October 2015 - Water Market Insights 167

Why international suppliers should focus on the top 200 prospects (Arcelor Mittal example)

Many companies recognize the importance of large customers and have assigned personnel and resources to them. By providing precise forecasting and organized information on large customers, this major opportunity can be maximized. McIlvaine achieves this with the Detailed Forecasting, Large Project Tracking Program. The important parameters are:

· International suppliers have the best opportunity selling to large international customers.

· Large customer are willing to pay higher prices for higher quality equipment and services and are willing to expend the effort to make a total cost of ownership evaluation.

· Precise forecasting by product, company and project coupled with timely information will provide the supplier with the tools he needs.

Arcelor Mittal is one of the top 200 flow control and treatment purchasers. Arcelor Mittal produces 98 million tons of steel per year at 194 sites. It produces twice as much as the nearest competitor or 6 percent of the 1.6 billion tons of steel produced last year. It is also one the largest mining companies with both iron ore and coal mining capacity. The company has production sites around the globe making it one of the top 200 purchasers of flow control and treatment equipment. Last year it purchased 1.3 percent of the fabric filters and bags. It is a major valve purchaser with some plants operating more than 50,000 valves.

The company has adopted a global procurement program based on total cost of ownership. This program launched in 2007 places emphasis on life cycle cost and not initial price. It seeks long term relationships pooling knowledge and deploying specialized technical knowledge. This means that companies with better products have the opportunity to charge the prices commensurate with product value. They also have an opportunity to provide global service to help ensure the lowest cost of ownership.

Air programs: The company is focused on reduction of dust, NO_x and SO₂. The capital investment in steel plant air pollution control projects in 2014 was $180 million. Dust emissions were 621 grams per ton of steel produced which is down 24% percent of the 2010 level. NO_x emissions fell 4 percent in 2014 to 1.1 kg/ton of steel and SO_x emissions decreased 3 percent.

Dust emissions from mining operations fell 6 percent to 5.3 million tons in 2014 while NO_x fell 3 percent and SO_x 26 percent (mainly due to a fuel change).

In 2014 ArcelorMittal R&D division worked on 13 air emission projects to improve dedusting systems and also processes.

Water Programs: The steel plants use large quantities of water for cooling and are located adjacent to lakes or rivers. Of 134 steel sites, 20 are located in regions which are experiencing water stress or scarcity. As a result, the Global R&D group is focused on water reuse and zero liquid discharge. The water treatment laboratory in Asturias, Spain is investigating green technologies to minimize pollutants.

Water at the mines needs to be treated before discharge. Water is also used for dust suppression, transporting tailings and concentrating ores. Some mines such as El Volcan in Mexico use special thickeners to avoid the use of tailing ponds.

The Indiana Harbor Works has installed a zero liquid discharge system (ZLD). The Newcastle, S.A. site has just commissioned a $40 million facility to treat wastewater. ZLD is already being accomplished at Saldanha and Vanderbijlpark. Two mine water treatment plants are in design and construction in Kazakhstan. A major water reduction program has been underway in Romania.

Several McIlvaine project tracking systems cover the large ArcelorMittal projects around the world.

Location	Timing	Project Description
Aviles/Gijon Spain	2016-2019	Reconstruction of two of 45 coke oven batteries with collection and scrubbing system.
Ghent, Belgium	2016-2017	$100 million bio ethanol plant using CO gas from steel with eventual capacity of 47,000 tons of ethanol/yr.
Germany	2016	Minor projects in Bremen, Duisburg, Brandenburg and Hamburg including galvanizing lines and new pre heat furnace.
Bosnia -Herzegovina	2015- 2016	New dust filters for BOF furnace with mid 2016 completion date. New filters for sinter plant are already installed. Sinter machine #4 precip internals also replaced.
Calvert Alabama	2015- 2016	$6.7 million for coating line with pumps and $40 million for slab yard expansion.
Ostrava Czech Republic	2014-2016	Valmet is supplying new CFB coal-fired boiler to replace old existing coal-fired boilers. Fabric filters will be used for dust capture.
Ostrava Czech Republic	2014-2016	ZVVZ-Enven Engineering is supplying $25 million DeSO_x project and CKD Phraha is supplying a $50 million DeNO_x system.
Hunan Valin China	2014-2017	New $832 million automotive steel plant.
Acindor Argentina	2013- 2017	400,000 ton/yr. rolling mill was initiated in 2013 with expectation of a two year completion date. Five other production lines at the site produce 1.7 million tons/yr.
Dunkirk France	2013-2015	New $110 million revamp of blast furnace #2 to be completed this year.

