Private sector is capable of indigenizing all kinds of catalysts needed by steel, petrochemical and oil industries, on condition that the government stops its disruptive interference in the fast-growing industry, the deputy manager at Catalyst Producers Association said.
“If state-run firms do not monopolize the fledgling catalyst sector and stop importing foreign brands, startups and knowledge-based companies are able to meet all the requirements of the domestic market,” Hossein Navaei was also quoted as saying by IRNA.
The private sector is looking forward to the elimination of government interference by ending the hold of government ownership and management in economic endeavors, he added.
Navaei noted that the government’s intervention in the catalyst market is a recipe for disaster and the industry cannot thrive unless government-owned institutions stop meddling in private sector activities.
The presence of the government in all economic segments of the country is one of the main reasons hobbling the catalyst industry’s growth. State-run establishments, organizations and companies have overshadowed private sector entities and have at times shut them out of the market.
More than 80% of Iran’s economy are run by governmental and quasi-governmental companies in crude oil exploration, technology and trade, petrochemicals and natural gas sectors. These sectors account for 80% of Iran’s export revenues and generate 40% of government budget, which created heavy dependency, particularly for the giant state-run companies.
“If they [government] do not stop interfering in our business, most of our firms will go bankrupt,” he said.
According to the official, more than 4,000 people are active in the field of catalyst production and they produce close to 120,000 tons of catalysts that are categorized in 100 groups.
“If it were not due to domestic indigenization of catalysts, several industrial units would have either shut down or operated at half their capacity,” he said.
According to Behzad Mohammadi, the former managing director of National Petrochemical Company, petrochemical plants and oil refineries use $400 million worth of catalysts per year, a majority of which is produced locally.
Global Market
Mohammadi said the global catalyst market is worth $18 billion per annum, of which 2.2% are used in Iran.
Iranian companies use at least 23,000 tons of catalysts a year. Due to the large size of Iran’s petroleum and petrochemical sectors, most of the demand comes from related firms. Private companies produce 20,000 tons of catalysts a year, covering most of the demand.
Petrochemical and refining plants need 40 types of catalysts, 16 of which are produced with the help of several local companies, namely Sarv Oil and Gas, Pars Pigment and Catalyst, Gahar Seram, Nano Pars Spadana and Pishgaman Catalyst Pars.
Catalyst consumption is rising and local companies are improving their R&D activities to add to their prowess as they race to keep up with the times and not fall back from their foreign competitors.
“Today, and in the future, this will be vital for the petrochemical industry,” he said.
A catalyst speeds up a chemical reaction but is not consumed by the reaction. Most solid catalysts are metals or oxides, sulfides and halides of metallic elements and of the semi-metallic elements such as boron, aluminum and silicon.
The former NPC chief said the company has indigenized nine more types of catalysts with the help of private companies in 2021.
“Catalysts play an essential role in the production of petroleum, polymers and chemicals, and that is why the petrochemical industry’s growth is intertwined with the level of catalyst production,” he added.
In fact, the production of most key chemicals depends on catalysts. Selecting the right material for each product is a sensitive issue because any error in the catalyst can bring the entire petrochemical plant to a halt.
Referring to global figures, Mohammadi said the world market is expected to grow substantially and reach $35 billion in 2025.
