Iraq has commissioned a 600,000-tonne-per-year steel mill [1] in Basra, more than a decade after awarding the project to Italy’s Danieli Group. The facility, inaugurated by Industry and Minerals Minister Khaled Al-Najm, is expected to support the country’s post-conflict reconstruction efforts and meet growing demand for steel.
The project, valued at IQD400 billion ($305 million), is one of several steel plants planned to bolster Iraq’s infrastructure development. Officials anticipate rising steel demand, particularly for mega projects such as the $17 billion Development Road, which includes a 1,200-km rail line and parallel motorway linking southern Iraq to the Turkish border.
Al-Najm also laid the foundation stone for Iraq’s first steel industries park, to be developed by China’s Tsingshan Group in Basra. The initiative aligns with broader efforts to expand domestic steel production and reduce reliance on imports.
Danieli has maintained a presence in Iraq, previously securing contracts for rebar production and other construction-related steel products. In 2024, the company was awarded a contract to build a 500,000-tonne-per-year rolling mill in Al-Hilla, near Baghdad.
With Iraq’s steel demand estimated at over 8 million tonnes per year, the latest developments signal a strategic push to strengthen the country’s industrial base and support long-term economic growth.
Sources:
[1] Iraq opens steel plant project as post-conflict demand surges https://www.agbi.com/construction/2025/05/iraq-opens-steel-plant-project-as-post-conflict-demand-surges/