FLSmidth Granted Exclusive License to Supply Iron Ore Pellet Plants with KOBELCO Pelletizing System in India

Kobe Steel, Ltd., Japan and FLSmidth Private Limited, India have entered into an exclusive license agreement enabling the Indian partner to market, design and construct iron ore pellet plants using Kobe Steel’s pelletizing process called the KOBELCO Pelletizing System.

This agreement gives FLSmidth the exclusive right to supply pellet plants in India. Projects in other countries will be evaluated on a case by case basis. FLS's cement plants and the KOBELCO Pelletizing Systems share core technology (pyro processing) in common and particularly the rotary kilns and burners.

“The long and vast experience FLSmidth has in mineral processing including iron ore beneficiation makes it an excellent partner for our pelletizing process,” says Hiroshi Ishikawa, an Officer at Kobe Steel and Head of its Iron Unit Division. “The synergy and expertise of both Kobelco and FLSmidth will add value to our customers, which will be mutually beneficial,” he adds.

India has produced 81.2 million tons of crude steel during 2013, and steel production is anticipated to be prosperous in future according to the World Steel Association. Indian Government’s aim to increase steel production to 300 million tons by 2025 has enhanced the need for iron and other related production facilities, including pellet plants. Kobe Steel and FLSmidth will cater to this demand by jointly promoting the KOBELCO Pelletizing System.

The KOBELCO Pelletizing System makes iron ore pellets used as a raw material for blast furnaces and direct reduction plants. Over many years, Kobe Steel has made continuous improvements to the KOBELCO Pelletizing System through the operation of its own pellet plant in Japan and its engineering business, where Kobe Steel has supplied pellet plants and services to companies worldwide. Major projects include a 4 million ton per year plant and a 6 million ton per year plant for the former Gulf Industrial Investment Co. (E.C.), now known as Bahrain Steel. Kobe Steel also received an order for two 4.5 million ton per year plants from Vale Oman Pelletizing Company.

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