Steel Production Chain in Hormozgan to Be Strengthened Through Stable Raw Material Supply

Bandar Abbas – The acting deputy for economic coordination at the Hormozgan Governorate General announced efforts to secure a stable supply of raw materials and strengthen cooperation among the province's four major steel complexes.

According to Mehr reporter, Khalil Ghasemi, in the meeting of the working group to remove production obstacles, pointed out the need to strengthen the connection between the different links of the steel chain and stated: The province's policy is to use the existing production capacities as a continuous chain and to convert the raw materials produced in Hormozgan into added value as much as possible in the downstream units of the province.

He added: With the support and companionship of Hormozgan Governor, and following his order, cooperation between the four major steel complexes of the province, including Madkosh, Saba Steel, Fars Gulf, Kaveh South Kish Steel and Hormozgan Steel, has been provided. A cooperation that focuses on using the pellet production capacity of Madkosh company to supply feed to the steel units of the province.

Hormozgan governorate's economic affairs coordination deputy considered removing barriers to supply raw materials and establishing coordination between production units as requirements for the continuation of industrial activities and stated: the governor's economic deputy will follow up on this issue with the cooperation of the trustees until the result is achieved.

Ghasemi, referring to the approvals of the working group to facilitate and remove obstacles to the production of the province, said: based on the minutes of the meeting No. 961 and citing the approvals of the meeting No. 910 of this working group, emphasis has been placed on the sustainable supply of raw materials and supporting the continuation of activity and increasing the production capacity of Madkosh Company.

He continued: Based on this, it has been decided that Gehrzamin Mining and Industrial Company will directly supply and send the concentrate subject to the long-term contract with Madkosh Company for consumption in the production unit of this company. Also, the General Department of Industry, Mining and Trade of Hormozgan has been assigned to follow up the issue of deduction from the supply quota of Gehrzamin Company in the commodity exchange, according to the provisions of the mentioned contract, from the Ministry of Industry, Mining and Trade.

Ghasemi stated: This decision was taken with the aim of creating continuity in the steel production chain of the province, from the supply of concentrate and pellet production to the supply of feed for sponge iron production units, hot briquettes and semi-finished steel products.

Emphasizing the importance of the continuation of the steel industry's activity in maintaining direct and indirect employment, he added: the activity of these units is not limited to the production of products in factories, but also affects a wide network of transportation, technical and repair services, contracting, supply of parts and other related businesses; Therefore, the stable supply of raw materials plays an important role in maintaining employment and the sustainability of economic activities related to these industries.

Referring to the job creation capacity of these complexes, the Deputy of Economic Affairs Coordination of Hormozgan Governorate pointed out: According to the statistics published in public sources, the four mentioned complexes have created a total of about 4,300 direct jobs and more than 10,000 indirect job opportunities, which shows the extent of the relationship of these industries with the network of contractors, transport companies, suppliers and industrial service providers in the province.

Ghasemi also pointed out that Hormozgan has strategic ports, rail and road network and proper access to domestic and export markets and said: these infrastructural capacities, along with the capabilities of the steel industry, have provided a good opportunity to transform Hormozgan into one of the important centers of production, completing the country's steel value chain and exports.

He emphasized: The approach of the provincial administration is to support production and investment with the aim of increasing added value, completing the production chain and sustaining economic benefits in Hormozgan, and strengthening cooperation between existing industrial units is one of the ways to achieve this goal.

In the end, Ghasemi pointed out: the strict implementation of the approvals of the working group to facilitate and remove obstacles to production and to remove obstacles to the supply of raw materials will provide the basis for more effective exploitation of the invested capacities, continuity of production and strengthening of employment, and can be a model for synergy among the large industries of the province and the development of value chains.