The Plant

The direct reduction plant = largest plant of its type in the world

In October 2016, after around two-and-a-half years of construction, the world’s largest and most state-of-the-art plant of its type was officially opened.With a basis investment ofEUR 550 million (USD 740 million), the plant is the largest investment ever made in the US by an Austrian company. Each year it will produce two million tonnes of high-quality HBI (Hot Briquetted Iron, or sponge iron), a sophisticated pre-material used in steel production. The plant is already regarded as an environmental benchmark and is an important first step on voestalpine’s path of reducing CO2 emissions in steel production.

voestalpine invested in a natural gas based direct reduction plant with an annual capacity of 2 million metric tons of Hot Briquetted Iron (HBI). HBI is a high-grade feedstock for the production of high-quality steel grades.

Around 40 percent of the production volume will be shipped to our existing Austrian steel mills in Linz and Donawitz for the production of sophisticated steel grades. The remaining 60 percent of the production volume goes to external partners, with the corresponding offtake agreements already having ensured full capacity utilization for the next four years.

Facts & Figures

  • Basis-investment: $740 million
  • Calculated additional economic impact to the region: $1 billion
  • Start of construction: 2013, Groundbreaking April 2014
  • Opening: October 26, 2016
  • Annual production: 2 million tons of HBI (Hot Briquetted Iron)

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