Posted on 13 Feb 2019
South Kaveh Steel (SKS) has increased its share capital to IRR 15 trillion ($356.7m) from IRR 7 trillion to help fund the completion of its crude steelmaking capacity expansion, Kallanish learns from the Iranian firm.
The merchant billet producer is adding an additional 1.2 million tonnes/year of electric arc furnace-based steelmaking capacity to its existing capability of the same tonnage. The firm says commissioning will take place in the second half of the Iranian year through 19 March 2020. It will utilise 200,000 t/y of the new capacity at first, followed by 700,000 t/y the following year and 900,000 t/y the year after that. Sales are expected to double once the ramp-up is completed.
According to the Iranian Steel Producers Association, SKS’s exports rose 22% on-year in the seven months through 22 October 2018 to 497,500t. In the six months through 22 September its crude steel output reached 479,137t, according to the Iranian Mines and Mining Industries Development and Renovation Organization (Imidro).
Doubts have, however, been cast over how Iran's exports will fare after the US reimposed economic sanctions on Iran last year. Overall Iranian billet exports in the nine months through 21 December fell -11% on-year to 2.3 million tonnes.
SKS is part of Kaveh-Pars Mining Industries Development Company that also includes Arvand Kaveh Steel Company and East Kaveh Steel.
