More than 85% of the chemicals and equipment used in Arvand Petrochemical Company in Mahshahr, Khuzestan Province, have been indigenized, the managing director of the company said.
“The indigenization of items has helped save $22.5 million,” Mohammad Reza Karimi was also quoted as saying by the National Petrochemical Company’s news website.
Last week, the company signed several agreements and MoUs with 30 domestic companies worth $12 million to indigenize more chemicals and equipment.
According to Karimi, the Arvand plant is currently producing at full capacity as a result of the efforts of Iranian manufacturers and knowledge-based companies in the past four years.
The company has so far localized 32 types of catalysts and chemicals, from a total of 50 used in different units with the help of local firms.
The new plan entails the production of about 11,000 tons of various products by Iranian companies. The main use of localized products is in the production of VCM, S-PVC and E-PVC.
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 in 2021. 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 in 2021, of which the net profit was $203 million, an unprecedented figure in the history of the company.
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 PVC and caustic soda 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.
