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Italy to invest in Iranian steel industry

6 November 2015 11:21 (UTC+04:00)
Italy to invest in Iranian steel industry

An Italian company has expressed readiness to invest some 1.5 billion euros to produce steel pipes in Iran.

At a meeting with Mehdi Karbasian, Iran’s deputy minister of industry, mines and trade, Italian SMS INNSE company CEO Alberto Bregante said that the project will prepare grounds for boosting Iran-Italy mutual economic cooperation.

Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) and the Italian company agreed to form a joint company to produce the pipes, IMIDRO said Nov. 4.

Karbasian also met with CEOs of Italy’s Danieli and Fata companies which have carried out several projects in Iran in the fields of design, supply, procurement, implementation and financing of steel and aluminum projects over the past 25 years.

The companies reportedly proposed Iran an offer worth 4 billion Euros for the country's steel and aluminum sector.

Once the MoU finalized, the two sides will establish a joint venture for launching projects on production of 6.5 million tons of iron ore as well as 3 million tons of sponge iron in Iran.

The Italian side will make 60 percent of the joint investment while the share of the IMIDRO will be 40 percent.

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