Kalistani Major History

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KALNAFERCO opens new Steel Mill in Sulari
Aims to Reduce Cost, Energy Consumption, and increase efficiency
Sulari Suldanor
July 12, 4900


New KalNaFerCo Mill, Steel Dynamics, opens north of Sulari

Efficiency is the key to the new KalNaFerCo operation, Steel Dynamics, which is a alloying, rolling and finishing plant that has just been opened north of Sulari.

Plant Foreman Martina Brevard, a life long Steel Worker in the Sulari Mills, spoke highly of the new, very modern facility. "We have the capacity here to either significantly increase the production of Kalistani Steel by as much as thirty percent, or entirely replace the capacity of the old mills in the south. This plant is state of the art, has six total new rolling lines, three hot and three cold, as well as a reheating facility, laser precision molds, an alloying facility, a new machine and cutting shop, and transportation links connecting to the National Rail and Port Elga. This new State of the Art facility will employ more than 4500 people and will eventually allow at least one of the old plants to close permanently."

The new mill also stresses energy efficiency in production. "As we have cold rollers, we can increase the capacity of steel out put without significantly increasing fuel needs or pollution," said Brevard. "As for our hot rolling facilities, the melting and molding utilizes electricity rather than traditional coal powered blast furnaces to create the temperatures necessary to heat the pig iron past the crystalization temperatures, to allow alloying. That electricity is created by seven major transformers powered by new tidal action generators constructed ten miles east on the coast. In this way, our energy consumption is reduced compared to traditional facilities. This allows us to dramatically lower our prices domestically, and increase our margins internationally without significantly increasing the scale of our operations or our extraction of raw materials."

Right now, KalNaFerCo operates at about 30% of its total capacity, due to domestic demand being satisfied and low international demand. "This situation is baffling to the Heads at FerCo," said Brevard. "They would produce more steel if they could, and we could easily undersell at least one major international producer, but nobody seems interested in Kalistani Steel except Kalistanis. I have a feeling that with higher efficiency and greater capacity, that will change in the near future." Currently Kalistani Steel is heavily subsidized domestically, and is sold to Kalistani purchasers at cost, while a slim 3 percent over Market margin is derived internationally.

"If we end up producing a large amount of both hot rolled and stainless steel above domestic demands, we could theoretically lower that premium to below the international market price to make Kalistan more competitive and take advantage of our proximity advantage to major consumers." While this would technically constitute dumping on the international market, Brevard said KalNaFerCo is not concerned about the implications of such practices: "Even if we sold at 10 percent under market, Kalistan would still make money, because we would save on transit costs. Buying from the Republic, instead of somewhere like Yingdala, for example, would allow a purchaser like Hutori to save literally millions on each shipment, because we are thousands of miles closer to Hutori. Even if they were able to match our prices at point of sale, which they cannot."

The opening of the new Plant will further allow Kalistan to address inefficiencies in its steel production facilities. "So far we only have one operational cold rolling line," said Brevard. "That is old, the machinery needs constant servicing, and it is dangerous because the technology is not automated. The three lines here at SD will dramatically increase the production of cold rolled steel and stainless steel, which can then be used in literally hundreds of applications across the country, including possibly a revitalized automobile industry."

The Steel Dynamic Plant will begin fulltime operation later this week with the first arrival of more than 800 tonnes of pig iron from the National Foundry which is expected to be processed into banded coils and plated steel for use across the Republic. The opening of Steel Dynamics coincides with temporary plant closures at 3 of the 7 steel mills south of Sulari for the purpose of maintenance and upgrading.