1954 riva group 2004 4 Engineer Emilio Riva, President of the Riva Group The Riva Group, 50 years since its foundation, is an important presence in the steel and iron world scene and forms a substantial part of the current Italian industrial system. Running again through the experiences and successes that have led to the Group’s current form, I feel proud, as an entrepreneur, to have made an essential contribution to the development of an industry that has helped to bring about a production, social and economic evolution in what is now defined as the “Italian miracle”. However, if we have managed to reach this point, it is also because the commitment and great passion that have always driven my own professional career, have been supported both by the dedication and this same passion in the members of the Riva family, my brother Adriano, my sons Fabio, Claudio, Nicola, Daniele, and my nephews,Cesare and Angelo Riva who have defined and achieved with me the industrial strategies of the Group, as also by the essential contribution of all the workers who have shared with me, through their responsibility and professionalism, all the challenges and successes of half a century of activity. Today, the Riva Group is a dynamic presence, ready to meet the qualitative and service requirements of customers that are now from many countries all over the world, but also aware of the needs for environmental and social compatibility in its production sites. A Group that has conceived and constructed its own development without ever losing from sight the fact that the steel and iron market is an international market, in which, in order to compete with the best competitors, it is necessary constantly to encourage the continuous search for technological innovation. This publication hopes to provide a framework for the current industrial and economic importanceofourGroup and to give testimonyto the roadwehave travelledtogether so far. Emilio Riva President, Riva Group 5 The Riva family. From left: Angelo, Cesare, Emilio, Fabio, Nicola, Claudio, Adriano, Daniele YEARS OF STEEL: A CHAIN OF EVENTS MOULDED OVER TIME 6 Our Story The RIVA Group is a set of enterprises operating in the field of steel and iron production and its associated activities, and is the absolute leader in this sector in Italy, the sixth in Europe and among the first tenth in the world. The position it has reached at domestic and international level in over 50 years of activity, is also the result of an expansion policy that has led to the acquisition of numerous companies to be restructured and re-vitalized. The most important acquisition was that of the Ilva, in 1995, when it was privatised by the Italian Government. Heading the Group is the Riva family, the President and founder Emilio Riva, with his sons Fabio, Claudio, Nicola and Daniele and his nephews, Cesare and Angelo, who fill the key mana- 7 gerial positions. From 2004, Emilio Riva, son of Fabio, the first of the third generation of the family Riva, has taken part in the activity. The Group’s Origins The Riva Group started in 1954, when the brothers, Emilio and Adriano Riva, established the Riva & C. S.a.s. and decided to start up on their own in an industrial business based on working and trading in scrap iron. It was supplied to steel and iron industries in Brescia that transformed it into finished products, mainly reinforcing bars, that the same Riva & C. provided to trade on the market. In the summer of 1956, Riva decided to move to the direct production of steel and, in fact, already on 7 March 1957, the first plant started operating at Caronno Pertusella, near Milan. The plant was equipped with an electric furnace, produced by Tagliaferri, with a 25-ton capacity per casting, when the size of the largest furnaces in Italy were still only 15 tons. Timely knowledge of the market and investments realised in the following years led to a very rapid growth in production, from 30 thousand tons in 1957 to 190 thousand tons in 1962, in an historical period – that of post-war reconstruction – that favoured steel and iron production. The Growth The nineteen-sixties marked an important period for the steel and iron sector. The Italian companies should face an increasing competition on a national scale and later, in a European and international context. This movement was accompanied by the extraordinary development of particularly competitive, small, steel works, based on steelmaking through electric arc furnaces and whose success culminated in the nineteen-seventies with the introduction of a new production technique: continuous casting. Continuous casting was, in general, a great challenge for the iron and steel industry and, especially for the Riva Group, brought about very important results. From that time onwards, the small sized ingots that were later laminated into semiproducts (billets) and successively into long products, were abandoned altogether and the billets were obtained directly from liquid steel through this new process, which allowed the yield of the production cycle to be improved, reducing costs and making it possible to win new market shares. In Italy, only at the Terni Iron Works was vertical continuous casting being used, with a somewhat low yield. Emilio Riva was convinced that the curving model being researched on in Austria, then could offer far more substantial cost benefits and for this reason turned to Luigi Danieli, owner of the construction company of the same name, and to Renzo Colombo, a designer already engaged in a feasibility study on “curving continuous casting”, in order to cre- Opposite: Riva Acciaio: Lesegno works (Italy) Below: Riva Acciaio: Malegno works (Italy) ate the new technology autonomously in Italy. The collaboration between these three, the industrialist, the designer and the plant constructor, met with success: on 2 June 1964, in Caronno, the first continuous casting created by Danieli started operating, and this was the first three-line curving continuous casting to be introduced into Italy. It was precisely this continuous casting, thanks to the cost reduction it made possi- 8 ble, that enabled the Caronno Iron Works to deal with the 1964 crisis, i.e. the first recession after the Italian “economic miracle” that led to the closing of many factories. In 1966, Riva made a first important acquisition concerning the Steel and Iron Works of Lesegno, in the Province of Cuneo, and became a minority partner in the SEII – Società Esercizi Impianti Industriali di Malegno (Brescia), where Riva also took Below: Siderúrgica Sevillana: Seville works (Spain) over the management. At the end of the nineteensixties, the Riva Group produced 300 thousand tons of steel per year and was in a position to offer a wide range of long rolled sections, thus opening the way to working with foreign countries. The