Shadegan Steel Company
Shadegan Steel Industry Company is an unlisted Khuzestan steel producer owned under a 2014 structure by Khuzestan Steel Company and IMIDRO. It operates a PERED-based DRI/HBI plant and billet-making unit near Bandar Imam Khomeini, linking gas-based metallics production with port-connected semi-finished steel logistics.
Market position
Shadegan Steel Industry Company was developed as one of Iran’s Eight National Steel Projects. Its DRI plant reached nominal capacity in 2017, and its steelmaking unit produced its first billet in 2024.
Operations & footprint
Products and services
Shadegan Steel Company produces direct reduced iron, sponge iron, steel billets, and related steelmaking materials. Its operations are connected to Khuzestan's steel ecosystem, Bandar Imam Khomeini logistics, nearby export corridors, gas-based reduction technology, steelmaking expansion, and supply of semi-finished materials to domestic and export-oriented markets.
Operations and assets
The 260-hectare site includes a PERED-based direct-reduction plant with nominal annual capacity of 800,000 tonnes of DRI/HBI and a steelmaking unit with nominal annual billet capacity of 800,000 tonnes.
Geographic footprint
The operating site is southeast of Shadegan in Khuzestan Province, approximately 35 kilometres from Shadegan city and 10 kilometres from Bandar Imam Khomeini.
Ownership & group structure
Ownership
In 2014, 65% of shares were transferred to Khuzestan Steel Company and 35% to the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO).
Parent company
Khuzestan Steel Company holds a 65% ownership interest under the 2014 share-transfer structure.
Commercial and investment relevance
Shadegan Steel is relevant for investors assessing Khuzestan's steel capacity, billet supply, port-linked export potential, gas-based DRI production, and the role of provincial steel projects in Iran's industrial policy. It can support analysis of steel semi-finished product flows, logistics toward Bandar Imam Khomeini, energy supply, environmental pressure, and links to larger steel groups or public-sector development plans. Due diligence should verify current ownership, market status, production mix, expansion status, export channels, environmental compliance, gas and electricity reliability, and any sanctions-sensitive counterparties. The site pairs metallics production with billet conversion close to Bandar Imam Khomeini. This supports commercial engagement around iron-ore-pellet and gas inputs, refractory and plant services, billet offtake, and port-connected handling and transport.
Constraints, risk & compliance
Key risks and constraints
Operating performance depends on reliable natural-gas supply for the PERED reduction process and on the ramp-up and sustained utilisation of the steelmaking unit, which produced its first billet in 2024.
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Frequently asked questions
Direct answers to the questions most likely to arise when reviewing this profile.
What does Shadegan Steel Industry Company produce?
The company produces hot direct reduced iron, hot briquetted iron and steel billets.
Where is Shadegan Steel Industry Company located?
Its 260-hectare site is southeast of Shadegan in Khuzestan Province, about 10 kilometres from Bandar Imam Khomeini.
What is the company’s nominal production capacity?
The DRI/HBI plant has nominal annual capacity of 800,000 tonnes, and the steelmaking unit has nominal annual billet capacity of 800,000 tonnes.
Who owns Shadegan Steel Industry Company?
Under the 2014 ownership structure, Khuzestan Steel Company held 65% and IMIDRO held 35%.