The industrial complex being developed in Benghazi, eastern Libya, is expected to attract approximately $2.5 billion in investment. The project, developed by a Turkish-Libyan joint venture, is planned to produce direct reduced iron (DRI), which is used in steelmaking.
The facility, located in Benghazi on the Mediterranean coast, will produce DRI using natural gas. DRI is an important input in steel production, and using natural gas instead of coal in its production results in lower carbon emissions compared with conventional steelmaking.
2.7 million tons of DRI to be produced in the first phase
The project, announced in 2024, has a total designed capacity of approximately 8.1 million tons of DRI per year.
Natural gas supply arrangements for the first phase have reportedly been completed, with annual DRI production of approximately 2.7 million tons planned during this phase. Commercial production is expected to begin in early 2028.
Tosyali Sulb Chairman Ahmed Gadalla said that approximately 90% of the production is planned to be exported. The complex will also include rebar and pipe production aimed at the Libyan domestic market.
Project developed by Tosyali and SULB partnership
The facility in Benghazi is being developed by Tosyali Sulb Çelik Sanayi, a joint venture between Istanbul-based Tosyali Holding and Libya United Steel Industrial Company (SULB).
The project stands out as one of the largest economic development projects being carried out in the area controlled by military commander Khalifa Haftar.
A dedicated power plant is also being constructed to meet most of the complex’s electricity needs.
The facility’s location in Benghazi is intended to provide access to both African markets and Europe via Libya’s Mediterranean coast.
Source: Reuters
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