The installed capacity for polymer production is expected to reach 20 million tons per year in the seventh five-year development plan (2022-27).
Based on data from the Oil Ministry and the National Petrochemical Company, the current annual production capacity of 9 million tons will witness a 120% growth in the next five years, IRNA reported.
To diversify the basket of petrochemical products, plans are in place to add five new polymer items to the production list during this period.
Close to 500 polymer grades are produced in the petrochemical industry, some of which include polyethylene, polyethylene terephthalate, polypropylene, polyvinyl chloride, polystyrene and acrylonitrile butadiene styrene.
Iran ranks first in the export of polymer products to Armenia, second to the Republic of Azerbaijan and sixth to Pakistan.
The country currently exports plastic and polymer products to the Middle East and Asia-Pacific region and is planning to enter African markets. The Iranian Oil Ministry said it has a roadmap for getting a bigger share of the international polymer and plastic markets.
Given the comparative advantage of the energy sector, polymer and plastic industries have continued to expand in the past two decades.
Due to the growing need for an efficient economy, heavy materials such as glass and metals are being replaced by lighter variants, including polycarbonate, in the auto industry. As a result, the global polymer market is expected to increase from $533 billion in 2019 to $838 billion by 2030.
This is because PC and other polymers have excellent electrical, mechanical, insulating, optical and chemical properties, as well as a high strength-to-weight ratio and elasticity and corrosion resistance.
Currently, almost 30% of all automotive components are being made from polymers. And with the rising demand for electric vehicles, the polymer market is expected to grow further, as these materials are used to make lightweight battery packs.
Driving the Demand
As a result of the growing concerns regarding air pollution, the need for lightweight vehicles, preferably electric variants, is driving the demand for polymers.
NPC estimates indicate that around $80 billion on investment have been made in the petrochem sector over the last three decades and the same amount needs to be invested in the next 10 years to complete the value chains.
According to Saeed Torkaman, the chairman of the board of Iran National Plastic and Polymer Industries Association, the polymer industry accounts for 2.2% of Iran’s non-oil exports.
“The polymer industry accounts for 1.5% of GDP and 3.6% of employment in the country. In 2020, polymer exports declined, which reached about $2.5 billion, while exports of complementary petrochemical industries were about $2.7 billion,” he added.
Torkaman noted that complementary industries can be an attractive market for the petrochemical industry, as they can also help generate revenues for the country.
“A domestic knowledge-based company has designed a smart polymer gel that has a price advantage over foreign counterparts and can significantly prevent the outflow of foreign currency,” said Salman Qorbanizadeh, CEO of Petro Vision Pasargad Oil and Gas Project Management Company.
The smart polymer gel is used in the oil industry to prevent the extraction of water along with oil.
“Smart polymer gel helps prevent water from mixing with oil because the water is salty and causes problems in the extraction process,” he added.
The polymer gel is injected into the oil well such that oil passes through it and keeps the water underground.
“The Iranian polymer gel, which is being mass-produced, is completely indigenous and compatible with the country’s climatic conditions,” he added.
“Polymer exports earned $3.3 billion in the last fiscal year (ended March 20, 2022), accounting for 7% of Iran’s non-oil export revenues,” Barmak Qanbarpour, a member of the Board of Directors of Iran National Plastic and Polymer Industries Association, said.
He added that the figure experienced a 32% growth compared to that of 2020 when it barely stood at $2.5 billion.
“The uptrend in sales was not only because of the rise in petrochemical prices, but has also been triggered by the removal of global restrictions related to the Covid-19 pandemic,” he said.
The official announced that Iran’s non-oil export revenues hit $48 billion in 2021 and polymer industry accounted for 7% of the turnover.
According to Qanbarpour, the polymer sector comprises 3.5 million tons of the total petrochemical production capacity that stands at 75 million tons per annum.
