Iran's SKSCO to double steel capacity

South Kaveh Steel Company (SKSCO), one of the largest steel plants in Iran, plans to double its production capacity over the next several months.

The company is seeking to add 1.20 mn t pa steel production capacity, for which all the purchase, transfer and installation work has been completed, Abdol Majid Sharifi, head of SKSCO said recently.

Purchasing equipment was difficult given the US-imposed sanctions though funding from industrial conglomerate Kaveh Pars Holding eased the procurement process. Trial production of the new capacity is expected in the next few months, Sharifi added.

Iran is aiming to produce 55 mn t crude steel by 2025, for which it has accelerated expansion of steelmaking and iron ore processing facilities and banned the export of iron ore.

SKSCO, which primarily exports steel products, exported 0.86 mn t of its total production of 1.16 mn t billet in the last Persian year (Apr'19-Mar'20).

Iran produced 16.79 mn t billet and bloom and 10.45 mn t slab in the last Persian new year. Major billet and bloom producers in the nation are KSC (2.45 mn t), ESCO (2.26 mn t) and Khorasan Steel (1.04 mn t).