Kobe Steel Receives Order for MIDREX Direct Reduction Plant in Bahrain

Kobe Steel announced on Wednesday the firm received an order for MIDREX Direct Reduction Plant from Bahrain’s United Steel Company (SULB). The plant’s capacity is 1.5 million tonnes per year. This is the first order receipt in Bahrain.

The plant will be constructed the Hidd Industrial Area of Bahrain, next to an iron ore pellet plant of Gulf Industrial Investment constructed by Kobe Steel. The contract will become effective in July 2010. The plant is scheduled to complete and start operation in early 2013. Under the full turnkey project, Kobe Steel is responsible for the design, equipment supply, construction, and start-up of the facility.

Global production of direct reduced iron hit record 68 million tonnes in 2008. The production decreased in 2009 but turned upward in 2010. Kobe Steel and Midrex are cooperatively working to penetrate MIDREX Direct Reduction Process and the next-generation ITmk3 iron making process to provide stable sources of clean iron units.

This is the second order of MIDREX Plant for Kobe Steel. In December 2009, Midrex Technologies, a wholly owned subsidiary of Kobe Steel, received a contract of MIDREX technology for a plant in India. MIDREX Process has adopted to 70 projects worldwide so far.