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A brief biography of engineer Gholam Reza Keramati Fard Managing Director of HEPCO Born in 1956, Mr Keramati Fard joined HEPCO as a trainee at the age of 19 when he was a university student. Early in 1980 he was appointed as the manager of Central HEPCO Repair Shop. In1987 he continued his career in Technical Management and Maintenance, and Management of Executive branch of HEPCO In1994 he became a member of Board of Directors and also Technical Deputy of HEPCO Engineering and Parts. Since 2001 he is managing director of HEPCO Keramati Fard is a specialist in all machinery of road construction affair – Maintenance, Spare Part, Managerial systems, Production affairs, Compiling Production and Manufacture, Equipment Choosing and Production line designing. He got his Bsc from Khajeh Nasir Toosi University and Passed Operational Management Course in Iran Industrial Management Institute (IMI). |
HEPCO
(Heavy Equipment Production Company):
A Brief History.
As a joint stock Company, HEPCO came to existence on February 1974
with participation of Iran Industries Development and Renovation
Organization (IDRO) and a private investor. The production complex was
built in land vast 100 hectare with a 40000 square meter production
area in the city of Arak (an industrial Pole in Iran) in 1976. At that
time the complex activity was limited to assemble (100%) two model of
bulldozers and one model roller (with brand of Internash) By
1984 The development plan of the complex was ratified and became
operationalwith technical assistance of Volvo and Liebherr. The main
goal of this development plan was manufacturing main parts (body) and
metal components of road construction heavy machineries. On this
basis a 60000 production area was built and necessary modern
machineries and equipments were Purchased and erected. These goals
were achieved by producing 2100 various road building machineries each
year at the first phase, then with new investments the capacity grew
to 4800 various machineries a year in 18 type. The types are included
wheel loader, skid loader, wheel excavator, crawler excavator,
bulldozer, dump truck, vibratory roller, vibratory padfoot roller,
Pneumatic tire roller, asphalt paver and static roller. In
February 2004 HEPCO was accepted in the Tehran Stock Exchange (T.S.E).
In February 2007 HEPCO became fully Privatized.
HEPCO subject of activities The main subject of HEPCO activities was: design, produce and assembling heavy machineries especially for road construction, agriculture and industries and also design and manufacture of equipments for industrial complexes, metal industries, steel, power plants, oil, gas and petrochemical utilities/accepting representation of trading and various authorized trade and industrial activities related to a foresaid subject.Recently on December 30, 2007 Subject of HEPCO activities were evolved where Some new topics were added to former activities; The new area of HEPCO activities are: design, manufacture, produce and providing heavy machinery especially in urban services and constructions design, manufacture and providing raw materials and equipments of industrial and services complexes investment and new trade activities (export and import) new activities in industrial, construction and services contracting Other activities which directly or indirectly related in to HEPCO activities. HEPCO is authorized to do aforesaid activities independently or by other real Persons or legal entities – Iranian or foreigner.
HEPCO’s Capital Investment
Initial capital investment of the company was 30 million Rials which during nine period increasement , on February 2005 reached to 331,5 billion Rials.
HEPCO Trade Partners
At the Present time HEPCO is cooperating with some first class international companies. HEPCO’s main trade partners in machineries are Ingersoll – Rand, Liebherr, New Holland, Komatsu and Volvo and in component building companies such as Deutz, Berco, Saucer Danfoss, Rexroth (Bosch Group) and Carraro. From the beginning interaction and cooperation with superior class companies have been in HEPCO’s agenda. To complete its mission, HEPCO utilizes it’s affiliated companies “HEPCO Engineering and Parts Co. “and “Energy EquipmentProduction Co- TETA” – Plus foreign first class companies. “ In internal arena a network of domestic manufacturers and producers, form the domestic provide chain of HEPCO in raw materials provide, casting metal parts, rubber parts, chemical material and synthetic paints mainly via HEPCO Engineering and Parts Co.
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The company |
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The company Endeavour is that the parts, components or machineries
which are produced by HEPCO brand stand in the first place from
qualitative respect and in many cases HEPCO is self sufficient in
design and production.
Affiliated Companies HEPCO Engineering and Parts Co.
The company was founded in March 1992 IDRO then in March
1994 was transferred to HEPCO. In accordance with the country’s
macro policies and as engineering arm of HEPCO, the company was
established to generate and develop necessary potential and structure
for upgrading technical know – how and operational capabilities
for HEPCO’s Use. The main subject of the company is
designing and manufacturing and assembling components and parts of
heavy road constriction machineries road building, mine working, and
their related equipments, and also trade activities. The company
sees it’s mission as to become a progressive unit in design,
production engineering and providing parts and compete in
international arena and active presence in the target markets.
