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By Gert Van der Have
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Harsco: delivering efficiency through know-how The business proposition of Harsco Meta ls is a unique comb ination of metal lurg ica l know ledge and an unpara ll eled globa l commercial footprint. In this article, Recycli ng Internationa l spotlights the activities of an innovative corporation which assists stee l mi ll s with their scrap supply efficiencies and with their on-site environmenta l improvements.
TJlere have been times when 'outsourcing' I was a dirty word, mostly used as a means to reduce labour costs by hiring lower-wage workforce alternatives. But 'outsourcing' for Harsco Metals entails something entirely different: apart from hiring human resource capacity, it means that mill operators are acquiring the knowledge and expertise of a global specialist in metal recovery and steel mill operations. Headquartered in the UK, Harsco Metals is often described as a 'company within the company' and functions as a link between the scrap supplier and the ladle furnace, depending on its contract with the client. The company, which used to be branded as Multiserv until January 2010, is a unique firm operating on site at the works of scrap metal consumers such as steel mills and non-ferrous metals manufacturers.
Harsco's history The core of the company's main competences dates back almost a century. It is the story of a Dutch immigrant to the USA named Eric Heckett: as an engineer, he was responsible for installing scrap metal reclamation sites from 1920 onwards in Europe, and two decades later in the USA. His biography shows that he held several patents on metal reclamation technologies in the early 20th century. In 1956, his company- known as Heckett Engineering- was acquired by the Harrisburg Steel company (Harsco) and continued under this umbrella as one of its divisions. In 1989, Heckett acquired and merged with the European leader in mill services- France-based Multiserv - and formed Heckett Multiserv. 'Multiserv was strong in metal recovery in
Europe and Asia; says Steve Baines, Marketing Manager for Harsco Metals. 'while Heckett was leading in the USA at that time ..' Harsco used to be a holding company for many firms but, under the leadership of current CEO Salvatore Fazzolari, it brought all of these together under one integrated company - hence Multiserv became Harsco Metals. Today, Harsco Metals operates service centres at 160 metal manufacturing sites around the globe, the lion's share of which are steel mills. The division accounts for one third of Harsco's revenues and employs 10,000 people; the other divisions cover infrastructure, rail, industrial services and minerals. 'For example, we have a fleet of 3000 vehicles on site; notes Mr Baines.
Expanded portfo lio The company has grown into a diversified stock exchange-listed entity turning over US$ 1.1 billion in 2009 and US$ 1.5 billion in the previous year. Throughout this development phase, however, Beckett's metal slag reclaiming technology has retained its position as one of the company's core activities. Over the decades, Harsco Metals and its predecessor Multiserv expanded its steel mill service portfolio to include on-site logistics, material handling, quality and radioactivity inspections,
pany itself; Harsco offers metal recovery solutions for materials such as EAF slag, ladle slag
Mining scrap with environmental benefits
and EAF dust. An EAF producing one million tonnes of steel per annum generates approximately 120 000 tonnes of slag over that period. With the value of ferrous scrap currently at well over US$ 400 per tonne, the incentive to recycle is much greater. According to Harsco, the firm now has a value proposal to recover resources; the company can handle sludge whereas this was not economical a decade ago and it can also
Harsco can carry out the entire process from unloading scrap to the
moment when that scrap is melted.
segregate slag by quality and type, thereby maximising its value on external markets. Another motivation for steel mills to process their piles of steel slag is stricter environmental regulations which no longer permit dumping of this material. This applies not only in Europe and the USA but also in emerging economies such as China and the Middle East. Outsourcing to a partner like Harsco is a popular option as the steel mill itself does not need to invest capital in knowledge and technology. 'But we are not the only one in our field,' acknowledges Mr Baines, 'There are many local companies offering the same kind of services: These firms are often cheaper but its global expertise keeps Harsco at the forefront. A typical Harsco Metals processing plant is a high-
Harsco's mobile equipment allows easy onsite transportation of scrap and other goods.
capacity metal separation and aggregate screening facility comprised of magnetic separation devic-
storage and inventory control, on-site scrap
es and numerous vibrating screens and feeders to
processing and loading electric arc furnace
control the material throughput rate to assure
(EAF) baskets. In fact, Harsco can carry out the
proper metal recovery and product sizing. Although the company teams up with universities
entire process from the point when a rail car or barge arrives with scrap to the moment when
to strengthen its scientific platform, it relies exten-
that scrap is melted. 'Steel mills are the experts when it comes to steel-
sively on the research and development carried
making; says Mr Baines, 'and they rely on us to
the efficiency of its metal recovery processes.
