New Capacity Roundup - November 2022

Here is a selection of the major steelmakers' latest production and capacity investments announced this month. 

Europe 

Salzgitter Group has commissioned a third hot dip galvanising line at its Flachstahl subsidiary. The new complex has an annual output of 500,000 tonnes of automotive grade high and ultra-high-strength steels, in thicknesses between 0.7mm and 2.5mm and widths between 900mm and 1,700mm. The company spent approximately €200 million on the project, which represents its largest single investment in the past ten years. 

Danieli confirms that it has been awarded a contract to replace BOF converter No.1 at heavy plate manufacturer Dillinger Hüttenwerke’s production facility in Dillingen, Germany. The new unit will have a tap weight of 200 tonnes. It is due to enter service toward the end of 2023. 

Americas 

Gerdau’s North American special steel division has issued the final acceptance certificate for the revamped EAF at its long products mill in Monroe, Michigan. Improvements have been made to the unit’s automation systems. A new twin ladle furnace and material handling system have also been installed. This has raised the plant’s overall melting capacity to 850,000 short tons per year. The company plans to invest a further US$40 million over the next two years upgrading the facility’s rolling mill end. 

Highbar, a recently formed scrap metal recycler and long product manufacturer, has announced that it will construct two rebar minimills in Arkansas. The first facility will be built on a 600-acre greenfield site, near Osceola. Construction of the US$500 million project is scheduled to start in mid-2023. 

Asia 

A new EAF at Nippon Steel’s Hirohata works, in Himeji, has started commercial operation. The unit has a charge size of 300 tonnes and a reported annual production capacity of up to 720,000 tonnes. The company plans to use it to produce feedstock for high-grade electrical steel sheets. 

Baowu Group has commissioned a new EAF, with an annual output of up to 1.1 million tonnes, at its Changjiang Steel subsidiary. The company decommissioned two basic oxygen converters to obtain the capacity allowances for the new unit. 

Handan Iron and Steel has completed the hot testing of the new plate line at its facility in Hebei province. It has an annual design capacity of up to 2 million tonnes, producing medium thick plate, with widths up to 3,500mm. The company broke ground on the project in May 2021. 

Baosteel Desheng Stainless Steel is set to increase capacity at its operations in Fujian province. The company plans to construct four AOD furnaces with a combined annual capacity of up to 3.1 million tonnes. Three new casting units will also be installed. The work is scheduled to be completed towards the end of 2024.