Energy Equipment Production Iman Rasa (TETA)
The Company was established in 1994. The main subject of its
activities are design, manufacture, production, assembling components
and complexes of road construction and agricultural machineries and
completing services operation trade and contracting. TETA also
has allocated some of its capacities for participation in
designing, procurement, production and installationof the country’s
giant projects in Oil, Gas and Petrochemical industries and also
generating equipment for hydro electric gas turbine and combined
cycle Power Plants, equipment’s for iron, steel production lines and
heavy structures, heavy rail, ceiling and marine cranes.
Iranian Heavy Machineries Leasing Co.
Due to comprehensive development plan in infrastruct ural sector
and also mine and industry and increasing the demand for these
sections machineries and equipment , and considering financial
limitation of customers and utilizing progressive and effective
patterns of leasing industry from the other, establishment of a
specialized leasing in heavy road construction and mine machineries
became essential. In that respect and by approval of IDRO, the company
(Iranian Machinery Leasing Co) came to existence on June 2005.
The main subject of this company is leasing, paid installment or
credit purchase of road construction, mine, agricultural and
industrial machineries and also authorized and related operation
and transaction.
After Sales Services
This is the competitive privilege of HEPCO. HEPCO productions
are manufactured corresponding latest global standards and with
the European level technologies. HEPCO has no competitor in the
Middle East and North Africa. “Purchasing HEPCO Products is an
investment because the machineries are constantly at work making
revenue for the owner”. For sustainability of the work of
machinery HEPCO organized production chain –procurement
manufacture and technical services. At the moment HEPCO holds 14
branch of after sales services around the country and in future this
service would cover all parts of the country.
Quality Management
From 1995 HEPCO adopted quality management based upon ISO 9001 standard
and obtained the related certificates. Then from the year
2000 the company has improved managerial system with process
oriented logic utilizing 2000/ISO 9004 model. At the same time
security and health system has been established upon OHSAS 18001
Standard and in the same direction the company got Green Industry
Certificate because of its non pollutive operation.
Trade and Purchasing Activities
Like every great manufacturing company, HEPCO provides its
necessary components from domestic and foreign sources. procurement,
material clearance, spare parts, machinery CKD (Completely Knock
Down) component necessary for HEPCO operations are done under
procurement process. HEPCO machineries are produced by the main
methods – acceptance of special orders for production and market
anticipation. In 2007 HEPCO enjoyed an upward trend in sales and
reached from 1861 billion Rials in the mid march of 2006 to 1981
billion Rials. The figure anticipated for mid march of 2007 is around
2716 billion Rials. Road construction machineries are the company’s
main export to Syria, Afghanistan, Republic of Azerbaijan and UAE.
Some marketing measures are proceed in Saudi Arabia and Iraq the
experience of recent years marketing suggests that some factors like
prices, products quality, acceptable after sale services, offering
financial privilege, active presence in target markets and of
course HEPCO’s brand are the main attraction of the
company’s Products.
HEPCO: New Business Strategies
In present national and global economic environment no successful
enterprise could base all its activities merely on replacement of
imports and increasing the depth of domestic manufacturing. Such
consideration plus lack of variety in productions and weakness
on entrepreneurship approach would lead to constant reduction of
benefits and market share, reduction of access to even regional
markets and failing in market competition. In new round of
business the main paradigm of HEPCO is becoming a global class
company and a ring of global production in competitive
environment for generating more value added for the country and
shareholders.In that response HEPCO would grow from a mere heavy
machinery producer and would also be active in rail and wagon
industries, chemical oil where the company would extend its
production line. HEPCO hardware capacities is large and at the moment
some part of it is being utilized. In new development plan HEPCO has
decided to use all potential and make ready the necessary mechanism”
The future vision of HEPCO is not only extending of production
lines but variety in productions and presence in consulting and
contracting is in agenda.
Address:No : 10-Somaye St. Tehran -Iran -
Tel: +9821-88303830-1
Fax: +9821-88309369
Iran Khodro Spare Parts and After-Sale Services Co. (ESACO) is one of the most successful Iranian commercial and service corporations, engaging in automotive parts, spare-parts and accessories supply and distribution businesses. ESACO has also made great breakthroughs in the fields of import and export and also technological and structural improvement and advancements. We had an interview with Mr. Naser Marzbani, president and member of the board of ESACO Corporation, regarding their activities and visions. The bellow passage is the summery of the important topics explained by Mr. Naser Marzbani concerning the subjects such as ESACO’s general activities, their role in national and international market, their subsidiary companies and plans and strategies for the future.
