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Last year was MSC’s crown jewel in terms of production, profitability

An annual general assembly meeting of the shareholders of Mobarakeh Steel Company (MSC) for the fiscal year to March 20, 2018 was held at Naghsh-e Jahan Conference Hall in Sepahan-Shahr on July 21, 2018.
At the meeting, Dr. Bahram Sobhani, the managing director of Mobarakeh Steel Company, presented a performance report as an audit report on the steelmaker’s finances was read out. The meeting also reviewed and ratified the financial statements of the company and decided that each share receive 250 rials in dividends for the year.
According to the correspondent of Steel Newsletter, as much as 89 percent of shareholders, MSC board of directors, and a stock market representative attended the general assembly meeting.
Later in the meeting, the MSC chief described last year as the brightest in the company’s history in terms of production and profitability and added thanks to an increase in domestic demand and a rise in global steel prices which were coupled with a jump in slab sales and higher earnings on investment, MSC revenues registered a 56 percent increase. As a result of cost-cutting measures, profitability margins posted considerable hikes over the year before and the company outperformed rivals when it came to profitability.
The managing director of the giant steelmaker went on to say MSC production in the 12-month period exceeded 6.841 million tons, up 12.7 percent over the year before. “With the launch of a new phase at Saba Steel Complex, the crude steel production capacity of Mobarakeh Steel Group has risen to 10.3 million tons.”
Dr. Sobhani further said as the biggest steelmaker of the country, Mobarakeh Steel Group accounted for 54 percent of the overall production in the country by producing 8.667 million tons of crude steel last year. As a result of compliance with productivity principles, MSC’s HR productivity per person rose from 401 tons in the 12 months to March 20, 2016 to 538 tons two years later.
On the shareholders of the company, Dr. Sobhani said 30.19 percent of MSC shares belongs to the provincial investment company, 17.2 percent to the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO), 6.58 percent to Bank Refah, 6.12 percent to Sadr Tamin Investment Company, 2.75 percent to Tejarat Bank and 37.16 percent to other shareholders.
He said the sales of the company amounted to 7 million tons last year, with the share of the domestic market rising substantially. In the 12 months to March 20, 2017 some 4.718 million tons of steel found its way into the domestic market; the following year the figure rose to 5.741 million tons. Accordingly, the share of exports fell from 1.554 million tons to 1.292 million tons.
As for the achievements of the company, Dr. Sobhani catalogued the following: inauguration of a project that saw the production capacity of Saba Steel Complex rise from 750,000 tons to 1.6 million tons, launch of Sangan Pelletizing Plant with an annual production capacity of 5 million tons, purchase of a 17 percent share block of the Mines and Metals Development Investment Company, which saw MSC’s ownership share rise to 40 percent, and new records in the production of crude steel, cold and hot rolls, etc. 
MSC reached another milestone last year: its overall production of crude steel since its launch hit the 100 million ton mark, Dr. Sobhani said, adding MSC’s increase of annual crude steel production capacity to 10.3 million tons with a rise in the production capacity of MSC and Saba, finishing 11th among Asian knowledge-based companies in international MAKE Award, ranking first when it comes to base metals among the top 100 Iranian companies, inauguration of the Pelletizing Plant in Sangan which is the first and largest in the east, securing a golden award for respecting customer rights, winning the top productivity award among mining and mineral factories, and securing the top standard unit award were among other achievements of the steel giant.
He said the pelletizing plant in Sangan will have been completed and inaugurated by next year, adding an expansion project that will see the production capacity of Hormozgan Steel Company rise from 1.5 million tons to 3.5 million tons and construction of a second hot rolling line are among vital projects of Mobarakeh Steel Group. “If we fail to secure foreign finances for these projects, we’ll have to bankroll them locally,” Dr. Sobhani said.
The MSC managing director further said proper investment can result in sustainable profitability growth and survival of the company, adding when investment is in line with long-term strategies and corporate development plans, it can give a boost to shareholder wealth. In acting on such a line of thinking, MSC has explored the competitive environment around to identify suitable investment opportunities which are up for grabs. It has meticulously examined them, both technically and economically, to choose the best one. For example, MSC earnings from investment in listed companies last year added up to 8.3 trillion rials.
As for the technological activities of the company, Dr. Sobhani said advancement of the IT service management system, implementation of a security assessment project and presentation of plans to make IT services more secure, promotion of the security of inter-organizational security systems when it comes to Enterprise Edge, implementation of an electronic payment system for drivers, preparation of electronic credit documents to be sent to the banks, design and implementation of a capital budgeting system and implementation of weighing management system (registration of bill of lading) are some of the measures taken in this regard.
Recalling the water shortage the country is faced with and the measures MSC has taken to cut and optimize its water consumption, Dr. Sobhani said presently MSC uses 3.3 m3 of water for each ton of steel it produces, with the bulk of that water coming from recycling.    
It should be noted that during the meeting the auditing organization was named as independent auditor and legal inspector of MSC and two mass-circulation newspapers, namely Ettelaat and Donya-e Eqtesad, were chosen to run MSC’s advertisements this year.
The meeting also set an August 6 date for the payment of dividends to real shareholders at the branches of Tejarat Bank across the country, with the dividends of real, rather than legal, shareholders being given priority.

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