three essential factors contributing to the success of the company were: its flexibility and very lean structure, with minimum fixed costs; its high level of specialisation that meant it could deliver small batches in very fast turnaround time; its human resource management through direct relationships and a “horizontal” structure which encouraged staff participation and responsibility, thus giving rise to a continuous process of improved benefits. The nineteen-seventies saw the first huge investments on the European scene, start- ing from the acquisition in 1971 in Spain of a 5% holding in SISE (Siderúrgica Sevillana), together with a group of Italian, German and Spanish entrepreneurs. In the same year, Riva took over the management and, in 1978, after the progressive disengagement of the other partners, full control. In 1974, the Associated Steel Industries (ASI) was set up in Montreal, Canada, a company working on the selection and recovery of scrap iron generated by the Canadian automobile population. In January 1976, the Riva Group moved into the French market, taking out a holding and assuming the management of a small steel works (Iton Seine) specialised in the production of top quality reinforcing bars (for which it obtained the French quality approval 9 CRELOI), later acquiring full control in 1997. The world oil crisis in 19731974, with its considerable increase in energy costs, suddenly put the brakes on economic expansion in the whole of the western market, affecting all industrial sectors. The net decline in worldwide steel consumption registered in 1975 (-9%) and the aggressive sales policy practised by countries outside the European Community, such as South Korea, Mexico, Argentina and Brazil, put the traditional iron and steel industries into a state of crisis as their technologies were based mainly on more complex integral cycle plants with more rigid fixed costs compared to the electric cycle that characterised technologically the Italian small steel works. The United States, and other steel and iron areas, defend- ed themselves, using protectionist measures, from the aggressiveness of the new exporters, who were ready to sell below cost on international markets, in order to improve use of their plants. This crisis affected hardest just those iron and steel works that were the most obsolete, especially those consuming more energy, that were still running in those countries that had not taken steps to make innovations in their production instruments. The Italian small steel works, thanks to their production and flexibility and high level technological innovation, were able to deal with the situation, even winning market shares in the sector of long rolled sections, and in particular, in that of reinforcing bars. In 1980, the Riva Group’s 10 Opposite: Wire rod Below: ILVA: Genoa works steel production reached 1.1 million tons (of which 61% in Italy, 28% in Spain and 11% in France) and the production of rolled sections reached 670 thousand tons (of which 34% in Italy, 45% in Spain and 21% in France). The Group’s role as precursor regarding the commercial expansion of the small steel works in countries outside the European Community is also noteworthy. Already in 1978, the Group’s companies were the first to sell steel directly in China, a market that previously had been exclusively Japan’s. At the end of the nineteenseventies, while many iron and steel groups turned to the incentives provided by the European Community and national governments for the dismantling of obsolete plants, the Group invested massively in the new technologies: the levels of automation in the casting process grew, computerised plants multiplied, scientific research was speeded up and new possibilities in scrap iron procurement were explored. At the beginning of the nineteen-eighties, more precisely in 1981, an important diversification at production level was implemented with the acquisition of the company, Officine e Fonderie Galtarossa (OFG) of Verona, specialised in the production of not only high quality reinforcing bars but also wire rods for drawing. Under the management of the Riva Group, the company increased its steel production from 180 thousand tons in 1980 to 740 thousand in 2000. 11 The Privatisations In the nineteen-eighties, in order to find a solution to the serious imbalance between the supply of iron and steel products and demand, the EEC imposed a reduction in production capacity on the iron and steel works that had benefited from state subsidies. The Community authorities in charge of the iron and steel policy were forced, therefore, to review the ECSC industrial policy in a more interventionist sense and to adopt the “Davignon Plan” for the iron and steel industry. The Italian public iron and steel industry, IRI–Finsider, together with other large European groups, received considerable public funding. This was how the first phase of the EU restructuring of the Iron and Steel Industry was achieved, with the disman- tling of plants all over Europe, the reduction of production capacity by approximately 30 million tons and approximately 30% of the labour force. In this context, in 1984, the hot rolling mill of the integral cycle plant Italsider of Cornigliano, where, in 1953, the first “continuous wide strip mill” in Italy had been created, had to be closed. The remaining part of the “hot” working of the unit was broken up and transferred in 1985 to COGEA (Consorzio Genovese Acciaio) whose management, with relative majority of the shares, remained in public hands despite the entry of capital from private operators (including the Riva Group). The Riva Group’s interest in the Cornigliano factory arose from the need to reduce its own dependency on scrap iron, which was increasingly difficult to find in Italy because of insufficient supply and for which it was becoming increasingly necessary to resort to importation. In 1988, the Group acquired other shareholdings in COGEA, so that an absolute majority of the shares was reached, leaving only a minority share in public hands. The consortium was transformed into a Joint-Stock Company, under the name of “Acciaierie di Cornigliano”. With the acquisition of the majority share, the Riva Group assumed its management. It was in this way that the first privatisation in Italy of an integral-cycle iron and steel factory was achieved. From 1989, this factory has produced on average 1 million tons/year of semi-finished products. The Cornigliano factory enabled the Riva Group to extend its product range to slabs (semi-finished for the production of flat rolled products). Still in 1988, the Riva Group played a leading role in a further important privatisation, this time carried out in France, with the acquisition of a majority shareholding of the capital in ALPA (Aciéries et Laminoirs de