An Iranian steelworker in a foundry. © Press Association Images
An Iranian steelworker in a foundry. © Press Association Images

Steelmaker invests in supply chain as Iran ramps production

24 February 2016

Iran’s Kish South Kaveh Steel Company (SKS) is making major investments in expanded production capacity that will lead to the creation of 1,000 jobs as a supply chain is developed to support the country’s growing steel industry.

So far the company has produced 400 tonnes of steel in a facility that is capable of producing 1.2m tonnes per year.

This capacity expected to double when phase two of the project, currently around 38% complete, comes online in March 2017.

Iran is projecting steel production of 55m tonnes per year by 2025.  

Ali Dehaghin, SKS managing director, said the SKS would stand in the middle of the country’s supply chain. The East Kaveh Company will specialise in mining and the production of concentrates and pellets, aiding SKS’s procurement of raw materials in the future.

The Kaveh Arvand Steel Company will manufacturer rolled steel products and will be a likely customer for SKS products, he said.

Dehaghin added his company would have easy access to the sea and the Shahid Rajaee port, unlimited access to seawater for desalination plants and rail services.

SKS said the Southeast Saba Power Generation Company intends to construct a power plant in the Persian Gulf Special Economic Zone. Phase one of the project, which is predicted to produce 500 megawatts of electricity, is under construction.

Plans are underway to build plants capable of supplying 55,000 cubic meters of water per day when supply pipelines have been completed, and three desalination units will be constructed.

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