To meet its demand for steel sheets, the state-run National Iranian Gas Company has signed an agreement with Iran’s largest rolling plant, Khuzestan Oxin Steel Company, the head of the steel plant said.
“As per the contract worth $500 million, the steel mill is obliged to provide NIGC with 500,000 tons of steel plates over the next two years,” IRNA quoted Ali Mohammadi also as saying.
NIGC is in dire need of steel sheets to build pipelines and gas storage tanks, he added.
The official said Oxin Steel Company is the largest steel sheets and plates provider for the oil industry and its products are all manufactured based on API (American Petroleum Institute) standards.
The agreement was signed on the sidelines of the 27th International Oil, Gas, Refining and Petrochemical Exhibition, dubbed Iran Oil Show 2023, held on May 17-20 at Tehran’s Permanent Fairground.
According to Mohammadi, the steel company is committed to shouldering its corporate social responsibility (CSR) in underdeveloped regions in Khuzestan Province.
“The company is dispatching steel sheets to build a bridge in Bavi County, Ahvaz,” he said.
The bridge will help connect 45 rural districts to the country.
The official noted that the construction of residential complexes, clinics and recreational facilities, in addition to expanding green spaces in poverty-stricken regions, is among other CSR projects.
Located in the southern province of Khuzestan, Oxin Steel Company is Iran’s biggest producer of heavy plates and has a capacity of 1 million tons per year. It also has a direct-reduced iron plant and a slab mill, each with a capacity of 1 million tons per year.
There are 84 steel mills in Iran and its biggest steelmaker, Mobarakeh Steel Company, accounts for 18% of total production capacity with 7.2 million tons per year.
Khuzestan Steel Company comes next with 3.8 million tons, followed by Esfahan Steel Company with 3.6 million tons and South Kaveh Steel Company with 2.4 million tons.
Wealthiest Province
Khuzestan is a major oil-producing region of Iran and one of the wealthiest provinces of Iran in terms of natural resources. It holds 80% of Iran's onshore oil reserves and 57% of Iran's total oil reserves, making it indispensable to the Iranian economy.
Iranian steel mills registered a 21.1% rise in crude steel production with 5.1 million tons during the first two months of 2023, latest data released by the World Steel Association show.
Iran's February output hit 2.4 million tons, registering a 14.6% year-on-year rise.
In terms of world ranking, Iran maintained its global standing as the world’s ninth biggest crude steelmaker.
Iran registered the biggest growth in crude steel production during the period among the top 10 producers in the world.
Iran is placed after Brazil (eighth) with 5.3 million tons (down 5.8%) while Turkey comes after Iran with 4.7 million tons (down 23.1%).
