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Iranian steelmaker SKS plans major expansion

Iranian steelmaker SKS plans major expansion
Issue Time:2016-02-03

The Kish South Kaveh Steel Company (SKS) in Iran claims to be investing heavily in steel production projects that will create around 1,000 direct and indirect jobs in the country.

CEO Ali Dehaqin, says that SKS intends to play an important role in the ongoing development of the Iranian steel industry.

“Annual [Iranian steel] production of 55Mt has been envisaged until 2025,” he said, adding that phase one of SKS’s steel production project was launched with a capacity of 1.2Mt/yr.

To date, SKS has produced 400 tonnes of steel using state-of-the-art equipment including an electric arc furnace (EAF/EBT/170/7500 model). The equipment in question is a CCM/6 strand/120-150-200 foundry machine with a tundish capacity of 30 tonnes and it is predicted to be capable of producing billets at nominal capacity.

Phase two of SKS’s steel production project is currently under way and is expected to come on stream in March 2017, according to project manager Shahram Salmasi. When phases one and two are completed, the company will be producing around 2.4Mt/yr of steel.

Dehaqin says that the establishment of three steel companies in different locations within Iran will contribute heavily to the continuation of steel production by SKS.

In the east of Iran, the East Kaveh Company is prioritising mining and the production of pellets and concentrates in addition to the procurement of raw materials, such as iron ore, for steelmaking. The Kaveh Arvand Steel Company is focused on rolling and the supply of long products and will be a regular customer for SKS steel.

SKS is located within the Persian Gulf Special Economic Zone, close to the sea and within easy access of the Shahid Rajaee port where there is unlimited access to seawater for the company’s desalination plants.

The Southeast Saba Power Generation Company (SSPGC) is also within the zone and intends to construct a combined cycle power plant. Phase one, which is currently under construction, will produce 500mW of electricity. On completion of phase one, SSPGC will provide enough electricity to meet the requirements of SKS’ phase two development, according to Shahram Salmasi, the SKS steel product manager.

In a bid to provide the industrial water required by SKS’ steel production units in phases one and two, plans are underway to build two oxygen units as well as direct reduction plants at the South Kish Kaveh Steel Company aimed at producing 55,000 cubic metres of water per day. Supply pipelines have already been completed.

Three desalination units with capacities of 5, 10 and 17,000 cubic meters will pump a total of 32,000 cubic metres of water into the production cycle. Other units will come on line gradually and as required.

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