Gholamreza Salimi
Mobarakeh Steel Company was established with a capacity of 2.4 million tons of raw steel production. Subsequently, production capacities of 3.2, 4.2, 5.4, and finally 7.2 million tons were established in MSC. The 7.2 million tons capacity was achieved about 10 years ago. However, due to constraints in energy sources, the company faced challenges in fully realizing this capacity in the subsequent years.
In 2018, we achieved a record annual production of 6,450,000 tons by implementing new management approaches focused on maintenance planning, maximizing productivity, and capacity optimization.
Changing the management approach was highly effective in enhancing productivity. Under this new approach, we maximized production during unrestricted times with an acceptable level of risk, avoiding periodic shutdowns.
We optimized our method between 2018 and 2022 by using the collective wisdom and expertise of our colleagues. As a result, in 2022, we achieved our goal of producing 7.2 million tons, reaching Mobarakeh Steel›s nominal capacity for the first time. For 2023, our production plan was set at 7.3 million tons, but we aimed to surpass this and reach 7.5 million tons.
Unprecedented energy constraints posed difficulties for this goal. However, vigilance in the maintenance scheduling and storage program of raw materials overcome the challenge, resulting in a production of 7,335,000 tons.
The production of Mobarakeh Steel has stood in a good indicator, both qualitatively and quantitatively. I’d like to extend my gratitude to all my colleagues in production, services and logistics units, headquarters staff, and all departments of Mobarakeh Steel Company for providing the necessary support for our operations
In addition to this issue, two other good things happened. First, we increased the quantity of production. Second, we achieved a significant improvement in quality. It’s not easy to increase the quality of products, but today MSC is at a favorable level in terms of quality.
In 2023, the quality index of our products reached 91.2%, up from about 89.1%, representing a more than 2% improvement in quality. Fortunately, we did not experience any significant incidents due to process failures, and our safety performance indicators were also favorable.
Quality and safety are often overlooked when prioritizing quantity, but this was not the case at Mobarakeh Steel Company. We experienced favorable conditions in these two categories last year.
The official opening of the new Mobarakeh Steel power plant was a successful event. The contract for this 59% efficient power plant was completed in record time, and it was ready to begin operations before its official opening last year.
Also in 2023, Mobarake Steel made the bold decision to revamp its strategic hot strip and cold rolling lines. This was done in a way that minimized disruption to the market.
This phase of the hot strip mill revamp is now complete. Hot rolling conditions are favorable today. Our hot strip mill is among the best in the world in terms of both quantity and quality. We are proud of our quality index of 99.89%, although we expect this numeral index go higher with the revamp.
We have planned three phases for revamping our cold rolling process. We finished the first and third phases last year, and we are currently working on the second phase. During one of the phases, we focused on automation. Throughout these phases, our downstream customers, including automotive manufacturers and home appliance factories, did not experience any disruptions in our production. This was due to effective management of the revamp process.
try. To sustain a position in the global market, it is essential to produce diverse high-quality products that meet standards and are competitively priced. Steel export contributes to the economic prosperity of the country and serves as a source of foreign exchange, positively impacting the economy. In 2023, Mobarakeh Steel prioritized supplying the domestic market and exporting 1,400,000 tons of its quality products, bringing in $715 million. There is potential to increase this figure by improving and facilitating the export route.
Additionally, Mobarakeh Steel products have played a significant role in boosting various industries including automobile manufacturing, machinery manufacturing, mining, shipbuilding, transportation, pipe and profile manufacturing, packaging, and energy production and transmission. Their positive impact has greatly contributed to the country’s economic growth and development. MSC played a crucial role in the water transfer projects from the Oman Sea to the Iranian Plateau, producing the necessary steel coils for the manufacturing pipes for these projects. This project continues to progress with the efforts of Mobarakeh Steel and the collaborative support of other relevant organizations.
Mobarakeh Steel is considered to be a pioneer in the field of green steel worldwide. The company utilizes Midrex furnaces and electric arc furnaces (EAF) for recovering and operating raw steel production. Additionally, Mobarakeh Steel is currently reviewing and studying other projects, which has solidified its position as one of the leading companies in this field.
