The business proposition of Harsco Metals is a unique combination of metal lurg ica l knowledge and an unparall eled globa l commercial footprint... Recycling International - March 2011
I MILL SERVICES By Gert Van der Have Harsco: delivering efficiency through know-how The bus i ness proposition of Harsco Meta ls is a unique combinati on of metal lurg i ca l knowl edge and an unpara ll el ed gl oba l commercial footprint. In this article, Recyc li ng International spotlights the activities of an innovative corporation which assists stee l mi lls with their scrap supply efficiencies and with their on-site environmenta l improvements. TJlere have been times when 'outsourcing' I was a dirty word, mostly used as a means to reduce labour costs by hiring lower-wage work- force alternatives. But 'outsourcing' for Harsco Metals entails something entirely different: apart from hiring human resource capacity, it means that mill operators are acquiring the knowledge and expertise of a global specialist in metal recovery and steel mill operations. Headquartered in the UK, Harsco Metals is often described as a 'company within the company' and functions as a link between the scrap sup- plier and the ladle furnace, depending on its contract with the client. The company, which used to be branded as Multiserv until January 2010, is a unique firm operating on site at the works of scrap metal consumers such as steel mills and non-ferrous metals manufacturers. Harsco's history The core of the company's main competences dates back almost a century. It is the story of a Dutch immigrant to the USA named Eric Heck- ett: as an engineer, he was responsible for installing scrap metal reclamation sites from 1920 onwards in Europe, and two decades later in the USA. His biography shows that he held several patents on metal reclamation technolo- gies in the early 20th century. In 1956, his company- known as Heckett Engi- neering- was acquired by the Harrisburg Steel company (Harsco) and continued under this umbrella as one of its divisions. In 1989, Heck- ett acquired and merged with the European leader in mill services- France-based Multiserv - and formed Heckett Multiserv. 'Multiserv was strong in metal recovery in Europe and Asia; says Steve Baines, Marketing Manager for Harsco Metal s. 'while Heckett was leading in the USA at that time . .' Harsco used to be a holding company for many firms but, under the leadership of current CEO Salvatore Fazzolari, it brought all of these together under one integrated company - hence Multiserv became Harsco Metals. Today, Harsco Metals operates service centres at 160 metal manufacturing sites around the globe, the lion's share of which are steel mills. The division accounts for one third of Harsco's revenues and employs 10,000 people; the other divisions cover infrastructure, rail, industrial services and minerals. 'For example, we have a fleet of 3000 vehicles on site; notes Mr Baines. Expanded portfolio The company has grown into a diversified stock exchange-listed entity turning over US$ 1.1 billion in 2009 and US$ 1.5 billion in the previ- ous year. Throughout this development phase, however, Beckett's metal slag reclaiming tech- nology has retained its position as one of the company's core activities. Over the decades, Harsco Metals and its pred- ecessor Multiserv expanded its steel mill service portfolio to include on-site logistics, material handling, quality and radioactivity inspections,
Transcript
I MILL SERVICES By Gert Van der Have
Harsco: delivering efficiency through know-how The business proposition of Harsco Meta ls is a unique combination of
metal lurg ica l knowledge and an unpara lleled globa l commercial
footprint. In this article, Recycli ng International spotlights the
activities of an innovative corporation which assists steel mi lls with
their scrap supply efficiencies and with their on-site environmenta l
improvements.
TJlere have been times when 'outsourcing'
I was a dirty word, mostly used as a means to
reduce labour costs by hiring lower-wage work
force alternatives. But 'outsourcing' for Harsco
Metals entails something entirely different:
apart from hiring human resource capacity, it
means that mill operators are acquiring the
knowledge and expertise of a global specialist
in metal recovery and steel mill operations.
Headquartered in the UK, Harsco Metals is often
described as a 'company within the company'
and functions as a link between the scrap sup
plier and the ladle furnace, depending on its
contract with the client. The company, which
used to be branded as Multiserv until January
2010, is a unique firm operating on site at the
works of scrap metal consumers such as steel
mills and non-ferrous metals manufacturers.
Harsco's history
The core of the company's main competences
dates back almost a century. It is the story of a
Dutch immigrant to the USA named Eric Heck
ett: as an engineer, he was responsible for
installing scrap metal reclamation sites from
1920 onwards in Europe, and two decades later
in the USA. His biography shows that he held
several patents on metal reclamation technolo
gies in the early 20th century.
In 1956, his company- known as Heckett Engi
neering- was acquired by the Harrisburg Steel
company (Harsco) and continued under this
umbrella as one of its divisions. In 1989, Heck
ett acquired and merged with the European
leader in mill services- France-based Multiserv
- and formed Heckett Multiserv.
'Multiserv was strong in metal recovery in
Europe and Asia; says Steve Baines, Marketing
Manager for Harsco Metals. 'while Heckett was
leading in the USA at that time . .' Harsco used
to be a holding company for many firms but,
under the leadership of current CEO Salvatore
Fazzolari, it brought all of these together under
one integrated company - hence Multiserv
became Harsco Metals.
