AI Technology Revolutionizing Steel Production at Metinvest's Zaporizhstal Plant
Metinvest Group, one of Ukraine's leading mining and steel companies, is making significant strides in modernizing its production processes through the use of artificial intelligence. The company’s IT arm, Metinvest Digital, developed an AI tool designed to optimize product quality control at Zaporizhstal, one of Ukraine's largest producers of pig iron and rolled steel products. This innovative solution, known as ForgeCheck, has the potential to save Metinvest US$250,000 annually while improving both production efficiency and customer satisfaction.
How ForgeCheck AI Enhances Product Quality Control
The ForgeCheck AI tool was first implemented at Zaporizhstal in June 2024, marking a critical step in Metinvest's ongoing push to integrate AI into its production facilities. The primary function of the AI system is to detect defects in slabs—a semi-finished steel product used in the production of sheet metal—during the cutting process. By providing real-time feedback to operators, ForgeCheck helps identify defective slabs immediately, with the system flagging defects in red on the monitor. Non-classifiable defects are highlighted in yellow, and a defect-free status is shown in green.
According to Maksym Balanyuk, Head of the R&D Centre at Metinvest Digital, the system’s accuracy currently ranges between 75-85%. Although some industry experts consider this acceptable for a pilot project, Balanyuk believes there is significant potential for improvement, with the goal of reaching 97% accuracy as the model evolves.
The primary benefit of the ForgeCheck system is its ability to reduce customer complaints and improve overall product quality. By catching defects earlier in the production process, Metinvest can avoid shipping subpar products to clients, thus cutting down on the number of product returns and claims. Additionally, the AI system optimizes energy use by preventing delays in slab cutting, which helps conserve electricity.
Cost Savings and Investment
Metinvest has not disclosed the exact investment cost for the AI solution, but it is clear that the system is designed to provide substantial financial returns. Balanyuk mentioned that the company spent approximately 1,000 hours developing the first version of the AI tool. The investment in AI technology is expected to yield high returns through the reduction in customer claims and more efficient operations. According to experts, the cost of developing a similar AI solution from scratch could run as high as US$80,000, with most of the expenditure directed towards the development team and infrastructure.
Scaling Challenges for Metinvest's AI Solution
Despite the success at Zaporizhstal, scaling the AI solution to Metinvest’s other steel plants presents a significant challenge. The Group’s portfolio includes 12 steel plants, some of which are located in areas impacted by ongoing geopolitical tensions. The diversity in product types across these plants makes it more complex to apply a one-size-fits-all solution for quality control.
Balanyuk pointed out that the immediate goal for Metinvest is to further refine and launch the second version of the AI tool, which will include additional features and improvements based on feedback from the initial testing phase. With the second version, Metinvest expects to reduce product claims by as much as 60%, and the financial savings are anticipated to grow in tandem with increasing production volumes.
A New Revenue Stream: Selling AI Technology to Competitors
Metinvest is not only focused on improving its own operations with AI but is also exploring the possibility of offering this innovative solution to other companies. Once the second version of the ForgeCheck system is fully developed, Metinvest intends to market the AI technology to competitors in the steel industry, potentially opening up a new revenue stream for the company.
Balanyuk confirmed that Metinvest plans to prepare an offer for potential partners in the steel sector, expanding the use of the AI system beyond the company’s own plants. This move aligns with Metinvest’s goal to not only enhance its internal processes but also establish itself as a technology provider in the global steel industry.
Looking Forward: A Smarter Future for Steel Production
The introduction of AI for product quality control is just one example of how Metinvest is embracing cutting-edge technology to optimize its operations. With ongoing improvements in the AI model and plans to scale it across additional plants, the company is positioning itself to lead in both operational efficiency and product quality in the steel industry.
As the industry continues to evolve, the success of Metinvest’s AI-driven initiatives highlights the growing role of artificial intelligence in revolutionizing manufacturing processes. For Metinvest, ForgeCheck is more than just a tool for quality control—it’s a critical part of the company’s broader strategy for long-term growth and sustainability in the global steel market.
