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Saipa increases production by 30 percent, using MSC products

The managing director of Saipa automotive company accompanied by a host of the carmakers’ managers went on an inspection tour of production lines at Mobarakeh Steel Company (MSC) and met with MSC’s managing director and his deputies and discussed more interactions between the two companies.

The meeting focused on the growing production of the giant carmaker and its subsequent need for extra steel sheets used in the automotive industry.

Later Saipa chief Dr. Mehdi Jamali told the correspondent of Steel Newsletter that Iran’s automotive industry has seen good things happen over the past several months, adding Saipa has posted a 30-plus percent rise in its production in that period. “To meet our needs, we have to have more cooperation with Mobarakeh Steel Company, which is Saipa’s largest steel sheets supplier. The managements of the two companies need to put their heads together to review ways of supplying Saipa’s need for steel sheets.”   

As for the results of his meeting with the MSC chief, he said the two sides discussed different methods in this regard, and decided to work out implementable methods in the two companies and supply the steel sheets Saipa needs for its growing production from Mobarakeh Steel Company and without importing the sheets from other countries.  

The Saipa managing director then appreciated MSC for its cooperation with the carmaker to increase production and said his company currently uses 300,000 tons of MSC’s steel sheets in its production lines each year. 

In light of the fact that the steel sheets produced by MSC are of high quality, European producers too want to use them in their products, he said, adding we can certainly say that Saipa is the biggest consumer of MSC’s cold-rolled steel sheets.   

Dr. Jamali explained that in order to upgrade the two companies’ cooperation in making qualitative and quantitative products, we also decided that representatives from the two sides be present in the production lines of MSC and Saipa to exchange information and improve the current trend. 

“Mobarakeh Steel Company is the pride of Iran. In current circumstances, its management has played a successful role in the country’s steel industry. With the strategic plans MSC has now put on its agenda, we are sure that its unique role in the steel industry will manifest itself on a broader scale in the near future,” he said.     

The managing director of Saipa said the automotive industry accounts for 3 percent of economic growth the country is expected to register, adding Saipa alone accounts for 1.2 percent of the three percent share in question. “Saipa needs to be assured by MSC that it can supply the steel sheets it needs for additional production,” he concluded. 

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