Paris), which possessed a production plant (electric steel works and rolling mill for reinforcing bar) at Gargenville. In 1989, the Riva Group produced 3.2 million tons of steel (of which 2.1 in Italy, and 1.1 in Spain and France) and 2.2 million tons of rolled sections, covering approximately 10% of the reinforced bars production of the EEC. Between 1989 and 1992, the expansion of the Group increased in countries with a long tradition in the iron and steel industry, such as Belgium and Germany. In Belgium, the rolling mill no. 3 of Charleroi-Marcinelle was bought out, of which the production capacity was 750 thousand tons/year and a new electric steel works was created to feed it. In this way, the Thy Marcinelle was born, which in addition to consolidate the occupational need of the area, represented also a concrete revitalisation of a region characterised by a deep crisis of the iron and steel sector and where a large Italian labour force had traditionally been present and which, now, received from Italy also capital, technology and entrepreneurial skills. At the beginning of the nineteen-nineties, German reunification and the privatisation of the corporations of the previous Eastern Germany, enabled the Riva Group to acquire two steel and iron plants located in the region of Berlin: Brandenburger Elektrostahlwerke and Hennigsdorfer Elektrostahlwerke. Both were bought out in 1992 from the Treuhandanstalt, the German body in charge of privatisation of the ex-DDR companies. In 1992, these companies produced respectively 749 thousand and 360 thousand tons of steel. In 2000 they produced respectively 1,283,000 and 811,000 tons of steel. In 1994, with a total production of 5.8 million tons of steel and 5 million tons of rolled sections, the Riva Group had reached dimensions that placed it among Europe’s leading players. 12 Left (top): Riva Stahl: Hennigsdorf works (Germany) Opposite (top): ALPA: Gargenville works (France) Opposite (middle): Riva Stahl: Brandenburg works (Germany) Opposite (below): Hellenic Steel: Thessaloniki works (Greece) Below: Thy-Marcinelle: Charleroi works (Belgium) Expansion continued in April 1995 when the Riva Group, as partner with absolute majority, bought from IRI, together with other Italian and foreign minority partners, the whole capital of Ilva Laminati Piani. This operation indubitably represented the most important privatisation in the whole of the Italian Government’s disengagement from the iron and steel sector. This purchased company, which combined many of the companies controlled by the publicly owned ILVA, produced flat non-stainless steel rolled sections mainly at its factories in Taranto, Novi Ligure, Genoa – Cornigliano – and Turin. With the acquisition of Ilva Laminati Piani (which has gone back since 1997 to the Below: ILVA: Taranto works, hot strip mill name of ILVA), the Group also acquired control of companies producing tin plate (ICMI), large-sized plates and pipes (ILT) and other companies dealing with transformation and verticalisation of flat plates, including Tunisacier, with its works at Biserta, in Tunisia. Acquisition of the Ilva Group was of fundamental importance in the story of the Riva Group. At production level, this led to a leap forward in annual steel production between 1994 and 1995 from 6 to 14.6 million tons and in the production of rolled sections from 5 to 12.8 million tons. Obviously, this huge enterprise required a long process of re-organisation extending up to 1996 and essentially focussed on eliminating non-strategic investments, mergers and acquisitions, oriented towards integrating Ilva into the Riva Group, in addition to simplifying the structure of the Group. This action allowed the Group to triplicate its net turnover (from 3,000 billion lire in 1994 to 9,300 billion in 1996) over only two years, and to multiply by almost nine times its net profits (from 112 billion lire to 945 billion). In 1996, the Riva Group bought from the company IBL, 100% of the Sellero (BS) factory, which is now Riva Acciaio. In this works, in 1998, an investment in strengthening the rolling mills for beams was made, which led to a growth in the productive capacity from 300 thousand to 500 thousand tons. In 1997, furthermore, ILVA bought majority control in Greece of HELLENIC STEEL, a company produc- 13 ing galvanised, tin plate and cold rolled sections, while in Italy it incorporated the Acciaierie di Cornigliano. In the meantime, the Riva Group had progressively increased its own shareholding in ILVA S.p.A., which on 31 December 1998 was shown as consolidated in the balance sheet of the group leader RIVA ACCIAIO in an amount equal to 57,85%. In 1998, moving forward in the process of company reorganisation, it was resolved to merge and incorporate into RIVA ACCIAIO, the Acciaierie Ferriere of Caronno, the Acciaierie Ferriere of Tanaro, the Officine e Fonderie Galtarossa and the SEII. Consolidation and Present Asset of the Group In 1999, the Riva Group, implementing a strategy of improving the logistical structures linked to its own iron and steel business, decided to invest further in the shipping sector through its company ILVA SERVIZI MARITTIMI, purchasing a 250 thousand ton transoceanic ship (the Arcturus), which was equipped to transport raw materials, especially minerals, business that up to then had been carried out by third party ship owners. The ship, like all the others, sails under the Italian flag and its crew is exclusively Italian. In addition to this investment, over the last few years, the Group has further strengthened this sector with the purchase of two push boats and four lighters of 30 thousand tons, for fin- ished-products transportation, enabling an innovative rationalisation of sea transport. The push boats become detached from the main part of the ship (lighter) during the unloading phase, then it couples the lighter that has concluded its loading and thus carries out a new trip, optimising time in the use of the boats. These last investments in the shipping sector have made the Riva Group one of the most important Italian ship owners. In 2000, the French Group, SAM, was purchased with its 8 production and transformation plants in 5 European countries and employing approximately 1,500 people. The SAM Group produces 1.5 million tons of steel, 70% transformed in the Group’s works into wire rod, electro welded mesh and building products. In the same year, two new plants became operative. They are the result of the investment strategy of the Group, mainly aiming at im- proving the environment compatibility of the processes and at introducing technologies that increase transformation verticalisation in order to obtain value-added products. These plants are the new coke furnace battery no. 12 of the Ilva factory in Taranto, which is equipped with the most advanced systems