The largest semis producer in Iran–Khouzestan Steel Company–has signed a contract with Austria’s Horst Wiesinger Consulting, as it plans to expand production by the end of the current Iranian year (March 20, 2017).
Based on the agreement, HWC will draw up a long-term development strategy for the company, covering improvement of operating performance and expansion of production capacities, as the parties told Metal Expert, a Ukraine-based provider of news and analysis on steel products and steelmaking raw materials industries.
Special attention will be given to an upgrade of logistics, modernization of existing equipment, enhancement of cooperation between the company’s divisions and with the third parties as well as to environmental issues, according to HWC.
With KSC’s large-scale capacity expansion plans to produce 5 million tons per year from the current 3.5 million tons by the yearend, outsourcing consulting can help the producer meet the targets. The company plans to keep expanding capacities further to 8.8 million tons by 2020 and 13.6 million tons in 2025, an unnamed KSC spokesman told Metal Expert.
In 2015, KSC produced 3.45 million tons of semis, which is equal to 92% of capacity. The same year, the producer exported 1.07 million tons of the material, predominantly billet.
Among major outlets were Saudi Arabia, the UAE, Oman and Jordan.
The producer also aims to strengthen position in the segment of slabs, selling mainly to Thailand, Taiwan, Morocco and Indonesia.
Last year, KSC exported about 30,000 tons of slabs out of the total volume shipped abroad.
This year, the producer set an export target of 1.3 million tons of semis.
“We plan to strengthen our positions through competitive prices, decent quality, timely delivery and increased volumes,” KSC Deputy Managing Director for Sales and Marketing Bahman Tajallizadeh said during Metal Expert’s MENA Billet Import Conference held in Dubai this April.
