IRON AND STEEL INDUSTRY

Opotiki News, Volume II, Issue 215, 2 August 1939, Page 3

IRON AND STEEL INDUSTRY

GOVERNMENT'S INTENTIONS COAIAIENLLAIKWt IN 1942 ’PROPOSALS OUTLINED (Special to News.) \\ JiiiLLLNGTON, this day. The. Hun. D. -G. .Sullivan, Minister of Industries anil Commerce, who is also Alimster in Charge of the Iron and Steel Industry .Act-, made the following statement to the House cl Representatives this afternoon .1. desire to place before Hon. • Members a survey of the steps so far taken by the Government m J urtlicranei of the decision of last year to establish a State iron and steel industry in the Deininion. The preliminary work of surve.sing our natural resources of raw materials lias been proceeded with continuous!., on the thorough lines which 1 outlined to Hon. Members when the estimates of last year were before the House. Arising from the results of those investigations, arrangement's have now been finalised for construction work to commence almost immediately at Onekaka, and the works will commence production''some time during tiie year 1912.

Tlici task of designing the plant and supervising the construction lias been placed in the capable hands of H. A. Urassert and Co. Ltd., consulting engineers of London. This firm will also be charged with the general supervision of the plant for the first two years after production commences.' In the thorough examination into the economics of the proposed industry, selling prices for the finished products have been taken on, the basis of the lowest to-day’s prices in Australia and f,-, v lOngland, whilst operating cost.have been levied with rates of pax appropriate to to-day’s standard ii. New Zealand, based on a 4.0-lunu week, although parts of the plant will of course have to be operated continuously. !rcn Ore Reserves The intensive development work which the Government has carried cm on the oreticlds has proved unfortunately that previous estimates of quantity, which were based on surface indications only, were extremely optimistic and over-stated. It is pleasing, however to advise Hon. -Members thatalthough our reserves o! iron are considerably less than was at first- believed.. the work done to date has assured us of sufficient raw materials to main tain our proposed annual production foe a period of more than 50 years, whilst further development work, which will ht' carried on as a regular It atmo of the undertaking, may substantially extend chat period. Coal A comprehensive survey of the coal position is at present in hand. Kc suits of this survey to dteite are advanced enough to assure the Government of sufficient coal of suitable quality being available to the steel works without in any way endangering the supplies available for other general purposes. Production Programme The initial production programme envisaged may he briefly stated as lollows: Tons. Millets and Slabs , '2,000 Kails 11,000 Sections, Flats and Hound Ihirs ... . 50.000 Wire 15,000 Sheets 20,000 104,000 In addition, from 3,000 to 5.000 tons of pig iron yyill be produced according to market requirements. This production programme comprises approximately 00 pci' cent, ol the present day market requirements of New Zealand, and is confined to qualities and sizes that arc in greatest demand. The cost- of the necessary plant will he- within-the- financial authority provided for in the Iron and Steel Act of last year. The design and: lay-out of the plant will he [complete, composite and integrated, incorporating the most modern and best features of existing practice. The leading plant units will lie designed and constructed so as to permit of the production of any reasonable- variation ill the initial mamilactui'ing programme. The programme ensures well-balanced production with all the advantages which are entailedin completing in one establishment the manufacture of highly-finished products direct from raw materials at minimum cost-. Particular attention has been given to the desirability of

reducing "the cost of internal transport in the plant, and full provision will be made for the mechanical handling of all materials, semi-tinished and finished products. v • The Manufacture of Coke The coke oven, installation will produce coke fuel from a blend of suitable Now'Zealand coal.s, and it will be complete: t With 'a< by-product plant for the recovery** of by-products from the coke oven gas." . , The Manufacture of Iren Tiie blast furnace will produce both basis and. foundry pig iron. The throughput will exceed 3.400 tons per week and the furnace will operate con-

