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Figure 5
Pre-existing, projected and actual utility costs after the modernization project. Figure 6
Actual versus planned payback, broken down by contribution. property problems were also lowered.Reduced leadtimes supported lower invento- ries at various stages of production.

Batch Annealing Modernization at California Steel Industries - 21809 Summary

As more imported and domestic annealed steel is produced using 100% hydrogen, a successful annealing modernization project became essential for the long-term viability of CSI’s cold rolled sheet products. With recent severe downward pressure on steel prices, CSI needed to focus on increased efficiency, improved customer service and reduced operating costsin order to solid- ify their position in the cold sheet market.The upgradeoriginally con- sisted of an incremental installation of some hydrogen equipment, but grew into a com- prehensive con- solidation that streamlined material move- ment and in- process invento- ries. The end results for the customers are better delivery performance and shortened lead- times. The bot- tom-line finan- cial effect shows up as savings in utilities, reduced rejects, lower maintenance and reduced in- process trans- portation costs.Most impor-tantly, the turnkey project was delivered on time and under budget and met all the perform- ance require- ments. All the financial expec- tations for the project were also met and even exceeded. Thepartnership developed between CSI and Rad- Con has continued beyond the project scope, leading to additional process and product improvements at CSI. Reference
1. South Coast Air Quality Management DistrictRule 100.1, “Continuous Emissions Monitoring for NOx, CO and O 2 from Stationary Sources,”Diamond Bar, Calif. AISE 58 AISE Steel Technology November/December2002