Egypt

EL-DIKHEILA STEEL PLANT EXPANSION, EGYPT (2002)

A third Midrex Direct Reduction Module supplied to Alexandria National Iron & Steel Company S.A.E. (ANSDK) in the El-Dikheila steel plant 15km west of Alexandria, Egypt, has been in full production since it began operating in Feb 2000, producing 94.3% metalised direct-reduced iron (DRI). The module also includes a new hot rolling mill extension.

ANSDK awarded Kobe Steel and Tomen Corporation a $105 million (13 billion-yen) order in December 1997 to build the module at El-Dikheila. The latest facilities allow the steelmaker to expand into flat products at higher output rates. Previously, it was solely a bar and wire-rod producer. The plant, with a capacity of 800,000 tonnes/year of DRI and 160,000 tonnes/year of flat steel products was completed ahead of schedule.

ALEXANDRIA NATIONAL IRON & STEEL COMPANY

ANSDK is an Egyptian-Japanese joint venture, owned 87% by 11 Egyptian public-sector companies, 10% by a Japanese consortium (comprising of NKK owning 5%, Kobe Steel Ltd. owning 3% and Tomen Corporation owning 2%), and 3% by International Finance Corporation. Originally completed in 1986, ANSDK's integrated DRI (directly reduced iron) steelworks at El Dikheila, is one of Egypt's key economic development projects.

EL-DIKHEILA STEEL COMPLEX EXPANSION

ANSDK has been working on a series of works expansion programmes. Construction of the El-Dikheila steel complex was first completed in 1986 and by 1998, a Midrex wire rod was also integrated into the complex, increasing the total output of the complex. Due to increase in demand for steel and DRI, they have expanded the El-Dikheila complex with the construction of a third Midrex DRI based steel rolling module, increasing the total capacity of DRI produced to 2.5million tonnes/year.

PROJECT TIMESCALE

ANSDK awarded Kobe Steel Ltd and Tomen Corporation the order to build the Midrex Direct Reduction Module at El-Dikheila in December 1997, and construction began during the first quarter of 1998. Twenty two months after the contract was signed, the first hot-strip coil was produced at the compact-strip production plant. This was eight weeks sooner than planned (February 2000 instead of April 2000). SMS Demag AG built the facility.

MIDREX DRI MODULE

The latest example of expansion of the complex is the third Midrex DRI module in El-Dikheila. The first module, installed in 1986, produced 716,000 tonnes/year, and the second completed by 1997 had a capacity of 800,000 tonnes/steel, making a total of 1.67 million tonnes/ year of DRI. The third module completed by 2000, is estimated at having a nominal capacity 800,000 tonnes/year and will produce DRI at a purity level of 94.3%. Total output of DRI for the complex will be around 2.5 million tonnes/year.

In the first construction phase, the ANSDK plant is designed for a capacity of 800,000 tonnes/year and consists of a DRI-based electric steel plant, a compact hot-rolling mill with skin press mill, a pickling line and a coil service centre. ATD's scope of supplies includes power supply equipment, drive systems and automation as well as water treatment and lighting systems for the hot rolling mill.

Already producing bar and wire rod of various calibres and types in high capacities, ANSDK is now expanding in flat products and the third module will contribute a source of iron needed for producing high quality steel sheet from electric arc furnaces (EAF). The 160 tonne EAF for the HR coil line is charged with 90% DRI and 10% scrap. This new EAF has a capacity of 300,000 tonnes/year of flat steel products, increasing the total steel output of the El-Dikheila complex to around 1.5 million tonnes/year.

LEAD CONTRACTORS