Badische Stahlwerke GmbH

Rolling Mills

Gerdau Annual Rolling Mill Meeting

Rosario, 3rd of November 2010

By
Lars Hentschel/ Ralph Ridder / Michel Hamy
- Badische Stahlwerke GmbH -

-1-
 Agenda

BSW History
BSW Today
- Company
- Steel Plant
- Rolling mills
Mills key to success
- Part of a concept
- Running principles and results
- Maintenance concept
- Closing remarks

-2-
 Agenda

BSW History
BSW Today
- Company
- Steel Plant
- Rolling mills
Mills key to success
- Part of a concept
- Running principles and results
- Maintenance concept
- Closing remarks

-3-
Lost-time-injury rate

No. of near-miss reports

July
2010

-4-
By introduction of the EVA*-process we improve
our safety standard
SAFETY AT BSW
LTIFR IISI
300 LTIFR Steel Plant
282,6
LTIFR Rolling Mill Steps of
264,8 behavior change
250
241,4

Appreciative
communication
200

173,1
166,3
152,5
Thoughtfulness
150

113,3 118,5
109,4 112,6 109,9 117,9
110,7
100 99 104,3
105,8 Change of
105 93,9
88,2
87,9 attitude
70,9 74,2
65,4 67,4
60,5 60,3
43,9 52,1 54,5 53,5
50 59,7
46,1 52,8
45,6
Behavior
35,6 36,3 43,6 45,4 40,8 30,1
29,8 32 29,1 34,1 27,2 29,66 modification
26
17,8
15 14,7 11,9 14,8 16,4 16,0513,11
14,8 16,4 9,5 12,7 16,4
5,1 6,3
0
19 9
19 0
19 1
19 2
19 3
19 4
19 5
19 6
19 7
19 8
19 9
19 0
19 1
19 2
19 3
19 4
19 5
19 6
19 7
19 8
20 9
20 0
20 1
20 2
20 3
20 4
20 5
20 6
20 7
20 8
09
7
8
8
8
8
8
8
8
8
8
8
9
9
9
9
9
9
9
9
9
9
0
0
0
0
0
0
0
0
0
19

EVA = Einstellungs- und Verhaltensnderung in der Arbeitssicherheit

(Change of attitude and behavior on safety)

-5-
Willy Korf
1929-1991
-6-
The first mini-mill in Germany
MILESTONES OF BADISCHE STAHLWERKE
Annual production
1955 Foundation of "Sddeutsche Drahtverarbeitungs-GmbH in 1.000 t
(wire mesh plant)
1966 Start-up of Rolling Mill I for reinforcing bars
1968 Foundation of BSW AG
Start-up of: - 2 UHP electric arc furnace
- 2 continuous casting units
- rolling mill no. 2 for plain and ribbed wire rod 1969 150
Designed for an annual production of 350.000 t
1983 Bankruptcy of Korf group, restructuring of BSW 1979 > 500
1984 Implementation of four-times slitting at the bar mill,
start of production of ribbed reinforcing steel in coils
1993 Partly revamping of wire rod mill 1989 >1.000

1994 Start-up of slag processing unit

1998 >1.500
2003 New permit for 2,2 mio t/a steel
2006 815 employees at BSW 2005 >2.000
2009 New permit for 2,8 mio t/a steel
2010 871 employees at BSW 2009 >2.200
-7-
 Agenda

BSW History
BSW Today
- Company
- Steel Plant
- Rolling mills
Mills key to success
- Part of a concept
- Running principles and results
- Maintenance concept
- Closing remarks

-8-
 BSW steel plant and rolling mills

Strasbourg, France

Strategic Scrap
Yard
Wire
Processing

Scrap Yard

-9-
High availability of the management by a high
degree of presence on site
BSW ORGANISATION IN 2010

Managing Director Managing Director

Michel Hamy Ralph Ridder

Quality Department Raw Material Procurement

Operational Safety
Product development Logistics

Steel Plant Environmental Protection Purchasing

Personnel and
Rolling Mills Controlling
Administration

Electrical Finance & Accounting

Maintenance DP

Mechanical Total staff Shipping and

Maintenance approx. 871 Shipment Planning

- 10 -
BSW achieved an outstanding increase in
productivity
ROLLED PRODUCTS ALL EMPLOYEES (WITHOUT APPRENTICES)

manhours/ton tons/man and year

3,5 3.500

3 3.000

2,5 2.500

2 2.000

1,5 1.500

1 1.000

0,5 500

0 0
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

- 11 -
Added value by processing DENMARK

and sales
PRODUCTION- AND SALES LOCATIONS

Steel production in Kehl POLAND

10 locations for
NETHERLANDS
Bohmte Mittelland Kan.

