Jindal Steel & Power Plans to Introduce Kobe Steel’s Midrex in New Iron Works in India

Jindal Steel & Power (JSPL), Indian major steel maker, plans to introduce Kobe Steel’s gas-based hot briquetted iron (HBI) plant, named Midrex, in its new iron works in Odisha, India. Midrex is expected to supply raw steel for the new iron works at 6 million tonnes per year. JSPL had introduced Midrex at its subsidiary in Oman, too. Kobe Steel’s iron making plant sales are increasing in emerging countries, including existent partnership with SAIL, Indian largest steel maker, to commercialize Kobe Steel’s new iron making plant, ITmk3, cooperatively.

JSPL plans to construct a new iron works in Odisha province and Jarkand province. Midrex can produce high quality HBI from low quality iron ore and reduce initial cost. JSPL also plans construction of another iron works with 6-million-tonne annual capacity in Bolivia. The firm may introduce Midrex in Bolivia where natural gas resource is abundant.

JSPL’s subsidiary in Oman, Shadeed Iron & Steel (Shadeed), has started trial production of Midrex at 1.5-million-tonne annual output capacity on December 5. Shadeed accelerated the test operation by about four months ahead than initially scheduled since steel demand is strong in Middle East and North Africa. In the areas, steel products’ supply is short by more than 12 million tonnes.

JSPL has 2 blast furnaces and directed reduced iron plant in India to produce semi-finished steels at 2 million tonnes per year and sponge iron at 1.3 million tonnes per year. The firm’s steel business revenue was 70.3 billion rupees in fiscal 2009.