OREANDA-NEWS. Kobe Steel, Ltd. of Japan and Paul Wurth S.A., of Luxembourg, a member of the SMS Group, , have signed a construction license agreement that enables the SMS Group to market, design and erect MIDREX® Direct Reduction Plants around the world.

Kobe Steel, Ltd. is owner of both Midrex Technologies, Inc., and the MIDREX® Direct Reduction Process - the industry's most productive technology for making high-quality direct reduced iron (DRI) products. DRI and its derivatives, including hot briquetted iron (HBI) are a virgin iron feed stock that is often used in steelmaking applications. Increased global demand for DRI products is fueling interest in direct reduction plants worldwide.

Germany's SMS Group is a world leader in engineering and equipment for the iron and steel industry. The MIDREX® licensing agreement enables SMS to add a new strength to their core capabilities that cover the full range of facilities for the metals sector. The agreement will further extend the market reach of Kobe Steel, Midrex and the MIDREX® Direct Reduction Technology.

Paul Wurth S.A. joins Kobe Steel, Ltd., Siemens VAI Metals Technologies GmbH, and Midrex Technologies Inc. as a construction licensee for MIDREX® Direct Reduction Plants. Kobe Steel assigns a specific construction licensee to build each MIDREX® Plant around the world. The MIDREX® Process is the most widely used direct reduction process, accounting for approximately 80% of the world's annual gas–based DRI production and 60% of the world's total annual production.

In addition to the gas-based MIDREX® Process, the MXCOL® Process uses synthetic gas made from coal or coke oven gas in combination with a MIDREX® Direct Reduction Plant. Paul Wurth is a world leader in coke-making technology and thus brings a new and beneficial dimension to the MIDREX family of partners. MXCOL® is drawing attention in regions where abundant, inexpensive natural gas is unavailable for direct reduction.