Today, Harsco Metals operates service centres
at 160 metal manufacturing sites around the
globe, the lion's share of which are steel mills.
The division accounts for one third of Harsco's
revenues and employs 10,000 people; the other
divisions cover infrastructure, rail, industrial
services and minerals. 'For example, we have a
fleet of 3000 vehicles on site; notes Mr Baines.
Expanded portfo lio
The company has grown into a diversified stock
exchange-listed entity turning over US$ 1.1
billion in 2009 and US$ 1.5 billion in the previ
ous year. Throughout this development phase,
however, Beckett's metal slag reclaiming tech
nology has retained its position as one of the
company's core activities.
Over the decades, Harsco Metals and its pred
ecessor Multiserv expanded its steel mill service
portfolio to include on-site logistics, material
handling, quality and radioactivity inspections,
Harsco can carry out the entire process from unloading scrap to the moment when that scrap is melted.
Harsco's mobile equipment allows easy onsite transportation of scrap and other goods.
storage and inventory control, on-site scrap
processing and loading electric arc furnace
(EAF) baskets. In fact, Harsco can carry out the
pany itself; Harsco offers metal recovery solu
tions for materials such as EAF slag, ladle slag
and EAF dust. An EAF producing one million
tonnes of steel per annum generates approxi
mately 120 000 tonnes of slag over that period.
With the value of ferrous scrap currently at well
over US$ 400 per tonne, the incentive to recycle
is much greater. According to Harsco, the firm
now has a value proposal to recover resources;
the company can handle sludge whereas this
was not economical a decade ago and it can also
segregate slag by quality and type, thereby max
imising its value on external markets.
Another motivation for steel mills to process their
piles of steel slag is stricter environmental regula
tions which no longer permit dumping of this
material. This applies not only in Europe and the
USA but also in emerging economies such as
China and the Middle East. Outsourcing to a part
ner like Harsco is a popular option as the steel mill
itself does not need to invest capital in knowledge
and technology. 'But we are not the only one in
our field,' acknowledges Mr Baines, 'There are
many local companies offering the same kind of
services: These firms are often cheaper but its
global expertise keeps Harsco at the forefront.
A typical Harsco Metals processing plant is a high
capacity metal separation and aggregate screening
facility comprised of magnetic separation devic
es and numerous vibrating screens and feeders to
control the material throughput rate to assure
proper metal recovery and product sizing.
entire process from the point when a rail car or Although the company teams up with universities
barge arrives with scrap to the moment when
that scrap is melted.
'Steel mills are the experts when it comes to steel
making; says Mr Baines, 'and they rely on us to
know about efficient ways to handle their scrap
and manage their scrap inventory:
The company's knowledge of data-driven scrap
preparation (see box) has propelled it to a favour
able commercial position. According to Harsco,
poor scrap management can lead to furnace
delays, charging of incorrect weights, low yields,
high slag volumes, missed specifications and
increased refractory wear, as well as greater flux,
02
and power consumption. At a Metal Bulletin
conference last year, CEO Harsco Metals Europe
Stephane Navarra estimated that one minute of
lost production time costs US$ 3000.
Metal recovery solutions
Harsco's scrap management package also
encompasses scrap generated by the client com-
to strengthen its scientific platform, it relies exten
sively on the research and development carried
out by other technology-focused firms to improve
the efficiency of its metal recovery processes.
Long-term contracts
Harsco generally works at its clients' sites under
long-term, renewable service contracts, develop
ing and utilising specialised technologies and
equipment to support its services. The company
can supply small teams providing a select range
of services through to dedicated teams of over
400 offering a complete range of services that
encompass the entire. metal production process,
enabling metal producers to benefit from its
expertise in on -site logistics covering raw mate
rials, semi-finished and finished products.
'We design, operate and maintain all our assets,
like technology and buildings,' explains Mr
Baines. One example of the firm's capabilities
is the in-house design of a highly-flexible vehi-
Mining scrap with environmental benefits
The Gulf States Steel mill in Gadsden, Alabama,
USA, went bankrupt in 1'999 and left a legacy two giant stockpiles totalling 2.3 million cubic metres of residual mill waste accumulated over 40 years. Tests revealed that storm-water runoff from the stockpiles included a leachate with a high pH value which was entering local rivers. However, this problem is being tackled by a joint project involving Harsco and the US Environ
mental Protection Agency which is considered a model for the future clean-up of simi lar sites around the world. Harsco is currently converting this material into marketable slag whi le carrying out remediation work on the leachate. Harsco Metals' engineers have calculated the mobile equipment and fixed plant capacity required to complete the task, allowing for factors such as the swell ing of the
stockpiles. Work began in January 2010 and the project is
expected to run for approximately four years. This has been described as the largest sustain
able remediation venture of its type in the USA. According to Harsco, scrap extracted from the slag and debris has been of a high quality. Estimates suggest that 85% or more of the project's tota l cost will be funded through the recycling/ reuse of the on-site materials, thus minimising
the financia l impact on taxpayers.
