Executive operations to build a Polyvinyl Chloride Suspension Resin (SPVC) unit, with a production capacity of 300,000 tons a year, are expected to start in March at the Arvand Petrochemical Company in Mahshahr, Khuzestan Province, managing director of the company said.
“The new unit, projected to become operational in 2024, will help add 300,000 tons of PVC to Iran’s current production capacity of 700,000 tons per year,” Mohammad Reza Karimi was also quoted as saying by the National Petrochemical Company's news website Nipna.
“The plant’s domestic sales of SPVC and EPVC [PVC emulsions] rose by 21% and 10% respectively during the first nine months of the current Iranian year [March 21-Dec.]. The company’s net profit margin will witness a 15% growth in 2023 compared to 2022 [$203 million],” he added.
The official noted that the company accounts for 50% of Iran’s total PVC output of 700,000 tons.
“Providing downstream industries with raw materials is one of the goals of our company,” he said, adding that supporting knowledge-based companies and strengthening self-sufficiency in the production of various chemicals are among other missions of the company.
The managing director noted that the complex was overhauled last year by Iranian experts, engineers and knowledge-based companies, which helped save over $5 million.
Referring to the company’s growing sales both in 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.”
Gross Profit
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, which figure is unprecedented in the history of the company.
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, SPVC, EPVC, ethylene dichloride and caustic soda.
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.
SPVC is a polymer manufactured from vinyl chloride monomer. It is used extensively in building and construction, automotive and medical industries.
Indigenizing Catalysts
The plant plans to indigenize all the required catalysts and chemicals with the help of domestic knowledge-based companies, the official said.
“The company has so far localized 32 types of catalysts and chemicals, from a total of 50 used in different units,” he added.
The new plan entails the production of about 11,000 tons of various products by Iranian companies.
According to Karimi, the quality of domestic catalysts and chemicals is similar to that of foreign counterparts.
Long-term contracts have been signed with private catalyst manufacturers to ensure their products comply with international norms and standards at a reasonable price.
The import of some catalysts has become almost impossible due to the US sanctions and were it not for domestic producers, the Arvand plant would have to pull down its shutters long ago.
