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Baosteel's industry 4.0: how to make the steel industry with overcapacity bright

made in China 2025 connect with German industry 4.0, and what impact will it have on the steel industry that is losing capacity? Will those iron and steel enterprises under great pressure benefit from this

recently, the experience exchange meeting of the pilot demonstration project of Sino German intelligent manufacturing cooperation was held in Lingang, Shanghai. The first batch of 14 pilot demonstration projects of Sino German intelligent manufacturing cooperation were officially announced. Two projects were selected: the pilot demonstration of the Sino German Cooperative Intelligent Manufacturing port comprehensive demonstration zone in Shanghai and the pilot demonstration of Baosteel and Siemens' joint exploration of industry 4.0 in the iron and steel industry

for Baosteel, a major goal of this cooperation is to form a business model and promote it to other enterprises and industries, in addition to providing the iron and steel industry with the implementation route and experience reference of smart manufacturing

at this experience exchange meeting, Shen liming, senior manager of the operation improvement department of Baosteel Group Co., Ltd., said that the short-term goal of Baosteel and Siemens to jointly explore industry 4.0 in the steel industry is to complete the 1580 hot rolling intelligent workshop (the intelligent manufacturing pilot project of the Ministry of industry and information technology of the people's Republic of China), and the medium-term goal is to establish the framework of industry 4.0 in the steel industry in 2017 and assist Baosteel in the planning of industry 4.0. The long-term goal is to establish an industrial alliance between the two sides and export the commercialization mode of industry 4.0 to some other industries outside Baosteel Group

in the first half of this year, when visiting Siemens, Xu Lejiang, chairman of Baosteel Group Co., Ltd., said that the current situation in China, Europe and even the global steel industry is very serious and full of variables. Both sides should take advantage of the strategic opportunity of German industry 4.0 and made in China 2025 in the Internet era to jointly expand new business models. The third is to pay attention to the relationship between the government and the market. China's steel production capacity is more than 800 million tons, and the market potential is huge. Therefore, it is very necessary for Baosteel to cooperate with Siemens to explore new manufacturing and business models

the cooperation between made in China 2025 and German industry 4.0 has a long history. In April, 2013, the German government officially launched the industry 4.0 strategy. In May 2015, the State Council officially issued "made in China 2025" to deploy and comprehensively promote the implementation of the manufacturing power strategy. In October of the same year, when Merkel visited China, China and Germany announced that they would promote the strategic docking between made in China 2025 and German industry 4.0, and jointly promote the new industrial revolution and business formats

structure and performance of tensile testing machine fixture in 2015, Baosteel and Siemens established a joint working group to jointly promote the "Baosteel Siemens joint exploration of industrial 4.0 perovskite solar cells has been controversial in the scientific community"

on June 13, 2016, the Third Plenary Session of the Sino German Economic Advisory Committee was held in Beijing. Witnessed by Premier Li Keqiang of the State Council and German Chancellor Angela Merkel, Chen Derong, general manager of Baosteel Group, and Kaisa, President and CEO of Siemens AG, signed the strategic agreement on smart manufacturing (industry 4.0) between Baosteel and Siemens on behalf of both companies

how does Baosteel implement the industry 4.0 project

Shen Liming said that the steel industry is now facing the situation of overcapacity, which is gradually extending to the high-end direction. Second, export trade frictions in the steel industry have increased recently, making it difficult to export. Third, the decline of China's economic growth has slowed down the growth of steel demand. Coupled with the reduction of the total labor force, the rise of labor costs, including the improvement of environmental requirements, there is great pressure on the development of the entire steel industry

in 1996, China's crude steel output exceeded 100 million tons for the first time, and since then, the global steel industry has opened the Chinese era. In the past 20 years, China has contributed 80% of the global crude steel increment

however, the structural imbalance contradiction of China's steel industry, with overcapacity as the prominent representation, broke out intensively in 2015, and the loss rate of 101 large and medium-sized domestic steel enterprises reached 50.5%

at the beginning of 2016, China launched the goal of reducing overcapacity, and it will take five years to resolve 100million to 150million tons of excess steel capacity. According to the data of the Ministry of industry and information technology and the national development and Reform Commission, in the first half of this year, China's steel production capacity reached more than 13 million tons, which is about 30% of the target task of this year. The large and medium-sized member steel enterprises of CISA achieved a profit of 12.59 billion yuan in the first half of the year, an increase of 427.3% year-on-year, but the loss side still reached 26.3%