processing Lbbecke

at significant
waterways and/or with rail Mlheim Glaubitz
connection BELGIUM

Hattersheim

Main
CZECH REPUBLIC

Main-Donau Kan.
Eberbach

Ebersbach
FRANCE Kehl Plochingen
Steel production
Dinkelscherben
Processing
Sales
AUSTRIA
SWITZERLAND
- 12 -
BSW Material Flow 2009

Scrap
2.484.041

Steel Plant
2.203.879

Rebar Mill Wire Rod Mill

662.142 1.450.572

- 13 -
 Agenda

BSW History
BSW Today
- Company
- Steel Plant
- Rolling mills
Mills key to success
- Part of a concept
- Running principles and results
- Maintenance concept
- Closing remarks

- 14 -
BSW Steel Plant

Production 2009

2.203.879 tpy

- 15 -
Steelmaking process at BSW

4 Types of Scrap
Turnings Shredder Sheets Domestic Scrap Operational Data 2009 No.1 No.2
Consumption kWh/t 363 367
Oxygen Nm/t 39 38
1. Bucket
Alloys Max. secondary voltage 1.050 1.050
Active power input (MW) 70 73
Secondary current (kA) 58 58
2. Bucket Liquid Steel
1600 C
Charging weight (mt) 113 112

Ladle Tapping weight (mt) 99 98

Melt Shop Slag

Tap to tap time (min) 41,7 40,6

Pon-/Poff-times (min) 30,8/10,9 29,9/10,6
Ladle Furnace
Continuous Casting Heats/day 70
Ladle Ladle Ladle
Tundish (with two furnaces)
5 Strands
Mould=130 x 130 mm Daily productivity (t/d) 6.919 t billets per day
Billet 14m

Pusher Furnace
Processing
for Road Rolling Mills
Building Material
Products

(2 times)
- 16 -
Best performances with 100 t/heat

Production Heats Tap-to-tap

(min)

monthly 205.825 tgb 2.046 (2 EAFs) 41,1

(Oct. 2009)

daily 7.803 tgb 77 (2 EAFs) 37,7

(Apr. 2010)

- 17 -
Steel plant development of annual production
PRODUCTION OF 2 EAFS [tgb X 1.000]

2,400

2,200

2,000

1,800

1,600

1,400

1,200

1,000

800

600
1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

- 18 -
 Agenda

BSW History
BSW Today
- Company
- Steel Plant
- Rolling mills
Mills key to success
- Part of a concept
- Running principles and results
- Maintenance concept
- Closing remarks

- 19 -
 Bar mill BSW (2009) Vmax = 10.5 m/s
Capacity: 680.000 t average hourly output (operating time !) = 86.1 t/h
average diameter = 15.7 mm
Roughing Train Finishing Train
7 stands (H-V) 8 stands
Pusher furnace 560-420 mm 350 mm
Capacity: 90 t/h
heated by natural gas Start-stop Shear
Rake type cooling bed Strapping station and
weighing equipment
Snap Crop shear Shear BSE Pinch Roll
Shear Tempcore
cooling line
Billet Table Cold shear
20m 45m 18m 35m 45m 69m
232m

- 20 -
Annual production bar mill 2009

t/a t/d
Production per year
140000 2500
Productivity (t/d)

120000
2000

100000

1500
80000

128.958,30
122.696,60
116.123,50

60000
1000
84.575,70

40000

19.769,10
18.521,80

60.038,50

17.476,40
13.880,30

10.583,80
500
35.303,50

32.792,30
20000 557,50

605,10

259,40
0 0
10x4 12x4 14x3 16x3 18 20 22 24 25 26 28 30 32 34 40

- 21 -
 Rebar production and key figures of the bar mill (2009)

Production:
Steelplant 55,9 % hot charging
Billets - Monthly production 55.129 t
44,1 % billet yard - Rolled dimensions 15
404 C
- Productivity 86,1 t/h
Billet stock - Availability 87,4,3%
Scrap return

Reheating - Yield 95,6%

furnace
Consumption:
bar mill
- Hot charging 55,9% / 404C
- Gas consumption 261 kWh/t
1-strand bar mill - Power consumption 58 kWh/t

