Raw material optimization for charcoal blast furnaces

Sector:Steel and Metal Industry
Optimization type:Process, Resource Allocation


A branch of Gerdau presents a differentiation, in that they are not moved by coke but by charcoal. It has three plants in Minas Gerais, in Barão de Cocais, Divinópolis and Sete Lagoas.


The three units are responsible for allocating the ores found in the region, both themselves and third parties. Until then, the distribution aimed at a certain uniformity in order not to penalize a certain unit. However, Gerdau saw in this issue a potential gain in optimizing the allocation of ores to each plant.


The physical properties of the ores were analyzed and compared to the performance and energy consumption data of each blast furnace. With this new basis, we created a mathematical model that optimizes the purchase of ores and their allocation to each plant aiming at a minimum global cost.


Through better metallic yields and lower fuel consumption, we observed a significant reduction in production costs. In addition, there was greater integration between the units and the consequent formalization of knowledge by process specialists. The model improved the quality and speed of execution of monthly plans.
Foto Vinícius Ricardo Lima de Deus

"A few months after concluding the project with Cassotis, we could already achieve higher planning accuracy and improvement in our results. We observed a significant cost reduction compared to the spreadsheet we were using to make monthly decisions for the procurement of the raw material used in the furnaces."

Vinícius Ricardo Lima de Deus Industry 4.0 - Gerdau
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