Iranian steelmaker Esfahan Steel plans to sell 73 percent of its shares to increase production as the nation rebuilds after years of international sanctions, according to Bloomberg. Esfahan Steel aims to increase production to 3.2 million mt in the Iranian financial year 2016-17, ending March 31, 2017, from 2.4 million mt a year earlier. The company’s steel output decreased four percent in the previous financial year as economic growth slowed because of low oil prices.
The Bloomberg report stated, “The Iranian Privatization Organization is overseeing the sale of the 56 percent stake in Esfahan that it took over from the Social Security Investment Co., the investment arm of the country’s main social security provider. The Social Security group was unable to pay for the stake in full. The Steel Pensioners’ Fund for retired Iranian steel workers owns the other 17 percent that is being put up for sale.” Bloomberg also stated that companies in South Korea and Luxembourg are interested in taking a stake.