Subir Khasnobis

ArcelorMittal Design and Engineering Centre, Kolkata, India

Steel Service Centres in India – An Overview

S ervice Centres In India: S ubir Khasnobis Copyright © ArcelorMittal Design & Engineering Centre
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Presentation Structure

Service Centre in India - Background

Few Value added Processes and
Technologies

Service Centre as a Business Case

Conclusion / Way forward

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 Service centre in India – Background

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Volume vs. Value – SSC as a bridge
For Steel Producer For Customer

Focus on core competence Ready-to-Use

Small lots
Increased Reach JIT

Small consumers well reached Professional

Service Organisation
Centre
Single Window for
Customer Satisfaction
multi Products

Single Window Quality

Sustained Steel Quality Guaranteed Service

S ervice Centres In India: S ubir Khasnobis 4 Copyright © ArcelorMittal Design & Engineering Centre
Industry needs are Changing

Focus on Core businesses and business processes.
Investments in Non Core Business process is not encouraged.

More outsourcing

Customised solutions

Greater attention to Logistics and Supply Chain Management

Focus on Value Chain costs and efficiencies

Preference on Technical support and Application Engg

Long term partnership is becoming popular

Not even 10% of steel is sold through service centres.

Service is the key word. Cutters are not service centres.

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Societal needs are changing

Rapid growth in organised retail.

High GDP Growth

Substantial disposable income in middle class society

Short replacement cycle

Rapid technology changes

Easy loan options

Global shift to outsourcing from India across products/ services.

De-regulation and liberalisation of the Indian economy, driven by central and

state Govts.

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 Evolution of Organised Service Centres
• Growth of Automobile, White Goods, Capital
goods, infrastructure, construction
• Entry of MNC’s
DRIVERS • Stringent Quality Requirements
• Tight Delivery Commitments
• Credibility / Professional Service.
• Total Solution – IT / ERP Platform

Basic Functions
Processing Packaging Storage Handling Distribution

Cont.threat from Substitute matls. New product & Value addition is a MUST.
S ervice Centres In India: S ubir Khasnobis 7 Copyright © ArcelorMittal Design & Engineering Centre
Service Centre – Processes today
Coil Processing Plate Processing LP Processing
• Slitting • Plate Shearing • Straightening
•CTL • Levelling • Sawing
• Roll Forming • Bevelling • Chamfering
• Pickling • Grinding • Shearing
• Turret punching • Stamping • Bending
• Stamping • Forming • Stirrup making
• Powder Coating • Press straightening
• Machining
• Welding
• Shotblasting
• Polishing
• Marking

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 Service centre – Few Value addition areas & Technologies

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 Tailor Welded Blanks
• Aluminum and composites – but Steel remains the material of
choice for its strength, formability, joinability, recyclability and,
of-course, cost.

• TWB – “Tailoring” the best properties of different steels so

that within a part they are located precisely where they are
needed.

• Reduced wt of finished part Less vehicle wt Less CO2

• Part integration - eliminates many reinforcements, stiffeners

S ervice Centres In India: S ubir Khasnobis 10 Copyright © ArcelorMittal Design & Engineering Centre
TWB – Joining Techniques
Hi-Freq Induction M Electron Beam
O NV
S
T

Laser Beam C Resistance Mash

O
M
M
O
N
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S ervice Centres In India: S ubir Khasnobis 12 Copyright © ArcelorMittal Design & Engineering Centre
Arcelor Neel tailored Blank – A JV in India
China
AMTB Global footprint Shanghai Baosteel & Arcelor Tailor M etal (JV)
India
Arcelor Neel Tailored Blank (JV)
Australia
ArcelorM ittal Tailored Blanks Adelaide

Europe

North America
HQ in Merelbeke, Belgium
AM TB Concord CANADA
AM TB Pioneer USA ArcelorM ittal Tailored Blanks Birmingham UK
AM TB TN, USA ArcelorM ittal Tailored Blanks Bremen GERM ANY
AM TB Summit Silao M EXICO (JV) ArcelorM ittal Tailored Blanks Neuwied GERM ANY
Delaco AM TB Tonawanda USA (JV)
ArcelorM ittal Tailored Blanks Gent BELGIUM
Delaco AM TB Dearborn USA (JV)
ArcelorM ittal Tailored Blanks Liege BELGIUM
ArcelorM ittal Tailored Blanks Lorraine France
ArcelorM ittal Tailored Blanks Senica SLOVAKIA
ArcelorM ittal Tailored Blanks Zaragoza SPAIN

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ANTB : Initial facility at Gurgaon

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ANTB : Current facility of Chennai

First Welding Line – Chennai . Installed in Sept 2009

Second welding Line installed in Nov 2010
Chennai S hed – Expanded in Nov 2010

S ervice Centres In India: S ubir Khasnobis 15 Copyright © ArcelorMittal Design & Engineering Centre
Hydroforming
Hydroforming

Tube Sheet
•Recommended by ULSAB ULSAC for Roof
Panels and Door Outers
•Some are using hydroforming for the front part
• State of Art technology in chassis making. of the main frame members.

