Economy, Business And Markets
0

Iranian Plate Producer Mulls Expansion

Iranian Plate Producer Mulls ExpansionIranian Plate Producer Mulls Expansion

The only Iranian plate producer Khouzestan Oxin Steel Company intends to increase its capacity utilization rate and strengthen its position globally over the new Iranian year (started March 21).

An increase of export shipments as well as larger share of value-added products in the portfolio will be the main competitive factors of the company, Metal Expert reported.

Khouzestan Oxin finished the Iranian year with 60-62% capacity utilization rate of its 1.05 million tons per year plate mill, although the previously announced aim was around 90%.

Within the next year, the company plans to strengthen its positions in terms of production but the targeted numbers have not been disclosed yet.

“We will increase our capacity for sure, but to which extent exactly will depend on the market conditions,” said a company representative.

In addition, Khouzestan Oxin plans to increase the share of value-added products in its portfolio up to 50%, according to a company senior product manager.

The supplier also plans to gradually strengthen its positions in the segment of alloyed plates, which will not only support the general target of output increase but will also improve the mill’s export performance.

“When we enter the alloyed [plate] segment, we hope to get more clients all over the world. In this case, I think this year we will for sure increase our capacity as it is a good opportunity to export not only to the Middle East, but to Europe also,” a company source said.

For this year, Khouzestan Oxin aims to increase its total plate exports 2.5 fold to 75,000 tons amid the forecast for better overseas demand.

The European market is seen as the main destination next year, taking into account already established successful cooperation, with German buyers in particular.

In addition, Belgium, Sweden, Italy, the Netherlands, Iraq, Pakistan, Azerbaijan, Turkmenistan, Tanzania and South African countries are among the company’s potential partners in the new Iranian year.

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com