NISCO steel AI tools are being used across multiple production and management processes, the Chinese steelmaker said on October 26, 2026. Nanjing Iron & Steel Co. said it deployed the YuanYe Steel Large Model with Huawei and other partners and reported annual cost reductions of more than CNY100 million, or approximately US$15 million.

Key Takeaways

  • NISCO said it had launched 25 business agents using the YuanYe model by October 2026.
  • The company reported more than 300 AI models deployed across its plants, alongside employee-built applications.
  • NISCO and its partners plan to explore dedicated data centers, but did not announce a construction decision.

How NISCO steel AI is being used

YuanYe combines multiple AI models with models of metallurgical processes. NISCO said its applications include furnace monitoring, rolling-force prediction, quality inspection, production scheduling and environmental controls.

The company said data from operational technology across 26 business domains supports a digital twin of its operations. It also reported that all key equipment is connected and digitally controlled, while new-product research and development cycles have been shortened by 50%.

Reported production and inspection results

In ironmaking, NISCO said temperature prediction and furnace health models can help operators identify issues two hours ahead with more than 90% accuracy. It reported an increase of more than 10% in prime-grade molten iron yield.

In steel rolling, the company said the rolling-force hit rate rose from 88% to 98%. In quality inspection, it said automated testing reduced per-sample inspection time from 10 minutes to between three and five minutes.

These performance figures and cost savings are company-reported. The announcement did not provide a breakdown of the CNY100 million annual reduction or detailed baselines for all the reported improvements.

Deployment and data-center plans

Beyond the 25 YuanYe business agents, NISCO said it had deployed more than 300 AI models across its plants. Frontline employees had also built more than 1,000 low-code agents and lightweight applications.

As computing demand grows, NISCO said it would work with Huawei and other partners to explore dedicated data centers for smart steel plants. It did not disclose a construction timetable or investment amount.

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