Economy, Business And Markets

VDMA Backs Iran Trade

VDMA Backs Iran Trade VDMA Backs Iran Trade

Germany’s plastics and rubber machinery trade association, VDMA, has highlighted the importance of Iranian market ahead of the Iranplast trade show to be held in Tehran on Sept. 24-27.

At nearly €38 million, Germany came second to China in terms of machinery exports to Iran in 2017, posting an 87.3% growth compared to the previous year.

However, for the first six months of 2018, German plastics and rubber machinery exports to the country came in at just €15.4 million–30.9% lower than in last year’s first half.

The sudden decline reflected US President Donald Trump’s decision to break from an international nuclear agreement and reimpose economic sanctions on Iran in May.

Overall, Iran’s import of plastics and rubber machinery fell 13.4% year-on-year in 2017 to €205 million.

China continued to lead the table of rubber and plastics machinery exporters to Iran by a high margin at €99 million, despite registering a 33.7% decline compared to 2016.

Trade with Italy also took a downward turn in 2017 at €16.4 million, 17.6% lower than the previous year.

Canada, Japan, Taiwan and South Korea all registered strong growth in machinery sales to Iran during 2017, while traditional suppliers, including Turkey and Austria saw a respective decline of 10.7% and 62% in exports to the Islamic Republic.

Since 2015, VDMA has been organizing an ‘Iran management meeting’ for its members.

In May this year, the association voiced its support for EU efforts to protect European companies against sanctions on their activities in Iran.

“We believe that the fundamental decision of the EU to tackle the problem of extraterritorial sanctions is right, as is currently the case in the US,” said VDMA chief executive, Thilo Brodtmann, in a May 18 statement.

The comments followed an EU move on May 17 to reactivate “Blocking Statute”, which bans European companies and courts from complying with US sanctions against Iran.

This followed Washington’s pullout from the landmark 2015 nuclear deal, earlier in the month.

Iranplast is known as one of the biggest and most specialized international exhibits in the field throughout the Middle East and Asia.

The first iteration was held in 2002. The next four editions were held annually, but from the sixth event, it became a biennale exhibition to enhance its quality, structure and organization, according to Iranplast’s website.

Last year’s and this year’s edition have been scheduled a year apart though.

It is organized by National Petrochemical Company, a subsidiary of the Iranian Oil Ministry and owned by the Iranian government, which is responsible for the development and operation of the country’s petrochemical sector.

Iran Trade Promotion Organization and Iran International Exhibition Company are sponsors of the event.

Add new comment

Read our comment policy before posting your viewpoints