for the environmental impact control, and the new hot-galvanising plant with a 40,000ton productive capacity. These plants improve signifi- cantly the production of high value-added finished products of Taranto factory. They are meant mainly for the leading sectors of the EU industries, such as the automobile. Today, the Riva Group possesses 40 production and finishing works, of which 22 are in Italy, where the main part of the steel is produced (approximately 61.2%) and where approximately 66% of the turnover is achieved, but it also boasts strong representation in the interna- ILVA: Taranto works, hot galvanising tional field with works in Germany, France, Belgium, Spain, Greece, and also Tunisia and Canada. The Group’s enterprises preside over all stages of iron and steel production process, starting from the production of raw steel (made either with the integral cycle or electric furnace) through hot and cold rolling, to the production of coated steels and specialist finishing. Primary production and the transformation of the steel are integrated with other activities, synergic with iron and steel, such as scrap selection and preparation (a works in Canada and a crushing plant in France), the production of refractory materials (5 factories in Italy), the production of rolling roll mills (one factory in Italy), the shipping business (13 ships). The company has a computer network of a capacity to ensure that the managerial decentralisation of the individual plants is necessarily complementary with the centralisation of the strategic operations. Information management of data takes place in real time in all the factories of the Group. This particular architecture makes it possible to meet the most complex management requirements without delay and to control individual orders effectively at any stage of production or marketing. BLAST FURNACE STEEL Production Technologies The Riva Group uses two different technological processes for its production of raw steel: the integral cycle and the electro metallurgical cycle. The integral cycle is today the most widely used technological production cycle for steel (the second is the electro-metallurgical). An integral cycle, iron and steel works consists of a plant and work complex, which, starting from the raw materials in their natural state (fossil carbons and iron minerals), enables finished metallurgical products to be obtained. The fossil carbons, appropriately drawn from deposits and blended, are distilled in the cokery – made up of a series of furnaces grouped in batteries – to produce metallurgical coke, a material that constitutes the chemical reducing agent in the manufacturing process of liquid iron in a blast furnace. The iron mineral, taken from the deposits, is processed in the preparation plant which, through crushing, riddling and blending of the different types of minerals available, enables a material to be obtained that has the chemical composition and granulometry suitable for loading into the blast furnace. The finesized iron minerals are processed in the agglomeration plant, where they are transformed at high temper- 16 ature, for partial smelting and sintering of the particles, into a porous and resistant structure. A variant of this process is pelletisation, which consists of transforming the fine mineral, in special plants, into balls of the appropriate size that are subsequently baked to give them adequate mechanical strength. In the blast furnace the iron oxides, in the form of mineral, sinters or pellets, is transformed into liquid iron as a result of the reducing chemical reactions caused by coke and carbon monoxide, in turn developed from the combustion of coke with hot air (approximately 1200 °C) blown into the plant enriched with other replacement fuels of the coke. The liquid cast iron is moved to the steel works by special railway trucks, called torpedo wagons because of their particular, elongated shape, internally lined with refractory. Modern steel works in an integral cycle metallurgical factory are equipped with converters with oxygen blowing in from above through launching (LD process), in which the liquid iron is refined, i.e. deprived of carbon and then transformed into steel. In the converter, in order to achieve thermal balancing of the process, calculated quantities of scrap iron and lime are added, needed for the safeguarding of the refractory lining and the metallurgy of Left (top): Ore yard Left (below): Coke unloading Below: Blast furnace Right (top): Quarto mill for plates Below: Pig iron casting from blast furnace the process. The liquid steel poured into a ladle with the addition of the iron alloys necessary to reach the desired chemical composition, is normally sent to the ladlefurnace processing station, enabling the final chemical preparation of the metal to be refined and the bath to be homogenised. The solidification of the steel takes place by casting in continuous casting machines, in which are included the ingot moulds, constituted of copper moulds chilled by water, with a section equal to that of the product to be manufactured. Inside this the process of solidifying the steel begins, which will be completed on exiting from the ingot moulds, by water sprays along the subsequent sections of the continuous casting machines. The solidified semi-product, cut to the desired length by means of oxygen-lance shears, is transferred by rollers to the evacuation cooling bed. The semi-finished products are then heated in special furnaces and rolled in normally specialised rolling mills, for transformation into finished products. 17 ELECTRIC FURNACE STEEL The other technological production cycle for steel is the electro metallurgical cycle. The heart of a steel metallurgical factory consists of the electric furnace, which can be described as a cylindrical container closed by a lid (vault) crossed by electrodes linked to powerful transformers and internally lined with refractory material. Inside the electric furnace the process of transforming the scrap iron into liquid steel is carried out. The raw material, therefore, is represented by the scrap iron, which is normally purchased in a size suitable for immediate use or crushed and sheared with special installations making it into the ideal sizes for use. Among the different types of electric furnace, arc furnaces are those currently most widely found. In these, the thermal energy needed is provided through the electric arc that develops between the scrap iron, the 18 smelted steel and the electrodes crossing the vault. To speed up the process, a technique of blowing oxygen into the bath of liquid steel through a nozzle is commonly used. Through the electric arc, first the smelting and then the refining starts, with the addition of lime and other correcting elements that give the steel the temperature