Iran plans to more than double its steel production capacity over the next 10 years as relief from sanctions opens the sector for overseas investment, according to the head of one of the country’s largest steel producers.

Capacity is expected to increase to 55 million tonnes a year (t/y) by 2025 compared with a current capacity of 26 million t/y, said Khouzestan Steel’s managing director, Mehran Abbaszadeh, speaking at the Middle East Iron & Steel conference in Dubai on 15 December.

Over the last ten years, Iranian steel production has grown by an average of 6.31 per cent and now represents 58 per cent of total Middle East production capacity, Abbaszadeh said.

Khouzestan Steel, based in Ahwaz in southwest Iran, is increasing its capacity to 5 million t/y by 2017 from a current capacity of 3.7 million t/y. The company, which produces slabs, billets and blooms, plans boost capacity to 13.6 million t/y by 2025 in a major expansion programme.

The company is expected to produce 3.45 million tonnes in 2015 and export 1.07 million tonnes. Its largest main export markets in 2015 were Saudi Arabia, Jordan, the UAE and Oman.

Khouzestan Steel holds a 60 per cent stake in Shadegan Steel, which is also based in Khuzestan province. The company aims to develop 4.4 million t/y of direct reduced iron (DRI) capacity over three phases. It will also include plate and rebar plants.