Viewing rising demand in the Middle East Countries, the South Korea’s POSCO has signed an agreement with Iran’s Pars Kohan Diarparsian Steel (PKP) to build a 1.6 MnT steel plant in the port city of Chabahar, Iran. The company is planning to invest USD 1.6 bn and to take 8% stake of the project.
POSCO plans to transfer its FINEX technology to Iran as it is more environmentally-friendly and cost-efficient than standard steel making methods.
POSCO’s construction unit, POSCO Engineering & Construction has also planned to build a plant to generate power as part of the project, using gas created by the steel factory. The construction unit also expects to construct desalination facilities to produce 60,000 MT of water a day.
The world’s 6th biggest steel producer aims to break ground on the plant in 2017, with a plan to add facilities producing cold-rolled and galvanized steel in 2019.
Besides, Iran is also focused to more than triple its steel production to 55 MnT by 2025, with a hope of curtailment in its steel import.
As per POSCO’s research centre, South Korean steelmakers had controlled over half the Iranian market before the imposition of Western sanctions.
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