Tehran, Nov. 20, IRNA - Khuzestan provinces annual steel production capacity will increase to 5 million tons, said the head of the provinces Industries, Mines and Trade Organization.Nourollah Hassanzadeh made the statement on Wednesday noting that the provinces current annual steel output is 3.2 million tons.
He said Shadegans steel project is aimed at producing 800,000 tons of steel, which can further increase to 1 million tons.
Hassanzadeh noted that Khuzestan Steel Company is to invest 65 percent of the funds required for implementing the project and the rest will be secured by the Iranian Mines & Mining Industries Development & Renovation Organization.
With the authorization of expanding the production capacity of Shadegan Steel Complex by 1.8 million tons, the companys total output capacity will amount to 2.6 million tons per year, he said.
Earlier, the rise in capacity was approved for implementation in Khuzestan Steel Company. However, due to a number of environmental factors, including reduction of air pollution in the province, the capacity expansion project was allocated to the Shadegan complex.
The construction of the complexs direct reduction and steel production units progressed by 70 percent and 35 percent respectively.
The Shadegan steel project was approved during the first provincial visit of President Hassan Rouhani and his cabinet to Khuzestan province.
The complex is expected to become operational by June 2015.
A portion of the plants equipments and machineries are produced domestically and the rest is imported.
The complex is being established in an area of 260 hectares. In the first phase, its sponge iron production unit will be constructed and in the second phase (in 2016), its raw steel production unit will be launched.
By IRNA
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