Delays total: 8,5%

- Minor delays (< 5 min) 4,4%
15 stands
- Operational 2,0%
- Mechanical 1,3%
- Electrical 0,5%
- Others 0,4%
Tempcore
Size changes & preparation 4,0%

Rebars 10 -40mm Customer

- 22 -
Development of the bar mill (1998 2009)

Training and motivation of personnel

1998 473.000 t Increasing of working time due to higher billet quantity
1999 471.000 t Installation of stand 0, new pass design roughing train
2000 574.000 t Initial pass 130 x 130 mm / Slit Rolling 16 mm three times
2001 612.000 t Increasing of working time due to higher billet quantity
2002 611.000 t Production of remaining billets MS-Rod Mill
2003 598.000 t Production of remaining billets MS-Rod Mill
2004 629.000 t Production of remaining billets MS-Rod Mill
2005 644.000 t Production of remaining billets MS-Rod Mill
2006 670.000 t Increase of finishing speeds
2007 680.000 t Change to production cycle of 9 weeks
2008 686.000 t Improvement of production cycle
(more volume per dimension)
2009 662.000 t Fine tuning

- 23 -
Rebar mill

DEVELOPMENT OF ANNUAL PRODUCTION [t X 1.000]

800

700

600

500

400

300

200

100

0
1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

- 24 -
Rebar mill

DEVELOPMENT OF PRODUCTIVITY [t/h]

90

85

80

75

70

65

60

55

50
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

- 25 -
 Rod mill BSW Vmax = 97 m/s
average hourly output (operating time !) = 185, 8t/h
average diameter = 8.4 mm
Pusher furnace
Capacity: 180 t/h (280t/h hot)
heated by natural gas Roughing Train Intermediate train
9 stands 4 stands
580-475 mm 375 mm

Billet Table

28m 20m 74m 25m 46m 71m

264m

- 26 -
Annual production wire rod mill (plain) 2009

t/a t/d
Production per year
250000 6000
Productivity (t/d)

5000
200000

4000
150000

3000

212641
100000 151695,3
150118,3

2000

104547,1

24830,8
90064,2

18614,5

50000

13847,9

10222,2
1000

46166,8
4745,1

4402,5
3308,1

1507
0 0
5,5 6,0 6,3 7,0 7,5 8,0 8,5 9,2 9,8 10,7 11,0 12,0 12,9 13,3

- 27 -
Annual production wire rod mill (reinforced) 2009

Production per year

250000 6000
Productivity (t/d)

5000
200000

220,594.0
4000
150000

3000

186,337.0
100000
2000
109,525.0

85,969.0
50000
1000
2,134.0
9,299.0

0 0
6.0 7.0 8.0 10.0 12.0 14.0

- 28 -
 Wire Rod production and key figures at BSW (2009)

Billets 85,7 % hot charging

Steelplant Production:
14,7 % billet yard - Monthly production 120.881 t
646C
- Average diameter 8,4 mm
Billet stock

Scrap return
- Rolled dimensions 20
Reheating - Productivity 185,8 t/h
furnace - Availability 91,0%
rod mill
- Yield 97,2%

Consumption:
2-strand rod mill
Wire Processing - Hot charging 85,3% / 646C
(Lattice girder, meshes,
- Gas consumption 168 kWh/t
steel strip, nails, rebar,
reinforcing in coil) - Power consumption 94 kWh/t
25 passes
Delays total: 7,6%
- Minor delays (<5min) 1,5%
- Operational 2,8%
- Mechanical 1,5%
- Electrical 1,1%
- Others 0,6%

Customer Wire rod 5,5-14 mm Size changes & preparation: 1,5%

- 29 -
Development of wire rod mill (1998 2009)

Training and motivation of personnel

1998 1.028.000 t Increasing hot charging 652C 81%
1999 1.060.000 t Hot charging 655C
2000 1.116.000 t Initial Pass 130*130 mm / Hot charging 695C, 83%

2001 1.128.000 t Hot charging 715C, 86.5%, new roughing train #0 - #4

2002 1.182.000 t New reheating furnace 180/280 t/h
2003 1.251.000 t New reheat furnace fine tuned, rolling families optimized
2004 1.271.000 t New roughing & intermediate stands #5-#12
2005 1.311.000 t Fine tuning
2006 1.322.000 t Fine tuning, reduction of finishing speeds for special products
2007 1.409.000 t Change to production cycle of 9 weeks, less smaller sizes,
less number of sizes
2008 1.430.000 t Improvement of production cycle (more volume per dimension)
2009 1.451.000 t Fine tuning, reduction of delay rate

