Iraqi Prime Minister Mohammed Shia’ al-Sudani made a significant move on Saturday by reopening three essential plants in Basra, southern Iraq, that had been closed since the U.S.-led invasion. Among these was a rolling mill plant, part of the State Company for Iron and Steel, which had been inactive since 2003. This plant has the capacity to produce 500,000 tons annually.
The decision to reopen this factory is expected to have various positive impacts on Iraq. Al-Sudani’s office stated that it will help reduce the country’s reliance on iron imports, save foreign currency, and create new job opportunities by providing a national product.
In addition to the rolling mill plant, two other key facilities were reopened in Basra. These include a urea fertilizer plant with a daily output of 1,000 tons and a DAP fertilizer plant with an annual capacity of 500,000 tons, both part of the Southern State Company for Fertilizers, and closed for several years.
The revival of these plants came about through contracts with two foreign companies, marking a positive development for Iraq’s industrial sector.
Prime Minister al-Sudani emphasized the vital role that Basra plays in Iraq’s economy. He highlighted how the province has evolved from being solely a port and oil hub to now being recognized as a crucial industrial center, earning the title of Iraq’s economic capital.
The U.S.-led invasion in 2003 led to the closure of many factories in Iraq due to the chaos, tensions, and insecurity that followed. However, in recent years, there has been a shift towards reopening some of these facilities to diversify the economy and reduce the country’s heavy dependence on revenue from crude oil exports, which currently account for over 90 percent of Iraq’s income.
