EghtesadOnline: The second phase of South Kaveh Steel Company with a steel ingot production capacity of 1.2 million tons was inaugurated on Saturday in a ceremony attended by First Vice President Es’haq Jahangiri in Persian Gulf Special Economic Zone, located in the port city of Bandar Abbas in Hormozgan Province, according to the company’s CEO.
“With the inauguration of this production line, in which Mostazafan Foundation has invested a total of €311 million, ingot production capacity of Kaveh Steel Company has doubled to 2.4 million tons per year,” Ali Dehaqin was also quoted as saying by IRNA.
The official noted that Kaveh Steel Company will now have a 10% share in the country’s overall steel production. He added that the project has created 800 and 6,400 direct and indirect jobs for the locals respectively.
The first phase of SKSCO with a 1.2 million-ton capacity per year was inaugurated in 2016.
PGSEZ is one of Iran’s most ideal locations for the development of steel industry. It presents many advantages for steel mills such as its strategic location near high seas, which not only reduces transportation costs and facilitates exports, but also helps meet the huge water requirements of the industry.
The first phase of SKSCO’s desalination plant was also completed alongside the first phase of the steel plant.
According to Iranian Mines and Mining Industries Development and Renovation Organization, Iran’s steel production capacity is expected to reach 43.6 million tons by the end of the current Iranian year (March 20, 2021), while actual production is estimated to hit 31.1 million tons to utilize 71% of the nominal capacity.
Iran aims to become the world’s sixth largest steel producer as per the 20-Year Vision Plan, which targets annual production capacity expansion to 55 million tons and 20-25 million tons of exports per year by 2025.