A large sponge iron plant with the annual production capacity of 800 thousand tons was inaugurated in the central city of Ardakan, Yazd Province, on Monday.
Construction of Ghadir Iranian plant began five years ago. Some 175 billion rials plus 70 million euros have been invested in the project, IRIB reported.
The output of the plant will be supplied to steel production units nationwide.
The project saves around 300 million dollars annually. Iran is the world's second largest producer of sponge iron, next to India.
--- Iran plans to double steel output
Iranian President Mahmoud Ahmadinejad addressed the inauguration ceremony of Ghadir Iranian plant, saying: "Iran's steel production capacity is currently 19 million tons annually, and we have made plans for the figure to reach 42 million tons a year," Press TV reported.
"There are various steel projects underway in different cities of the country and these projects will be gradually be inaugurated," he added.
Ahmadinejad also expressed hope that, by inaugurating the mentioned steel projects, Iran will reach the planned objective.
According to the latest report of the World Steel Association, Iran is the second leading steel producer in the Middle East, Press TV reported.
The World Steel Association's report also shows that Iran's crude steel production increased to 3.38 million tons from January 1 to March 31.