Economic sanctions result in new line of production for Iranian steel companies. Since the US left the Nuclear Deal with Iran and imposed sanctions, the Iranian economy has been facing tough days. Moreover, bad management and other fundamental problems have exacerbated the difficulties. As one of the main consequences, the Iranian Rial has significantly lost its value, which made several foreign products and raw materials becoming more expensive.
To the extent that foreign raw materials are concerned, production of some goods has become economically inefficient.
Iranian companies, therefore, started to produce such raw materials locally. One of the examples is the production of railways. While previously considerable parts of rails were imported, Iranian steel companies now supply a significant amount of the local needs.
Within the past two years, 900 km new railways was built and laid, for which 57 new tunnels and 18 bridges were also constructed, says Mansour Yazdizadeh, CEO of Isfahan Steel Company.
However, this figure is far less than what the Government has set as a goal for 2025. The goal is to have 25,000 km of railways, which currently is around 13,500km.