Cost reductions are attributed to the three main axes of localizing parts and equipment, enhancing the quality of the products offered, and increasing the resulting capacity. In fact, these three axes reduce the cost base. At present, these are also part of the association’s policies, which seek to make both product quality products more productive, consumable, more indigenous, and internationally competitive in terms of increased production. Certainly, following these policies can have an effective role in reducing the cost price.
In fact, the finished price increases when overhead costs rise, such as when you hire a capacity of 1 million tons to produce at the scale of 6,000 tons. On the one hand, due to the low quality of the products, there is no consumer market and on the other hand you have spare parts adhesion abroad. But if you can manage these three factors, you are both effective at lowering prices and finding new markets to sell.
These three axes are among the policies pursued by the Association, with the main focus being on a localization exhibition, the first of which was held in January last year, and the second is underway.
