Khorasan Petrochemical Complex in North Khorasan Province produced 257,000 tons of chemical products in the first quarter of the current Iranian year (started March 21), which was up 58% compared with the same period of last year, the managing director of the company said.
“Exports from the petrochemical plant reached $20 million in the spring of the current year,” the Oil Ministry’s news agency Shana also quoted Alireza Babazadeh as saying.
A subsidiary of Iran's National Petrochemical Company, KPC is the largest chemical producer in north and northeast Iran.
Located in Bojnourd, the capital of North Khorasan Province, on an area of 200 hectares, it has ammonia, urea, melamine crystal and utility production units.
“The industrial unit’s surge in output had caused a 35% increase in the company’s revenues and profits compared to the projected plan,” he said.
“This trend is expected to continue, as a development project for increasing output is underway at the plant.”
The plant’s daily production capacity includes 1,500 tons of urea, 1,000 tons of ammonia and 60 tons of melamine.
Urea is widely used in the agriculture sector as animal feed additive and fertilizer.
Ammonia is used in making fertilizers and explosives, where methanol serves as a source for other chemicals.
Melamine is used in manufacturing utensils, plastic products, paper, paperboard and industrial coating, among other things.
KPC exports to several countries, including India, Indonesia, Turkey, Turkmenistan, the UAE and Ukraine.
GTPP Conversion Unit
Babazadeh also noted that the construction of a mini gas-to-polypropylene (GTPP) unit will soon start at the company.
“When fully operational, the unit will have a production capacity of 1.65 million tons of polypropylene per year,” he said, adding that it will create 10,000 direct and indirect jobs.
Propylene is a colorless fuel gas with a naturally pungent smell. It is a key commodity in the petrochemical industry, which can be transformed into value added products like polypropylene and create jobs in the downstream petrochemical sector.
Polypropylene – the world's second-most widely produced synthetic plastic, after polyethylene – is used in a variety of applications, including packaging and labeling, textiles, carpets, stationery, plastic parts and reusable containers, laboratory equipment, loudspeakers, automotive parts and polymer banknotes.
Currently, 980,000 tons of propylene are produced in Iran annually. However, domestic demand is much higher and plans are underway to increase production to 4.5 million tons with the launch of several projects across the country.
The global polypropylene market was worth $122.7 billion in 2019. The major factor driving demand for polypropylene is the rising use of the chemical in the packaging sector and nonwoven fibers. As a result, the polypropylene market is projected to grow to $226.8 billion by 2030.
Rising demand for thermoplastic materials contributed to the growth of polypropylene market. Due to its unique chemical properties, thermoplastic materials can be recycled and remolded without affecting its physical properties, making thermoplastic materials more useful in applications such as clothing, packaging, food and beverages.
The largest region in the polypropylene market is Asia-Pacific and it is also expected to witness the highest compound annual growth rate during the forecast period, as a result of advancements in rigid and flexible packaging materials and the increasing number of production plants in the region.
