Research as strategic instrument, Ruukki participation in FIMECC research programs



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Research as strategic instrument, Ruukki participation in FIMECC research programs Arto Ranta-Eskola Director, Research Rautaruukki Oyj 1

2

Ruukki in brief Ruukki provides its customers with energy-efficient steel solutions for better living, working and moving. Ruukki operates in some 30 countries and employs around 11,800 people. 3

Ruukki s business areas Construction Net sales 757m* Engineering Net sales 257m Metals Net sales 1 783m 4 *) 2011

Our vision Ruukki is an innovative and acknowledged provider of energy-efficient steel solutions and helps to build a better living environment together with its customers. 5

Strategic research themes & program coverage Service Business User Experience FutIS: Future industrial services (service business mindset, design & efficient production) UXUS: User experience and usability in complex systems Global Networks I&N: Project business & decentralized innovation management GP4Variants: Series production network management Intelligent Solutions EFFIMA: Energy efficiency of machines ELEMET: Energy efficient metal processes MANU: Mfg technologies (to be launched in 2012) Breakthrough Materials LIGHT: Product structures and material properties DEMAPP: Wear, corrosion, high-low temperatures, friction ACTIFUN: New functional materials (program idea) 7

Strategic research themes & program coverage Ruukki participation Service Business User Experience FutIS: Future industrial services (service business mindset, design & efficient production) UXUS: User experience and usability in complex systems Global Networks I&N: Project business & decentralized innovation management GP4Variants: Series production network management Intelligent Solutions EFFIMA: Energy efficiency of machines ELEMET: Energy efficient metal processes MANU: Mfg technologies (to be launched in 2012) Breakthrough Materials LIGHT: Product structures and material properties DEMAPP: Wear, corrosion, high-low temperatures, friction ACTIFUN: New functional materials (program idea) 8

Program portfolio 21 15 2 Programs M 50 I&N EFFIMA FutIS 34 40 DEMAPP ELEMET LIGHT 35 UXUS 39 GP4 Program budgets include also not allocated resources 9 24.4.2012 9

Companies in FIMECC programs Companies in FIMECC programs, M 31,9 3,2 3,6 4,0 4,0 6,6 11,6 17,8 14,0 15,8 14,9 STX corp. Rautaruukki Oyj Metso corporation Cargotec Finland Oy Outokumpu corporation Outotec corporation Konecranes corporation Kone Oyj Wärtsilä Napa Oy Other companies 10 Five biggest cover almost 60 % of companies budget 24.4.2012 10

Research institutes in FIMECC programs Research institutes in FIMECC programs, M 11,0 Aalto 11,4 6,4 35,0 VTT TTY OY 14,3 17,9 LUT Others 11 Three biggest cover 67% of budget Five biggest cover 85% of budget 24.4.2012 11

The role of Technology Marketing Future Customers Partners Personnel Iron, Steel, Standard Slab prod. Technology solutions Special Components Systems Customer End user Universities Fundamental Ideas Needs Potential 12 12

Innovations and Network 10 work packages Product platform management strategies, processes and tools Platform solutions Design process and tools Production processes and methods Innovations in flexible networks Project business and services Novel innovations in solutions Design drive Competence management Towards safe and clean and green maritime technology Future Iron, Steel, Slab prod. Standard Technology solutions Special Components Systems I&N Customer End user Fundamental 13 13

Innovation front-end Combine information Customer/User needs Customer/User experience Product portfolio strategy and plans Analyse from different viewpoints Evaluate the importance of opportunities Market and competitor insight New technologies, scientific development Future trends, foresights Existing ideas Gather information Analyse opportunities Ideas Gate R -1 Customer and user value creation Refine ideas Generate ideas Total offering, e.g. services Earning logic Optional choices or concepts Workshops -internal,external 14

LIGHT 5 work packages Production and properties of breakthrough materials Novel manufacturing technologies Innovative design solutions Environmental footprint Low density materials Future Iron, Steel, Slab prod. Standard Technology solutions Special Components Fundamental Systems LIGHT Customer End user 15 15

