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Siemens to Install Manufacturing System for Severstal’s Cherepovets Complex

Russian steel producer CherMK OAO Severstal has contracted Siemens VAI Metals Technologies to design, install and commission an integrated manufacturing execution system (MES) for its Cherepovets production complex. The system will provide Severstal a comprehensive platform for plant-wide production planning and monitoring, an essential prerequisite for quality assurance as well as for optimizing operating costs and stock levels.
 
The system, which will be based on Siemens’ Simetal MES solution, will provide plant operators with an overview of material flows and production processes at all times. With the help of key performance indicators (KPIs), processes can be evaluated so the entire value chain can be optimized. The order is worth more than ten million euros.
 
Severstal has an extensive range of facilities in Cherepovets, including converter, electric-furnace and open-hearth steelmaking plants, six continuous slab casters and a billet caster, two hot-rolling mills, a plate mill, three section mills, and two cold-rolling mills as well as processing, coating and galvanizing lines and a forge for pipes and sections. The new system will help to ensure smooth interaction of all this equipment while providing integral information and data management between processes, plant and management. The resultant transparency can help to optimize the entire value chain together with all the production, logistics and ancillary processes.
 
Simetal MES enables a continuous flow of all process data both in a vertical direction from the actual production process to the management level as well as in a horizontal direction from the raw material to the melt-down units, continuous caster and the finished product. The system manages all melting sequences of the steelworks, starting from the orders for slabs, billets or strips. It can react flexibly to chronological or situational deviations that potentially endanger the continuation of production.
 
In order to draw up a plausible production schedule, all resources that are used and are available are taken into account in production control. These include the actual production equipment such as melting furnaces, secondary metallurgy, casters and rolling/processing lines, as well as ladles, segment and roll management systems, and the ancillary equipment.
 
A quality assurance system not only evaluates the quality of the material but also carries out appropriate measures to prevent any quality deficits. This is based on rule-based checkpoints at significant places in the production process. It also enables immediate modification of target parameters, such as re-processing by means of additional work procedures. In this context, Simetal MES uses predefined rules that can be easily adapted to the respective requirements.
 
In addition to functions for material tracking, quality assurance and production planning, Simetal MES also has features for the optimization of supply chains within the company and for warehouse management. All relevant production and process data are aggregated in real time to generate key performance indicators, leading to the ability for detailed performance analyses.
 
Siemens will be responsible for designing, implementing and commissioning the complete manufacturing execution system as well as for training users and optimizing the installations during ongoing operation.
 
Implementation of the MES solution is scheduled for completion in summer 2011.
 
Severstal produced 11.9 million tonnes of steel in 2006, making it one of the leading producers in Russia and the number 5 steel producer worldwide. At its main production facility in Cherepovets in northwest Russia, Severstal makes a wide variety of long and flat products, including hot and cold-rolled steels, coated steels, hot-rolled profiles, steel sections, structural steel and pipes.
 
The Siemens Industry Sector (Erlangen, Germany) is a leading international supplier of production, transportation and building systems. The Sector comprises six Divisions: Building Technologies, Industry Automation, Industry Solutions, Mobility, Drive Technologies and Osram. In fiscal 2007 (ended September 30), Siemens Industry generated sales of approximately EUR40 billion (pro forma, unconsolidated) with around 209,000 employees worldwide.

With the business activities of Siemens VAI Metal Technologies, (Linz, Austria), Siemens Water Technologies (Warrendale, Pa.), and Industry Technologies (Erlangen, Germany), the Siemens Industry Solutions Division (Erlangen, Germany) is one of the world's leading solution and service providers for industrial and infrastructure facilities. Using its own products, systems and process technologies, Industry Solutions develops and builds plants for end customers, commissions them and provides support during their entire life cycle.