- 30 -
Wire rod mill

DEVELOPMENT OF ANNUAL PRODUCTION [t X 1.000]

1.600
1.500
1.400
1.300
1.200
1.100
1.000
900
800
700
600
500
400
300
200
1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

- 31 -
Wire rod mill

PRODUCTIVITY [t/h]

200
190
180
170
160
150
140
130
120
110
100
90
80
70
60
1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

- 32 -
 Agenda

BSW History
BSW Today
- Company
- Steel Plant
- Rolling mills
Mills key to success
- Part of a concept
- Running principles and results
- Maintenance concept
- Closing remarks

- 33 -
BSW Guidelines

Besides a high plant availability the human factor is our main factor for
success.
"Management on the spot" It is not the computer, but people who
communicate.
Conscious innovative investment program, in order to keep the processes
continuously on a state-of-the-art technical level BSW is 42 years old!
Love for detail leads to cost consciousness among the whole staff.
Logistics are a significant cost lever. We are grateful that BSW is located at
the river Rhine. Without connection to the Rhine, an annual production of
over 2 million tons would not be possible.
After a successful process orientation (productivity) there is also a focusing
on products and flexibility (market).

- 34 -
The BSW concept was clear ...

ANNUAL PRODUCTION BSW

Production Steel Plant

Production Wire Rod Mill
2,20 Mio t/a Production Bar Mill 1,45 Mio t/a
2400
1600
2200 0,66 Mio t/a 1500
1400
2000
800 1300
1800 1200
700 1100
1600
1000
600
1400 900

500 800
1200
700
1000 400 600
500
800 300
400
600 200 300
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
200
100

0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Cost leadership by increase of production

- 35 -
... and is clear for the future

ANNUAL PRODUCTION BSW

Production Steel Plant

Production Wire Rod Mill
2,20 Mio t/a Production Bar Mill 1,45 Mio t/a
2400
1600
2200 0,66 Mio t/a 1500
1400
2000
800 1300
1800 1200
700 1100
1600
1000
600
1400 900

500 800
1200
700
1000 400 600
500
800 300
400
600 200 300
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
200
100

0
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Cost leadership by increase of production

+ Higher flexibility in order to react to customer requirements
+ Love for detail (attention to details) for cost optimization
+ Consistency in performance and results

- 36 -
The core of concrete innovation and market leader
in concrete reinforcing technology

in 1.000 t in %
1.600 35%

1.400 30%

1.200
25%
1.000
20%
800
15%
600
10%
400

200 5%

0 0%
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Domestic Export Market share Germany

- 37 -
All important levers to achieve an effective and
efficient operation are considered by BSW

Safety Personnel Quality

Scrap Customer
Efficiency
Energy Market

Innovation Environment
Processes (ISO 14001)
Logistic

- 38 -
 Agenda

BSW History
BSW Today
- Company
- Steel Plant
- Rolling mills
Mills key to success
- Part of a concept
- Running principles and results
- Maintenance concept
- Closing remarks

- 39 -
 Rolling Mill Structure and Operation

Organisation:
5 shift system (35 h/week)
Production, mech. Maint.: 179 b.c.p.
Engineers, Supervisor: 19 w.c.p.
Total: 197

Electr. Maint. 16 b.c.p

Engineers, Supervisor: 4 w.c.p.
Total: 20

Bar Mill: Wire rod Mill:

Max. capacity: 100 t/h Max. capacity: 180 t/h (cold) / 285 t/h (hot)
Billet size: 130 mm * 14 m Billet size: 130 mm * 14 m
Number of strands: 1 Number of strands: 2
Rolling speed max.: 10 m/s Rolling speed max.: 95 m/s
Hot charging: 56% - 404 C Hot charging: 85 % - 646 C
Gas consumption: 261 kWh/t Gas consumption: 168 kWh/t
Elec. consumption: 58 kWh/t Elec. consumption: 94 kWh/t

