Direct Reduction Capacity to be raised to 1.25 mtpy

Midrex Technologies, Inc. announced that it has signed a contract with Acindar S.A. for the expansion of its existing Direct Reduction module in Villa Constitucion, Argentina.

The original 5.5 meter furnace at Acindar began operations in 1978 as a 400,000 metric tonne/year facility to service the adjacent steelmaking operations. Two previous expansions have raised capacity to 1.0 million tonnes/year.

The current expansion project is expected to add a further 250,000 tonnes/year, raising capacity up to 1.25 mtpy making the Acindar 5.5 meter MIDREX™ Shaft Furnace the highest capacity of its size in the world. The project is expected to be completed in the 2nd Quarter 2007.

Fueled by natural gas, the MIDREX® Process has the lowest greenhouse gas emissions and is also the most energy efficient technology available to convert iron ore to DRI. Over the past 12 months, Midrex Technologies Inc. has contracted more than 10 million tons of new annual DRI capacity that will be commissioned within the next few years.