USSK orders new electrical steel plant from Tenova

US Steel Kosice (USSK) has ordered from Tenova LOI Thermprocess an annealing and coating line (ACL) for dynamo steel strip.

The new unit named Dynamo-Line no.4 will meet the highest requirements for the production of non-grain oriented (NGO) electrical steel, according to technology supplier Tenova.

In addition to thin sheet, ultra-fine sheet and galvanized strip, USSK has produced non-grain-oriented electrical steel sheet for more than 30 years. The steelmaker is realising extensive modernisation measures to improve product quality, including dismantling two outdated annealing and coating lines and replacing them with the new annealing and coating plant, Tenova observes.

Last January USSK said it plans to build a new 100,000 tonnes/year capacity NGO electrical steel line at a cost of $130 million (see Kallanish passim). The new line will enable production of silicon NGO electrical steel, which is in increasing demand in automotive and generator manufacturing. Commissioning is expected by end-2020.

Due to increasing raw materials costs and reduced European steel demand coupled with elevated imports, however, USSK said earlier this month it is planning to indefinitely idle blast furnace no.2 (see Kallanish passim).

USSK’s shipments declined -6% on-year in the first quarter to 1.06 million net tons, with capacity utilisation dropping 11 percentage points to 94%. Besides reduced shipments hampering earnings, USSK was affected by higher costs for coal and outside purchased coke in Q1, as well as higher planned outages.