Optimised weight and less fuel costs in moving with Raex steels Own weight and wear-resistance are important factors of hooklift containers in construction and waste management. With Raex wear-resistant steel, the material thickness of the re-designed container reduced from 5 mm to 2,5 mm. The new 39 m 3 container design with reduced weight,1 780 kg, has increased payload and decreased air-resistance; Fuel consumption of the vehicle is reduced by 4 liters/100km. It means fuel cost savings of over 60 000 euros during its lifetime.* *) lifetime 10 a, driving 100.000km/a, fuel cost 1.6 /liter 16 www.ruukki.com INTERNAL Firstname Lastname INTERNAL

ELEMET 6 work packages Radically improved material and energy efficiency in ferrous industry New opportunities in base metals industry Towards zero-waste plant Life cycle management and environmental footprint Innovative simulation tools for metallurgical processes Development of production technology for future ultra-clean steel Future Iron, Steel, Slab prod. Standard Technology solutions Special Components Systems Customer End user ELEMET Fundamental 17 17

WP1 : Radically improved material and energy efficiency in ferrous industry WP 1.1 Material Efficient Blast Furnace TASK 1 Increase of injection in to BF TASK 2 Secondary raw materials of briquettes TASK 3 Particle packing during BF charging and in the BF shaft OU-MHT Modeling of injection requirements of injectant reactions OU-MTG Coordinator Metallurgical limitations of injection Ruukki Coordinator Tuyere drillings ARUL-tests Briquettes Plant trials Flow modelling Hekkala Sintering and reduction of pellets OU-Ciru Secondary raw materials. Bonding mechanisms Aalto- Cleantech Secondary raw materials from pulp and paper industry Outotec Bonding mechanisms, Pellet sintering ÅA-HE Modeling of particle packing in BF UNSW/ SIMPAS (Prof. Yu) DEM modeling

DEMAPP 5 work packages Wear resistant materials and solutions New corrosion resistant materials and solutions Extreme service conditions Friction and energy Production technologies for demanding applications Future Iron, Steel, Slab prod. Standard Technology solutions Special Components Systems Customer End user DEMAPP 19 19

DEMAPP 20 20

UXUS 4 work packages UX as a strategic factor - frameworks Co-creating UX capabilities - competence Radical UX applications - experiments Past present future evaluation & plans Future Iron, Steel, Slab prod. Standard Technology solutions Special Components Systems Customer End user UXUS 21 21

User experience, operator cabins New generation operator cabins Concept development and virtual modelling R&D Centre in Kurikka Uusi ohjaamosukupolvi 22 22

FutIS Planned objectives A new service business mindset Integrated service development Efficient service operations Globalizing and localizing the service Future Iron, Steel, Slab prod. Standard Technology solutions Special Components Systems Customer FutIS End user 23 23

Finn-Power Yle Digita Stalatube Networking within FIMECC programs Example: Partners in FutIS Metso Rautaruukki Cembrit WP1: service Outokumpu business Suomen Lämpöpumpputekniikka Oy mindset T-Drill Cramo Vexve Aalto_IMI TUT_IM Aalto_HSE Vaasa_U Finnair Wärtsilä WP2: integrated service development Aalto_HCL SKF Outotec ÅA_PBI Konecranes WP3: efficient service operations VTT Aalto_LRG Aalto_SoberIT KONE 24 23.8.2010 24 Cargotec Marine

The role of Technology Marketing Future ActiFun Customers Partners Personnel Iron, Steel, Standard Slab prod. Technology solutions Special Components Systems I&N Customer End user Universities LIGHT FutIs UXUS ELEMET DEMAPP Fundamental Ideas Needs Potential 25 25

Väitän, että Fimeccin toiminta on parempaa kuin tiedetäänkään. I would claim that Fimecc's operations are even better than realised. 26