Iron smelting association
|Name||Iron smelting association|
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Iron Smelting Association Smelting Plants Union Head:
The private sector has invested $30 million USD in five smelting plants in Kabul, Balkh and Nangarhar provinces – which would cover 30 percent of Afghanistan’s needs. One of the factories was built with a $20 million USD investment in Kabul and will be one of the biggest smelting plants in the country.
From 30 industries in the country, iron manufacturing is one of the foremost industries with at least $100 million USD investment. There are 22 smelting plants in the country at the moment.
But according to one investor, less than 50 percent of the capacity of 22 plants is currently being used due to the lack of raw materials and electricity.
“We have plants of which 20 percent, 30 percent and finally 50 percent of their capacity is used,” said Parwiz Khwajazada, head of the smelting plants union.
“We can cover a big part of Afghanistan’s market if the problem of electricity and raw material is addressed.”
Meanwhile, officials from the Ministry of Finance said they have started the sale of scrap metal in a move to encourage iron manufacturers to invest in the country.
The campaign will cover the sale of 37,000 tons of scrap metal to factory owners, said Mohammad Ibrahim Shams, head of the Finance Ministry’s Enterprises Department.
“We have so far collected 40 million AFs from selling the (scrap) metal and this has satisfied the factory owners,” he said.
“There are still some problems but we have plans to collect all the scrap metal in the country and sell it to the industry.”(20170905)
Parviz Khwaja, head of the association said on Sunday, Mar 10, 2019 that even inside the government, some circles were making obstacles before the iron smelting industry.
“Special mafia circles inside and outside the government are hindering our activities to stop and destroy the industry,” said Khwaja, warning that if the hampering was not prevented their 450 million dollar investment would be annihilated.
However he didn’t mention specific individuals or groups, but called Iran and Pakistan as main elements that hinder the iron smelting industry in Afghanistan.
Naqibullah Nazari, a member of the iron smelting association said they face enormous problems in the custom offices as well.
The national unity government and particularly President Ashraf Ghani encourage investors for investment in Afghanistan, vowing that the government would provide facilities for them and their investments.
38 iron smelting plants are now active in the country, in which 12,000 people are working.
Abdul Rahim Faizan, deputy head of chamber of commerce and industries asked the government to save this national capital from annihilation. “If this capital is annihilated, it would be a loss at the national level, because this is a national capital and we the investors are only managers,” said Faizan.(20190310)