, ten- Get enough sleep.
dons, and ligaments flexible. Have your eyes If you are sleepy, you
and hearing tested. Even small changes in are more likely to fall.
sight and hearing may cause you to fall. Find
out about the side effects of any medicine Limit the amount of alcohol
you take. If a drug makes you sleepy or dizzy, you drink. Even a small
tell your doctor or pharmacist. amount of alcohol can affect
your balance and reflexes.
5 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | March/April 2020
Digitalization brings an
array of opportunities
environment for digital business, understand where production
Jolice Pojeta whereby digital information is at
the core.”
issues may occur, leading to
better product quality. “Today, if you go to our facilities around
With several projects that Digitalization at the world’s
In recent years, we’ve heard
a great deal about digitalization
fall under the realm of digitaliza-
tion underway or implemented
largest steel and mining company
is not easy. But if we can
the world, you will see small clusters
or Industry 4.0, which plays a
critical role in ArcelorMittal’s
across the global company, here
in the U.S., efforts have also
understand how to harness
the digitalization opportunities
of people working together in finding
strategic direction. As a company, started to make some traction.
ArcelorMittal is embracing this This is evidenced by the imple-
available to us, we stand to
make a huge leap that will
solutions. To imagine a steel company
fourth revolution and has already mentation of new technologies
made beneficial changes to our and digitalization initiatives
benefit our manufacturing
processes and our customers. of this size, to be addressing these
operations. These changes affect throughout the U.S. that began
how we manage our supply chain, a few years ago and are continu-
“There is no question that
digitalization is going to enable challenges in a start-up style, is quite
optimize our performance and ing in 2020. us to solve problems that in the
more effectively serve our
customers.
The main driver for
digitalization at ArcelorMittal is
past were not solvable,” said
Al Barsophy, chief technology
exciting. This is exciting for existing
Digitalization is defined as
“the use of digital technologies
creating a competitive advantage.
New technologies can help ensure
officer, ArcelorMittal USA. “As
these technologies mature and
employees as well as for new employees.“
and of data (digitized and natively that customers’ product needs we learn where to apply these Aditya Mittal, CFO, ArcelorMittal
digital) to create revenue, improve are met right away. Gathering powerful problem-solving
business, replace/transform large amounts of data and approaches, digitalization will
business processes (not simply harnessing the power of big start contributing significantly
digitize them) and create an data analytics can help us to our USA bottom line.”
Rolling out
awareness
As an initial step in beginning the of digitalization to employees. He believes there are many
awareness process of digitaliza- Such presentations and webinars potential projects available here
tion here in the U.S., a steering were made to create an aware- in the U.S. Coordinators at each
committee has been formed to ness on how key projects can be operating facility and other USA
provide oversight on all digitaliza- implemented within both our departments are developing lists
tion activity across our U.S. operations and even staff areas. of such project opportunities
operations. Jim Hendrickson, “Our approach in the U.S. is within their areas for implementa-
division manager, process we are going to continue to spend tion consideration. Coordinators
automation, ArcelorMittal USA, our resources, whether they be are also recommending projects
Jerry Yothment, general manager, people or money, on projects already completed in their areas
I.T., ArcelorMittal USA, and that are most important to that fall under digitalization and
Barsophy, are members of the our business,” said Hendrickson. that can be replicated in other
USA steering committee and “Our overall objective with the locations.
coordinate much of the initial awareness training was to make Key problem solvers at
employee awareness efforts. key employees aware of the each location, representing a
Hendrickson and Yothment technologies and then begin to cross-section of departments,
are our U.S. representatives as share project examples that have will continue to work on and
part of ArcelorMittal’s Global been successful elsewhere. If solve the most significant issues
Digital Technology Working such projects have already been in their areas. They will communi-
Group. They have spent the proven successful at other global cate possible projects that may
past few years monitoring locations, we can likely have the be candidates for digitalization.
effective digitalization activities same result here in the U.S.” “Once a successful project
at other global segments. In The objective, according has been identified and proven,
recent months, the pair have to Hendrickson, is to look for the idea is to standardize that
spent time at many of our USA projects that are low risk with practice across our U.S. opera-
locations presenting an overview a high probability for success. tions,” noted Hendrickson.
