The Iron and Steel Company announced that it had signed a memorandum of understanding with its Italian counterpart, Daniele, to launch a project to implement a direct reduction plant to produce two million tons of iron.
The company mentioned that production will include two types of sponge iron and hot-molded iron on an annual basis, noting the localization of the factory within the Iron and Steel Company to benefit from the infrastructure and systems for storing, handling and screening raw materials.
The company stated that the project will be in partnership with Danieli, 51% for the Italian company and 49% for the Iron and Steel Company.
Regarding the economic feasibility of the project, the company considered that the production of various types of iron is required in the local and international markets, in addition to the company’s need to feed its factories in Italy.
The company expected to recover the project capital within 8 years after completing the execution period which is expected to take three and a half years.
According to the company, this step comes within the second phase of the company’s general development plan approved in 2007, the first phase of which was implemented and completed with the opening of Rolling Mill 2 in November 2018.
