Induction Heating Technology for the Tube and Pipe Industry

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Induction Heating Technology for the Tube and Pipe Industry AMM 2014 Steel Tube & Pipe Conference Topic 1: ATM Overview Topic 2: Induction Applications for Tube and Pipe Topic 3: Tube and Pipe Mfg. Cost Modeling, Electric vs. Gas Comparisons.

Ajax TOCCO Magnethermic (ATM) Over 1,000 employees in 20 worldwide facilities Staffed with Over 120 Mechanical, Electrical and Metallurgical Process Engineers Ajax Electrothermic Corp., 1916 TOCCO Inc., 1935 Ajax Engineering Corp., 1941 Magnethermic Corp., 1948 Ajax Magnethermic Corp., 1959 Japan Ajax Magnethermic Corp., 1965 Pillar Induction, 1966 American Induction Heating in 1968 Industrial Electric Heating in 1973 Lectrotherm Inc., 1989 Foundry Services, Gmbh 2000 INTECH, Gmbh 2000

Steel Super Heaters Topic #1 ATM Overview Steel 50% Bookings Heat Treat Quench and Temper Coreless Furnace Systems Foundry 20% Bookings Vertical Channel Furnaces

Topic #1 ATM Overview Billet and Bar Heaters Forging 10% Bookings Upsetting Systems Automotive Heat Treating 20% Bookings CV Joints Case Hardening

Corporate Formed in 1908 Sales approximately $1,200 Million (2011) Employees approximately 4,000 NASDAQ as PKOH Headquarters in Cleveland, Ohio

Diverse Services for Tube and Pipe Manufacturing

Diverse Services for Tube and Pipe Manufacturing

Direct Local Support for Tube and Pipe Manufacturers

Topic #2 Applications for Induction Tube and Pipe Manufacturing

(CECO) (CECO) (CECO) (PINES) (PINES) Typical Tube and Pipe Mfg. Applications for Induction Heating Heat Treat Quench and Temper of Tubing and Pipe Upset Processing for Heat Treating (in-line or pre-heaters) HF Seam Welding (New Product Release 2014) Weld Seam Annealing Full Body Annealing Pre-heating for Upsetting Sucker Rod Upsetting (Machines and Heaters) Sucker Rod Coupling Flame Spray Curing Swedge End Stress Relieving (Medium and Low Frequency) Tool Joint (Heat Treat, Tempering and Annealing) Curing & Pre-heating of Coatings Swivel Joint Bending (Machines and Heaters) Pipe Bending (Machines and Heaters) De-Bonding of Rubber (Round Stators) Continues Coiled Tube Processing Seamless Mill Billet Pre-heaters Seamless Finishing Taper Re-heaters

Complete Solutions for Heat Treat, Quench and Temper Lines From 2 40 tons an Hour in Complete ERW Systems

Complete Material Handling Solutions to Include Installation 12

Upsetting Systems We offer a variety of upsetting systems. The most common utilized are the Channel and the Pigeon Hole systems as shown below. The coil efficiency is the primary difference. Channel System (45 50%) Efficient Pigeon Hole System (65 70%) Efficient 13

Sucker Rod Upsetting

Solid State RF Flame Spray Curing of Sucker Rod Couplings

ERW Weld Seam Annealing Through advanced FEA analysis we can precisely control the heat effected zone of the seam annealing process. Finite Element Analysis video 16

ERW Weld Seam Annealing Movement 15º from coil center Welded Seam 15º

Full Pipe Annealing / Normalizing Full Pipe 750 1500 kw 1000 Hz 3 or more Coils in Parallel or Series / Parallel 18

Stress Relieving Medium Frequency 1 10 khz and Low Frequency 60 200 HZ Product Offerings. NEW PRODUCT RELEASE LATE 2014 19

Austenitizing (Tool Joint) Austenitizing for focused tool joint weld re-hardening. Re-hardening of tool joints is required after welding and machining for these processes change the base material hardness. 1& 2-turn Induction Coils Welded and Machined Tool Joint. 20

