Upgrade Positions Ispat Inland for a Generation EAST CHICAGO, Ind., Oct. 30 /PRNewswire-FirstCall/ -- Ispat Inland Inc.'s big blast furnace has come roaring back -- virtually a new ironmaker after a thorough reline and upgrade. "We have made a large investment in the hot end of the business, and the result appears to be all that the company hoped for," said Louis L. Schorsch, president and chief executive officer of Ispat Inland. "Our company had an ambitious plan to take No. 7 blast furnace down for 80 days and substantially upgrade it for $100 million during that short period," said Schorsch, who became CEO on Oct. 1. "The reline team delivered -- on time and within budget. The furnace is climbing its learning curve on schedule and is meeting all expectations for quality and productivity." The upgrade represents a major commitment to U.S. manufacturers of vehicles, appliances and other products that require higher grades of steel for demanding end uses. Ispat Inland's customer base includes almost every automaker in the United States, as well as leading manufacturers of appliances, office furniture and electrical motors. No. 7 blast furnace is the largest ironmaker in North America, providing about two-thirds of the iron for Ispat Inland's steelmaking and finishing operations in East Chicago, Ind., and for joint ventures in New Carlisle, Ind. "The basic technology of the blast furnace dates back to the 14th century," said Madhu G. Ranade, vice president of manufacturing at Ispat Inland's Indiana Harbor Works. "Raw materials go in the top; oxygen and superheated air are blown in near the bottom; chemical reactions occur at high temperature inside; and molten iron and slag are tapped from the hearth." However, Ranade said ironmaking in general and the men and women of No. 7 blast furnace in particular have come a long way. "From a beginning production rate of 7,000 tons a day when the furnace was built in 1980, it had improved to more than 10,000 tons a day before being scaled back toward the end of its 'campaign' in preparation for the reline," he said. "Now we take another step forward." Ranade said meticulous planning and vigorous implementation, by both Ispat Inland and the top talent all around the world, enabled the company to do more at less cost and quicker than any than any previous reline of similar scope. However, he said the result is a furnace that compares favorably with any in the world in terms of quality, reliability, productivity and energy consumption. "We are positioned to supply our customers for the next 20 years," Ranade said. The principal goal of the reline was the replacement of the hearth bricks that protect the furnace's steel shell from internal temperatures as high as 3,000 degrees Fahrenheit or more. But Ispat Inland also made numerous other major improvements, including the water cooling system for the furnace, the gas-cleaning system and the charging system for raw materials. The company also installed a new expert operator guidance system in early 2003, gaining both improved performance before the reline and a database for the computer model it is using to operate the upgraded furnace. The upgrade will enable Ispat Inland to use more efficiently the productive capacity of the Harbor Works' two steelmaking shops, hot strip mill and cold-rolling and coating lines -- as well as that of its joint ventures with Nippon Steel Corp., I/N Tek and I/N Kote, in New Carlisle, Ind. Ispat Inland Inc. is a subsidiary of Ispat International N.V., one of the top 10 steel companies in the world, with integrated steelmaking facilities in six countries and annual shipments in 2002 in excess of 15 million tons. Ispat Inland manufactures a broad range of semifinished and finished flat and bar steel products and is one of the world's lowest-cost steel producers. In addition to Ispat Inland in East Chicago, Ind., USA, Ispat International has major steelmaking facilities in Canada, Mexico, Trinidad, France and Germany. Ispat International is a member of The LNM Group, the world's second-largest and most global steel group, which also operates in Algeria, Czech Republic, Indonesia, Kazakhstan, Romania and South Africa. DATASOURCE: Ispat Inland Inc. CONTACT: David C. Allen of Ispat Inland Inc., +1-219-399-5430

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