and composition required. At this point, the ladle is transferred to the continuous casting machine and follows the process previously described for the integral cycle. In contrast with integral cycle plants, those using the electro metallurgical cycle are more widely found over the territory, by virtue of the raw materials being available or by the location of the consumer market. The balancing of the total production between the two different production cycles is a specific characteristic of the Riva Group. Below (left): Electric furnace Below (right): Scrap basket for charging in electric furnace Opposite: Eight continuous casting lines for billets 19 DAILY STEEL MODERN STEEL EVOLVING STEEL Products and Applications With an ever wider range of applications, STEEL is constantly present in our daily lives, making houses, work places, cities and large infrastructures more modern, functional and safe. Hot and cold rolled sheet, coated pipes, wire rod, reinforcing bars, plates, welded pipes for oil line pipes and gas line pipes, beams, bars: these are some of the basic products for the current stage of development of civilisation. The design of structures and innovative objects, created on the basis of the functions they need to carry out, is expressed best through the use of steel. Steel is constantly undergoing improvement, making it one of the leading players in industrial development. It also has the prerogative of being fully recyclable, which makes it 20 an extremely contemporary material, in line with modern environmental requirements. The products of the Riva Group, a group that is active in the sector of carbon steels and non stainless alloy steels, are divided into two large metallurgical families: flat rolled products and long rolled products. Each family comprises a huge range of products to meet the most diverse requirements of clients and consumers. Opposite: Coils Below: Billets Flat Rolled Products These include hot rolled products, hot rolled coils, cold rolled sheets, electrogalvanised rolled sheets, hot-dipped galvanised sheets, pre-painted sheets (coated coils) and electrolytic tin plate, round welded pipes, profile tubes specially shaped (hollow sections). Hot rolled coils, cold rolled sheets and hot-galvanised sheets concern a large part of industrial transformation sectors (building, domestic appliances, cars, pipes, etc.), which could not have reached the current level of development without the characteristics of the new steel alloys. Tin plate containers (cans) protect and preserve better and for longer a huge number of products, mainly in the food industry. Hot rolled plates constitute the base material for the building of ships, off-shore platforms, boiler-making and industrial plants of primary importance. The plates are also intended for the production of the pipes for gas pipelines, which now have an irreplaceable function in the distribution of energy at national and international level. 21 Long Rolled Products These include wire rod, reinforcing bar, rolled bars, beams, electro-welded meshes and cold ribbed reinforcing bar in coils. Large communication infrastructures (road and railway bridges) and the construction reclamation of deteriorated historical buildings are possible only due to the use of steel in the structural parts (beams, electro-welded meshes, reinforcing bars). The components of industrial machinery (for example, transmission shafts), often complex and articulated, are obtained, moreover, through the forging of steel bars. With wire rod, the mechanical industry creates thousands of irreplaceable components in our daily lives (screws, nails, bolts). Flat Rolled Products Quarto heavy plates Applications These are obtained through a particular thermal-mechanical rolling mill process of slabs in the “quarto reversible mill” equipped with a190” width finishing “stand”. On leaving the rolling stand, an accelerated cooling system can complete the rolling process in order to reach high strength, tenacious and particularly structures that can be welded. — Pipes for oil pipelines (on-shore and off-shore) — Pipes for gas pipelines — Pipes for aqueducts — Naval construction — Metalwork — Boilers and pressure vessels — Means of transport — Earth moving equipment 22 Opposite (top): Off-shore platform Opposite (below): Plates Right (top): Gas pipeline (courtesy of SNAM) Right (middle): Aqueduct Right (below): Welded and coated pipes Here below: Helicoidal welding Large-sized welded and coated pipes These are manufactured in plants with very highly specialised technology, through bending of plates and its subsequent welding with electric and high resistance welding. The production cycles are developed to provide the product with the most appropriate and functional characteristics for the specific requirements of the infrastructure projects they are intended for (on-shore and off-shore oil and gas pipelines, aqueducts, etc.). The quality of the pipes produced by Ilva, intended for operating in arctic areas and very deep sea environments is of particular importance. Applications — Oil pipelines — Gas pipelines — Aqueducts — Collection and distribution networks for fluids 23 Hot rolled black and pickled coils These are obtained in specialised plants from continuous hot rolling of slabs produced by continuous casting. In cases of specific surface requirements, they are pickled in special continuous plants that remove the oxide that forms during hot rolling. These constitute the base family of flat rolling products and can be formed and bent at ambient temperature, punched, welded in the shape of medium and high pressure pipes, and finally cold rolled and coated. Applications — Gas bottles — Boilers — Pressure vessels — Automobile wheel rims — Welded pipes — Metalwork — Cold re-rolling 24 Opposite (top): Gas bottles Opposite (middle): Pickled coils Opposite (below on left): Automobile wheel hubs Opposite (below on right): Hollow sections Right (top): Semi-finished thin sheet for magnetic uses Right (middle): Electric engine Right (below): Cooking surface in enamelle cold-rolled sheet Here below: Cold-rolled coil Cold rolled coils Applications These are obtained through cold rolling of hot picked coils in special continuous rolling mills, followed by reheating and flatness finishing (temper rolling). These are used when there is a requirement for characteristics of a surface aspect of high quality, that can be deep drawn, formed, coated with porcelained enamels, etc. After an adequate production cycle, they may have magnetic characteristics that meet the specific requirements of the electromechanical industry. — Domestic appliances — Automobiles — Pipes for furnishing elements — Heating elements — Electric engines — Barrels and containers for storage 25 Hot-dipped galvanised, Electrolytic-galvanised and