30% of Industrial Towns Inactive

EghtesadOnline: Iran has 1,011 industrial towns, of which 728 are active and about 30% are inactive.

News ID: ۷۸۶۸۰۴

07 August 2021

Deputy Interior Minister Babak Dinparast added that of the 47,500 production units located in these industrial towns and zones, 8,500 units are inactive, IRNA reported.

According to Ali Rasoulian, deputy industries minister, businesses located in industrial towns exported €378 million worth of products in the first quarter of the current fiscal year (March 21-June 21).

“A total of $2.7 billion worth of goods were exported by industrial towns last year [March 2020-21],” he added.

Noting that products categorized in metal and food groups accounted for the lion’s share of exports in Q1, Rasoulian said 26% of enterprises in industrial towns are classified under the metallic group, 22% chemicals, 17% food and beverages, 11.8% non-metal minerals, 7.2% cellulose products, 5.4% textile and 3.4% power and electricity.

According to the Ministry of Industries, Mining and Trade, a total of 1,557 inactive industrial units, located in industrial towns across the country, resumed operations in the last Iranian year (ended March 20, 2021).

"About 46.11 trillion rials [$180 million] were allocated to help these industrial units resume operation. The ministry plans to prop up 1,600 more industrial units in the current fiscal year. Besides, we are tasked to support the reopening of 800 units located in industrial towns,” he added.

Rasoulian said the government has allocated 50 trillion rials ($196 million) for implementing these plans this year.

About 93% of total industrial units in Iran are considered small, 4% medium and 3% large. A total of 35,000 small and large units are under construction.

Official statistics show a total of 1,444 industrial units were revived in the fiscal 2019-20.

The revived units had been either partially or completely shut down due to the lack of working capital, loss of markets, inability to upgrade technology and lack of investment.

According to Mohammad Baqer Mojtabaei, the secretary-general of Iran Chamber of Guilds, Iranian enterprises are divided into four groups: microenterprises that employ nine people or fewer, small enterprises with 10 to 49 people, medium-sized enterprises with 50 to 99 people and large enterprise with 100 people and above.

A total of 41,501 jobs were created in Iran’s industrial parks and special economic zones during the last Iranian year (March 2020-21), showing more than a 30% increase compared with the year before, according to the official.

“These jobs were mostly generated in the fields of metal, chemical, food and beverage, non-metal mineral, cellulose, textile, electricity and electronics production, as well as different services,” Rasoulian said.

The official added that plans for this year are to launch at least 3,500 enterprises, which are estimated to create 55,000 jobs across the country.

“Last year, Iran Small Industries and Industrial Parks Organization dedicated a total of 4,513 hectares for setting up around 10,627 units in the country’s industrial parks and zones, registering an 82% and 83% rise compared with the previous year.”

With a total of 823 industrial parks and zones, three special economic zones, 78 specialized industrial and economic zones, six science parks, 38 centers for technological and business services, two telecommunications and software service complexes, 46,822 production firms and 3,078 workshops, ISIPO has created 941,558 jobs in different Iranian provinces.