out by other technology-focused firms to improve
know about efficient ways to handle their scrap
Long-term contracts
and manage their scrap inventory: The company's knowledge of data-driven scrap
Harsco generally works at its clients' sites under
preparation (see box) has propelled it to a favour-
long-term, renewable service contracts, develop-
able commercial position. According to Harsco,
ing and utilising specialised technologies and
poor scrap management can lead to furnace delays, charging of incorrect weights, low yields,
equipment to support its services. The company can supply small teams providing a select range
high slag volumes, missed specifications and
of services through to dedicated teams of over
increased refractory wear, as well as greater flux,
400 offering a complete range of services that
0 2 and power consumption. At a Metal Bulletin
encompass the entire. metal production process,
conference last year, CEO Harsco Metals Europe
enabling metal producers to benefit from its
Stephane Navarra estimated that one minute of
expertise in on -site logistics covering raw mate-
lost production time costs US$ 3000.
rials, semi-finished and finished products. 'We design, operate and maintain all our assets,
Metal recovery solutions
like technology and buildings,' explains Mr
Harsco's scrap management package also
Baines. One example of the firm's capabilities
encompasses scrap generated by the client com-
is the in-house design of a highly-flexible vehi-
The Gulf States Steel mill in Gadsden, Alabama, USA, went bankrupt in 1'999 and left a legacy two giant stockpiles totalling 2.3 million cubic metres of residual mill waste accumulated over 40 years. Tests revealed that storm-water runoff from the stockpiles included a leachate with a high pHvalue which was entering local rivers. However, this problem is being tackled by ajoint project involving Harsco and the US Environmental Protection Agency which is considered a model for the future clean-up of simi lar sites around the world. Harsco is currently converting this material into marketable slag while carrying out remediation work on the leachate. Harsco Metals' engineers have calculated the mobile equipment and fixed plant capacity required to complete the task, allowing for factors such as the swelling of the stockpiles. Work began in January 2010 and the project is expected to run for approximately four years. This has been described as the largest sustainable remediation venture of its type in the USA. According to Harsco, scrap extracted from the slag and debris has been of a high quality. Estimates suggest that 85% or more of the project's tota l cost will be funded through the recycling/ reuse of the on-site materials, thus minimising the financia l impact on taxpayers. Harsco Is operating advanced sorting technologies to recover metals from production waste.
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Case study: Acindar ArcelorMittal's Acindar steel mill in Argentina makes reinforced bar for use in building construction. Located 100 miles from the capital Buenos Aires and close to the border with Brazil, the plant has excellent transport links. Its merchant scrap and other raw materials are brought in by ships along the River Plate. In 2007, the mill entered into a 10-year agreement with Harsco to support its expansion plans. Throughput would increase from 600 000 tonnes to 800 000 tonnes per annum to meet rising demand from infrastructure and building projects in the region. Acindar's mix for its electric arc furnace is comprised of 65% sponge iron and 35% scrap. In order to accommodate the need for more scrap, a scrap storage site was identified 1.3 km from the furnace. Among other issues, the increased scrap throughput could not be handled by the existing mobile equipment; in addition, it was decided to increase the quality of the scrap entering the furnace by improved screening of external scrap. In an estimated US$ 15 million project, Harsco Metals built a strategic scrap yard to stockpile the required scrap grades and installed a shredder to upgrade the scrap to the required quality, removing any contaminants from the metal. The operation achieves a high scrap throughput via a combination of equilibrium cranes and mobile equipment. Most importantly, the correct scrap charge is available on time exactly according to ArcelorMittal's specified recipe for every heat. Harsco Metals flew over a specialist engineer who had worked on a scrap yard project using equilibrium cranes and the Scrap Master inventory management system at ArcelorMittal's Carinox plant in Belgium. The company also benchmarked the shredder technology it had previously installed at Bel go Pirracicaba, Brazil. The scrap management system uses RFI Dtagging and DGPS tracking of material from the entrance gate to the furnace. With the addition of GPS satellite tracking, the exact location of each scrap bay is recorded with a high level of accuracy while management information reporting via email is also available to the customer for the purposes of process control. Overall, Harsco's solution has improved scrap yield at Acindar, representing a saving for the mill on furnace and secondary metallurgy costs.
