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It is not the first time that we have referred to innovation and its close relationship with the client’s problems in these pages, especially with regard to improving their processes. Orientation towards and from the client, together with specialisation in certain equipment and processes, define the path of our technological progress. In understanding innovation this way, it does not involve improving designs or adding state-of-the-art elements, more precisely it involves adapting our machines and equipment to the client’s and the market’s needs. Thus the involvement in and the closeness to the specific production problems is an overriding factor. Historically, we have placed the emphasis on the hardiness and durability of our machines. Over time we have also added efficiency criteria in overall terms, which have conferred us a certain advantage within the market. We are therefore presently at the cutting edge of technology in abrasive cutting processes, straightening and polishing, grinding and other processes related to long products. Some examples are outlined in the inside pages of this newsletter. It is important to highlight that our attitude towards improvement not only produces better machines and equipment, but it also leads to a new business culture and imbues a dynamic innovation attitude to our business, affecting all our internal processes. Overall, it makes us an innovative company. In any event, the close relationship with the client and the market is the determining factor and thus this newsletter that you have in your hands is intended to be an instrument for bringing us closer and an invitation to join forces in the line of innovation. Innovation as a differentiating factor Nº 3 October 2006 ALFREDO GARCÍA / President We are pioneers in innovative projects MAIN OFFICES Pol. Leguizamón, C/Zuberoa - nº9 l 48450 Etxebarri (Bizkaia) Spain Tel.: 0034 94 449 21 50 l Fax: 0034 94 440 76 71 www.covascas.com l E-mail: [email protected]

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It is not the first time that we have referred to innovation and its close relationship with the client’s problems in these pages, especially with regard to improving their processes. Orientation towards and from the client, together with specialisation in certain equipment and processes, define the path of our technological progress.

In understanding innovation this way, it does not involve improving designs or adding state-of-the-art elements, more precisely it involves adapting our machines and equipment to the client’s and the market’s needs. Thus the involvement in and the closeness to the specific production problems is an overriding factor.

Historically, we have placed the emphasis on the hardiness and durability of our machines. Over time we have also added efficiency criteria in overall terms, which have conferred us a certain advantage within the market. We are therefore presently at the cutting edge of technology in abrasive cutt ing processes, straightening and polishing, grinding and other processes related to long products. Some examples are

outlined in the inside pages of this newsletter.

It is important to highlight that our attitude towards improvement not only produces better machines and equipment, but it also leads to a new business culture and imbues a dynamic innovation attitude to our business, affecting all our internal processes. Overall,

i t makes us an innovat ive company.

In any event, the close relationship with the client and the market is the determining factor and thus this newsletter that you have in your hands is intended to be an instrument for bringing us closer and an invitation to join forces in the line of innovation.

Innovation as a differentiating factor

Nº 3October 2006

AlfreDo gArcíA / President

We are pioneers in innovative projects

MAIN OFFICES

Pol. Leguizamón, C/Zuberoa - nº9 l 48450 Etxebarri (Bizkaia) SpainTel.: 0034 94 449 21 50 l Fax: 0034 94 440 76 71www.covascas.com l E-mail: [email protected]

Vascas technology

The procedure using push

benches for hot rolling tubes

is called “Ehrhardt”, after its

inventor.

Tubes of between 50 and 170

mm can be manufactured using

this system, with wall thicknesses

of approximately between 3 and

18 mm. The tubes can be up to 18

meters in length.

Billets (square, octagonal or

round) are used as the base

material, which are heated to

shaping temperature.

The process is preceded by

punching the slab using a flaring

tool to set the inside diameter of

the tube.

Subsequent ly, the outside

diameter of the tube is set by

passing the tube, with the flaring

tool inside it, through the different

rolling stands, in accordance with

the following process:

Firstly, in a stretching rolling mill

of crossed cylinders, the stretching

process is simultaneously carried

out (1.8 times the length of the

metal bar and the reduction in the

thickness of the wall).

Next, the hollow metal bar is

stretched on the bench, being

lengthened by 10 to 15 times, until

the finished tube is obtained. By

means of ever smaller sections in

the groves in the rollers, the related

reduction is obtained on each pass.

During this process 6 or 7 boxes act

simultaneously, and the transmission

of the force to the bar of the flaring

tool is conferred by a large rack.

This rack is a key part in this

process. In order to guarantee its

durability for a period of no less than

four years, it must be manufactured

following very special processes,

which are not within the reach of

any company. Given the operating

conditions of this rack (we should

not forget that the stretching speed

can be up to 6 meters per second),

any premature wear of the rack or

the breakage of a tooth or similar,

can cause serious problems during

rolling, which cannot be corrected

by means of welding processes.

C. M. Vascas specia l ises

in manufacturing this type of

equipment and has renowned

prestige among the clients to which

it supplies these racks, thanks to

good performance and quality.

Rolling of weldless tubes:

racks for stretching benches

JuAn félix ercillA.Production Manager

The rack

is a key

part in

this process

Vascas news

PioneerprojectforamobileabrasioncuttingmachinetohandleheavyproductionrunsVascas assigned itself the project of making a mobile abrasive cutoff machine, which together with Vascas’s existing cutoff machine, will allow for handling the heavy increase in the rolling capacity of a well-known stainless steel manufacturer. The project consists of being able to make two simultaneous cuts at the end of the cooling bed.

VascashasdeliveredatubegrindingmachineVascas has delivered a grinding-polishing machine for special tubes, and we are thus continuing to opt for abrasion machines as an ongoing field for development and innovation.

ReengineeringofamachineforstraighteningtubesThe scope of the project has included the improvement of its mechanical performance features and the inclusion of automated positioning devices in accordance with the different types of material to be processed.

Vascas in brief

because our promise is to offer a quality service

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SteelproductioninChinaThe growth in steel production in China is still strong. Simultaneously, Chinese steel consumption has slowed, leading to certain fears in the international markets of a heavy increase in its exports (these increased by some 48% during the first half of the year). It is expected that there will be increasing pressure to strengthen customs barriers in other regions.Meanwhile, their steel prices have continued to drop. Experts attribute this price decrease to the control measures taken by the Chinese authorities to rein in their present overproduction of steel.

O U R F A C I L I T I E S I N E T X E B A R R I

MittalandArcelorMittal and Arcelor have merged, creating a steel industry giant. The president of the new Arcelor-Mittal Company, Lakshmi Mittal, rated the decision as being “the most significant agreement ever in the steel industry” and encouraged other companies to “boost their own consolidation plans”. After this agreement the future of the Canadian company Dofasco is yet to be determined, as there are still differences of opinion among its present shareholders.

Severalsteelindustrynewsclips:

From the 12th to the 16th of June 2007, the 7th edition of the International Trade Fair for Steel Technology (METEC) will be held in Düsseldorf with the InSteelCon Congress and EMC 2007.

An initial agree-ment between Sidenor and Cie Automotive for the acquisition of the Basque steel company GSB, whi-ch is a manufacturer of specialty steels.