Sanctions Main Reason For 30K Idle Plants In Iran, Official Says
There are more than 30,000 idle production plants across Iran that are completely closed or semi-active due to economic and legal issues.
There are more than 30,000 idle production plants across Iran that are completely closed or semi-active due to economic and legal issues.
The Iranian president’s deputy for rural development said on Tuesday that many of these units cannot be revived but some 20 to 25 percent can be brought back to production and the supply chain.
Amir-Hossein Madani added that most of these units are from sectors of mining, agriculture and small industries.
He said the priority of the current administration is to activate the stagnant sectors in rural areas.
Madani pointed out that some of these units were closed or underperforming due to the consequences of sanctions, but many of them are not operational because of other financial and legal problems.
According to reports by Iran’s Ministry of Industry, Mine and Trade, during the last Iranian year (from March 20, 2020 to 2021) over 1,500 inactive units returned to the production cycle through various methods such as providing liquidity and facilities, modifications in the production line and management changes.
Iran suffers from a lack of investments and a centralized economy. Pundits say Iran’s economy is at its most dangerous historical pointin the past four decades with rising inflation, lack of liquidity and international sanctions that would not allow Western companies to have any business dealings with Iran.
