Sirjan Jahan Foulad Company started its activity in 2010 by Kerman Province Development and Prosperity Company with minimum capital of 357000 Euro. In late 2010 almost 51% of its stock was assigned to Golgohar Industrial and Mining Company and 49% of its stock is for Iranian Copper Civil Servants Pension Organization.  Ali Abbaslou, the CEo of Jahan Foulad Sirjan believes, Golgohar region with the abundance of mines especially iron ore, enjoys plenty of potentialities for comprehensive development. He added, steel production factories as the last ring of added value chain of iron ore must be built next to mines or sea in order to prevent extra costs.  The CEOs of companies in the region are pursuing completing iron ore mines added value chain to the final product that is steel (including steel ingot, rolls and rebar) beside Golgohar mines complex.

Please explain more about the condition and status of Jahan Foulad Sirjan Company and the position of this company in Golgohar region.
ahan Foulad Sirjan sponge iron reduction factory had official opening in late 2014. Fortunately this company managed to produce 8% more than its capacity and in first quarter of the year 2016 it produced sponge iron equivalent to 50% of its whole production in 2015. Moreover, ingot, rebar and roll production projects are under construction. Currently Jahan Foulad sponge iron factory has reached to its maximum production capacity. Given the partnership between Golgohar and Jahan Foulad Sirjan in production projects, this partnership is in favor of
both companies because on one hand given the fact that providing raw material of Jahan Foulad is almost zero, the
presence of this company in Golgohar region can guarantee raw material and
on the other hand, given the presence of Jahan Foulad Sirjan, this company can be the permanent customer for Golgohar iron ore and be complementary for production chain.

What is the method of financing in this company?
Fortunately, Jahan Foulad Sirjan enjoyes the highest credibility and guarantee in banks. Moreover, given the plan to produce 2 million tons of sponge iron and ingot in second phase, an international tender was held in the form of consortium and Jahan Foulad priority is that the financers of this company provide financial resources.  One of the financing methods is that marketing and financing companies do the marketing and selling the products. Currently two companies agreed to work with this method. The share of Jahan Foulad in this method of financing is 85% and its minimum profit is 15%. Currently the international ground for financing is ready and many international companies and banks have welcomed financing Jahan Foulad projects. Regarding melting project which has 50% progress, there were negotiations with German companies and all of the Jahan Foulad contracts have been transferred to another company. Jahan Foulad has applied for loan through the German company and all necessary measures have been carried out. It has been decided to open an LC on behalf
of Iran in one week in order to do the exchanges. Appropriate measures have been taken on behalf of Iran to remove obstacles and it seems this problem will be resolved soon and we will see the presence of foreign investors in Iran. 

Given the lack of water in Sirjan, what are the company’s considered ways to supply water?
In Golgohar region there are only two ways to make added value in mines, first is selling iron ore and export it abroad in raw form and low added value and second producing steel with more added value in mining regions.
With experiences in the field of steel production in the world, due to vicinity of Sirjan to Persian Gulf basin, the water problem can be solved easily. Currently the project for transferring water from Persian Gulf to mining and industrial centers in central provinces of Iran such as Kerman, Yazd and Khorasan is under way and this project is more profitable than transfering iron ore from mines in the center to south especially Hormozgan province. After transferring water, even if the reserves of mines in Golgohar come to an end, it will be possible to guarantee the survival of steel-makers in the region by importing iron ore.

What type of technology have been used in producing steel and sponge iron and which companies offer them?
The technology used in in sponge iron factory is Midrex and in melting unit the Electric Arc is used. Generally, all equipment of Jahan Foulad Company are European and this company hasn’t purchased Chinese equipment. In addition to this, the technology used in rebar production factory is Italian and an Italian – Indian consortium with Foulad Technic Company as contractor are building it. Advanced technology and equipment leads to production of very good products in terms of quantity and quality.

What are the company’s plans to enhance the quality of products and increase production and development of subsidiary companies? 
Due to presence of this company in Golgohar region, the raw material for the company is always guaranteed. This company receives its raw material with conveyor belt from a few kilometers away. Therefore, due to quality and closing price, Jahan Foulad products have high strength to compete with foreign and domestic products. On one hand, in human resources section also due to presence of proficient and young teams, the efficiency of human resources is very high, on the other hand, these teams are able to do all required measures for steel maintenance self-sufficiently. 

What are the main target companies to sell and export products and what measures have been taken to expand target markets?
Our main international target markets have been Arab countries especially Iraq, also other countries such as Germany and India, and due to high quality of the products, every customer who had taken the sample for marketing has signed contract to purchase the product. In spite of recession in Iranian steel industry, Jahan Foulad products are being pre-sold and for the first time in Iran, this company managed to export 20000 tons of sponge iron to Germany whereas none of the Iranian spomge iron producers hadn’t entered Germany Market

 What have been done by Jahan Foulad Sirjan for branding and introducing products to international and Iranian customers?
Given the short life of the company, no one could predict this company becomes one of the successful brands but it happened with uninterrupted effort and currently Jahan Foulad is one of the creditable brands nationally and internationally. Part of branding became possible by attending international fairs and sending articles to these type of events. Moreover the company has managed to receive different awards and appreciation tablets from Iranian Quality Association, Top Projects Association, Iranian Commerce Chamber, Ministry of Industry, Mine and Trade.

What are the potentialities and advantages of Jahan Foulad to attract investment and develop units?
Currently a one million ton sponge iron unit is active.  The melting unit is under construction with 40 to 50 percent progress, this unit equipment is from internationally famous brands like Denili. The next project under construction is Bardesir 500000 tons rebar with the expansion capacity to 700000 tons and this project is the continuation of ingot production line. Currently we have 25% of shares in wire production project in Kerman in order to complete the production chain. In another project, we want to produce alloy rebar by installing a 300000 tons furnace. Moreover, there are other development projects such as one million ton sponge iron and one million ton steel ingot that we try to finance it with EPCF which leads to production of 2 million tons steel ingot and 2 million tons sponge iron and two million ton roll products like rebar, steel rolls and pipe. Generally we are ready to attract foreign investment and due to offered tenders, many international companies in the form of consortium with Iranian companies have welcomed investment in our projects.

How your company contacts with its International and Iranian Customers?
Signing contracts with famous international companies to purchase equipment and contacting with international customers indirectly has introduced our company among well-known sponge iron production companies. For instance when Denili and SMS present their CV to sell their products they mention the name of our company that is a direct and indirect advertisement for us. Generally, given the fact that our company has contract with many famous international companies and our products have required quality, every foreign company comes to Jahan Foulad Company to buy sponge iron from Iran.

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