Midrex, Kobe Steel’s subsidiary in the U.S., and Siemens of Germany jointly got an order for the construction of a reduced iron plant for 27 billion yen from Metalloinvest of Russia. The plant will be constructed in Gubkin in western part of Russia and is scheduled to start operation in 2014. It will have an annual production capacity of 1,800,000 tons. The plant that Midrex will construct is the third reduced iron plant of Metalloinvest in Gubkin.
A blast furnace has an annual production capacity of over 3,000,000 tons, while a reducer iron plant has an annual production capacity of about 1,000,000 tons. Midrex, however, developed the technology to increase the annual production capacity to 1,800,000 tons. Unlike a blast furnace, a reduced iron plant does not need a facility to process iron ores and coals. Thanks to its low initial investment, demand for a reduce iron plant is growing in the Middle East and Russia blessed with natural gas resources.
The reduced iron plant Midrex constructed in Oman