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Iran Railways to buy 40,000 tons of iron domestically

Business Materials 30 April 2016 16:52 (UTC +04:00)

Tehran, Iran, April 30

By Mehdi Sepahvand - Trend:

The Iran Railways company has reached agreement with one of the country's major iron production factories for purchasing a rail consignment as a way to support domestic product.

According to the agreement, the railways company is going to buy 40,000 tons of iron from Isfahan Steel Company, the Islamic Republic of Iran Railways public relations reported April 30.

The purchased iron will come in the form of U33 rail worth €60 per ton, said Said Mohammad Zadeh, an official at the railways company.

The rails will be delivered by the end of the current Iranian fiscal year (March 20), he added.

Two years ago the railway company signed a deal with an Indian company for 250,000 tons of rail.

95 percent of fund needed for that consignment would, according to the contract, have been provided from India's governmental resources, Iran paying only 5 percent.

The contract was announced by Iran to be worth $250 million.

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