Transitioning of Steel Producers to the Steelworks 4.0—Literature Review with Case Studies

Abstract

The publication presents a picture of modern steelworks that is evolving from steelworks 3.0 to steelworks 4.0. The paper was created on the basis of secondary sources of information (desk research). The entire publication concerns the emerging opportunities for the development of the steel producers to Industry 4.0 and the changes already implemented in the steel plants. The collected information shows the support environment for changes in the steel sector (EU programs), the levels of evolution of steel mills, along with the areas of change in the steel industry and implemented investment projects. The work consists of a theoretical part based on a literature review and a practical part based on case studies. The work ends with a discussion in which the staged and segmented nature of the changes introduced in the analyzed sector is emphasized. Based on the three case studies described in the paper, a comparative analysis was conducted between them. When we tried to compare methods used in the three analyzed steel producers (capital groups): ArcelorMittal, Thyssenkrupp, and Tata Steel Group, it can be seen that in all organizations, the main problem connected with steelworks 4.0 transition is the digitalization of all processes within an organization and in the entire supply chain. This is realized using various tools and methods but they are concentrated on using technologies and methods such as artificial intelligence, drones, virtual reality, full automatization, and industrial robots. The effects are connected to better relations with customers, which leads to an increase in customer satisfaction and the organizations’ profit. The steel industry will undergo further strong changes, bringing it closer to Industry 4.0 because it occupies an important place in the economies of many countries due to the strong dependence of steel producers on the markets of the recipients (steel consumers). Steel is the basic material needed to make many products, and its properties have been valued for centuries. In addition, steel mills with positive economic, social, and environmental aspects are part of the concept of sustainability for industries and economies.

Key Directions in Changes from Steelworks 3.0 to Steelworks 4.0 with Analysis of Selected Technologies of Digitalizing the Steel Industry in Poland

“…Here's what they found [31,32]: − the beginning of the intensive digitization of the steel industry in the world begins in the 1990s, in Poland it begins at the beginning of the second decade of this century, the Polish steel industry is gradually implementing digital technologies in production processes (the increasing polarization of the Industry 4.0 concept makes it easier for steel mills to implement high technologies), there are segmental (in various areas of activity) investment projects for digital technologies (cases studies: ArcelorMittal, Thyssenkrupp, Tata Steel Group), − digital technologies in steel mills monitor the work of selected production sections and/or support basic technological devices (control parameters, control the operation of machines) the largest (key) processes and technologies, e.g. a blast furnace is supervised and controlled using IT systems, devices in steel plants and in rolling mills are equipped with sensors that provide data on the course of the process and facilitate their control, technologies with sensors create production networks, e.g.…”

“…From the beginning of the 90s, intensive projects of digitization of the steel industry were implemented in many countries around the world. Gajdzik and Wolniak [31,32] in their papers presented cases studies about digitalization in steel industry.…”

Systematic Assessment of Product Quality

“…The novelty of the concept in this study comes from the application of an advanced mathematical apparatus for the purposes of product quality analysis. However, practical applications of this method will not be possible before the Fourth Industrial Revolution because of the insufficient level of digitization of manufacturing processes [66,67]. Only after the emergence of Industry 4.0 and Quality 4.0 with the accompanying phenomena will the application of this kind of mathematically advanced method be possible in business practice.…”

“…It is concluded that this method could be a contribution towards the transformation of the baking industry, towards Industry 4.0. In Industry 4.0, we digitalize all data, and analyze them using big data or artificial intelligence methods [65][66][67][68]. It is concluded that this method based on real data from bakeries will speed up the implementation of Industry 4.0 therein.…”

Digitalization Business Strategies in Energy Sector: Solving Problems with Uncertainty under Industry 4.0 Conditions

“…However, in the European context [42], digitization as the core of the Industry 4.0 concept [47,48] is much more than just automation development [44,49]. Digital transformation is business transformation enabled by digitalization [12,50]. Digitalization is "a multidimensional process that leads to the convergence of the real and virtual worlds, becoming the main driver of innovation and change in the economy" [49].…”