The steel industry in Iraq is strategically important, not only as a supplier for reconstruction projects, but also for a large number of other industries. Currently, Iraq doesn’t have the production capacity to meet demand, estimated at around 3 tonnes/year, according to government data. For this reason, the government has sought to attract partners to invest in state-owned companies and make them competitive with foreign imports.
Several state-owned companies are seeking investment partners. Many of these have the advantage of established market positions by providing steel for government departments and other public sectors. Among its customers are also the gas and oil industries. In contrast to the amount invested, the entrepreneurs will receive a share in the final product for periods between 10 and 20 years.