Following renovation operations, Ghadeer Petrochemical Company in Mahshahr, Khuzestan Province, has boosted its monthly polyvinyl chloride (PVC) output over the last nine months.
The company’s monthly production of PVC has reached 12,000 tons in the last 276 days, up 20% compared to that of 2021, the Persian economic daily Donya-e-Eqtesad reported.
With the rise in PVC output, the plant has increased its annual PVC production of 120,000 tons in 2021 to 144,000 tons in 2022, which has added $10 million to its monthly revenues.
The report added that not only were old reactors and distillation units repaired, but dilapidated feedstock storage tanks were also replaced with new equipment.
The company's fuel is chlorine and ethylene and plans are underway to build a chlorine production unit in the vicinity of the company.
Ethylene is supplied via pipeline in western Iran and chlorine is supplied by Arvand Petrochemical Company.
Established on a 15-hectare area in 2009, it also produces vinyl chloride monomer with an annual production capacity of 150,000 tons.
The company’s products are used in manufacturing various types of pipes, hoses, electrical insulation, door and window frames, cabinets and automotive parts.
If the company meets domestic needs, its surplus output can be exported to neighboring and CIS countries.
PVC is the world's third-most widely produced synthetic plastic polymer (after polyethylene and polypropylene) with an annual output of about 40 million tons.
Iran currently produces close to 800,000 tons of PVC per year.
Global Market
The global PVC market size is estimated to reach $108.12 billion by 2026, growing at a CAGR of 7.2% during the forecast period, according to a new study published by Report Ocean.
PVC is a vinyl chain polymer and retains its position among top three polymers, coming as it does after polyethylene and polypropylene as the largest synthetic chemical production.
The global PVC market is mainly driven by high demand in some of the high-profile industries that include electrical and electronics, building and construction, automotive and packaging.
Polyvinyl chloride possesses fire-retardant properties and oil/chemical resistance. It is identified with further properties such as being lightweight, having good mechanical strength, abrasion resistance and durability.
An ever-increasing population has led to the proliferation of industries using polyvinyl chloride. A spurt in consumer electronic products and lightweight automotive products has increased demand for polyvinyl chloride.
According to Hassan Abbaszadeh, the National Petrochemical Company’s director for planning and development, the total revenues of Iran’s petrochemical industry will increase by $4 billion compared to the last Iranian year (March 2021-22) and reach $27 billion by the end of the current fiscal year (March 2023).
“This year, petrochemical feedstock will increase and 5 million tons will be added to the production capacity of the petrochemical industry. The annual output is expected to reach 80 million tons and this will help raise exports, which in turn will lead to higher revenues,” he said.
The official noted that last year, the gas feed capacity of petrochemical complexes was equal to 98 million cubic meters per day, which will increase this year to help boost production.
“Our focus is to complete the value chain of petrochemical products so that we can reduce the sale of raw materials and semi-finished products, create more added value and eliminate the need for imports, which currently stand at $1.5-2 billion,” he added.
Referring to investments in the petrochemical industry, Abbaszadeh said, “Due to the lower attraction of foreign investments in the past few years, the main burden has been borne by holding companies and they invest about $4 billion annually in the petrochemical sector.”
Since almost all the big holding companies are semi-private ones, the official hoped that the real private sector would also invest in the petrochemical industry.
“Currently, petrochemical complexes across the country produce 140 types of commodities and an addition of 20 products is planned in the next five years,” he added.
