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Publish Date : 06-Jul-2013

After deciding to locate the plant on the La Quinta Trade Gateway in San Patricio County near Corpus Christi, Texas (USA) and signing the memorandum of understanding with its first customer, Mexican company AHMSA, voestalpine has taken another step toward the realization of the planned direct reduction plant. As the technology decision was made in favor of the MIDREX process, a supply agreement was signed yesterday evening with Siemens Industry Inc. and its consortium partner, Midrex Technologies Inc. This means that, contingent on the final official permits, the green light has been given for the construction of the new direct reduction plant.

The plant on Corpus Christi Bay will be designed for an annual capacity of two million tons of high-quality HBI (Hot Briquetted Iron). The Siemens-Midrex consortium will provide engineering, the mechanical and electrical equipment, and consulting services for the plant. Total investment volume will come to around EUR 550 million and, in addition to the MIDREX facility, will include comprehensive infrastructure improvements for the project location, particularly the necessary harbor facilities. The launch of production is planned for early 2016; once it is up and running, the plant will have around 150 employees. "With Siemens and Midrex, we will have highly competent partners with a tried and tested technology at our side. By choosing a U.S. partner company, we are also making a significant contribution to the desired local value added," stated Wolfgang Eder, CEO and Chairman of the Management Board of voestalpine AG.

Top-tier technology for the voestalpine direct reduction plant

The direct reduction plant with its state-of-the-art technology will provide the Austrian steel production sites in Linz and Donawitz with access to cost-effective and environmentally-friendly HBI, thus ensuring their competitiveness in the long term. The property covers an area of two square kilometers, is situated in a strategically advantageous position on Corpus Christi Bay, and has direct deep-sea access to the Gulf of Mexico.

The MIDREX facility will produce high-quality HBI ("sponge iron") from iron ore pellets, which is comparable to the highest quality scrap or pig iron and is therefore an excellent pre-material for the manufacture of crude steel. In contrast to using purely coke-based blast furnaces, the planned direct reduction plant will only use natural gas, which is much more environmentally friendly, as the reducing agent. The use of natural gas in the reduction process will help to significantly improve the carbon footprint of the voestalpine Group and will be an important step in the achievement of the Group's ambitious internal energy efficiency and climate protection objectives.

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