ENERGY HEAT TREAT

Smart Materials, Magnesium Alloys Manufacturer Breaks Ground on Expanded Foundry

A manufacturer of smart materials for the oil and gas industry and advanced magnesium alloys for lightweighting recently broke ground on its expanded magnesium foundry for manufacturing dissolvable metals.

Andrew Sherman, CEO of Terves

Terves Inc launched the 12,000 sq. ft. expansion to its Magnesium Foundry, an H3-classified magnesium metal processing facility expansion which enables the company to further expand its metal processing, heat treatment, machining, and storage capabilities.  The expansion plans include additional permanent mold and materials handling and storage space, and the addition of sand casting, squeeze casting, and diecasting capabilities for custom magnesium and magnesium alloys and composites, in addition to further expansion of build-to-print component CNC machining services. These additions enable the company to support aerospace and defense magnesium applications in addition to Terves’ leading position in the dissolvable oilfield tool market.

 

“Dissolvable Metals are the New Composites as far as oilfield tools are concerned,” said Andrew Sherman, CEO of Terves. “Oilfield tools made from composite materials were adopted in the industry about two decades ago and today occupy a sizable market share. We are seeing a major adoption and growth trajectory for oilfield tools made from dissolvable magnesium materials. At the end of 2017, roughly 2% of all frac plugs deployed in the field were being made using dissolvable metals and the market is expected to grow to 5% of all frac plugs deployed in the field by the end of 2018 – a 250% growth in one year, with adoption and use increasing through 2025. We are seeing tremendous innovation as the industry gains extensive field experience with these new Engineered Response multifunctional materials, including several new staging and completion tools engineered using dissolvable materials. Given the massive value-add of dissolvable tools, primarily eliminating post-completion drill-outs coupled with the ability to do longer laterals, we expect that dissolvable tools would replace over 30% of drillable tools used in well completion over the next 3-5 years. Terves is investing in a further doubling of production capacity for cast and wrought magnesium products, and the expansion frees up space in existing facilities for initial production of new Engineered Response products, including revolutionary expandable structural materials and gas-generating reactive materials.”

 

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Pennsylvania Steel Producer Transfers Specialty Steel, Cast Roll Subsidiaries

A Pittsburgh-based steel and aluminum producer for multiple industries, including oil and gas, sold its Canadian specialty steel subsidiary to a global manufacturer of stainless steel and nickel alloys bars and wires.

Valbruna Canada Ltd., a subsidiary of Acciaierie Valbruna S.p.A., of Vicenza, Italy, purchased ASW Steel Inc, a steel fabricator in Welland, Ontario, from Ampco-Pittsburgh, which operates through its operating subsidiary Union Electric Steel which produces forged and cast rolls for the worldwide steel and aluminum industries.

The new company will now be known as Valbruna ASW.

Brett McBrayer, Ampco-Pittsburgh’s CEO

In a related transaction, Ampco-Pittsburgh, which also manufactures ingot and open die forged products, air and liquid processing equipment, primarily custom-engineered finned tube heat exchange coils, large custom air handling systems, and centrifugal pumps, announced it completed the sale of its Avonmore, Pennsylvania, cast roll manufacturing facility, Akers National Roll, to an affiliate of WHEMCO, Inc., also located in Pittsburgh, which uses heat treating and other metal-forming capabilities in the manufacture of heavy industrial components for the metals, power generation, mining, and shipbuilding industries.

“As previously discussed, excess capacity and high operating costs in our cast roll system have made the operation of the Avonmore facility unsustainable,” said Brett McBrayer, Ampco-Pittsburgh’s CEO. “With the closing of this transaction, the divestiture of our Canadian specialty steel operations, as announced yesterday, and further improvement initiatives being implemented in our businesses, we expect a significant impact on our future financial results moving forward. The Corporation remains focused and committed to building a sustainable and profitable future for our core businesses.”

 

Photo image credit: Akers National Roll

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U.S. Steel Acquires Interest in Arkansas Steel Company, First Step Toward Consolidation

A leading integrated steel producer headquartered in Pittsburgh, Pennsylvania, announced a joint venture partnership agreement under which it has taken the first step toward acquiring an Arkansas-based steel manufacturer.

