Mobarakeh Steel plays a critical role in Iran economy

Mobarakeh Steel plays a critical role in providing raw materials for pipelines transferring water from the Oman Sea and the Persian Gulf to central and eastern provinces.

News ID: ۲۰۰۱۶۹۷

06 August 2025

At a time when many steel producers worldwide, as well as domestic manufacturers, are grappling with declining demand, Mobarakeh Steel’s focus on large-scale national projects—such as the water transfer schemes to the provinces of Sistan, Khorasan, and Yazd—offers a crucial strategic advantage. Beyond its vital role in supplying steel sheets for the pipe production of these projects and contributing to national development, this approach stands as a key factor in maintaining profitability during challenging economic conditions.
Mobarakeh Steel’s Pivotal and Effective Role in National Water Transfer Projects
As one of the primary suppliers of steel sheets for Iran’s massive water transfer initiatives, Mobarakeh Steel plays a critical role in providing raw materials for pipelines transferring water from the Oman Sea and the Persian Gulf to central and eastern provinces including Sistan and Baluchestan, Yazd, and Khorasan. This success echoes the company’s earlier contribution to the water transfer project in Isfahan province.
The company has produced approximately one million tonnes of specialised steel sheets for pipes stretching over 1,200 kilometres. These high-strength sheets are manufactured using specific grades such as X65 and ST52, allowing for thinner materials without compromising strength.
Production of Low-Carbon Steel Sheets
The steel sheets produced for the water transfer projects feature a minimum yield strength of 450 megapascals and a tensile strength of at least 535 megapascals. Employing advanced simulation technology, Mobarakeh Steel is moving towards producing low-carbon steel grades, enhancing the quality and sustainability of its products.
Securing Water Security for Isfahan’s Industries and Reviving the Zayandeh Rud River
The benefits of these water transfer projects, with Mobarakeh Steel’s participation, are manifold: ensuring water security for Isfahan’s industries; aiding the revival of the Zayandeh Rud River; reducing pressure on groundwater resources; combating land subsidence; creating employment; and fostering industrial development in central Iran.
Moreover, supplying domestically produced steel sheets reduces foreign currency outflow. Amid current national challenges where many companies face energy imbalances leading to lost production opportunities and even losses, Mobarakeh Steel’s strategic investment in renewable energy power plants and energy self-sufficiency ensures the company’s continued production and profitability.
Supplying Steel Sheets for National Pipe Manufacturers
Another positive development is Mobarakeh Steel’s provision of steel sheets to domestic pipe manufacturers, facilitating a shift from costly imports to local supply. This move not only supports employment but also guarantees the supply of steel sheets for specialised water transfer pipes, ultimately benefiting the company’s shareholders through sustainable profits.
It is worth noting that some of the largest pipe manufacturing companies, particularly those producing water transfer pipes, belong to the Mobarakeh Steel group. Their production and operational profits translate into significant and sustainable gains for Mobarakeh’s shareholders.
Mobarakeh Steel: A Pillar in Meeting Iran’s Steel Needs for Water Transfer Projects
As a pioneer in supplying raw materials for national projects in water, oil, and gas transfer, Mobarakeh Steel has declared its full readiness to meet the maximum demands of these initiatives. Through producing high value-added and environmentally friendly products, the company plays a vital role in advancing the country’s infrastructural projects.
Given the national determination to implement these projects and Mobarakeh Steel’s active involvement, the company is poised to remain a cornerstone in fulfilling Iran’s steel requirements for water transfer.
Guaranteeing Steel Sheet Demand Amid Market Recession
With drought predicted to persist across the country and surrounding regions, Mobarakeh Steel’s central role in projects such as water transfer ensures a stable and predictable demand for steel sheets. This guaranteed demand shields the company from severe fluctuations in the global steel market.
Because the sheets for these projects are produced from premium grades like X65 and ST52, they carry higher added value. Consequently, manufacturing these sheets under current economic conditions yields better profit margins compared to standard products.

Mitigating Export-Related Risks
Another advantage of Mobarakeh Steel’s focus on water transfer projects is risk reduction related to exports. Facing challenges such as competition from Chinese steel and currency transfer difficulties, prioritising domestic markets and national projects diminishes export risks.
Improving Profitability Through Targeted and Intelligent Measures
Currently, Mobarakeh Steel pursues strategic and intelligent measures including optimising production processes with investment and support for knowledge-based firms, utilising advanced technologies to cut production costs, enhancing energy efficiency in production lines, diversifying products, developing special grades suited to national projects, investing in research and development for higher value-added products, managing inventory, and completing the supply chain by defining new missions for subsidiaries within the group. These initiatives aim to sustain ongoing improvements, including profitability.
Active and Impactful Presence on the Ground
With water transfer projects expected to continue for years to come and their strategic importance, Mobarakeh Steel maintains a proactive and impactful stance—mirroring its previous strategic approach to energy self-sufficiency in gas and water supplies—actively engaging in the field rather than remaining passive.
Turning Threats into Opportunities Through Sound Management Decisions
Wise and timely management decisions have transformed this national asset from threats such as energy imbalance into growth opportunities for the country. Projects such as the construction of a 914 MW combined cycle power plant and a 600 MW solar plant, utilisation of urban and industrial wastewater in production cycles, and overcoming sanctions through over 90% localisation of materials, parts, and equipment exemplify these achievements.
Sustainable Long-Term Revenue and Expertise Development in Special Products
Mobarakeh Steel’s involvement in these strategic projects, alongside ongoing investments in developing Iran’s steel industry—such as establishing a second hot rolling mill—offers long-term sustainable revenue streams, expertise development in producing specialised products for infrastructure projects, and strengthens its position as the primary supplier for national industries.
Enhancing National Resilience and Development Through Mobarakeh Steel’s Projects
Today, producing various steel sheets to meet domestic market needs and succeeding in exports to generate foreign currency represent only part of Mobarakeh Steel’s mission. According to many experts, the multiple ongoing projects within the group contribute significantly to increasing the group’s resilience and the nation’s steady development./tasnim