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Fortunately the parliament
has recently passed a new legislation as regards the consumer
protection law which increases and intensifies the
responsibilities of the car-manufacturer towards the interactions
and activities with the car owners during the guarantee period.
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ESACO Co. as a commercial and service company supplying and distributing Iran Khodro’s automotive spare-parts and performing customer after-sale services (especially during the guarantee period) was founded and established in 1977. Although before that, these activities were being performed by the name of PLP or other titles, ESACO trademark, its article of association and current structure were shaped in 1977 with its core activities revolving around supply and distribution of Iran Khodro’s automotive spare-parts alongside with after-sale service by the means of a vast representative network (more than 800 representatives) throughout Iran. As you know, the automotive spare-parts like other industrial markets in the country is competitive and completely open, so we can claim that the spareparts market is similar to any other open markets in the world without receiving any kind of subsidies or support from the government. In other words the situation governing ISACO is totally different from its parent company. In the domains of distribution and sales of the spare-parts we are facing a completely competitive environment making us include two different sections in the supply and distribution activities of the spare parts. One is the job of distribution and supplying the spare-parts in the guarantee period and also in warrantee period referring to the time afterthe end of the guarantee period. Looking at the facts and statistics shows us that 25 percent of referrals to our repair shops throughout the country concerning the cars made by Iran Khodro is happening during the guarantee period, which is always confined to ESACO repair network for the reason that we are the only ones obliged to cover this issue and the customer is not required to pay any money for the services that he/ she receives regarding the repairing process. But from the other 75 percent which does not go into the guarantee period, requiring customers to pay for the received services, just the very small percentagewould refer to ESACO repair network and the main reason is the difference in costs and expenses of repairing services.
Usually customers would sacrifice the quality over costs; this is one of our major problems that car owners in our country still do not see the reason why they should have all their repairing and maintenance works done by professional units with set quality and training standards. The second issue that creates problems for ESACO Co. is unethical competitions within this domain. Let me clarify the unethical competition; in our spare-parts market, forging of equipments that failed to receive approval by authorized experts as original and foreign items, is a common act. It is not hard to find equipments originally built in a low status and cheap manufacturing company being sold as a different famous brand in Iran market. Concerning the Peugeot Cars that we produce right now, there are lots of trunk parts available in the market which are branded with original French Peugeot that are nothing but fake Chinese products. this forms our other problem that regardless of our efforts and requests headed for the respective institutions, there are still no specific regulations in this regard and in the case of a few rules and legislations, the proper supervision and sanction are still required. Fortunately the parliament has recently passed a new legislation as regards the consumer protection law which increases and intensifies the responsibilities of the car-manufacturers towards the interactions and activities with the car owners during the guarantee ESACO, Supplying Parts, Guaranteed Services period.
I emphasized on the word “fortunately” for the reason that, this rule will firstly forces the manufacturer to make better cars with higher precisions in production procedures, benefiting both the consumers and the country; and more importantly, it acts as a double edged factor, obliging the consumers to solely refer to the authorized and trained representative network and in case of the violation of the contract there would be no more support and services presented for the consumers at-fault. The consumer protection law in my point of view solves most of the ESACO and after-sale service problems, but concerning the abundance of fake spare-parts in the market, although this new rule will be helpful in allowing us to cease the further support to any customer who has been resorting to unofficial repair shops, due to the complexities and time and money consuming nature of proving these claims, it is not enough and we are hoping that the respective authorities would make a firm decision in this regard. A part of ESACO’s exporting activity is solely due to the efforts made by the parent company in establishing export contracts with other countries in the first place. In addition to the actions taken by the parent company in our favor, we have also recently started to take part in two other exporting strategies. The first one is identifying the countries that are still using Peugeot automobiles and naturally have available market for their spare-parts. Our next step was choosing the countries with Peugeot spare-parts exporting potential as our target markets paving the way for creating business contracts with these countries. The second branch of our exporting activities is around distribution of some of the famous international spare-part brands inside Iran, In other words, establishing a joint venture in supply and distribution of spare-parts with these companies. We have demanded two conditions for these products that would be used and distributed in Iran; one of them was having a joint logo (ESACO and the other company) and the other one was about granting the right to export these products with the new joint brand to our target countries. As we speak we have been able to reach agreements with a few companies such as Castrol Company as regards the distribution of the Castrol Motor Oils with a joint brand of ESACOCastrol throughout Iran and our exporting markets. In general, this new exporting development plan was launched just from the beginning of the last year with the attachment of the two mentioned subcategories; and we estimate that until the end of the year we could achieve 10 million Euros gained from the practical exports while about 9 million of this figure has already been realized.
