Iran's Steel Production Capacity Expansion on Right Track

EghtesadOnline: The Iranian Mines and Mining Industries Development and Renovation Organization's latest report on expansion of under-construction steel production units shows a total of 19.1 million tons will be added to Iran’s annual steel production capacity when these units become operational in the Iranian year 1402 (March 2023-24).

News ID: ۷۸۵۲۶۱

14 January 2020

Iran's current steel production capacity stands at 35 million tons per year, Deputy Minister of Industries, Mining and Trade Jafar Sarqeini said recently.

Iran aims to increase its steel production capacity to 55 million tons by March 2025, as part of a 20-year Vision Plan designed for the strategic industry, according to Financial Tribune.

The addition of 19.1 million tons by the time the under-construction projects come on stream to the current capacity means the aggregate output capacity will reach 54.1 million tons by March 2024, which is only 900,000 tons short of the target Iranian steelmakers need to reach in a year.

According to the IMIDRO report, which surveys physical progress of the aforementioned units as of Nov. 21, 2019, Ana Steel Company located in Zanjan Province will have a production capacity of 1 million tons per year upon completion. The development of the unit has made 97% progress and it is expected to become operational by the end of the current Iranian year (March 19, 2020).

Arian Steel Company in Qazvin will have a production capacity of 0.6 million tons per year once it is completed by the fiscal yearend. The progress rate of the unit is now at 85%.

Zarand Iranian Steel Company, located in Zarand County, Kerman Province, will have a production capacity of 1.5 million tons per year and has made 91% physical progress. It is expected to be launched by the end of the next Iranian year (March 2020-21).

The second phase of South Kaveh Steel Company in Bandar Abbas, Hormozgan Province, will add 1.2 million tons to Iran's annual steel production capacity. It has made 74% progress so far and is expected to be inaugurated next year.

Located in Chaharmahal-Bakhtiari Province, Sefid Dasht Steel Company will have a production capacity of 0.8 million tons per year upon completion. The unit’s development progress is now at 78% and it is expected to become operational next year.

Isatis DRI Plant has made 60% progress and will add 0.7 million tons to the country’s annual steel production capacity. Located in Yazd province, the project is expected to be launched next year.

Butia Iranian Steel Company in Kerman is due to become operational in the fiscal 2021-22. It has made a 62% progress and will have a production capacity of 1.5 million tons per year upon completion.

Jahan Ara Arvand Steel Factory, located in Khuzestan Province, has made 59% progress. Its annual production capacity will reach 1.2 million tons and will come on stream in the fiscal 2021-22.

Also coming on stream in the fiscal 2021-22, Ghadir Steel Company in Neyriz, Neyriz County of Fars Province, has made 46% progress and will have a capacity of 0.8 million tons per year upon completion.

The development of Mianeh Steel Company in Mianeh County of East Azarbaijan Province will add 0.8 million tons to the annual capacity of the country's steel production. It has made 52% progress so far and is expected to come on stream in the fiscal 2021-22 along with Ghaenat Steel Company located in South Khorasan Province. As of Nov. 21, 2019, the latter had made 62% progress and it will have a production capacity of 0.8 million tons per year upon completion.

Shadegan Steel Company in Khuzestan is also due to be inaugurated during the same year to add 0.8 million tons to the annual capacity of Iran's steel output. This project has made 45% physical progress.

Both located in Yazd Province, Iran Alloy Steel Company and Sarmad Abarkouh Iron and Steel Industries Company are expected to come on stream in the fiscal 2021-22. The former is 43% complete with 0.7 million tons/year capacity upon completion, while the latter is 50% complete with a 0.6 million tons/year capacity.

The development of Torbat Heydarieh Steel Company in Khorasan Razavi Province is 22% complete. To be launched in the fiscal 2022-23, the project will have a capacity of 1.4 million tons per year.

Golgohar Iron & Steel Company’s development plan is expected to be complete in the following year, March 2023-24, adding 3 million tons to Iran's production capacity. Located in Kerman, it has made 7% physical progress.

Other units with capacities of under 500,000 tons per year will add an aggregate of 1.8 million tons/year, bringing the total capacity of development plans under progress to 19.1 million tons by March 2023-24.