Hormozgan Steel Company (HOSCO) is one of the largest steel company in Iran is planning to double the slab production capacity. During first 9 months of current Persian year, the company has already produced 1.21 MnT Slab.
Farzad Arzani, MD of the Hormozgan Steel Company (HOSCO) – Iran, said in a meeting with the media representatives that “The production capacity of the HOSCO slab will double and reach from 1.5 MnT/year to 3 MnT/per year by installing a new steel making project, the project is likely to begin after few months”. He added another prominent capability of HOSCO is the production capacity of DRI, which is around 1.65 MnT/per year.
Mr. Arzani said that during the first nine months of current Persian year (21 Mar-21 Dec’2017), the company produced around 1.21 MnT Slab, out of which about 0.83 MnT were exported with an increase of 13% Y-o-Y. Around 0.38 MnT were sold domestically registered a growth of 40% Y-o-Y. This indicates that 70% of HOSCO production is sold in global market, where as its priority is to fulfill domestic demand.
He added further, “HOSCO share of steel production in country is 8.1%, whereas the share of Mobarakeh Steel is 42.2%, Khouzestan steel is 22.3%, and Esfahan Steel is 14%, so HOSCO is the fifth largest producer of steel in Iran.”
He said that 75% of the total purchase orders of the company consist of raw materials, which is procured domestically Pointing out to the low volume of production in some steel companies, he said said that we should close small steelmaking units and expand the development of steel mills with a capacity of 4 tons and merging other small steel units.
Hormozgan Steel to Merge with Persian Gulf Saba Steel.
Farzad Arzani, MD of the Hormozgan Steel Company (HOSCO) – Iran, said in a reply to a question by a reporter regarding the purchase of Saba Steel from the Persian Gulf,” Hormozgan Steel needs time for project development, and the subject of the Persian Gulf is being pursued through Mobarakeh Steel and Hormozgan welcomes it.
Referring to the share of HOSCO in the steelmaking prospect, the MD said; the plan to produce 10 million tons of steel in the south of Iran is serious, and steel units should be built alongside open water to be economically productive and profitable. Their plan is to merge all of the southern steel makers together for a 10 MnT company.
He added: “Integeration is one of the solutions to the production plan of 55 MnT of steel in 2025, as well as it also reduce production costs and the cost of finished products and we see that Mobarakeh Steel with a chain has more competitive power than other Steelmakers in Iran.”
Inputs Taken from Chilan Online and Mr. Reza Zaer (Market Expert)
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