At present, the global steel industry research and development direction: market demand and environmental protection

On the one hand, it is the material with the highest recycling rate in the world. On the other hand, in the traditional high-energy-consuming industries, the global steel mills are currently facing new challenges brought about by the era of “low-carbon economy”.

In Europe, carbon dioxide emissions from the steel industry have decreased by 20% since 1990. The world’s largest steel company, ArcelorMittal, has set a target of reducing carbon by 8% from 2007 to 2020 – equivalent to 170kg of carbon emissions per 1 ton of steel produced.

The realization of this goal depends on various fields such as environmental capital, production departments, and R&D investment. In 2010, ArcelorMittal invested $322 million in research and development.

Greg Ludkovsky, global vice president and R&D director of ArcelorMittal, said in an exclusive interview with this reporter on June 29th that the direction of R&D in the new phase of the steel industry is as follows: From the market demand, first, we must introduce environmental protection considerations.

Ludkovsky also said that "it is not a bad idea" to cooperate with China in "a field that is compliant with both sides", such as ultra-low CO2 steelmaking technology, and setting up an R&D center in China "is not impossible."

"21st Century": As a traditional high-energy-consuming industry, what is the latest R&D direction of the global steel industry in such a "low-carbon economy" era?

Ludkovsky: The development of the steel industry, including technological advancement, is fast. The development of science and technology also follows the changes in the supply chain requirements. The new requirements of customers continue to stimulate research and development. For example, our customers mainly come from two major categories. One is direct customers who purchase products directly, and the other is from academic institutions. But no matter what, we must ensure that the products we research and develop are environmentally friendly and can contribute to the environment for the entire manufacturing industry.

"21st Century": In addition to promoting joint venture projects with two Chinese steel mills, what is the interaction between ArcelorMittal and the Chinese steel industry in R&D?

Ludkovsky: China is undergoing revolutionary development. Many steel mills, such as Baosteel, have made great technological advances. In fact, the Chinese steel industry is making a major contribution, especially in the research and development of the metallurgical field.

From the perspective of enterprises, we may have difficulties in the cooperation of end products based on our competitive relationship. However, in some feasible areas that are compliant with the two sides, cooperation can be achieved.

For example, ultra-low CO2 steelmaking technology (ULCOS, a 1 billion euro plan, involves nearly 50 steel companies in Europe, aiming to reduce CO2 emissions by 50% by 2050). In the second phase, the pilot on combining carbon capture and storage with the “top gas cycle” is underway at ArcelorMittal's German plant and the French factory, and has not yet become the norm to the industry.

"21st Century": Some foreign-funded steel companies have set up R&D centers in China in recent years. Will ArcelorMittal consider this?

Ludkovsky: It's not impossible. I never shut down any ideas. But we must choose the right time and make the right decision.

We currently have a total of 14 R&D centers in the world. The only R&D center in developing countries is Brazil. We have several factories there. The ultimate goal of all R&D is to apply. This requires not only the local conditions but also the balance of "creativity" and "execution power" within the R & D department.