Nippon Steel Corp. and Kobe Steel Ltd. have started construction of a plant that will be capable of recycling steel mill dust into direct reduced iron. The two companies have decided to carry out the project through a joint venture and have begun preparations to start the new business.
The joint venture plans to produce iron units by recycling steel mill dust, a byproduct from the steelmaking process. Due to the sharp increase in steel demand centered on emerging countries, raw material prices have escalated. This business would allow the company to secure competitive iron units in a business environment where volatile raw material prices appear to be the norm.
Through the joint business, both Nippon Steel and Kobe Steel will be able to promote steel dust recycling and zero emissions in the local region beyond the framework of each individual company by integrating the process technology established by Kobe Steel and operation know-how established by Nippon Steel on the recycling and effective use of steel dust.
In addition to the new business, Nippon Steel will be use its existing dust recycling plants at its Hirohata Works plant in Japan to recycle steel mill dust generated from the steelmakers, including alliance partners, located in the Kansai region.
Nippon Steel and Kobe Steel will use steel mill dust and iron ore fines from their steel mills as raw materials to recycle iron into direct reduced iron (DRI) and recover zinc.
The joint venture will be called Nittetsu Shinko Metal Refine Co. Ltd. Nippon will control 70 percent of the venture, while Kobe Steel will control the remaining 30 percent. The facility will be located at Nippon Steel Hirohata Works in Himeji, Japan.
The facility will use Kobe’s FASTMET process. The DRI will be supplied to Nippon Steel and Kobe Steel, with a portion also going to Sanyo Special Steel Co., Ltd., a group company of Nippon Steel.
Capacity of the facility will be around 220, 000 metric tons per year. The facility is expected to start by October 2011.
This joint business will be a countermeasure for the decreasing quality and higher prices of raw materials. Nippon Steel and Kobe Steel intend to smoothly go forward with the new joint business, while continuing to actively strengthen and promote their cooperative relationship.