Iran invests USD2.2bn in steel industry

9 February 2015

USD2.2bn has been allocated to funding seven new steel projects across the country, Iran's Minister of Industry, Mine and Trade Mohammad Reza Nematzadeh was quoted by the Iranian daily Ebtekar as saying.

Expanding production capacity

Nematzadeh gave assurances that Iran’s steel output will increase and predicted that the Islamic Republic will be able to produce 55 million tons of crude steel per year within 10 years.

Meanwhile, Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) unveiled a comprehensive plan aimed at increasing steel production capacity in southern Iran.

According to IMIDRO, new steel-producing plants will be established in Chabahar, Qeshm and Bandar Abbas port cities.

Under the comprehensive plan, Iran’s steel production capacity will expand by 11.6 million tons per year.

Joint venture

Back in January, Iran announced that it had started talks with South Korean companies to invest in steel projects in the country’s south.

Mehdi Karbassian, the board chairman of the Iranian Mines and Mining Industries Development and Renovation Organization said Iran is currently negotiating with POSCO – which is among the world’s top five steel producers – over this and specifically wants it to bring an advanced steel-making technology named as Finex into Iran.     

Leading producer in region

According to the World Steel Association (WSA), Iran ranks first in the Middle East and 14th in the world in terms of steel production.

Official figures show that Iran produced 16.331 million tons of crude steel in 2014, a 5.9 percent rise from 15.422 million tons in 2013.