Fakoor Expands Its Activity Chain from Projects to Investment

In the mining and mineral industries, merely having the capability to execute a large project is no longer sufficient to build a sustainable business. The capital-intensive nature of projects, the lengthy execution periods, the complexity of financing, the risk of receivables, and the fluctuations in investment cycles have posed serious challenges to traditional contracting models. In such an environment, competitive advantage is gradually shifting from 'project execution capability' to 'problem-solving ability and value creation across the entire project chain.' Fakoor Industry has sought to redefine itself in recent years at this juncture; a company whose activities have evolved from executing industrial and mining projects to a broader combination of engineering, procurement, execution, operation, production, investment, and financing. If successful, this change will transform Fakoor from a project-oriented contractor into a multi-business and solution-oriented enterprise; a model where a project is not just a source of income but can also be the starting point for creating an asset, economic partnership, or longer-term presence in the value chain. This change in the business model becomes even more significant as Fakoor Industry enters the capital market; because the market, alongside profitability and project performance, must also assess the quality of revenues, asset structure, the composition of subsidiary company portfolios, investment capacity, and how Fakoor manages financial and operational risks. From this perspective, the main question regarding Fakoor is not just the number of upcoming projects, but how this company intends to build a coherent and value-generating portfolio from a diverse set of projects and businesses. In an interview with Javad Saeidi, the Deputy for Investment and Corporate Affairs at Fakoor Industry, we have looked at the company's transformation path from this angle. From the reasons for moving away from the traditional contracting model and strategies for creating stability in an inherently volatile business, to managing working capital and financing large projects. In another part of this interview, the position of subsidiaries and assets of Fakoor, the portfolio management plan after entering the capital market, and the growth potential of the technical and engineering services market in mining and mineral industries have been examined. Saeidi emphasizes in this interview that Fakoor is focusing more on 'quality of growth' rather than merely increasing the number of projects for the future; growth that is expected to result from a combination of technical knowledge, execution capability, investment perspective, and active asset management. Ultimately, one of the most important questions facing a project-oriented company on the brink of entering the capital market is raised: Has Fakoor managed to overcome the inherent fluctuations of projects and create a business model that can generate sustainable value for shareholders in the long term?