Harsco Is operating advanced sorting technologies to recover metals from production waste.
MILL SERVICES
Case study: Acindar
ArcelorMittal's Acindar steel mill in Argentina makes reinforced bar for use in building con
struction. Located 100 miles from the capital Buenos Aires and close to the border with Brazil, the plant has excellent transport links. Its merchant scrap and other raw materials are brought in by ships along the River Plate. In 2007, the mill entered into a 10-year agreement with Harsco to support its expansion plans.
Throughput would increase from 600 000 tonnes to 800 000 tonnes per annum to meet rising demand from infrastructure and building projects in the region. Acindar's mix for its electric arc furnace is com
prised of 65% sponge iron and 35% scrap. In order to accommodate the need for more scrap,
a scrap storage site was identified 1.3 km from the furnace. Among other issues, the increased scrap throughput could not be handled by the existing mobile equipment; in addition, it was
decided to increase the quality of the scrap entering the furnace by improved screening of external scrap. In an estimated US$ 15 million project, Harsco Metals built a strategic scrap yard to stockpile
the required scrap grades and installed a shredder to upgrade the scrap to the required quality, removing any contaminants from the metal.
The operation achieves a high scrap throughput via a combination of equilibrium cranes and mobile equipment. Most importantly, the correct scrap charge is available on time exactly according to ArcelorMittal's specified recipe for every heat. Harsco Metals flew over a specialist engineer who had worked on a scrap yard project using
equilibrium cranes and the Scrap Master inventory management system at ArcelorMittal's Carinox plant in Belgium. The company also
benchmarked the shredder technology it had previously installed at Bel go Pirracicaba, Brazil. The scrap management system uses RFI D tagging and DGPS tracking of material from the entrance gate to the furnace. With the addition of GPS satellite tracking, the exact location of each scrap bay is recorded with a high level of accuracy while management information reporting via email is also available to the customer for the purposes of process control. Overall, Harsco's solution has improved scrap yield at Acindar, representing a saving for the mill on furnace and secondary metallurgy costs.
Acindar's scrap yard in Argentina. Here Harsco operates state·of-the-art equipment for handling scrap.
de for on-site tasks such as carrying ladles,
scrap baskets, slag, finished products and other
materiaL Previously, many steelmakers relied
on rail transportation on site, which is less flex
ible than mobile equipment.
Harsco's management team invests substantial
effort in convincing potential clients that its
practices are more cost-effective than those of
the mill operator. 'Our biggest competitor is the
steelmaker himself; ventures Mr Baines.
The 'on-site' set-up employs local people who are
trained using Harsco's network of global experts.
The cost-effectiveness argument goes hand in
hand with the injection of knowledge that cannot
be found among local companies. 'We have our
own treasury and legal departments, which are
able to assist - especially on environmental and
safety regulations; the company points out.
The first to handle incoming scrap at a mill,
The non-ferrous metals industry is one of the growth opportunities.
Harsco can use its experience and data to advise
the client on its scrap supply. As the scrap storage
operator, it is usually highly influential in the
mill's decision-making process, identifying which
scrap sources are reliable and cost effective.
Opportunities to expand
Already a Fortune 500 company, there are still
many opportunities for Harsco's metals divi
sion to expand its outsourcing services given
the new steelmaking capacities being intro
duced around the world, especially in emerging
economies. For example, Harsco is currently
deploying a zero-waste by-product recycling
service at BaoSteel's Ningbo integrated carbon
steelmaking facility in the Zhejiang province of
China - a place where Harsco is already provid
ing scrap management and coolant scrap pro
duction services. Under its expanded relation
ship with BaoSteel, Harsco will install and
operate a specially-constructed facility that will
The Scrap Master software is capable to analyse the costs and savings associated with using alternative materials.
Data-driven approach Harsco's Scrap Master is a software system for managing scrap from the time it arrives at the steel mill to
when it enters the furnace - irrespective of whether it is internal scrap or provided by external suppliers. Focused on scrap inventory management and quality control, the system uses data from weighbridges to record material handled at each stage, as well as any contaminants screened during the quality verification of scrap. In the scrap yard, each grade of scrap has its own bay. Through the implementation of GPS satellite tracking, the exact location of each scrap bay is recorded with sub-metre accuracy, as well as the time that scrap was stored in the bay. Management information reporting via e-mail is also available to the customer for process control purposes. Last year, Harsco reached a licensing agreement with software developer Management Science Associates
to use its Blending Optimization Software Suite (BOSS), as part of the ScrapMaster package. The BOSS module assists steel makers in optimising the scrap mix in the melt shop by determining the least -cost combination of raw materials needed to produce a given heat, line-up or production schedule, taking into account all of the various operating and quality constraints. BOSS also enables the user to investigate 'what-if' scenarios and to analyse the costs/savings associated with using alternative materials, energy consumption, density and other constraints.
According to Harsco, this technology is the springboard to providing' even deeper value to the customers in the critical areas of process control and scrap cost savings' .
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