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Primetals Technologies

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Primetals Technologies Limited
TypeLimited Company
IndustryMetallurgy
Founded2015, is a joint venture of Mitsubishi Heavy Industries and partners
HeadquartersLondon, UK
Key people
  • Satoru Iijima, Chief Executive Officer[1]
  • Yoshiharu Ikeda, Chief Financial Officer
  • Etsuro Hirai, Chief Technology Officer
  • Kentaro Hosomi, Non-Executive Board Member
ProductsMetallurgy and Rolling mill technology
Number of employees
Approx. 7,000
Websiteprimetals.com

Primetals Technologies Limited, is an engineering and plant construction company headquartered in London, United Kingdom, with numerous locations worldwide. It serves clients in the metals industry, both the ferrous and the nonferrous metals sector.[2][3]  It was established as a joint venture between Siemens VAI Metals Technologies and Mitsubishi-Hitachi Metals Machinery in 2015. As of 2020, Primetals Technologies is a joint venture of Mitsubishi Heavy Industries and partners.

Overview

Operations

Primetals Technologies operates as a full liner, i.e., a comprehensive supplier for the metals industry. Their portfolio covers all aspects of the iron and steel production process and includes several nonferrous metals technologies. These processes include but are not limited to beneficiation, direct reduction, oxygen steelmaking, electric steelmaking, continuous casting, hot and cold rolling, and processing. They are also active in the digitalization of various aspects of the metals industry, including improvements in automation technologies, increasing the use of artificial intelligence, and increasing the use of robotics to improve the safety of iron and steel works.

Green Steel at Primetals Technologies

As of May 2022, the formation of a new global task force titled "Green Steel" was announced to combine the competencies in the metals industry with cross-industrial competencies of the larger Mitsubishi Heavy Industries Group.[4] Recognizing the severity of the global climate crisis, the steel industry at large has been recognized as a major contributor of carbon emissions into the atmosphere producing eight percent of global CO2 emissions in 2020.[5] With several environmental technologies in their portfolio, Primetals Technologies is at work to help reduce the carbon footprint of the metals industry.

Discover more about Overview related topics

Beneficiation

Beneficiation

In the mining industry or extractive metallurgy, beneficiation is any process that improves (benefits) the economic value of the ore by removing the gangue minerals, which results in a higher grade product and a waste stream (tailings). There are many different types of beneficiation, with each step furthering the concentration of the original ore.

Direct reduced iron

Direct reduced iron

Direct reduced iron (DRI), also called sponge iron, is produced from the direct reduction of iron ore into iron by a reducing gas or elemental carbon produced from natural gas or coal. Many ores are suitable for direct reduction.

Basic oxygen steelmaking

Basic oxygen steelmaking

Basic oxygen steelmaking, also known as Linz-Donawitz steelmaking or the oxygen converter process is a method of primary steelmaking in which carbon-rich molten pig iron is made into steel. Blowing oxygen through molten pig iron lowers the carbon content of the alloy and changes it into low-carbon steel. The process is known as basic because fluxes of burnt lime or dolomite, which are chemical bases, are added to promote the removal of impurities and protect the lining of the converter.

Electric arc furnace

Electric arc furnace

An electric arc furnace (EAF) is a furnace that heats material by means of an electric arc.

Continuous casting

Continuous casting

Continuous casting, also called strand casting, is the process whereby molten metal is solidified into a "semifinished" billet, bloom, or slab for subsequent rolling in the finishing mills. Prior to the introduction of continuous casting in the 1950s, steel was poured into stationary molds to form ingots. Since then, "continuous casting" has evolved to achieve improved yield, quality, productivity and cost efficiency. It allows lower-cost production of metal sections with better quality, due to the inherently lower costs of continuous, standardised production of a product, as well as providing increased control over the process through automation. This process is used most frequently to cast steel. Aluminium and copper are also continuously cast.

Pickling (metal)

Pickling (metal)

Pickling is a metal surface treatment used to remove impurities, such as stains, inorganic contaminants, and rust or scale from ferrous metals, copper, precious metals and aluminum alloys. A solution called pickle liquor, which usually contains acid, is used to remove the surface impurities. It is commonly used to descale or clean steel in various steelmaking processes.

Automation

Automation

Automation describes a wide range of technologies that reduce human intervention in processes, namely by predetermining decision criteria, subprocess relationships, and related actions, as well as embodying those predeterminations in machines. Automation has been achieved by various means including mechanical, hydraulic, pneumatic, electrical, electronic devices, and computers, usually in combination. Complicated systems, such as modern factories, airplanes, and ships typically use combinations of all of these techniques. The benefit of automation includes labor savings, reducing waste, savings in electricity costs, savings in material costs, and improvements to quality, accuracy, and precision.

