Kobe Steel and Midrex Promote Reduced Iron Plant in Emerging Countries

Mr. James D. McClaskey, president and CEO of Midrex Technologies, Inc, which is Kobe Steel’s 100% subsidiary for plant engineering of direct reduced iron, explained its global strategy to Japan Metal Bulletin to expand overseas business network by following users’ needs and promoting technical development.

Mr. McClaskey overviewed global production of reduced iron at 69 million tonnes in 2010, up by 6% from 2009, and said the production could increase by 6-8% year-on-year in 2011. He said the global production is forecasted to double to 120 million tonnes in 2020 with the demand growth in China, India, Middle East and Russia.

He explained Midrex currently accepted 5 plant orders in Oman, Pakistan, Egypt, India and Bahrain. Construction works have already started for the plants ordered by Jindal Steel & Power (JSPL) in India and by SULB in Bahrain. These 5 plants’ production capacity is 8 million tonnes per year.

Mr. McClaskey said Midrex introduces its new technologies, HOT LINK system in Oman and Egypt, and MXCOL system in India. HOT LINK enables reduced iron input to an electric furnace under high temperature of 600 Celsius degrees. This system contributes to productivity improvement by avoidance of temperature lowering, he explained. MXCOL system utilizes synthesis gas generated from coal gasification installation as reducing agent. Mr. McClaskey said MXCOL enables utilization of Indian high-ash coal and iron ore as alternative for imported natural gas.

As for overseas business strategy, Mr. McClaskey suggested Midrex should establish a next office within several months, following London office established in 2010. The firm expects for business chances in India, China and Russia. Mr. McClaskey appealed Midrex plants can be introduced even in the country without natural gas resource by combination of Midrex and MXCOL technologies.