Iraq has inaugurated a major $305 million steel plant in the southern port city of Basra, as part of its broader effort to meet rising demand for construction materials during the country’s post-conflict reconstruction phase.
The plant—originally awarded to Italy’s Danieli Group over a decade ago—has a production capacity of 600,000 tonnes per year. Its launch comes shortly after Iraq’s industry and minerals minister, Khaled Al-Najm, also laid the foundation for a new steel industries park to be developed by China’s Tsingshan Group, also in Basra.
Despite significant delays due to political and security instability, the facility is now expected to play a key role in supporting national development projects, including Iraq’s $17 billion Development Road initiative. That megaproject, aimed at linking southern Iraq with the Turkish border via a 1,200-km rail and motorway, is backed by Turkey, Qatar, and the UAE and scheduled for completion by 2029.
Iraq’s steel demand currently exceeds 8 million tonnes annually, with expectations for continued growth. Additional steel plants, such as a new rebar rolling mill being developed by Danieli in Al-Hilla near Baghdad (500,000 tpy), are in the pipeline to support infrastructure expansion.
Source: agbi.com
