The development plan underway at Arvand Petrochemical Company in Mahshahr, Khuzestan Province, will help end crude sales, develop downstream industries and create jobs, managing director of the company “The plan includes the construction of a large polyvinyl chloride (PVC) unit, with a production capacity of 300,000 tons a year,” Mohammad Reza Karimi was also quoted as saying by the Oil Ministry’s news agency Shana.
When the unit is fully operational in about two years, the annual production of PVC at the plant will be over 640,000 tons.
“Providing downstream industries with their required raw materials is one of the missions of Arvand Petrochemical Company. Supporting knowledge-based companies and strengthening self-sufficiency in the production of various chemicals are among other missions of the company,” he said.
The managing director noted that the overhaul of the complex was completed last year by Iranian experts and engineers, and with the help of domestic knowledge-based companies, which helped save over $3.7 million.
Referring to the company’s growing sales both in the domestic and foreign markets, he said, “The sales of the company's products increased from 867,000 tons in 2017 to over 1 million tons last year. While the company’s sales amounted to $50 million five years ago, the figure reached $475 million in 2021.”
Karimi noted that the gross profit of Arvand increased from 17 million in 2017 to more than $560 million last year, of which the net profit was $203 million, a figure unprecedented in the history of the company.
Exporter of EDC
According to Karimi, the company became one of the main exporters of ethylene dichloride (EDC) besides supplying local petrochemical companies, such as Ghadeer and Bandar Imam.
A chemical compound, EDC is a chlorinated hydrocarbon, mainly used to produce vinyl chloride monomer (VCM), a major precursor of PVC production. It is a colorless to yellowish liquid with a faint chloroform-type odor.
EDC is made by the direct chlorination or oxychlorination of ethylene. Most EDC plants are integrated with VCM plants. The VCM process generates considerable quantities of hydrogen chloride, which is recycled in the oxychlorination process to generate more EDC.
Preliminary studies on the construction of another VCM unit has also been carried out and it is to be constructed within the next two years.
Arvand is the largest producer of PVC in the Middle East. With an annual production capacity of 2.8 million tons of various products, it also produces VCM, chlorine, sodium hydroxide, suspension polyvinyl chloride, ethylene dichloride and caustic soda.
An estimated 730,000 tons of PVC are produced in Iran annually, of which 50% are manufactured by Arvand Petrochemical Company.
Because of rising demand in the domestic market and low market capacity in neighboring countries, the new unit will be built at the complex.
In addition to meeting domestic demand, the company exports a part of its PVC and caustic soda output to some Middle Eastern countries such as Turkey.
PVC is the world's third-most widely produced synthetic plastic polymer (after polyethylene and polypropylene). About 40 million tons of PVC are produced annually.
It is a versatile material used in window frames, drainage pipe, water pipe, medical devices, blood storage bags, cable and wire insulation, flooring, roofing membranes, stationery, automotive interiors and seat coverings, footwear and packaging.