Production: Production:
Rebar - Tempcore: BST 500 S Wire rod: 5,5 - 13,3 / St 34, St 37, St 44
Dimensions: 10 x 4 18 x 2 22 x 1 34 x 1 rebar coil: R 6,0 - 14,0 BSt 500 S
12 x 4 20 x 2 25 x 1 40 x 1 coil weight: 1.800 kg
14 X 3 28 X 1
16 X 3 32 X 1 Total output: 1.450.572 t/y - 21 shifts/w - 2009
Bar length: 10 - 20m 58 % plain
Total output: 662.142 t/y - 2009 42 % reinforced

- 40 -
 BSW Rolling Mills Organisation
Management rolling mills
Rolling mill manager 1 Project follow up
Secretary 1 Project/Processengineer 1

Production Rolling Mill service Productio Planing/techn. Reporting

Superintendent 1 Superintendent 1 Superintendent 1

Engineer 1
Technician 1
Project Technician CAD 1 Clerk 3

Teamleader Roll/Guideshop 1
Supervisor Mechanics 2

Project Technician 1

Shift Schicht
1 2 3 4 5 T. Walzwerkservice 1 2 3 4 5 2S T
Supervisor 1 1 1 1 1 2 Foreman Guide fitting 2
1st guide fitter 1 1 1 1 1 1
bar mill + Schicht Guide fitter 1 1 1 1 1 4 2
wire rod mill 1 2 3 4 5 T. Foreman roll conditioning 2
Junior supervisors 1 1 1st fitter 1 1 1 1 1
Foreman 2 2 2 2 2 fitter 2
Rollergroup 7 7 7 7 7 Foreman mech. Maint. 1 1 1 1 1
Finishing group 10 10 10 10 10 1st fitter 1 1 1 1 1
Billet dispatching gr. 4 4 4 4 4 Summen 5 5 5 5 5 10 3
reliefman 4 4 4 4 4
Total 38
Summen 28 27 27 27 28
Total 137

Total worker Employees Total

Main Relief Total Workforce
Management 3,0 3,0
Production planning 5,0 5,0
Production planning 117,0 20,0 137,0 8,0 145,0
Rolling mill service 38,0 38,0 6,0 44,0

Total 155,0 20,0 175,0 22,0 197,0

- 41 -
Guidelines for Rolling Mill Supervisors

The understanding of key tasks of a supervisor is demonstrated by the fact

that he implements and continuously develops his own professional
competences
Agreement on objectives
- internal personnel development (develop perspectives)
- technical and organisational improvements
Discipline and loyalty
- Advocate without reservation all results that have been jointly agreed on
Participate in conciliating different interests
- Mediate in case of conflicts of interest

The supervisor represents the connecting link between superintendents and

employees
The supervisor is the person of confidence for his shift
Provide feedback
- Inform openly
- talk friendly about pleasant and unpleasant issues
- 42 -
Guidelines for Rolling Mill Supervisors (cont.)

Keep the balance in both directions

Qualify employees
- Professionalism
- Behaviour in a team

Coordinate, e.g. during reconstruction and repair down-times

- Use of personnel
- Work cycles

- 43 -
Investment in our people leads to high
qualification
PEOPLE

Engineer level
- Technical seminars
- Interdisciplinary job training
- BSE project assistance
- Management on the spot
Supervisor level
- Technical seminars
- Systematic training of young
talents
- BSE project assistance
Operator level
- Training on the job
- Seminars of "Employer's Liability
Insurance Association"
(conflict management, stress, )
- Instructor qualification training

- 44 -
 Corporate basic and advanced training 1996 2009

250
8

2 8
200 5 2 60
3 5 2
3 2 8
6 39 5 50
38 40 8
50 6 2 11
35 48
150 38
50
39 45 50
39 4
9 30 33 19 5
100 13
3 42
147 152
5 28
16 107 103 114
16 10 99 102 93
50 11 108 117
102
44 51
32
0
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Apprentices Laterals Internships College graduates Scholarship holders

 Organisation Production Department

Supervisor
(Bar + Rod Mill)

Dispatching group

4 working places + 1 furnace

Foreman Bar Mill Foreman Rod Mill Mechanical group

deputy supervisor deputy supervisor
temporary Fitters + roll and guide shop
38 workers
Roller group Roller group

3 working places 6 working places

1 reliefman 1 reliefman

Bar mill Finishing area Wire rod mill

temporary
4 working places 6 working places
1 reliefman 1 reliefman

- 46 -
Organisation Roller Group

Supervisor (Bar + Rod Mill)