There are links to air and water permits with considerable detail on each emitting source:

· Arcelor Monessen coke plant Air permit from 2014-2019 covering coke oven pushing and quenching the desulfurization plant, the coke pushing baghouse and benzene NESHAPS control system but an environmental group PennEnvironment is suing the plant for emitting excess soot, acidic gases and noxious odors since the decades-old facility went back into operation in April 2004.

· Minorca Mine Virginia City Minnesota air permit with requirements for fabric filters and scrubbers used in the concentrating and pelletizing of 9 million tons/yr. of taconite ore to manufacture 3 million tons/yr. of pellets.

· Weirton West Virginia 3 small oil- and gas-fired boilers air permit expires in 2016. A 2012 Title V permit expiring in 2017 covers the reheat furnaces, hot strip mill pickling lines and HCl regeneration. An NPDES permit on the water side covers 18 mgd of cooling water discharge and 9 mgd of treated wastewater.

· Dofasco Ontario facility paid $390,000 penalty in 2014 for excess blast furnace emissions.

· ArcelorMittal Steel USA, Inc. - IN Harbor East, Permit No. IN0000094 - RENEWAL covers iron & steel, rolling mill operations and finishing operations with additional support operations: power generation, wastewater treatment with discharge to the turning base and ship canal. Several storm water outfalls which have the potential to discharge to these waters are also covered by this permit.

Pumps: Hydro descaling pumps are used at the Indiana plant. Weir received an order for $2.8 million for Warman slurry pumps for tailings transfer at Krivoy, Ukraine.

Sedimentation/Centrifugation: Dawco installed a 43m diameter thickener, a 25m diameter water tank, a pump house building and a piperack that connects to the concentrator sector of the Mount Wright Iron Mining Complex in Fermont, Québec.

Monitoring: CiDRA SONARtrac® Process Monitoring Technology is used for product transfer measurement on a 27 km hydrotransport slurry pipeline in Mexico that runs from nearby mines to steel plant in Lázaro Cárdenas City, Michoacán. A high pressure pump injects the slurry into the steel pipeline for the 27 km transit to the pelletizer plant.

Valves: ArcelorMittal Tubarão (formerly CST-Arcelor) Brazil, had Life Cycle contracts with Metso for all automated control, manual and safety valves throughout the ArcelorMittal Tubarão’s plant in Serra City. The total is almost 40,000 valves and included over 700 control valves.

In 2015, ArcelorMittal Tubarão, awarded SGS a four-year contract for the maintenance of security and control valves. A specialist team of 30 experts will detect the type of maintenance required for each valve. Valves will then be removed, opened, serviced and reinstalled. If major repairs are required, the valve will be taken to the dedicated SGS workshop in the city of Serra.

McIlvaine webinars offer the opportunity to view the latest presentations and join discussions while sitting at your desk. Hot Topic Hours cater to the end users as well as suppliers while the Market Updates cater to the suppliers and investors. Since McIlvaine records and provides streaming media access to these webinars there is a treasure trove of value only a click away. McIlvaine webinars are free to certain McIlvaine service subscribers. There is a charge for others. Hot Topic Hours are free to owner/operators. Sponsored webinars provide insights to particular products and services. They are free. Recordings can be immediately viewed from the list provided below.

DATE	UPCOMING HOT TOPIC HOUR	UPCOMING MARKET UPDATES
October 22, 2015	Precipitator Improvements Decision guide to dry, hybrid and wet electrostatic precipitators for solid fuel combustion, refining and other industries. Focus will be on improvements to the electricals and components. Click here to register
November 12, 2015	Dry Scrubbing Expansion of the dry scrubber decision guide for power plants, incinerators, and other applications involving SDA, CFB and DSI. Click here to register
December 3, 2015	NO_x Reduction Decision guide to selection of SCR and SCR systems, ammonia injection, reagents, catalysts for power plants refineries, incinerators, chemical plants and other applications. Click here to register