The Construction of Infrastructure and Provision of a Supply Chain Bring Iran's Steel Industry to a New Level

SKS and future of steel industry in Iran; the Kish South Kaveh Steel Company (SKS) is one of the largest investments in the field of job creation and heavy industries. The projects, run by the company, have created about 1,000 direct and indirect jobs.

Feb 02, 2016, 08:30 ET from Mostazafan Foundation

TEHRAN, Iran, Feb. 2, 2016 /PRNewswire/ -- Mostazafan Foundation: The Kish South Kaveh Steel Company (SKS) is one of the largest investments in the field of job creation and heavy industries. The projects, run by the company, have created about 1,000 direct and indirect jobs.

Ali Dehaqin, the CEO of the SKS, has weighed that the company plays an important role in the future of the country's steel industry, "The annual production of 55 million tonnes has been envisaged in the outlook [for the steel industry] until 2025.  Kaveh Pars Company would have a ten-percent share of the projected figure," he added.

The company's first phase of steel production has been launched at a capacity of 1.2 million tonnes per year. So far, some 400 tonnes of steel have been produced. The project employs the latest technology, including a furnace with a nominal capacity of 210 tonnes and a ladle capacity of 170 tonnes. The furnace is an EAF / EBT / 170/7500 model. It is a CCM /6 strand/120-150-200 Foundry Machine with a tundish capacity of 30 tonnes. The furnace is predicted to be able to produce billets at the nominal capacity.

Shahram Salmasi, the project manager, says "Currently, company's steel-producing project in phase two is under construction and is around 38 percent completed and It is expected to come on line by March 2017. Combination of two phases along with 2.4 million tonnes per year will realize half of 10% shares of steel production that Kaveh Pars holding is to fulfill."

Completion of Supply Chain

Kaveh Pars Mining Industries Company, with its acumen, has completed the production cycle from mines to other stages during the production process, which led on to grow added value in production.

Dehaghin has elaborated on this trend, "The establishment of three steel companies in three locations in the country, given the climatic conditions and potentialities of each those locations, will contribute heavily to the continuation of production by South Kish Kaveh Steel Company and boost synergy. The East Kaveh Company prioritizes mining as well as production of concentrates and pellets as strong backup for the procurement of raw materials for the company in the future.

"Furthermore, the Kaveh Arvand Steel Company also does rolling and provides other long steel products; so, it is a suitable customer for the company's products. Accordingly, the South Kish Kaveh Company stands in the middle of the production cycle, and the products, produced by the upstream and downstream industries of the company will have more added value. As a result, with both companies going on stream, the steel production cycle will be completed," he added.

Provision of Infrastructure

The advantages of being located in a special zone are proximity to the High Seas, easy access to the Shahid Rajaee port, the privilege of having unlimited access to seawater for desalination plants and proximity to energy-producing industries. The company also enjoys having access to rail transportation services.

In order to make sure that its energy needs are met, the South Kish Kaveh Steel Company has implemented a development plan. Shahram Almasi, the steel project manager of the company, says: "The Southeast Saba Power Generation Company is operational and intends to construct a combined-cycle power plant in the Persian Gulf Special Economic Zone. Phase one of the project which is predicted to produce 500 megawatts of electricity, is under construction. With the completion of this phase, the electricity needs for phase two in steel production project, run by the South Kish Kaveh Company, will be met."

Continued Production and Provision of Water

In a bid to provide the industrial water required by steel production units in phases one and two, plans are underway to build two oxygen units as well as direct reduction plants at the South Kish Kaveh Steel Company aimed at producing 55 thousand cubic meters of water per day. Accordingly, supply pipelines have been completed. Three desalination units with capacities of 5, 10 and 17 thousand cubic meters will pump a total of 32 thousand cubic meters of water into the production cycle. Other units will come on line gradually as needed.

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Press Release By: Akhbar Rasmi Media Agency

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SOURCE Mostazafan Foundation