Iran’s Esfahan Steel Company has issued tenders for a $65m expansion at one of its rolling mills with a deadline for bids of 21 August.

A source tells MEED that the company wants to expand its operations at Rolling Mill 650 in the Esfahan province, in central Iran, to include 100,000 tonnes-a-year of rail products for the local market.

“The mill needs modification so Esfahan Steel has made a tender for straightening equipment and rail finishing equipment,” the source says. “The company does not want to change anything in its hot rolling process, but it needs additional equipment for finishing of the rails.”

The scope of works for the contract includes sawing and drilling units to accompany the straightening and rail finishing equipment.

Several international steel plant technology companies are believed to be bidding including Italy’s Danieli, Germany’s SMS Group and Austria’s Siemens.

“Iran has a different approach to other countries in the region,” the source says. “Usually contracts will state that a local contractor also has to be involved.”  

SMS Group confirmed to MEED that it was bidding for the contract and that it has teamed up with the local Iran International Engineering Company (Iritec) as the construction partner.  

Esfahan Steel is planning to spend around $500m on upgrading its facilities with further expansion work planned at two other rolling mills.