German Firm Helps Increase Steel Smelting in Iran

SMS Group, a private firm that builds steel, aluminum and copper smelters, has signed a $ 400 million contract to build facilities that would add 3.5 million tonnes a year to expand production in Mobarek, Iran, with potential growth to 5 million tons.

At the same time, Tehran's ambitions alarmed European metallurgists, as exports from Iran to Europe reached 1 million tons per year, placing it in the position of the third exporter after China and India. European companies are promoting higher productivity in Mobarek, targeting the domestic market rather than exporting. But analysts believe Iranian demand will remain sluggish, with producers looking for economic gains overseas.

Germany is Iran's main trading partner, with bilateral trade volume of around € 2.9 billion in 2016, up from € 2.4 billion in 2015.