Big River Steel, which operates a LEED-certified Flex Mill™ in northeast Arkansas, will expand U.S. Steel’s technological capability and geographic presence through this agreement. U.S. Steel has purchased 49.9% ownership interest with a call option to acquire the remaining 50.1% over the next four years.

David B. Burritt, president and CEO of U. S. Steel

The Big River flat-rolled mill has advanced technology that allows it to produce a wide product spectrum, including advanced automotive steels and electrical steels, and provide high-quality products and services to customers in the automotive, energy, construction and agricultural industries. Big River’s recently announced Phase II-A expansion is expected to double the mill’s hot-rolled steel production capacity to 3.3 million tons annually.

“Our new partnership with Big River is designed to accelerate our strategy to offer our customers the ‘best of both’ by bringing together the capabilities of integrated and mini-mill steel production,” said David B. Burritt, president and CEO of U.S. Steel. “Big River operates the most advanced, state-of-the-art and sustainable mill in North America, and our investment would ultimately strengthen our competitive positioning in highly strategic steel-end markets, creating an unmatched value proposition for our stakeholders.”

“We have been investing in leading technology and advanced manufacturing so that we can assemble a portfolio of competitive assets with distinct advantages to serve strategic markets to better position U.S. Steel to be an industry leader in delivering high-quality, value-added products,” added Burritt. “The investment in Big River, coupled with our announced investments at Mon Valley Works and Gary Works, would ultimately position U.S. Steel with three core market-leading, differentiated and technologically advanced assets that will enable us to compete with anyone, anywhere, for generations to come. Each of these locations would be able to focus on the products that each facility is best designed to produce. As an organization, we will be nimbler, more resilient and our teams will be more efficient. Collectively, these actions will help us continue to create long-term value for our stockholders, customers, employees and the communities in which we live and work.”

David Stickler, CEO of Big River Steel
David Stickler, CEO of Big River Steel

“U. S. Steel’s decision to partner with us through this investment in Big River is a decisive vote of confidence in our company, our vision and our people,” said Dave Stickler, CEO of Big River. “After just over two years of operations, we have built a unique platform that features the most advanced technology in our industry, and the very finest steel technicians in the business. We have always called ourselves a ‘technology company that just happens to make steel.’ In U. S. Steel, we have a likeminded technology-focused partner with an enduring tradition of excellence and a commitment to innovation. We are very excited about the possibility for what we can do together. As the newest steel production facility in North America, I could not be more proud to be partnering with a company started by Andrew Carnegie more than 118 years ago.”

Closing of the transaction is anticipated on October 31, 2019.

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Oil & Gas Technology OEM Increases Heat Treating Capabilities

An oil and gas OEM specializing in technology, products, and services recently announced it will expand its heat treating capabilities when it assumes responsibility of a Houston-based oilfield services company’s forging operations.

Under the terms of the agreement, AFGlobal, based in Houston, Texas, will assume all operational responsibility in its assumption of Dril-Quip’s forge facilities and equipment located at its Houston manufacturing campus with an option to acquire those same assets. AFGlobal will supply Dril-Quip with its forging needs while also using the assets to further support AFGlobal’s OEM business in the broader oil and gas market as well as other existing markets, including industrial, aerospace, defense, and transportation.

Curtis Samford, president and CEO for AFGlobal

“We are excited to partner with Dril-Quip, not only for their forging needs but also to strengthen our offering for our core energy clients in drilling and pressure pumping,” commented Curtis Samford, president and CEO for AFGlobal. “Furthermore, we see this as another major step in our ongoing expansion into the broader industrial, aerospace, defense, and transportation markets. This equipment significantly expands our existing capabilities in both open- and closed-die forging and nearly doubles our ring rolling capability and capacity. These assets also provide us with further expansion opportunities for heat treating and machining.”

 

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Auto, Aero, Oil & Gas, Energy Industries to Benefit from Specialty Chemicals Acquisition

A global leader in primary and metalworking industrial process fluids recently announced an agreement to acquire the operating divisions of a UK company that provides specialty chemicals, operating equipment, and services to industrial end markets.

