First of all, please tell us about the history of Iran Alloy Steel Company.
Iran Alloy Steel Company is well known as the alloy and special steels producer in Iran and the Middle East region and one of the most advanced alloy steel producers in the world. The company was established in 1999 to produce different types of alloy steel that were demanded by Iranian markets. At the beginning the products were at the size of 16 – 120 mm round sections but recently regarding the demand of the market it has developed to 12 – 200 mm round sections. In addition to round shapes, strip and square sections are also being produced.
Please explain about special capacities and potentials of the company and its subsets.
Iran alloy steel Company has the highest level of technical knowledge in Iran and the Middle East to produce alloy steel. Given the company’s facilities and planned development projects, we have the capability to produce wide range of alloy steels used in different industries. Amongst the development plans in company’s agenda are production of seamless pipes with wide range of diameters, production of steel wire from 5.5 to 16 mm diameter and production of wire coils up to 32 mm diameter. Moreover, equipping heat treatment unit is being progressed in order to enhance the quality and quantity of the products.
Please explain about special products of Iran Alloy Steel Company. What are the company’s achievements in order to meet the specific needs of various industries?
Iran Alloy Steel Company has the highest quality and product diversity among manufacturers in Iran and the region due to production of various grades of alloy steel relying on Bohler technical knowledge and Danieli equipment and can address the need of domestic market and a part of international market. Products of this company are being used in various industries including automotive industry, machinery manufacturing, oil and gas, energy, aerospace, mining and processing, tool and instrument production and etc. Having heat treatment and finishing equipment, Iran Alloy Steel Company has the capability to offer a diverse range of high value-added and high quality products to domestic and international customers. During the previous years, with applying knowledge and experience in the research and development, the company managed to achieve various innovations in production of different types of steel to gain competitive advantage and meet the needs of customers. Some of these innovations are elimination of forge operation to produce cold rolled 1.2080 and 1.2436 steels, production of chrome 420 and chrome nickel 304 and 316 steels, production of specified grades for automotive industry, production of 30MSV6 micro alloy steel, production of 10B38 and 23MNB4 steels and developing sizes of strips, squares and round steels.
What are development plans of the company?
By consolidation of production conditions in the company and reaching planned capacity utilizations from 2000 to 2004, improvement of technical knowledge and increased human resources production capability and large infrastructural facilities in the company and growing market demand made development inevitable. Therefore, given the conceptual studies in 2005, the company set the following development green field and brown field plans on the agenda.
Under Ceiling Development Plans have been started to increase the output capacity to 500 thousand tons per year based on planned product basket and include: A) Kousar Project which is development of steel production unit with adding a complete production line including an electric arc furnace, ladle furnace and a four strand casting line. B) Infrastructural projects to develop water supply plant and power station development as well as setting up a new plant to supply industrial gases in order to address needs of increased steel capacity. C) Reviewing some of the balance projects for light and heavy rolling mills as well as heat treatment and finishing plants.
Setting up a steel making plant close to the existing facilities with capacity of 700 thousand tons which is planned in two phase; the first phase is to implement steel making plant with capacity of 700 thousand tons of steel billets and the second phase is to set up a seamless alloy pipe mill with the total capacity of 525 thousand tons.
Constructing a wire and rod rolling mill with total capacity of 250 thousand tons and setting up scrap processing facilities with total annual capacity of 300 thousand tons are the other two projects.
How was the company’s performance in progress of development plans?
In the recent years, despite imposed economic sanctions against Iran, currency rate fluctuation, high inflation rate and also recession in steel market, our company could progress in its development projects and accomplish two underceiling development projects and scraps processing plans; in addition to the aforementioned completed projects, the first phase of steel making plant is under construction currently. Moreover, regarding rolled wire milling plant, different alternatives have been reviewed and technical negotiations with suppliers have been carried out.
What kind of plans do you have to increase export and to promote your share in international market?
In international market, quality, price and delivery are three main parameters of advantage in alloy steel industry, so in order to reach a competitive price, our company is pursuing the policy of reducing costs while maintaining and improving the quality of the product. Also establishing a trading company and opening offices and warehouses in the target market are strategies for penetration and increasing market share by reducing delivery time and increasing availability for the customer. Facilitating the payment terms and receiving quality certificates from reputable European companies are among the company's plans in parallel to the removal of international sanctions. Also, considering the production and developing exports of high alloy steels grades such as hot work and cold work tool steel, high temperature steel, nitriding steel and stainless steel are in priority.
Which markets are the company's targeted markets for export?
At present, mostly we export to European countries especially Germany and Spain which proves the quality and acceptability of our products. In addition to these areas, Turkey is a current market of our products. Also, some countries of the Middle East are minor scale customers.
Moreover, we have reviewed the possibility of entering Asian markets especially south-east Asia, India, South Korea and also Latin America. We have participated in fairs, shipped sample products and negotiated with some regional traders. Given the quality and diversity of products, besides activities in different geographical areas, taking share of the market of different industries is now on the agenda. This needs to move from low and medium alloy steels to high alloy steels which will leads to covering demands and needs of industries such as power plants, instrument and tool production and aerospace in addition to automotive industry, machinery manufacturing and oil and gas industries.
How much have you invested on company's development projects and production of new products in order to have active presence in global market and which areas are the main focus of these investments?
The investments for under the ceiling development projects were EUR 65 million plus Rls 300 billion. The amount of investment for scrap processing projects were about Rls 270 billion and it is estimated that needed investment for the first phase of Yazd 1 project will be EUR 139.7 million plus Rls 3,350 billion.
Required capital to set up wire and coil mill with a capacity of 250 thousand tons is estimated to be about Rls 2,200 billion.
The investments have been focused on product development and diversification and increasing the quality and quantity of the production according to market needs.
Iran Alloy Steel Company; the Pioneer of Production
- Nov 29 2016
Iran Alloy Steel Company is the first producer of alloy steel in Iran. This company posse one of the most equipped and modern plants in alloy steel production business and is capable of exporting its products to many developed countries such as Europe. Mohammad Ebrahim Ghadirian, CEO of the company says that the high level of technical knowledge of alloy steel production in Iran Alloy Steel Company, production of high quality products and innovation in production of new products, gives high competitive capability to the company in comparison with its competitors.
First of all, please tell us about the history of Iran Alloy Steel Company.
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