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USX CORPORATION

Anish Khandelwal 18/009


Manpreet Singh 18/145
Puroo Soni 18/158
Sanjit Sahoo 18/164
Sujit Kumar 18/170

COMPANY BACKGROUND
Assembled in 1901 as the United States Steel Corporation through a series of mergers by JP
Morgan and Judge Elbert Gary
Core was Pittsburgh based Carnegie Steel Corporation
A fully integrated company where supplies of iron ore, limestone, coal were extracted by
mining divisions and transported to steel mills
In 1917, USS was the first corporation inn America to burst through $1bn revenue barrier and
employed 168000 workers
In 1990, USS placed 2 other mills with capacity for 2.6mn tons of finished steel products in
Ohio and California into JVs with Japans Kobe Steel and Koreas Pohang Steel
Currently producing hot and cold rolled sheets, strip and tin products

STEEL (FLAT) MANUFACTURING PROCESS


Step
1

Step
2

Step
3
Step
4

STEEL (FLAT) MANUFACTURING PROCESS


(CONT..)
Blast
furnace

Basic
Oxygen
Converter

Ingot
Molds

1-stand
44
slabbing
mill
Rail transport

Temper/Ski
n Pass Mill

Hot dip final


product

Continuous
Cold
Rolling Mill

6-stand
Finishing
Mill

Roughing
Mill

Criteria for Evaluation

Current Plan

Technological Process
AlternativeTHIN-SLAB CASTING
CONTINUOUS

Not yet
commercially
proven

Two major
innovations as
part of Compact
Strip Production

Being tried by
Nucor Steel, the
largest minimill
steelmaker at its
new greenfield
site

Would require the


caster to run at 4
to 5 times the
conventional
speed

Coupling was a
necessity, not an
option

Capable of
reducing steel
thickness by 50%
for fine grained
steel

Continuous thin slab casting


Coupling of rolling & continuous casting

Situation Analysis
USX Corporation : One of the worlds premier integrated steel
producers

Rapidly changing process technology in the steel industry

Increasing competition from minimill steel manufacturers, who enjoy


the minimill cost advantage
Important to assure that USS maintains a strong competitive position
in the hotly contested North American market for flat rolled steel
products
Current investment would force USS to operate with the installed
technology for at least a decade, before it considers replacement
again

9/13/15

Reduces final cost of sheet and


strip steel production
Cuts energy consumption by
more than half during rolling
process, cue to coupling
Lower capital costs involved
Used equipment technically
similar to proven thick slab
equipment

Option still not commercially


proven
Adaptation of CSP to USSs
existing customer base would be
difficult
Issue in the conceptual
configuration of CSP at Mon
Valley, due to the physical
distance between E.T. and Irvin
Mills
Investing in CSP would cause
USS to commit to the entire
project at the outset
Operating cost savings through
CSP were not encouraging

Negatives- CSP

Positives - CSP

EVALUATION OF PROCESS ALTERNATIVES

STEPS TO BE TAKEN FOR IMPLEMENTING


CSP TECHNOLOGY
Install new thin-slab caster & build a
new rolling mill at E.T. works
Design special rail cars to transport
molten steel to Irvin
Install electric arc furnace at Irvin, to
feed CSP system
Transport cooled thin slabs by rail, to
re-heat & roll at Irvin
Build a new greenfield site with CSP
facility

SUFFICIENT CAPACITY TO CATER TO DEMAND

1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
Total Market
(mt)
85.5 91.4 63.8 72.2 83.7 81.4 77.5 82.9 87.9 85.7

USS's
market
Share (%)
21% 20% 16% 18% 17% 19% 12% 13% 16% 14%
USS's Market
(mt)
17.8 17.8 10.3 12.6 14.2 15.5 9.1 10.8 13.8 12.2
Sheet &
Strip %

45%

64%

68% 62% 69%


USS's Sheet
& Strip (mt)
Total Market
of Sheet &
Strip(mt)

8.0

9.1

7.3

8.6

8.4

38.1 41.2 32.4 41.8 46.7 45.6 44.6 46.9 47.4 47.2 48.3

Market share
of USS in
Sheet &
Strip

USS's
required
Output

19.5
%

19.5
%

15.6 18.1 17.8


%
%
% 18%

8.84

49.4 50.6 51.8 52.9 54.2 55.4 56.7 58.0 59.4

19% 19% 20% 20% 21% 21% 22% 22% 23%

9.29 9.75

Required capacity in 1999=13.50 MT


Current Capacity after upgradation=11+2.6=13.6 MT

10.2 10.7 11.2 11.8 12.3 12.9 13.5


4
4
6
0
5
3
2
Microsoft Excel
Worksheet

Implement the first phase at E.T


works to appease the workers and
wait for the CSP to evolve
If CSP succeeds, start an electric
furnace at Irvin mill without going to
second phase

Else go to Phase 2

SIGN THE PROPOSAL

RECOMMENDATION

THANK YOU