Quaker Houghton plans to purchase Norman Hay plc, which serves a number of industries including aerospace, automotive, oil and gas, and power generation through four divisions:

  • Ultraseal, a leading global provider of impregnation technology, including porosity sealants, and associated chemistry and equipment for die cast components;
  • SIFCO ASC, a leading global provider of surface treatment solutions through selective electroplating, anodizing, chemical solutions and engineering solutions;
  • Surface Technology, a specialty provider of surface treatment solutions including coatings, thermal sprays, plating and other ancillary services; and
  • Norman Hay Engineering, a leading provider of design and engineering services that support surface treatment plants and equipment for the Ultraseal, SIFCO ASC and Surface Technology businesses as well as additional third-party industrial engineering applications.
Michael F. Barry, chairman, CEO, and president of Quaker Houghton

Quaker Houghton intends to operate the acquired divisions as a stand-alone business within its Global Specialty Businesses platform while it completes the integration of Quaker Chemical and Houghton International.

“This acquisition represents an opportunity to add new technologies with good growth characteristics in attractive core market segments with high barriers to entry such as die-casting, automotive OEM and aerospace,” said Michael F. Barry, chairman, CEO, and president of Quaker Houghton. “We also believe it provides a strategic opportunity to take advantage of external market trends such as the light-weighting of vehicles and 3D printing where we have the opportunity to leverage our global footprint and complementary geographic strengths.  In addition, Norman Hay’s engineering expertise, which includes robotics applications, strengthens the existing equipment solutions platform inside Quaker Houghton and further positions the Company for Industry 4.0.”

Norman Hay plc was established in 1946 as a decorative electroplating business and has evolved into a global specialty chemicals sealant, surface coatings, and engineering group.  The company is headquartered at its modern, state of the art production facility in Coventry, England.  The company has approximately 400 employees with production and R&D facilities across Europe and the United States.

 

Main images photo credit: video stills, Quaker Houghton 

 

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Arkansas Continuous ERW Tube Mill to Support Oil & Gas, Infrastructure, Construction

A major independent North American steel manufacturer recently announced it will build a continuous ERW tube mill in Blytheville, Arkansas, to provide support for infrastructure applications such as oil & gas pipelines and bridges as well as structural support for buildings such as airports, stadiums, mega warehouses, and large distribution centers.

Barry Zekelman, executive chairman and CEO of Zekelman Industries
Barry Zekelman, executive chairman and CEO of Zekelman Industries

According to Zekelman Industries, this facility, built on property adjacent to its existing Atlas Tube mill, will be the world’s largest continuous ERW tube mill.

“We’re very excited to continue investing in a community we’ve proudly called home,” said Barry Zekelman, executive chairman and CEO of Zekelman Industries. “Having two mills within close proximity of each other will only increase our organization’s efficiency. We look forward to starting construction of this groundbreaking facility.”

The Blytheville mill, Atlas Tube’s sixth mill in North America and its fifth in the United States, will produce HSS and pipe piling to meet or exceed ASTM A500, ASTM A1085, CSA G40, and ASTM A252 standards. Startup of the new mill is scheduled for September 2021.

 

Photo credit: Zekelman Industries, video still

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Heat Treat Induction Systems Go Online at Energy Group

A notable provider of vacuum melting systems recently supplied two vacuum induction melting systems to the power and gas division of a power company.

Retech Systems LLC, a subsidiary of SECO/WARWICK Group, provided two vacuum induction melting (VIM) systems for Siemens Power and Gas division.

Retech’s technologies have been applied to melting, refining, casting and atomizing reactive and refractory metals, such as Titanium and its alloys, super alloys, and rare earth metals. Retech VIM furnace systems are used for applications including automotive, consumer, aerospace, and energy utilizing equiax, directionally solidified, or single-crystal investment castings.

Retech Vacuum Induction DS Furnace
Retech Vacuum Induction DS Furnace

One vacuum induction melting directional solidification/single crystal/equiax pitless (VIM DS/SC/EQ) combo casting furnace and one vacuum induction melting directional solidification/single crystal (DS/SC) solidification casting furnace system were installed in Siemens’ new plant. In addition to the two VIM furnace systems already supplied, two more pitless DS/SC VIMs will be supplied later this year.

Retech designs pitless DS/SC Furnaces in hopes of reducing or eliminating costs, time, disruptions to facility production, and confined space entry to pits required with the installation of the new pitless VIM furnaces at the facility.