Foreman Foreman
Deputy supervisor Deputy supervisor

1st roller finishing mill 1st roller finishing mill

Roller - main pulpit Roller - main pulpit

Roller roughing mill
Roller finishing block
Furnace man

Reliefman

Temporary working place Temporary working place

depending on qualification Reliefman
depending on qualification

- 47 -
Organisation Finishing Group

Finishing Department Finishing Department

Bar mill Rod mill

Operator (cooling bed) Production fitter

First man First man Operator binding

Crane driver crane 11 Operator coil Operator labeling

collecting

Operator cold shear Operator crane

and coiler
Operator binding
Operator tilting chair
and labeling

Reliefman Reliefman

- 48 -
Organisation Dispatching Group

Bar mill Rod mill

Dispatcher
First man

Operator

Crane Driver crane 9

Crane Driver crane 10

- 49 -
 Maintenance Rolling Mill BSW
Production Service

Prepared reconstr.
Trouble shooting

Inspection tours
Delay

Modification Evaluation Scheduled

of facilities analysis Shift report
routine check

Work schedule
preventive maintenance planner + service supervisor
determination of work
determination of personnel
switch-off schedule

Instruction of personnel Ordering subcontractors

Realisation under supervision of planner

Planned change of dimension modifications repair under scheduled unplanned
acc. to plan supervision routine checks work

Remaining work
Production
Finished work postponed
statistics check results

- 50 -
Target-orientated working cycle

production targets, costs, quality

rationalisation, standards, analysis of work
motivation, coordination, convinced staff

Target
- Objective -

Control Planning

Implementation Organisation

- 51 -
Standardisation
Training manuals help to visualise

- 52 -
Controlled growth in productivity
CONSISTENCY ROLLING MILL MONTHLY AVERAGE TONS PER DAY

- 53 -
 Targets are set and tracked
KEY PERFORMANCE INDICATORS WIRE ROD MILL 2009

Volume
nominal [To]
Volume
actual [To]
Daily prod.
nominal [To/T-BZ]

Daily prod.
actual [To/T-BZ]

Productivity

Yield [%]

Average
diameter [mm]
Delays without
short delays
Power consumpt.
Current [kWh/To]

Hot charging [%]

Average
temperature [C]
Natural gas
[kWh/To]]
Operating time
actual [h]

Operating time
target [h]

- 54 -
 Targets are set and tracked
KEY PERFORMANCE INDICATORS WIRE ROD MILL 2009

Volume
nominal [To]
Volume
actual [To]
Daily prod.
nominal [To/T-BZ]

Daily prod.
actual [To/T-BZ]

Productivity

Yield [%]

Average
diameter [mm]
Delays without
short delays
Power consumpt.
Current [kWh/To]

Hot charging [%]

Average
temperature [C]
Natural gas
[kWh/To]]
Operating time
actual [h]

Operating time
target [h]

- 55 -
Delay times Bar Mill 2009

Mill components

Water supply, lightning, storm

Quality problems

Special grades, trials

Crane 9/11

Charging rack
Pusher furnace
Stands and gear-boxes 0-14
Looper tables

Shears roughing&finishing train

Tempcore cooling line
Pinch roll and dividing shear

Siwtch, cooling bed, roller tables

Cold shears
Binding unit, scale, labeling station

Guides
Initial pass failure

Motors and controls

Others

Short delays < 5min

Total time
Number
Average Duration

- 56 -
Delay times Wire Rod Mill 2009

Mill components

Water supply, lightning, storm

Quality problems

Special grades, trials

Crane 9/11

Charging rack
Pusher furnace
Stands and gear-boxes 0-14
Looper tables

Shears roughing&finishing train

Tempcore cooling line
Pinch roll and dividing shear

Siwtch, cooling bed, roller tables

Cold shears
Binding unit, scale, labeling station

Guides
Initial pass failure

Motors and controls

Others

Short delays < 5min

Total time
Number
Average Duration

- 57 -
We are planning long-term and stick to the plan
PLANNING OF PLANNED DOWN DAYS AND GROUP/PASS-CHANGES

- 58 -
 Agenda

BSW History
BSW Today
- Company
- Steel Plant
- Rolling mills
Mills key to success
- Part of a concept
- Running principles and results
- Maintenance concept
- Closing remarks

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It is important to see the whole picture to make
the right decisions and to follow the right
strategy
FOCUS ON DIRECT COST FOCUS ON INDIRECT COST

Limited market Strong market demand

Low sales prices Attractive sales prices
Low contribution margin per ton High contribution margin per ton

Indirect Costs
Direct Costs

Direct Costs
Indirect Costs

Cost saving (expenditures) is crucial High availability and operation time

required to meet market demand
Indirect costs are in this situation not
that important because additional output Focus on time, spend more for direct
would only increase stock level and bind maintenance cost in order to reduce indirect
capital cost
In this case it is possible to increase the risk Achieved additional contribution margin is
of delays, while less money is spent for higher, than expenditure for maintenance
maintenance activities

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 schematic
MAINTENANCE COST CURVE
Costs

Where is your position?

