Economy, Business And Markets

Steel Giants En Route

Steel Giants En RouteSteel Giants En Route

T hree steel industry giants from Spain, Italy, and Germany are planning to build factories in Iran to produce industrial and mineral machinery and equipment, Mohsen Parvan, secretary of the 5th Iran Steel Market Conference (ISMC 2015) told Eghtesadnews.

The three steel manufacturing companies include the Italian Danieli, one of the three largest suppliers of equipment and plants in the metal industry, the German SMS Group, a global leader in plant and mechanical construction for metallurgical process chain, and the Spanish Sarralle, specialized in engineering, design and manufacture of heavy equipment, Parvan informed.

The three companies will be attending the ISMC 2015, which is scheduled to be held in Tehran January 27-28. The conference will also be attended by other major steel companies from China and Finland as well as by the domestic steelmakers.

According to Parvan, the three companies have identified the sites where they aim to establish steel machinery and equipment factories. The Sarralle Company is set to build a factory in Shahriar County near Tehran while the other two have chosen the central city of Isfahan for their factories.

“Such projects are long-term plans that help boost the country’s steel industry progress,” Parvan remarked, adding that “the Metal Bulletin – the international publisher and information provider for the global steel, non-ferrous and scrap metals market – has also decided to hold a steel conference in Iran.”

The ISMC 2015 has become one of the most prominent steel industry conferences in Iran, with big foreign and Iranian companies attending the event. The two-day conference will be host to more than 100 foreign guests from Italy, Spain, Turkey, Russia, the UAE, and Australia and officials from the China Iron and Steel Association. Top Iranian officials including the First Vice President, Es’haq Jahangiri as well as officials from the ministry of industry, mine, and trade and the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) will also attend the conference.

The conference will focus on balanced and sustainable development in Iran’s steel industry, investment opportunities in the steel sector, and the steel and iron ore market outlook for Iran and the world in 2015. It will also review the comprehensive steel plan focused on localizing the steel industry in Iran.

Based on the  20-year Vision Plan for 2025, the country should reach annual steel production of 55 million metric tons by 2025, while the current production is estimated to be around 16 million metric tons; making Iran the 15th biggest producer of steel in the world. During the first three quarters of the current Iranian year (March 21-Dec 21, 2014), more than 12.6 million metric tons of steel was produced, registering a 6% increase compared with the similar period in 2013.

During the nine-month period, Mobarakeh Steel Company ranked first among producers with 1.36 million metric tons, followed by Khuzestan and Isfahan steel companies.

Production of galvanized steel sheets, reinforcing bars (rebars), girders, and hot-rolled plates in this period also increased by 3.6% compared to the previous year.