TEHRAN – The acting head of the Industrial Development and Renovation Organization of Iran (IDRO) has said that manufacturing various types of oil pipes by domestic producers has saved the country over €60 million.

Amir Bayat made the remarks during a visit to Esfarayen Luleh Gostar steel pipe manufacturing complex in North Khorasan Province, IRNA reported.

According to the official, the Oil Ministry has put an order for the construction of 40,000 tons of oil pipes by the mentioned complex which will prevent the outflow of the said figure.

Bayat noted that in addition to preventing the outflow of foreign currency, the final cost of these orders will be about 4.5 trillion rials (about $107 million) cheaper for the ordering side.

The official praised the Oil Ministry’s approach for supporting domestic production and noted that such acts will stimulate economic growth and production boom in this industry.

He also called for coordination and communication between various oil industry organizations and companies to place their orders cumulatively so that it would make the complex able to plan and prepare the orders in a shorter time and with less residue and waste.

Luleh Gostar of Esfarayen is the only manufacturer of seamless steel pipes, included casing-tubing required by the oil, gas, and petrochemical industries.

Industrial Development and Renovation Organization of Iran was established in 1967 to develop the industrial sector and to accelerate the industrialization process of the country.

Since the re-imposition of the U.S. sanctions, Iran has been pushing for a boost in domestic production in industrial equipment and machinery to lessen its reliance on foreign trade partners for supplying such items.

Back in December 2019, Chairman of the Board of Directors of the Iranian Association of Manufacturers of Oil Industry Equipment said nearly 85 percent of the country’s oil industry equipment was produced based on indigenized knowledge and technology.

EF/MA