95,3 %
Availability
95 %

Total Costs

? BSW?
Direct Costs
? (i.e. preventive
Maintenance)

Indirect Costs

Cost Maintenance Intensity

Optimum

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Maintenance costs increased continuously

SW+WW 1+WW 2
SW
WW 1
WW 2

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 WE/02.05.05

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Maintenance costs per t increased continuously

SW
WW 1
WW 2

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
WE/02.05.05

- 63 -
Possibilities of saving

1. Risk estimation

Maintenance costs 1,5 3,0 million

less
Material costs

Contractors

Own maintenance

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Possibilities of saving

1. Risk estimation
2. Contract services replacement

Saving by optimisation of
Maintenance costs 1,5 3,0 million the efficiency of the own
less maintenance.
Material costs

Contractors
Insourcing

Own maintenance

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We figured out three issues to focus on!
MAJOR ISSUES CONCERNING MAINTENANCE AT BSW IN 2005

Too little integration of production team into

1. Integration of maintenance processes
production team Lower responsibility and less care for High costs for
equipment by operator maintenance and
spares parts
Unconscious handling
Strong wear

Strong separation between the sectors,

although the activities are not that different
2. Capacity balance
The need of employees were counted for each
sector More contracting
Free capacities between the ranges are not
used
Experiences of sectors are not exchanged

70 % of the BSW maintenance employees

work in the 5-shift-System (112 of 162)
3. Shift work
Shift work is primarily a risk insurance.
The effectiveness of standard works is smaller. More contracting
No comprehensive job planning
Only absolutely necessary work is done, other
jobs shifted to dayshift or shutdown day
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 The trend is positive
MAINTENANCE COSTS PER T

SW
WW1
WW2

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

- 67 -
 Huge effort in maintenance leads to an incremental
increase in availability and cost saving
schematic
MAINTENANCE COST CURVE
Costs

95,3 %
Availability
95 %

Total Costs

higher
availability Direct Costs
(i.e. preventive
Maintenance)
Cost
advantage

Indirect Costs

Cost New Cost Maintenance Intensity

Optimum Optimum

- 68 -
 Can maintenance efficiency be measured?

BEST PRACTICE MAINTENANCE COST PORTFOLIO ROLLING MILL

Development

Maintenance
Index [/(t*%)]

Potential

Attention
Cost /$ per ton

Good

BSW
rolling mills

Source: BSE Database

* Availability = Operation time Delays Pass Changes

Operation time
Operation Time = Calendar time yearly shut downs
Cost portfolio bar mill

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Cost portfolio wire rod mill

- 71 -
 Agenda

BSW History
BSW Today
- Company
- Steel Plant
- Rolling mills
Mills key to success
- Part of a concept
- Running principles and results
- Maintenance concept
- Closing remarks

- 72 -
Closing remarks
Summary

Improving the standards of safety

Continuous growth in productivity with focus on consistency

Only highly qualified personnel leads to efficiency

"Connecting" steel plant and rolling mills to one operation unit

- 73 -
BSW investigates in production as well as in
environmental features
BSW MAIN DATA TODAY & FUTURE
today next step
2,2 Mio. t/y 2,4 Mio. t/y

Scrap yard 45.000 t capacity, Scrap yard with same capacity, but
4 cranes, 3 scrap ferries 4 scrap ferries & new railway
layout
2 EAF (100t tapping weight)
2 EAF (100t tapping weight)
2 90MVA transformer / 71 MW
active power input 2 90MVA transformer / 74 MW
active power input
Off-gas system with 2 bag houses
New Emission Control System
2 LF (Clean Gas) for up to 2,8 Mio. t/y
2 CCM (5 strand each) 2 LF
Rebar mill CCM#1 (5 strands),
Wire rod mill new CCM#2 (6 strands)
Rebar mill
New wire rod mill
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 Thank you
for your attention !

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