Economy, Business And Markets

Danish Cement Giant to Transfer Technology

Danish Cement Giant to Transfer TechnologyDanish Cement Giant to Transfer Technology

A leading Iranian company has signed a cement deal with a multinational Danish company in the Iranian Mines and Mining Industries Development and Renovation Organization’s headquarters in Tehran on Tuesday.

The memorandum of agreement on scientific, technical and economic cooperation in the cement industry was inked by managing director of one of Iran’s largest cement producers Ehdas-e Sanat Company, Morteza Hashempour, and CEO of FLSmidth Company, Thomas Schulz.

Based on the agreement, the Denmark-based firm appointed Ehdas-e Sanat Company as its representative in Iran and delegated it to undertake projects or provide services, Mehr News Agency reported.

Furthermore, the Iranian company has agreed to have close cooperation with FLSmidth in production of cement products and factory equipment, in addition to optimization and renovation of Iranian cement factories.

With almost 15,000 employees worldwide, FLSmidth provides global cement and mineral industries with factories, machinery, services and know-how. It has offices in more than 50 countries.

“A new era has begun for Iran and FLSmidth. By working closely, Iran can become the region’s hub for cement production and exports ,” Schulz said.

Deputy Minister of Industries, Mining and Trade Mehdi Karbasian said Ehdas-e Sanat Company is expanding its projects beyond the country’s borders, as it recently implemented its second overseas project –the construction of a cement factory with a production capacity of 1 million tons per year in Venezuela.

 Karbasian, who is also the head of IMIDRO, added that based on the new agreement, the Iranian firm will be provided with the latest, cutting-edge cement production technologies to further develop its capabilities.

He predicted that demand for cement will rise in Iran and the region over the next 10 years, pointing to the potential of cooperation with FLSmidth in “meeting the growing demand”.

“FLSmidth’s capabilities are not limited to the cement industry. The company is known as a powerful player in the global mining industry. Therefore, IMIDRO is ready to cooperate with the firm in various fields such as extraction and processing of coal as well as aluminum, nickel and chromite production,” he said

Karbasian noted that Denmark’s government guarantee fund recently gave the green light to Danish firms to invest in Iran’s non-metal projects, stressing that the lifting of sanctions–imposed on Iran over its nuclear energy program–will help strengthen the two countries’ cooperation and investment ties in different economic sectors.

Iran is currently one of the largest producers of cement and the world’s top cement exporter with sales of about 18 million tons in 2014.