The
Iran National Steel managing director has announced the commencement of the Bafgh Steel project that is scheduled to be operational in 36 months.
The plant, which will have an annual steel capacity of 800,000 mts, is one of 8 new plants, the
construction of which has recently been initiated in eight less developed provinces of the country. Bafgh Steel will produce billets from pellets produced at the nearby Bafgh Pellet Making Co. plant and will roll the billets to produce
construction steel.
With each plant having the capacity to produce 800,000 mts of
construction steel annually and with the ongoing capacity expansion projects in other mills, the Iranian government is aiming to increase the country's steel
production by 10 million mts.
Moreover, the Mobarakeh Steel managing director has also announced that the Iranian authorities recently approved a capacity expansion of 2 million mts for Mobarakeh Steel and of 700,000 mts for Saba Steel, a subsidiary of Mobarakeh Steel. The total investment for these capacity expansion projects will be IRR 10 trillion ($1.088 billion) over 3 years.