Earl Good, VP – Global Vacuum Melting, Managing Director Retech Systems LLC
Earl Good, VP – Global Vacuum Melting, Managing Director Retech Systems LLC

“The melting systems that Retech is delivering to Siemens, incorporate industry leading special design features such as: a reliable and maintenance friendly design ideal for faster and more flexible operation, superb process control for repeatability and high yields, as well as Retech’s new pitless mold elevator that can be utilized on Directional Solidification/Single Crystal furnaces,” said Earl Good, VP – Global Vacuum Melting, Managing Director Retech Systems LLC.

 

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Temperature Control System Improves Precision, Efficiency on Heat Treat Equipment: A Case Study

A century-old producer of die forgings recently needed to improve the process controls on its heat treating furnaces.

With process controls well over 10 years old, Clifford-Jacobs turned to Conrad Kacsik to improve its temperature process control system. The company, which serves a number of industries, including energy, aerospace, construction, mining, forestry, and rail, was eager to improve its temperature process control system, particularly because the incumbent system was producing inconsistent work.

The Challenge

Bud Kinney, Vice President of Innovation and Technology at IMT Corporation

Clifford-Jacobs was not getting consistent, repeatable results from its furnaces. The company also wanted more efficient and automated processes with data acquisition and electronic operating capability.

“We looked at a number of controls companies throughout the Midwest and interviewed them to learn about their experience with system controls and data acquisition,” said Bud Kinney, Vice President of Innovation and Technology at IMT Corporation, the parent of Clifford-Jacobs. “We knew we wanted an integrated system so we started looking at companies that did that as a matter of course. Most companies are limited to traditional controls, but Conrad Kacsik has a lot of experience doing the exact type of job we needed.”

Increasing Demands

Clifford-Jacobs makes forged parts for a variety of clients. Although forging does not generally require as much precision as other types of processes, customers are increasingly demanding, said Kinney.

“We believe that sooner rather than later things like Nadcap will come into forging, and our customers are very interested in us being able to demonstrate that our processes are always in control, even forge heating,” Kinney said. “This project helps ensure that we meet those needs. We couldn’t track things like set-point input values before. That’s another element we wanted to manage.”

The System

Retrofitting Clifford-Jacobs heat treating system.

Conrad Kacsik built a full process temperature control system that includes SCADA software from SpecView. They were able to retrofit the system on Clifford-Jacobs’ existing 16 furnaces, saving the company considerable expense and time. The temperature process control system uses Watlow F4T controllers paired with SpecView SCADA software, which allows for programming jobs/recipes, remote operation, secure (password protected) operation of furnaces and accurate automatic temperature recording. Conrad Kacsik also added alert lights that allow the operators to quickly see the status of each furnace from the shop floor.

H2: Benefits of Temperature Control System Integration

Clifford-Jacobs has noted several beneficial results from the new temperature control system. These include:

  • Increased accuracy. The new system runs each recipe exactly and records the results. The company can also control which employees can adjust temperature settings, preventing operators from rushing jobs with a higher temperature or inadvertently setting the furnace incorrectly.
  • Higher efficiency. With preprogramming, each furnace is always at the exact temperature it needs to be for the given task. An automatic preheat setting also safely prepares the furnace for the workday—eliminating downtime or the need to send an employee in early to start the furnaces.
  • More speed. Clifford-Jacobs can pre-program any recipe it needs, allowing for highly accurate and fast running of complex processes.
  • More convenience. Clifford-Jacobs can operate their furnaces from anywhere with an internet connection, or via an iPad used by an approved employee.
  • Precision for the future. The new system can be part of a Nadcap-approved process should the need arise. The SpecView software and advanced controllers automatically record each job and retain all data for verification.

The Results

“We used to have to use all kinds of resources to provide oversight on temperature control,” said Kinney. “This has given us a heating strategy. We write the recipes we want and just select from those. In addition to that, we know exactly what every furnace is doing at all times.”

The company is also pleased with the increased efficiency. They only heat product when they are ready to run production, and the furnace only uses the exact energy needed for each recipe. They are also saving on staffing, as they used to have to schedule people to ensure the furnace was at the right temperature.

“With this system, we can develop recipes for each part we make, which is both convenient and precise. It’s doing exactly what we expected it to do,” said Kinney.

