Pickle Line Tandem Cold Mill & Hot Dip Galvanizing Line

3001 Miller Road, Dearborn, Michigan

Please provide a brief overview of the project.

For nearly 100 years, our Dearborn steelmaking facility has been at the center of steel innovation and performance improvement. It has been a major supplier to OEM manufacturers, including the automotive, appliance, construction, and pipe and tube industries, and to our distribution partners. Our investment in modernization ensures that our Dearborn facility remains one of the leading steel producers in the world, capable of meeting the most critical requirements for demanding applications.

Severstal Dearborn, LLC (Severstal) is continually focused on developing the most advanced steel operations and technologies. By investing heavily in technology, we have accelerated innovation, increased operational excellence, and enhanced quality and service for our customers.

In December 2011, Severstal completed an ongoing aggressive reinvestment plan that added over $1.5 billion in capital investments to its steelmaking operations.

The Project is located within the 94-year-old Ford Rouge Complex, partially owned by Severstal, and fits the full meaning of the term “Brownfield.” The 418-acre property suffered the adverse impacts of age, technological and physical obsolescence, outdated equipment, and deteriorated and blighted structures. The Property has been used for decades as a steelmaking facility. Founded in 1918 as the Ford Motor Company Steel Division, it became Rouge Steel Company in 1982, becoming independent of Ford Motor Company in 1989. Severstal purchased the Property in January 2004. The entire Rouge Complex has an incredible history, as the vision for the facility was first conceived by Henry Ford himself, as a prototype of vertically integrated manufacturing.

The property is described as follows:
Address: 3001 Miller Road, City of Dearborn, Wayne County, Michigan 48121
Parcel Size: 417.97 Acres

As of December 31, 2011 all of the following Brownfield projects were completed and placed in service:

Hot Dip Galvanizing Line (HDGL):
The installation of a new high speed, continuous HDGL in a site adjacent to the existing hot strip mill. The coating line is capable of applying controlled-thickness coating of either zinc or zinc-alloy to the surface of steel strip intended for both exposed and unexposed automotive applications, along with all coil handling equipment and facilities needed to stage coils ahead of, and deliver coils to, the galvanizing line, and to remove coils and deliver them for shipment to outside customers. Construction was completed in December 2011 at a final cost of $305 million.

HDGL Construction Information
• Overall Length: 1,171 ft. (357 m)
• 20,000 cu. yd. (15,291 cu. m) of reinforced concrete
• 3,707 tons (3,363 metric tons) of structural steel

Severstal’s investment ensures that our Dearborn facility remains on the leading edge of the highest quality steel production and is equipped to meet the most critical requirements for demanding applications.

Our new Exposed HDGL with Advanced High Strength Capabilities combines with our new five-stand, six-high, 72” wide Pickle Line Tandem Cold Mill (PLTCM) to achieve a new level of high quality steel performance:
• Lighter weight and higher strength products
• Advanced High Strength Steels (AHSS) for automotive applications
• High-reduction interstitial free, dual-phase and TRIP steels
• Coated products for exposed and other demanding applications

The 72” (1829 mm) HDGL represents the most sophisticated technological advances available.
Two primary areas of focus:
• Galvanized steel for exposed applications
• Advanced High Strength Steel (AHSS) Galvanized and Galvannealed products

Because of the intense performance requirements, there is limited production capability for exposed Galvanized product in North America.
That’s why Severstal developed the advanced, specialized equipment and features which are crucial for production of Galvanized and Galvannealed exposed products.
Specialized equipment features include:
• Entry pay-off reels with under-wind and over-wind capabilities
• An “O”-frame welder with post annealing
• Highly advanced surface cleaning systems
• Sophisticated five section radiant tube furnace with variable furnace atmospheric control
• Automated temperature and coating weight control
• Blowstab® rapid cooling with rates of 70°C/sec
• Dual 350 ton (318 metric ton) pots — one dedicated for Galvanized, the other for Galvannealed
• Advanced air knives with nitrogen wiping
• Unique Skin Pass Mill and post-wash system
• In-line side trimming and roll coating
• State-of-the-art inspection and continuous mechanical property monitoring

Advanced High Strength Steels are critical to the future of automotive design, safety and fuel economy. Severstal is prepared to meet this challenge. Our new HDGL was designed to optimize the processing of cold rolled coils from our new PLTCM. The combination of the HDGL and PLTCM results in an exclusive system which allows us to produce a broad spectrum of sophisticated, advanced steels for demanding applications.

Pickle Line Tandem Cold Mill (PLTCM):
This project modernizes Severstal\'s steel finishing operations by expanding product offering and increasing production capacity. The PLTCM project includes installing a high-speed, continuous pickle line coupled with a modern, five-stand tandem cold rolling mill at a site adjacent and parallel to the hot strip mill, partially utilizing the existing soaking pit building. Construction was completed in September 2011 with a final cost of $480 million.

Every aspect of our new PLTCM was designed to add precision and quality control to the cold rolled process. For our customers, this results in:
• Higher quality across a full range of products
• Wider range of product options
• Greater flexibility for engineering and design
• More efficient operations that use the best available environmental technology.

PLTCM Construction Information
• Overall Length: 1,572 ft. (479.2 m)
• 58,000 cu. ft. reinforced concrete
• 41 miles of piling (H-beams) each 150 ft. long

Our new PLTCM expands our cold rolled product capabilities with the optimal combination of steel mill equipment and the cutting-edge operating practices.
• Automated Material Handling systems at entrance and exit are designed to minimize contact with lifting devices, thereby drastically reducing the risk of product damage.
• Continuous Process Operation, which substantially improves product quality, is made possible by high quality laser welds which allow the strip to be processed without interruption, through pickling and cold reduction. Damage caused during storage and rethreading into the tandem mill is virtually eliminated.
• Turbulence in the Acid is generated by strip motion and Immersion Box pickling tanks to optimize pickling effectiveness. Old technology high pressure acid pumps and nozzle headers are eliminated for increased reliability and more consistent pickled surface.
• A 6-High Universal Crown Mill (UCM) shifts and bends the intermediate rolls to optimize the strip shape produced by each mill stand resulting in improved gauge performance from end to end. The UCM’s cylindrical rolls create a more consistent relationship between strip speed and roll speed; improving texture consistency across the width.
• The Tandem Mill is powered and geared to maximize the rolling torque available for cold reduction and is able to process hot rolled bands up to 6mm thick. High formability products requiring maximum cold reduction to achieve their properties will now be available over a broader width and to heavier final thicknesses.
• The Inspection Station automatically cuts samples between coils and allows inspectors to validate surface quality with minimal delay after production.

Severstal Dearborn, LLC,
14661 Rotunda Drive, Dearborn, Michigan

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