Iran Establishes First Sponge Iron Factory in China
An Iranian company uses direct reduction of iron to establish the first Iranian DRI factory in China.
The first Iranian sponge iron production plant was launched in China on Monday, and the plant uses the new PERED technology for producing DRI (direct reduced iron).
This major project was initiated and carried out by an Iranian company that uses direct iron reduction, and was able to transfer it to China: the world's biggest steel producer.
China has been using a different technology with higher costs and less efficiency; however, it decided - as part of its environmental protection policies - to make use of the Iranian gas-based iron production technology.
China's CSTM Company and Iran's MME Company, the license owner of PERED technology, concluded an agreement for the construction of the first gas-based sponge iron plant.
The plant has a capacity of 300,000 tons, and it has been launched in China’s Taiyuan city.