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Iran plans big expansion at Mobarakeh steelworks |
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Iran has signed a E300m contract with two plantmakers to undertake a one-third increase in production capacity at its Mobarakeh steelworks. The contract was signed in Tehran by the chief executive officers of Techint, SMS Demag, Irasco and Mobarakeh Steel Co in the presence of the Iranian minister of industry and mines. Capacity at Mobarakeh will be raised from 3m tpy to 4.1m tpy. Techint will supply raw material handling systems, four new electric furnaces, equipment for the existing hot strip mill, and a new pickling line and cold mill. SMS Demag confirmed that it had signed a contract but was unable to give details. Techint said SMS's part of the contract includes a vacuum degasser, a revamp of the continuous caster and a skin-pass mill. The Mobarakeh works started production in 1992 and was built by Italimpianti, which was subsequently purchased by Techint and Demag. The expansion will allow Mobarakeh to meet growing domestic demand, achieve sufficiently high levels of quality to supply the automotive industry, and make exports to other Middle Eastern countries. The project is being funded by means of a loan covered by a sales contract for the products of the steelworks. The investment capital will be recovered by the expected increase in sales deriving both from the increase in production and improved product quality. Financing for the project has been organised on a buyback basis through Fortis Bank. Balli Klöckner is the main lifter of the steel over a12 year period. This offtake agreement will supply Balli-Klöckner with a steady supply of steel to feed its recently enlarged trading operation. At the end of last year, when Balli took over Klöckner Steel Trade, it described itself as the world' s second largest " independent" trader - in terms of not having any of its own production facilities. In addition, Mubarakeh has other separate expansion plans, some of which are underway. These include a 120,000 t/y tinning line due for completion by the end of this year. In addition, it is set to invest in a 200,000 t/y HDG line, and a pre-paint line with a 100,000 t/y capacity. The latter two are due for completion in 2002. The expansion in steel production should allow Mobarakeh to meet growing domestic demand, as well as boost exports. In 2000, imports in Iran were estimated at 3.5m tonnes. |
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Dated : 20th April 2001 |
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