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Digital transformation at thyssenkrupp Steel

Digitization is in full swing

thyssenkrupp Steel manufactures steel on the basis of digitalized and highly automated high-tech processes. The use of artificial intelligence (AI) promises improved product quality and production reliability.

Volker Lang has seen and experienced a lot during his time at thyssenkrupp Steel. The business IT specialist began his career at the Duisburg-based steel manufacturer around 20 years ago in what was then the Heavy Plate division. Today, as Chief Information Officer (CIO), he is leading the company into the digital future. This is no easy task, as the agility of digital-based business models and the requirements of a production network geared towards stability cannot be easily reconciled. “The challenge for us as an industrial company is to develop a hybrid culture and find ways to cope with the level of dynamism unleashed by digitalization and AI,” says Lang.

Despite digitalization: steel remains steel

The necessary changes are much easier to make in administration than in production, where the introduction of smart IT solutions is often based on the investment cycles of the systems. “The focus in specialist and administrative departments is on increasing the efficiency of business processes. Apps, digital workflows and smart assistants have long been integrated into the digital infrastructure here,” says Lang. One example is the introduction of low-code platforms and citizen development. This approach enables all employees to independently develop simple applications and bots that make their daily tasks easier and thus actively contribute to the digital transformation. “In production, on the other hand, the focus is on stable processes, system availability and quality,” he emphasizes. “And here, too, a lot has already been achieved in recent years through the consistent implementation of numerous digitalization projects.”

However, one thing is clear: the core product steel will remain a physical quantity in the future. And yet digital technologies will play a key role in its production and marketing more than ever before. Lang: “Steel is a proven high-tech material that has been produced at thyssenkrupp Steel for decades in ever more optimized, highly automated production steps.” Thanks to the continuous advance of digitalization, the company is now able to collect and evaluate millions of pieces of data in real time across all sites and plants along the entire value chain using sensors and actuators.

Digitization improves competitiveness

The big data approach is not an end in itself, but contributes directly to transparency. “Today, we offer our customers unprecedented traceability of their orders. The detailed insights give them a clear competitive advantage and enable them to optimize production processes and quality. With the help of data analytics, for example, material properties can be predicted more precisely and tolerances can be set more accurately,” says Lang. The data treasures, which at thyssenkrupp are based on 15 years of data history in some cases, also give engineers and data scientists the opportunity to develop and train new AI models in order to leverage further potential in production. “At thyssenkrupp Steel, we're talking about a huge scale due to our production history. Even small improvements in detail help to achieve an enormous impact in the end.”

The same applies when it comes to meeting regulatory requirements for steel producers. For example, in the area of sustainability, where the carbon footprint of products is becoming increasingly important for customers and end consumers. Volker Lang knows: “Anyone who cannot provide transparency in the form of digital data on CO2 emissions along the value chain will be at a clear competitive disadvantage in the long term.” The steel producer is therefore also involved in the development of so-called data spaces, in which data can be exchanged securely and confidently across company boundaries. This is of great importance for many industries with independent and geographically separate production processes. One example is the Catena-X Automotive Network, a project in which the Fraunhofer Institute for Software and Systems Engineering (ISST) is playing a key role. Here, the targeted collation of data from all participating companies enables automotive manufacturers to meet the documentation requirements of the German Supply Chain Management Act, for example.

Right place and right time for digitization:

Professor Boris Otto from Fraunhofer ISST in Dortmund and thyssenkrupp Steel CIO Volker Lang
Professor Boris Otto from Fraunhofer ISST in Dortmund (left) and thyssenkrupp Steel CIO Volker Lang see great potential for the use of AI and digital technologies in the Rhine-Ruhr industrial region.

thyssenkrupp Steel is making a decisive contribution to achieving such improvements. This is how Professor Boris Otto from Fraunhofer ISST in Dortmund sees it: “The location in the middle of the Ruhr region offers the opportunity to continue developing and selling physical products. These now need to be successively supplemented with digital services that increase added value for customers.” Otto continues: “The Ruhr region has always been the industrial heart of Germany. But it is also a digital powerhouse: we have various universities within a 50-kilometer radius, where thousands of students are studying subjects such as IT and logistics. This is exactly where the digital services that industry needs are created.” Volker Lang takes a similar view: “We don't have to travel to Silicon Valley or Tel Aviv to see how digitalization works. We can do it here too. We have a strong university scene here and the right use cases.” For the CIO, the next step is for the technologies that are available around the world to arrive at thyssenkrupp Steel and develop their benefits on the ground. “At the core is always the idea of optimizing and improving ourselves - that's what steel production is all about.”

Digitization brings energy data together

The example of energy consumption clearly shows the role that digitalization plays in the green transformation of Europe's largest integrated steelworks: if material flows are not only recorded in detail but also seamlessly with the help of sensors and meters, it is possible, for example, to calculate the most resource-efficient operating mode for a specific plant. Or to determine the CO2 balance of the last coil produced. Data analyses can also be used to check whether the climate protection measures introduced actually achieve the expected CO2 reductions in practice. “From a sustainability perspective in particular, the detailed and transparent evaluation of energy data is becoming increasingly important,” says Mohamed El Haouati, who is responsible for material flow management in the digital team at thyssenkrupp Steel. “This is because,” says Carsten Rokitt, Head of Sustainable Development & ESG, ”in future, companies will have to report in more detail on how they are integrating the path to climate neutrality into their corporate practice, for example as part of European climate legislation.”

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thyssenkrupp Steel Europe AG

Kaiser-Wilhelm-Strasse 100

47166 Duisburg, Germany

+49 (0)203 52-0

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