Mining News -Minister of Industries, Mines and Trade Mohammad Shariatmadari awarded an accolade to MSC Managing Director Dr. Bahram Sobhani and praised the performance of the company’s management and staff.
In the ceremony, which was held at the IRIB International Conference Center in Tehran, the industry chief hailed the Industrial Management Institute (IMI) for naming and praising the country’s top companies and said the conference – which has a good reputation in the industry sector – has produced valuable results.
According to the correspondent of the Steel Newsletter, he further said that the country needs to work out detailed and more effective plans by taking the initiative and following the example of developed nations and leading companies in the world. “This enables domestic companies to seize the existing opportunity.”
As for the growth of the industry sector in previous years, the minister said, “As a country which is moving forward, Iran is now in a favorable position. Nonetheless, there are some who insist on spreading dismay and hopelessness in the country.”
Shariatmadari said the train of the country’s economy is on the move. “Industrial growth which stood at -10 percent in previous years is now in positive territory (5 to 6.5 percent). This means the train, which is now back on track, should gather speed and close in on its destination. To make this a reality, the country needs the cooperation of industrialists and thinkers.”
Referring to the post-nuclear deal conditions in the industry, mine and trade sectors, he said, “Foreign investment has posted remarkable growth in the country. As much as $9.7 billion in direct investment has been absorbed, of which $2 billion has been channeled to the industry sector. As many as 224 production units have obtained permits by absorbing foreign direct investment; 50 percent of these units have come on line following the conclusion of the nuclear deal.”
He then recalled the positive measures taken on the development front and said overall investment in development projects, which previously hovered around 10 trillion tomans, has tripled under the eleventh and twelfth governments and now stands at around 30 trillion tomans. “The budget for the next Iranian year (starting on March 21, 2018) has envisioned over 40 trillion tomans to be dedicated to this sector in partnership with the private sector. Thanks to these measures, development projects will have grown by 360 percent in the year to March 20, 2019.”
Shariatmadari pointed to the one-crop economy and said top companies should have a stronger presence in exports, adding in assessing and naming top companies, exports and the global valuation share should also be taken into account. “That Iranian companies offer their products at home is not sufficient; the country instead needs to move toward conquering global markets.”
Top companies should pay more attention to exports, as well as to efforts to claim a bigger market share than their rivals, development of export markets and diversity of their export items, he said.
Industrial exports now account for 17 percent of the country’s overall exports, he said, adding the figure can grow to 35 percent.
The industry minister termed as significant efforts to raise productivity in the industry sector and said, “Iran is facing water shortage, but energy is cheaper in Iran than in any other country in the world.”
Companies in the industry sector should walk down the path to merger and turn small businesses into conglomerates so that they can maximize their productivity, the minister said. “This is the only way forward for small-sized companies to smooth the path for themselves by tapping into the potential of giant companies and bolstering the export-oriented groups.”
Statistically speaking, Shariatmadari stated, the top 100 Iranian companies represented in this conference account for as much as 53 percent of the country’s non-oil exports. He also called for more attention to be paid to non-oil exports.
During the ceremony MSC chief Dr. Bahram Sobhani was awarded an accolade. Afterwards, he told reporters that on the back of tireless efforts by the Industrial Management Institute, the endeavors of the managers and staffers of all Iranian companies are reviewed and assessed based on predetermined indexes each year so that the companies which are a big name on the economic front are named.
In the 20th edition of IMI-100, indexes such as sales and revenues, added value, exports, and job creation were used to assess Iranian companies, he said, adding as the biggest steelmaker in the country and the Middle East region, Mobarakeh Steel Company was named the first, among 100 top companies, in terms of base metals. “The company finished fifth as far as added value was concerned. This showsthat Mobarakeh Steel Company, which has the entire steel production chain, can create more added value.”
Dr. Sobhani went on to say Mobarakeh Steel Group is a powerful group of steel producers and has all the links of the production chain from start to finish. “In fact, creation of added value along the links of this chain – from iron ore to end product – helps the company generate the highest added value for its shareholders and stakeholders.”
Last year (ended March 20, 2017) Mobarakeh Steel Company finished 10th in terms of added value, he said, adding this year the company has climbed five notches to rank fifth. “On top of that, MSC came in first among steelmaking companies as far as the sales of base metals are concerned. It earned more than 13 trillion tomans from such sales.”
As for MSC’s target production in the Sixth Development Plan and the position of the steel sector in the national plan, the managing director said Mobarakeh Steel Group – which includes Mobarakeh Steel Company, Saba Steel Complex and Hormozgan Steel Company – has currently set a production target of 10.3 million tons of crude steel. He expressed hope that the group’s production capacity hits the 12.8 million ton mark by March 20, 2020.
To that end, the group has plans to launch Sefid Dasht Steel Complex in Chaharmahal and Bakhtiari Province and develop the production capacity of Hormozgan Steel Company by 1.5 million tons, he added.
Dr. Sobhani further said the 2025 Outlook Plan has envisioned production of 55 million tons of steel. “MSC has decided to maintain its 50 percent share of the country’s overall production by producing 25 million tons of steel. To that end, it has worked out expansion plans which will be inaugurated in three years. There are some plans which are still on the drawing board, though.”
The MSC chief said the company’s expansion projects have mainly been implemented in the south, namely in areas such as in Chabahar and Bandar Abbas.