aluminised coils The coating of these products is obtained by passing cold rolled strip in a zinc or aluminium bath in the liquid state or by electrically depositing zinc on the surfaces. The sheets coated with zinc or aluminium are indispensable when the basic characteristic of the final product has to be the degree of protection and resistance to oxidation and corrosion. Applications — Building industry — Metal working — Domestic appliances — Automobiles 26 Opposite (top): Car body in galvanised steel Opposite (middle): Hot galvanised coils Opposite (below): Catalytic muffler in aluminised steel Right (top and middle): Building coatings with pre-painted steel panels Here below: Pre-painted wound coils Pre-painted coils Applications These are obtained from the depositing of paint on a previously hot-galvanised cold rolled sheet. These techniques provide the building and domestic appliance industries with malleable steel sheets in coils that are already perfectly painted in a wide range of colours on one or both sides. This enables economies to be made in the production processes, eliminating, in many cases, investment in costly (from the ecological point of view) post-painting plants. Makers of profile sheets, panels, internal furnishings, scaffolding, false ceilings, casks, domestic appliances, workshop doors, roofs – to quote only a few of their uses – thanks to pre-painted sheets, have access to preprepared material that has only to be shaped. — Domestic appliances — Building components 27 Electrolytic tin plate Electrolytic tin-free steel This is made from a thin sheet cold rolled, coated with a layer of tin or tin-free steel, applied with modern technologies for electro-plating. The use of containers, adopted already two centuries ago, created in this type of steel represents a basic stage in the history of the conservation of foodstuffs, together with salting and freezing. The mechanical characteristics of the steels used make it possible to obtain can casings from a single metallic disk subjected to deep drawing to which the lid is added. Applications — Packaging for foodstuffs and other items — Crown caps — Industrial packaging 28 Opposite (top): Tinplate can for tomatoes Opposite (middle): Crown cap Opposite (below): Container Opposite (bottom): Tin-free steel sheets with cutting “scroll” Right (top): Reticular structure for large covering with hollow sections Below: Elliptic hollow sections Hollow sections Applications These are obtained in plants specialised for continuous welding of hot rolled strips, profiled continuously on plants that give the required shape to the hollow section (round, square, rectangular, etc.). Within the range of products for industry, the hollow sections constitute a basic family for very many and different uses. An important, modern use of the hollow sections has been developed in designing structures defined as “reticular structures”. It is possible to create large buildings for commercial, sports, recreational, transport, etc. use, with autonomous roofing that it would be difficult to achieve with materials other than steel. — Window and door frames — Reticular structures — Fire doors — Scaffolding 29 Long Rolled Products Wire rod Applications Obtained by hot rolling billets on specialised continuous mills, wire rod is a long and strong wire of rolled steel that is used in numerous industrial, artisan and mechanical contexts. The daily possibilities for using wire rod are numerous: fencing, screws, nails, small metallic items and other components used also for creative and restoration activities. — Nails — Metal mesh — Steel wire — Wirerope — Wire for electrodes 30 Opposite (top): The complex structure of a steel cable Opposite (middle): Wire rod coils Opposite (below): Suspension bridge Right (top): Applications in construction Right (middle): Reinforcing bar Below: Electro-welded mesh Reinforcing bar and electro-welded mesh Obtained on continuous mills through hot rolling of billets, the reinforcing bar is made up of bars or coils of round profile of which the surface is ridged or indented to increase adhesiveness to cement in building work. The electro-welded mesh is obtained by electro-welding of the drawn wire or reinforcing bar, rolled or recoiled. These products, in addition to functioning as support to structures, also have very high elasticity, a basic requirement in order to give buildings erected in seismic areas an adequate ability to absorb stress. The regulations, constantly updated, for the construction of civil buildings, especially in seismic areas, and the standardisation of building practice have made the use of these products irreplaceable in the manufacture of products intended for the construction sector. Applications — Civil and industrial construction — Road, port and railway infrastructure 31 Hot rolled bars Applications Steel bars are obtained through a process of hot rolling and can subsequently be cold finished. The numerous elements deriving from steel bars constitute the basic material for the mechanical industry: gears, transmissions and thousands of other components that have to resist, sustain, or transmit movement and must not become deformed. In this context, steel contributes toward concrete industrial development. — Earth moving equipment — Gears — Transmissions /gear boxes 32 Opposite (top): One of the thousand applications of the bars (upsetting flanges) Opposite (below): Steel round bars Right (top): Covering structure Below: Beams Beams Applications Obtained through the rolling of semi-products on specialised mills, beams are an irreplaceable structural element in modern industrial and civil construction. In fact, they constitute the bearing element in large buildings and large metal structures for industrial machinery. Thanks to this product, construction techniques have undergone a basic turnaround in the safety sector. — Bridges — Industrial building — Civil building — Road and railway infrastructure 33 Other Products Refractories Applications Refractories are ceramic materials able to resist high temperatures. Because of this characteristic, refractories are used by a number of different industrial sectors. In particular, they are used in the metallurgical industry as internal lining of installations for all those smelting and developing processes of steel that are carried out at temperatures in excess of 1000 °C. — Heating furnaces — Blast furnaces — Electric furnaces — Smelting furnaces — Ladles — Cowpers — Convertors Above: Tundish for liquid steel distribution in continuous casting plants Left: Internal lining of torpedowagons Opposite: Internal re-lining of torpedowagons 34 35 Rolling rolls Applications The rolls are tools used in rolling plants for deforming materials. The casted rolls, either mono-metallic or bimetallic, can be created by