Detailed Project Report (DPR) on steel pipe plant

STEEL PIPE PLANT

[CODE NO.3803]  

Electric resistance welded (ERW) pipe is manufactured by cold-forming a sheet of steel into a cylindrical shape. Current is then passed between the two edges of the steel to heat the steel to a point at which the edges are forced together to form a bond without the use of welding filler material. Initially this manufacturing process used low frequency A.C. current to heat the edges. This low frequency process was used from the 1920’s until 1970. In 1970, the low frequency process was superseded by a high frequency ERW process which produced a higher quality weld.

Over time, the welds of low frequency ERW pipe was found to be susceptible to selective seam corrosion, hook cracks, and inadequate bonding of the seams, so low frequency ERW is no longer used to manufacture pipe. The high frequency process is still being used to manufacture pipe for use in new pipeline construction

ERW steel pipes & tubes find widespread usage across industries and fields. In addition to various engineering industries, they are used for water, oil and gas distribution, line pipes, fencing, scaffolding, etc. They are also used for agricultural purposes, drinking water supply, and thermal power, for hand pumps for deep boring wells and also as protection for cables (telecom), among others. Depending on the requirement of the end user industry, ERW steel pipes & tubes are available in various wall thicknesses, diameters, and qualities. The different types include line precision pipes, tubular poles, electric poles, lightweight galvanised pipes for sprinkler irrigation, among others. The industry has sufficient capacity to manufacture the different types of pipes & tubes. High performance ERW steel pipes & tubes possess high strength, toughness and are corrosion resistant. In the manufacturing process of ERW steel pipes & tubes, the edges to be welded are mechanically pressed together and electric resistance or electric induction is used to generate the heat required for welding. With the adoption of better welding technology, ERW pipes & tubes are now widely used in the oil & gas sector. A number of ERW steel pipes & tubes production units are in the SSI sector. Higher demand from the oil & gas industry, infrastructure and automobile industries has led to a healthy increase in production of ERW steel pipes.

TYPES OF ERW PIPE

(1) Low-Frequency-Welded ERW (LF-ERW) Pipe

(2) High-Frequency-Welded ERW (HF-ERW) Pipe

(3) Direct-Current-Welded ERW (DC-ERW) Pipe

(1) Low-Frequency-Welded ERW (LF-ERW) Pipe

ERW pipe was introduced by Republic Steel in 1929 and variations of the original process are still in use today. Cans were formed continuously as described above, and welding was done with low-frequency alternating current (typically 120 cycles per second).

Low-frequency electric resistance weld, LF-ERW is Electric resistance welded (ERW) pipe manufactured by cold-forming a sheet of steel into a cylindrical shape. Current is then passed between the two edges of the steel to heat the steel to a point at which the edges are forced together to form a bond without the use of welding filler material. Initially this manufacturing process used low frequency A.C. current to heat the edges. This low frequency process was used from the 1920s until 1970. In 1970, the low frequency process was superseded by a high frequency ERW process which produced a higher quality weld.

Over time, the welds of low frequency ERW pipe was found to be susceptible to selective seam corrosion, hook cracks, and inadequate bonding of the seams, so low frequency ERW is no longer used to manufacture pipe. The high frequency process is still being used to manufacture pipe for use in new pipeline construction.

(2) High-Frequency-Welded ERW (HF-ERW) Pipe

Between about 1960 and 1970, most manufacturers of low-frequency-welded ERW pipe either converted to high-frequency welding (450 kilocycles per second) or went out of business. The high-frequency welding process was easier to control, the equipment was easier to maintain, and it produced weld zones with better resistance to brittle fracture than the low-frequency process.

(3) Direct-Current-Welded ERW (DC-ERW) Pipe

ERW pipe made with direct current was introduced around 1930 by Youngstown Sheet & Tube Company. Individual cans were cold formed from hot-rolled plates of more than 50 feet in length. Each pipe was thus welded as a separate unit compared to the continuous process.

