Iran has kicked off the construction of two key industrial units, a large steel mill and a mega petrochemical plant, in the country’s southeastern province aimed at achieving a major leap in the area’s industrial growth, a report said.

The projects are being constructed in the port city of Chabahar, part of the country’s southeastern province of Sistan-and-Baluchestan, added the Press TV report.

Both are located in Mokran industrial zone and were kick-started by Defence Minister Hossein Dehqan and Industries Minister Mohammad-Reza Ne’matzadeh, respectively, said the report.

The steel mill – Mokran Major Steel Complex – is projected to have an annual output capacity of 3.2 million tonnes and its products will include sponge iron, iron pellets, steel wires, and hot roll steel.   

The project requires an investment of $4.3 billion and will be complete within three years. The objectives of the project are to provide supplies to meet domestic needs and also export the products.  It will also make available 1,000 jobs for residents in Sistan-and-Baluchestan which is also a prime objective.

A second project – Negin Mokran Petrochemical plant – involves a collection of 20 projects with a total investment of $20 billion for the production of various petrochemical products including methanol, ammonia and urea, ethylene and propylene.

The project will have an overall production capacity of 30 million tonnes and officials say it will create jobs for 20,000 people, added the report.