The steel industry has faced several challenges during the years. There has always been an aspiration towards higher economic profitability for the system. During the mid 1970s and 1980s the energy crises caused a dramatic rise in energy costs, which led to an increased awareness in energy conservation. In recent years, climate change issues have become more important for the industry. The operating practises for an industrial system are often affected by external restrictions concerning the economical, energy and environmental efficiency of the system. There are a large number of ways to increase the system efficiency, e.g. installation of new process equipment, and practice changes. However, industrial systems such as an integrated steel plant consist of a system of several processes connected together with product and by-product interactions, where changes in one unit may result in changes throughout the total system. A process integration method focusing on the total integrated steel plant system by a simultaneous approach is adopted. An optimisation model is developed and used to study the effect of changes in the existing material and energy system. Applications of the model on the energy and material system have been made. The model can be used to analyse energy, environmental and economic aspects making it a powerful complement as a decision making tool. Conclusions about energy, environmental and economic effects are presented. © 2005 Elsevier Ltd. All rights reserved.