Global R&D playing
an integral role
Our Global R&D Center in East we are embarking on various An ArcelorMittal Integrated
Chicago is playing a vital role in forms of awareness campaigns Global Optimization (AMIGO)
the integration of digitalization. and providing training relevant to system in the U.S optimizes
They are not only working in digital technologies to both R&D the management of materials.
tandem on various projects and ArcelorMittal USA employ- The model was already utilized
with our plant operations, but ees,” said Chukwulebe. “For in some ArcelorMittal European
they are also involved in some example, we provided a hands-on facilities and adapted in the U.S.
of the technical training for our workshop on machine learning for multi-plant consolidated
employees. Some examples of and are planning to provide other scrap purchase optimization. The
specific advanced skills training trainings on digitalization topics implementation of the algorithm
include machine learning, next year.” saved ArcelorMittal $10 million in
artificial intelligence and One example of a significant its first year, based on the prior
advanced data analytics. digitalization project initiative year’s baseline.
Within Global R&D, the underway at ArcelorMittal Many other projects are
digitalization effort focuses Burns Harbor is a Clean Energy either in progress or completed.
A major digitalization initiative underway at ArcelorMittal Burns Harbor is the Clean Energy Smart on three areas: Smart Manufacturing Innovation They include the use of blast
Manufacturing Innovation Institute (CESMII) project for slabs with fewer defects. Global R&D in East - digital laboratory management Institute (CESMII) project furnace above burden I.R. cameras
Chicago, in collaboration with CESMII (a DOE co-sponsored program), several university partners and - digital product development for slabs with fewer defects. (ABirC) in our iron-producing
private businesses, is working with Burns Harbor employees toward improved quality and reliability to - industrial process digitalization Global R&D in East Chicago, in operations; digital control of coil
achieve slabs with fewer defects through the implementation of smart manufacturing technologies in Bernard Chukwulebe, group collaboration with CESMII (a gauge variability at Cleveland
continuous casting. manager, processing and control, DOE co-sponsored program), hot-dip coating lines; auto-detec-
process research, Global R&D, several university partners and tion and classification of reheated
serves as the Global R&D private businesses, is working with slab defects at Burns Harbor
digitalization coordinator and Burns Harbor employees toward and Cleveland roughing stands;
R&D representative to the USA improved quality and reliability to smart EMF for liquid level
digitalization coordinators team. achieve slabs with fewer defects detection at Indiana Harbor
“To rapidly develop a through the implementation of blast furnace; the global product
digital-ready workforce and smart manufacturing technolo- quality system (GPQS) rollout at
digital workplace culture in R&D, gies in continuous casting. Indiana Harbor among others.
3D printing
and the future
While 3D printing is hardly new already use this type of digitaliza- focus on looking at those
technology, it could provide tion technology and there appears possibilities, along with what
significant cost and time-saving to be great potential for its has been proven successful in
benefits for our operations. A application in the steel industry. other locations. One of the great
small team here in the U.S., with “Our objective in the U.S. is benefits of being part of a global
a representative from each of to identify some of the benefits organization is that we can tap
three integrated facilities, will and successes that some locations into that knowledge and share in
examine the possibilities for our had already regarding digitaliza- those resources and successes.”
operations. Imagine being able tion,” added Hendrickson. “There’s
Live display of the liquid level and the hearth hot metal temperature updated every minute by the to print spare parts on demand. a lot of potential in this vast area jolice.pojeta@arcelormittal.com
SmartEMF model. Aerospace industries, for example, called digitalization. We will
6 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | March/April 2020
Do you have a twin? Ours is a real problem solver!
Summer Paris
Imagine you could create a virtual
copy of yourself, a digital “twin”
designed to look and behave
exactly as you do, but it lives on
a computer, not in the real world.
Imagine that you could test
out specific scenarios with the
virtual version of yourself before
deciding to take action in real life.
