This "Industrial Model Town of Karaj" was intended to be the site of the country's first steel mills, capitalizing on easy access to water and coal from the Alborz. However, the construction equipment imported from Germany was impounded by the British going through the Suez Canal in 1940, and the planned complex was never built.

A major industrial complex, the first privately owned one in Karaj, was built in the 1960s by Mohammad-Sadeq Fateh. This complex, called