ArcelorMittal MT announced that it has spent more than €7 million (around $7.4 billion) to upgrade a set of turbine blowers, in order to reduce energy consumption at blast furnace no. 5. The turbine blowers infuse old air into the blast furnaces, and are important to the technological flow of the unit.
Pertaining to the investment, ArcelorMittal has cut steam consumption by half. This investment is a part of company’s extended program that is aims to increase energy efficiency, thereby making immediate and long-term savings in energy consumption.
The turbine blowers are more efficient and flexible in the way they can be used. The company redesigned the rotors and the diaphragms of the two compressors and turbines, the maintenance of all technological control, balance and command circuit and then started their operation. The turbines use only 32—40 tons of steam per hour compared with 70 tons before the modernization.
ArcelorMittal can now generate electricity from the saved steam that can be used in the steel production process. A high level of automation has also been implemented, improving the efficiency of the operation.
The investment is part of ArcelorMittal Europe’s ‘Energize’ Project which aims at cutting energy consumption by 15% over the next five years. The project includes a number of areas, from energy-intensive equipments and processes to office activities and involves all parts of the business, from operations, to maintenance, investment and purchasing. Over the last decade, the company invested almost €800 million in upgrading its technology, modernizing the production facilities and replacing obsolete equipment which resulted in efficiencies throughout the production chain.
ArcelorMittal posted loss in the fourth quarter of 2014 because of lower iron-ore pricing that weighed on its mining segment and reduced steel selling prices. Weak demand from China, a key market, continued to hurt iron ore prices in the quarter.
The company reported net loss of $955 million or 53 cents per share in the fourth quarter, which narrowed from a loss of $1.2 billion or 69 cents per share in the year-ago quarter. The company saw lower impairment and depreciation charges in the reported quarter, while the year-ago quarter’s results were dragged down by restructuring charges of $379 million.
Barring one-time items, loss was of 43 cents per share for the quarter, higher than the Zacks Consensus Estimate of a loss of 16 cents.
Revenues went down 5.7% year over year to $18.7 billion in the reported quarter, missing the Zacks Consensus Estimate of $19.5 billion. Sales were lower as a decline in average steel selling prices, drop in marketable iron ore shipments and reduced iron ore reference prices more than offset improved steel shipments.
ArcelorMittal currently holds Zacks Rank #4 (Sell).
Other companies in the basic materials sectors that warrant a look include Kobe Steel Ltd. KBSTY, ThyssenKrupp AG TYEKF and Norsk Hydro ASA NHYDY with all retaining a Zacks Rank #1 (Strong Buy).
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