On 30 October Iran's minister of industries and mines Mr. Ali Akbar Mehrabian officially launched the construction of two steel plants in the southeastern province of Kerman.
Located in Baft city, with its direct reduced iron plant and melting shop Baft Steel Plant will have a capacity of 800,000 tons for production of semi-finished products (billet and bloom). It is one of eight steel plants to be established by the Iranian government in this less developed area.
The second plant to be established is Sirjan Steel Plant with a capacity of 0.8 -1 million tons of steel bars. The plant is being built by the private sector, and will require a $295 million investment, in addition to $18.6 million and $280 million worth of equipment to be supplied respectively by Iranian and foreign companies. The new plant will be located near the city of Sirjan in the province of Kerman, in close proximity to the Gol-Gohar Iron Ore Mine.