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.