May 2024 Volume 6

MATERIALS

Investments in Automation and AI Offering Opportunities to Compete in Today’s Environment By Michael Koutsis and Matt Oettli

• Labor – Especially in the U.S., labor is in short supply. Automa tion and AI are critical to ensure the labor force focuses on the work for which people are ideally suited. • Safety – Most importantly, automation and AI investments are critical to guarantee safe and reliable operations.

For many years in North America, the future of manufacturing and forging in particular has been challenged. Low-cost global supply chains have put significant pressures on small and large operations. However, manufacturing has always had to consider investments to compete and sustain a competitive advantage. Metallus recently changed its name from TimkenSteel, in part, to highlight that a company that has been making steel for more than 100 years is committed to new products, new capabilities and new ways of processing to serve the industry far into the future. As manufacturing companies consider investments using automa tion and artificial intelligence (AI), the following are among the important criteria: • Capacity – The worldwide production of steel and many manu factured products satisfies world demand. However, there is often a need for additional specialized capacity to satisfy local supply chains and specific products. Investments in capacity are usually best when aligned with specific customer needs and the related supply chain. • Efficiency & Quality – Eliminating rework and meeting customer requirements along with the requirements throughout the supply chain are critical. Expensive investments can often be avoided by using technology (automation and AI) to do more with existing assets.

Capacity While broad additional steel-making capacity is not required, Metallus is strategically advancing its production capabilities to fulfill the significant requirements of a new contract with the United States Army worth up to $99 million. This investment is earmarked for a pivotal project aimed at boosting the Army's artillery shell produc tion capacity—an initiative that will enhance Metallus’ manufac turing facilities, focusing specifically on expanding the production rate of bar-based steel products. • The agreement, aligning with the objectives of the 2022 National Defense Strategy by modernizing the defense industrial base, further augments the company’s ability to meet Department of Defense demands. By utilizing automated systems, Metallus can ensure high-quality specialty metals are produced efficiently, reducing the risk of production delays. • Under the leadership of President and CEO Mike Williams, Metallus is set to leverage these advancements to strengthen its commitment to the defense sector, adhering to a strategy that balances operational excellence with sustainable practices.

FIA MAGAZINE | MAY 2024 50