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Canadian Investments Energize Steel Production, Include New Heat Treat Line

A Chicago-based producer of engineered steel products for rail, energy and industrial end markets recently received funding for equipment upgrades and plant expansions—including the company’s planned installation of a state-of-the-art heat treat line—as part of the Government of Canada’s steel and aluminum fund program created to energize the Canadian steel industry.

EVRAZ North America will receive C$40 million from Innovation, Science and Economic Development Canada’s Strategic Innovation Fund (SIF) steel and aluminum program, which was created last year to help bolster the competitiveness of the industry in Canada.

The $40 million in Strategic Innovation Funds will be part of a $112 million investment over the next three years in EVRAZ North America facilities in Regina and Red Deer, Alberta, focusing on upgrades to steelmaking infrastructure that will improve quality, boost efficiency, reduce emissions and increase capacity, including:

  • Red Deer Heat Treat Expansion: EVRAZ North America is installing a state-of-the-art heat treat line that will greatly increase the company’s capability to provide premium alloy grade quality in the OCTG product range meeting the evolving needs of our customers.
  • Electric Arc Furnace Power Increase: Regina’s electric arc furnace is used to melt scrap metal that is recycled into steel. The project will replace electrical transformers and associated power distribution equipment, including building a new substation feeding the facility’s 138kV SaskPower hydro line.
  • Reheat Furnace Throughput Increase: The reheat furnace at the Regina rolling mill is used to heat steel slab to temperatures of more than 2,200°C for production into coil and plate. The investment in upgraded burner equipment will increase and expand the production capability of the reheat furnace while reducing NOx emissions.
Conrad Winkler, EVRAZ President and CEO

Investments at these facilities will be made between 2019 and 2021.

At a ceremony in Regina, Saskatchewan, EVRAZ President and Chief Executive Officer Conrad Winkler praised the Government of Canada’s actions.

“This government recognizes the challenges facing Canadian steel producers and the thousands of employees working in steel mills across the county, including 1,200 right here in Regina,” said Winkler. “Partnerships such as the Strategic Innovation Fund are crucial to our job-creating, long-term investments.”

The SIF contribution is part of EVRAZ’s North America’s planned, multi-year C$112 million investment into equipment upgrades and expansion at the company’s mills in Regina and Red Deer, Alberta. When completed, the improvements will further boost EVRAZ North America’s steelmaking capacity, reduce emissions, and improve efficiency. The company previously invested more than C$200 million in expansion and upgrades in Regina between 2015 and 2017.

“With this SIF partnership, we can move forward with these investments that will allow EVRAZ North America to maintain and grow its position as an industry-leading supplier for our valued customers in Canada’s energy economy,” said Winkler.

 

Photo credit and caption: EVRAZ North America on Twitter

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Steelmaker to Restart Lone Star Pipe Mill

David B. Burritt, President and Chief Executive Officer

A leading integrated steel producer headquartered in Pittsburgh, Pennsylvania, recently announced it will restart its pipe ill based in Lone Star, Texas.

U.S. Steel Corporation’s No. 1 Electric-Weld Pipe Mill at Lone Star Tubular Operations was permanently idled in 2016 due to challenging market conditions for tubular products created by fluctuating oil prices, reduced rig counts, and high levels of unfairly traded imports. With this restart, the Lone Star No. 1 Mill will provide full-body normalized electric-welded pipe in size ranges 7 inches to 16 inches outside diameter for customers across the U. S., including the very active Permian Basin.

“We are encouraged by an improvement in market conditions and an increased customer demand for tubular products that are mined, melted and made in America,” said President and Chief Executive Officer David B. Burritt.

Douglas R. Matthews, Senior Vice President – Industrial, Service Center and Mining Solutions and Interim Head – Tubular

“We continue to evaluate all options to align our manufacturing capacity with the growing energy market. Restarting the Lone Star No. 1 Mill will give our customers access to the high-quality electric-welded pipe they expect from U. S. Steel,” said Douglas R. Matthews, Senior Vice President – Industrial, Service Center and Mining Solutions and Interim Head – Tubular.

The Lone Star No. 1 Mill has an annual capacity of approximately 400,000 tons. The restart process will begin immediately and will be completed in early third quarter 2019.

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