static casting or centrifugation. Thermal processing following smelting achieves metallurgical characteristics that are appropriate to the use required. — Iron and steel metallurgy — Non-ferrous metals — Non-metal products 36 Opposite and right (top): Rolling rolls Below: Heat treatment of rolling rolls 37 LOGISTICS Supply Chain The logistics system of the Riva Group is a compound system using, in a complementary manner, both sea transport – the greatest part – and rail and road transport. Efficient transport organisation, given the total volume of freight moved – amounting to approximately 60 million tons per year –, represents a pivotal problem for the Group, both with view to the successful outcome of its production activities, featuring cycles that are completed in different factories, and also in order to reach the final objective, which is one of ensuring service to customers (in respect of delivery times, etc.). The Group organises the corporate operating flow management, from procurement of raw material to distribution of finished products, favouring sea transport, with the result, inter alia, of causing less congestion in road transport and with consequent benefits also from the environmental point of view. The most important section of the logistics system, 38 therefore, is that of sea transportation, which moves approximately 36 million tons of freight per year and uses primarily ships of various tonnage owned by the Group: a trans-oceanic ship of 250 thousand tons for transporting raw materials, in addition to four 28-thousand ton ships for coastal transportation of metallurgical products. Recently, two push boats and four 30-thousand ton lighters have been added to the fleet, the latter using a system by which the push boat hooks up to the lighter, forming a single hull that can sail with maximum safety in any sea in the world. This highly innovative system enables considerable savings to be made in the timing of operations: in fact, while a lighter is used in loading and unloading, the push boat is free to transport another lighter. The Group, as mentioned above, moves its freight also by rail, combining with the other two systems or in direct stretches, for a volume reaching on average 6 mil- Left (top): “Sideracrux” (8,000 t) Below: “Gemini” (28,000 t) Right (top): Push boat (“Ursa Minor”) ready to hook up to another lighter (“Megrez”) just loaded Middle: Push boat and lighter hauled on the pier of Taranto (30,000 t) Below: “Arcturus” (250,000 t) for iron ore transport lion tons per year. It should be noted that in this sector too, which often involves the internal movement of individual production units (the Taranto factory alone has an internal 200 km railway network), sizeable investment has been made in vehicles, especially wagons that travel either within the Group’s factories or on the national railway network. Finally, with reference to wheeled transport, which is carried out mainly through third party operators, the volumes moved by the Group amount to approximately 18 million tons per year. 39 IRON AND STEEL METALLURGY IS A PRECISE SCIENCE Research and Development Research and Development activities can be grouped into three main streams, representing the structural guidelines of the technological and metallurgical development of the Riva Group: 1. Product development design, relating to the study, preparation and industrial production of innovative products or those mainly adjusted to the evolution of the market. 2. Research activities aiming at the optimisation and innovation of corporate production cycles. 3. Applied engineering projects. 40 The Riva Group uses both the structures of factory laboratories for applied research and also some laboratories expressly dedicated to basic research, out posted to Lesegno (metallurgical processes and long product development) and Taranto (flat product development and raw materials laboratory). Exchanges and synergies with the research being carried out at universities or private and public institutions with recognised traditions, are continuous and fruitful. Work focussed on cooperative research projects, benefiting from financing, in accordance with art. 55 ECSC, from the European Union is also intense. This research concerns various themes and is structured on a multi-partner basis, involving other large European iron and steel industries and research centres. For its study and research in the field of steel metallurgy, the Riva Group uses numerous and sophisticated equipment. In particular, one of the most advanced process simulator available, three electronic microscopes, equipment for metallurgical, chemical physical and mechanical controls. With reference to the activities listed above, the main research carried out in the field of Product Development for FLAT ROLLED PRODUCTS is: Simulators of metallurgical processes Hot rolling Study of high-resistance rolled sheets with improved deep drawing quality and mixed structure. Study on hot rolled strip, Dual-Phase for wheel rims. New micro-alloyed anti-ageing steels with high deep drawing capabilities. Interventions in the production process are concentrated mainly on: Dual-Phase steels for automobiles, products in continuous reheating and galvanising. The development of a new hot rolling cycle at low temperatures (lamination in the ferritic field) for the production of steels intended for cold rolling and tin plate. Experimental activities oriented towards qualifying plates for pipes (gas pipelines) operating in SOUR high-performance contexts. Development of new hot galvanising cycles for highresistance steels. Applied engineering projects have developed mainly in two areas: Cold rolling and coated sections Study and promotion of new cold rolled and coated products, dedicated mainly to the automobile, construction and domestic appliance sectors. Close collaboration with customers on medium-long term subjects, such as the development of planning platforms for the automobile sector. New steels for enamelling. The solving of technical problems arising with the end user, such as fragility of the steels for operations New classes of galvanised and pre-painted products for construction . 