A memorandum of understanding was signed on Monday (15 April) between the state Libyan Iron and Steel Company (LISCO) and Italy’s Danieli. The agreement entails the construction of a direct reduction plant to produce two million tons of sponge iron and hot-moulded iron annually.
LISCO said the factory will be within its present grounds, where it will benefit from the infrastructure available there, in addition to the systems for storing, handling and screening raw materials.
It explained that the project’s two products, both sponge and hot-moulded iron, are in demand in the local market, as well as in international markets, in addition to Danieli’s need for them to feed its factories in Italy.
The project will be a joint venture with 51 percent to Danieli and 49 percent to LISCO.
LISCO revealed that the project is economically viable, and it is expected to recover its capital within 8 years, after completing the implementation work estimated at 3.5 years. Its operation will depend mainly on the use of Danieli EnergIron technology, which is a competing technology for the American Midrex technology.
Danieli Company is one of three major international companies operating in the field of iron, steel and metallurgical industries, LISCO added.
It reminded that the Italian company has a long history of cooperation, as it has implemented several projects with LISCO, in addition to ongoing cooperation in the field of supplying spare parts and technical services.
These include: The implementation of a steel skewers factory with an annual production capacity of 400 thousand tons, which was opened in 1997.
The implementation of a steel bars factory with an annual production capacity of 800 thousand tons opened in 2018.
It should be noted that this project comes within the second phase of the company’s general development plan approved in 2007. The first phase was implemented and completed with the opening of the Bar Rolling Mill 2 in November 2018.