It might sound like science
fiction, but the process and
controls group at ArcelorMittal’s
research and development (R&D)
center in East Chicago is using the
concept of “digital twinning” to
improve ArcelorMittal’s manufac-
turing processes. The digital
twins that R&D creates are virtual
copies of equipment and systems
and they can simulate an endless
number of “what if” scenarios in
order to make smart choices.
Bill Umlauf, principal scientist,
explained: “Typically, a plant
presents us with a problem. It
could be a process issue or a
challenge related to developing
a new advanced high strength
steel grade. We work with them
to understand the physics of would be costly, time-consuming It’s extremely powerful.” “Nobody gets mad and it
their plant and use that data to or dangerous to test in the “For any problem, our goal doesn’t cost any money if we
create a digital copy, a virtual
twin that is as close to the real
thing as possible.”
physical world are analyzed.
Umlauf compared this process
to using the “what-If” formulas
is always to find and prove the
solution in the digital world first,”
said Dr. Meysam Ghanavati,
break something in a virtual mill.
We are free to test any unconven-
tional ideas,” lead engineer Dr.
Digital twinning
Then simulations of
real-world problems are run with
the digital twin and things that
in Excel, “except we’re doing it
with very large, dynamic models,
not just a simple spreadsheet.
research engineer. “Because
it’s virtual, we can play with it
and consider all the scenarios.”
Johnny Brannbacka elaborated.
There are other benefits,
too, according to lead engineer Dr.
success stories
Oscar Lanzi III: “We can look inside Controlling for quality at tandem mill, gauge deviations
the process as we run simulations, ArcelorMittal Cleveland’s have significantly improved.
almost like the x-ray vision tandem mill
you used to see in old cartoons. When a coil of steel exits the hot Dynamic simulation of
Because of this, we can design strip mill, it might look cool to batch annealing processes
a process from the inside-out.” the naked eye, but it is actually at AM/NS Calvert and
Once a solution is tested still hotter than 1000 degrees Indiana Harbor
and proven in the offline model, Fahrenheit! As the steel cools Once a digital twin has been
the team then works with the down in the open air, the top developed, it can prove useful
plant to deploy the solution in of the coil cools faster than in new and wide-reaching
the actual process. the rest. For specific advanced ways. Many of our facilities
“It’s very collaborative, high strength steel grades, the run batch annealing processes,
and we are fortunate to partner sections that cool more quickly for example, which involves
with such talented and committed at the top get harder than the controlled heating and cooling
colleagues at our plants,” Umlauf sections that cool more slowly. of steel. Dr. Oscar Lanzi III, lead
explained. This causes problems in the engineer with the R&D process
“We can create all the models next part of the cold rolling and controls group, explained
in the world, but they are only process at the tandem mill, how they built a robust offline
really valuable when our partners resulting in “gauge variability” model to simulate the batch
in the plants can directly apply in the steel, a serious quality annealing process:
the solutions in a real manufactur- issue in which the steel coil “The digital twin has been
ing environment. Teamwork does not have a consistent used at the AM/NS Calvert
and human collaboration are just thickness. facility to design annealing
as important to success as the To address this problem, practices for brand new
advanced digital tools we use.” engineers created a digital twin advanced high strength steel
Ghanavati noted, “The of the tandem mill and used it products. Likewise, we have
culture at R&D is to push forward, to test an entirely new method used the model to design
to continuously improve. We are for handling these periodic criteria for complete cooling
always thinking about how we will variations in the steel’s hardness. of annealing bases at our Indiana
R&D’s process and controls group poses before an example of a coil heat map generated by a batch solve future problems.” Because of these new methods Harbor facility and to verify a
anneal simulator they developed. From left to right, Dr. Oscar Lanzi III, Dr. Johnny Brannbacka, Bill Umlauf at ArcelorMittal Cleveland’s vendor’s cooling model.”
