Russian steel maker Severstal will spend RUB 9.1 billion on IT and digital projects in 2021. In 2021, Severstal will significantly change the company's IT process model and organizational structure. At the moment, the key process change is the continuous work with the client to create a joint product. In this regard, in January 2021, four new client teams were created, responsible for the development of Severstal's business in their functional area. The teams focused on generating and developing new initiatives, promoting digital tools in business units, as well as managing implementation projects that contribute to additional production growth.
On October 1, Severstal will host a productive launch of the SAP S 4 HANA system, which will replace the current ERP generation - SAP ECC. This is one of the company's largest transformation projects in the past decade. In addition, in 2021, Severstal's IT function plans to implement more than 200 implementation projects of various scales. The largest of them traditionally lie in the field of production, sales and logistics. In terms of supply chain management, customer models of sales, internal logistics, and mid-term planning of production assets will be implemented. Other significant projects include the further development of the online store, the replication of the MES system at the enterprises of the hardware group and the implementation of an engineering data management system.
Within the framework of Severstal Digital, the Center for Artificial Intelligence and Machine Learning was created, which includes a data analysis department and a computer vision department, the architecture and development team was expanded, and support for solutions was introduced 24/7. In 2021, in the field of digital projects, specialists will continue the trend towards improving the energy efficiency of industrial equipment, as well as increasing the productivity of key units. In particular, the Karelsky Okatysh is currently testing a model that will save energy on the roasting machines. In addition, thanks to digital solutions, it is planned to increase production at the 2000 mill of the Cherepovets Iron and Steel Works (CherMK), as well as to significantly accelerate the heating of slabs in the sheet-rolling shop for the production of pipe rolling at CherMK. Recall In 2020, significant progress was made in the areas of energy efficiency and production growth, for example, Severstal implemented a solution based on artificial intelligence technology on the continuous pickling unit No. 3 of CherMK, which increased its productivity by more than 6.5%. In addition, a machine learning model for the automatic control of air compressors was successfully launched, which allows for more efficient use of electricity.