In a significant move that promises to reshape the steel industry landscape in North Africa, Turkish steel giant Tosyalı has inked a deal with Libya United Steel Company SULB to construct a state-of-the-art Direct Reduced Iron plant in Benghazi, Libya. This ambitious project marks Tosyalı's latest expansion in its growing portfolio of international investments, following successful ventures in Algeria, Senegal, Angola, and Spain.
The agreement between Tosyalı and SULB has led to the formation of a new entity, Tosyalı-SULB, which will oversee the development and operation of the Benghazi plant. This joint venture represents a significant step forward in Tosyalı's strategy to establish a strong presence along the African Mediterranean coast, an area the company has identified as a priority investment region.
At the heart of this project is the planned DRI plant, which will boast an impressive total capacity of 8.1 million metric tons. The facility will be equipped with cutting-edge MIDREX Flexi DRI technology, setting a new standard for efficiency and environmental responsibility in the region. In a nod to the growing emphasis on sustainable production methods, the plant will utilize hydrogen as a clean energy source, positioning it at the forefront of the green steel revolution.
The project is set to unfold in three phases, with the initial phase targeting a capacity of 2.7 million metric tons. This phased approach allows for careful implementation and scalability, ensuring that the plant can meet growing demand while maintaining operational excellence. Beyond serving the immediate region, the Benghazi plant is poised to become a key supplier of green steel to European markets, potentially reshaping trade dynamics in the Mediterranean basin.
Fuat Tosyalı, chairperson of Tosyalı Holding, emphasized the company's commitment to creating positive economic, environmental, and social impacts in its host countries. He expressed enthusiasm about bringing Tosyalı's expertise in quality steel production to Libya, highlighting the company's focus on advanced technology, innovation, and research and development. Tosyalı's vision extends beyond mere production; it aims to lead the transformation of the global steel industry towards a high-quality, low-carbon future.
The significance of this project extends beyond its impressive production capabilities. Ahmed Gadalla, chairperson of SULB, framed the agreement as a crucial step in the industrialization of Benghazi and the development of Libya's steel sector. He emphasized the potential for this investment to elevate Libya's standing in the global steel production league, particularly in the realms of green steel and decarbonization efforts.
This venture aligns with Tosyalı Holding's broader expansion plans, which include substantial annual investments of $1.5 billion to $2 billion in global growth initiatives. The company's strategy encompasses not only greenfield projects like the Benghazi plant but also potential acquisitions and partnerships in Europe and the Americas. This comprehensive approach underscores Tosyalı's ambition to become a truly global player in the steel industry, with a particular focus on sustainable and innovative production methods.
