Business
CISDI Contributes to Capacity Cooperation With Cutting-Edge Technology
  ·  2017-06-26  ·   Source: NO. 26 JUNE 29, 2017

 

The No.1 blast furnace of Formosa Ha Tinh Steel Corp. plant in in Viet Nam 

CISDI Group Co. Ltd. (CISDI), a subsidiary of China Metallurgical Group Corp. (MCC Group), is a major force in MCC Group’s efforts in forming China’s “national team” of metallurgical construction. It is among the first batch of Chinese metallurgical enterprises going abroad for international cooperation. It is currently focusing on countries involved in the Belt and Road Initiative and has actively promoted international cooperation on industrial capacity and equipment. It has undertaken a number of iron and steel projects in Viet Nam, India, Malaysia, Turkey, etc., and played a backbone role as a state-owned enterprise.

Recently, the Formosa Ha Tinh Steel Corp. (FHS) in Viet Nam, the only newly built iron and steel enterprise worldwide with an annual production capacity surpassing 10 million tons in the recent 20 years, has been successfully put into operation. The technical indexes of the blast furnace, with CISDI as the general contractor, have reached the world’s highest level.

 

Formosa Ha Tinh Steel Corp. complex in Viet Nam 

Technology prowess 

At the end of May, the No.1 blast furnace of FHS, the largest steel and iron enterprise in Southeast Asia, was successfully put into operation after four years of construction. This project, occupying 3,318 hectares, has caught the eyes of the global steel and iron industry.

It is one of the key projects of international capacity and equipment cooperation under the Belt and Road Initiative and will help to alter the steel and iron trade pattern in Southeast Asia.

FHS is invested in by the Taiwan-based Formosa Group and is the largest foreign direct investment project in Viet Nam. The annual capacity of the first phase of the project reaches 7 million tons. CISDI served as the overall planner and advisor in the project.

Having worked in the industry for almost 60 years, CISDI has accumulated abundant experience in overall planning for steel mills of various types and has formed a complete technical system and a strong team of professional personnel to ensure the long-term benefits of the projects.

When the investment plan of FHS was activated in 2008, CISDI beat many competitors from Europe, the United States and Japan in a tender to get the contract for overall planning.

Chinese enterprises took hold of the whole project, from design to construction and operation. CISDI is the general contractor, China 19th Metallurgical Corp. is responsible for construction, and Anyang Iron and Steel Group, with rich experience in operations, takes charge of running the furnace.

Many advanced technologies adopted in this project were developed independently by CISDI. Every party involved spared no effort in making every step of the project perfect.

This project has shown Chinese enterprises’ ability in conducting large projects. CISDI’s systematic design and integration capabilities have been highlighted.

 

Smelted iron flows from the No.1 blast furnace of Formosa Ha Tinh Steel Corp. plant on May 30 

The iron pioneer 

The two main construction companies involved in the FHS project, CISDI and China 19th Metallurgical Corp., are both affiliated to MCC Group, the largest metallurgical construction contractor and metallurgical enterprise operating service provider in China. It is a pioneer and driving force in the Chinese iron and steel industry.

In the mid-1960s, China decided to set up an iron and steel base in Panzhihua in Sichuan Province. CISDI undertook the task of overall planning. In an area that is less than 2.5 square km, CISDI and China 19th Metallurgical Corp. built up a large, modern iron and steel enterprise with an annual output of 1.5 million tons. It is China’s first independently built large iron and steel base.

After the reform and opening-up policy was adopted in the late 1970s, CISDI went through market-oriented restructuring. It took part in a large number of major iron and steel projects and overcame many technical obstacles that used to restrict the development of the industry, promoting the technological progress and equipment upgrading of China’s metallurgical industry.

After the Belt and Road Initiative was proposed in 2013, CISDI enhanced its business expansion in participating countries. Meanwhile, it has further explored iron and steel markets in Brazil, Europe and the United States. Among the top 50 iron and steel enterprises in the world, 38 have become customers of CISDI. Through involvement in projects in Viet Nam, Malaysia and India, it has further consolidated its leading position in the industry globally.

Core advantages 

CISDI has transformed from a design institute for traditional factories to an innovative international engineering company and established an advanced research and development system.

In recent years, the average research and development cycle of CISDI has shortened from four years to two and a half years. The number of innovative achievements has increased by more than 10 percent each year. In the past five years, more than 50 major technological achievements have been applied in projects.

The integration of advanced technology and management methods is a core advantage of CISDI. For instance, it not only devised a premium plan for the construction of the FHS project, but also helped prepare a financial feasibility report and offered advisory services in areas such as investment control and construction management.

The bell-less top charging technology is crucial to ensure the stable operation of the blast furnace. CISDI spent eight years in theoretical research, technological development and tests and finally mastered this technology, breaking the overseas companies’ monopoly, which had lasted for more than 30 years. It was adopted in the blast furnace of the FHS project.

One of the reasons why Formosa Group selected CISDI from many competitors is the strength of CISDI in information and intelligent technologies. The FHS blast furnace project adopted the intelligent decision-making system independently developed by CISDI, integrating the large data analysis technology with operations.

Also, CISDI developed a management platform to bring every step of construction under effective control. Since the project started in October 2012, the construction site has kept a clean safety record.

Copyedited by Bryan Michael Galvan

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