The United Libyan Company for Iron and Steel Industries signed an agreement with the Turkish company “Tosyali” to establish a direct reduction iron (DRI) plant in Benghazi.

The company explained through a statement on its official Facebook account that this facility will be part of an integrated iron and steel plant, with a production capacity of up to 8.1 million tons annually, noting that it will use MIDREX Flexi DRI technology in the facility, which will be powered by hydrogen, making it a green facility for the environment.

The two companies plan to establish a new company called “Tosyali – Solb” based in Benghazi, which will undertake the development of the green steel project in Libya, which includes a series of important investments, which contribute significantly to the development of the iron and steel industry in Libya.

The integrated iron and steel plant is scheduled to be implemented in 3 phases: The capacity of the first phase reaches 2.7 million tons annually, with expectations that it will meet the green steel needs of both the neighboring region and Europe.

The Chairman of the Board of Directors of Tosyali Group, Fouad Tosyali, said, “The new investment in Libya comes within the strategy of expanding the company’s investments along the Mediterranean coast, especially in Africa, which is one of the priority investment areas.”

Tosyali stressed that the company aims to create a positive economic, environmental and social impact in the countries in which it invests.

He said: “We will be very happy to transfer our knowledge and experience in producing green steel to Libya through this new complex, for which we have completed ground surveys and engineering studies, and its construction and assembly will begin in the coming days.”

For his part, Chairman of the Board of Directors of the United Libya Steel Manufacturing Company, Ahmed Jadallah, praised the agreement as an important step towards industrialization in Benghazi and the development of the green iron and steel sector in Libya.

Jadallah said: “The agreements we signed constitute a big step for the future of the two groups and will bring Libya and Turkey closer economically.”

He pointed out that “this investment, which will enable Libya to take its place as an important player in the global steel production association, will also have a special place with regard to green steel and decarbonization.”