Artificial intelligence in industry

Artificial intelligence in industry

Industrial artificial intelligence, or industrial AI, usually refers to the application of artificial intelligence to industry. Unlike general artificial intelligence which is a frontier research discipline to build computerized systems that perform tasks requiring human intelligence, industrial AI is more concerned with the application of such technologies to address industrial pain-points for customer value creation, productivity improvement, cost reduction, site optimization, predictive analysis and insight discovery. Although in a dystopian vision of AI applications, intelligent machines may take away jobs of humans and cause social and ethical issues, industry in general holds a more positive view of AI and sees this transformation of economy unstoppable and expects huge business opportunities in this process.

Mitsubishi Heavy Industries

Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd. is a Japanese multinational engineering, electrical equipment and electronics corporation headquartered in Tokyo, Japan. MHI is one of the core companies of the Mitsubishi Group and its automobile division is the predecessor of Mitsubishi Motors.

Climate change

Climate change

In common usage, climate change describes global warming—the ongoing increase in global average temperature—and its effects on Earth's climate system. Climate change in a broader sense also includes previous long-term changes to Earth's climate. The current rise in global average temperature is more rapid than previous changes, and is primarily caused by humans burning fossil fuels. Fossil fuel use, deforestation, and some agricultural and industrial practices increase greenhouse gases, notably carbon dioxide and methane. Greenhouse gases absorb some of the heat that the Earth radiates after it warms from sunlight. Larger amounts of these gases trap more heat in Earth's lower atmosphere, causing global warming.

Greenhouse gas emissions

Greenhouse gas emissions

Greenhouse gas emissions from human activities strengthen the greenhouse effect, contributing to climate change. Most is carbon dioxide from burning fossil fuels: coal, oil, and natural gas. The largest emitters include coal in China and large oil and gas companies, many state-owned by OPEC and Russia. Human-caused emissions have increased atmospheric carbon dioxide by about 50% over pre-industrial levels. The growing levels of emissions have varied, but it was consistent among all greenhouse gases (GHG). Emissions in the 2010s averaged 56 billion tons a year, higher than ever before.

Carbon dioxide

Carbon dioxide

Carbon dioxide is a chemical compound made up of molecules that each have one carbon atom covalently double bonded to two oxygen atoms. It is found in the gas state at room temperature.

History

Mitsubishi Hitachi Metals Machinery

In May 2000, Mitsubishi Heavy Industries and Hitachi announced the establishment of a broad-based partnership in metals rolling mills.[6] In October 2000, a joint venture company, MHI-Hitachi Metals Machinery, Inc. was established to handle sales and related engineering activities of metal rolling mills and downstream facilities.[7] In 2002, the name was changed to Mitsubishi-Hitachi Metals Machinery, Inc.[8] In 2004, Mitsubishi-Hitachi Metals Machinery, Inc. U.S.A. was established.

  • 2006 – Acquisition of New Gencoat, Inc., U.S.A
  • 2006 – MHMM receives contract for supply of pickling line-tandem cold mill from Shougang Jingtang Inc., China
  • 2007 – Mitsubishi-Hitachi Metals Machinery, Inc., China established
  • 2010 – Start-up of endless billet-welding and rolling mill at POSCO, South Korea
  • 2010 – Founding of Mitsubishi-Hitachi Metals Machinery South Asia Private Ltd.
  • 2012 – Start-up of No. 2 Hot-Rolling Mill at Usiminas Cubatão, Brazil
  • 2013 – Integration of IHI Metaltech rolling mill business[9]
  • 2013 – Mitsubishi-Hitachi Metals Machinery acquires shares in Concast Ltd., India[10]
  • 2013 – Acquisition of majority shares of Hasegawa Gear Works, Ltd.[11]

Siemens VAI Metals Technologies

1938–1955

VAI, whose parent company was VA Technologie AG,[12] began as the plant building operation of Vereinigte Österreichische Eisen und Stahlwerke (VÖEST) but became a separate operation in 1956.[13] In 1938, the American company H.A. Brassert & Co. began the designs for the Reichswerke in Linz before withdrawing in 1939.[14]

