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OPERATING MANAGEMENT

STEEL PLANT


Objectives:
TOA was hired by the Nova Scotia Government in Canada as the interim Operating Manager to improve the operations of the Sydney Steel plant with the single objective to make it marketable to prospective international companies.


Methodology:
TOA, with a team of 25 – 30 professionals on site, working with employee representatives, developed a strategic direction designed to capitalize on the company’s strengths; production and distribution of high quality regular and head hardened rail, favourable deep water port location near the mouth of the St. Lawrence Seaway and excess capacity to produce niche semi-finished steel products utilizing Sysco’s existing plant processing equipment. See Figure #1.

                                                                         Figure #1. Process Flow

 

Table 1. Plant Capability
EQUIPMENT DESIGN CAPACITY

Electric Arc Furnace

550,000 MT/year, 91 MT/hour

Continuous Caster, 3 strand

91 MT/hour

Walking Beam Reheat Furnace

150 MT/hour

Breakdown Mills #1, #2, Universal

>450,000 each MT/Year

Rail Finishing Mill

235,000 MT/Year, 150 ft./min. 15 turns

Rail Head Hardening Plant 

33,500 MT/Year, 5ft./min

STRATEGIC DIRECTION:
RailsTo become the strategic domestic supplier:

  • This will provide for a relatively high margin base load
  • Use location to supply domestic market fast
  • Use limited competition to secure base load

Non Rail: To become a (specialized) feed stock supplier:

  • This means more repetitive, predictable orders with lower prices
  • This role may compensate for less than optimum locations for non rail product market

                                                                         Figure #2. Product Shipments

                                                                         Figure #3. Financial Results