Physical Properties of Piping Materials

The reasons pipe and tube are made from different materials is due the to physical properties of different materials. Properties such as: 

• Malleability

• Ductility

• Brittleness

• Hardness

• Elasticity

• Conductivity

• Chemical resistance / resistance to corrosion

Malleability

Malleability can be defined as the property of a metal to be deformed by compression without cracking or rupturing. This property is very useful for copper tubing systems which allow the tube to be bent to follow the required route quickly without the need for expensive and time consuming fittings:

Ductility

Ductility is a mechanical property used to describe the extent to which materials can be deformed plastically without fracture. Ductile metals lend themselves to be formed into desired cross sectional shapes easier and therefore are cheaper to manufacture.

Brittleness 

The tendency for a metal to crack or break with deformation. Metals displaying this property are not readily used for pipe or tube as this is a disadvantage to a material. 

Hardness Is the property of being rigid and resistant to pressure; not easily scratched. It is measured on Mohs scale. It’s presence in metals can be an advantage for high pressure systems but can be a disadvantage as it can increase machining, cutting and fabrication times.

Elasticity

The property by virtue of which a material deformed under the load can regain its original dimensions when unloaded. This property is utilized in piping system designs where pipes may expand or contract due to temperature differences. The elasticity of piping materials can help the designer cater for this.

Conductivity

The ability of a material to conduct electrical current or heat. Some piping systems high conductivity metals for high heat transfer while other piping systems use low conductivity plastic materials to prevent heat transfer.

Chemical resistance/ Resistance to Corrosion 

The degree to which a material resists the corrosive action of industrial chemicals. This is probably the most significant property which affects the choice of piping material and is the biggest contributor to the price of material. Specialist alloys of stainless steel such as Hastelloy can be 10 to 20 times more expensive that standard stainless steel and can be slower to fit and weld which increase installation costs.

