December 2016, No. 81

IMIDRO Exclusive

$37bn Worth of Mobarakeh Steel Products

Dr. Sobhani said: “With the operation of the casting machine the capacity of steel production in the country increased by more than 8 percent. ”

Mobarakeh Steel Mill is betting on a new continuous casting machine with a 1.8 million-ton annual production capacity for its expansion plans.

First Vice-President Eshaq Jahangiri said that avoiding crude selling and producing high value-added products is the most significant program of the Economy of Resistance.

Addressing inaugural ceremony (Nov. 3) of Foulad Mobarakeh Casting Machine No. 5 in Isfahan (early November), Jahangiri said that promoting capabilities, using natural resources’ capacities and manpower to set up knowledge-based industrial enterprises are among the main targets of the Economy of Resistance.

Iran boasts of huge natural resources, capabilities and efficient manpower, he said, noting that using the capacities, the country’s industrial complexes can be promoted to their due status.

Janagiri said that energy resources should not be exported without getting turned into value-added.

Calling for correct planning for industrial development, he said experts should first know which parts of the industry are capable of development.

Describing natural resources and mineral industries as the best grounds for industrial development, he said, “We have huge plans for developing the country’s oil and gas fields.”

The VP also referred to Mobarakeh Steel as a company of international status and major symbol of the country’s industry, saying that the company has now turned into a developmental institute, among ten major steel producers across the world.

Noting that 84 percent of Mobarakeh Steel’s equipment, parts and raw materials are manufactured domestically, Jahangiri said that steel industry should be further promoted.

Minister of Industry, Mine and Trade Mohammad-Reza Nematzadeh said that crude steel production will reach from the current 17 million tons to 50 million tons in the next six years.

Addressing the inaugural ceremony of Foulad Mobarakeh Casting Machine in Isfahan, he said that steel production should increase to meet local demand.

Noting that priority is with domestic consumers, the minister said that Isfahan boasts of higher capabilities to manufacture equipment for steel industry.

Nematzadeh hoped that all parts needed would be manufactured inside the country.

Today, German and Italian credited companies are demanding investment in Iran’s steel industry, he said, noting that many firms are using Iranian steel products and there are good markets for steel sheets across the world.

“We should not think only about exports; rather, we should strive to set up steel factories abroad,” he said.

Mobarakeh Casting Machine Project, which was commissioned within 28 months at the cost of 5.020 billion rials, will provide jobs for 100 people directly and 150 indirectly, he said.

Managing director of Mobarakeh Steel Complex said with the inauguration of the casting machine No. 5 some 33 percent or 1.8 million tons has been added to the production capacity of the industrial complex.

Dr. Bahram Sobhani, speaking at the operation ceremony of the casting machine No. 5, said with the operation of the casting machine the capacity of steel production in the country increased by more than 8 percent.

Dr. Sobhani pointed out that in the past year despite the recession,1.8 million tons of  Mobarakeh steel products were sold, adding that 54 percent of the exports were to the European Union.

Noting that production of crude steel in the complex amounts to 4.5 million tons per year, he further remarked that the goal of the company is to gain access to the production of crude steel up to 2.7 million tons per year. Sobhani noted that all the phases of design, transportation and installation of the equipment of the casting machine No. 5 were completed within 28 months and with an investment of 5020 billion rials.

Referring to 22 percent share of Mobarakeh Steel Complex in production of steel sheets in the Middle East and North Africa, Sobhani said MSC is the biggest producer of steel sheets in the Middle East and North Africa.

He added: “Mobarakeh Steel Complex and its subsidiary units are considered the biggest sponge iron producing company in the world,” saying, “the company produces 12 million tons of sponge iron and has 1 percent share in gross domestic product and 5 percent in the industrial sector.”

Stressing that the process of stone to coil (the process of iron ore up to the coil production) is done in Mobarakeh Steel Complex, he added that about 2,800 upstream companies are cooperating with the MSC. Pointing to the fact that over 84 percent of the company’s needs are met domestically, Sobhani said about 1000 factories directly and about three thousand others indirectly are using steel products of Mobarakeh.  

The MSC managing director said three large steel production complexes in the country, namely Mobarakeh Steel Complex, Saba and Hormuzgan Steel are considered to be the subsidiaries of MSC.

He pointed out that in the past year despite the recession,1.8 million tons of  Mobarakeh steel products were sold, adding that 54 percent of the exports were to the European Union. “This shows the high quality of the products of this company,” he stressed, noting that the plans for the degassing station, desulfurization station, briquetting of Martyr Kharrazi, production of deionizer water and casting machine No. 5 have been implemented to improve the quality of MSC products.”

MSC managing director, pointing to the production plans of the company in 2025 horizon said the plant has so far produced about 50 percent of the steel requirements of the country. He said development plans projected for Mobarakeh complex will be implemented in some cases up to the year 1397 (2018/19) or will be put in the tender process, adding that designing is underway for the development projects up to the year 2025. Sobhani added that there are 13,150 direct employments in Mobarakeh complex, 920 in Saba and 1,673 in Hormuzgan and noted the total direct and indirect employments in the complexes belong to MSC at about 350 thousand. Pointing to the implementation of the plan for the construction of sewage network of the cities of Mobarakeh and Lenjan, he said for reducing dependency on Zayandeh Rud water, the complex has signed agreements with the Water and Wastewater Company of Isfahan for the construction of the wastewater network in the two cities.

Stressing that in return for the construction of the wastewater network in the two cities, MSC will collect the urban wastewater and use it in its production cycle, Sobhani said the project, which is for the supply of 450 liters per second of water needed by Mobarakeh Steel Complex, has made 80 percent progress.

MSC managing director, pointing to the value of the products of the company up to 1395 (2016/17), said the products worth $37 billion of which 72 million tons have been supplied to the domestic market and 17 million tons to foreign markets.

Stressing that 54 percent of the MSC products in the seven months of the current calendar year (up to October) have been exported to the EU countries, he said this shows the high quality of Mobarakeh steel products and their conformity with international standards. He added that 38 percent of the products have been exported to the Middle East and 8 percent to the Far East in the first seven months of the current year.