• Semi-finished material from thin sheet (<2.5 mm) • Developing Technology

• A special technique for bending tubes with a • Slow process for cost effective
mass scale production
diameter-to-thickness ratio >40 • Sheet hydroforming requires large
press size
•No wrinkle formation during this critical process. (large panels with sharp features)
S ervice Centres In India: S ubir Khasnobis 16 Copyright © ArcelorMittal Design & Engineering Centre
Cladding Solutions
Examples:

Aluminum
Stainless Steel
Copper
Steel

Clad Metals are produced by Roll Bonding Process

Three critical Steps in bonding Process
•Surface Preparation
•Chemical
•Mechanical
•Roll Bonding
• Deformation
•Temperature and pressure
•Thermal Diffusion Treatment

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Cladding Applications
Applications
• Battery
• Cable Shielding
• Catalytic Converters
• Coinage
• Cookware
• Gasket
• Heat Exchanger
• Thermal Control and Switch
• Weld-transition
• Automotive Bumper
• Roofing Materials
• Fuel Cell
• Others…
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Innovative Clad Solutions – AM JV in India
A joint venture between Auerhammer Metallwerk GmbH, Shivalik Bimetal
Controls Ltd., and ArcelorMittal Stainless & Nickel Alloys.

Manufacturing Location: SEZ, Pithampur, Indore, India

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Steel cord and Wire
Usage of Steel Cord & Structure of tyre
Tread band
Crown and tread
reinforcement groove Separation
Nylon belt plies design rubber
Steel belt plies Side wall

Casing ply
Casing ply
turn-up

Reinforcement
Rim flange
in the form
of a bead heel

Airlight
Bead wire
rubber
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C-KAM Wire Products – An ArcelorMittal JV in India (Execution)

Plant building Fine drawing equipment Twisting equipment

Arrival of machines
(FD + TW ~30 containers) Fine draw machine Twisting machine

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Rebar Processing - Customised stirrup/C & B bars of exact length & profile

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Cut & Bent factory – several advantages

High Volume production in less time, ideal to serve fast track projects

Less manpower

Reduced space requirement and better safety and housekeeping at site

Better control over material and better utilization through optimisation
(Less Scrap & High Yield)

USP for steel supplier

Construction co. Can concentrate on core competence - better Resource
utilization, less inventory of raw material at site

Good return for Investor

Very common in Europe and Middle east, India yet to catch up

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Containerised Solution – a new concept

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Profiling – Choose the right one

Oxy-fuel Plasma

Laser Water jet

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Plate Processing - Some applications

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ArcelorMittal Dhamm – An ArcelorMittal JV in India

Current range: Shot Blasting, cutting, bending,

machining, welding, painting, assembly
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ArcelorMittal Dhamm - Ranipet Unit

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Copyright © ArcelorMittal Design & Engineering Centre
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 Other ArcelorMittal Outfits / JVs in India
ArcelorMittal India Parent company for Indian
Limited Operations and Greenfield
projects
Uttam Galva Steels Limited (JV) Cold Rolling, Galvanizing, Colour
Coating
ArcelorMittal Distribution Solutions Sheet piles and other SSC items

ArcelorMittal International Trading and Distribution

ArcelorMittal Design & Engg. Centre System engineering and Project

Pvt. Ltd. Management
Lindsay International Pvt. Ltd. Multi product service and support in
Supply Chain management
S ervice Centres In India: S ubir Khasnobis 29 Copyright © ArcelorMittal Design & Engineering Centre
Eco–Pickled Surface – A Green Approach
• Process Removes Surface
Oxide Layer Through Slurry Processing

• Slurry = Water + Carbon

Steel Abrasive Grit

• No Hazardous Chemicals

• Grit Is Auto-Recycled

• Water Filtered & Re-Used

in Closed Loop

• Minimal floor space

• Lower Capex & Opex than PL

S ervice Centres In India: S ubir Khasnobis 30 Copyright © ArcelorMittal Design & Engineering Centre
EPS – An emerging Green Technology
• Available both for Coil
and sheet for
applications ranging
from deep draw
stamping to cold
reduced galvanized

• All test results

comparable to
or better than
acid pickled

S ervice Centres In India: S ubir Khasnobis 31 Copyright © ArcelorMittal Design & Engineering Centre
 EPS - Product Advantages as Claimed
• Very clean finish that does
not require oil.

