November 2010 SAIL RDCIS signs agreement with CBMM to develop high grade API steel

Steel Authority of India Limited took a bold stride towards its goal of increasing the share of special steel products in its product basket by signing a collaborative agreement with Companhia Brasileira de Metalurgia e Mineracao of Brazil Technology Suisse SA based at Geneva in Switzerland.

The agreement, signed between Mr AS Mathur ED in charge of SAIL’s Research & Development Centre for Iron & Steel and Mr Marcos Stuart director technology of CBMM Technology Suisse SA, envisages development of high strength steel of API X-80 grade for line pipe application by SAIL at its steel plants in Bhilai and Bokaro.

As per the agreement, which carries a tenure of two years, SAIL plans to develop high strength steel of API X-80 specification for line pipe and structural applications. The international demand for API grades of steel is projected at 8 million tonne per annum, generating a large untapped market for Indian steel producers.

Production of API X-80 from SAIL plants is expected to commence within one year. With CBMM as its ally in this project, SAIL will be able to substantially reduce the development time of its new product, by roping in CBMM’s long term expertise in the sector. CBMM is a major producer of niobium in the world and supports research collaborations with leading R&D organizations and institutes to promote usage of niobium for development of new products.

Popular for its application in transportation of oil & natural gas, API grades of line pipe steel have a huge market in India with annual demand being estimated to be 1 million tonnes in the coming years. Demand for API X-80 grade steel with superior high strength qualities, is likely to increase sharply.

The agreement is a step towards realization of SAIL Chairman Mr C.S. Verma’s vision of enhancing SAIL’s market share in the special steels segment. RDCIS has been working towards this goal in consonance with the five integrated steel plants of SAIL. Earlier, too, RDCIS had initiated and successfully completed collaborative programs with CBMM for development of API X-60 & 70 grade steel plates and HR coils at Bhilai and Bokaro Steel Plants, respectively.