Iran has increased its annual steel ingot production capacity by 1.2mn mt with the inauguration of phase two production line of South Kaveh Steel Company located at the Persian Gulf Special Economic Zone in Hormozgan Province’s Bandar Abbas city, according to the Iran Mines and Mining Industries Development and Renovation Organization (Imidro).
With this, the company’s annual ingot output capacity has doubled to 2.4mn mt and will now contribute 10pc to the total steel output of the country.
Mostazafan Foundation has invested a total of €311mn ($362mn) in the project. The company’s 1.2mn mt capacity phase one was inaugurated in 2016.
The region is an ideal area for steel production. Currently, 4mn mt of steel is produced at the special industrial zone and the authorities are looking to expand that capacity to 10mn mt and make it a hub of steel production in the country.
The government is also working towards removing obstacles and accelerating steel production in the region.
Iran’s steel output capacity is projected to reach 43.6mn mt by 2021, while the actual production capacity is estimated to hit 31.1mn mt utilizing 71pc of the nominal capacity, as per Imidro. The country’s target annual production capacity expansion by 2025 is 55mn mt, while its annual export target is 20-25mn mt.