Mobarakeh Steel Company, the largest producer of steel in Iran is likely to purchase the controlling stake of Oxin Steel. MSC’s Managing Director Mr. Bahram Sobhani announced on Saturday that MSC is eager to purchase a controlling stake in Oxin Steel Company. MSC currently has controlling stakes in more than 20 steel mills and investment holdings. He said “We are currently negotiating the purchase. As a large-scale mining and steel complex, MSC’s expansion is our priority.”
He added that the company intends to buy or establish steel plants in close proximity to free waters of Persian Gulf. The underdeveloped transportation system in Iran is hampering steelmakers’ competitive edge in exports. Operating closer to free waters will help reduce transportation costs and bypass substandard railroads and roads.
During the first 7 months of current Persian year, MSC has produced around 4.89 MnT of semi-finished steel. On parallel line, MSC has produced around 3.34 MnT of Finished steel during this period.
MSC already has a subsidiary; Hormozgan Steel Company; which operates in southern Iran. Together with its subsidiaries, MSC is the largest flat steel producer in Middle East and North Africa, and meets 20% of the region’s steel demand and accounts for 1% of Iran’s GDP.
On other hand, Oxin Steel is Iran’s biggest producer of heavy plates. It is the only local producer of heavy wide steel plate and can produce it in widths of 1,100-4,500 millimeters with a thickness of 8-150 mm. During current Persian year Oxin steel has produced around 454,000 MT of finished steel.
Inputs taken from Financial Tribune
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