• Yields manufacturing
advantages
• Reduced paint
pretreatment cost
• Improved corrosion test
results
• Faster laser speeds

• Surface Profile improves Base Acid

paint adhesion Hot Pickled
Roll
• Replaces acid pickled in all
applications
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 Service centre as a Business Case

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Service Centre Models
 Independent SSC
 Not allied to any steel mill Quality?
 Purchase from many sources
 Service large and small OEs directly. Mainly job worker.
 OEM Owned SSC
 Mostly for captive use
 OEM fixes brand and price
 Mill Owned SSC
 Mill-owned service centre facilities
 Procurement primarily from owner
 Service large and small OEs directly and through trading houses

Indian environment favoured the Mill Owned model

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Customer profile – Distribution viewpoint
• Generally large regular volume customer.
• High technical selling ability required with assured consistent quality.
Large OEM
• Ability must to understand customer applications and design the steel for them.
• Assured payments, hardly any credit risk.
• Say auto ancillaries - < 100 ton per month customer in > 100 items.
• Cut throat competition.
Small OEM
• OEM influences strategic buying decisions.
• Major issues are assured JIT delivery with low to medium credit worthiness.
• Furniture retail market (~1.5 ton customer).
• Sale is in number of sheets of each size and thickness.
Retail
• Every dimension is important as yield loss can kill the profitability .
• Major issues are door delivery. Very low Credit worthiness but credit is desired.
•“Also sell steel” in addition to paint, hardware,shovels etc.
GC • Pain level is high, Not much increase in tonnage but business resilience increases
Distributorship to competitive pressures.
• Major issues are logistics, credit collection, local influences, etc

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Auto Customer Needs from SSC

Material quality,surface finish and flatness from mill to delivery.

Material of exact size and shape to help reduce costs and optimize material
usage.

Tight width tolerance : +/- 0.127 mm.

Tight flatness: 3 mm per metre.

Secondary processing for auto panels and underbody components like trapezoidal
lines, press blanking lines, complex shape blanking lines, laser welding & cutting,
auto lasers for tailor welded blanks.

Handling, packaging and storage facilities to ensure material reaches customers
in prime condition.

IT and logistics systems to control supply chain transparency and support
achievement of minimum order lead times, rapid reliable deliveries on JIT or
scheduled basis.

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Appliance Customer need from SSC
• Dead Flatness
• Close Dimensional Tolerance
• Optimum Hardness to ensure rigidity, dent resistance, ease of
bending.
• Surface free from dents/scratches/rust spots, rolled in scales/pittings
• Surface finish amenable to modern painting technology

Changes taking place :

• Move to greater thinning to reduce cost. Ex: 0.40mm  0.31mm.
• Use of GA/GPSP to improve body life warranty to 15 years.

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 OE and Retail Customer needs
OE Customer Needs Retail customer Needs
• Tighter manufacturing / processing • Brand development and mktg. support
tolerances; better packaging • High network service levels
• JIT supplies; vendor managed –Stock Replenishment
inventories –Range of inventory
• Customised products –Logistics cost & efficiency
• Technical support and application • Customer interface management
development –Retail buying experience
• Long term partnerships –Convenience
–Accessibility
–Availability
–Information
–Support
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 So…. Needs are very different – SSC to ……
Balance diversity, Decide and Exceed Expectations By

 Enhancing service levels:

• Cost effective sourcing and order fulfilment process.
• Addressing dimensional Tolerances, flatness, surface defects
• Responsiveness, small lot supply, customised kit
• Right price
• Effective logistics support and JIT

 Developing Capabilities for:

• Value added world class products
• Tailor Welded Blanks; Trapezoidal Blanking
• Press Blanking
• Hydroforming and so on……..

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Not to forget the role of Integrated Logistics / Supply Chain Mgmnt

• It’s not about transportation

or trucks & ships .
BUT
Inbound and
• It’s about fulfilling customer Outbound Logistics.
orders at least cost and
profitably. – Inventory,
warehousing!!!!!

