Iran has signed an agreement with China’s TCS company to provide engineering services for the construction of a sponge iron production unit in Kazakhstan, marking a key step in expanding regional industrial cooperation.
The project will see the design and engineering of a plant with an annual production capacity of 800,000 tons.
Taherzadeh, head of Ascotec Holding and Iran’s representative in the deal, highlighted the project as the first international collaboration based on Iran’s proprietary PERED technology. He described the agreement as a milestone in advancing indigenous technology and strengthening Iran’s role in regional steel markets.
PERED is a gas-based direct reduction technology developed in Iran. It uses a reduced gas, typically hydrogen and carbon monoxide, to extract oxygen from iron ore pellets and produce carbonized direct reduced iron.
TCS representative Sun welcomed the partnership and expressed interest in extending cooperation to future projects across Kazakhstan and the broader region.