Half of Iran’s Concrete Plants Shut Down Due to Power Cuts

Unplanned power outages have forced around 50 per cent of Iran’s ready-mixed concrete production facilities to close, the Secretary of the Ready-Mixed Concrete Producers Association has said.

The remaining facilities are operating at significantly reduced capacity.

“The reduction in cement production due to severe power supply shortages has directly forced concrete plants to close,” said Mohammad Hossein Raisi.

He added, “This production stoppage will ultimately lead to a recession in development and housing projects.”

The Ministry of Industry, Mines and Trade recently issued a directive limiting cement and steel factories to using only 10 percent of their electrical capacity.

Power restrictions began in May, earlier than the typical summer peak demand period.

“Currently, in many parts of the country, household cooling equipment has not yet fully entered the consumption circuit, but we have faced blackouts,” Raisi said.

The production slowdown is affecting employment in the sector.

Raisi warned that continued power shortages will leave producers with “no option but to reduce their workforce.”

Wage reductions are already occurring at many facilities.

Supply limitations have already caused cement and concrete prices to fluctuate, while exports of the products continue.