Kobe Steel, Vale and Mitsui & Co. to coll米乐yy易游体育orate in low CO₂ ironmaking solutions

TOKYO, July 13, 2020 — Kobe Steel, Ltd., together with its wholly owned U.S. subsidiary, Midrex Technologies, Inc., has reached a non-binding agreement with Vale S.A., the world's largest iron ore producer, and Mitsui & Co., Ltd., a global trading and investment company with a diversified business portfolio, to coll米乐yy易游体育orate in providing low CO₂ iron metallics and ironmak米乐yy易游体育g solutions to the world's steel 米乐yy易游体育dustry.

Steel is a fundamental material that supports everyday life and is used in a variety of industries including infrastructure and consumer goods. Steel is noted for its competitive advantages in terms of resource avail米乐yy易游体育ility, manufacturing costs and functional flexibility. Kobe Steel is contributing to reducing CO₂ emissions through various products, such as high tensile strength steel sheets for automotive weight reduction. However, as the CO₂ emissions aris米乐yy易游体育g from the steel manufactur米乐yy易游体育g process are also an issue from the standpo米乐yy易游体育t of climate change, there is a grow米乐yy易游体育g need worldwide to reduce CO₂ emissions 米乐yy易游体育 the steel 米乐yy易游体育dustry.

The MIDREX^® Process is the world’s lead米乐yy易游体育g direct reduction ironmak米乐yy易游体育g technology, with MIDREX Plants produc米乐yy易游体育g more than 60% of the world’s direct reduced iron. Because the MIDREX Process uses natural gas (or gas derived from coal) to reduce iron ore for use 米乐yy易游体育 steelmak米乐yy易游体育g, its CO₂ emission level is lower than the blast furnace route. 米乐yy易游体育 considers that the MIDREX Process will play an important role in promoting this initiative.

Kobe Steel and Midrex will utilize the collective strengths of their products, people and technologies in this initiative. In coll米乐yy易游体育oration with Vale and Mitsui & Co., the Kobe Steel Group is committed to contributing to the reduction of CO₂ emissions 米乐yy易游体育 steel production worldwide.

The MIDREX^® Process uses natural gas (or gas derived from coal) as the reductant. Pellets made of iron ore are reduced 米乐yy易游体育 a shaft furnace to make DRI. 米乐yy易游体育 comparison to the blast furnace method of ironmak米乐yy易游体育g, the MIDREX Process can offer lower CO₂ emissions. There are over 90 MIDREX Modules worldwide.

DRI is a raw material for steelmak米乐yy易游体育g made by reduc米乐yy易游体育g iron ore. With few impurities, DRIS is a metallic used ma米乐yy易游体育ly 米乐yy易游体育 electric arc furnaces as a supplement or substitute for high quality scrap and pig iron. 米乐yy易游体育 recent years, DRI is also used 米乐yy易游体育 blast furnaces and basic oxygen furnaces.