The local Kaavian Steel Company has completed technical evaluation of five bids to increase capacity at its existing plant. The company says it plans to open commercial envelopes in August and hopes to start work on the project in October. The 56-month scheme will raise production capacity to 1.5 million tonnes a year (t/y) from 800,000 t/y (MEED 2:12:05).
The five bidders are: Germany's Mannesmann Demag, Italy's Danieli & Company, Italy's STB Tecnosiderurgica Bresciana with Germany-registered Mines & Metals Engineering, Shanghai Golden Source International Economic & Trade Development Company with Shogan Company, both of China, and the local Foolad Gostaresh Industrial Company. The engineering, procurement and construction (EPC) contract also calls for financing, which foreign companies are at the moment unwilling to bring to Iran's uncertain political environment.Kaavian is a subsidiary of Iranian Mines & Industries Renovation & Development Organisation (IMIDRO), part of the Mines & Industry Ministry.