The first phase of the plant, which involves smelting and casting operations, operates at 250,000-ton capacity per year and creates jobs for 600 people, IRNA reported.
Some 6.5 trillion rials ($44.67 million) have been invested for the first phase.
Two other phases, including direct-reduced iron production as well as a 15-megawatt power plant, are under construction with 70% physical progress, according to Financial Tribune.
The plant is located in the city of Harsin, southeast of Kermanshah Province.
Kermanshah Province is home to some 1,000 production and industrial units that have created 30,000 jobs.