... Supply Chain

S ervice Centres / Logistics
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Strategic Challenges to handle

Business Operational

• Alliance with Mill, OEM • Customer awareness on quality

• Price Competition • Increasing Customer expectations
• Fragmented Market • New Products & Service Lines
• Low Entry barrier • Implement world Class process
• Unethical trade practice • Managing supply chain / logistics
• Working capital & credit •Extensive use of contract
managemnt labour & its enagement

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Way Forward

Why not a collaborative approach within

the organized service centers in
 forming Association with transparency to meet common objectives
 running joint program to create awareness, training
 e-Commerce
 joint R&D
 logistics support and so on…

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 Thank you for your patience

Be safe and have a good day

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 Back-Up Slides

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HSS / AHSS Processing – What It Means

More power in Uncoiler and Recoiler

Much more Power for shearing

Specially designed Slitter Head

Leveler – 27 roll instead of 17/21 roll

Suitable tensioner

More rugged design

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 TWB – Some Advantages
• Fewer parts
• Fewer dies
• Fewer spot welds
• Reduced material use, Weight reduction
• Optimized use of steel properties
• Improved dimensional accuracy
• Improved structural integrity
• Improved safety
Factors contributing to COST / BENEFIT Factors leading to improved Performance
1. PART INTEGRATION
2. PART ELIMINATION • WEIGHT REDUCTION
3. MATERIAL UTILIZATION • STRUCTURAL INTEGRITY
4. TWO-PIECE OR MULTI-PIECE • CRASHWORTHINESS
5. WELD LENGTHS AND ORIENTATION • NOISE-VIBRATION-HARSHNESS
6. VOLUME • CORROSION
7. PIECE COSTS • REDUCTION OF DIMENSIONAL VARIATION

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 Comparison of Profiling Processes
Process Advantage But…
• Traditional, Lowest cost • Distortion is the highest
• Most used for CS application only • Poor tolerance
Oxy Fuel • Most suitable for thicker material • Not preferred for thin sheet
• Highest heat affected zone (HAZ)
• Not suitable for small holes & sharp corners
• 8-9 times faster than OF & cost effective 20-25mm (MS) •Tapered cut & imperfect edge
Plasma •Lower HAZ •Quality inferior to Laser
•Only process for thick SS, also cut monel, aluminium etc.
•Fastest process • Expensive
•Closer Tolerance • Not suitable for thick MS plate
Laser
•Fine and intricate cut, eliminates subsequent machining • Require laser cutting quality plate free of
Cutting
•Three dimensional cut possible dirt and oil.
•Minimum heat affected zone
•No HAZ application, No thermal stress • Expensive
Water Jet
•Can cut any thickness, any material in any direction • Still emerging Technology – OP & abrasive

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Hydroforming
• Most automobile manufacturers have looked for alternatives to steel traditionally
used in car production - hence the introduction of high strength steels.

• HSS - thinner but strong enough to meet industry standards resulting in reduction
in vehicle weight, increased performance, and reduction in fuel consumption.

• Stamping of HSS is accompanied with host of forming problems. Does not have
the stretchability of conventional steel grades, which creates a problem while
stretching the material to produce the required part geometry.

• The key to obtaining good stretch distribution when using high-strength material is
to use a punch geometry that forces the material to stretch as evenly as possible.

• Hydroforming enables the forming of high strength steels through even distribution
of pressure across the face of the blank.
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Tubular Hydroforming Applications

Truck frames and Chasis Components - Using mild and medium strength
hot rolled and coated products.
Tubular Hydro forming Advantages
 Converts steel sheet into tubular blanks.  Reduced Costs through part
Consolidation
 Tubes bent to a specific geometry and  Reduced Spring back- Improved
hydroformed by expanding the tube into a net part shape
die of the net part shape.
 Reduced Mass
 Tube is filled with a high pressure liquid  Improved Structural Performance
(mostly water) which expands the tube into
the die cavity

S ervice Centres In India: S ubir Khasnobis 49 Copyright © ArcelorMittal Design & Engineering Centre
 Sheet Hydrofoming
• Application of hydraullic pressure to
stamping blank.
• Gets evenly distributed across the face
of the blank.
• Expands material into die and exerts
enough pressure to press
• Blank is forced into the net shape of
the die
• Eliminates friction between punch and
blank interface – improves formability –
Larger strains gets distributed evenly
across large flat surfaces as in case of
exposed panels.
• Reduces Die Cost - Only one die is
required to make a part.

