IRON AND STEEL WORKS

Evening Post, Volume CXXVIII, Issue 29, 3 August 1939, Page 14

IRON AND STEEL WORKS

STATE INDUSTRY

VARIETY OF PRODUCTS

* [WORK FOR 1500 MEN

THE GOVERNMENT'S PROJECT

In the course of his reading of the ■ Budget on Tuesday night, the Prime Minister outlined briefly the Government's intentions in regard to the establishment of iron and steel works at Onekaka. The Hon. D. G. Sullivan, Minister of Industries and Commerce, who is also Minister in charge of the Iron and Steel Industry Act, made a fuller statement on the subject in the House of Representatives yesterday, giving many particulars of the form the industry is to take. '"Ebo preliminary work of surveying our natural resources of raw materials has been proceeded with continuously on the thorough lines which I outlined to hon. members when the Estimates of last year were before the Hotise," said the Minister. ""Arising from the results of those investigations, arrangements have now been finalised for construction work to commence almost immediately at Onekaka, and the works will commence production some time during the year 1942. "The task of designing the plant and supervising the construction has been placed in the capable hands of H. A. Bfassert 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 today's prices in Australia and/or England, whilst operating costs have been levied with rates of pay appropriate to today's standard in New Zealand, based on a 40-hour week although parts of the plant will of course, have to be operated continuously. ORE RESERVES AND COAL. "The intensive, development work which the Government has carried out on the ore fields 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 members that although our reserves of iron are considerably less than was at first believed, the work done to date has assured us of sufficient raw materials to maintain our proposed annual production for a period of more than 50 years, whilst further development work, which will be carried on as a regular feature of the undertaking, may substantially extend that period. "A comprehensive survey of the coal position is at present in hand. Results of this survey to date 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 is stated as follows — Tons. Billets and slabs ..,/. 2,000 Rails 11,000 Sections, flats, and round bars 50,000 Wire 15.000 S^etS 26,000 104,000 In addition, from 3000 to 5000 tons of pig iron will be produced according to market requirements. This production programme comprises approximately 60 per cent, of the present-day market requirements of New Zealand, and is confined to qualities and sizes that are in greatest demand. The cost of the necessary plant will be within the financial authority provided for in the Iron and Steel Act of las* year. The design and lay-out of the plant will be complete, composite, and integrated, incorporating the most modern and best features of existing practice. The leading plant units .will be designed and constructed so as to permit of the ' production of any reasonable variation in the initial manufacturing programme. The programme ensures well-balanced production with all the advantages which are entailed in completing in one establishment the manufacture of highlyfinished 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-finished and finished products. The coke oven installation will produce coke fuel from a blend of suitable New Zealand coals, and it will be complete with a by-product plant for the recovery of by-products from the coke oven gas. MANUFACTURE OF IRON AND STEEL. The blast furnace will produce both basic and foundry pig iron. The through-put will exceed 3400 tons per week, and the furnace will operate continuously. The blast furnace installation will include sintering plant, hot blast stoves, blowing and gascleaning plants. The steel-making plant will consist of Bessemec converters and openhearth furnaces. Basic pig iron will be 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 open-hearth steel will be made to standard specifications. All steel during manufacture will be subject to rigid supervision and inspection, thus ensuring products of the highest grade. ROLLING MILLS. The largest mill, No. 1, will roll steel slabs, rails, the heavier sections, round bars up to Sin diameter, and sheet billets which will be used later in the production of steel sheets. This mill will be operated for ten shifts per week for the initial rolling programme, having a total output of more than 100,000 tons per annum. It will have a reserve capacity for additional production without calling for further capital expenditure. No. 2 and 3 mills will produce light sections and merchant bars, also wire rod for the manufacture of wire. Together, they will be operated for fifteen shifts per week, and the output will exceed 60,000 tons per annum. The design and construction of the mills will provide for quick roll changing, so that lost time will be reduced to a minimum. Sheet and wire mills will be operated for'fifteen shifts per week. All the latest technical improvements will be embodied in their design and construction. The building which will house the rolling mills will be over a quar-

ter of a mile long. The general plant will include a complete railway sysi tern, stock yards, power generation plant, gas-holders with internal gas distribution system, lime-burning 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 gas 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 cf coke. The gas produced in the coke ovens and in the blast furnace will be used for heating in all departments throughout the plant, and in addition there will be gas available to generate a portion of the power which is required 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.

One of the most valuable of products will be the basic slag produced lin the Bessemer furnaces. ' This slag I will be of the highest quality for fertilising purposes, and it will be ground to a degree of fineness which will make it very acceptable to farmers who require this type of fertiliser. More than 16,000 tons of the highest quality will be made available yearly, with an additional 4000 tons of a. lower quality. Connected with the coke ovens a complete by-product plant will be installed, which will recover valuable materials from the coke oven gas. These will include refined tar, benzol, and sulphate of ammonia. Benzol will be 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 form an aggregate of high quality for constructing and repairing roads. These by-product materials, it is anticipated, will be treated in this way at the works. MARKETING AND EMPLOYMENT. Every endeavour will be made to conclude suitable marketing arrangements through the existing merchant organisations which are today handling iron and steel products in varfous parts of the Dominion. The influence of such an expansion of productive employment cannot be over-emphasised. During the constructional stage of the steel plant, a considerable amount of employment will be created, and many hundreds of men representative of various trades will participate in the work of site preparation, foundations, assembly of plant, and erection of buildings, etc. Just so much of the actual construc(tion and fabrication as is economically possible will be carried out in the Dominion. When the plant comes into full operation approximately 1500 men will be 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 2000 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 indirect employment to a very considerable degree. - _^