and Dr. Meysam Ghanavati. summer.paris@arcelormittal.com
> Innovation
Human innovation and artificial intelligence improve quality
Historically, a few slabs human brain or eliminate the engineer at Cleveland’s hot word these days. But we’ve been department, the system’s data
Summer Paris would be set aside each month importance of human intelligence mill, knows this firsthand. “The working to continuously improve has also been used by Yong Lee
to cool and then be visually and work. But in this project, automated inspection system our product quality and opera- and Kurt Johnson in R&D, as well
inspected by a person trained humans play a vital role. I call it alerts us to an issue and then tional efficiency for a very long as many experts at the plants,
ArcelorMittal USA’s hot strip to look for furnace tears. ‘collective intelligence.’ Collective provides a lot of useful data. time, and this is just another step to deeply study pusher reheating
mills are combining artificial “It was an extremely crude intelligence is more powerful Then it’s our job to decide in that journey.” furnace operations. With Al
intelligence (AI) and human process, very time consuming, than either humans or computer what to do with that data and After the first deployment Barsophy’s CTO leadership,
innovation to supply higher and it was not very effective in systems alone because it how to prepare for necessary of the R2 camera system at project teams continue to
quality steel to customers. helping us evaluate if there was combines the unique attributes maintenance on the furnace.” Indiana Harbor, led in partnership improve the system.
The goal is to use the tools a real problem in the furnace of both,” according to Zhang. Poplawski agreed: with James Chapko and Larry
of digitalization to reduce a with potential to cause serious Rick Schwachenwald, senior “Digitalization is sort of a buzz Gansho from the plant quality summer.paris@arcelormittal.com
specific quality issue, called a defects,” said Tom Poplawski,
furnace tear defect. This defect hot mill operating manager at
is a small tear that is scratched ArcelorMittal Burns Harbor. Hot Strip Mill
into the bottom surface of a steel Today, the automated
slab as it comes out of a hot mill’s system replaces and improves
Reheat
Furnace Scale Water
pusher reheat furnace. A furnace upon this manual process,
Roughing Descale Sprays
tear may start small but can offering numerous advantages, Breaker Sprays
become more serious if it is rolled including freeing up personnel’s Stands
deeper into the steel, entrapping time for more valuable activities.
scale and causing a lamination Here’s how it works: An
that would be unacceptable to infrared camera is programmed
the customer. to “see” furnace tear defects Crop
“We have invented an scans the bottom surface of every Descale Finishing
automated surface inspection slab and to “look” for abnormali-
Shear Stands Coiler
Sprays
system that uses specialized ties. When it detects a defect, it
camera equipment and machine runs through a custom software
learning to detect and classify package developed by Zhang and
furnace tear defects. Using the the project team. The software
power of AI, we can do this in uses a machine-learning algorithm
near real-time, empowering to analyze and classify the defect.
hot mill personnel with the data Then, if warranted, it automati-
they need to respond quickly cally creates an alarm to signal A camera system installed at
and strategically,” explained the mill operator or process the hot strip mill is an important
tool in detecting and catching
Camera
Dr. Liwei Zhang, lead engineer expert to take action.
for processing and control at “People have a lot of fear surface quality issues on a steel
ArcelorMittal’s global center about digitalization and artificial slab after it is pushed out of the
of research and development intelligence. They are afraid that reheat furnace.
(R&D) in East Chicago. computer systems will beat the
7 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | March/April 2020
Cleveland labs innovate to satisfy evolving customer needs
challenging, new products. To parts, adding to vehicle strength of steel, that part has a sheared ArcelorMittal Cleveland took expanded to the customer’s
Summer Paris meet that need, our internal and crash-worthiness while edge that will eventually be extra steps, in partnership with specification.
quality systems are evolving too, removing weight. bolted, riveted or welded to research and development, to “We are better equipped
and ArcelorMittal Cleveland has “The new grades have new something else on the vehicle. invest in and develop a more than ever to support our
As ArcelorMittal invents new embraced a culture of innovation testing requirements in addition The automaker needs to know precise, consistent and automated customers in supplying the
steel solutions for our customers and continuous improvement at to the tests we normally do,” that when the part is connected method using a specially designed quality products they expect.
