Arvand Petrochemical Company in Mahshahr, Khuzestan Province, plans to indigenize all the required catalysts and chemicals with the help of domestic knowledge-based companies.
The company has so far localized 32 types of catalysts and chemicals, from a total of 50 used in different units, the Oil Ministry’s news agency Shana reported.
The new plan entails production of about 11,000 tons of various products by Iranian companies.
According to the company, the quality of domestic catalysts and chemicals is similar to the foreign ones. The main use of localized products is in the production of VCM, S-PVC and E-PVC.
Long-term contracts have been signed with private catalyst manufacturers to determine 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.
Providing downstream industries with raw materials is one of the goals of Arvand Petrochemical Company. Supporting knowledge-based companies and strengthening self-sufficiency in the production of various chemicals are among other missions of the company.
The indigenization of catalysts has helped the company not only survive the sanctions, but also to increase its output.
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.
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.
New PVC Unit
The construction of a polyvinyl chloride (PVC) unit, with a production capacity of 300,000 tons a year is also underway at the Arvand Petrochemical Company.
When the unit becomes fully operational in about two years, the plant’s current production capacity of PVC at 320,000 tons will almost double.
The new unit has been planned due to the rising demand in the domestic market and low market capacity in neighboring countries.
Arvand is the largest producer of PVC in the Middle East. With an annual production capacity of 2.8 million tons of different products, the company also produces VCM, chlorine, sodium hydroxide, suspension polyvinyl chloride, ethylene dichloride and caustic soda.
An estimated 730,000 tons of PVC are produced in Iran annually, of which 50% are manufactured by the company.
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 across the globe.
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.
The company accounts for 90% of the total caustic soda, or sodium hydroxide used in the manufacture of products that form a daily part of our lives, ranging from food, pulp and paper, detergents and textiles.
Arvand produces enough chloride to meet its own needs and also provides it to Bandar Imam, Karoun and Ghadir petrochemical companies (all in Khuzestan Province).
