Nanjing Iron & Steel Co. (NISCO) and Huawei have commercially deployed the YuanYe Steel Large Model, claimed to be the world's first steel model powered by swarm intelligence, across multiple production scenarios. The system embeds AI into every core stage of steelmaking, from ironmaking to quality inspection, and the companies report that new product R&D cycles have been shortened by 50 per cent, while annual costs have been reduced by over CNY100 million (approximately US$15 million).
NISCO has adopted Huawei’s Ascend, Kunpeng, Huawei Cloud Stack and Pangu models as part of its digital and intelligent foundation. YuanYe innovatively fuses multiple AI models with metallurgical mechanism models in a dual-drive architecture, described as featuring a “right brain” for probabilistic computing and a “left brain” for precise and scientific decision-making. Data from millions of operational technology points across 26 business domains is aggregated, and NISCO has achieved real-time digital twin mapping within its intelligent operations center, laying data and scenario foundations for YuanYe. This enables the steelmaking process to be visible, precisely controlled and intelligently assessed.
According to the announcement, 100 per cent of NISCO’s key equipment is now connected and digitally controlled, and by October 2026 the company had launched 25 business agents covering areas from visual quality inspection to production scheduling. In ironmaking, the model uses blast furnace sensor data and metallurgical analysis to perform real-time dynamic simulations; assisted by prediction and diagnosis models, operators can predict temperatures and identify issues two hours in advance with over 90 per cent accuracy. This shifts operations from reactive remediation to proactive control, increasing prime-grade molten iron yield by over 10 per cent while cutting unit energy consumption. In steel rolling, YuanYe’s rolling-force prediction model achieves millisecond-level response, narrowing thickness tolerance to ±0.2 mm and raising the rolling-force hit rate from 88 per cent to 98 per cent. For quality inspection, a smart metallographic inspection system built on YuanYe doubled inspection efficiency, shortening per-sample time from 10 minutes to 3–5 minutes and raising accuracy above 95 per cent. In energy and environmental control, a S-Link Intelligent Agent for Gas and Flue Gas Sulfur Control integrated 602 process parameters, issued precise sulfur-risk warnings one hour in advance and achieved sulfur prediction accuracy of over 95 per cent. It also slashed natural gas co-firing consumption by nearly 50 per cent, delivering more than CNY600,000 (approximately US$90,000) in annual economic benefits.
Li Jinyan, General Manager of NISCO’s Digital and Intelligent Integrated Development Department and Director of its AI Research Institute, said: "Digital and intelligent transformation is inherently human-centric. Its purpose is not to replace people, but to unleash human potential. Our goal is to lift employees out of the endless sea of data, empowering them to direct their creative energy toward work of higher value." To date, NISCO has deployed over 300 AI models alongside more than 1,000 low-code agents built by frontline employees. Cheng Yongfu, Senior Industrial Solution Expert at Huawei’s Steel and Non-ferrous Business Unit, said: "The real value of industrial AI can only be realized when it expands from single-point applications to comprehensive integration with production, operations, and management, which can unlock sustained, scalable empowerment."
Looking ahead, NISCO and Huawei plan to explore dedicated data centres for smart steel plants, centred on an AI-native three-tier architecture. NISCO aims to provide a replicable and scalable benchmark for digital and intelligent transformation of the global steel and manufacturing industries.
This article was supplied by Huawei.
Analysis
Why This Matters
- The deployment demonstrates that swarm intelligence and AI can transform traditional heavy industry, not just digital sectors, potentially reducing costs and improving quality.
- NISCO’s reported gains, 50 per cent shorter R&D cycles, improved yield, and significant energy savings, offer a concrete benchmark for other manufacturers considering similar digital transformations.
- The dual-drive architecture (probabilistic and precise decision-making) may serve as a new paradigm for industrial AI, addressing the complexity of physical processes.
Background
Steelmaking is a complex, high-temperature process where real-time control has traditionally relied on human expertise. NISCO, a major Chinese steel producer, has collaborated with Huawei to build a digital foundation using the company’s computing and AI platforms. The YuanYe model is among the first to combine AI with metallurgical mechanism models for comprehensive, real-time process optimisation.
