November 22, 2008

Iran and China inked steel mill supply agreements.

It is reported that Iran and China have sealed a EUR 131 million deal for the construction of a major steel mill in the central Iranian province of Yazd.

Mr Ahmad-Ali Harati-Nik Deputy Industry Minister of Iran on his recent visit to China said "China will soon begin the project for the production of steel through the electric arc process at Ardakan in Yazd. He said that the EUR 131 million projects will boost Iran's steel production capacity by 1 million tonnes."

Mr Harati-Nik said the state owned China Metallurgical Construction Group is expected to commence the project in late June.

The deal is in keeping with Iran's plans to significantly increase its steel production over the next several years.