STEEL PLANT BASED ON INDUCTION FURNACE FOR THE PRODUCTION OF INGOTS (M.S. INGOTS)
[EIRI/EDPR/1293] J.C. 9955
INTRODUCTION
Castings of suitable shape and size intended for subsequent hot working are termed as Ingots.
Ingot iron has very low carbon in steel. This is generally made in the open hearth in which all the other elements are removed to the maximum extent possible. Some of the commercial products falling under this group have less than 0.1% of all non-iron elements put together.
Ingots are cast in ingot moulds which are the containers usually made of cast iron into which molten steel is poured & allowed to solidify.
Mild steel ingots are carbon steels only containing, usually, 0.15 to 0.25% of carbon. These may be fully deoxidized to reduce the oxygen content of the steel to a minimum in order that no reaction takes places between carbon & oxygen during solidification. Such steels are called "Killed Steel".
Most of the bars and structural are manufactured in standard sections/sizes. But, ingots/Billets/Bloomy etc. require mutual negotiations between the producer & the buyer for factors & rangs. Generally M.S. ingots are produced in square cross sections of sizes 50mm to 125mm in 1979. There were 145 licensed Electric Arc Furnace units with a total licensed capacity of 3.32 million ingot tones running at 70% Capacity utilization. These units collectively form the group of mini steel Plants. This concept takes advantage of local availability of major inputs like scrap & power and proximity of the mini steel industry in India has been phenominal after 1970.
Though the tradition of mini steel plants started quite late in India, but it is getting whole hearted popularity now. India has decided to import 1,00,000 M.T. of heavy melting scraps from USSR in the current year (1988) by July inorder to keep the mini steel plants & re-rolling mills running. Over the last couple of months such scrap has not been available in the international market, particularly of desired sizes (suitable for induction furnaces of small capacities which use larger scraps.
The USSR has agreed to allow 180 days credit 7% rate of interests and prices are payable in rupees.
Steel ingots in the first stage of raw material required in semi-finishing and downstream industries of steel base.
M.S. ingots are of great application for mfg. structural sections, sheets and plates etc. Induction furnace based steels can assure a high degree of quality control, economy and usefulness in Indian economy.
These induction furnace based steel casting units are suitable for S.S.I. and medium scale units both in the private sector and yet have the capability to compete in the internal as well as international market at all counts.
Looking at the rising demand of steel (specially mild steel) in the country and comparatively short supplies from indigenous productions, it is very well advised for new entrepreneurs to come up with reasonable targets of production of steel ingots/billets and other structural sections. The prospects are good both because government is carefully trying to arrange the inputs for steel industries at reasonable prices & in required quantity and because it requires all indigenous capital goods & technologies. The apparent consumption is so high that market is not a problem.
COST ESTIMATION
Plant capacity 60.00 MT/day
Land & Building (3 Acres) Rs. 2.93 Cr
Plant & Machinery Rs. 1.53 Cr
W.C. for 3 Months Rs. 12.76 Cr
Total Capital Investment Rs. 17.61 Cr
Rate of Return 60%
Break Even Point 31%
CONTENT
INTRODUCTION
USES & APPLICATIONS
BIS SPECIFICATIONS
MARKET POSITION
PROCESS FLOW DIAGRAM
PROPERTIES
INDUCTION FURNACE MELTING PRACTICE
WORKING PRINCIPLE & METHOD OF OPERATION
MANUFACTURING PROCESS
PROCESS FLOW DIAGRAM FOR THE MANUFACTURE
PLANT LAYOUT
PRINCIPLES OF PLANT LAYOUT
PLANT LOCATION FACTORS
EXPLANATION OF TERMS USED IN THE PROJECT REPORT
MANUFACTURERS & SUPPLLIERS OF M.S. INGOT
SUPPLIERS OF RAW MATERIALS
SUPPLIERS OF PLANT AND EQUIPMENTS
APPENDIX – A:
01. PLANT ECONOMICS
02. LAND & BUILDING
03. PLANT AND MACHINERY
04. OTHER FIXED ASSESTS
05. FIXED CAPITAL
06. RAW MATERIAL
07. SALARY AND WAGES
08. UTILITIES AND OVERHEADS
09. TOTAL WORKING CAPITAL
10. TOTAL CAPITAL INVESTMENT
11. COST OF PRODUCTION
12. TURN OVER/ANNUM
13. BREAK EVEN POINT
14. RESOURCES FOR FINANCE
15. INSTALMENT PAYABLE IN 5 YEARS
16. DEPRECIATION CHART FOR 5 YEARS
17. PROFIT ANALYSIS FOR 5 YEARS
18. PROJECTED BALANCE SHEET FOR (5 YEARS)