45 idle industrial units to be revived in Khuzestan by Mar. 2021

November 30, 2020 - 13:33

TEHRAN- The head of Industry, Mining, and Trade Department of Khuzestan Province, in the southwest of Iran, announced that 45 idle industrial units are planned to return to the production cycle by the end of the current Iranian calendar year (March 20, 2021).

Amir-Hossein Nazari said that 36 out of the mentioned 45 industrial units are located in the industrial parks of the province.

Khuzestan is one of the centers of oil, gas and petrochemical production, which is why large and parent companies are active in this province.

As the acting head of Iran Small Industries and Industrial Parks Organization (ISIPO) has announced, 819 idle industrial units have been revived in the country during the first seven months of the current Iranian calendar year (March 20-October 21).

Asghar Mosaheb said that reviving the mentioned units has created jobs for 14,458 persons.

The official also announced that ISIPO plans to revive 2,000 idle industrial units throughout the country by the end of the current Iranian year (March 19, 2021).

He said the targeted figure for the mentioned seven-month period was 1,500 units, but the figure was increased in line with the objectives of “Surge in Production”, which is the motto of this year.

Preventing the inactive status of the industrial units is another major plan of ISIPO, the official reiterated and mentioned lack of liquidity, problems in terms of supplying raw materials and machinery, and absence of market as the main reasons making the units inactive.

ISIPO’s Previous Head Mohsen Salehinia has said that providing liquidity is the main issue for many of the country’s production units, so based on the arrangements made, these units can receive part of their needed liquidity through bank facilities.

"Currently, the share of the country's production and industrial units in receiving bank facilities is about 31 percent and it is necessary to allocate a larger share of banking facilities to the country's production and industry," he added.

Given the position of production in the country's economy and employment, and the fact that production units are facing lack of liquidity to supply raw materials and equipment, it is necessary to increase their share of bank facilities up to at least 40 percent, Salehinia stressed.

He further said: "Despite all the limitations, we are currently witnessing an increase in production in some units, for example those active in the field of home appliances; also, according to the plans made and by solving the problems in the way of the production and industrial units, we will realize the motto of “Surge in Production” by the end of this year.”

Strengthening domestic production to achieve self-reliance is the most important program that Iran is following up in its industry sector in a bid to nullify the effects of the U.S. sanctions on its economy.

To this end, the current Iranian calendar year has been named the year of “Surge in Production”, and all governmental bodies, as well as the private sector, are moving in line with the materialization of this motto.

Regarding its significant role in the realization of the mentioned goal, the Industry, Mining and Trade Ministry has already defined its main programs for supporting domestic production in the current year.

The ministry’s seven main axes of the surge in production are going to be pursued under 40 major programs.

In this regard, the development of industrial parks and supporting the units located in these areas is one of the major programs underway by the ministry.

While this program is being seriously pursued, the lack of necessary infrastructure in the industrial parks is impeding their development, therefore, the creation of needed infrastructure in the industrial parks has been put on the agenda.