Economy, Business And Markets

Domestic Steelmaker Invests in Supply Chain

Domestic Steelmaker Invests in Supply Chain Domestic Steelmaker Invests in Supply Chain

Iran’s Kish South Kaveh Steel Company is making major investments for expanding production capacity that will lead to the creation of 1,000 jobs, as a supply chain is developed to support the country’s growing steel industry.

So far, the company has produced 400 tons of steel in a facility that is capable of producing 1.2 million tons per year, UK-based The Chartered Institute of Procurement & Supply reported.

This capacity is expected to double when Phase 2 of the project, currently around 38% complete, goes on stream in March 2017.

Iran is projecting steel production of 55 million tons per year by 2025.  

Ali Dehaghin, SKS managing director, said SKS would stand in the middle of the country’s supply chain. The East Kaveh Company will specialize in mining and the production of concentrates and pellets, aiding SKS’s procurement of raw materials in the future.

“The Kaveh Arvand Steel Company will manufacture rolled steel products and will be a likely customer for SKS products,” he said.

Dehaghin added that his company would have easy access to the sea and the Shahid Rajaei Port, as well as unlimited access to seawater for desalination plants and rail services.

SKS said the Southeast Saba Power Generation Company intends to construct a power plant in the Persian Gulf Special Economic Zone. Phase 1 of the project, which is predicted to produce 500 megawatts of electricity, is under construction.

Plans are underway to build plants capable of supplying 55,000 cubic meters of water per day when supply pipelines are completed, in addition to the construction of three desalination units.