Foseco Steel NorAm Business Review Summary

Foseco Steel NorAm
Business Review
October 10, 2006
Agenda
Introductions Foseco NorAm Steel Overview The North American Market Foseco NorAms Focus Products and Applications Summary Lee Plutshack Mike Fish Bill Jennings Bill Jennings Albert Dainton Lee Plutshack
Foseco NorAm Business Review
NorAm Overview
M. Fish October 10, 2006
Who are we?

Foseco is a leading supplier of high technology products and value-added services to the steel industry.
NorAm Manufacturing & Laboratory Facilities

Conneaut - Ohio
Afax granular & powder mould flux production Turbostop flow control system production Secondary steel making (SSM) degasser snorkel production Afax & Foscast quality control labs
Saybrook - Ohio
Deltek Carbon bonded ceramics production
Cleveland R&D
Afax recipe development laboratory Foscast refractory development laboratory Turbostop water model laboratory Deltek mould model laboratory mathematical and water modeling
NorAm Customer Base

Mittal Steel AK Steel US Steel Nucor Steel
q v Stelco Steel i i 8
i u q 8u 888 v i u 8 8
8 8 8
i 8 i 8 8 ui i 8 I i
v vv v u vv v v 8
v v
Steel Making Process
Years of experience focused on the casting deck.

7
The Casting Deck
A History of Innovation
Profax/Kalorex Hot Tops - early 60s - Ingots Garnex Tundish Liners 1970s Afax Granules in North America 1980s Turbostop -1990s Integrated Process Improvement - 2000s
Unique product portfolio linking the variables in the continuous casting process.
Foseco has been introducing new technology to the steel industry for over 40 years
Ingot Hot Tops
10
Garnex Tundish Lining System
11
Organized to Improve Customer Performance

Application Engineers
Chief Executive
VP Sales
VP Marketing
Operations Dir.
Finance/Commercial
Direct Sales
Direct Mktg.
Cell Mgrs.
Finance & Cust. Service
Service Techs
R&D/Eng Support
12
Solid Customer Relationships

Years developing relationships in plant & head office. Worked with our key customers through good & bad times Steel Groups R&D work with us in our facilities. Operators understand the value we bring to the table and support us with purchasing.
13
NorAm Steel Market

B. Jennings
October 10, 2006
NorAm Steel Market

109 million Tonnes Shipped in 2005
Canada: 14 million tonnes U.S.: 95 million tonnes
55 steel companies with approximately 135 facilities 9.6% of the world steel production Largest Markets: Construction and Automotive
Other Key Markets Machinery Containers Pipe/energy
15
Global Steel Production
400 Production (Milion Tonnes) 350 300 250 200 150 100 50 0
China Europe NORAM C.I.S. Japan S. Amer India
16
NorAm Production
130 120
Million Tonnes
110 100 90 80 70 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05
17
NorAm Steel Imports
35 30 25 Tonnes 20 15 10 5 0 '06 '07 '08 '09 '00 '01 '02 '03 '04 '05
18
Consolidation of Industry
LTV Inland Lukens Wierton Bethlehem Sidbec Georgetown Dofasco Arcelor/Mittal
USX National Steel Nucor Auburn Birmingham Seattle Trico
USS
Nucor
MRM Co-Steel Ameristeel
Atlantic North Star Cambridge
Gerdau Ameristeel
19
Consolidating Steel Industry

Pre Consolidation
Top Three
Nucor 14% USS 10% Beth 8% Other 68% Mittal 25% Other 41% USS 16%
Post Consolidation
Top Three
Nucor 18%
20
Impact of Consolidation
Steel Companies are stronger financially
Manage supply with demand Domestic & Global Higher steel prices Less cyclical production and pricing New labour agreements
Best Practice Approach

Utilization of best technologies Global perspective Value is important Value = Customer $ in yield, productivity, quality, etc. Foseco
Centralize Purchasing
Greater purchasing influence Fewer suppliers Price rationalization/down initiatives
Reduced R& D.
Greatly reduced localized R&D capability. More reliant on supply chain - Foseco
21
Consolidation An Opportunity for Foseco

Financially strong market Less cyclical market Demand for innovative technology Value is key Market requires development resources
22
Customers are strong and will Survive!!

Consolidation provided financial stability Global focus Global customers Automotive transplants Low man-hours per ton Raw material stability
Iron ore, scrap
Energy efficient Technology leaders New production facilities being built
23
Foseco NorAm Focus

B. Jennings
October 10, 2006
Targeted Sectors
Slab Thin Slab Special Bar Quality (SBQ)
25
Targeted Sectors Why?

Customers who appreciate
Value Technology Supply chain
Financial stability
Strong steel markets Value added steels Premium price steel producers.
Similar targeting approach as Foseco
26
Fosecos Target - Flow Control on the Casting Deck

Why?
Critical steel processes require innovative cost effective solutions Individually unique casting parameters demand customized solutions Application Expertise
Years of Experience in steel containment, flow and solidification
27
Why we succeed!
Highly trained field sales and marketing team
Understanding the process.
Customised products
Defining the customers needs and customizing solutions.
Multifunctional account management teams
Managing the business at the account level working with the customer
Engineering expertise
Robotic & automatic application systems . Water modeling services for Turbostop & Deltek Global experience and resource base
Technical support
28
NorAm Sales History
SALES $
2000
2001
2002
2003
2004
2005
2006
29
Products and Applications

A. Dainton
October 10, 2006
The Steelmaking Process
Fosecos Core Business

31
Continuous Casting Process
LADLE
MOLD
TUNDISH
32
Product Split
CBC 10%
Other 3%
Tundish 17%
SSM 12%
Afax 40%
Turbostop 18%
33
Where Afax products are used
Afax Tundish Flux
Afax Mold Powder

