New development of Khuzestan Steel

Khuzestan Steel Co. authorities have announced details of their new project for installation of second phase of sponge iron plant with an annual capacity of 1 million ton. First phase with an annual capacity of 800,000 tons of sponge iron was built up a few years ago and is up and running at present. The second phase which was launched last year is expected to be in production within two years. Khuzestan Steel is aiming for a production target of 2.4 million tons of steel by the end of the current Iranian business year (21.03.2006 – 21.03.2007). However, with the completion of its new development projects, the company is expecting an increase in production to 3.2 million tons of steel. Based in Southwest Iran near the Persian Gulf, Khuzestan Steel is one of the main Iranian producers of crude steel. The company manufactures semi-finished steel products such as slab, bloom and billet, and export more than 30 percent of its production.