A memorandum of understanding between the Libyan Iron and Steel Company and the Italian company Danieli:
On Monday, April 15, 2024, a memorandum of understanding was signed between the two companies.
Launching a project to implement a direct reduction plant, the plant will produce two million tons of sponge iron and hot-molded iron annually. The factory will be localized within the Libyan Iron and Steel Company, where it will benefit from the infrastructure available there, as well as the systems for storing, handling, and screening raw materials.
The project’s products, whether sponge or hot-molded, are in demand in the local market as well as in international markets, in addition to the company’s need
Daniele supplies them to its factories in Italy.
The project will be shared between the Italian Danieli Company, with a 51% share, and the Libyan Iron and Steel Company, with a 49% share.
The project is economically viable, and its capital is expected to be recovered 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 technology that is competing with the American Midrex technology.
Danieli Company is one of the three major international companies operating in the Iron Industry.
Steel and metal industries, namely:
- Primetals is a subsidiary of the German company Siemens.
- German company SMS
- Italian company Danieli (Danieli Co).
The Italian company Danieli has a long history of cooperation. It has implemented several projects with the Libyan Iron and Steel Company and is currently cooperating in supplying spare parts.
Spare parts and technical services, including:
- Implementation of a steel bars factory with an annual production capacity of 400 thousand tons, opened in 1997.
- 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 is part of the second phase of the company’s general development plan, which was approved in 2007. The first phase was implemented and completed with the opening of Bar Rolling Mill 2 in November 2018.
The structure of the Libyan Iron and Steel Company has a foundation.