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Kobe Steel provides license to FLSmidth Private Limited, India for iron ore pellet process
April 23, 2014
TOKYO, April 23, 2014 - Kobe Steel, Ltd., Japan and FLSmidth Private Limited, India have entered into an exclusive license agreement enabling the Indian partner to market, design and construct iron ore pellet plants using Kobe Steel's pelletizing process called the KOBELCO Pelletizing System.
This agreement gives FLSmidth the exclusive right to supply pellet plants in India. Projects in other countries will be evaluated on a case by case basis. FLS's cement plants and the KOBELCO Pelletizing Systems share core technology (pyro processing) in common and particularly the rotary kilns and burners.
“The long and vast experience FLSmidth has in mineral processing including iron ore beneficiation makes it an excellent partner for our pelletizing process," says Hiroshi Ishikawa, an Officer at Kobe Steel and Head of its Iron Unit Division. “The synergy and expertise of both Kobelco and FLSmidth will add value to our customers, which will be mutually beneficial," he adds.
India has produced 81.2 million tons of crude steel during 2013, and steel production is anticipated to be prosperous in future according to the World Steel Association. Indian Government's aim to increase steel production to 300 million tons by 2025 has enhanced the need for iron and other related production facilities, including pellet plants. Kobe Steel and FLSmidth will cater to this demand by jointly promoting the KOBELCO Pelletizing System.
The KOBELCO Pelletizing System makes iron ore pellets used as a raw material for blast furnaces and direct reduction plants. Over many years, Kobe Steel has made continuous improvements to the KOBELCO Pelletizing System through the operation of its own pellet plant in Japan and its engineering business, where Kobe Steel has supplied pellet plants and services to companies worldwide. Major projects include a 4 million ton per year plant and a 6 million ton per year plant for the former Gulf Industrial Investment Co. (E.C.), now known as Bahrain Steel. Kobe Steel also received an order for two 4.5 million ton per year plants from Vale Oman Pelletizing Company.
About the KOBELCO Pelletizing System
The KOBELCO Pelletizing System is a grate-kiln process where iron ore pellets undergo heat treatment in two stages. Iron ore and binding agents are ground and formed into "green balls," the unfired pellets. The green balls are sent to a traveling grate where they are dried and preheated in the preheating furnace. From there, the balls are fired at a high temperature in a rotary kiln. After the pellets are hardened in a process called induration, they are cooled and stored for shipment.
The grate-kiln system is energy efficient. As the pellets are heated in a thin layer in two stages, power consumption is low. In addition, because of uniform firing in the rotary kiln, the pellets are of consistent, high quality. The mixing of the pellets in the rotary kiln enables the pellets to be exposed to the same temperature. The KOBELCO Pelletizing System is also noted for its flexibility in fuel sources. It can use gas and liquid fuels (such as heavy oil), as well as coal to fire the main burner.
About Kobe Steel
Kobe Steel, together with Midrex Technologies, Inc., a wholly owned subsidiary company, also supplies MIDREX® Direct Reduction Plants that use iron ore pellets to make direct reduced iron (DRI). As both a steelmaker and a plant engineering company, Kobe Steel offers a unique combination of know-how covering the upstream operations of iron ore pellet and DRI production to client companies.
Kobe Steel, Ltd. is a diversified manufacturer with its major businesses concentrated on materials and machinery. The materials business comprises iron and steel, welding, and aluminum and copper products. Machinery includes industrial machinery, engineering and construction equipment, as well as environmental solutions. Other important businesses are wholesale power supply and real estate. The company has head offices in Kobe and Tokyo, Japan. For more information, visit: www.kobelco.com.
About FLSmidth
FLSmidth is a market-leading supplier of equipment and services to the global minerals and cement industries.
FLSmidth supplies everything from single machine units to complete minerals and cement plants including associated services. FLSmidth is a global company with headquarters in Denmark and a local presence in more than 50 countries including project and technology centres in Denmark, India, USA and Germany.
FLSmidth primarily focuses on the following industries: copper, gold, coal, iron ore, fertilizers and cement, and has the ambition of being among the leading and preferred suppliers in each of these industries.
The Group's in-house resources are primarily engineers who develop, plant, design, install and service equipment, with most of the manufacturing being out sourced to a global network of subcontractors. This has proved to be both a robust and sustainable business model. FLSmidth, therefore, has a flexible cost structure, which makes it possible to plan and adjust resources to prevailing market conditions.
FLSmidth & Co A/S has been listed on NASDAQ OMX Copenhagen since 1968 and due to its global presence and comprehensive range of products and services it has obtained a unique market position as a leading supplier to the global minerals and cement industries. For more information, visit: www.flsmidth.com
FLSmidth Private Limited India is a wholly-owned subsidiary of FLSmidth & Co. A/S, Denmark.
