Khouzestan Steel acquires control of Oxin Steel
Posted on 16 January 2020
Khouzestan Steel (KSC) has acquired a 60% stake in heavy plate producer Oxin Steel, thereby completing its value chain with the production of finished steel, says KSC managing director Ali Mohammadi. The transaction will be completed by the end of the Iranian year through 19 March 2020.
Oxin has a 1.05 million tonnes/year heavy wide plate capacity, of which 210,000 t/y can be heat treated. KSC is one of its main slab suppliers. Oxin recently signed an agreement with Mobarakeh Steel and Ahvaz Pipe Company to produce 56-inch API 5L X70 pipe, thereby eliminating the need to import the product.
The move follows KSC’s acquisition in 2019 of a majority stake in Sanabad Industrial & Mineral Development Company, the 1.5m t/y iron ore concentrate and pellet producer. Sanabad’s aim is to increase capacity to 5m t/y.
Despite US sanctions, KSC expects to achieve its crude steel production plan this Iranian year of 3.6m t/y. “The 2mt export priority plan is a sign of conquering global markets and gaining credit among global steel producers,” Mohammadi says. “In recent years, in the wake of tougher sanctions… [... KSC has] steeled its resolve and turned the threat into an opportunity.”
In the eight months through 21 November 2019 KSC produced 2.51mt of crude steel, exporting 1.2mt (see Kallanish passim).Source : Kallanish