Economy, Business And Markets

Joint Venture With China for Ferrochrome Plant

Joint Venture With China for Ferrochrome PlantJoint Venture With China for Ferrochrome Plant

A ferrochrome factory will be established in the Persian Gulf Special Economic Zone in the port city of Bandar Abbas in a joint venture with the Chinese, IRNA cited the governor of Hormozgan Province as saying.

The factory, which will annually produce 50,000 metric tons of ferrochrome, will be established with an initial €150 million investment, said Jasem Jadri after a meeting with a Chinese delegation. He added that the factory will have an annual turnover of $50 million.

According to the governor, as many as 500 people will be directly employed in the factory, more than 90% will be locals.

Ferrochrome is produced through concentrating, pelletizing, and sintering the chromium ore. It is an alloy of chromium and iron containing between 50% and 70% chromium. The alloy is mainly used in producing stainless steel and alloys with high abrasion resistance.

Stainless steel depends on chromium for its appearance and its resistance to corrosion. The average chrome content in stainless steel is approximately 18%.

Sabzevar Ferrochrome Company is currently the biggest producer of the alloy in the country, capable of producing 25,000 tons per year. Iran imports ferrochrome mainly from India.

Since Iran and the major powers reached an interim nuclear agreement late 2013, many foreign companies have been waiting to enter the country’s mineral sector after the full removal of anti-Iran sanctions.