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Iran eyes new markets for its crisis-hit cement industry

Business Materials 30 January 2017 11:21 (UTC +04:00)

Baku, Azerbaijan, Jan. 30

By Fatih Karimov – Trend:

As Iran’ cement sector is in a slump, due to stagnation in the country’s housing sector, while the country is trying to diversify markets for its cement production.

The Iranian Roads and Urban Development has agreed to purchase 2 million tons of cement from producers, Abdolreza Sheikhan, secretary of Iran's Cement Industry Employers Association said, Tasnim news agency reported Jan. 30.

Iran's Bank Maskan, also known as the Housing Bank will finance the plan and the cement producers will receive the money in cash, Sheikhan said.

He expressed hope that the move will help Iran’s stagnation-suffering cement industry.

Sheikhan added that the cement producers also follow the issue of using cement in the form of concrete in building roads instead of asphalt, in order to diversify the consumption of cement.

He also said that Syria has recently expressed readiness to import cement from Iran, which can stimulate the Islamic Republic's the cement industry.

Talks are underway as well with Iraq for removing ban on import of Iranian cement, Sheikhan said.

Previously, Iraq's market was sharing 60 percent of Iran's cement export.

Last year, Sheikhan warned that Iran is gradually losing its domestic and foreign cement markets.

"Cement supply and demand is not balanced in the market and this has created problems for producers," he said.

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