Shen Liming said that the current quality level of the iron and steel industry is not very stable. The comprehensive scrap rate of the iron and steel industry is also 5% and 6% in Baosteel, and the finished product rate of high-end products such as automobile plates is generally about 85%. High grade silicon steel cannot be produced according to the contract, so it can only be graded after it is produced, and then delivered according to the customer's requirements

for another example, customers' personalized demand for products is also forcing the production mode of the steel industry to change. Rapid response to users is also a competitiveness of industrial development

at the 9th China International Iron and Steel Conference held in May this year, Chen Derong said that the 13th Five Year Plan period is a critical period for the structural adjustment of China's iron and steel industry. The essence of transformation and rebalancing is to meet the personalized and precise requirements of steel consumption from the supply side, guided by the market. The structural adjustment of China's steel industry is not simply to reduce production capacity, but must be combined with technological progress, improve the proportion of high value-added products, improve production efficiency and flexibility through intensification and specialization, and realize the matching of supply and demand structure

we are also actively looking for the path of transformation of the steel industry. The prospects and potential benefits of smart manufacturing are consistent with the development of the steel industry and the problems to be solved. Shen Liming said. In 2015, Baosteel sold 22.1483 million tons of commodity billets, achieving a total operating income of 164.12 billion yuan and a total profit of 1.85 billion yuan. Its operating profit remained the best among Listed Companies in the domestic steel industry

The idea of Baosteel is to establish a fully transparent digital steel plant, and gradually build a virtual plant in parallel with reality in the digital space, so as to realize the manufacturing mode of rapid response, meeting personalized needs, products of all sizes, and delivering high-quality products

therefore, the enterprise operation will change from responsive manufacturing to predictive manufacturing; From local optimization to global optimization; Factory manufacturing process management is engaged in the transformation from backward to in-process and in advance, and finally realizes flexible manufacturing

according to the plan, Baosteel's smart manufacturing will be divided into 3+1 modes, including smart equipment, smart factory, smart interconnection, and infrastructure

in terms of intelligent equipment, we choose to set a range. We use robots to replace 3D posts, which are dangerous, dirty and repetitive posts. Shen Liming said

Shen Liming said that the automation, informatization and networking level of the steel industry is relatively high compared with other traditional manufacturing industries. At present, the equipment automation level of the main line of the steel industry has reached more than 98%, and basically all equipment is automatic control. However, the automation level of many logistics operations is not high, so in Baosteel's smart manufacturing plan, a considerable number of automation, that is, industry 2.0 initiatives, need to be implemented

in terms of smart factories, there is still a lot of room for real-time process control, equipment maintenance, logistics management, refined cost management and personnel management; In terms of user interconnection, there are a lot of measures to be taken with suppliers

at the 3+1 level, Baosteel and Siemens have formed a total of 12 teams to carry out work. Among them, the 1580 hot rolling intelligent workshop demonstration pilot will be carried out in eight areas, including sensors and detection technology, equipment diagnosis and monitoring, and the construction of digital chemical plants. After completion, our whole 1580 workshop can make great strides in terms of quality, automation and labor efficiency, and become a representative hot rolling intelligent space in the world

recently, the transformation and upgrading of Baosteel hot rolling 1580 intelligent workshop was officially launched, and the project is planned to be completed in 2017. Baosteel 1580 production line was put into operation in the 1990s, with an annual output of 4million tons of hot-rolled coils. The production line has a good foundation for automation and information construction. However, compared with the world-class advanced level, there is still a certain gap in the automation rate of production line, product quality and key consumption indicators, which has a certain space for transformation. After the completion of the project, the energy utilization rate, automatic steel rolling rate and labor efficiency of 1580 intelligent workshop will be increased by 5%, 6% and 10% respectively, and the cost will be reduced by 20%. Steel manufacturing will be safer, more efficient and more environmentally friendly

our cooperation with Siemens has a demonstrative effect on the transformation of the steel industry in trouble, and can provide the steel industry with the route and experience reference for the implementation of smart manufacturing. We are confident to improve quality and efficiency, build a digital factory with new era significance, and create a model for Sino German cooperation. Shen Liming said

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