The export plan for the This year (2008- 2009) is the goal of reaching 22.5 million Euros and we are determined to increase this rate in the following years helping us to transfer our knowledge gained from more than 30 years of activities inside our country into the international exporting markets and one day at least would become able to match our financial needs for importing of foreign items with the revenues gained solely from our exports. ESACO, since the beginning of the year 1386 (2007-2008) also made two strategic breakthroughs that fortunately is reaching a very superb results. One of them is discovering that a lot of these creditable companies that we worked and cooperated with, acquired their items from other markets such as China or India’s spare-parts production market and then attempted to sell these products with their own brands to us. At first it was really hard to believe, but after a series of investigations and inspections we even found out that in some cases we were providing these companies with 200 percent profit. The thing that we started doing from the beginning of the current year was identifying the manufacturing companies making spare- arts for the famous OEMs, and after gaining affirmation that they are the real producers of these items, we would acquire the needed pieces first hand from these manufacturers with a considerably lower price. Our goal is being able to supply our customers from the midst of the year 1387 (2008-2009) with these spare-parts products with a more suitable price.
The other strategic point that was concluded based on our good reputation in the market, is adding this point to our contracts that enforces the manufacturers to produce items with the ESACO logo and not with the original manufacturer name. We have managed to make around 30 to 40 contacts in this mode which are expected to get into the market playground in 6 months due. We are planning to reach a position which allows us to reassure consumers of the quality standards of any item which is engraved with ESACO’s logo regardless of the original manufacturer brand. ESACO would guarantee the quality standards of these items, covering them withguarantee periods and in case of any problem during the noted period, we would replace the item free of charge. ESACO is planning to eliminate this immoral trend which is dominating the spare-part industry allowing the well-known companies to sell low quality items with double the price of the better ones having an infamous brand, allowing the consumers to buy high quality items with the least possible price. Right now comparing to the past, we are fortunately observing a constant growth in our industries and this trend is happening in not only the automobile industry but also in the after-sale services. This is a common procedure, observable in all parts of the world, that when supply level is lower than demand there would be a quantitative growth, in other words, the only thing that matters would be quantity and not quality, however, as soon as the supply level exceeds demand it will be the onset of the qualitative growth. The consumers whom have gained choices in their buying decisions would undoubtedly have higher expectation. We have to put more efforts into making progress in all the aspects of production, design and after-sale services to be able to satisfy our decent customers. Our supply system is performing in this way that we acquire 60 percent of our items from SAPCO or Iran Khodro. The remaining 40 percent are the items being imported from abroad plus the pieces produced by domestic manufacturers. We practically reengineered our structure and all ocated a section responsible for quality examination and control of these items in delivery point whether they are being acquired from Iran Khodro or SAPCO, making a constructive growth in the way of better supply of the spare-parts.
ESACO also enjoys different subsidiaries that are briefly named in the following part:
•Hamgam Khodro that provides educational package for private repair shops and also handles professional and specialized repairings.
•Emdad Khodro which is a mobile repairing unit, helping and assisting people in time of accidents or car wreckage by repairing the cars in the place of the incidents, or bringing them to the nearest repair shop for further services.
•Hamgam Commercial Company that produces spare-parts and handles repairing services of automobiles which are not part of Iran Khodro’s production line anymore
• ESACO Kish is our other subsidiary that is in charge of all the exports and related after- ale services of our products, in addition to imports of C.B.U cars such as Suzuki. •IAP which is located in Dubai has the duties of financing and securing foreign credits intended for buying required spare-parts from international countries.In the end my message to our customers is; have faith and confide in ESACO and try to use ESACO brands, we also promise to be grateful and keep improving the quality and useful life of our products with better prices comparing to other brands. My message for international customers is try to introduce ESACO as a national brand of Iran throughout the world. Moreover I would like to invite other companies engaging in supply and distribution of spareparts to participate in our vast supply network of Iran Khodro throughout Iran and 10 other countries and keep having mutual cooperation and businesses.
