Domestic Economy

PGSEZ Development Projects on Track

PGSEZ Development  Projects on TrackPGSEZ Development  Projects on Track

According to managing director of Persian Gulf Mining and Metal Industries Special Economic Zone, Masoud Hendian, five development projects will become operational in the SEZ by the end of the current Iranian year on March 19, 2016.

Development of the SEZ’s waterfront to handle 6 million tons of cargo per year, Saba Steel plant’s direct reduction unit with annual production capacity of 1.5 million tons of sponge iron, the first phase of Maad Koush Company’s pelletizing unit with 2.5 million tons capacity, the first phase of South Kaveh Steel Company with capacity of 1.2 million tons of steel billet and Fouman Chimi Gostar Company’s bitumen production and packaging unit with capacity of 300,000 tons are five projects expected to be completed this year, the Persian newspaper Donya-e-Eghtesad reported.

PGSEZ is currently the most active economic zone in the country, with a total of 18 projects under construction through $5.96 billion investments, said Hendian. From the remaining projects, nine are expected to be completed next year while four will be completed by 2018.

Together, the 18 projects in PGSEZ will generate 12,382 direct jobs, of which 3,270 will be created in the current year.

The nine industrial projects to be completed next year include two steel plants with 4.5 million ton annual production capacity, a pelletizing plant with 10-million-ton capacity, three combined cycle power plants with 1,972 MW capacity, a water desalination unit with 80,000-cubic-meter capacity in addition to heavy oil and bitumen production plants with 500,000-ton capacity each. The projects need $5.17 billion in investment and generate direct employment for 10,800 people.

 Investment in Steel, Aluminum

“We are planning to turn PGSEZ into a regional steel hub, producing 10 million tons of steel annually in the first phase and 7.5 million tons in the second phase,” says Hendian.

Reaching annual aluminum production capacity of 1.2 million tons is among the SEZ’s other objectives. The zone currently has the capacity to produce 275,000 tons of aluminum per year at  Almahdi Hormazal Aluminum Company.

Increasing the loading and unloading capacity for minerals, oil and cargo containers to 70 million tons per year, generating 6,000 MW of electricity annually and producing 700,000 cubic meters of desalinated water on a daily basis, export of energy-intensive industrial products to generate $6 billion annual revenues and turning the PGSEZ into a green industry platform by creating a 500 hectare green area to minimize industrial pollution were cited by Hendian as other objectives of the SEZ.

In addition to the ongoing industrial projects, the PGSEZ has also assessed the feasibility of 16 investment projects related to upstream and downstream steel and aluminum production, energy (water and electricity) and technical and engineering services.