COST ESTIMATION

Plant Capacity                               1000 MT/Day

Land & Building (50,000 sq.mt.)    Rs. 30 Cr

Plant & Machinery                           Rs. 60 Cr

Working Capital for 2 Months        Rs. 358.45 Cr

Total Capital Investment                 Rs. 456.55 Cr

Rate of Return                                   28%

Break Even Point                              48%

• INTRODUCTION
• TYPES OF ERW PIPE
• (1) LOW-FREQUENCY-WELDED ERW (LF-ERW) PIPE
• (2) HIGH-FREQUENCY-WELDED ERW (HF-ERW) PIPE
• (3) DIRECT-CURRENT-WELDED ERW (DC-ERW) PIPE
• PHYSICAL PROPERTIES OF PIPING MATERIALS
• MALLEABILITY
• DUCTILITY
• BRITTLENESS
• ELASTICITY
• CONDUCTIVITY
• CHEMICAL RESISTANCE/ RESISTANCE TO CORROSION
• PROPERTIES
• ADVANTAGES OF ERW PIPE
• USES AND APPLICATION
• USES
• APPLICATION
• B.I.S. SPECIFICATION
• PROCESS FLOW CHART
• MANUFACTURING PROCESS
• 1. UNCOILED, LAVELED AND WELDING OF STRIP
• 2. STRIPPING
• 3. LOOPING
• 4. EDGE TRIMMING
• 5. FORMING
• 6. WELDING
• 7. BEAD TRIMMING
• 8. SIZING
• 9. CUTTING
• 10. NORMALISING
• 11. END FACING AND BEVELLING
• 12. TESTING
• ULTRASONIC TESTING
• EDDY-CURRENT TESTING
• HYDROSTATIC TESTING
• MAGNETIC PARTICLE TESTING
• RADIOGRAPHIC (X-RAY) TESTING
• DYE-PENETRANT TEST
• 14. MARKING
• PLANT AND MACHINERY
• (1) UNCOILER
• (2) LAVELER
• (3) SHEAR AND WELDER
• HIGH QUALITY WELDING SEAM.
• 1. SWITCHGEAR RECTIFYING CABINET
• 2. INVERTER OUTPUT CABINET
• 3. CONNECTING OPTICAL FIBER
• 4. CIRCULATION SOFT WATER COOLING SYSTEM
• 5. CENTRAL OPERATION CONSOLE
• 6. MECHANICAL ADJUSTMENT DEVICE
• (4) ACCUMULATOR
• ACCUMULATOR
• THE HORIZONTAL SPIRAL ACCUMULATOR FOR WELDED PIPE LINE
• (5) FORMING AND SIZING SECTION
• FORMING AND SIZING MILL
• MATURE TECHNOLOGY FOR ROLLER COMPATIBILITY
• OPTIMIZED FORMING
• EDGE BENDING
• W-FORMING ON FIRST STAND
• (6) HF SOLID STATE WELDER
• HIGH QUALITY WELDING SEAM.
• 1. SWITCHGEAR RECTIFYING CABINET
• 2. INVERTER OUTPUT CABINET
• 3. CONNECTING OPTICAL FIBER
• 4. CIRCULATION SOFT WATER COOLING SYSTEM
• 5. CENTRAL OPERATION CONSOLE
• 6. MECHANICAL ADJUSTMENT DEVICE
• (6) ANNEALING FURNACE
• (7) FLYING SAW
• FLYING SAW
• FLYING SAW ALL DIGITAL CONTROL SYSTEM
• (8) FACING AND BEVELING MACHINE
• (10) STRAIGHTNER MACHINE
• (11) THREADING MACHINE
• THREADING MACHINE FEATURES:
• (12) HYDRAULIC TESTING MACHINE
• 1) FOR ERW TUBE AND SEAMLESS TUBE
• 2) FOR LARGER DIAMETER PIPE (HSAW AND LSAW PIPES)
• MARKET POSITION
• DOMESTIC DEMAND DRIVERS
• CAPACITY EXPANSION BY DOMESTIC PLAYERS
• HUGE INVESTMENTS IN THE SOUTH/EAST INDIA
• PLANT LAYOUT
• PRESENT MANUFACTURERS/SUPPLIERS OF M.S ERW PIPE
• SUPPLIERS OF RAW MATERIALS
• SUPPLIERS OF M.S STRIP COILS
• SUPPLIERS OF RESSISTANCE WELDING ELECTRODE
• SUPPLIERS OF PICKLING CHEMICALS
• SUPPLIERS OF ZINC INGOT
• SUPPLIERS OF CASTIC SODA
• SUPPLIERS OF HYDROCLORIC ACID
• SUPPLIERS OF ZINC AMONIUM CLORIDE
• SUPPLIERS OF DEGREASING CHEMICAL
• SUPPLIERS OF PHOSPHATING CHEMICALS
• SUPPLIERS OF PLANT AND MACHINERY
• SUPPLIERS OF ERW PIPE AND TUBE PLANT
• SUPPLIERS OF HIGH FREQUENCY INDUCTION WELDER
• SUPPLIERS OF EOT CRANES
• SUPPLIERS OF DG SETS
• SUPPLIERS OF POWER TRANSFORMERS
• SUPPLIERS OF COOLING TOWER
• SUPPLIERS OF ETP PLANTS
• SUPPLIERS OF AIR POLLUTION CONTROL EQUIPMENTS
• SUPPLIERS OF AIR COMPRESSORS
• SUPPLIERS OF PLATFORM WEIGHING MACHINE
• SUPPLIERS OF MATERIAL HANDLING EQUIPMENTS
• SUPPLIERS OF NDT INSPECTION EQUIPMENT
• SUPPLIERS OF FIRE FIGHTING EQUIPMENTS
• SUPPLIERS OF ELECTRICAL MEASURING INSTRUMENTS
• SUPPLIERS OF SUBMERSIBLE WATER PUMP
• LIST OF PLANT & MACHINERY

APPENDIX – A:

01. PLANT ECONOMICS

02. LAND & BUILDING

03. PLANT AND MACHINERY

04. OTHER FIXED ASSESTS

05. FIXED CAPITAL

06. RAW MATERIAL

07. SALARY AND WAGES

08. UTILITIES AND OVERHEADS

09. TOTAL WORKING CAPITAL

10. TOTAL CAPITAL INVESTMENT

11. COST OF PRODUCTION

12. TURN OVER/ANNUM

13. BREAK EVEN POINT

14. RESOURCES FOR FINANCE

15. INSTALMENT PAYABLE IN 5 YEARS

16. DEPRECIATION CHART FOR 5 YEARS

17. PROFIT ANALYSIS FOR 5 YEARS

18. PROJECTED BALANCE SHEET FOR (5 YEARS)