Iran, China come to terms on 7 steel projects

Business Materials 16 June 2015 13:03 (UTC +04:00)

Tehran, Iran, June 16

By Mehdi Sepahvand - Trend:
Three sponge iron production units will be operational by the end of the current Iranian fiscal year (ending March 20, 2016) Iran's Deputy Minister of Industry Mahdi Karbasian said.

In a session with China 's MCC, who are carrying out seven steel projects in Iran, Karbasian and the Chinese companies representatives reviewed ways to further cooperation in completing the projects.

Karbasian said that the remaining four projects are expected to come on stream by the end of 2016, Iran's Mehr news agency reported June 16.

"Installing European-made machinery at the factories is highly stressed, to which the Chinese side has agreed," he said.

The Sepid Dasht project is being finalized and MCC has started purchasing the machinery, according to Karbasian. The official added that the Qaenat steel project's problems have also been raised.

As for the Shadegan firm, it has been decided that a meeting be held with the CEO of Khoozestan Steel Co. to investigate the problems, he noted.

As for the Mianeh steel project, the contract has been terminated. It was announced in the session that the full responsibility over the project is relegated to IMIDRO (Iranian Mines and Mining Industries Development and Renovation), the deputy minister of industry said.
He went on to say that it has been decided to change the Sabzevar steel project's output from billets to thin slabs.

And for the Neyreez plant, it was settled that a meeting be held with Iran's National Steel Co., MCC, and the side executing the contract to address the problems, he further stated.

China had pledged €3 billion funding for implementing seven steel projects in Iran.

The Chinese sides have refrained for months from doing their part despite the fact that Iran has paid the advance payment required of it.

Chinese Ambassador to Tehran Peng Sen vowed on March 8 to pursue the case of his country's financing seven Iranian steel projects.

Sen assured that delays by China Development Bank and China Export and Credit Insurance Corporation (Sinosure) in financing the projects will be taken care of as soon as possible.

The two Chinese organizations are required to pay for contractors and manufacturers of equipment gone into building the seven steel complexes.

Edited by CN

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