tinuously. The blast furnace installation will include sintering plant, hot blast stoves, blowing and gas-cleaning plants. ‘ ' Steal-Making Plant This plant will consist of Bessemer converters and . opemhony.th --dktrnaees. Basic pig-iron .wil-l he used in a molten state, being stored in a hot metal mixer of 750 tons capacity after being tapped from the blast furnace. The Bessemer steel which will be produced will have valuable properties relating to-mechanical strength, ductability. and good machining qualities. The openhearth steel will be made to standard specifications. All steed during manufacture will be subject to rigid supervision !Vnd inspection, tbus ensuring

products of the highest grade. Roiling Mills No. 1 Mill.—The largest mill will io!l steel slabs, rails, the heavier sections, round bars up to S” diameter, and sheet' billets which- will be used Intel in the production of steel sheets. This mill will bo operated for 10 shifts per week for the initial rolling programme, having a total output of more than 100,000 tons per annum. Tt will have a reserve capacity for additional production without calling for. further capital expenditure. No. 2 and No. 3 -Mills.—These mills will produce light sections and merchant bars also wire.-rod. for the manufacture of wire . Together they will

be operated for lo shifts per week and the'output will exceed 00,000. tons pe. annum. The de.sign and construction of the mills will provide for quick roll changing so that lost time will be reduced'to a minimum. •• 'll Cftfiei and Wire Mills These, will be operated fok 15 shifts per week. .All Abe latest tccliuieftj improvements will be embodied in their design and' construction. lion. Members will appreciate something oi \V hat jttji r rolling programme involves ii 1. point out that the building which will house tlie rolling mills will hi upwards of J-mile* long. Tin* genera, plant" .-will include a complete railway system,;./stock yards, power generation

plant, gas-holders with internal gas distribution system, lime-burnmg kilns, foundry and repair workshops. Fuel Economy! - The design and construction of the plant will satisfy the most exacting of critics in the provision which will be made for the utilisation of the heat and ga.s generated. Actually no fuel will be used in the production of iron, semi-finished and' finished steel products other than the coal used for the production of coke. The gas produced in the coke ovens and in the blast furnace will be used for beating in all departments throughout the plant-, and in addition, there will be gas available to generate a portion of the' power which, is icquiied for operating the various plant units. By-Products The commencement- of production at the steel plant will make available certain by-products which will be of considerable! value to the community; Basic Slag One of the most valuable by-prod-ucts will he the basic slag produced in the Bessemer furnaces. This slag will be of the highest quality for fertilising purposes and it will be ground to i. degree of fineness which will make it very acceptable to farmers who require this type of fertilisers. More than 16.000 tons of the highest quality will be made available yearly with an additional -1,000 tons of a lower quality. By-Products From the Coke Ovens ■Connected with the coke ovens a complete by-product plant will be installed' which will recover valuable materials from the coke oven gas Those will include refined tar. Iknzo!.' and sulphate of ammonia. Benzol will -he refined to a high degree of purity so as to produce a highly efficient motor spirit. Sulphate of ammonia will prove to be of considerable value to orchardists and market-gardeners as its nitrogen content is a valuable plant food. In many countries the slag from the blast furnace is crushed and -the refined tar is mixed .with it so as to toi m an aggregate of high quality for constructing and! repairing reads. These by-product- materials, it is anticipated, will be treated in this way at the works. Marketing. Every endeavour will be made to conclude suitable marketing arrangements through the existing merchant organisations which are to-day bandling iron and steel products in various parts of the Dominion. Employment The influence of such an expansion of productive employment cannot be o\er-emphasised. During the constructional stage of the steel plant, a considerable amount- of employment will be created, and many hundreds ef men representative of various trades will participate in the work of site preparation, foundations, assembly of plant, end erection of buildings etc. Just so much of the actual construction and fabrication as is economically possible will be carried out in the Dominion. \Y hen the plant comes into full operation approximately 1500 men will he directly and permanently employed. In addition the indirect employment will be considerable. In the coal mines, for instance, the supply of coal amounting to nearly 200,000 tons per annum, not subject, to seasonal variations, will create favourable conditions for continuous production with stable employment for the miners. It means that approximately 2,000 workers will be directly engaged in production either in the steel plant or in supplying the necessary raw materials

of domestic origin. This number of men will in turn provide further indirt et employment to a very considerable degree.