As many steel producers around the world are working to lower demand, as are domestic manufacturers, Mobarakeh Steel focuses on large national projects. Beyond its important role in supplying steel sheets to pipe production for these projects and contributing to national development, this approach exists as an important factor in maintaining profitability during challenging economic situations.
A pivotal and effective role in Mobarakeh Steel’s national water relocation project
As one of the main steel suppliers of Iran’s large-scale water transfer initiatives, Mobarakeh Steel will play an important role in providing raw materials for pipelines that transfer water from the Oman Sea and the Persian Gulf to central and eastern provinces including Sistan and Baluchestan, Yazd and Khorasan. This success reflects the company’s previous contribution to the water relocation project in Isfahan.
The company produces approximately 1 million tons of special steel sheets for over 1,200 km of pipes. These high strength sheets are manufactured using specific grades such as the X65 and ST52, allowing thin materials without compromising strength.
Low carbon steel sheet production
The steel sheets produced for the water transfer project are characterized by a minimum yield strength of 450 megapascals and a tensile strength of at least 535 megapascals. Using advanced simulation technology, Mobarakeh Steel is moving towards production of low carbon steel grades, increasing product quality and sustainability.
Ensuring water safety for Isfahan’s industry and revitalizing the Zayandel Rud River
The benefits of these water transfer projects with the participation of Mobarakeh Steel are diverse. Ensure water security for Isfahan’s industry. Supporting the revival of the Zayandeld River. Lower pressure on groundwater resources. The struggle against land subsidence; creation of employment; fostering industrial development in central Iran.
Furthermore, supplying domestically produced steel sheets reduces foreign currency outflow. Amid the current national challenge, where many companies face energy imbalances that lead to losses and even losses, Mobarakeh Steel’s strategic investment in renewable energy power plants and energy self-sufficiency ensures the company’s continued production and profitability.
Supply of steel sheets for national pipe manufacturers
Another positive development is Mobarakeh Steel’s provision of steel sheets to domestic pipe makers, which will encourage the transition from expensive imports to local supply. The move not only supports employment, but also guarantees the supply of steel sheets for specialized water transfer pipes, ultimately bringing benefits to the company’s shareholders through sustainable profits.
It is worth noting that some of the largest pipe manufacturers, especially those that produce water transport pipes, belong to the Mobarakeh Steel Group. Their production and operational benefits lead to great sustainable benefits for Mobarakeh shareholders.
Mobarakeh Steel: The pillar in meeting Iran’s steel needs for water transport projects
As a pioneer in supplying raw materials to national projects in the movement of water, oil and gas, Mobarakeh Steel has declared full preparations to meet the greatest demand for these initiatives. By producing high value-added, environmentally friendly products, the company plays an important role in moving forward with national infrastructure projects.
Given these projects and the national resolve to implement active involvement of Mobarakeh Steel, the company is poised to remain a cornerstone to meet Iran’s steel requirements for water movement.
Guaranteed demand for steel sheets amid the market recession
As droughts are projected to last throughout the nation and surrounding areas, Mobarakeh Steel’s central role in projects such as water movement ensures stable and predictable demand for steel sheets. This guaranteed demand protects the company from serious fluctuations in the global steel market.
These projects’ sheets are produced from premium grades such as the X65 and ST52, giving them a higher added value. As a result, manufacturing these sheets under current economic conditions will provide better profit margins compared to standard products.
Mitigating export-related risks
Another advantage of focusing on Mobarakeh Steel’s water transfer project is the risk reduction associated with exports. Export risk decreases when faced with challenges such as competition with China’s difficulties in steel and currency transfers, and prioritization of domestic markets and national projects.
Improve profitability through targeting and intelligent measures
Currently, Mobarakeh Steel pursues strategic and intelligent measures including optimizing production processes with knowledge-based investment and support, leveraging advanced technology to reduce production costs, increasing energy efficiency in production lines, and diversifying products, developing national projects, developing advanced additional products, investing in research and development of advanced products, managing inventory, and completing the supply chain through the supply of inventory. These initiatives aim to maintain continuous improvement, including profitability.
Active and shocking presence on the ground
Water relocation projects are expected to continue, and its strategic importance has kept Mobarakeh Steel a proactive and impactful stance. Oversees previous strategic approaches to energy self-sufficiency in gas and water supply.
Turning threats into opportunities through sound management decisions
A wise and timely management decision has transformed this national asset from threats such as energy imbalances into a country’s growth opportunity. Projects such as the construction of a 914 MW combined cycle power plant and a 600 MW solar power plant, the use of urban and industrial wastewater in the production cycle, and overcoming sanctions through localization of more than 90% of materials, parts and equipment exemplifying these results.
Sustainable long-term revenue and expertise development in special products
Mobarakeh Steel’s involvement in these strategic projects, together with continued investment in the development of Iran’s steel industry, including establishing a second hot rolling mill, will also rob a long-term sustainable revenue stream, strengthen the expertise development in the production of specialized products for infrastructure projects, and strengthen its position as a major supplier of domestic industry.
Strengthen national resilience and development through Mobarakeh Steel’s projects
Today, producing various steel sheets to meet the needs of the domestic market and successfully exporting to generate foreign currency is only part of Mobarakeh Steel’s mission. According to many experts, multiple ongoing projects within the group have contributed significantly to the group’s resilience and the improved steady development of the country.