The Libyan Iron and Steel Company signed a memorandum of understanding with the Italian company Danieli to launch a project to implement a direct reduction plant.
The Libyan company made the statement through its official Facebook account. The factory will produce two million tons of sponge iron and hot-molded iron annually.
Sponge or hot-molded iron is in demand in the local market of the Libyan Iron and Steel Company. As well as in global markets, in addition to Danieli’s need for them to feed its factories in Italy.
The Iron and Steel Company revealed that the project will be shared by the Italian company Danieli by 51%. The Libyan company owns 49%, expecting to recover its capital within 8 years, after completing implementation work estimated at 3 and a half years.
The project will be localized within the Libyan Iron and Steel Company, where it will benefit from the infrastructure available there, in addition to the storage, handling and screening systems for raw materials.
Its operation will depend mainly on the use of Danieli’s EnergIron technology, which is a technology competing with the American Midrex technology. Danieli is one of three major international companies operating in the field of iron, steel, and metal industries, which are:
⁃Primetals, a subsidiary of the German company Siemens.
⁃German SMS Company (SMS)
⁃Italian Danieli Company (Danieli Co.)
The company revealed that the Italian company Danieli has a long history of cooperation with it, as it has implemented several projects with the Libyan Iron and Steel Company, in addition to ongoing cooperation in the field of supplying spare parts and technical services, including:
⁃Implementation of a steel bars factory with an annual production capacity of 400 thousand tons, which was opened in 1997.
⁃Implementation of a steel bars factory with an annual production capacity of 800 thousand tons, which was opened in 2018.
It is worth noting that this project comes within the second phase of the company’s general development plan approved in 2007, the first phase of which was implemented and completed with the opening of the Bar Rolling Mill 2 in November 2018.
