“MSC’s Hot Rolling Mill No. 2 will have a production capacity of 4.5 million tons of hot-rolled coil per year,” MSC Managing Director Hamid Reza Azimian told Financial Tribune on the sidelines of the Iranian Steel and Iron Ore Market Conference and Expo.
The 10th edition of the event, also known as 'ISMC 2020', was held on Jan. 21-22 at the IRIB International Conference Center in Tehran. Organized by Donya-e-Eqtesad Media Group, the parent company of Financial Tribune, the annual event hosts top officials and experts related to the steel industry every year.
“We have reached an agreement with a foreign company. The project requires €260 million worth of investment, 54% of which (or €140.4 million) will be provided domestically while the remaining 46% will be financed by the foreign side,” the MSC chief said.
According to Azimian, the project will create 1,000 direct jobs at MSC and 8,000 indirect jobs once it becomes operational.
“It will completely meet Iranian industries’ demand for different types of steel sheet of various sizes and qualities,” he added.
As per the agreement with the foreign contractor, the project will take 900 days to complete before it comes on stream.
MSC's steel production capacity stands at 10.2 million tons per year, while its actual production is 8.7 million tons annually. The mill’s steel sheet production stands at 7.3 million tons per year.
“We expect new demand in the future, which will require higher quality, more solid, anti-corrosion, lighter and more affordable steel products,” he said.
According to a report by Donya-e-Eqtesad, hot-rolled coil has a 38.5% share in Iran’s total steel production. The country has produced 13 million tons of hot-rolled sheets in the current Iranian year (started March 21, 2019), registering a 6% rise compared to the year before.
The country produced 7.94 million tons of the product in the last Iranian year (March 2018-19), up 3% compared to the year before.
Hot-rolled coil is used in the production of oil, gas and water pipes, profiles, vessels, home appliances, car bodies and food packaging materials.
Azimian estimates that between 800,000 and 1 million tons of steel sheets are currently imported annually.
Mobarakeh Steel Company accounts for 50% of Iran’s steel production.
Latest IMIDRO data show that with an output of 13.26 million tons, Mobarakeh Steel Company had the largest share of steel production in Iran during the first nine months of the current Iranian year (March 21-Dec. 21, 2019).
The company produced 6.19 million tons of finished steel during the period, posting a 2% rise compared with last year's corresponding period.
In addition, it produced 7.06 million tons of semi-finished products, remaining unchanged year-on-year, the Iranian Mines and Mining Industries Development and Renovation Organization’s latest report shows.
Located in southwestern Isfahan, Mobarakeh Steel Company is the biggest steel producer in Iran and the Middle East and North Africa region.
The mill was the second biggest steel exporter during the same nine months, as it shipped out 1.1 million tons of products, 47% more compared with last year's corresponding period.
During the month to Dec. 21, its exports totaled 99,000 tons, showing a sevenfold YOY rise.