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Islamic Republic has Good Advantages for Increased Steel Output
In IRIB TV show “Payesh” Dr. Bahram Sobhani referred to the advantages that exist in Iran and emphasized on increasing the capacity of steel production saying, “As a mother industry, the Iranian steel industry, as a key and infrastructural industry, is considered to be a strategic industry, and any country without the steel industry will automatically be dependent on other nations.”
He went on to add, “In 2013, about 1.5 billion ton steel was produced in the world with USA: 100 million, Japan: 120 million, EU: 130 million, Russia and Central Asian republics: 110 million and on top of all China: 770 million ton.”
He went on to say, “This is indicative of the fact that the US, Japan, the EU, and Russia have maintained their capacity in the past years. And none of them have our steel making advantages, and this fact indicates that we can achieve more capacities for steel production.”
In response to a question asked by the moderator, Dr. Heidari, asking “Why is the cost price of steel products in our country higher than other countries despite our comparative advantages, the CEO of Esfahan Mobarakeh Steel Company answered, “Many factors involve in this problem. One of them is the financial costs that is about 2 or 3 percent around the world, but it is over 30 percent in our country. The other factor is the low productivity of our work force in comparison to the developed industrial nations, and the third problem is the lack of the infrastructural facilities which imposes great costs for the steel makers to establish infrastructures of their own, whereas in other countries industrial managers are all-out focused in their own fences in financial and intellectual terms and all infrastructures have already been made available to them from outside of their fences.”
“At present, our country used the most advanced steel making technology, and the only reason for the purchase of a piece of equipment from abroad is its cost effectiveness.” He reiterated.
In response to another question inquiring about the investment of other countries in the Islamic Republic of Iran he said, “We are a rich nation and we do not need other countries to come and invest in our country. Therefore considering the constitutional Article 44 which was implemented on our steel making sector, Iranian investors stepped into the arena and now we do not have any problems in this respect.”
He went on to reiterate, “At present, we don’t have any problem with respect to the exportation of our steel products and our steel products are exported to many countries. And MSC exports its products to Persian Gulf states, Europe, and other parts of the world.”
Referring to the MSC strategies with respect to the development of the steel industry he said, “We have anticipated our share in the Iranian steel making output, and we are committed t the attainment f the goals mentioned in the nationwide 20-year vision. We shall execute our expansion projects in a cost-efficient way in locations that are more economical, and if necessary we shall invest in other countries with an economic viewpoint, because we believe the survival of the industrial units lies in the execution of expansion projects and attaining higher capacities. In this respect we will provide our financial resources from Iranian and foreign banks and therefore our esteemed shareholders must pay attention to this point. They are advised to give us part of their earning per share enabling us to save enough cash funds to finance these expansion projects.”
MSC chief executive officer went on to emphasized on the lack of infrastructures for expansion inside MSC and added, “considering the restrictions that exist in Mobarakeh town, we must add one or two million tons to our capacity through the optimization of our equipment, and we are going to perform our other expansion projects in Hormozgan Steel, Saba Steel and other parts of Iran   and outside Iran”


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