34
Mold Fluxes NorAm Market
Metallurgica 10%
Others 8%
Foseco 27%
Stollberg 55%
35
AFAX - Continuous Casting Fluxes

High cost of entry
Heavy investment in plant, quality control and people
Highly technical product

Each plant has different casting conditions Usually 4-5 different grades
High risk
Last and most critical consumable in the hot end process
Highly sustainable
Multiple formulations Changing requirements Regular re-engineering of product
36
Afax Product Positioning

Integrated Strategic Positioning
Engineered Mold Solutions
Offer Differentiation
High
Med
Mold Powder Basic TD Covers
Low
Tundish Flux
Low
Med
High
Tech Sales Input

37
Afax Sales Development
SALES $
1986
1989
1992
1995
1998
2001
2004
38
Where Turbostop is used
TURBOSTOP SYSTEM
39
Tundish Flow Systems NorAm Market
Others 18% Foseco 41%
Vesuvius 20%
CCPI 22%
40
Turbostop - Tundish Flow Systems

Key features
Each steel plant has different casting conditions Usually 4-5 different grades
High risk
Steelmaking process re-engineered to custom design
Highly sustainable
41
Turbostop Product Positioning

Custom Designed Turbostop
Med
High
Generic Shapes
Low
Traditional Methods
Low
Med
High
Tech Sales Input

42
Turbostop Sales
9 8 7 6 5 4 3 1 0
SALES $
1994
1997
2000
2003
06 Proj.
43
Where Deltek products are used
Deltek Ladle Shroud
Deltek Stopper Rod Deltek SEN
Deltek SES
44
CBC Flow Control Systems NorAm Market
Others 14% Vesuvius 70% Foseco 5%
Japanese 11%
45
Deltek Flow Control Systems

High cost of entry
Heavy investment in plant, quality control and people
High risk
Product issues result in high cost to steel plant

Each plant has different casting conditions Each customer has 3-5 shapes unique to his plant Requires custom design and modeling of process
Highly sustainable
46
Deltek Product Positioning

Engineered Pouring Solutions
High
Custom Designed Products
Low
Med
Low end commodity products Low Med High
Tech Sales Input

47
Deltek Sales
6 5 4 3 2 1 0
2001 2003 2005
SALES $
48
Foseco Product Synergies

Deltek Ladle Shroud
TURBOSTOP SYSTEM
Afax Tundish Flux
Deltek Stopper Rod Deltek SEN Afax Mold Powder

49
Deltek SES
Casting Deck Synergy
50
The Foseco Advantage

Foseco is the only supplier that is equipped to provide integrated caster flow control and flux solutions All three product areas interact and have a significant effect on the quality and yield in the steel plant We have significant expertise in this area of the plant including equipment and software control Thus we can leverage and exploit the synergy
51
Summary Strategic Overview

L. Plutshack
October 10, 2006
Success - Clear Direction and Focused Approach

Foseco business model can be applied in Steel Steel has successfully repositioned itself to changing industry requirements Steel has an experienced team Product lines of strategic interest
CBCs are an important part of Steels future and we are very optimistic about our future success Turbostop and Mould Flux are also very interesting opportunities
Very successful where focused

No. 2 to Vesuvius in Carbon Bonded Ceramics in Europe No. 2 to Stollberg in Mould Flux in North America Globalization of Turbostop
Focus resource on value-added opportunity Compete on technology & service Exploit the synergies of our unique product portfolio Steel profitability will improve
53

Foseco Steel NorAm Business Review Summary

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Foseco Steel NorAm Business Review Summary

Uploaded by

Copyright:

Available Formats

Foseco Steel NorAm

Foseco NorAm Business Review

Who are we?

Foseco NorAm Business Review

NorAm Manufacturing & Laboratory Facilities

Foseco NorAm Business Review

NorAm Customer Base

Foseco NorAm Business Review

Steel Making Process

Years of experience focused on the casting deck.

Foseco NorAm Business Review

The Casting Deck

Foseco NorAm Business Review

Foseco NorAm Business Review

Ingot Hot Tops

Foseco NorAm Business Review

Garnex Tundish Lining System

Foseco NorAm Business Review

Organized to Improve Customer Performance

Finance & Cust. Service

Foseco NorAm Business Review

Solid Customer Relationships

Foseco NorAm Business Review

NorAm Steel Market

NorAm Steel Market

Foseco NorAm Business Review

Global Steel Production

Foseco NorAm Business Review

Foseco NorAm Business Review

NorAm Steel Imports

Foseco NorAm Business Review

USX National Steel Nucor Auburn Birmingham Seattle Trico

MRM Co-Steel Ameristeel

Atlantic North Star Cambridge

Foseco NorAm Business Review

Consolidating Steel Industry

Foseco NorAm Business Review

Best Practice Approach

Foseco NorAm Business Review

Consolidation An Opportunity for Foseco

Foseco NorAm Business Review

Customers are strong and will Survive!!

Energy efficient Technology leaders New production facilities being built

Foseco NorAm Business Review

Foseco NorAm Focus

Foseco NorAm Business Review

Targeted Sectors Why?

Similar targeting approach as Foseco

Foseco NorAm Business Review

Fosecos Target - Flow Control on the Casting Deck

Foseco NorAm Business Review

Understanding the process.

Defining the customers needs and customizing solutions.

Multifunctional account management teams

Foseco NorAm Business Review

NorAm Sales History

Foseco NorAm Business Review

Products and Applications

The Steelmaking Process

Fosecos Core Business

Foseco NorAm Business Review

Continuous Casting Process