Tenova plans to build DR plants in the US and the Middle East

Tenova HYL is in talks with steelmakers in the United States and the Middle East to build factories that produce raw materials using large quantities of natural gas to produce high quality steel.

The company specializes in the construction of DR plants from iron ore using natural gas to make high-quality steel mainly in electric arc furnaces. In addition, the highest quality profile pipe in the USA is produced here.

The abundance of shale gas makes investments in this production more attractive to US steel producers. Pablo Duarte commercial vice president of Tenova HYL said the group's Argentina division is finalizing construction talks with BlueScope and is in talks with multiple companies in the United States and the Middle East.

North American steel production is expected to grow substantially due to the shale gas revolution. There is also potential in North Africa, where some Middle Eastern companies want to invest to take advantage of the abundance of gas. Duarte said that "We have built the Nucor plant and are now pursuing other projects. There are at least three or four projects under development."

The improved global economy will support the recovery in the steel industry and the growth in demand for DR plants this year. To attract customers, Tenova is improving energy efficiency and introducing systems to capture more carbon dioxide. He added that "the gas can be sold as a by-product. It is not only beneficial for the environment, but also economically beneficial."