41 of cold plastic deformation and problems of the deep drawing capability of highresistance steels in the automobile sector. The main research carried out in the field of Product Development for LONG ROLLED PRODUCTS is: The development of wire rods and high-resistance reinforcing rebars with DualPhase structure. New hot upsetting steels with direct hardening. Forecasting methods of the mechanical and hardening characteristics through operating systems with neural networks. Customer Care QUALITY AND CUSTOMER ASSISTANCE The Riva Group management applies and maintains an appropriate “System for Managing Quality Assurance” in line with the qualitative requirements provided under Standard UNI EN ISO 9000/2000, API Q1 and the main guides for application in the automobile industry sector (AVSQ ’94, QS 9000, VDA 6, ISO TS 16949). To reach the objectives laid down, the management of the Riva Group has appointed a “Management Representative for Quality (methods and product)” with the task of managing, monitoring, evaluating and coordinating the “System for Man- 42 aging Corporate Quality Assurance”. The Corporate Management’s decision with regard to “Quality Policy” defines the directives and objectives to be complied with in the following points. Opposite (top and below): Electronic microscope Below: Study on a possible deep drawing of the steel sheet Directives and objectives 1. Pursue continuous improvement in production and qualitative results through systematic adjustment and prevention of any causes of non-conformity. 2. Guarantee the commitment and participation of the staff at all levels in implementing this present policy, making information and necessary knowledge available in the interests of the functioning and control of processes. 3. Identify and document, also through the operating practices of manufacture and control and technical and managerial procedures, all work processes and the sequence of operations necessary to ensure the efficient functioning of the processes and controls on the product. 4. Document the qualitative objectives indicated by the management and define exact control indicators, to be used in evaluating the quality of the results obtained, identifying the causes of any qualitative non-conformity and ensuring rapid and effective responses. 5. Guarantee that products conform to the technical and qualitative requirements specified by Customers. 6. Measure the degree of Customer satisfaction with the quality and service. 7. Develop new products and processes in accor- 43 dance with market expectations. 8. Carry out inspections that this Policy, the System for Managing Quality, and other associated management systems are complied with. 9. Select and classify suppliers of those products or services that may influence the final quality of the processes and products. Involve the suppliers, to the extent possible of their competence, in reaching corporate aims. Within the framework of the policy of continuous improvement of quality, a fundamental element in the philosophy of the Riva Group is Customer Service. This task refers mainly to monitoring the market, the development and support activity carried out by the technical assistants, and the technicalcommercial structures. The technical assistants and the commercial function offer every kind of support for everything concerning technical-quality and product supply requirements. The development of steel production is certainly linked to the strong and determined commitment of Research and Development, but above all to the continuous improvement of the production processes, an indispensable condition for genuine customer satisfaction. Environment and Safety THE COMMITMENT OF THE RIVA GROUP The Riva Group has always considered it a priority, together with the production and quality of its products, to be committed in the fields of ecology, the working environment and safety. On the ecology front, the policy followed over the last few years has been addressed mainly to the creation of plants that are in line with the best techniques available, implementing, at community level, whatever was being defined with regard to the integrated prevention of pollution (Integrated Prevention Pollution Control – IPPC/BAT). Consequently, a series of plants with improved performance with respect to the provisions of national regulations have been created. The Group intends to pursue this improvement policy by applying all provisions from the evolution of national standards on the definition of the best techniques available for the integrated prevention of pollution, taking into account whatever shall be defined in the community context. 44 Left (top): Cokeries Left (middle): Reverse osmosis plant for water purification Left (below): Cokery gas desulphurisation Right (top): Dedusting of the ore agglomeration plant Below: Water purification At its main production centres, the Riva Group has put into application the Environmental Management System ISO14001,that has already been introduced in the factories inNoviLigure and Taranto. As far as the subject of the working environment is concerned, the Group’s strong commitment is to be noted both with respect to the standards of the sector and also the implementation of reclamation programmes concerning asbestos and PCB dieletric contents in electrical transformers. In particular, the Group promotes intense training activities, inasmuch as statistical analysis of accidents caused above all by risk-taking behaviour, has shown the importance of sensitisation and training of personnel, also with respect to the high turnover of recent years. On the safety front, in addition to the planning and creation of plants that conform to the criteria of the regulations, the Group gives particular attention to the application of the integrated system of safety management, and all the activities this involves (inspections, safety meetings, operating practices, etc.). In order to ensure the correct management of environmental and safety issues, the Riva Group has the benefit of a specialised technical staff who provide support for the whole production area and are responsible for the environmental policies of the whole Group at national and international level. The attention the Riva Group gives to its relationships with outside Bodies has led to a series of agreements with local authorities on adapting its presence to the territory’s requirements without prejudicing production activities. 45 Foreword 5 Our Story YEARS OF STEEL: A CHAIN OF EVENTS MOULDED OVER TIME 6 Production Technologies BLAST FURNACE STEEL 16 ELECTRIC FURNACE STEEL 18 Products and Applications DAILY STEEL MODERN STEEL EVOLVING STEEL 20 Flat Rolled Products Quarto Heavy Plates Large-sized Welded and Coated Pipes 22 Editorial Co-ordinator Edizioni Olivares Roberta Busnelli Graphic Design theredbox communication design Texts Riva Group Pictures Riva Group and Pino Musi Print Poggi Tipolito srl Hot Rolled Black and Pickled Coils Cold Rolled Coils Hot-dipped Galvanised, Electrolytic-galvanised and Aluminised Coils Pre-painted Coils Electrolytic Tin Plate Electrolytic Tin-free Steel Hollow Sections Long Rolled Products Wire Rod Reinforcing Bar and Electrowelded Mesh Hot Rolled Bars Beams 30 Other Products Refractories Rolling Rolls 34 LOGISTICS 38 Research and Development IRON AND STEEL METALLURGY IS A PRECISE SCIENCE 40 Customer Care QUALITY AND CUSTOMER ASSISTANCE 42 Environment and Safety THE COMMITMENT OF THE RIVA GROUP 44 46