Ethiopian Press Agency (Addis Ababa)

4 October 2012

Ethiopia: Midroc Signs 600 Million USD Deal to Erect Biggest Steel Mill

Photo: Brian Sokol/UN
Grinding steel (file photo): The mill is expected to play a vital role in solving problems related to steel shortage, helping to achieve the nation's development goal.

Addis Ababa (WIC) — MIDROC Ethiopia signed a 600 million US dollar turnkey project with the Italian steel mill engineering giant, Danieli SpA for the construction of a steel mill plant in Amhara State.

With a planned annual production capacity of 1.3 million tonnes, Toussa Steel Mill will become the biggest steel mill in Ethiopia. The factory will be erected near Kombolcha town, 376-km north of Addis Ababa.

The agreement was signed at the Sheraton Addis Tuesday by Sheikh Mohammed Hussein Ali Al-Amoudi, Chairman of MIDROC, and Gianpietro Benedetti, President of Danieli SpA.

Toussa Steel Mill, which requires 260MW electric power, is expected to produce steel products ranging from billets, reinforcement bars, and hollow sections, to steel for railway tracks in its second phase.

It is believed that the steel mill would have vital role in solving problems related to steel shortage and thereby achieve the nation's development goal.

The construction of the steel mill plant is expected to be finalized in three years time. When the factory commences operation, the country's steel production is expected to grow by 28 per cent.

Danielia Company, which will be involved in the design and supply of materials and installation of the Toussa Steel Mill, is Italy's biggest steel plant manufacturer reputed for building more than 90 turnkey plants across the world since 1967.

Ads by Google

Copyright © 2012 Ethiopian Press Agency. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.

InFocus

Ethiopia to Build Largest Steel Mill

Grinding steel (file photo): The mill is expected to play a vital role in solving problems related to steel shortage, helping to achieve the nation's development goal.

A U.S. $600 million deal has been signed with an Italian steel mill engineering giant for the construction of the largest steel mill in the country. Read more »