Effects of Forex Price on Creation of Job in Steel Industry
Effects of Forex Price on Creation of Job in Steel Industry
TEHRAN – Financial Manager of Chadormalu Mining and Industrial Company (CMIC) says if one tries to construct a steel plant with the current foreign exchange price, it needs at least 5,000b tomans and this will be enough for creation of 500 jobs.

Mr. Seyed Mahmoud Seyedi said that the price of foreign exchange is essentially more important for creating jobs, adding that for example, around 1200b tomans have been invested in one of the mills of the CMIC, adding that the price of the dollar was around 2700 tomans.


He went on to say that this amount of investment could cover or create 500 jobs directly and it means 2.5b tomans has been invested for one person.

Seyedi reiterated that if they want to construct such a plant nowadays, it will cost around 5,000b tomans due to the forex price and current inflation rate, and the plant can create 500 jobs.

He noted that the company’s last developmental project was carried out last year as its new iron sponge plant came on stream. Seyedi asserted that the project led to creation of 250 jobs.

He went on to say that Iran’s mineral and steel companies have been under sanctions since long time ago and Trump’s sanctions have been nothing new.

Seyedi said that if the country acts smartly, it can pass from this stage, adding that the country has learned how to manage during the critical condition.

He admitted that the CMIC is not an export-oriented company and its products are distributed in the domestic market but it wants to export its steel billets and even it does not happen, it will not lose anything and it can sell its products in the domestic market. He said that the company was after foreign finances for the next projects but for the time being they are on hold due to the current recession.

Seyedi went on to say that since January, the mega-module direct reduction unit of the company has started its job and it has produced around 240,000 tons of sponge ore and it is expected the output of  the unit to reach 1.2m tons by the yearend.

  • source : IRAN NEWS