18 S T A I N L E S S S T E E L W O R L D M A Y 2 0 0 9 w w w. s t a i n l e s s - s t e e l - w o r l d . n e t

With an extensive range of products for the energy sector, Sumitomo Metals has long been at theforefront of the seamless pipe industry. The earliest beginnings of the company lie in the 19th century,when the Sumitomo Metals Copper Plant was established in 1897. In 1912 the copper plant wasaugmented with a steel tube factory: the first private company in Japan to manufacture seamless steelpipes. In 1919 the foundations were laid for the Amagasaki plant close to Osaka, which today is amodern, spacious and well laid out facility as Stainless Steel World saw during a recent visit.

By David Sear

To give an impression of scale, mytrip around Sumitomo Metals’Amagasaki facility lasted well

over an hour and required several taxijourneys! With hindsight that’s hardlysurprising, because Amagasaki is aworld-scale site and Sumitomo Metals’managers told me it is the world's firsttruly straight-line operation,encompassing steelmaking, continuouscasting, mill rolling, heat treatmentand final inspection. The site evenboasts its own extensive companyrailway for the easy movement ofbillets, bars and whatever else is

required during tube and pipeproduction.The tour definitely included some realhighlights. Take the brand new mill forboiler tubes, for example,commissioned to meet strong growthin demand. Says Section Manager MrAnada: “as of October 2007, output ofsuper high-end boiler tubes was raisedfrom 12,000 to 18,000 tons per yearthanks to this new mill. We plan toleverage this additional capacity toaccelerate our distinctiveness in theenergy sector.”Export Manager Mr Kouda adds:

“Sumitomo Metals has captured fully80% of the worldwide market forhigh-end boiler tubes, which are usedin ultra super critical (USC) boilers atcoal-fired power plants. Demand forsuch tubes has risen sharply in recentyears thanks to a surge in power plantconstruction, mainly in China butalso in Europe. In a drive to increaseefficiency, cut fuel consumption andreduce CO2 emissions, more and moreof these plants are adopting USCtechnology. This is raising demand forthe high performance seamless tubesfrom Sumitomo Metals.”

Sumitomo Metals aims toaccelerate distinctiveness inthe energy sector

w w w. s t a i n l e s s - s t e e l - w o r l d . n e t S T A I N L E S S S T E E L W O R L D M A Y 2 0 0 9 19

Nuclear tubesAnother memorable moment duringthe tour came when standing in thecontrol room of an extrusion plant.Here, mother tubes are made forseamless cold working. The hydraulicforces are simply tremendous, and thecontrol room floor literally shakes asthe billets of hot metal are forcedthrough a die and a mandrel. Powerwithout precision is next to useless, ofcourse, and so further down the line astraightening machine ensures that theresultant tubes and pipes aredimensionally perfect. Finally, in thespick and span finishing area,Sumitomo Metals staff explain howtubes can be U-bent to exactspecifications before being inspectedand packaged. The only part of thefinishing shop that was off-limits wasthe area for nuclear power plant tubes.Here, Sumitomo Metals’ standards forcleanliness would do a hospital proud.Whilst looking over this particularsection, Mr Anada points out thatSumitomo Metals recently won ordersfor steam generator tubes for a new

type of pressurized-water reactor unitsin China and the US. This nicely buildson Sumitomo Metals’ enviable trackrecord in supplying heat exchangerand steam generator tubes for moretraditional pressurized water reactorsand stick elbows for boiling waterreactors. Comments Mr Anada: “risingdemand for power and the need toreduce CO2 emissions have causedmany nations to consider building newnuclear power stations, of whichpressurized-water reactors comprise70%. Advanced nuclear reactors havelarger steam generators for bettereconomy and safety, and these requiresteam generator tubes with tighterinner radii than previous models.”To accommodate these needs,Sumitomo Metals has invested ¥ 2.3billion in Amagasaki to modify itssteam generator tube manufacturingequipment. Construction workfinished in October 2008, boostingproduction capacity for this nichemarket by 30%.