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Farassan The Leading GRP |
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An Interview with the Managing
Director of Farassan Manufacturing & Industrial Company with Iran Export Magazine (Iran Foreign Trade & Business ) |
Would you please introduce yourself, explaining about your
educational background and position?
My name is Mohammad Reza Zahiremami, MD of the Farassan Manufacturing and
Industrial Company. I have
obtained my BSc in chemistry from Shiraz University, and MSs in Industrial
Engineering: System productivity,
from Azad Islamic University.
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Would you please introduce Farassan Company, its establishment
date, its Job description in the initial steps and at the
present time?
Farassan Company was established in 1365 (1985), initially, the
company has been involved in manufacturing FRP fan blades for Air
coolers of the Distillation units of Iranian refineries such as Shiraz
refinery that was damaged during Iraqi imposed war. Farassan began
manufacturing GRP pipes (Glass reinforced polyester pipes) under the
license of the Flowtite techndogy A/S, and made a name for itself by
establishing a high tech R&D unit to master the production technology for
GRP pipes a well as producing the pipe production line & equipments
for GRP pipe production . Right now, the company produces GRP pipes
in different diameters ranging An Interview with the Managing Director of
Farassan Manufacturing & Industrial Company with Iran Export
Magazine (Iran Foreign Trade & Business ) FARASSAN Industry from 100 to
3000 mm with 1 to 32 bar pressure class which has various
application in civil and industrial projects such as water and sewage,
industrial waste water, irrigation, petroleum and gas, petrochemicals
and other industries.
Would you please elaborate on the range of products and
their features, being produced by this company?
Farassan Company is a pioneer in production of GRP pipes and
fittings in the country. These pipes are manufactured glass fiber &
polyester resins. These pipes have various economical advantages such
as high strength, light weight, high resistance against corrosion, smooth
and polished interior surface, high mechanical resistance, minimum
useful life of 50 years, tight joints, and so they have gained high status
in comparison with other available pipes in the market and is considered
more economical comparing to ther available pipes.
Do you have any foreign competitors? Yes, the modern world of commerce and trade is based on the competition. Our foreign competitors are mainly based in the Persian Gulf erea. or even the domestic competitors, who have gained representative rights to sell foreign products. However, with God’s help, together with the hard works of Iranian managers, experts and laborers, employment of foreign experienced consultants and substantial investments in research and development section such as setting up and establishment of Faratec technology center, we were able to achieve a respectable position in the market. Farassan also has the advantages of quality, proper cost and after-sale services…
In what specific industries have these products been
applicable?
Faratec GRP pipes have a wide application range and have been
used for above ground, underground and even under the sea applications:
water transmission, sea water intakes, industrial applications,
potable and raw water transmission and distribution, chemical pipes, fire
fighting lines, irrigation and drainage systems for potable water
industries, civil and industrial sewerage system, power plants and
water sanitation systems in industrial, petroleum and gas and
petrochemical units.
Do you take part in implementation process as well?
Yes, fortunately Farassan Company has the working experience in
installation and implementation of several projects and production
of hundreds kilometers of GRP pipes. Moreover, the
company has the “Grade One” contracting qualification certificate in
plants utilities and equipments field, and “Grade Three”
in the field of water transfer, from Management and Planning
Organization of Iran. Concerning the customer satisfaction level,
Farassan Company has reached an acceptable place, and the proof of
this claim is certificates of satisfaction from ministries of water,
sewage and petroleum for being one of the best suppliers of equipment
for mentioned ministries, as well as many other customer satisfaction
certificates. This has helped Farassan to stay in the vendor>s list
of Ministry of power (water and sewer) and Ministry of petroleum,
Ministry of JAHAD & agriculture, Ministry of industries & mines, etc
How is the company’s approach regarding technological
innovation and development?
One of the most important missions of this company has always been to become
a pioneer in identification and implementation of innovative ideas
and theories in composite industry. Some examples of activities supporting
this approach are: innovation and gaining the upto- date knowledge and
technology, employment of the most experienced national and
international experts, organizing the technical and
engineering service units, starting up of Faratec Technological Center,
utilization of every possible scheme that leads to forming and production
of new ideas such as special attention to knowledge management, feedback
system and etc. We have set up one of the most advanced R&D center
in field & GRP pipes in the world.
Any national or international certificates?