Key Perspectives
Li Jinyan, NISCO General Manager of Digital and Intelligent Integrated Development: argues the transformation is human-centric, designed to unleash human potential by freeing employees from data overload, not to replace them.
Cheng Yongfu, Huawei Senior Industrial Solution Expert: contends that the true value of industrial AI emerges only when it is integrated comprehensively across production, operations, and management.
What to Watch
- NISCO and Huawei are exploring dedicated data centres for smart steel plants, which could deepen AI integration and serve as a model for the industry.
- The continued iteration of YuanYe, including expansion of its 25 business agents, may extend the scope of automation and optimisation.
- Other global steel and manufacturing firms may look to replicate NISCO’s approach, potentially influencing the pace of digital transformation in heavy industry.
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedLi Jinyan said: “Digital and intelligent transformation is inherently human-centric. Its purpose is not to replace people, but to unleash human potential. Our goal is to lift employees out of the endless sea of data, empowering them to direct their creative energy toward work of higher value.”www.theregister.com - Articles: “Digital and intelligent transformation is inherently human-centric. Its purpose is not to replace people, but to unleash human potential. Our goal is to lift employees out of the endless sea of data, empowering them to direct their creative energy toward work of higher value.”
- SupportedCheng Yongfu said industrial AI’s value comes from integrating it with production, operations and management to enable sustained, scalable empowerment.www.theregister.com - Articles: “The real value of industrial AI can only be realized when it expands from single-point applications to comprehensive integration with production, operations, and management, which can unlock sustained, scalable empowerment.”
- SupportedNISCO and Huawei deployed the world’s first swarm-intelligence steel model at scale.www.theregister.com - Articles: “NISCO has worked with Huawei and ecosystem partners to commercially deploy the world's first steel model powered by swarm intelligence - the YuanYe Steel Large Model (YuanYe) - across multiple scenarios at scale.”
- SupportedNISCO and Huawei commercially deployed YuanYe across multiple production scenarios.www.theregister.com - Articles: “NISCO has worked with Huawei and ecosystem partners to commercially deploy the world's first steel model powered by swarm intelligence - the YuanYe Steel Large Model (YuanYe) - across multiple scenarios at scale.”
- SupportedYuanYe fuses AI models with metallurgical mechanism models in a dual-drive architecture.www.theregister.com - Articles: “YuanYe innovatively fuses multiple AI models with the steel industry's metallurgical mechanism models to create a dual-drive, multi-model cluster architecture.”
- Partly supportedThe story attributes the R&D-cycle and annual-cost figures to reports by NISCO and Huawei.www.theregister.com - Articles: “NISCO's new product R&D cycles have been shortened by 50 percent, reducing annual costs by over CNY100m (approx. US$15m).”
- SupportedNew-product R&D cycles have been shortened by 50 per cent.www.theregister.com - Articles: “its new product R&D cycles have been shortened by 50 percent”
- SupportedAnnual costs have been reduced by over CNY100 million, approximately US$15 million.www.theregister.com - Articles: “reducing annual costs by over CNY100m (approx. US$15m).”
- SupportedAll of NISCO’s key equipment is connected and digitally controlled.www.theregister.com - Articles: “Now 100 percent of NISCO's key equipment is connected and digitally controlled”
- SupportedBy October 2026, NISCO had launched 25 business agents.www.theregister.com - Articles: “As the model continues to iterate, NISCO had launched 25 business agents by October 2026.”
- SupportedIn ironmaking, operators can predict temperatures and identify issues two hours in advance with over 90 per cent accuracy.www.theregister.com - Articles: “furnace operators can predict temperatures and identify issues two hours in advance, with over 90 percent accuracy.”
- SupportedThe model’s rolling-force prediction narrows thickness tolerance to ±0.2 mm and raises the rolling-force hit rate from 88 per cent to 98 per cent.www.theregister.com - Articles: “YuanYe's rolling-force prediction model achieves millisecond-level response, narrowing the thickness tolerance to ±0.2 mm ... The rolling-force hit rate has jumped from 88 percent to 98 percent”