Iran Signs Billion Dollar Steel Deals With POSCO, Italy’s Danieli

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With sanctions lifted Iran is joining the international community and steel supply and production deals are a big part of their entrance.

POSCO Buys Into Iranian Steel Mill

South Korea’s POSCO plans to sign a preliminary agreement with Iranian steelmaker PKP in March to buy a stake in a $1.6 billion steel mill project in the Middle Eastern country, a source with knowledge of the matter told Reuters.

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In September, the firms signed a memorandum of understanding to build the plant with an annual production capacity of 1.6 million metric tons in Iran’s Chabahar free economic zone and Reuters’ source says more business is on the way now that sanctions have been lifted.

Danieli Will Sign Iranian Steel Contracts

Italian steel firm Danieli will sign about $5.7 billion in commercial agreements with Iran during President Hassan Rouhani’s visit to Rome this week, a company spokesman confirmed on Monday.

A government source told Reuters earlier that the contracts were worth about $4 billion, but a company spokesman later said the total value of the agreements was higher and included a joint venture with other international investors, including Iranians.

The joint venture, worth $2 billion, will be called Persian Metallics, the Danieli spokesman said, giving Reuters further details.

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Danieli will directly sign contracts with several Iranian companies for machines and equipment to produce steel and aluminum for a total of $3.7 billion, the company said.

Rouhani arrived in the Italian capital on Monday morning and will leave for Paris today.

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