On March 16, Saba Steel, Iran’s first direct reduced iron producer, announced that it would invest 200 million euros (about 221 million U.S. dollars) to build its second direct reduced iron plant to produce hot briquetted iron (HBI). The project, led by the Iranian National Pension Fund, aims to significantly increase Saba Steel’s production capacity and strengthen Iran’s steel industry.
Saba Steel is located in Hormozgan Province, Iran, about 13 kilometers from the Persian Gulf Mining and Metal Industry Special Economic Zone in Bandar Abbas. Its first direct reduction iron plant has an annual production capacity of 1.3 million tons. The new direct reduction iron plant project covers an area of 10 hectares with an annual production capacity of 1.76 million tons. It is expected to create about 400 direct jobs and about 5,000 indirect jobs for the local area.
It is reported that the local area is also planning to build a power plant to meet the electricity needs of the new plant of Saba Steel Company and other industries in the region.
