TEHRAN – The National Pension Fund of Iran, the owner of Persian Gulf Saba Steel Company, which produces 1.3 million tons of steel briquettes annually, has launched a €200 million expansion project aimed at boosting production capacity.

According to IRNA, Persian Gulf Saba Steel is Iran’s first producer of hot briquetted iron (HBI). As part of the company’s phased expansion plan, the construction of a second direct reduction unit has been set as a key objective.

The second direct reduction unit, with an investment of €200 million, will add 1.76 million tons of HBI production capacity per year. The facility, currently under construction on a 10-hectare site, is expected to create 400 direct and 5,000 indirect jobs.

Hojjat Mirzaei, head of the National Pension Fund, visited the Saba Steel plant in Hormozgan Province on Thursday, touring various sections, including the production line, control center, and expansion project site.

During a meeting with Hormozgan Governor Mohammad Ashouri Taziani and local industry officials, Mirzaei highlighted the pension fund’s commitment to industrial development. He stated that the expansion will increase the company's production capacity to 1.7 million tons, further strengthening Iran’s steel sector.

Mirzaei also announced plans to ensure a stable energy supply for the plant, including the potential construction of a dedicated power plant to meet the electricity needs of Saba Steel and nearby industries.

Hormozgan’s governor welcomed the pension fund’s investments, emphasizing their role in national development, job creation, and economic growth. He pointed out that the fund’s presence in multiple sectors, including steel, tourism, fisheries, and energy, is a significant driver of regional progress.

Ashouri Taziani noted that ongoing steel projects in the province have a combined capacity of approximately three million tons. One of these projects, currently 22 percent complete, is expected to contribute substantially to national production and revenue.

The governor also highlighted the construction of a 500-megawatt power plant as part of efforts to ensure a stable electricity supply for industrial operations in the region. Additionally, the pension fund is expanding investments in fisheries and coastal tourism, leveraging Hormozgan’s unique geographical advantages.

“These projects will not only enhance production and employment but also improve the livelihoods of pensioners by generating sustainable revenues for the fund,” Ashouri Taziani said.

He further outlined plans for residential development and the establishment of an executive club for managers, adding that Hormozgan’s strategic location in maritime transport presents additional investment opportunities in port infrastructure.

Persian Gulf Saba Steel is a subsidiary of the National Pension Fund’s investment arm. The company operates 13 kilometers from the Persian Gulf Mining and Metal Industries Special Economic Zone in Bandar Abbas.

Briquettes, a compressed form of sponge iron, play a crucial role in the steel industry. Many foundries and manufacturing plants convert metal scraps into briquettes, which are then reintegrated into production cycles, improving efficiency and sustainability in the sector.

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