Tempering Systems (Tool Joint) Tempering of tool joint heat effected zone. Multiple turn coils are used to temper the entire heat effect area from Friction Welding, Austenitizing and cutting and/or grinding. Multi-turn Induction Coils Open and Encapsulated Tempered Tool Joint. 21

Coating Systems Induction heating provides a fast, efficient means of drying off surface moisture from pipes. Curing of water based anti corrosion coatings or epoxy can also be accomplished in-line versus in a furnace. Ajax has over 54,000 KW of installed Curing and Drying systems. TYPICAL TEMPERATURE RISE: PAINT/VARNISH CURING IS AMBIENT TO 200 F EPOXY (FBE) IS AMBIENT TO 500 F - 22

Rubber De-Bonding / Residue and Moisture Removal After Water Jetting Rubber De-bonding for Round Stators to break the bond between rubber on the ID of the tube. Typical OD temperatures are 850 F with ID temperatures of 750 F.

Swivel Joint Complete Systems Bending machine capable of tooling for bending up to a 90 degree elbow, sizes range from 1 through 4 swivel joints.

Tube & Pipe Bending Typical working temperatures are between 1900 2100 F. a Typical power supply would be 500 3 MW in power.

Seamless Mills - (Between Roughing and Finishing ) In-Line Tapered Heat Re-Heaters & Ingot Pre-Heaters)

Hybrid Induction Pre-Heaters for Existing Gas Fired Furnace Lines

Hybrid Pre-Heaters for Existing Gas Fired Furnaces Lines.

Temp (Deg F) 1800 1600 Hybrid Pre-Heaters for Gas Fired Furnaces. (Austenitize) 5.5 OD, 0.304 wall,tube 15 TPH 1400 1200 1000 800 600 GAS FURNACE 400 200 0 0 50 100 150 200 250 300 Time(Sec)

Temp (Deg F) Hybrid Pre-Heaters for Fossil Fuel Furnaces. (Temper) 1400 7 OD, 0.408 wall,tube 15tph 1200 1000 800 GAS FURNACE 600 400 200 0 0 50 100 150 200 250 300 350 400 450 500

Topic #3 Technology Comparison of Fossil Fuel Furnaces to Induction

Competitive Technologies - Induction to Fossil Fuel heating for the Manufacturing of Tube and Pipe Primary Operational Difference Efficiency Considerations Between Technologies Cost Comparison Worksheets Additional Considerations between Gas and Induction Technologies

Primary Operational Difference

Induction cost differential is typically offset with the efficiency average of Heat Treating = 65% 75% for Induction 40% to 55% for a typical fossil fuel furnace. Tempering = 65% 75% for Induction 60 70 % efficient for a typical fossil fired furnace. Heating Efficiency Considerations Between Technologies Source = ASM American Society of Metals

Efficiency Analysis of Typical In-line Fossil Fired Furnaces Losses in a typical fossil fuel furnace. Source = U.S Dept. Of Energy - A source Book for Industry

Efficiency Analysis of Typical In-line Fossil Fired Furnaces Model for Heat Treating = 49% Efficient Recovery with a Recuperator = 68% Efficient Because of their high temperature, furnaces are large users of fossilfuel energy. The following simple diagram lists the main losses on a typical furnace. Flue gases usually represent the main source of wasted energy. 49% 2% 1% (Barrel) 3% Open Ends Not Incl. 45% HT 32% Temper 11-19% Recovery

Efficiency Considerations Between Technologies Losses in a typical Induction System.

