A new steel plant is currently under construction at the city of Vian in the western Iranian province of Hamadan. The project for the new mill, which is to be privately-owned, started in the middle of 2006 and at the current time is said to be 58 percent completed.
Using both scrap and iron ore as raw materials, the new mill will have an initial capacity of 550,000 mt of billet per year, which may be increased to one million mt per year in the future. €360 million and IRR 90 billion have been allocated for the project which is expected to be put into operation in the middle of 2008.