U.S. Metals, Glass Furnace Additions & Rebuilds Add Up to Billions

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Written by Eric Funderburk for IIR News Intelligence (Sugar Land, Texas)

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Summary

Furnace-related projects at U.S. Metals & Minerals plants account for more than $3.8 billion worth of current and anticipated spending.

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Key Equipment

Furnaces play a key role in the Metals & Minerals Industry, ranging from everything from blast furnaces and electric furnaces at steel mills to furnaces used in the glass sector, aluminum smelters and other metals plants. Industrial Info Resources data show more than $3.8 billion worth of capital furnace-related projects lined up for U.S. metals and glass plants, including more than 120 projects presently underway.

Operating at extremely high temperatures for years-long periods, furnace materials and components wear out and require rebuilds that are essentially major regular maintenance every few years. In addition, some metals and glass companies have environmental goals in mind for their projects; steelmakers, for example, can significantly reduce carbon emissions by transitioning from blast furnace technology to electric arc furnaces.

Current Construction

A new electric arc furnace (EAF) is exactly what's underway at Gerdau Ameristeel North America's 1.8 million-ton-per-year steelworks in Midlothian, Texas. However, rather than replacing a blast furnace, Gerdau is replacing another EAF with an updated unit to improve operations. Readers can access details of the project, including construction timelines, key contact details, and equipment and service needs, by clicking here.

Dozens of refractory rebuilds are underway at EAFs throughout the U.S. The refractory brick or materials essentially act as a layer between the molten steel and permanent furnace components, wearing away over time. Refractory rebuilds are performed regularly throughout the life of an EAF, ranging from simple and frequent patch jobs to periodic relinings to major rebuilds, which occur less frequently. All of this means a great deal of consistent project activity.

The Texas EAF replacement project gives that state a leg up in current EAF projects, although not to be discounted is Steel Dynamics' refractory rebuild on its 95-ton Danieli EAF at its Roanoke, Virginia, site, which the company kicked off earlier this year and performs around every 1,000 heats or so.

Refractory rebuilds constitute the bulk of current U.S. furnace activity, although other projects underway include a major furnace rebuild at a glass containers plant in Pennsylvania, which is expected to be completed next month, as well as furnace rebuilds and repairs at lead and zinc plants, and more than a dozen repair and rebuild projects occurring throughout this year at U.S. aluminum smelters.

Future Furnace Projects

More than $3.6 billion worth of furnace projects are planned for the future at U.S. metals and glass plants, including multiple furnace additions and relining projects, although some of these projects may be delayed or put on hold as time passes. Potential addition projects dominate spending, but the bulk of activity remains repairs and rebuilds to existing units. While steel projects dominate, more than 35 capital furnace projects are lined up for U.S. aluminum smelters, led largely by Alcoa, which is considering a major rebuild/modernization project for the anode-baking furnace at its Massena, New York, smelter next year.

The U.S. glass sector also chimes in with more than 120 furnace projects on the books for the future, primarily rebuilds, meaning these projects will have to be done out of necessity following regular wear and tear on the equipment. Several major glass furnace rebuilds are on the books, with some of the highest spending coming from Koch Industries-led glass companies and more than 20 smaller projects from O-I Glass Incorporated, including multiple major furnace rebuilds at plants in Oklahoma, California and North Carolina.

Consistent Work

Regular rebuild and repair work at the furnaces of metals and glass plants are a necessity that can't be avoided. After a certain number of heatings at extremely temperatures, components and linings simply wear out and need to be patched or replaced to greater or lesser degrees.

In addition to nearly 400 furnace-related capital and maintenance projects on the books at U.S. Metals & Minerals plants, Industrial Info Resources also is tracking more than 1,500 in furnace projects in other locations throughout the world, led largely by India, China and Japan.

Key Takeaways

• More than $3.8 billion worth of furnace-related spending is on the books for U.S. Metals & Minerals plants.
• The bulk of spending is for refractory rebuilds for electric arc furnaces at steel mills.
• The glass and aluminum sectors also represent key segments in U.S. furnace-related projects.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).