and the world, the pace of this its quality testing labs. explained Mark Yahraus, process to the vehicle, the edges won’t piece of equipment. A punch The hole expansion tester is
innovation is quickening. Half Late last year, Cleveland’s manager, metallurgical testing. crack. We have introduced a test presses a hole in a steel sample. an obvious example. But it is
of the steel grades that exist hot-dip galvanizing line was So the Cleveland metallurgi- to measure that. It’s called a ‘hole The equipment then slowly only one part of a larger initiative
today hadn’t even been imagined upgraded with state-of-the-art cal lab added new, innovative expansion test,’ and it measures stretches or expands the hole to continuously improve our
a decade ago! In this rapidly technology to enable the testing capacity to meet these how far we can stretch the by pushing a cone-shaped rod lab. We have been steadily
changing environment, it is more production of new multi-phase requirements and to provide edge of the steel before it through it. A precision camera investing in new equipment
important than ever that our advanced high strength steels more and better quality data cracks or fails.” detects the exact moment when and engaging our people in
customers trust us to supply a (AHSS) for automotive applica- to both the internal customer The hole expansion test is the edge of the stretching hole projects to improve safety and
quality product, particularly as tions. These steel grades will be (the HDGL) and the end customer not novel; it’s been used for a cracks to a 0.1 mm width and efficiency,” Yahraus said.
they’re asking us to produce used for critical automotive (automaker). long time in the industry, but stops the test. It then measures
Yahraus explained: “When with a very manual process. the expanded hole diameter and summer.paris@arcelormittal.com
an automaker stamps a part out Here’s where the innovation lies: compares the percentage it
5S method inspires
everyday innovations
Buying fancy, high-tech labs and described the 5S
equipment isn’t the only process: “We always start
way to push innovation. To with housekeeping and the
innovate means to “introduce organization of the space. Since
something new or different,” we began, the raw materials
and the Cleveland quality lab is already cleaner, more
labs are using 5S to come up efficient and more organized,
with low-tech, but impactful, and we will continue to make
innovations. 5S stands for sort, improvements. Operators who
set in order, shine, standardize work in the lab have suggested
and sustain. The Cleveland ideas for safer, more ergonomic
facility operates seven quality workflows, better lighting,
labs. Each year, the division managing noise and more. It
selects one lab to introduce 5S. can be hard to break old habits
“The 5S methodology and old ways of doing things,
helps us continue to drive but this process encourages it.”
improvement and inspires new, According to Storrow,
creative ways of thinking about the critical ingredient is
and approaching our work,” getting everyone engaged
explained Mark Heflin, manager with their ideas and buy-in.
of quality services and delivery Frank Jasterbowski, quality
improvement. specialist, elaborated: “We
This year, they are rolling are all involved and we have
out 5S in the raw materials support to implement new
lab, where quality personnel ideas. Just because something
support the iron-producing was good enough 20 years
division by providing informa- ago doesn’t mean we can’t do
tion about the quality and better today. Maybe the job of
characteristics of iron ore the raw materials lab hasn’t
and other raw materials. changed, but our approach
Clint Storrow oversees to doing it safely and more
the chemical and raw materials efficiently definitely has.”
Mark Yahraus demonstrates the new hole expansion tester at ArcelorMittal Cleveland’s metallurgical testing lab.
> Quality
Smart manufacturing produces slabs with fewer defects
Chicago and lead principal These are due to unplanned model of a real product, process institute roadmap project to operations technology, MEU, hot
Jolice Pojeta investigator of the project. turnarounds and product defects or service that can monitor, utilize various components rolling/finishing, USA operations,
The U.S. Department of or rejects,” adds Bhattacharya. analyze and improve its perfor- of digitalization to impact our USA IT and ArcelorMittal Sistemas
Energy is partially funding the “R&D developed an in-house mance. These components impact bottom line. The company is are involved with the project.
ArcelorMittal Burns Harbor is project through a newly estab- predictive maintenance tool called the bottom line of our business. working with three academic Other downstream departments
implementing smart manufactur- lished institute called the Clean the caster health monitor. Using Most importantly, Bhattacharya partners: Rensselaer Polytechnic will be included later in the
ing (SM) methodologies aimed Energy Smart Manufacturing this tool across multiple locations says the project enables data as Institute, Missouri University project for integrating quality
at producing fewer defects in Innovation Institute (CESMII). could result in significant cost the key manufacturing asset, by of Science and Technology and and defect feedback data with
continuous cast slabs. Its focus is on digitalization/ savings using a smart manufac- utilizing manufacturing data in a Purdue University Northwest. the casting process.
