Libya intends to become a supplier of direct reduced iron (DRI) in the Mediterranean basin and beyond with the announcement of a DRI complex based on MIDREX Flex® technology to be built in the Benghazi region. TOSYALI SULB Steel Industries, which was formed by TOSYALI and Libya United Steel Company for Iron & Steel Industry (SULB) to lead the development of the iron and steel sector in Libya, will immediately commence the first phase with construction of a 2.5-million-tonne cold DRI (CDRI) plant.

TOSYALI SULB will utilise MIDREX® technology similar to what equips the two DRI plants owned and operated by TOSYALI Algerie in Bethioua (Oran), Algeria. With MIDREX Flex®, the plants can operate initially with natural gas and transition to using hydrogen, as it becomes available, making them leading contributors to green steel production. The Libyan plant will supply CDRI to meet the needs of the nearby region. When this investment is completed, TOSYALI SULB will be one of the key suppliers of DRI in the world.

Fuat Tosyal?, Chairman of TOSYALI Holding, said: “We are excited to use our expertise in DRI plant operation and value-added steel production to transform the Libyan steel industry into an ecosystem that produces high-quality green steel products with low carbon emissions. At TOSYALI, we place environmental sustainability at the core of our operations and work tirelessly to develop innovative solutions that reduce carbon emissions. With MIDREX technology, we will leverage the flexible use of natural gas and hydrogen to support the production of low-carbon, high-quality steel, creating value for both the region and the world. As TOSYALI SULB, we are committed to leading the way in green steel production while building a sustainable future.”

Ahmed Gadalla, Chairman of Libya United Steel Company for Iron and Steel Industry (SULB), said: “TOSYALI SULB’s first project will greatly expand the DRI export capability of Libya and position the nation as a significant contributor to green steelmaking and decarbonization. This investment is not just a production facility but a strategic contribution to Libya’s economic development and industrial infrastructure.”

The DRI plant will be supplied by Midrex Technologies, Inc. (Midrex) and its consortium partner, Paul Wurth, part of SMS group, which supplied both HDRI (hot DRI)/CDRI plants for TOSYALI Algerie. TOSYALI 1 commenced production in November 2018 and TOSYALI 2 began production in December 2024.

K.C. Woody, President & CEO of Midrex, said: “We are thankful for TOSYALI’s trust in our company and our technology as we continue our partnership in another investment. Midrex is proud of our market leadership in the production of green iron and looks forward to conducting another project with TOSYALI. Midrex remains committed to helping our clients succeed in their decarbonization goals.”

Thomas Hansmann, Chief Technology Officer of SMS group, said: “Being part of this new project is a privilege for SMS group. It acknowledges the strong collaboration between our teams. This marks our third project with TOSYALI, highlighting our long-standing partnership. As we continue to turn metals green, we remain committed to advancing sustainable practices in the industry.”