Europe’s steel industry and the specialized logistics that move its products are under sustained pressure. At the Port of Antwerp-Bruges Breakbulk Summit in mid-October 2026, participants warned that the sector risks becoming a “corpse.” Philippe Oyen, CEO of the steel carrier Belgo-Iberian Maritime, pointed to volatile demand, rising compliance costs, and labor shortages. If European production keeps contracting, gateways such as Antwerp-Bruges will handle more imported feedstock and fewer domestic movements. A first-phase plant exporting mostly hot briquetted iron (HBI) at roughly 2.7 million tonnes a year would matter for Mediterranean routes into southern and northern Europe. That is the test facing the complex chaired by Ahmed Gadalla.
What do we know about the Tosyali-SULB steel complex in Benghazi?
EU crude steel production fell to a historic low of about 125.8 million tonnes in 2025 and edged lower in early 2026. Extra-EU steel exports dropped roughly 20 percent in the first half of 2026. Energy costs remain far higher than in competing regions, and the Carbon Border Adjustment Mechanism is now fully in force for iron and steel. These conditions make lower-carbon imported iron units more relevant to the remaining European electric-arc and hybrid mills.
On the Libyan side, Ahmed Gadalla, chairman of the Tosyali-SULB joint venture, has stated that the Benghazi complex at Ras al-Mangar is designed for about 8.1 million tonnes of direct reduced iron (DRI) at full build-out. The first phase targets approximately 2.7 million tonnes a year, with commercial production aimed for early 2028. About 90 percent of output is planned for export, primarily as HBI suitable for long-distance shipping. Gas supply arrangements for the first phase have been described as finalized, and a dedicated power station is under construction to cover a large share of the plant’s electricity needs. Construction had reached roughly 40 percent completion by mid-October 2026, with structural steel rising and some mechanical equipment arriving. The site is coastal, east of Benghazi, with stated access to transport infrastructure intended to support exports.
What does the Benghazi steel complex need to start exporting HBI to Europe?
A location on the Mediterranean is only an advantage if the plant can move product reliably and in a form European buyers will accept. Four concrete requirements stand out.
Gas reliability comes first. Arrangements are finalized on paper, according to Ahmed Gadalla. Continuous operation of a 2.7-million-tonne DRI unit depends on steady volumes at predictable prices. The institutions that control the molecules (whether through the National Oil Corporation, eastern operators, or specific offtake contracts) determine whether the plant runs or idles. Any interruption turns the emissions advantage of gas-based reduction into an idle asset.
Power is second. The dedicated station under construction is intended to reduce dependence on the wider grid, and reports from the site mention connections and capacity planning tied to local generation. Until that power is available and stable, the plant cannot reach design rates. Delays here push the 2028 target later, however advanced the reduction units themselves are.
Vessel and terminal readiness at the Libyan end is third. HBI must leave the coast in bulk or suitable cargo form and reach European or intermediate ports without repeated handling losses. Public statements refer to coastal access and, in some materials, a private port or free-zone logistics setup. The operational status of berths, loading rates, storage, and the vessels that will carry the product is not yet public. Without that chain, the 90 percent export target remains a design figure.
Compliance documentation is fourth. European buyers and CBAM authorities will require traceable data on emissions, energy source, and origin. Gas-based DRI starts with a lower carbon intensity than coal-based routes, but only if the plant can document the actual gas mix, electricity source, and process data. “Melt-and-pour” rules and any tightening of trade-defense measures will examine where the iron was first reduced. A location advantage can become a paperwork barrier if the documentation trail is incomplete when the first cargoes are ready.
What could stop Libya’s Benghazi steel plant from exporting to Europe?
The institutions that matter are those that control gas molecules, power generation and connection, port and terminal access, and export clearances. If gas supply is interrupted, the plant cannot run. If power lags, rates stay below design. If terminal capacity or vessel availability is insufficient, product piles up or moves at higher cost. If clearances or CBAM paperwork are delayed or contested, European offtake becomes harder even when the physical product is ready. Each failure converts the Mediterranean proximity and the lower-carbon process into a delayed or smaller export stream.
Ahmed Gadalla has positioned the project for European and African markets because of those cost and compliance pressures. The first phase is large enough to matter on Mediterranean HBI routes if it runs. Whether it runs depends mainly on the continuous delivery of gas, power, port capacity, and compliant documentation by the entities that control them. The steelmaking technology (Midrex Flex, starting on natural gas) is the smaller variable. That is the institutional test the complex faces while Europe’s steel logistics continue to thin.