Farassan is one of the few Iranian companies in private sector that
during its several years of presence in Iranian National Productivity
and Business Excellence Award has always been nominated as one of
the highest companies in a national level. Acquisition of awards in
appraisal process of the year 2006 is an example of this achievement. In
addition to receiving ISO 9000/2000 and national certificates, its
products have been examined by German institution of TUV SUD and the
quality of products have been recognized in accordance to DIN 1686,
ASTMD 3567, ASTMD 2412, ISO 1167 standards. The WRAS Institution of
the UK and also the Department of Food and Medicine Section of the
Ministry of Health, Medical Education and welfare, has approved
Faratec pipes to be used in potable water transmission. we also have
WRAS certificate for transfer of potable water from WRAS institute
in England
To what extent has the country approached self
sufficiency with the help of your products?
This company is proud to be the first manufacturer of GRP pipes that
was successful in transference and localization of this modern
technology in the country. Continuing this process, for having an
increased product output, Farassan has made great contributionsto
expanding its structure and its capacity. Its yield capacity
has had a constant growth, increasing from 15,000 (Tons per annum)
in the beginning, to 75,000 (Tons per annum) right now. Farassan
Company is definitely having a big portion in Iran’s market and in
meeting the needs of the infrastructural projects of the country and
with the help of God and managers developmentbased outlook we will
be able to see continuous progress in future.
We know that you have always put a lot of attention
into education and training, would you please elaborate on
thismatter?
Farassan’s 20 years of experience, with its ups and downs, successes and
valuable achievements in satisfying all the stakeholders, particularly
its customers, illustrates that it has been able to present and stabilize
itself as a learning company. It is evident that for reaching our goals
and aspirations concerning this industrial unit as an elite complex,
we have had a great investment as regards the employee training and
education. I am referring to the word “investment” as its true and exact
meaning, because education should not be considered an expense; and
labours should be seen as one of the beneficiaries and valuable
assets of the company. With this kind of outlook, education will be
considered a strategic investment. Farassan as a learning company
and for the purpose of increasing efficiency and.
Would please name some of the projects in which Farassan Company
has accomplished national and International achievements?
Farassan sees every accomplishment as one successful experience in
national and international level, however here are some examples
regarding this issue:
- Design and production of three plants and equipments for GRP pipes production line with dimensions ranging from 100 to 3000 mm by the hands of Iranian professionals and workers while having a substantial cost-savings.
- Starting up Faratec technological centre with high potential in product design and providing technical knowledge required for manufacturing pipes in the country.
- Manufacturing pipes with 3000 mm iameters for the first time in Iran.
- Building GRP reservoir tanks, chemical towers & reactors up to 7.6m diameter and 3.5m height intended to be used in Acid Sulphuric production factory located in Sarcheshmeh Copper , production facility in Kerman, Iran.
- manufacturing over 2000 km of GRP pipes in Iran for different projects,
What are your future plans for supply and implementation
of international projects and what are your target markets?
Exporting of products and services, including technical and engineering
services are on the top of the company’s agenda. It has started
business negotiations with various countries and has sent representative
groups to other countries as well as taking active parts in seminars and
exhibitions being held in foreign countries, neighbour countries
such as Iraq, Afghanistan and Syria are part of its target market. It is
worth mentioning that our first exporting cargo was sent to Iraq
just a few weeks ago. production of 4meter GRP pipe manufacturing
line for Korea, (under production) and exporting the machinery for
production of GRP pipes to other countries.
Is there anything else you would like to address?
I just want to thank you for having this interview.
Address:No : 249-Alley 22-Eram S.T. Shiraz -Iran -
Tel: +98711-2291918
Fax: +98711-2272697
Over 70 percent of products in zinc and lead industry of the country are exported to overseas. As of extraction date of both zinc and lead reserves,only 25million tons of which has thus far been extracted. Of approx. 53 billion tons mineral reserves in the country,1.2billion of which is related to lead and zinc deposits in a way that only three percent of which is very meager for the country. There should be more encouragement of industrialists and miners through concerned organizations for increasing extraction volume of zinc and lead from extant mines in the country. The country of Iran has been considered as importer of both lead and zinc in the previous decade while at the present situation and under the auspices of the private sector, the country can produce more then threefold of both lead and zinc, moreover domestic demands. Zinc and lead was administered from approx. 13 years ago by the private sector in a way that this industry has not thus far used from governmental and/or Forex Reserve Fund FRF) credits. Zinc and lead industry in Iran, due to increasing raw materials and other producing expenditures, has been fallen into oblivion.”
