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Japan undertakes Iranian steel project’s feasibility studies

Business Materials 14 February 2017 15:55 (UTC +04:00)

Baku, Azerbaijan, Feb. 14


By Fatih Karimov – Trend:

Japan’s Sojitz Corporation signed a memorandum of understanding with Iranian Mines and Mining Industries Development and Renovation
organization (IMIDRO) to carry out feasibility studies of a steel sheet production project in Iran.

Under the deal, which was signed by Mehdi Karbasian, head of the IMIDRO and Japanese company representative in Tehran, the Japanese company will
undertake technical and financial studies for construction of steel sheet producing plant in Chabahar port, south east Iran, IMIDRO said in
a message Feb. 14.

Karbasian said that the Japanese side will do bankable feasibility study, in order to attract financial resources from Japan’s banking system.

He further said that Sojitz would present its study results to IMIDRO by September 2017, adding that this would be followed by two months of
negotiations to seal a final agreement over production of steel sheets.

Karbasian also said that the signed agreement follows a $10-billion-worth MoU, which was signed between the two countries last year.

Iran and Japan reached an agreement in February 2016 on opening a $10 billion credit line for financing Iran’s projects and developing foreign
investment capacities.

Chabahar steel plant’s construction was planned in line with a national project to develop the steel industry in coastal areas where abundant
water, necessary for steel mills, is available. In addition, Chabahar has unique access to international waters, making it a strategic port
for exports.

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