The Libyan Iron and Steel Company (LISCO) recently signed a significant memorandum of understanding (MoU) with the renowned Italian company Danieli. This strategic partnership aims to launch a project that will implement a direct reduction plant.
- The project involves the establishment of a direct reduction plant.
- The factory is expected to produce an impressive two million tons of sponge iron and hot-molded iron annually.
- Sponge iron and hot-molded iron are in high demand both locally within LISCO and globally.
The project will be a joint venture between LISCO and Danieli, with the Italian company holding a majority stake of 51%, while LISCO retains 49%. Anticipating a swift return on investment, LISCO aims to recoup its capital within eight years following the completion of the implementation work, estimated to take three and a half years.
Located within the premises of the Libyan Iron and Steel Company, the factory will leverage existing infrastructure and benefit from advanced storage, handling, and screening systems for raw materials. Central to its operations will be the utilization of Danieli's cutting-edge EnergIron technology, renowned for its competitiveness with the American Midrex technology.
Danieli's involvement in the project underscores its longstanding partnership with LISCO, marked by successful collaborations in the past. Notably, Danieli has previously implemented steel bar factories with annual production capacities of 400 thousand tons and 800 thousand tons, in 1997 and 2018 respectively. This latest endeavor represents a continuation of their fruitful cooperation and further strengthens ties between the two companies.
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