Jakarta, 18. Juni 2018

SMS group at SEAISI - Cold rolling plant concepts customized for emerging markets

Between the 25th and 28th of June, 2018, the SEAISI Conference & Exhibition takes place in Jakarta, Indonesia. SMS group #magazine talked to Torsten Seeger, Project Director in the Flat Rolling Plants Division of SMS group, about the success to serve the emerging markets in South East Asia. Looking at Compact Cold Mills (CCM®), SMS group gained market leadership in recent years. At this year’s SEAISI conference, Torsten Seeger will give a paper about „Cold Rolling Mills by SMS group – flexible plant concepts tailored to the demand of emerging markets“.

How would you characterize the Southeast Asian markets?

It is a fact that the world steel market is driven by overcapacity. However there are regional differences to be considered. Southeast Asia is an expanding market. Looking e.g. at the production of hot rolled sheet and strip in Indonesia, between 2007 and 2016 there was an increase of production of more than 93%. There is also a strong increase of the steel use per capita in this region. But there are other markets with strong expanding tendencies as well. Vietnam shows a strong considerable increase in recent years.

From your point of view as supplier of production equipment: what are appropriate solutions for steel producers operating in emerging markets facing the declining global steel market?

Plant operators are well advised focusing on quality, flexibility and sustainability regarding production technology and equipment. The quality of the equipment is precondition for durability. Flexibility of the equipment is the basis for the option to adapt to future market requirements. As it is true for the fully industrialized countries, there is also the necessity to look at environmental sustainability and digitalization. Making all this available at reasonable investment levels is one of SMS groups success strategies in these markets.

My point is to convince the audience about SMS group being a reliable partner on the supplier side, providing customized technical solutions for every step of developing a highly competitive cold rolling business. Torsten Seeger, Project Director in the Flat Rolling Plants Division of SMS group
Can you give an example for these success strategies?

The most requested type of cold rolling mill on emerging markets is the Compact Cold Mill (CCM®).  One example is the Vietnamese cold strip producer Hoa Sen Group, who ordered the third CCM® in September 2017. Hoa Sen Group is pushing the expansion of cold strip production. SMS group as equipment supplier is attractive to Hoa Sen Group for several reasons. The quality determining core components, like e.g. CVC® plus technology, are provided by German manufacturing of SMS group. Tightly organized order execution is ensured by the regional well known and nearby supplier Esmech Equipment Pvt. Ltd., member of SMS group. This implementation concept comes with reasonable CAPEX on the one hand and low OPEX on the other. SMS group’s CCM® market leadership in is founded on this concept.

What else will you talk about at the SEAISI conference? What is your point?

I will give an insight into appropriate technical solutions for cold strip producers. Looking at the different types of cold rolling mills, there is the reversing type in single and twin-stand design the most flexible one regarding product mix and upgrade opportunities in the sense of growing with the market. This type also comes with moderate invest and operational expenditures. Probably the most economical solution for rolling of large batches and high capacities is the tandem cold mill. It is the flagship among cold rolling mills. My point is to convince the audience about SMS group being a reliable partner on the supplier side, providing customized technical solutions for every step of developing a highly competitive cold rolling business.