May 2022 New Steel Capacity Overview

Data from the latest investment in production and capacity by large steel producers was announced this month.

Europe
The German company Elbe-Stahlwerke Feralpi (ESF) has awarded Danieli a contract to build a new section mill at its Rize site. The unit contains sixteen rolling stands, a finishing block and a winding line. Coils weighing up to eight tons will be produced on the line when it enters service in the second quarter of 2024. It will be connected to the existing caster via a hot loading roller table. This arrangement reduces overall energy consumption as it eliminates the need for an intermediate heating furnace. ESF plans to invest about 150 million euros in modernization over the next four years.

North America
Atlas Tube, part of Zekelman Industries, has commissioned a new resistance welding tube mill at its plant in Blytheville, Arkansas. The $150 million line produces large hollow structural sections up to 28 inches outside diameter and up to one inch wall thickness. Its annual production capacity is up to 400,000 short tons.

North American Stainless, part of the Acerinox Group, has contracted engineering firm Sarralle to modernize its bar mill at its Ghent, Kentucky facility. This will require the replacement of existing manual tying equipment with a new automated system. The overall productivity of the line will be increased by reducing the time needed to complete this process. The company produces both round and equal angles on site.

Asia
POSCO has started construction of a new steel plant in Gwangyang, South Korea, which will produce non-oriented electrical steel. The company is investing US$800 million in the project, which will have an annual production capacity of 300,000 tons when it comes online in 2025.

Private steelmaker Lingang Metals Company has completed its plans to build a new cold rolling complex at its plant in Linyi, Shandong province. The $190 million plant will include a 20-strand cold rolling mill and a digitally controlled pickling plant. It will have an annual capacity of up to 600,000 tons of stainless steel coils with a surface finish of 2B.