At the end of WWII, Austria was occupied by the allied forces, and due to the air raids during the war, all industrial assets were severely damaged.[15] In July 1945, the "Alpine Montan AG Hermann Göring" plant was renamed to "Vereinigte Österreichische Eisen- und Stahlwerke" (VÖEST[16][17]) (United Austrian Iron and Steel Plants) and separated from the Alpine Montan AG.[18] In 1946, the plant was returned to the newly founded Republic of Austria in July 1946 as part of what would become the ÖIAG (Austrian Industries AG).[19][20] For the plant’s reconstruction, Voestalpine used funding from the Marshall Plan.[15] In 1947 the first blast furnace, a Siemens-Martin open hearth furnace, and first coke ovens started production.[20] In 1948, with the launch of the “Iron and Steel Plan,” which allocated the production of flat steel to Linz and the production of long products to Donawitz.[15] This included the production of finished products in a heavy-plat mill and the construction of a new slab and hot-strip mill in Linz.[15]

However, with production based on the open-hearth furnace, the future of flat production in Linz would be too expensive.[15] Therefore, a new manufacturing process, i.e., what would become the Linz-Donawitz-process, began development in 1949 and the patent was applied for in 1950.[21][22] After construction, two LD-Converters were commissioned, one in 1952[23] in Linz, and the other in 1953 in Donawitz.

1956–1973

Voest-Alpine Industrieanlagenbau began as a division of VÖEST in 1956.[24][25]

With the invention of the LD-process and experiences gained from the complete reconstruction after the war, VÖEST, partnered with the Fried. Krupp company in Essen, Germany, began the construction of the first LD steelmaking plant outside Austria in Rourkela, India, in 1958.[26]  In 1960, the management of Wiener Brückenbau und Eisenkonstruktions AG (WBB), later renamed Voest-Alpine Hebetechnik- und Brückenbau AG, is transfered to VÖEST.[27] VÖEST continued to expand worldwide and expanded their network of customers to amount to 274 business relationships in 87 countries by 1968.[27] In 1973, the two nationalized iron and steel industries VÖEST and Österreichisch-Alpine Montangesellschaft (Alpine) merged and became Vöest-Alpine AG.[28]

1974–1994

When the oil crisis started in 1974, the metallurgical industry was severely affected in all parts of the world (see also, "steel crisis"). In Austria, this coincided with the creation of Vöest-Alpine AG and between 1974 and 1976 several other companies joined the group, including Gebrüder Böhler & Co AG, Schoeller-Bleckmann Stahlwerke AG, and Steirische Gußstahlwerke AG, making up the "Vereinigte Edelstahlwerke AG (VEW).[27] While the merger of these companies strengthened the position of Vöest-Alpine AG, the impact of the steel crisis led the company to refocus its efforts. In 1977, the group was divided into four divisions: steelworks, processing, finished goods, and industrial plant engineering.[27] In 1978, industrial plant engineering was also under the direct control of the management board.[27]

In the late 1970s, VOEST-ALPINE AG, as VAI, began developing the "COREX process" with Korf Engineering Gmbh, originally known as the "KR method."[29] In 1985 the crisis came to a head, and VOEST-ALPINE declared bankruptcy.[27] In fall of 1986, the "Concept for a New VOEST-ALPINE" was introduced along with the establishment of the Österreichische Industrieholding Aktiengesellschaft (ÖIAG).[27]

Finally, in 1988, the Austrian government decided to partially privatize the ÖIAG, forming Voest-Alpine Stahl AG (VA Stahl), while placing Voest-Alpine Industrieanlagenbau (VAI, also VAI-BAU) under Maschinen- und Anlagenbauholding AG.[20][27][30]

1995–2014

In 1993, after a restructuring of the ÖIAG group, VA Technologie AG (VA Tech) emerged and became the parent company to VAI.[31][32] By 1995, VAI operated in 45 countries and had 2000 engineers, with revenue of $841 million.[33]

In 1995, VAI bought its first shares of Fuchs Systems Inc. (Fuchs Systemtechnik GmbH), a German-based manufacturer of electric arc furnaces  and other equipment for manufacturing steel, with plants in Mexico and Salisbury, North Carolina.[33][34][35] The Salisbury plant had 230 employees in 1997.[36]  

As of 1997, ÖIAG owned 24% and Voest-Alpine Stahl owned 19.05% of the stock in VAI's parent VATech.[13][32][37] In September 1999, VAI completed its acquisition of the Norwegian-owned Kvaerner A.S.A. metals equipment group, including operations in France, Spain, Italy, Germany, China, India and Great Britain.[38] VAI subsidiary Voest-Alpine Industries Inc.[39] had its American headquarters in Pittsburgh, Pennsylvania.[37] In 1999, Voest-Alpine Industries, part of VA Tech North America, moved all its Pittsburgh operations to Southpointe in Washington County. At the time, the company had just taken over Kværner A.S.A.'s metals equipment group. Voest-Alpine Industries also operated in Eastlake, Ohio and Benton Harbor, Michigan.[38][40] The metals automation division of Voest-Alpine Industries relocated from Eastlake to Southpointe in 2002.[41]

