TRIPOLI, Sept 11 – A major iron and steel complex under development in eastern Libya is expected to attract about $2.5 billion in investment and begin commercial production in early 2028, as the Turkish-Libyan venture behind the project targets growing demand for lower-carbon steelmaking inputs.
The facility is being built on the Mediterranean coast in Benghazi and will produce direct reduced iron (DRI), an important feedstock for steel production that can be manufactured using natural gas instead of coal. The process produces lower carbon emissions than conventional coal-based ironmaking.
The project, first announced in 2024, is among the largest industrial developments underway in territory controlled by military commander Khalifa Haftar. It is being developed by Tosyali Sulb Steel Industries, a joint venture between Turkish steelmaker Tosyali Holding and Libya United Steel Company for Iron and Steel Industry (SULB).
Ahmed Gadalla, chairman of Tosyali Sulb, said in written responses to Reuters that approximately 90% of the facility’s production would be exported. The complex will also manufacture rebar and pipes for the Libyan market.
Benghazi Positioned for Export Growth
The facility is designed to produce around 8.1 million metric tonnes of DRI annually when fully operational, potentially making it a significant new source of lower-carbon iron for international steelmakers.
Gadalla said Libya’s Mediterranean location gives the project an advantage in serving markets across Africa and Europe. European steel producers are facing rising operating costs and increasingly stringent environmental requirements, creating potential opportunities for suppliers of lower-carbon ironmaking inputs.
The project is also emerging as regional plans for lower-carbon iron production face greater uncertainty. The Middle East had been developing into a major centre for DRI production, but the Iran war and disruptions to shipping through the Strait of Hormuz have complicated some investment plans.
For Libya, the Benghazi project represents a push beyond crude oil and gas into industrial processing and manufacturing. Its large export component could also create a new channel for Libya to participate in international steel supply chains while generating demand for domestic infrastructure and energy.
Gas and Power Infrastructure
Gas supply arrangements have already been finalised for the first phase of the project. That stage is expected to produce approximately 2.7 million tonnes of DRI annually.
A dedicated power station is also being constructed to supply a substantial portion of the complex’s electricity requirements, according to Gadalla.
The development comes as economic ties between eastern Libya and Turkey deepen despite Ankara’s historical support for the internationally recognised government in Tripoli. Tensions between the eastern and western authorities have eased considerably, while Turkish companies have expanded their presence in eastern Libya across construction and energy.
If completed as planned, the Benghazi complex would give eastern Libya one of its largest industrial projects while positioning the country’s Mediterranean coast as a potential supply point for lower-carbon iron serving African and European steel markets.