“This initiative targets Industry 4.0 (or smart manufac- turing platform.” new way, such as using artificial “This is not just an umbrella “Burns Harbor steel
improving steel slab quality and turing) via smart sensors, The project utilizes intelligence, to solve previously project with a set of tangible producing generates and collects
continuous casting productivity. modeling and simulations, several critical components of unsolvable problems. deliverables, this is also a a wealth of data,” adds Alex
The project addresses both yield and digital process control. digitalization, such as big-data The initial phase of the movement within the Burns Samardzich, manager, operations
and uptime – the top two KPIs of “The absence of predictive analytics, IIoT (Industrial Internet project will use the system Harbor facility – a movement technology, steel producing,
the continuous casting process,” maintenance and real-time quality of Things), artificial intelligence (caster health monitor) developed where the key deliverable is ArcelorMittal Burns Harbor.
says Dr. Tathagata Bhattacharya, prediction tools increases the (AI), augmented reality and by R&D and expand/improve centered around our people, “The opportunity that CESMII
lead researcher, process research, overall energy intensity and costs virtual reality (AR/VR), and digital the capabilities by integrating our culture and how we can will provide is pooling all the
ArcelorMittal Global R&D - East of the steelmaking process. twinning. A digital twin is a virtual new advanced sensors and big equip our workforce with the data, along with telemetry that
data analytics to include other knowledge and skills required is currently generated but not
aspects of the casting process for Industry 4.0,” added collected, into one platform for
such as slab quality. Bhattacharya. “Participation in-depth analysis. The CESMII
“Enabling the frictionless of academic partners will also team will use big data science to
movement of information by ensure a future pipeline of improve quality, productivity and
breaking data silos and integrating SM-savvy talent pool that are develop more robust preventative
operations technology (OT) and prepared to enter the workforce maintenance programs. Globally,
information technology (IT) is the as highly-skilled professionals ArcelorMittal has proven the
top digitalization challenge that who are ready to innovate.” effectiveness of digitization and
this project addresses,” according In addition to Global R&D big data. We will do the same at
to Bhattacharya. and the external partners, Burns Harbor.”
ArcelorMittal is the only steel teams from Burns Harbor steel
company that is leading an producing, process automation, jolice.pojeta@arcelormittal.com
ArcelorMittal Columbus uses coil
grading system to aid product quality
Inspectors at ArcelorMittal the defect’s pictures and limited to grade the coil.
Columbus use two systems past input information. This system intends
to interact digitally with our The solution was a coil to eliminate surface rules
products: computers and grading system through a subjectivity, addressing with
cameras. partnership with QuinLogic precise calculation of the
Process control computers SMS Group. An online tool percentage of the surface
show sales order information provides critical information to affected by each defect.
on production coils. They allow inspectors with well-defined For each end-use, there are
inspectors to input data – business rules. Inspectors can different thresholds, making coil
such as thickness, width, defect now see important customer holds more aligned with our
codes and comments. A camera information in a more efficient business practices.
system shows a defect map, layout. Coil surface defect
but inspectors could only see quality rules enable inspectors
CESMII project flow graphic
8 1 Company 1 Community 1 Magazine 1 | ArcelorMittal USA | March/April 2020
Navy’s USS St. Louis ready for duty, made with our steel!