As of 1999, Voest-Alpine Industries owned 49 percent of Fuchs. Although the company laid off 59 employees in Salisbury, Fuchs was "the market leader", and the parent companies intended to keep Fuchs in business.[34] The layoffs resulted from an economic crisis in Asia, as well as lower demand for American steel resulting from the low import prices. However, the Asian market was returning by 1999, and Europe and South America were also possible new markets.[42] In 2001, Voest-Alpine Industrieanlagenbau bought the rest of Fuchs Systems, which became VAI Fuchs and added VAI Technometal.[23] In May 2001, however, Fuchs closed the Salisbury plant, its only American facility, because half the customers were bankrupt or close to it.[36] AlloyWorks bought three of the buildings, and the fourth became a medical office.[43] Also, in 2001, the steel industry worldwide experienced a downturn due to lower prices, though continuous casting (for which VAI was the world's top company) continued its positive results, especially in China. VAI reduced its six business areas to four: Iron & Steelmaking (the largest); Rolling & Processing; Automation, and Metallurgical Services.[23]

Also in 2001, VAI's continuous casting operation added a casting and rolling mill for ultra-wide medium thickness slabs for IPSCO Steel in Mobile, Alabama,[23] with what were believed to be the world's largest one-piece cast mill housings at 350 tons.[44] The automation business completed a quality control project along with Voest-Alpine Stahl.[23]

In 2003, VAI subsidiary Voest-Alpine Services & Technologies Corp. became majority owner of Steel Related Technology of Blytheville, Arkansas.[45]

After the Siemens purchase of VA Technologie AG completed in July 2005, VAI became Siemens VAI, a part of the Siemens Industrial Solutions and Services Group.[12][46][47] Siemens VAI was later named Siemens VAI Metals Technologies GmbH & Co.[48] and also referred to as VAI Group, which was created from VAI and Siemens electrical engineering and automation businesses.[49][50][51] Siemens Group Industrial Solutions and Services also included Voest-Alpine Services and Technologies (VAST). Both Siemens units operated from the Pittsburgh area.[52] VAST provided mill maintenance services to steel and aluminum manufacturers from eleven locations: Baltimore, Maryland; North East, Maryland; New London, Ohio; Milan, Ohio; Benton Harbor, Michigan; Bethel Park, Pennsylvania; Blytheville, Arkansas; Charleston, South Carolina; Decatur, Alabama; and Erie, Pennsylvania in the United States and Sault Ste. Marie, Ontario in Canada.[53]

Primetals Technologies

2015 - Present

Creation of Primetals Technologies was announced in 2014.[54] Mitsubishi acquired 51% of Siemens VAI.[55][56] Primetals Technologies became operational in January 2015.[57] In 2019, Primetals Technologies together with Mitsubishi Heavy Industries acquired ABP Induction Systems.[58]

On September 30, 2019, Mitsubishi Heavy Industries and Siemens AG reached the agreement that MHI will acquire Siemens’ 49 percent stake in Primetals Technologies. The transaction was completed at the end of January 2020.[59]

In Spring 2021, the international private equity investor Mutares completed the acquisition of Primetals Technologies France from Primetals Technologies, Ltd., subsequently changing the name to Clecim France.[60]

In Fall 2021, Primetals Technologies, Ltd. transferred its shares of Primetals Technologies Italy to Calista Private Equity, a financial investment company located in Munich, Germany.[61]

Discover more about History related topics

Mitsubishi Heavy Industries

Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd. is a Japanese multinational engineering, electrical equipment and electronics corporation headquartered in Tokyo, Japan. MHI is one of the core companies of the Mitsubishi Group and its automobile division is the predecessor of Mitsubishi Motors.

Hitachi

Hitachi

Hitachi, Ltd. is a Japanese multinational conglomerate corporation headquartered in Chiyoda, Tokyo, Japan. It is the parent company of the Hitachi Group and had formed part of the Nissan zaibatsu and later DKB Group and Fuyo Group of companies before DKB and Fuji Bank merged into the Mizuho Financial Group. As of 2020, Hitachi conducts business ranging from IT, including AI, the Internet of Things, and big data, to infrastructure.

