A groundbreaking collaboration between the Libyan Iron and Steel Company (LISCO) and Italy’s Danieli is set to revolutionize the iron and steel industry. The signing of a memorandum of understanding on Monday marked the beginning of an ambitious project to construct a direct reduction plant within LISCO’s existing grounds, capable of producing two million tons of sponge iron and hot-moulded iron annually.
LISCO highlighted the strategic location of the factory, which will leverage the existing infrastructure and systems for handling raw materials. The demand for both sponge and hot-moulded iron in local and international markets, as well as for Danieli’s own operations in Italy, underscores the significance of this joint venture.
With a majority stake of 51 percent for Danieli and 49 percent for LISCO, the project is expected to be economically viable, with a projected capital recovery within 8 years of operation. The adoption of Danieli EnergIron technology will be central to the project’s success, positioning it as a competitor to the established American Midrex technology.
LISCO emphasized the long-standing partnership with Danieli, citing past successful collaborations in the iron and steel sector. The upcoming project is part of LISCO’s second phase of development, following the successful completion of the Bar Rolling Mill 2 in 2018.
As the iron and steel industry undergoes rapid evolution, the LISCO-Danieli partnership represents a significant step towards innovation and sustainable growth. The project’s completion is anticipated to have far-reaching implications for both companies and the broader market.