S ervice Centres In India: S ubir Khasnobis 50 Copyright © ArcelorMittal Design & Engineering Centre
Sheet Hydroforming – Advantages & Limitations

Advantages Limitations

Any type of sheet material can be used
Difficult to control sharp corners

Thicknesses of 0.1 to 16mm
High Equipment cost

Usage of tools for more than 1 metal thk.
No holes in surface.

Flexible and easy to operate
Sensitive to pressure setting. Inaccuracy may
lead to buckling and tearing for high pressure

Less expensive tooling

High Cycle time

Tolerances down to 0.002"

Reduced setup times

Less thinning

Reduced die wear

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Sector - Automobile
• QualityIssues
• Excellent drawability- r bar >1.7
• YS/UTS ratio < or = 0.5
• Surface finish and texture amenable to modern
• Painting technology - Ra , Rz and Rmax values
• Good Weldability
• Corrosion Resistance
• Dent Resistance

Servicing to Auto Sector- Global Trend

 Procuring through service centers who procure / process & supply.
 Service Centres developing capabilities to match Tier1 suppliers
 Steel Mills catering to auto industry through Service Centres who supply steel blanks /
components to auto manufacturers.

Differentiation through service levels is the call of the day!!!!

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Sector – Automobile – Changing scenario
Changing Requirement:
•Bake-hardening Steel for improved drawability and dent resistance.
•High Strength Steel(HSS) to move to thinner to reduce auto weight and improve mileage (> UTS, > YS).
•AHSS – similar to HSS.

• High Strength Steels are defined with those steels

having YS ranging from 210 – 550 Mpa. HSS and AHSS Materials Used in ULSAB Design
• Advanced High Strength Steels are defined with those • Dual phase – 74%
steels having YS > 550 Mpa.
• Bake Hardenable – 10%
• The Family of High Strength Steels include BH (
Bake Hardenable Grade) , High Strength IF • High Strength IF – 4%
(Interstitial Free) • (Martensite, Trip, Complex phase, HSLA) – 12%
• The Family of advanced High Strength Steels include
DP , TRIP and Complex Phase Steels.
• The Difference between HSS and AHSS is the
microstructure.
• Available in hot rolled,cold rolled, and coated
products.

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 Sector – General engineering
Packaging - Drums, Barrels and Containers

• Close thickness tolerance to maximise yield in terms of no of drums per

ton maintaining the min drum wt.

• Ease of welding - Resistance welding -

• Optimum hardness to ensure rigidity, strength and ease of bending ,

while forming of drum ends

• 50 to 60 Rb for Drum body to ensure rigidity and stiffness

• 45 to 55 Rb for Drum ends to ensure against cracking during seaming

operations
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 An extended Menu card for SSC
• HR & CR Processing • Profiled cut plates • Cold formed Str.
• Pickling • Telecom Towers • Light & Med Structurals
• Rect. & Profiled blanks • Transmission Tower • Heavy Structurals
• Furniture Tubings • Electrical lams • Alloy Steel LP
• Drums and Barrels • Substation Struct. • Bright Bar Proc.& Dist
• Steel Strapping • Steel Doors • Imported Hi-end Plate
• Tailor Welded Blanks • Steel Windows • Imported MC/HC
• Str for Pre-fab building • Modular Roof Truss • Galvanising
• Crash Barriers • Grating • Perforation
• Pandrole Clip • Ind Racking • Roll Forming
• Bridges • SS Fab Prods • Shot / Sand Blasting
• Rebar Processing • Antibacterial Steel • Powder Coating
• Heat Treatment

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Uttam Galva
• Auto
Auto--Ancillary Industry
1,000,000 tpa • Electrical Goods Industry
Cold Rolling
• White Goods Industry
ISO-9001 Accredited Company • Drums & Barrels
ISO/TS/16949 Accredited Company for Auto Sector
ISO 14001 for Environ Control (under implementation) • Construction
IS 277:2003 Accredited Company for Galvanized products
• White Goods
• Office Equipment
Galvanized 750,000 tpa
• Transport
• Containers

• Roofing
Colour
Coating
100,000 tpa • Cladding
• White Goods
tpa= tonnes per annum

S ervice Centres In India: S ubir Khasnobis 56 Copyright © ArcelorMittal Design & Engineering Centre