The next U.S. Navy littoral combat ship – the USS St. Louis (LCS 19) – recently completed the necessary
acceptance trials in preparation for its upcoming commissioning.
supplies to the military and highest priority and one that
Jolice Pojeta customers, including Marinette we strive to continue for many
Marine, are used to produce a years to come.”
variety of vessels. With its motto, “Gateway
ArcelorMittal Burns Harbor and “Shipbuilding is a long, to Freedom,” the USS St. Louis
ArcelorMittal Conshohocken complex process and Marinette will have a core crew of 50 but
provided shipbuilding and Marine expects their suppliers to: could handle about 100. It will
military-grade plate products have material made and delivered have a top speed of 45 knots,
for the production of the ship. on-time to meet production which equates to about 52
The vessel is a Freedom- schedules; provide material that miles-per-hour. The ship will be
variant LCS, constructed by meets or exceeds all NAVSEA able to operate in water of about
Lockheed Martin, Bethesda, Technical Publication require- 15 feet deep. Non-LCS Navy ships
Maryland, and shipbuilder ments and provide excellent usually have to operate in at least
Fincantieri Marinette Marine, gauge control,” adds Ken Wilson, 20 or 30 feet.
Marinette, Wisconsin. These account manager, plate, sales and The future USS St. Louis (LCS
Freedom ships specialize in marketing, ArcelorMittal USA. 19), the seventh military vessel
antisubmarine, surface and “These are not just pieces to bear the name St. Louis, com-
mine countermeasure missions. of steel welded together,” notes pleted acceptance trials in Lake
The littoral zone is the part of Chappell. “In many cases, this is Michigan last December. Now
a sea, lake or river that is close the first and only line of protec- that trials are complete, the ship
to the shore. tion for our military men and will undergo final outfitting and
“ArcelorMittal supplies a women. When we send our fine-tuning before delivery to the
highly specialized product used products to our customers, U.S. Navy after its commissioning,
to construct surface ships for we are confident in the quality planned for the spring of 2020.
the U.S. Navy that are used by and would be willing to put our Following delivery and
servicemen and women around families onboard, knowing they commissioning, LCS 19 will
the world to defend our great will be protected by our armor.” sail to Florida to be homeported
nation, our allies and interests Marinette Marine has in Mayport with sister ships
around the globe,” says Cory been a longstanding customer of USS Milwaukee (LCS 5), USS
Chappell, operations manager, ArcelorMittal and its predecessor Detroit (LCS 7), USS Little Rock
Eastern Plate, ArcelorMittal USA. companies. (LCS 9), USS Sioux City (LCS 11),
“Our employees can feel proud “We’ve worked together for USS Wichita (LCS 13), USS Billings
knowing that our specialty plate many years to supply world-class (LCS 15) and USS Indianapolis
The USS St. Louis (LCS 19) is the latest littoral combat ship built with ArcelorMittal plate by Lockheed products play a critical role in products to the greatest navy in (LCS 17).
Martin and ArcelorMittal customer Fincantieri Marinette Marine. The ship recently completed its contributing to the defense of the world,” adds Chappell. “We
acceptance trials in Lake Michigan and is expected to be commissioned and become part of the democracy around the world.” value this relationship with the jolice.pojeta@arcelormittal.com
U.S. Navy fleet this spring. The products ArcelorMittal
> This is us
Lucas Oil Stadium built with ArcelorMittal steel
Lucas Oil Stadium in Indianapolis is not
only the home of the Indianapolis Colts
football team, it’s also a source of pride
for ArcelorMittal. The stadium was
built with about 16,000 tons of our
steel at a total cost of $720 million!
The state-of-the-art facility
opened in time for the 2008 football
season. It has seating for 67,000
cheering fans and a retractable roof
to accommodate any changes in
weather conditions. It has been
the site of the Big Ten Football
Championship Game since 2011,
as well as Super Bowl XLIV and the
NCAA Men’s Final Four Basketball
Championships in 2010 and 2015.
The stadium also hosts concerts,
conventions, trade shows and other
amateur sporting events. It’s seven
levels cover some 1.8 million square
feet and welcome nearly one million
visitors each year. Lucas Oil Stadium, home of the Indianapolis Colts football team and the Big Ten Football Championship, was built with ArcelorMittal steel.
> Our steel in sports
The home team would
be nowhere without us!
Did you know that ArcelorMittal supplies steel
to major NFL stadiums? You can cheer for your
team while seeing how the steel our team makes
at the stadiums of these teams: Los Angeles Rams,
Los Angeles Chargers, Houston Texans, Dallas
Cowboys, Indianapolis Colts, Arizona Cardinals,
Minnesota Vikings & Atlanta Falcons!
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