Group of Companies - Fatemeh Hajali: Saveh Cement is one of the subsectors of Cement Fars, Khuzestan and Cement Supply which is considered as the largest producer of white cement in Iranian market. The products of this company are exported to Iraq and Qatar.
The products of this company are exported to Iraq and Qatar out of Iranian market but the major shareholder program for more exports abroad, as well as the entry of the company for marketing in Iran, as well as discussions about the fuel for cement companies, led the CEO of 65 billion cement companies in Saveh to discuss the latest developments in this matter we are also interested in the cement industry details to provide in this paper.
Cement, which is considered as yeast of development in economic and social growth, plays a fundamental role in the construction of modern human societies as a construction product. The total amount of cement production is 1800 million tons per year for marketing in Iran. The first cement factory in Iranian market was set up in Tehran in 1310 in capacity of 100 tons per day. Consumption per cement, one of the most important indicators of construction in Iranian market, is currently 460 kg per person. In line with the overall policy of the system and the plans of the Ministry of Industry and Mines, it was stipulated that the annual production of cement would increase to 70 million tons by 1400 and increase per capita consumption from 460 kg in current to 830 kg.
Considering the situation of the gray cement marketing in Iran and the shortage of this product in the region, as well as with the plans of the Ministry of Industry and Mines to increase the cement production to 70 million tons per year, the companies decided in 2002 to build the largest cement unit of Iranian market The capacity of seven thousand and 200 tons per day, equivalent to 2.5 million tons per year, was 14 kilometers from the same factory and was able to implement this project since 1382, and it can be said that the project was produced in late 85. Fortunately, the project is currently underway and has converted Savoy Cement to one of the best cement factories out of marketing in Iran for its variety of production, both white and gray, as well as under arranged management.
The total investment of this project amounts to 1,900 billion Rials, equivalent to 30% of it, and shareholders have been raised in Iranian market, and the rest has been funded from the facility's reserve fund and facilities for domestic and foreign banks. The annual sale of cement is over 120 billion USD per year, which varies from year to year. However, the companies currently sell between 120 and 130 billion USD, accounting for about 5-10% of its exports, the rest being domestic sales out of Iranian market per company. In the year 90, Iranian market was able to produce about 299 thousand and 763 tons of white clinker and one million 832 thousand and 828 tons of gray clinker, as well as 264 204 tons of white cement and one million 811 thousand and 817 tons of gray cement production do. Fortunately, in the first three months of this year, we were able to produce 86,305 tons of white clinker and 561,357 tons of gray clinker, an increase of 8 percent and 38 percent, respectively, in the same period of the previous financial year.
The cement industry has a very low degree of currency dependency; in fact, it can be said that industrial cement that is self-sufficient for its production, the company owns minerals inside it, and also the machines that come from abroad are not high and, in fact, A series of spare parts that cost about one and a half dollars for parts and other issues in almost every single ton of clinker production in the cement industry for marketing in Iran.
If the cement is offered at the equilibrium exchange rate on the stock exchange and priced by the government, what would you consider the fate of how to gradually release the cement rate?
One of the ways we can discover the price of cement is to enter the Commodity Exchange, and it can be said that most cement factories did this in the last year and previous years, and now they can be traded on the stock exchange, but they are not well received. This is because when the approved prices are actually in place, buyers can never get into the stock when they can buy more easily from the factory door for marketing in Iran. The stock exchange can be active when the rate is set there. At the peak of consumption, it is certainly suggested that a higher price is offered for cement, and when it comes to consumption, our production is continuous, the mass production causes the prices to drop in non-peak chains and this creates a balance.
In addition, cement pricing is currently not required due to the cement production capacity of over 77 million tons, and the price of gray cement must be controlled. If the pricing system is set up in the stock exchange, there will be equilibrium in prices and consumption, as well as for the projects that are coming on the cement exchange, or for major buyers can be very positive, because they can make a long-term purchase. Totally, the exchange offers a great deal of work for this, and in fact we have to go to the point where we can see the release of cement prices.
Renovation, refurbishing, changing some of the production lines and changing some of the production systems is constantly being done out of marketing in Iran. In addition, the cement industry in Iranian market is not stepped backward in technology and it produces almost this technology, and in reality it is a problem of energy only. Fortunately, good things are supposed to be done and we hope to come to a conclusion.