Siemens VAI Grows the Metals and Mining Business in India by Extending Solution and Service Portfolio

(PresseBox) ( München, )
The building of new manufacturing capacities in India and the introduction of advanced processes for producing high grade iron and steel products in India will drive the business of Siemens VAI, a 100% subsidiary of Siemens AG; Germany. "We expect a double digit growth over the market average of 7 to 9 per cent thanks to new projects and service solutions", Ashoke Pan said to media at the Press Club of Kolkata on Thursday. Pan, responsible for the metals technologies business of Siemens VAI in India, implemented an initiative in Kolkata to extend the business portfolio with modernization, upgrades, special equipment and services to support growth. "We want to expand our capacities in India and to develop and train our employees to make a strong team for securing and sustaining our position in this market segment", Pan said.

The growing demand for high quality steel has recorded the Siemens VAI's order intake for projects and services in India up to over 600 Mio Euro until now in current fiscal year, ending September 30. Siemens VAI recently commissioned RH degasser at Bhilai Steel Plant, which under the Steel Authority of India Limited (SAIL). This second RH unit is increasing the production of rail steel by another 0.8 million tons per year to cater to the increasing demands of Indian Railways. At Bokaro Siemens VAI revamped the hot strip mill finishing stands, which increased the mill uptime substantially, resulted in consistent production of more than 740 coils or 14500 tons each day. "Siemens VAI is currently executing more than 10 mega projects to increase Indian steel production and product processing. Also, we are engaged in upgrading and modernization in many Indian steel companies to improve the productivity and product quality to become competitive globally, Pan said.

Siemens VAI became worldwide leading solution and service supplier for metals and mining technologies due to the integration of the electrical and automation business of Siemens with the mechanical and process solutions of the former Austrian company Voest Alpine Industrieanlagenbau (VAI). "We are utilizing the electrics and automation competences of Siemens, who are no.1 in the market which gives us a leading edge over our competitors", Pan said.

New developments in iron and steel making allow lower-cost raw materials to be utilized; ensure the production of top quality products and minimize emissions and reduce energy consumption. "The proven technology of Siemens VAI and the presence of Siemens and Siemens VAI in India is helping us to penetrate the market", Pan said. Siemens VAI Metals Technologies is part of the German Industry Solutions Division of Siemens, one of the world's leading solution and service providers for industrial and infrastructure facilities. "We have the skills in our staff, process and project know-how, the experience of over 100 years in iron and steelmaking, rolling and processing and now the opportunities of being part of Siemens network", Pan stated. "This all together enables us to develop innovative solutions to drive the market for the benefit of our customers".

Siemens VAI employs around 400 engineers and staff in Kolkata and Mumbai to support customers locally. The mining segment manufactures its inverter/control components for shovels and trucks for the world market at its factory in Nasik. Although Siemens has been supplying electrical drive systems and automation equipment for bucket wheel excavators and conveyors for more than two decades in India, the production of shovel and truck electrics for the world's third largest producer of coal, marks an consequent step for the Siemens'strategy in mining technologies. In April 2008 Siemens VAI acquired Morgan Construction, Worcester, Massachusetts, a leading US supplier of long products with 500 wire, steel and billet rolling mills all over the world, to expand its position in this market segment. "The engineering and servicing capacities as well as the production facilities of Morgan in Mumbai will not only enable us to expand our long product business," said Pan, "but will also open up new ways of combining electrical and mechanical solutions to create unique plant components, to manufacture them ourselves and to supply them from a single source". The integration of this company will enable Siemens to set the market standards for future technological development., Pan feels there is great potential for growth in India by collaborating with local partners and, above all, building up expertise levels among the approximately 9,000 Siemens VAI employees worldwide. Mega projects are still being executed jointly by us and by the nine technological competence centers of Siemens VAI in Austria, Great Britain, France, Italy, Spain, Germany and the US. However, India will itself be capable of acquiring and handling orders on its own in medium size projects. Another focus, Pan said, would be on expanding and building up the spare parts and after-sales services business in India from the company's own workshops as well as integrating clearly defined electrical and mechanical solution packages. The basis for this, he continued, would be the systematic standardization of products and processes in order to increase plant operating safety and considerably reduce downtimes.

"Our customers expect our plants to provide the highest possible degree of flexibility and productivity while reducing energy and raw material consumption and pollutant emissions", Pan said." We must now develop the means to meet all these requirements simultaneously". Today plant investment decisions tend to depend less on initial construction costs and more and more on ongoing operations costs. This presents numerous business opportunities and our innovations provide the rights answers to global challenges such as climate change and resources consumption and environment protection.

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