Iran's state-owned Esfahan's Mobarakeh Steel Company has assigned a large steel project to China's Xian Heavy Equipment & Technology without holding a tender, Sharq newspaper reported on Thursday.
The newspaper says the project will cost 200 million euros more than a similar contract with a previous German partner despite the fact that the Chinese company has no prior experience in steel production.
The German company – SMS Group -- had won the contract at a cost of $400 million in a tender in 2017 but abandoned the project due to U.S. sanctions. The company had a long history of working with Esfahan's Mobarakeh since its establishment in 1993.
According to the Financial Times, Xian Heavy Equipment & Technology Co., Ltd was founded in 1994 and its line of business includes the wholesale distribution of industrial machinery and equipment.
