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
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.
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.
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.
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.
whole process of direct reduction by Midrex
position of the company in steel industry
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.
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.
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.
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.
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.