The producers of concrete and metal building products are operating at only 30% of their capacities, while 10% have been forced to close down in the last Iranian year (ended March 20), according to industry sources.
Chairman of the Association of Producers and Suppliers of Concrete and Metal Building Product, Hossein Akbar says the construction material sector has been hit by recession and by imports from China and Russia, ISNA reported.
“The export level is not satisfactory either, with domestic manufacturers exporting only to Central Asian countries, Afghanistan and Iraq,” he added.
He also noted that the sector has been burdened by high fuel prices since the government stopped payment of fuel subsidies to manufacturers of concrete and metal products.
The official also criticized the imposition of high taxes on manufacturers, observing that presently taxes are calculated based on the companies’ previous year’s performance rather than their current earnings.
Concrete paving blocks, curbs and Jersey barriers are among concrete products manufactured domestically. Steel, cement and concrete producers have suffered from an unprecedented downturn in the housing and construction sector over the past few years, which has lead to a sharp decline in demand for construction material.
