The Iranian government has recently approved the construction of three steel plants in the cities of Torbat-e Heydariye, Neyshabour and Sabzevar, which are located in the northeastern Razavi Khorasan province. The plants, with an annual production capacity of 800,000 metric tons each, will be constructed by the private sector.
The construction of two plants has already been started and studies for the third one have almost been completed. The plants are expected to be put into operation within three years.
Each plant requires an investment of $43 million, 75 percent of which will be financed by the private sector and the remaining 25 percent by the government.
In addition, the Iranian government has also approved the establishment of two pellet plants, also in Razavi Khorasan province. Each mill requires an investment of $57.6 million and will be fully financed by the private sector. Upon the completion of these pellet mills (within an estimated four years), they will supply their output to the above-mentioned steel plants.