According to Titrsanat, Alireza Chaychi, a member of the Board of Directors of Central Bafgh Alloy Steel Company, stated during a specialized session at the 22nd International Metallurgy Exhibition (Iran METAFO) that the Bafgh Alloy Steel project, as one of the key development plans of the country’s steel industry, has been designed in three phases, and its first melt will be produced within the next 18 months.

Elaborating on the technical details of the project, he added: “The first phase of this plan includes the establishment of the casting plant, laboratory units, the water supply system, and industrial gas production facilities. It began in July 2024 and will be fully operational by the end of 2026. With significant investment, this project will create an annual production capacity of 400,000 tons of alloy steel billets and sections, playing an important role in the region’s economic development and in creating sustainable employment.”
Chaychi also referred to the company’s marketing strategies, saying: “Based on global market analysis, the primary focus will be on exports to European countries and Central Asia. Iran’s strategic location and access to transit corridors provide us with a key competitive advantage.”

The Position of Alloy Steel in the Global Industry
Comparing the share of alloy steel in the production portfolio of advanced countries (15 percent) with that of Iran (3 to 5 percent), he emphasized: “Increasing the production of alloy steels is not only an indicator of industrial development but also meets the essential needs of upstream industries such as the automotive sector.”

The company’s manager also referred to modern energy-supply solutions, stating: “To ensure sustainable production, the establishment of a 300-hectare solar power plant and the use of a combined-cycle power plant are on the agenda. Although providing stable energy is the responsibility of the government, we take our social responsibility in this regard very seriously.”

Chaychi concluded by outlining the company’s long-term plans, saying: “The use of treated wastewater and water from the Sea of Oman as sustainable water-supply solutions is under study. This project is considered a fundamental step toward completing the steel industry’s value chain and enhancing Iran’s position in global markets.”