Sophisticated alloysOne of Sumitomo Metals’ strongselling points is the sophisticated alloysdeveloped through its strong andactive R&D department. Amongstother innovations, this department wasresponsible for grades such as 347AP,DP28W and DP3W.347AP is an austenitic stainless steelwith an optimum amount of carbon,nitrogen and niobium. It is widely usedfor desulfurizing plants in petroleumrefineries. The carbon content has beenlowered to prevent the grain boundaryprecipitation of chromiumcarbonitride, which causesintergranular stress corrosion cracking -a serious problem in heating furnacesand reactors.

Grade DP28W, a super duplex stainlesssteel specially developed for use inurea plants, gets its excellentcorrosion resistance from the highchromium content plus the additionof tungsten.DP28W is already being used in twoplant projects in Trinidad andVenezuela, in a reactor, strippers andcondensers, and as parts of stripperequipment in Indonesia, China,Pakistan and Japan.Finally, DP3W super duplex stainlesssteel contains 2% tungsten to improveweldability of the alloy. DP3W hasbeen widely used for application ofsub-sea umbilical.The advantage of these alloys,specially developed in SumitomoMetals' own R&D facilities, is thatthey offer superior corrosionresistance for specific applications,explains Technical Manager MrHiguchi. “In our domestic market, forexample, we have already sold wellover 2000 tons of 347AP grade tubing,making it a very familiar and trustedproduct amongst Japanese end users.That is the message we hope to spreadto potential customers world-wide – toinform them that 347AP has anextensive track record and we are atrusted partner for a great manyclients. Our credibility as a long-termsupplier is something we view as ofthe utmost importance.”

Green credentialsEnvironmental awareness has alwaysbeen a key concern for SumitomoMetals. Go back about a century andyou’ll find that Director General TeigoIba was a real “green pioneer”, takingdecisive action to replant themountains in the Besshi area inShikoku Island following the

An aerial view of the Amagasaki plant near to Osaka in Japan.

COVER

STORY

Inside the Amagasaki plant.

20 S T A I N L E S S S T E E L W O R L D M A Y 2 0 0 9 w w w. s t a i n l e s s - s t e e l - w o r l d . n e t

COVER

STORY

development of a copper mine.Sumitomo Metals also tackled theproblem of air pollution through animprovement in copper refiningtechnology, and the lush mountainsand fields were restored.It is the mission of the currentmanagement to build on thisdedication. Fully 80% of the R&Dexpenses are allocated toenvironment-related research. As aresult of these efforts, SumitomoMetals now has one of the world'slowest levels of CO2 emissions per tonof crude steel production and blastfurnaces with the longest life in theworld. In 2008 Sumitomo Metalsreceived the highest rating of"companies with particularlyimpressive environmental programs"in the environmental rating loansystem of the Development Bank ofJapan, the only steelmaker ever toreceive that rating. Sumitomo Metals'

products are calculated to have theeffect of reducing CO2 emissions by120 million tons a year - almost fivetimes as much as the CO2 that thecompany itself generates in makingthose products."We are also supporting green effortsin power plant technology," MrHiguchi says. "Engineers are lookingto raise the temperature at the turbineinlet from 600 to 700°C, which willboost efficiency and reduce CO2

emissions. However, that poses extrachallenges for the tube suppliers, suchas how to maintain the creepstrength.” Mr Higuchi adds thatSumitomo Metals is already doingextensive research in this area.Similarly, he notes that astemperatures and pressures are raisedin chemical plants, there is anattendant need for tubes with superiorcorrosion resistance. Mr Higuchi :“Again, we are looking at new alloy

compositions to achieve this, as wellas to extend the period between shut-downs to maximize production. Asusers switch more and more fromstandard grades to higher alloys withbetter corrosion resistance, SumitomoMetals is on hand to meet theirrequirement with their specialisedproducts.”The oil refining industry is also facingits own challenges and is turning toSumitomo Metals for support. As MrHiguchi explains, as existing wellsreach maturity the quality of the oil ischanging, with higher levels ofcontamination such as chlorides andhydrogen sulphide. In turn, this leadsto greater corrosion problems, givinggood opportunities for SumitomoMetals’ corrosion-resistant products.Another marketing opportunity is theincrease in demand for natural gas forpower generation. Natural gas releasesless CO2 than petroleum when it is

