Gallatin Steel expects to make 1.6 million tons of hot band steel coils in 2008.

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Gallatin Steel is a successful steel manufacturer based in Ghent, Ky. today, but General Manager of Steelmaking Chuck Greene remembers the rough start the mini-mill endured in the mid-1990s.

What is now a joint venture between ArcelorMittal and Gerdau Ameristeel, Gallatin Steel was founded in May 1995 as the third compact strip production (CSP) mill ever operated. The philosophy of the management at the time was to hire college graduates for all production and maintenance positions.

This, however, turned out to be a poor strategy, according to Greene. He says that many of the college graduates did not see enough opportunities to advance, and so Gallatin’s turnover exceeded 60 percent. Gallatin also had a great number of equipment problems in the melt shop. With the college degree requirement for new hires, many of the skilled craft positions went unfilled, making the equipment problems even more difficult to correct.

In 1997, Gallatin Steel scrapped the original business model and converted to a more traditional structure. Gallatin focused on hiring the best people, whether they held a degree or not, and training them well for their jobs. This allowed the company to improve productivity and reduce costs giving Gallatin a competitive advantage.

This year, Greene projects the facility will make in excess of 1.6 million tons of hot band coils, a great achievement given the plant’s original rating was 1.2 million tons. In addition, the company’s turnover has dropped from 60 percent to just more than 1 percent last year.

Customer Service is Key
Greene says Gallatin Steel remains flexible to serve any product needs a customer might have.

From a chemistry standpoint, Gallatin Steel’s current grade book consists of more than 250 different grades. Final strip dimensions run from 42 inches wide to 64.5 inches wide with a thicknesses ranging from .058 inches to .675 inches.

“We strive for excellent customer service,” he says. “We listen to our customers needs and find products that fit those needs.”

Safety Awareness
Greene says that the steel industry in the United States has come a long way in terms of safety awareness over the last five years, and believes Gallatin Steel is a front runner.    

The safety of its associates is truly our number one priority, and Greene says he’s confident that everyone at Gallatin Steel understands and believes this.    

“We believe that there is a direct correlation between safety and productivity.” he adds. “You can’t have one without the other. Our safety staff and safety team leaders are among the most knowledgeable and dedicated in the steel industry. The health and wellness of associates are also top priorities at Gallatin Steel.”
 
Environmental Ethics
Gallatin Steel says environmental protection is one of its key values and an important component of sound business performance.

“We are committed to protecting our natural resources and preventing pollution by establishing objectives that reduce our impact on the air, water and land,” the company says. “These values originate with the top management and are emphasized through all levels of responsibility within the organization.”

Gallatin Steel’s guiding principles state that the company will:

• Comply with all environmental laws, regulations, permits and standards of practice.
• Promote and improve environmental awareness within Gallatin Steel through effective communication, training and consultation.
• Incorporate environmental initiatives and targets in business plans with particular focus on waste minimization, recycling, reuse programs and pollution prevention.
• Manage the storage, handling and disposal of hazardous materials.
• Participate in the development and implementation of appropriate environmental legislation.
• Reduce environmental risk through operating practices and emergency preparedness.

Making the Steel
Greene says Gallatin Steel uses 75 percent recycled scrap and 25 percent scrap substitutes for its recipes. Every 45 to 50 minutes, the plant melts 210 tons of material which yields about 190 tons of molten metal with a temperature of 3,020 F.     

This mixture is then processed into a ladle metallurgy furnace, where Gallatin Steel fine-tunes the chemistry to get the properties it needs. It then warms the ladle to the temperature needed for casting in the compact strip machine. Then, it is poured into a continuous caster, which can cast up to 14 consecutive ladles.