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California Steel to Boost Production Capacity by 50%
06/06/2007 - California Steel Industries will invest approximately $60 million in a second walking beam reheat furnace and related services that will allow the company to boost its capacity by a million tons per year.
California Steel Industries, Inc. (CSI) has announced plans to increase total annual production capacity by a million tons with the addition of a second reheat furnace with state-of-the-art environmental technology.
The investment also includes associated additional improvements in cooling water treatment and in slab handling facilities, for a total capital investment of approximately $60 million.
The new natural-gas-fired walking beam reheat furnace employs selective catalytic reduction (SCR) emission control technology and highly efficient burners. Emissions will be lower than those associated with the current reheat furnace, which was built in 1997 and is already rated among the nation's cleanest operating reheat furnaces per ton of steel produced.
The new equipment will give CSI the capability and flexibility to produce up to 3 million tons of carbon steel flat rolled sheet and pipe per year. The company currently ships an average of approximately 2 million tons/year.
Mr. Masakazu Kurushima, CSI’s President and CEO, said the company's expansion had been contemplated for several years but was just recently approved by the company's owners, Companhia Vale do Rio Doce (CVRD) of Brazil (the world's second-largest mining company) and JFE Steel Corp. of Japan (a leading world steelmaker). He said CSI has been producing at or near its production limits in recent years, and the foreseeable growth of the Western U.S. market justifies the additional capacity.
"We are pleased that our shareholders have the confidence in us to approve this major expansion," said Mr. Kurushima. "The second reheat furnace will allow us greater flexibility to serve our customers. It also provides greater security for our operations, and it will allow us to explore growth opportunities and new products which we did not choose to pursue when we were already at full capacity with one furnace.
"Of course, we are also pleased to be able to incorporate the best environmental technology available today. We are proud of our safety and environmental record at CSI and this only enhances our performance in these areas."
San Bernardino County has already issued a Conditional Use Permit for CSI’s proposed additional reheat furnace. The company is working with the South Coast Air Quality Management District and other regulatory agencies to complete the permitting process to build and operate the new facility. Technical specifications are being finalized in discussions with equipment suppliers.
CSI says production from the new facility could come on-line in approximately 24 months.
