Speech by the CEO of Isfahan Steel Company in Metafo 1404

The CEO of Isfahan Steel Company announced the company’s plans for production sustainability, cost management, and moving towards profitability at the 22nd International Exhibition of Metallurgy, Steel, Foundry, and Mining (Iran Metafo 1404).

The CEO of Isfahan Steel Company, referring to the challenges of recent months, said in a press conference: “During the 12-day war, the production of iron ore was reduced to a minimum, as parts of the production lines were forced to stop. At the same time, the consequences of the explosion in Shahid Rajaee Port and the truckers’ strike also affected the company’s supply of raw materials and transportation flow.”

Emphasizing that Isfahan Steel Company is on the path to improvement and profitability, he added: “In the current situation, we do not have any plans to increase capital, and our focus is on managing and reforming the cost structure.”

He considered the energy sector to be the most important cost factor of the company and stated: 46 percent of the total production cost in Isfahan Steel Company is allocated to energy; an issue that has forced us to follow up more carefully on ways to reduce costs and optimize consumption.

The CEO of Isfahan Steel Company continued: In the area of ​​coal supply, part of the factory’s needs must still be met through imports, but since the government does not allocate the necessary foreign exchange for coal imports, studies have been put on the agenda to change the production method. Of course, this change does not mean moving towards electric arc production, and such a program is not currently on CEO of Isfahan Steel’s agenda.

It is worth noting that Isfahan Steel Company has drawn a positive outlook for continuing its profitability trend this year by focusing on reforming the production structure, sustainable supply of raw materials, and cost management.