A Work of 11 Years: Project manager Dasht-Bozorgi, now managing director of Azarbayjan Steel Plant, was the second speaker of the ceremony. He provided a report on the project from the earliest days, saying, “Implementation of this project by an affiliate of KSC was first approved in 1989 and steps such as land ownership and basic construction were taken by 1997. Afterwards, machinery was shipped from Italy’s Danieli and operations were expedited with the assistance of KSC and NISICO. Azarbayjan Steel Co. was registered in March 2000 and 100% of its shares belong to KSC.”
Giving some technical specifications of the plant, Dasht-Bozorgi noted that due to its proximity to the northwestern borders of the country, Azarbayjan Steel Plant could procure its raw materials either domestically or from abroad. He added, “Some 500,000 cu.m of excavation had to be performed for construction operations. The plant utilizes Quench-Tempered Systems for thermal processing of low and medium carbon steel as well as low alloy steel. All operations in the plant are controlled by two automation centers (Pulpit I & II). There are two packing units which enable us to pack the products according to customers’ orders.
“To create a proper ambiance and avoid traffic problems, a 6 km special road has been constructed leading to the plant. As an environmental measure, most of the water circulated in the plant is recycled back and the part which is discharged won’t leave environmental impacts.” Managing director of Azarbayjan Steel Plant closed his statements by acknowledging the collaboration of power and gas companies, project contractors and local officials.

For 550,000 tons of annual output, Azarbayjan Steel Plant could procure its raw materials either domestically or from abroad due to its proximity to the northwestern borders of the country

Targeting 14.7 Million Tons: The third presentation of the ceremony was made by Ishaaq Jahangiri, Minister of Mines & Metals. He voiced his pleasure over the achievement of East Azarbayjan Province to join other steel-producing provinces of the country and stressed that under President Khatami’s administration, the country’s economy and industry had both grown remarkably. He stated, “Iranian steel has demands in most industrial countries due to its fine quality. For production of each ton of steel in 1996, Iran had to spend $100 on raw materials while this cost dropped $45 last year.”
Giving news of upcoming inauguration of other steel plants across the country, Jahangiri continued, “In the past 3 years, the Iranian steel industry has experienced 3 million tons increase in smelting capacity and 2.79 million tons of increase in final production capacity. Most operations such as engineering and design have been performed by Iranian experts. Meanwhile, a buy-back contract was for the first time signed between an Iranian steel plant and a foreign partner. Iranian steel industry will maintain its progress to tap the planned 14.7 million tons of annual output by the end of the Third Development Plan.”
The Minister of Mines & Metals then pointed to the effects of international environment and political issues on economic and industrial progress and declared, “Slow progress of Azarbayjan Steel operations between 1989-1996 was mainly due to the fact that the international political environment was not much in favor of the Islamic Republic of Iran in that period. Drawing on improved international relations, the Ministry of Mines & Metals has signed five steel contracts for the value of $700 million with Italy’s Danieli and establishment of Azarbayjan Steel Plant is based on one of those contracts. This plant boasts a very high automation level and one of the most advanced rolling procedures worldwide.”
Jahangiri ended by expressing his gratitude toward NISICO Chairman Moazenzadeh, KSC Managing Director Katani, KSC Board Chairman Foroozandeh and Project Manager Dasht-Bozorgi for all their efforts.

Promised Breakthrough: President Khatami was the last speaker of the ceremony. Excerpts of his statements follow:
Iran houses 1% of the world population, and it currently produces about 0.7% of the world steel. This ratio indicates that although Iran stands in a fine place among developing countries, but it is yet to obtain a deserving status in the global level. By March 2001, our country is expected to be producing 6.7 million tons of steel per year; while our annual production was 550,000 when the Islamic Revolution took place. Furthermore, Iran hopes to achieve 14.7 million tons of annual steel production by the end of the Third Development Plan (2004).
For a country that is struggling to promote non-oil exports, steel is a vital commodity. Therefore, I refer to the inauguration of Azarbayjan Steel Plant as a landmark in Iran’s economic development. Benefits of this steel plant first go to the people of Miyaneh and East Azarbayjan given the fact that it creates 300 direct employment opportunities as well as 4,000 indirect jobs. Moreover, some of the products of this plant are industrial steel items which give promises of more added value, establishment of downstream industries and further employment.
In my previous visit to Miyaneh, I promised two breakthroughs to people: Establishment of natural gas facilities and commissioning of Azarbayjan Steel Plant. Today, I am delighted to see both have been accomplished. For the establishment of this plant, I appreciate the proper management of the Minister of Mines & Metals Ishaaq Jahangiri, and endeavors of East Azarbayjan and Miyaneh MPs, National Iranian Steel Industries Co., Khuzestan Steel Co. as well as all technicians and staffs involved. I congratulate the city of Miyaneh and the province of East Azarbayjan, and hope for further development of this region in terms of economy, industry and production.
Majlis has approved that the government should use $3 billion of surplus oil revenues for expansion of employment and production. Moreover, Japan has agreed to grant Iran $3 billion of credits. This total of $6 billion can solve many of Iran’s problems if spent under efficient management. Security and profitability of investment is another factor that must be heeded to encourage economic mobilization.
We must become powerful in terms of economy and industry. Otherwise, our ideals for the rule of law and the rule by people will be no more than hollow slogans. Iran must play a role in global culture and global production. If we believe and demonstrate that we are merely public servants, prosperity is not out of reach.

Azarbayjan Steel Plant: Facts & Figures

Miyaneh City, Adjacent to Railway Station, P.O.Box: 53135-411, IRAN Tel: (+98 42321) 33271-6 / Fax: (+98 42321) 33277