POSCO

POSCO

POSCO is a South Korean steel-making company headquartered in Pohang, South Korea. It had an output of 42,000,000 metric tons of crude steel in 2015, making it the world's fourth-largest steelmaker by this measure. In 2010, it was the world's largest steel manufacturing company by market value. Also, in 2012, it was named as the world's 146th-largest corporation by the Fortune Global 500.

Open hearth furnace

Open hearth furnace

An open-hearth furnace or open hearth furnace is any of several kinds of industrial furnace in which excess carbon and other impurities are burnt out of pig iron to produce steel. Because steel is difficult to manufacture owing to its high melting point, normal fuels and furnaces were insufficient for mass production of steel, and the open-hearth type of furnace was one of several technologies developed in the nineteenth century to overcome this difficulty. Compared with the Bessemer process, which it displaced, its main advantages were that it did not expose the steel to excessive nitrogen, was easier to control, and permitted the melting and refining of large amounts of scrap iron and steel.

Basic oxygen steelmaking

Basic oxygen steelmaking

Basic oxygen steelmaking, also known as Linz-Donawitz steelmaking or the oxygen converter process is a method of primary steelmaking in which carbon-rich molten pig iron is made into steel. Blowing oxygen through molten pig iron lowers the carbon content of the alloy and changes it into low-carbon steel. The process is known as basic because fluxes of burnt lime or dolomite, which are chemical bases, are added to promote the removal of impurities and protect the lining of the converter.

Krupp

Krupp

The Krupp family, a prominent 400-year-old German dynasty from Essen, is notable for its production of steel, artillery, ammunition and other armaments. The family business, known as Friedrich Krupp AG, was the largest company in Europe at the beginning of the 20th century, and was the premier weapons manufacturer for Germany in both world wars. Starting from the Thirty Years' War until the end of the Second World War, it produced battleships, U-boats, tanks, howitzers, guns, utilities, and hundreds of other commodities.

1973 oil crisis

1973 oil crisis

The 1973 oil crisis or first oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries (OAPEC), led by Saudi Arabia, proclaimed an oil embargo. The embargo was targeted at nations that had supported Israel during the Yom Kippur War. The initial nations targeted were Canada, Japan, the Netherlands, the United Kingdom and the United States, though the embargo also later extended to Portugal, Rhodesia and South Africa. By the end of the embargo in March 1974, the price of oil had risen nearly 300%, from US$3 per barrel ($19/m3) to nearly $12 per barrel ($75/m3) globally; US prices were significantly higher. The embargo caused an oil crisis, or "shock", with many short- and long-term effects on global politics and the global economy. It was later called the "first oil shock", followed by the 1979 oil crisis, termed the "second oil shock".

Steel crisis

Steel crisis

The steel crisis was a recession in the global steel market during the 1973–75 recession and early 1980s recession following the post–World War II economic expansion and the 1973 oil crisis, further compounded by the 1979 oil crisis, and lasted well into the 1980s.

Electric arc furnace

Electric arc furnace

An electric arc furnace (EAF) is a furnace that heats material by means of an electric arc.

Mexico

Mexico

Mexico, officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatemala, Belize, and the Caribbean Sea; and to the east by the Gulf of Mexico. Mexico covers 1,972,550 square kilometers (761,610 sq mi), making it the world's 13th-largest country by area; with approximately 126,014,024 inhabitants, it is the 10th-most-populous country and has the most Spanish-speakers. Mexico is organized as a federal republic comprising 31 states and Mexico City, its capital. Other major urban areas include Monterrey, Guadalajara, Puebla, Toluca, Tijuana, Ciudad Juárez, and León.

Salisbury, North Carolina

Salisbury, North Carolina

Salisbury is a city in the Piedmont region of North Carolina, United States; it has been the county seat of Rowan County since 1753 when its territory extended to the Mississippi River. Located 25 miles (40 km) northeast of Charlotte and within its metropolitan area, the town has attracted a growing population. The 2020 census shows 35,580 residents.

Norway

Norway

Norway, officially the Kingdom of Norway, is a Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of Jan Mayen and the archipelago of Svalbard also form part of Norway. Bouvet Island, located in the Subantarctic, is a dependency of Norway; it also lays claims to the Antarctic territories of Peter I Island and Queen Maud Land. The capital and largest city in Norway is Oslo.

Source: "Primetals Technologies", Wikipedia, Wikimedia Foundation, (2022, November 25th), https://en.wikipedia.org/wiki/Primetals_Technologies.

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