TOSYALI SULB awards contract for DRI complex to Midrex and SMS Group

Libya is positioning itself as a key supplier of direct reduced iron (DRI) within the Mediterranean region and globally with the announcement of a new DRI complex in the Benghazi area. TOSYALI SULB Steel Industries, a joint venture between TOSYALI and Libya United Steel Company for Iron & Steel Industry (SULB), has awarded the contract for the project to Midrex Technologies, Inc. and its consortium partner, Paul Wurth, part of SMS group.

The first phase of the project involves the construction of a 2.5-million-ton cold DRI (CDRI) plant, utilizing MIDREX Flex® technology. This advanced technology allows for the initial use of natural gas, with the capability to transition to hydrogen as it becomes more accessible. This flexibility is expected to support green steel production and contribute to decarbonization efforts.

Fuat Tosyalı, Chairman of TOSYALI Holding, highlighted the company’s strategic vision: “We are excited to use our expertise in DRI plant operation and value-added steel production to transform the Libyan steel industry into an ecosystem that produces high-quality green steel products with low carbon emissions. At TOSYALI, we place environmental sustainability at the core of our operations and work tirelessly to develop innovative solutions that reduce carbon emissions.”

The new DRI plant will mirror the technology and approach used in TOSYALI Algerie's plants in Algeria, which have demonstrated success in utilizing MIDREX Flex® technology to enhance operational efficiency and reduce environmental impact.

Ahmed Gadalla, Chairman of Libya United Steel Company (SULB), emphasized the broader impact of the project: “TOSYALI SULB’s first project will greatly expand the DRI export capability of Libya and position the nation as a significant contributor to green steelmaking and decarbonization. This investment is not just a production facility but a strategic contribution to Libya’s economic development and industrial infrastructure.”

The involvement of Midrex and SMS group in this project builds on a long-standing partnership with TOSYALI. Both companies have previously contributed to the successful development of TOSYALI Algerie's HDRI/CDRI plants, with production commencing in 2018 and 2024, respectively.

K.C. Woody, President & CEO of Midrex, expressed his enthusiasm for the continued collaboration: “We are thankful for TOSYALI’s trust in our company and our technology as we continue our partnership in another investment. Midrex is proud of our market leadership in the production of green iron and looks forward to conducting another project with TOSYALI.”

Thomas Hansmann, Chief Technology Officer of SMS group, underscored the strategic alignment between the partners: “Being part of this new project is a privilege for SMS group. It acknowledges the strong collaboration between our teams. This marks our third project with TOSYALI, highlighting our long-standing partnership. As we continue to turn metals green, we remain committed to advancing sustainable practices in the industry.”

The new DRI complex is expected to boost Libya’s capacity to produce and export green steel, aligning with global trends toward sustainability and reduced carbon emissions. The project not only strengthens Libya’s industrial infrastructure but also enhances its role in the international steel market as a competitive and sustainable supplier.

Source and Photo: SMS Group