Benghazi Set to Host One of the World’s Largest Green Steel

Benghazi is set to play host to a significant new industrial partnership following the announcement of a landmark deal between Turkish steel producer Tosyali and Libya United Steel Company (SULB Libya).

Together, the two companies plan to build what is expected to be the largest direct reduced iron producing facility in the world. The project has been developed under the leadership of Ahmed Gadalla, Chairman of SULB Libya. Gadalla has described the project as a vital step towards strengthening Libya’s industrial sector.

The project will be built in Ras Al-Mangar, east of Benghazi. It is seen by many as an encouraging sign for Libya’s industrial future, representing a vote of confidence in the country’s broader economic potential.

Covering around 380 hectares, the facility is expected to produce up to 7.5 million tonnes of direct reduced iron per year. In turn the facility will considerably strengthen Libya’s position as an increasingly important global producer of steel.

Beyond its size and production capacity, the project will also see a concerted focus on sustainability. As industries around the world look for cleaner and more efficient ways to operate, the planned complex has developed plans to reduce its environmental impact. Specifically, the project will set the ambitious aim reduce energy consumption by 25% and carbon emissions by 30% compared with more traditional steel production methods.

The project reflects a broader move towards greener manufacturing practices, which are increasingly becoming the benchmark for heavy industry. This, according to industry observers, comes at a time when Libya has the opportunity to gradually expand its role in international industry and export markets.

Gadalla has repeatedly emphasized the importance of combining industrial growth with long-term sustainability and economic development. He has spoken previously about his desire to embed more sustainable practices within a range of economic projects he envisions for his homeland.

The project’s economic impact is expected to be substantial, anticipated to create around 7,000 jobs throughout the construction and operational phases of the project. Many of these will be high-skilled, technical jobs providing employees with long-term, high-quality employment.

Specifically, the project’s commercial opportunities are expected to especially benefit engineers, technicians, contractors and a range of local businesses that will be active throughout the development.

The project is also expected to trigger fresh investment across several sectors, including transportation, logistics, construction, maintenance and professional services.

The project is also expected to have long-term effects well beyond Benghazi, representing a significant strengthening of Libya’s industrial activity. A dedicated export port is also planned as part of the project.

The port is anticipated to become a vital link between Libyan industry and international markets. It will make the movement of Libyan-made products abroad more straightforward whilst strengthening the country’s transport and logistics network. It will see Libyan-made products reach customers far beyond the country’s borders.

Commercial production is planned to commence in May 2027, with the first export shipments expected to follow a few months afterwards. Once up and running, the Ras Al-Mangar complex will expand Libya’s industrial base whilst making a significant contribution towards the country’s wider economic growth.

It will also help boost international confidence in the strength of Libya’s manufacturing capabilities, helping boost the export of Libyan-made products whilst attracting further foreign direct investment.

Gadalla, in reflecting on Libya’s broader industrial position, points to the importance of attracting long-term, reliable investment. This, he has argued, will ensure the creation of long-term, sustainable economic opportunities for future generations of Libyans.

References:
1.“Tosyali Sulb Steel Industries Joint Company.” Tosyali Holding,
www.tosyaliholding.com.tr/en/our-scope-of-activity/group-companies/international-subsidiaries/tosyali-sulb-steel-industries-joint-company