Libya: Turkish steel conglomerate Tosyalı Holding has announced the signing of an agreement with Libya's United Steel Company to set up a decarbonated iron and steel plant in the city of Benghazi

Turkish steel conglomerate Tosyalı Holding announced in a press release published on Monday 22 July 2024 that it had signed an agreement with Libya’s United Steel Company for the Iron and Steel Industry (SULB) to set up a decarbonised iron and steel plant in the eastern city of Benghazi.

The plant will be based on the direct reduction technique, which is a set of processes for obtaining iron and steel from iron ore by reducing iron oxides without melting the metal, using either hydrogen or carbon monoxide derived from natural gas or coal.

The industrial unit to be built in Libya will run on clean hydrogen to produce carbon-free iron and steel to meet the needs of markets in North Africa and Europe. It will eventually have a total production capacity of 8.1 million tonnes a year.

‘We are delighted to increase our investments on the Mediterranean coast of Africa. By focusing on value-added steel based on local production, our regional investments have a positive economic, environmental and social impact by promoting value creation, employment, development and welfare in the countries where we operate,’ said Tosyalı Holding chairman Fuat Tosyalı, quoted in the statement.

‘We are proud to take a crucial step towards the industrialisation of Benghazi and Libya and the development of the steel industry by partnering with Tosyalı. This agreement will enable the two groups to take a major step forward and strengthen the economic ties between Libya and Turkey’, said Ahmed Gadalla, CEO of Libya United Steel Company for Iron and Steel Industry.

In addition to its domestic market, Tosyalı Holding operates in Algeria, Senegal, Angola and Spain.