The project, which includes setting up a continuous casting mill, has been launched through €146 million of investment by Italy's Danieli Group and 2.53 trillion rials ($60.3 million) of local credit.
It boosts Saba's output capacity from 750,000 tons to 1.6 million tons per year, according to Financial Tribune.
As a subsidiary of the flat steel producer Mobarakeh Steel Company, Saba's main products include hot-rolled coil, steel sheets and stainless flat products, IRNA reported.
Jahangiri also inaugurated a 25-megawatt power plant established by Saba in the mill's vicinity to meet its energy needs and provide it with emergency power.
The company invested €13.7 million and 150 billion rials ($3.57 million) in this project.