The Persian Gulf Saba Steel Company was established with an annual production capacity of 4.5 million tons of sponge iron, 1.5 million tons of ingots (billets) and 3 million tons of steel slabs. According to the latest revision in the reduced sponge iron unit by a consultant, project technical unit and the technical and economic feasibility study report, it is predicted that the first phase with the capacity of 1.5 million tons of sponge iron and ingots with a capacity of 1.5 million tons per year is to be built within 57 months. In addition to this, the budget required for the start-up and its investment costs in the resuscitation sector is amounted to approximately 5,543,000,000 IRR, 4,479,000,000 IRR for the steel sector and 960,000,000,000 IRR for working capital.

Barsu Consulting Engineering Company was selected as an industrial consultant in June, 2009, after the assessment and bidding. The contract documents of the sponge iron production was subsequently provided and after the bidding, Iran International Engineering Company (IRITEC) was selected as the EPC contractor of the project.

In September 2009, the contract numbered as 88-156-01 was signed with IRITEC and the advance payment was paid. After the contract was awarded, project's designing and engineering was began by the contractor right away. Furthermore, the measures for signing the contracts regarding domestic construction of the equipment by the contractor and ordering some parts of the external equipment was also carried out. 

Additionally, the site's management and security buildings were also built and used. The contracts for supplying 6,000 cubic meters of water, construction of a power station 230/33, building a 20,000 cubic meter reservoir of water, launching plant's water supply system transmission line as well as workshop supervision services, water transmission lines systems, power station contracts and gas supply consulting services were made.

The company's activities

According to the article 2 of the statute, Persian Gulf Saba Steel operates in the following fields; the purchase of minerals of all kinds, mine renting, all mines and minerals related activities, operating all projects regarding metal and non-metal goods, the import and export of all types of semi-finished raw materials, metallic and non-metallic finished goods with or without laminate, import and export of all types of ores, pellets, billets and galvanized steel as well as metal products of different types for market, iron ore processing, zinc and so on.

The whole process of direct reduction by Midrex

The position of the company in steel industry

As part of the country's comprehensive steel plan, Saba steel project has been defined in the countries' perspective of 1404 and, the above- mentioned studies revealed that if the country's macroeconomic goals are fulfilled, crude steel production in Iran will reach over 55 million tons per year. To achieve that, the necessary mechanisms have been foreseen so that the country could meet both the annual growth needs of the national economy and have the necessary place in the region and the global steel market.

Global market's assessment also demonstrates that the global trade and production process is moving towards developing steel industry in areas rich in energy and iron ore, including the Middle East and Iran.

Therefore, the relative advantage of the country and the development need for the national economy are the means to the national steel industry's development plans. Given that the product of the plan (steel ingot) has a very high export capability, it will therefore provide the economic opportunities needed to generate significant profits for shareholders.

It is worth noting that by operating the project and the exploitation of Saba Steel as a huge national plan, it will be possible to recruit more than 10,000 work force directly in Hormozgan from native forces and neighboring provinces. This will help create employment which makes a significant impact on the province's weak economy and serves as an important deterrent to social crime.

Most of the billet is currently provided by imports due to low billet production among major manufacturers and the country's need for it. According to Iran's Steel Master Plan and the Fourth and Fifth Steel Development Plans, if most predicted factories (which are behind the schedule now) produce bloom and billet, it will change the import policy and replace it with domestic production, given the domestic potentials and existed raw materials.