Role of Iranian private sector in steel production

A few years ago the Iranian private sector began investigating the construction of steel plants in Iran. Nowadays, more than 90 percent of the Iranian economy belongs to the government and naturally most of the big factories such as the steelmaking plants are under government control. Not many years have passed since the Iranian private sector established some rolling plants in different parts of the country. They import billets mostly from CIS countries and then roll the billets in their plants. Following these developments, the private sector even began investments for establishment of steelmaking plants recently. However, all the construction projects backed by the private sector proceed slowly because of shortage of capital, inadequate infrastructure, bureaucracy, unstable economic policy and unstable custom duties etc. The Iranian government announced a very ambitious plan for the development of steel production to 28.9 million tons by the end of the 4th socio-economic plan (2010). Meanwhile all steel plants together produce about 10 million tons annually at present. The private sector has no important role in these new investments and most will be carried out by the government. Of course, some authorities announced that the new steel plants will be sold to the private sector when they are up and running and also that the Iranian government is going to sell a considerable share of the existing steel plants such as Mobarakeh Co & Esfahan Steel Co. in the near future.