Acindar's scrap yard in Argentina. Here Harsco operates state路of-the-art equipment for handling scrap.
de for on-site tasks such as carrying ladles, scrap baskets, slag, finished products and other materiaL Previously, many steelmakers relied on rail transportation on site, which is less flexible than mobile equipment. Harsco's management team invests substantial effort in convincing potential clients that its practices are more cost-effective than those of the mill operator. 'Our biggest competitor is the steelmaker himself; ventures Mr Baines. The 'on-site' set-up employs local people who are trained using Harsco's network of global experts. The cost-effectiveness argument goes hand in hand with the injection of knowledge that cannot be found among local companies. 'We have our own treasury and legal departments, which are able to assist - especially on environmental and safety regulations; the company points out. The first to handle incoming scrap at a mill,
Harsco can use its experience and data to advise the client on its scrap supply. As the scrap storage operator, it is usually highly influential in the mill's decision-making process, identifying which scrap sources are reliable and cost effective.
Opportunities to expand Already a Fortune 500 company, there are still many opportunities for Harsco's metals division to expand its outsourcing services given the new steelmaking capacities being introduced around the world, especially in emerging economies. For example, Harsco is currently deploying a zero-waste by-product recycling service at BaoSteel's Ningbo integrated carbon steelmaking facility in the Zhejiang province of China - a place where Harsco is already providing scrap management and coolant scrap production services. Under its expanded relationship with BaoSteel, Harsco will install and operate a specially-constructed facility that will recycle the steelmaking by-products for reuse in the production of new steeL In the stainless steel arena, Harsco recently teamed up with the world's largest manufacturer TISCO, also from China. Under a 25-year joint venture project, the two are expecting to process as much as 1 million tonnes of stainless steel slag and up to 500 000 tonnes of carbon steel slag per annum. For Harsco, this represents the largest project to date. The joint venture company plans to market these materials for 'zero waste' commercial reuse in such applications as metallurgical additives, recyclable stainless steel scrap, agricultural and turf fertiliser, as well as in a range of road-making and construction materials.
Non-ferrous potential The non-ferrous metals industry is one of the growth opportunities.
The non-ferrous metals industry also offers growth potential for Harsco. 'Compared to the
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environmental services and resource recovery solutions; says Mr Baines. Harsco has a joint venture partner in Bahrain called AluServ. Last year Harsco installed a stateof-the-art rotating tilting furnace wh ich will make the company the largest aluminium dross processor in the Gulf Region and which will also enable it to serve an increasing number of custom ers. In addition, the company recently signed a contract with a zinc producer in Latin America covering the on-site receipt and handling of zinc concentrates as well as the handling of finished products and by-product residues. So given the breadth of its expertise, is Harsco changing the mindset of the scrap-consuming metals m anufacturer? In som e ways yes, as traditionally steel mills have wanted to control every aspect of their production processes. So perhaps the future of m etals manufacturing lies in the correct combination of knowledge and skills to provide the best product output.
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The Scrap Master software is capable to analyse the costs and savings associated with using alternative materials.
Data-driven approach Harsco's Scrap Master is a software system for managing scrap from the time it arrives at the steel mill to when it enters the furnace - irrespective of whether it is internal scrap or provided by external suppliers. Focused on scrap inventory management and quality control, the system uses data from weighbridges to record material handled at each stage, as well as any contaminants screened during the quality verification of scrap. In the scrap yard, each grade of scrap has its own bay.Through the implementation of GPS satellite tracking, the exact location of each scrap bay is recorded with sub-metre accuracy, as well as the time that scrap was stored in the bay. Management information reporting via e-mail is also available to the customer for process control purposes. Last year, Harsco reached a licensing agreement with software developer Management Science Associates to use its Blending Optimization Software Suite (BOSS), as part of the ScrapMaster package. The BOSS module assists steel makers in optimising the scrap mix in the melt shop by determining the least-cost combination of raw materials needed to produce a given heat, line-up or production schedule, taking into account all of the various operating and quality constraints. BOSS also enables the user to investigate 'what-if' scenarios and to analyse the costs/savings associated with using alternative materials, energy consumption, density and other constraints. According to Harsco, this technology is the springboard to providing' even deeper value to the customers in the critical areas of process control and scrap cost savings'.
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