Siemens, Linde in Petrochem Talks

Siemens, Linde in Petrochem TalksSiemens, Linde in Petrochem Talks

Mobin Petrochemical Company is holding negotiations with German engineering giants Siemens and Linde Group to carry out and invest in Iran's petrochemical development projects, MPC’s managing director announced on Friday.

“Following the removal of sanctions, several rounds of negotiations have been held with foreign companies to embark on joint ventures,” Jamshid Sabzkar was also quoted as saying by IRNA.

According to the official, negotiations are expected to lead to a major agreement with the German heavyweights in the near future. Siemens, headquartered in Berlin and Munich, is the largest engineering company in Europe with branch offices in more than 200 countries.

The principal divisions of the company are industry, energy, healthcare and infrastructure. Siemens and its subsidiaries employ approximately 348,000 people worldwide and have reported global revenue of over $86 billion in 2015.

“Linde has expressed readiness to take over development plans in Iran’s petrochemical industry and is also keen to invest in some projects,” he said.

Underscoring that the amount of money Linde will invest in the projects is yet to be finalized, the official said the company is also ready to purchase the petrochemical output of the units. Linde Group, founded in Germany in 1879, is a multinational industrial gases and engineering company. It is the world's largest industrial gas company by market share and revenue.

The group has over 600 affiliated companies in more than 100 countries, with customers in the industrial, retail, trade, science, research and public sectors.

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Commenting on banking restrictions in the petrochemical industry, Sabzkar said, “We have no problem concerning money exchange and bank transactions, and we have easily imported the necessary equipment.”

He stressed that following the removal of sanctions against Tehran in January, sales and exports of petrochemical products have witnessed a rise.

Several foreign delegations have recently visited the oil-rich Persian Gulf country and held negotiations for new opportunities in the country's resurging petrochemical sector.

German companies have been the most eager visitors, as they are projected to make over $12 billion in investment in Iran’s petrochemical industry.

The latest round of negotiations took place in Tehran in mid-April with the representatives of Germany's major industrial players, including Linde Group and Siemens, to provide Iran's unfinished petrochemical projects with much-needed cutting-edge equipment.

Noting that currently 70% of Iran's petrochemical machinery are manufactured by Linde and Siemens, Majid Baten, the head of petrochemical association for international affairs, noted that recent negotiations revolved around the purchase of state-of-the-art equipment, including compressors and control machinery.

As a subsidiary of Persian Gulf Petrochemical Industry Company, Mobin Petrochemical Company has one of the world’s largest utility complexes. It is located in the first phase of Pars Special Economic Energy Zone in Asalouyeh.