Liquidity is the most important problem of shutdown units

Liquidity is the most important problem of shutdown units
  • 2020-06-21
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Deputy Minister of Planning and Program of the Ministry of Industry: Rehabilitation of closed industrial units is one of the priorities of the Ministry of Industry, the most important problem of which is the lack of liquidity.

According to the International Iranian Stone Exhibition, Saeed Zarandi, Deputy Minister of Planning and Program of the Ministry of Industry, stated regarding the completion of semi-finished projects and rehabilitation of stagnant units: We must first complete the semi-finished projects and return the semi-finished capacities to the production cycle.

Referring to the importance of restarting the shutdown units, he said: "The shutdown units in each province have been identified separately and their problems have been investigated." Many units have management problems, but their problem is the lack of liquidity, which is the most important challenge facing production.

Zarandi added: "Lack of liquidity, lack of market, legal disputes of partners, supply of raw materials and machinery are among the problems of the closed units."

The Deputy Minister of Planning and Programs of the Ministry of Industry stated: There are nine thousand eight hundred and twenty-one closed industrial units in the country, and many owners of closed or semi-closed units raise liquidity, management or lack of sales market problems.

The official said: "We have started the plan to rehabilitate stagnant units since last year, during which a thousand units of closed production units have been reduced." We should not allow the country's capital to be imprisoned somewhere without use.

"Our proposal to new investors and producers is to set up holiday units," Zarandi said.

"We prioritize government support," he said. "We support a unit that has a market. Criticism can be provided, but a product that doesn't have a market has sunk into a quagmire and is adding to its problems every day."

Zarandi said: "The production unit that has a sales market, especially an export market, is a priority for our lending."

Regarding the ministry's plan to launch holiday units this year, the Deputy Minister of Planning and Industry said: "This year, it is planned that seven hundred closed industrial units will return to the production cycle with the new investor and 1,500 units will be reopened with the previous owners."

He said: "Seventy-one thousand and two hundred licenses for the establishment of industrial units have been issued in the country, of which twelve thousand and eight hundred units are with sixty percent progress and are in the priority of support for launching as soon as possible."

Zarandi pointed to two types of divisions between the propulsion industry and saturation for investment, saying that the propulsion industry is not a priority for support. New investors need to be directed towards investing in propulsion units.