IDRO Reaches Agreement on 10MT Mega Steel Project in Iran

SEATTLE (Scrap Monster): The Industrial Development and Renovation Organization (IDRO) announced that it has signed a Memorandum of Understanding (MoU) with a consortium of seven Iranian companies on a 10 million tons steel project. The new alliance will aim at production of steel in Persian Gulf Mining and Metal Industries Special Economic Zone (PGSEZ) in the southern province of Hormozgan.

The MoU signing ceremony held at IDRO headquarters in Tehran, was attended among others by Khodadad Gharibpour, Head, IDRO; General Fereydoun Hemmati, Governor, Hormozgan Province and representatives of the seven companies that are part of the consortium.

According to IDRO, the proposed project is expected to boost Iran’s annual steel output by 10 million tons. Further, it will generate approximately 10,000 job opportunities in the province. The project, which enjoys significant benefits due to its proximity to ports and iron ore mines, is expected to be completed over a period of five years.

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Incidentally, Iran targets to achieve annual steel production of 45 million tons by the year ending March 2022. It has set a target of 30 million tons by March 2020. It must be noted that Iran’s crude steel production had totaled around 25 million tons in 2018.

The Ministry of Industry, Mining and Trade has reportedly taken all necessary measures to boost country’s metal exports despite sanctions imposed by the U.S. It has established a special working group to closely assess the situation, so as to recommend necessary actions to mitigate the impacts of the U.S. sanctions.