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Danieli: a 430 million maxi order for the green steel in Russia

September 03, 2020


Abstract : Maxi Russian order for Danieli. The group from Buttrio (Udine, Italy) has signed a contract with OMK which, apart from the importance of the investment amounting at about €1,500 million, represents "a cornerstone for the Russian and pan-European iron and steel industry".

MILAN, Sept. 2 (Class Editori) – Maxi Russian order for Danieli. The group from Buttrio (Udine, Italy) has signed a contract with OMK which, apart from the importance of the investment amounting at about €1,500 million (430 million of which are addressed to Danieli supply), represents "a cornerstone for the Russian and pan-European iron and steel industry".

It has been signed at the presence of the Minister of Industry, Denis Manturov, the Governor of Nizny Novgorod region, GlebNikitin, and the Italian Ambassador in Moscow, Pasquale Terraciano.

The agreement concerns a plant to produce steel without using coal and by using a direct reduction plant, which directly loads the direct reduced iron (DRI)on high temperature up to 600 C° in the electric furnace, instead of the blast furnace and the oxygen furnace.

An essential step towards the "green steel" production with very low GHG emissions thanks to the lack of coal in the production cycle and with a considerable energy saving thanks to the use of high-temperature direct reduced iron.

According to a note, this technology reduces the CO2 emissions by 64%, if we compare it to the most advanced and high-tech blast furnaces, and it represents a concrete step in order to produce steel with a greater respect for the environment.

The OMK-Danieli collaboration dates back to 2004 with a supply agreement to produce high-quality steel strips through the thin slab caster process, mainly used for the production of high-quality API welded tubes addressed to the gas, oil and chemical industries.

The plant called QSP (Quality Strip Production) has not only met productivity and quality standards, but it has also outdone them; after 16 years, it is still the only plant worldwide to rely on the high-quality API thin slab rolling technology.

Since the beginning of the year, Daniel had already received other orders from Russia. Last April, it signed an agreement with Magnitogorsk Iron & Steel Works-MMK for a new Q-Melt technological package in the Chelyabinsk region, Russia.

The Q-Melt, a device which allows to improve furnace performances and workers' safety, will lead to a further decrease in operational expenses (OPEX) for an electric arc furnace (EAF) which is already working, and is loaded with hot metal up to 40%.

The expected savings in production for the MMK EAF will be higher than $2.5 per ton of ensured liquid steel, with a refund of only 8 months. The package will be installed this summer during a scheduled stop in maintenance. After the first installation in 2016, Danieli Q-Melt has updated more than 15 EAFs in the USA, Europe, Russia, China, Far East, Africa and Middle East, with savings in production up to $4 per ton.

(Source:Class Editori)

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Keyword: Russia Danieli

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