Talks are underway with European firms including an unnamed German company to increase polypropylene production in Rejal Petrochemical Complex in Bandar-Mahshahr, Khuzestan Province, vice president of Iran's Association of Petrochemical Industry Corporation said.
“Some European firms have submitted development proposals to provide Iran technology to boost polypropylene production capacity. But no contracts have been signed," Mohammad Ali Rejali was quoted as saying by Mehr News Agency on Monday.
Commenting on constraints to expanding production capacity of the key commodity, Rejali said, "Not only are we deprived of the necessary technical knowhow, but also Rejal complex is not provided with propylene as feedstock to produce polypropylene."
The complex produces 160,000 tons of polypropylene per annum, Rejali said, noting that plans are in place to increase the capacity to 220,000 tons per year as soon as the obstacles are removed.
Polypropylene is a thermoplastic polymer used in a wide variety of applications including packaging and labeling, textiles, carpets, stationery, plastic parts and reusable containers of various types, laboratory equipment, loudspeakers, automotive components, and polymer banknotes.
Polypropylene is the world's second-most widely produced synthetic plastic, after polyethylene.
According to Rejali, in order to meet the complex's demand for feedstock, Salman Farsi Petrochemical Complex is being constructed in Mahshahr Petrochemical Special Economic Zone in the south. The plant will produce 450,000 tons of propylene per year once operational.
Salman Farsi complex is estimated to cost $310 million, part of which will be funded by the National Development Fund of Iran and the rest by Rejal, Maroun and Navid Zar Chimi petrochemical plants in Bandar-Mahshahr.
Talks With Italians, French Firms
"A group of Italian investors are negotiating to finance a propane dehydrogenation (PDH) unit and polypropylene (PP) production plant in Jam Petrochemical Complex (JPC)," Hossein Mirafzali, the JPC managing director, said, noting that JPC is one of the biggest Iranian producers and exporters of polymer.
"We intend to expand our activities and are interested in cooperation with Italian investors on building the new production units," he said.
According to Ali Mohammad Bosaqzadeh, a deputy director at the state-owned National Petrochemical Company, negotiations are underway with France's Air Liquide global E&C Solutions (formerly Lurgy GmbH) on construction of a polypropylene production plant.
“To complete the value chain of the petrochemical industry, NPC has set a tight schedule, which entails cooperation between Air Liquide and Iran’s Petrochemical Research and Technology Company in building a polypropylene unit in Iran,” Bosaqzadeh noted.
Air Liquide is an engineering, construction and chemical process licensing company. Since 2007, it has been part of Air Liquide S. A., a multinational company which supplies industrial gases and services to industries.
The company's operations range from providing technology and services in petrochemical and refining sectors to renewable energies.
According to Bosaqzadeh, this would be the first time that the French multinational would embark on a joint venture with Iran for polypropylene production.
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