Economy, Domestic Economy

Worthwhile Investment in Plastic Bag Production

Worthwhile Investment in Plastic Bag ProductionWorthwhile Investment in Plastic Bag Production

Despite environmental concerns raised during the past few decades regarding the use of plastic products, the extensive plastic bag consumption underscores the ever-rising demand for this product and the considerable turnover of the industry both at home and abroad.

The Persian daily Forsat-e Emrooz recently published an article on production of plastic bags and the sector’s investment potential in Iran.

According to the head of Plastic Products, Melamine and Oilcloth Manufacturers and Sellers Union, the last decade was the golden period of Iran’s plastic industry.

“We were exporting nearly 200 tons of plastic bags to Turkey, Iraq, Persian Gulf littoral states, Pakistan, Azerbaijan and Russia per day,” Rahim Moqimi-Asl added.

He noted that the significantly high value added in this business led to high demand for investment in the sector.

“About 1,800 plastic bag production factories are currently active in Tehran, rendering the industry completely self-reliant in meeting domestic demand,” he said.

“There is no need for imports and smuggling is next to zero.”

According to Mohammad Hashemi, a player of the field, close to $57,000 in initial capital and a 500–square-meter plot of land are required to set up a plastic bag production line for manufacturing 400 kg of plastic bags per day using Iranian machinery.

He added that the output can be doubled once higher quality foreign-made equipment are purchased, which costs almost twice as much.

Hashemi recommended potential investors to move beyond the production of simple plastic bags and consider the manufacture of bubble wraps, oilcloths and specialized plastic products for a bigger profit margin.