The aim of this project entitled CESMS – “Cost Effective Smart Maintenance System for Steel Industry” is to develop smart industrial sensors with edge computing capabilities and the relevant artificial intelligence (AI) models to serve for the improvement of Key Performance Indicators (KPIs) such as productivity, quality, maintenance costs and safety in automated steel production plants. These models could allow implementation of cyber-physical systems by joining physical and digital worlds to create a new networked layer. In this new network layer intelligent objects interact with each other to minimise movement and exchange of materials regarding exogenous and unexpected plant production conditions in order to reduce production costs and increase performance without prejudice to safety in the industrial facilities. As the models will have been applied in the facilities of a Steel Service Centre, the AI algorithms tested in Borçelik could be integrated into the monitoring and control system of potentially a greater number of industrial settings. The KPI’s observed through AI could also be extended in terms of the amount of diversity and to other industries. Real-time data acquisition, edge processing, data fusion, communication networks for monitoring, as well as predictive maintenance model generation are among the key features of this R&D project.