On Tuesday, the Libyan Iron and Steel Company signed a memorandum of understanding (MoU) with Italian steelmaking company Danieli to launch a direct reduction plant aimed at producing two million tons of sponge iron and hot-briquetted iron annually. This strategic partnership marks a significant advancement in Libya’s industrial capabilities.
The announcement was made on the company’s Facebook page, detailing that the new facility will be integrated within the existing infrastructure of the Libyan Iron and Steel Company. This integration will utilize the company’s current systems for the storage, handling, and screening of raw materials, maximizing efficiency and leveraging existing capabilities.
The output from this new venture—both sponge and Hot Briquetted Iron (HBI) iron—is highly sought after in both local and international markets, including by Danieli to supply its manufacturing operations in Italy.
Danieli holds a majority stake of 51% in the joint venture, with the Libyan Iron and Steel Company owning the remaining 49%. The project is projected to recover its investment within eight years following a construction period estimated at 3.5 years. It will predominantly employ Danieli’s EnergIron technology, positioning it as a competitor to the U.S.-based Midrex technology.
Danieli is recognized as one of the global leaders in the iron and steel sector, alongside other industry giants such as Primetals Technologies, affiliated with Siemens of Germany, and Germany’s SMS Group.
The Libyan Iron and Steel Company also noted its historical collaborations with Danieli, which include the delivery of a steel rebar factory with a capacity of 400,000 tons per year launched in 1997, and a steel rod factory with a capacity of 800,000 tons per year inaugurated in 2018.
This new project is a continuation of the Libyan company’s long-term development strategy, initially laid out in its 2007 general development plan. The first phase of this plan culminated with the opening of Bar Rolling Mill 2 in November 2018, further underscoring the company’s growth trajectory and commitment to expanding its production capabilities in alignment with global industry standards.