Outlooks and Future Programs
A purposeful program in the form of sustainable development must be
designed with the aim of increasing capability and flexibility of Iran
Zinc Mines. In formulation of the program, the industry must take
advantage, of viewpoints of expert officials of this industry, planning
country, aimed at realizing most objectives of this industry both in
national and international levels. Hereunder are regarded as some of
these programs envisioned in this regard:
- Placing special attention on skilled and efficient manpower as a very important driving force of the industry,
- Placing special emphasis on safeguarding and preserving environment and throwing strong heavyweight on green industry,
- Highlighting Research and Development (R & D) with the aim of promotion of technology, increasing capability of competition and safeguarding reinstatement,
- Getting lion’s share in the global market,
- Realizing objectives of production and supplying of zinc in the global market,
- Increasing output and productivity and optimal use of resources with the aim of amelioration of economic output of activities, -Reducing cost price for more competitiveness at the global market,
- Taking advantage of both industrial and mineral capacities and also the existing potentials and capabilities,
- Focusing on downstream industries,
- Expansion of exploratory field and revival of extant and desolated mines,
- Development and forging interaction with large economic enterprises and internationally reputed institutes, In previous years, the country had to import over 10,000 tons zinc ingot from overseas, but, presently, the country enjoys 60 factories which are producing 300,000 tons zinc in the country, the figure of which is expandable to 400,000 tons before termination of the Fourth Five-Year of Socioeconomic and Cultural Development Plan of the country. It should be mentioned that this industry has embarked on exporting its products as much as 70 percent to oversea while it has generated new more job opportunities inside the country as well. Iran regarded as main player in World Zinc and Lead Industry. And as fourth largest zinc and lead producer, plays a very constructive role in this industry. Thanks to having large and rich lead and zinc deposit, the country will enjoy high potential in this regard to be flourished. Iran with high capability of both zinc and lead industry in the country with its rich potential can get lion’s share in zinc product in the global level. The demand for zinc and lead in the world is increasing and nowadays, approx.80 percent of demand for this product is used in electronics and car manufacturing industries. The growth rate of both lead and zinc consumption in 2007 was around 6 percent and the said figure is envisioned for the year 2008. Presently, zinc and lead has been turned from second-category metals to the first-group metals in terms of value.
Demand
It is envisioned that the demand rate for zinc product this year will increase up to 5.1% and this is due to steep demand increase of this product in China. From 2002 to 2006, the rate of zinc metal consumption in the world has increased 1.3 million tons, 92% of which is related to the consumption increase of this product in China. It should be mentioned that this country will get lion’s share of this product as much as 32% in the next future. In China, the largest consumption rate is related to galvanization which is primarily used in development of infrastructural projects in this country. In other parts of Asia, it has been envisioned that the demand for zinc product is increasing in India. In 2007, the demand for zinc product was reduced up to 1.9 percent in U.S. while in Europe it is envisioned that due to increase in demand in Belgium and Italy, the consumption rate of zinc will be soared remarkably in the year current year.
Supplying Zinc
Production of zinc mineral in the year 2007 increased up to 7.4%and
will be increased to 9.5% in 2008. It should be mentioned that San
Cristobal is considered as world eighth large zinc producing mine
with the production capacity of 215,000 tons zinc per annum, the
figure of which will boost production of zinc in Bolivia. With
activation of zinc mines in Australia like mines of Lennard Sheif
and Jaguar and Flinders, the rate of this mineral in that country
will be remarkably increased. Upon work inception in mines in Canada
such as Scotia, Langlois and Duck Pond and Caribou in the year 2007,
the volume of production of zinc remarkably increased. In the same
direction, increasing the volume of minerals in Peru is due to steep
increase in production of mine in Cerro Lindo and Antamina. Also, it
has been envisioned that China, Brazil, India, Ireland, Kazakhestan
and Mexico, Portugal and America will enjoy steep hike in production
of minerals.
Iran can get lion’s share of 4% in World Zinc and Lead Products.
Thanks to having rich and large zinc and lead deposits, Iran
only gets one percent of global share of this product while this
country enjoys high capability to increase the level of its high
capability to increase the level of its share in this market. The
rate of extraction of zinc and lead products from mines in the
country does not reach even one million tons per year therefore
officials should be concerned to take effective steps with the aim of
increasing share of these products in the global level. According to
the 20 Year Vision Plan it has been envisioned that the country should
produce 5 million tons of these product before termination of the
country’s Fourth Five-Year
Socioeconomic and Cultural Development Plan.
