The Forum for Partners in Iran's Marketplace

May 2017, No. 83

The Key to Iran Market

Farshid Oveissi,
Managing Director

IRASCO, as a foreign trading company, is a subsidiary of IMIDRO (Iran’s Mines and Industries Development and Renovation Organization) that was founded in Italy in 1994. Its shareholders are ASCOTEC Holding (51% of shares) and Iran International Engineering Company (IRITEC) (49% of shares). The primary capital of the company was 6 million euros that was increased to 8 million euros after the Joint Comprehensive Plan of Action (JCPOA) was signed between Iran and the 5+1 countries last year.

Since its establishment until before the cruel sanctions were imposed on Iran, IRASCO has participated in numerous consortiums in the field of mines and industrial mining, steel, oil and gas in cooperation with IRITEC, some of which are:

 Projects in Steel Industry:

Mobarakeh steel development, including the development of steel and hot-rolled steel, the new unit in the steel melting and casting in Khorasan and Hormuzgan steel complexes, Iranian Ghadir Direct Reduction Plant, Arfa Direct Reduction Project, Khorasan Direct Reduction Steel Complex, Shahid Kharrazi Direct Reduction Steel Unit in Mobarakeh Steel Complex, etc.

 Mining Projects:

Tabas Mechanized Coal Mine, preserving iron ore concentrator line of Chador Malu Mine in Yazd, preserving copper mine concentrator line of Sarcheshmeh in Kerman;

 Oil and gas projects:

Amak Project, Binak Desalination Project, Kharg NGL Project. 

Although the banking restrictions affected the company’s business activities during the sanctions, it continued its activities while having strong determination and respecting the international and European Union laws. During the period, although progress in implementation of projects was slow, the company was very active in terms of supplying equipment and spare parts and meeting the needs of the industry during the imposed sanctions. More than 150 million euros worth of spare parts for the industrial sector were purchased and shipped to Iran.

The company is proud to be one of the main suppliers of spare parts required in industries such as Mobarakeh Steel Complex, Hormuzgan Steel Company, Chaharmahal-and-Bakhtiari Automotive Sheet Company, Khorasan Steel Company, Ghadir Steel Company, and so on, while it continues to play its role in production in these units.

In the post-JCPOA atmosphere after Iran reached agreement with the P5 + 1 countries, with the gradual lifting of the sanctions and the relative openness in the field of foreign trade, in order to benefit from the created opportunity, the company focused its activities in the field of banking, finance, technology transfer, and attracting European investors interested in entering the Iranian market. Thankfully, positive actions have been taken and satisfactory results achieved. Although the path has been difficult to tread upon and still there are some barriers to trade relations, especially in the banking sector, the company has been successful in  opening of accounts in several reliable European banks, a development that prior to JCPOA was absolutely impossible, and even received credit lines through creation of mechanisms for the control of internal processes with the aim to guarantee compliance with the European Union law concerning the lifting of sanctions, and auditing and confirming by competent authorities as well as banks. It has been planned to use the created credit lines to provide equipment for the projects, modernization of the equipment and purchase of machineries for mining, and so on, in line with the construction of the country.

In the post-JCPOA era, IRASCO has managed to obtain L.O.I from one of the Italian banks with insurance coverage of SACE, the Italian Export Credit Agency, for clients who were demanding to use financing facilities, a development that is promising a bright future in financing industrial projects. By removing domestic banking obstacles, we hope such foreign financial facilities be used more and more and in better ways in order to provide low-cost funds for major national projects.

Also, in order to provide equipment and spare parts, coordination have been carried out during numerous meetings with the Italian investors and manufacturers of equipment and spare parts in order to take advantage of the manufacturers’ usance, which is a favorable opportunity for the implementation of projects to increase capacity, optimize equipment and supply spare parts.

 Fortunately, it can be said that the company, with its credibility and reputation which are the results of 24 years of successful participation in large projects and very productive interaction with European banks and manufacturers, sees no hindrance to the implementation and financing activities on condition that opening of long-term letters of credit be provided. And now, by creating provisions to use the above-mentioned financial facilities, the company is able to transfer funds of some of these projects directly, without intermediaries between Iranian and Italian banks, an activity that was unprecedented since the beginning of the imposed sanctions.

With respect to the sluggish process of technological developments over the past few years in some areas of industry, because of the unjust sanctions, today, IRASCO, in addition to the ongoing activities in supplying equipment and spare parts, is fully prepared to provide services in the field of transfer of technology and know-how, modernization as well as upgrading of equipment and so on.

In line with this, IRASCO is fortunately interested not only in the development of fields of its activities, but also considers entry into various arena an opportunity to further accelerate the improvement of technology in the country. That is why it has set it as its target. For this purpose, IRASCO has recently started activities in order to enter new markets, such as new energies, energy saving, and investing in production of strategic raw materials for steel industry.

In the end, once again IRASCO announces its preparedness to participate in every development projects, supplying equipment and spare parts, financing, transfer of technology and technical maintenance.


Via di Francia, 3 - 16149 GENOVA  -  ITALY

Tel. +39 010.6099411 

Fax +39 010.415115 

E-mail :

Cap.Soc. Euro 6.000.000 i.v.  - C.F./P.I. IT03465490104 - R.E.A. Genova n.348075 - Registro Imprese Ge 03465490104


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  May 2017
No. 83