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April 11, 2013

Outotec to deliver technology for an iron-ore pelletizing plant in China

Gerald Ondrey

Outotec Oy (Espoo, Finland; has agreed with Baotou Steel International Economic & Trading Co. on the design and delivery of an indurating furnace for a new iron-ore pelletizing plant to be built in China. The contract price is not disclosed, but deliveries with similar scope are typically worth approximately €30 million. The order has been booked in Outotec's first quarter 2013 order intake.

Outotec's scope includes basic and detail design for the indurating furnace of an iron-ore pelletizing plant based on modern traveling-grate technology. The indurating furnace is the core of the pelletizing plant, in which raw pellets are hardened in the furnace to enable further processing. Outotec will also deliver proprietary and key equipment for the furnace. The deliveries include spare parts, training and advisory services for the erection and commissioning of the furnace. Part of the services and supplies will be of Chinese origin.

The furnace will be specifically designed for the processing of iron ores with high sulphur contents. Baotou Steel is planning to complete the erection of the plant and start commissioning by the end of 2014. Its annual capacity will be 5 million metric tons of iron ore pellets.

About two thirds of the global pellet production derives from Outotec's environmentally sound traveling grate pelletizing process. Technology enables large capacities with low operational costs.

"We are happy with the continuation of the traveling grate story in China. It has started already in the 1960's with the delivery of the first indurating furnace to Baotou Iron & Steel, and continued in 2010 with a similar supply to Shougang Jingtang. The reliable and energy-efficient, traveling-grate technology is clearly gaining acceptance by the Chinese market," says Pekka Erkkilä, president of Outotec's Ferrous Solutions business area.


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