Voestalpine Texas' Hot-Briquetted Iron Plant Operational

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Researched by Industrial Info Resources (Sugar Land, Texas)--Voestalpine Texas LLC, a subsidiary of Voestalpine AG (Linz, Austria), started commercial operations recently at a new, $740 million hot-briquetted iron (HBI) plant in Portland, Texas, near Corpus Christi. The project was conceived in 2011 and began construction in 2014.

The plant will produce 2 million metric tons of HBI per year, using natural gas as a reducing agent, rather than coke and coal. Voestalpine selected the Portland site at the Port of Corpus Christi, because of its access to cheap natural gas and port shipping infrastructure. For more information, see Industrial Info's project report.

Voestalpine is taking full advantage of its NAFTA connections. Iron-pellet feedstock is shipped in via large, capesize shipping vessels. The finished product will be shipped out to clients in Mexico and the U.S, as well as to the company's blast furnaces in Austria. Big River Steel (Osceola, Arkansas) in the U.S. and Mexico-based steelmakers AHMSA & TYASA all have signed long-term supply agreements for Voestalpine HBI.

Voestalpine Texas is the second alternative iron production plant to start up in recent years to have port access to the Gulf of Mexico. In 2013, Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) began operation of a $750 million, direct reduced iron plant in Convent, Louisiana. That project has dealt with a series of facility and market issues that have hindered operations at the plant since it started up.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.