Steel industry in the world and Iran is now facing many challenges, China's exports and its lower-cost production, reduced domestic consumption of steel, desire to export steel manufacturing units to a specific country, decline in the value of Russian ruble, attractiveness of import in this country and declining oil prices are among the most important challenges at the global level. In Iran, due to the downturn in the construction industry and allocation of development budget to plans higher than 70 percent, In practice, steel companies specially manufacturers of construction parts and at their forefront Zob Ahan Company have been facing many problems. But Zob Ahan relying on its half-century experience has not had passive position in the face of these challenges and by adopting combined strategies including producing new products,(Wide flange beams, Arches, etc.), improving access to international markets and export development, effective management of costs, planning and implementation of rail projects, doing improvement projects to and finishing several projects, has been able to maintain its position in domestic and global supply.

One of the programs that Zob Ahan follows in 2016, is the increase in profitability of sales operations and in this regard some measures have been taken such as the development of international trade through affiliated companies, providing sales representatives directly or through subsidiaries and marketing new products include rails, beams and wide flange angle and high size equal leg angles. The company is following the plan to decrease fiscal and tax expenditures this year and has begun planning for timely settlement or renewal of credits and tax in order to reduce crimes and using guarantees with no costs for recived credits. Improving human resources productivity has been started  by reviewing the company's organizational structure, and increasing profitability and shareholder value in this company recieves especial attention.  Effective management to control stock market to control price changes, evaluate and invest in the steel value chain, planning to reduce interest-bearing debt and the establishment of evaluation system of banks and financial institutions are also being carried out. Supplying raw materials is considered as one of the main challenges for the steel industry. Meanwhile, Zob Ahan faces more difficult situation due to its need to raw materials needed for other steel industries, and its need of coal due to using blast furnace method. 

Fixing these problems is possible with the governent's support and policy making. Unfortunately, in the field of coal we see some strategies and decisions by the authorities that makes it difficult to provide this raw material. To cope with challenges and problems in the field of raw materials some measures have been taken such as identifying  and long-term contracts with suppliers of strategic raw materials, purchase or taking permission from competent authorities on the transfer of needed mines and ownership of strategic raw materials mines is under way. In the current situation that we face recession in domestic market, we follow new policies in sales, expansion of markets and diversification of selling methods and providing better customer service, increasing sales of byproducts, planning to sell new products with high added value such as wide flange girders, variety of industrial coils, rail and tunnel arc, maintaining and improving market share within the enterprise and increase export sales, trying to achieve new export markets, constantly monitoring world prices and acknowledging prices according to the rivals and the market, Interaction with customers and collect feedback from clients during the year in order to solve customer problems and reduce time to deal with complaints, Increase customer satisfaction with measures taken to increase the speed of loading and unloading times, reducing truck stop are part of these policies which most of them have been implemented.
The short-term program of Zob Ahan was preventing the losses that occurred in the first quarter of this year and luckily this year, unlike last year, not only we hadn any loss, but we also will be profitable.
In the current situation, where profit has fellen remarkably for steelmakers, the efforts to reduce costs to increase competitive strength of steel is one of the main priorities of the company and Many measures have been taken including the management of costs, reduce consumption of coke in the blast furnace, the change in the total consumption of materials in all lines and reduction in waste. Zob Ahan in the medium-term and long-term pursuing plans that the most important of them is project of the balance 2. In this project, the main goal is to produce products with higher added value, which I hope to run in 2019. In this project, without increase in coke consumption rate, the annual output of steel will be greatly increased. One of the main projects which its implementation was always followed in Zob Ahan but for various reasons was not possible was the plan to inject pulverized coal into blast furnaces (PCI) which its implementation contract was signed recently with a very good perice of (16 million euros). The project decreases costs of raw materials greatly. In addition to the projects listed, the construction of desulphurization unit, construction of unit of continuous casting, building an oxygen plant, preparation and processing and mining of zones 4,6,7 and 8 in Tabas 1 project. Reconstruction of rolling 650 to produce the rail, rolling cutting system 500, optimization project for the Unit VD in steel sector, modernization of electrical equipment stations 7 and 8 Casting, project for reforms and modernization LF1, reconstruction of boiler No. 3 and 4 central power plant and hot rolling 500 are other projects of the company on the track this year. It is hoped that by relying on the actions taken and planned projects as well as the efforts of authorities.
Preventing irregular imports, a greater focus on quality and wstandards of produced and imported products, increasing import tariffs we see the flourishing of the steel industry this country.

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