Iranian President Hassan Rouhani has opened a new cement plant in South Khorasan province of the country. The $130 million plant has a capacity of 1 million tonnes per yer (t/y) of cement.
In addition to supplying Iran, the plant is strategically located to export into neighbouring Afghanistan and Pakistan. The province of South Khorasan borders Afghanistan and is also close to the Pakistani border.
Cement demand in Pakistan is currently booming on the back of significant Chinese investment in infrastructure projects. Pakistan has historically also been a significant exporter of cement into Afghanistan, but its exports have started to fall as domestic demand grows.
Iran’s annual production capacity currently stands at around 80 million t/y — but is expected to rise to 120 million t/y over the next decade. In addition to Afghanistan and Pakistan, it also exports cement to Iraq, Central Asia, India, Turkey, and the Middle East.