Tehran, Iran – A report by Event24 on Thursday indicated a near-total shutdown of production at the Mobarakeh Steel Complex in Isfahan province. This complex is one of Iran’s largest industrial strongholds. The shutdown followed recent US and Israeli attacks targeting the facility. The report also revealed a severe labor and economic crisis gripping the complex. This comes amidst conflicting reports from field sources and official government statements.
Paralysis in the production sector and displacement of the workforce
The report stated that of the more than 27,000 employees working at the complex, only about 2,000 have returned to work. These returnees are primarily concentrated in administrative and organizational departments, while the vital production sector remains completely shut down. This shutdown has drastically altered the lives of the employees. Consequently, some former workers and technicians have been forced to seek alternative means of livelihood, including working as drivers for ride-hailing apps like Snapp and Tap30 to make ends meet.
The website also noted, citing former employees, that a large number of specialized technicians had left Isfahan for steel plants in Yazd and Khorasan provinces. This was due to uncertainty surrounding the factory’s reconstruction. Some also left because of recent significant salary cuts.
Conflicting official and field accounts
In contrast, the Iranian government attempted to downplay the scale of the disaster. Ali Ahmadnia, the head of government media affairs, stated that Mobarakeh Steel Company had not laid off or suspended any employees. He also asserted that the salaries of more than 30,000 employees had been paid in full and on time.
However, testimonies from employees, reported by Event24, refuted these claims. They confirmed that the salaries of a large segment of the workforce had effectively been reduced to the minimum wage set by the Ministry of Labor. This amount is insufficient to cover basic needs in light of high inflation.
Widespread economic repercussions
The Mobarakeh Steel Company is a cornerstone of the Iranian economy. The halt in its production extends to the regional steel market and domestic supply chains. Observers believe that this continued production paralysis will severely impact the labor market in Isfahan province. It also increases the economic pressure on the Iranian regime, which is struggling to maintain the stability of its strategic facilities. This is all happening against the backdrop of open confrontation with Washington and Tel Aviv.
