Japanese companies to set up steel mills in Chabahar, Iran

26 May 2015

Representatives of Japanese companies active in steel industry said on Monday they are willing to take part in construction of steel mills in Chabahar free zone and turn the area into a hub of steel industry.

12-member delegation from 10 Japanese firms signed the final contract to build the first steel mill in Chabahar in presence of Japan Ambassador to Iran.

IRNA reported that the contract to build 3 million tons capacity steel mills named 'Makran Chabahar' was signed on the second day of Japanese delegation visit to Chabahar.

Representatives of different companies visited the free zone for construction of steel mills and at least four companies have passed primary stages of registration, receiving land and primary activities to build the units.

Managing Director of the Chabahar Free Trade-Industry Zone said that plan to build Makran Steel Complex in the area with capacity of 3 million tons of steel output has reached signing contract stage for construction by Iranian private sector companies.

Hamed Ali Mobaraki made the remarks in a joint meeting with Japanese envoy in Iran and the accompanying delegation.

He said that the plan is in the framework of new projects of 'Iranian Mines and Mining Industries Development and Renovation Organization ( IMIDRO), Free Trade-Industrial Zone and private sectors and it will include a conglomerate of steel industry.

He added that Makran steel factory will be commissioned in two phases and at the first stage it will produce 1.6 million tons annually.

Mobaraki underlined that advantages of building steel mills in the area are easy access to iron-ore mines in the province or neighboring countries as well as the demand in the markets of the neighboring states.

He said that closer access to the target markets, to free ports of Oman Sea and existence of water resources are among the most important advantages of the area for building steel mills.