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UNIT – 1

Popularly known as Lhaki Steel, Unit 1 is the biggest integrated steel factory in the kingdom. It came into operation in 2008 to produce quality QST/TMT for the booming mega-construction market. It has two 15mt induction furnaces, an 11/6 continuous casting machine (CCM) and a rolling mill.

In 2014, the plant underwent a major revamp. The systems were upgraded to enhance its production capacity and produce better quality QST/TMT. The total amount spent for the revamp project was Nu. 176.0 million.  Some modifications executed were;

1. Direct Hot Charging: This is the newest development in Integrated Steel Factory. It is designed to bring down the cost of production and to increase productivity. This is done by taking advantage of hot (high temperature) billets coming out from the CCM. In conventional rolling operation, the billets are first heated up to malleable temperature (1200°C) in a reheating furnace using furnace oil. As much as 47 liters of this oil is consumed to heat one metric tonne of billets to 1200°C. Direct hot charging eliminates the need to reheat and, since use of fossil fuel is removed from the system, direct hot charging is also known as ‘Green Rolling Technology.’

2. Automatic Cooling Bed: The Unit boasts a 75m-long state-of-the-art fully automatic rake type cooling bed. This was the most expensive component of the revamping project.

3. D.C Motor: For better and consistent rolling efficiency, all intermediate mill motors were changed to D.C motors.

4. Thermex Quenching System:  The old quenching system was replaced with world renowned Thermex Quenching System for a better and consistent QST/TMT product.

After seeing the success story of Direct Hot Charging and with the demand for QST/TMT increasing at home, a 12 TPH mill from Druk Iron and Steel located at Rabtengang was relocated to Unit 1 at the cost of Nu. 40.5 million in 2015. It is now in full operation.

Unit 1 manufactures 300mt of high quality billets of 100x100mm each day, rolls QST/TMT re-bars in 8,10, 12, 16, 20, 25, 28, 32, 40mm sizes (Fe 500 grade) and it also rolls 22mm and 25mm plain rods as well as 5.2 mm coils.

Unit 1 also houses a Value Addition Plant, where high quality nails and binding wire are manufactured. It manufactures nails of ¾,1,1.5,2,2.5,3.3.5,4,4.5 and 6 inch sizes and binding wire of 18 SWG and 20 SWG. The Value Addition Plant was set up in 2014 with a total investment of Nu. 30 million.

It is a matter of pride for the company that Perfect steel forms the core skeleton and entrails of every mega structure being constructed in the kingdom.