According to policies and strategies of Article 44 and based on
details of this policy, government, should not itself embark on
implementing the projects rather the government should monitor and
control activities of the private sector. As far as delegation of
authority to the private sector is concerned, the government is
forging sense of competition with the private sector and forging
sense of competition and annulment of monopoly whether state-run or
private must be major policy of the government in this regard.
Except the exceptional cases (like ownership of oil wells and the like),
then government has provided transferring share of economic
enterprises and offering shares of major mine companies as some part
of this policy. Iran is regarded as one of the leading and largest
mineral country in the world and the government should do its utmost
efforts with the aim of taking advantage of capabilities and
potentials of the private sector for flourishing economic status of the
country.” In line with implementation of Article 44 of the
Constitution in the country, the private sector has been envisioned
to play a very constructive role, as paradigm, for economic sector
of the country. Many rules and regulations have been envisioned to
be changed so far, and in the same direction,
contemplation of the private sector should be replaced with the
governmental ideas. Zinc and lead industry in Iran, set up by the
private sector, is now flourishing and moving towards development,
and this industry is playing a very key role in the development plan
as well . “Zinc and lead industry can play a very key role in
exports of non-oil commodities in the country.”
Scientific Elevation of Iranian Zinc and Lead Experts
“So far, over 600 lead and zinc mines have been discovered in Iran.
But, no systematic work has been conducted on such mines and
exploitation is being carried out only in Angooran, Irankouh,
Nakhlak, Mehdiabad, Koushk, Ahangaran, Mansourabad and Dona mines.”
The latest studies show that lead and zinc mines’ reserves stand 200
million tons and considering the average purity, there are 18 million
tons of zinc and five million tons of lead reserves. Iran’s share from
the world reserves considering 166 million tons of zinc reserves is 1.6
percent and considering 31 million tons of lead it is one percent.
Zinc
Presently, 10 companies are active in production of zinc concentrate.
In 1385 (2006-2007), the products of these companies reached to
535,269 tons which shows 25percent growth compared to the similar
previous period. Out of the mentioned figure, 67,030 tons of
zinc concentrate were exported. Compared to its previous year during
which 94,461 tons had been exported 29 percent decrease was seen.
In 2006-2007, the total volume of exploited minerals was 846,880 tons
including:
- Mineral with high purity: 336,756 tons
- Mixture of sulfurized and oxidized mineral (with high purity): 76,940 tons
- Mineral with low purity: 193,520 tons
- Mixed mineral with very low purity: 239,663 tons.
Lead
The share of Iran from world lead mines is one percent. During the
past five years, Iran has managed to increase 16,000 tons of production
in 2001 to 33,000 tons in 1005 showing 19.8 percent annually.
Presently, 10 companies with the total capacity of 90,500 tons of lead
concentrate are active in Iran. The products of these-companies reached
to 65,846 tons in 1385 showing 72,8 percent yield. The figure shows 13.2
percent decrease compared to the same period in its preceding year. It
is anticipated that lead concentrate production of Iran to 71,000 tons in
1386(2007-2008).
Iran Zinc Stance in the World
“By development of technology, the world is witnessing changes
in the lives day after day. Among such developments, industries are
reformed as well. For instance, in building construction industry
natural materials are replaced with artificial ones. Production of
artificial stones with different colors and high quality obstacles
the way of natural stones or P.V.C windows and doors are replacing
wood,by aluminum and iron. In telecommunication industry,
optic fiber has decreased utilization of wire and cable.” In pipe
industry, pipe lined with zinc is being replaced with plastic ones.
Sixty five percent of the total produced zinc is being used for
galvanizing. Experts are after finding other coatings such as
aluminum alloy, paint and polymers and this may happen every moment.
According to experts, the total mineral reserves of Iran reaches to
55 billion tons out of which 1,200 billion tons are the shares of
lead and zinc. With due regard to the ideal situation of lead in
world, Iranian industrialists without relying on governmental
investment and foreigner have turned Iran from an importer into an
exporter within a 10-year period. Hence, the authorities should
support this industry before happening of changes.
Problems of Zinc Export
Presently, export of zinc is facing problems. Zinc ingot is marketed
below LME price. Lead enjoys a favorable market hence, it highly
affects production of zing ingot. For survival of productive units,
ways should be searched to reduce finished price of zinc production.
The factors effective on finished price are:
Raw material
Wages
Slag
Other expenditures
Raw material forms 80 percent of the finished price so, the supply
and production company should act correctly in pricing in a way that the
finished price and selling price to be in proportion with each other.
IE&I Research