Sumitomo’s heat exchange tubes are used in various applications such as in atomic power plants, but also in fossil, boiler, and chemical plants. Alot of Sumitomo’s experience in steam generator tubes exists in corrosion resistant duplex stainless steels pure nickel and nickel-based alloys.

w w w. s t a i n l e s s - s t e e l - w o r l d . n e t S T A I N L E S S S T E E L W O R L D M A Y 2 0 0 9 21

used for power generation, therebyhelping prevent global warming. Thetechnical challenge, however, is thatat many gas-field drilling sites theenvironment is much more corrosivethan for crude oil. These factors havecreated a need for special pipes. SaysMr Higuchi: “Sumitomo Metals is theonly supplier of pipe that offers theextra strength and high resistance tothe effects of the hydrogen sulphidepresent in such environments. Thisfurther underpins our credentials asthe world leader in technical;development, product quality andproduct range. We have anunparalleled presence in the globalhigh-end seamless pipe market.”

Prevailing spiritDespite the current economicchallenges, Sumitomo Metals is firmlycommitted to further developing itsbusiness. "We have been investing toraise our capacity," Mr Kouda says."For example, we are expanding inhigh-end stainless steel for thepetrochemical industry." He furtherexplains that the petrochemicalmarket essentially comprises 80%standard grades and 20% criticalgrades; it is this latter section whereSumitomo Metal's strength lies. "Wecan offer real benefits to clients whoface challenging corrosion issues. Wehave the right technology and provenproducts. Even though all our tubesand pipes are made to order, we canstill provide standard lead times ofjust three to four months. A recenttarget has been to further improve ouron-time delivery record, which nowstands at 90%," comments Mr Kouda.Sumitomo Metals is taking steps toseize overseas growth opportunities,aiming for growth by choosing

Facts and Contacts

NNaammee:: Sumitomo MetalIndustries, Ltd.

FFoouunnddeedd:: 1897 (Incorporated 1949)

BBuussiinneesssseess:: Pipe & TubeSteel Sheet, Plate,Titanium& Structural SteelRailway, Automotive,Machinery Parts & OtherSteel

reliable partners and poolingtechnological capabilities and localknow-how. For example, a new jointventure in Brazil, together with theFrench company Vallourec, willenable supply to customers in NorthAmerica, West Africa and the MiddleEast. It is an integrated steel plant inMinas Gerais State to for productionof OCTG (Oil Country TubularGoods), seamless pipe for drilling inoil and gas development projects.Sumitomo Metals and Vallourec haveagreed to manufacture the optimumvolume of 600,000 tons of seamlesspipe and sell 300,000 tons each. Thefurnace, scheduled for completion in2010, will use eucalyptus-woodcharcoal purchased on a contract withlocal plantation owners. Theproduction will be effectively CO2-neutral, as the total amount of CO2

that the trees absorb in their lifetimeis equivalent to the amount of CO2

emitted by the furnace.The economic downturn of course willinevitably have an impact on allsectors. In his 2009 New Year'smessage, Mr Hiroshi Tomono,Representative Director and Presidentof Sumitomo Metals, confirms that heanticipates a difficult year all round.Nevertheless, he remains optimistic,noting that the current challengingperiod can be taken as a chance toengage in issues that busier times leftno opportunity for, such as researchand skill development. The key issuesare environmental awareness,communication, and flexibility.Sumitomo Metals is still aiming forbalance between quality and scale."Our aim is to earn the trust of allstakeholders through theenhancement of our intangibleassets," Mr Tomono says. "Sumitomo

Mr Matsumoto, Technical Manager, Houston office.email: s.matsumoto@sumitomometal-usa.com

Mr Higuchi, Technical Manager, Amagasaki office.email: higuchi-jun@sumitomometals.co.jp

Mr Matsuo, Technical Manager, London office. email:h-matsuo@ma.kew.net

Heat treatment furnace

The demand for USC boiler plants is increasing rapidly. Our superhigh-end tubes (Super 304H, HR3C, TP347HFG) are used in superheaters where the highest temperature and pressure are borne in suchboilers.

Metals shall place prime importanceon integrity and sound management.A man of noble character esteemswealth, and is scrupulous in seekingthe way to acquire it."

COVER S

TORY