ATM Technology Comparison Worksheets

Case Study of Annual Operating Cost Comparison (2013) Max Utilization Scenario Min Utilization Scenario Summary Sheet of Annual Operating Cost of Gas and Induction for 36 Tons/hr. Heat Treat Quench and Temper Lines. Page-1 Available Hours Gas - HT Induction Gas - Temper Induction Available Hrs./ Yr. 8760 8760 8760 8760 Planned Downtime 1584 1584 1584 1584 Actual Operating Hours 7176 7176 7176 7176 Demand Cost? 2.5 2.5 Power Factor? 9000 9000 Utilization Historical Utilization Percentages 86% 97% 60% 80% Actual Operating Hrs. Based on utilization 6171.36 6960.72 4305.6 5740.8 Design Tons per Hr. 36 36 36 36 Annual Production Tons 222168.96 250585.92 155001.6 206668.8 Energy Cost Annual Operating cost $ 3,440,000 $ 5,375,000 $ 3,440,000 $ 5,375,000 Energy Cost Per Ton $ 15.48 $ 21.45 $ 22.19 $ 26.01

Case Study of Annual Operating Cost Comparison (2013) GAS - HT Induction GAS - Temper Induction Summary Sheet of Annual Operating Cost of Gas and Induction for 36 Tons/hr. Heat Treat Quench and Temper Lines. Scale Production Scale Production 1.3% 0.30% 1.5% 0.50% Yield lost to scale in Tons 2777.11 751.76 2325.02 1033.34 Cost per ton $ 800 $ 800 $ 800 $ 800 Lost Opportunity Cost $ 2,221,689.60 $ 601,406.21 $ 1,860,019.20 $ 826,675.20 Adjusted Operating Cost Adjusted operating cost $ 5,661,689.60 $ 5,976,406.21 $ 5,300,019.20 $6,201,675.20 Adjusted Cost per ton $ 25.81 $ 23.92 $ 34.19 $ 30.01 Page-2 Capital Investment Gas (W.Beam) Induction ENERGY COST ANAYLISIS Gas Induction Capital investment (2013 Quotes) $18,750,000.00 $ 7,150,000.00 $/MBTU $ 3.76 Installation Cost (Estimate) $ 3,131,073.00 $1,897,620.00 $/kwh $ 0.05 $ 0.05 (Gas installation multiplier =.65) Power Factor 6000 9000 Total Investment (Estimate) $21,881,073.00 $ 9,047,620.00 Demand $ 2.50 $ 2.50 *Consider that gas process DOES requires electrical power for ancillary components

Additional Considerations Cost Comparison in $/ton at Reduced Production Rates. Source = Induction heating source Book ASM This figure outlines the cost per ton difference between the technologies at reduced throughputs.

Additional Considerations - Controllability of Induction The power supplies are controlled by IR temperature controller feedback throughout the line. Power is adjusted automatically by Power proportional controls.

System Controls with Computer Generated Simulations Line speed and power can be adjusted electronically during production in response to changing conditions / alloys. The line can loose utilities or be shut down and restarted as required with a minimum loss product.

Temp (Deg F) AUSTENTIZING SYSTEM Design Simulations 36 tons/hr 2000 1800 4.5 OD, 0.25 wall,tube, 36 TPH 1600 1400 1200 1000 800 600 400 200 Tave Tcore Tsurf 0 0 5 10 15 20 25 30 35 40 Time(Sec)

Temp (Deg F) TEMPERING SYSTEM Design Simulations 36 tons/hr 1400 4.5 OD, 0.25 wall,tube, 36 TPH 1200 1000 800 600 400 200 0 Tave Tcore Tsurf 0 5 10 15 20 25 Time(Sec)

Additional Considerations - In-line Upset Tube and Pipe Uniform Heating Modeled two upset pipes, end to end

Additional Considerations - Reduced Cost of Environmental Compliance with Induction With induction combustion emissions of a furnace heating systems are eliminated. The corporation sees the benefits of fewer incidences of emissionrelated penalties. -OR In Some areas getting permitting is difficult and expensive.

Additional Considerations Worker Comfort and Safety Induction reduces the exposure of operators to the direct heat of fuel fired furnace systems. The corporation benefits from more employee comfort and a reduction in heat related safety incidences.

End of presentation (Questions) By: Donald A. Gibeaut