Germany’s BASF, the world’s biggest producer of chemicals, has opened its Tehran representative office, Jam Petrochemical Company’s commercial director announced on Monday.
“The BASF’s office in Tehran will facilitate and accelerate the process of negotiations on the company’s investment [in Iran’s petrochemical industry] and export of products to Europe, particularly Germany,” Kambiz Mirkarimi was also quoted as saying by Mehr News Agency.
Founded in 1865, BASF comprises subsidiaries and joint ventures in more than 80 countries and operates about 400 production sites worldwide.
While the German company has been in talks with National Petrochemical Company over the past year, no investment contract has thus far been signed.
About three months ago, however, the two companies signed a memorandum of understanding worth €6 billion (over $6.764 billion) on the construction of a large petrochemical plant in southern Iran.
Based on the MoU, BASF is delegated to build the petrochemical complex in the second phase of South Pars Gas Field in Asalouyeh.
The complex itself will constitute two phases: in the first, ethylene and in the second, a wide range of polyethylene grades will be produced.
Parviz Sahafzadeh, the deputy head of Iran’s Association of Petrochemical Industry Corporation, earlier said that based on preliminary agreements with BASF, a part of manufactured materials will meet Iran's domestic needs and the rest will be exported.
Pointing to ongoing talks, the official noted that the two sides intend to resolve issues like the price of natural gas as feedstock and the construction of value added processing units.
