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MSC serves as pillar of country’s steel industry: Deputy minister


Mobarakeh Steel Company serves as a pillar of the country’s steel industry, Deputy Industries, Mines and Trade Minister Reza Rahmani said, adding in light of the fact that completion of the steel chain in the mines and mineral sector is instrumental in realization of the Resistance-based Economy, MSC has built on its successful experience in expansion projects to make its presence felt in local and export markets.
Dr. Rahmani, who is in charge of the ministry’s Projects and Planning Department, said up to 10 percent of the country’s overall industries is concentrated in Isfahan Province, adding more attention should be paid to the industrial boom and modernization which are among key things prescribed by the Resistance-based Economy. “There are as many as 320 industrial units in Isfahan Province in dire need of modernization when it comes to their equipment and production lines. Things should not be held off. After all, Isfahan is at the vanguard of the national industry. When there is industrial renovation in Isfahan and projects gain momentum there, the whole industry of the nation will pick up.”
The deputy industry chief went on to say that production lines need to be modernized to raise productivity and cut energy consumption and production costs in order to make the country’s industrial products more competitive.
He said the National Development Fund has been tapped to allocate a considerable amount of money to renovation and modernization of industries. “If the items that are needed in the modernization drive are produced domestically, they have to be purchased from domestic suppliers; otherwise, the stage will be set for industrial units to obtain them from overseas sources.”
Recalling the importance of an exports-driven attitude to production, he said first of all we need to believe in the principle that only when local market conditions and exports are taken into account, companies can stimulate demand. That is the case all over the world. “Without a doubt, technology and exports are two drivers of progress on different industrial fronts. These two factors are so important that in launching new industrial units down the line we need to make sure the facilities we set up are capable of producing high quality products which can be exported to global markets.
“This will not only serve the interests of local consumers, but enables the producers to remain competitive on global markets and maintain a safety margin. Let’s bear in mind that in the absence of exports, industrial boom would remain elusive.”
Meanwhile, the managing director of Mobarakeh Steel Company said that the industrial sector, a standard-bearer of the Resistance-based Economy and the driver of production and employment, can provide the best means to wean the country’s economy off oil revenues. “If we are seeking to replace our oil-driven economy, we need to pay special attention to mines and minerals.”
Dr. Bahram Sobhani further stated that per capita steel consumption is a major index to determine how developed a country is, adding production of, let’s say, 1 million tons of steel comes on the back of exploration, extraction and processing. Later on in the production cycle, the material extracted is turned into steel which is used in all industries including car making, construction, and food industry as well as in production of home appliances, etc.
As for the advantages associated with steel production in the country, he said, in Iran raw materials, energy, electricity and natural gas are in plentiful supply. The presence of a young, expert workforce makes things even better.
He said the 2025 Outlook Plan stipulates an annual steel production of 55 million tons, adding the reason why MSC was able to stand on its two feet over the past two years – which saw the toughest conditions in global steel production and subjected key producers to major challenges – was that it had the entire production process in one place. In trying to achieve the goal of 55 million tons, the country needs to bear in mind that sporadic units won’t work and will be driven off the market sooner or later. We need to create huge capacities.
We need to choose the kind of technology which measures up to global standards and results in the rollout of quality products, he said. “We have to compete with the rest of the world whether we like it or not. As it was already mentioned, we have what it takes to be a force to be reckoned with.”
Referring to the advantages of making it to global export markets on all industrial fronts, he said last year MSC cut its exports over the year before in a bid to maximally meet the local need for steel. “What is important, though, is that because of the high quality of MSC products 50 percent of our exports found its way to EU countries which are the biggest producers of steel.”
In conclusion, Dr. Sobhani said the mining and minerals sector do have the capability of contributing to the realization of the Resistance-based Economy as they drive employment and production.
And Isfahan Governor General Rasoul Zargarpour said the government will go out of its way to make sure MSC faces minimum problems when it comes to job creation, exports and more foreign revenues.
He further said one should not forget the fact that Mobarakeh Steel Company is no longer a provincial or even a national company; rather the role it has played in job creation, exports and brining in foreign revenues has turned it into an international entity.
The governor recalled the importance of MSC not just for Isfahan Province, but for the entire nation and said since this company has always had a successful performance in its forward drive, the government will try its best to minimize the challenges MSC faces on different fronts.
He said the province holds a number of advantages when it comes to the industry and mining sector, among them: Isfahan’s location at the center of the country along transit routes connecting north to south and east to west, an age-old history in industrial activity, diversity of products, presence of key industries which spin the industrial wheels of the country as well as downstream industries related to them, and potential to grow on industrial, mining and commercial fronts.
In conclusion, Zargarpour said the macro-policies of Isfahan, which leads other provinces when it comes to industrial and mining development, are environment-oriented and go beyond mere industrial development. “Renovation and modernization of industries, expansion of high-tech industries, development of knowledge-based industries, exports of technical and engineering services on different fronts and measures to secure the flow of foreign investment to the province’s industrial and mining projects are among our priorities.”      
 


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