On December 1st, 2021, Sinosteel Equipment & Engineering Co., Ltd. (Sinosteel MECC) concluded a USD 1.096 billion EPC contract with TOSYALI Group to expand the capacity of its steel complex in Algeria.  Sinosteel MECC will be the general contractor of the fourth stage, after delivering the 2.3mtpa DRI-based steel complex in 2018.

The contract includes a 2.5mpta direct reduction iron (DRI) unit, a 2.3mtpa EAF steelmaking workshop, and a 1800mm hot strip rolling line. Sinosteel MECC will provide engineering, equipment and material, construction, installation and commissioning. The construction of DRI will last 30 months, while steelmaking and hot rolling will be finished within 24 months.

As the third low-carbon complex constructed by Sinosteel MECC overseas, it will greatly enrich the customer's product category and improve its competitiveness in the Mediterranean and surrounding area after starting production. By then, TOSYALI Algeria will be the largest steel producer in North Africa.

The project will employ gas-based shaft furnace DRI – EAF steelmaking process, which greatly reduces pollution and energy consumption, and significantly improves the green, efficient and clean steel production.

the 2.tmtpa DRI plant for Tosyali Algeira is in production

Natural gas will be used as supplementary gas source for DRI. After the reduced gas is washed and compressed, it will be reformed with supplementary natural gas to realize carbon recycling.

The proportion of hydrogen in the reducing gas exceeds 55%, and the carbon emissions per ton of product are approximately 0.5 to 0.6 tons. Compared with the ironmaking process that uses coal as the reducing agent, DRI can reduce carbon emissions by about 60%. With HDRI, electricity consumption per ton of steel will be reduced from 550kWh to 400kWh, melting time can be shortened by 17%, and EAF steel production capacity can be increased by more than 17%. This is also the fourth DRI project built by Sinosteel MECC in foreign countries.

Independently developed Chinese hot strip continuous rolling technology will be applied. The rolling line is equipped with AWC technologies for vertical mill, work roll high strength bending and shifting system as well as VCS work roll for finishing stands, coil box integrated for customer's specific product type demand, strip width, thickness and flatness auto-control as well as upper and lower surface detecting system. Besides, smart rolling systems including online quality monitoring, energy optimal management and unmanned overhead crane management are installed. 

Mr. Lu Pengcheng (Chairman of Sinosteel MECC) witnessed the signing ceremony via video conference. Mr. Hua Guanglin, General Manager of Sinosteel MECC (second from right), Mr. Fuat TOSYALI, Chairman of TOSYALI Group (third from left), and Mr. Suhat KORKMAZ, President of TOSAYLI Group (second from left) took the photo after the signing ceremony

Wire and rod rolling project of TOSYALI successfully completed by Sinosteel MECC

Sinosteel MECC has established long-history cooperation with TOSYALI Group, by accomplishing the 950mm hot strip rolling project, wire and rod rolling project, and slab continuous casting project in OSMANIYE, as well as the spiral welded pipe project, wire and rod rolling project and 2.3mtpa DRI-based steel complex in Algeria.

the 2.3mtpa DRI-based steel complex for Tosyali Algeria

Mr. Hua Guanglin said at the signing ceremony:" We've known each other as very close friends despite distance and we feel like neighborhoods even there are actually thousands of miles between us. Sinosteel MECC cherishes this precious friendship with Tosyali, it is fortunate to witness and participate in the rapid development of Tosyali Group and to strengthen trust and achieve win-win cooperation.

Hua Guanglin added: "The new cooperation in the epidemic time shows TOSYALI's trust and recognition to us, and it is a good opportunity for us to use our strengths to help TOSYALI to achieve high-quality development, especially in the construction of global ecological civilization. Sinosteel MECC will overcome difficulties and build a showpiece project through life-cycle green and low-carbon solutions and contribute to TOSYALI’s sustainable development ."

“The Algeria steel complex is very important to the sustainable development of the group. It also shows our full trust in Sinosteel MECC to build the largest project since our cooperation, and I believe it will be a milestone.” said Fuat, who also expressed his gratitude toHua Guanglin for leading the team to the face-to-face meetings in Turkey, especially during this most difficult time worldwide.

As one of the first Chinese engineering companies to practice low-carbon metallurgical projects, Sinosteel MECC are capable of providing full-process systematic service and technology integration to support the green development of the iron and steel industry.