The factory, Khan Steel, has been established by a private entrepreneur with a total investment of around $30 million.
The head of the factory Khan Mohammad Wardak said the factory will start iron production in accordance with the international standards and procedures.
Wardak further added that the factory will produce enough iron to respond up to 30 percent of the construction needs of the country.
He called on government leaders to help the iron melting and production sector to boost its outcome, specifically by providing access to the scrap metal belonging to the ministry of defense.
Speaking during the ceremony, President Ghani said the steel production in Afghanistan has reached to 220 thousand tons during the current year as six firms are actively operating in this sector.
He thanked the owners and workers of Khan Steel for inaugurating the factory and said he is optimistic that the factory will have a good start.
President Ghani further added that meetings will be organized with the ministry of defense to resolve the issues pertaining to the scrap metals of the ministry of defense as well as easing access to iron ores in the country.