Major Industrial Project to Mobilize $2.5 Billion in Eastern Libya
A large-scale industrial project is set to mobilize approximately $2.5 billion in investment in eastern Libya. Developed in Benghazi by the Turkish-Libyan joint venture Tosyali Sulb Steel Industries, the complex is scheduled to commence commercial production in early 2028. This marks a new investment by the Turkish steel group Tosyali Holding, which already operates in Turkey, Algeria, Senegal, Angola, and Spain.
Production Focus: Low-Carbon DRI
The facility will primarily focus on the production of Direct Reduced Iron (DRI), a key input in steel manufacturing. DRI can be produced using natural gas, offering a significantly lower carbon footprint compared to traditional coal-based steelmaking processes.
- Total Target Capacity: 8.1 million tons per year
- Phase 1 Capacity: Approximately 2.7 million tons per year
Market Strategy and Export Potential
According to Ahmed Gadalla, President of Tosyali Sulb, nearly 90% of the production is expected to be exported. The complex will also produce rebar and pipes specifically for the domestic Libyan market.
The strategic location of Benghazi on the Mediterranean coast provides a significant advantage for serving both European and African markets. The project aligns with the global steel industry’s shift toward lower-carbon processes, driven by increasingly stringent environmental regulations, particularly in the European market.
Infrastructure and Partnerships
- Gas Supply: Agreements for natural gas supply required for Phase 1 have been finalized.
- Energy: A dedicated power plant is under construction to meet a portion of the complex’s energy needs.
- Partnership: The project, first announced in 2024, is a collaboration between Turkish steelmaker Tosyali Holding and the Libya United Steel Company for Iron and Steel Industry (SULB).
