Iranian steel industry needs $3.7B
Iran’s national steel industry needs some $3.7 billion capital in foreign exchange as well as 10 000 billion rials, reported Iran Daily.
To meet production quotas for the Third Five Year Development Plan (2000-2005) the industry needs the funds to invest in facilities, equipment, wages, and basic improvements to the industry.
Presently, total production figures stand at 6.5 million tons for the first six months of the current Iranian year (begun March 20). This is 200,000 tons more than for the same period last year (March 20 – September 20); annual targets for the entire industry are 14.7 million tons.
To raise part of the capital, industry planners will float some 10%-20% of the steel industry’s affiliated companies on the domestic market. 46 companies are presently being assessed by the Tehran Stock Exchange.
The Tabriz complex, one of the first major projects launched by the Mines and Metals Ministry, received $65 million and 210 billion rials in investments earlier this year. Tabriz produces 550 000 tons of steel annually, using technology acquired through a finance contract with Italy.
Meanwhile, ministry officials said that plans are under way to establish Iran’s first metal market. Aluminum, zinc, iron, steel, and cement will be traded on the proposed bourse. – (Albawaba-MEBG)