Primetals Technologies and Fakoor Sanat Teheran have signed a co-operation deal with 1.8 billion euros for steel projects in Iran. It is likely that the agreement will be extended to cover further projects.

Yasukuni Yamasaki, CEO of Primetals Technologies, said the agreement was an important milestone ‘on the path to enhancing the position of Primetals Technologies as a leading technology supplier to the steel industry’.

According to Yamasaki, Iran is one of the world’s 15 biggest steel producers with large deposits of iron ore and plentiful energy resources. “The economic development of the country suggests that demand for steel will increase in many sectors, especially in infrastructure,” he said, adding that the Iranian government plans to more than double its steel production capacity over the next decade.

The deal struck between Primetals and Fakoor Sanat Teheran will cover all stages of the value chain in steel production.