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Steel integrated production chain optimization

Client:CSN
Sector:Steel and Metal Industry
Optimization type:Process

Client

Founded in 1941, CSN was the first integrated flat steel producer in Brazil. Today, multinational and with more than 20 thousand employees, it has one of the most efficient integrated steel complexes in the world.

Context

At Presidente Vargas Steelworks (UPV) integrated plant in Volta Redonda, with a capacity of 5 million tons per year, CSN deals with highly strategic decisions on a weekly basis, such as the purchase of raw materials and the definition of the rolled product portfolio. Mixing and quality specification decisions are also always questioned, considering the global impact on the value chain.

Solution

We customize our end-to-end steelmaking process optimization model in the scope of the coking plant, sintering machines, blast furnaces, flat melt shop (desulphurisation, primary and secondary refining, continuous casting and scarfing), rolling mill and other service centers in the group outside the UPV. We focus on developments in the purchase of fuels, in the loading of converters and in detailing the production costs of special steels.

Results

With the use of the model in meetings attended by the board, CSN was able to determine the best level of production considering the evolution of the plant's marginal production cost and current market conditions. During the evaluation trips of new suppliers, they optimized the purchasing decisions by valuing the quality of the material. In addition, the product portfolio is always in the process of optimization, in search of the highest possible profit, considering the contribution of each product and the production limitations along the production chain (upstream and downstream).
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