Petrochemical companies in Iran can export only after domestic needs are met, managing director of the National Petrochemical Company said.
Referring to the NPC’s support for downstream industries, Behzad Mohammadi said: “Completing the value chain is an important policy and petrochemical plants play a key role in supplying local companies and exports,” the NPC news agency Nipna quoted him as saying.
He hoped that with the help of private firms and knowledge-based companies, the sector could expand manufacturing of diverse polymeric and chemical products.
Speaking about Hegmataneh Petrochemical Plant in Hamedan Province, Mohammadi said its construction is almost over and would start production in spring.
Designed to produce medical grade PVC, the plant will be the 57th petrochemical company active in the country.
PVC produced in this company is of special importance because of its use in manufacturing a variety of products for hospitals and pharmaceutical firms.
Iran will invest $40 billion in the petrochemical sector to increase the annual output from the current 66 million tons to 133 million tons in six years.
According to NPC, four petrochemical projects will be inaugurated by the end of the current fiscal (March). In the next fiscal year (March 2020-21), 16 plants will start production and seven more will be operational the following year. Twenty-six projects will be completed by 2025.
Iran has significantly expanded its petrochemical industry and invested heavily in it over the past two decades. Petrochemical firms now supply most of the domestic needs, thanks to the diversity of products, and export in big volumes.
Big Exporters
Currently, 350 types of petrochemicals are produced in Iran to help meet domestic and international demand.
Many countries buy Iranian petrochemicals, including neighboring states, China, India, Southeast Asia and Europe.
According to a new report by the Industrial Management Institute, petrochemical firms are among 100 top companies that account for 95% of Iran's total non-oil exports.
Persian Gulf Petrochemical Industries Company is among the top 5 on the list.
It is Iran’s largest petrochemical company, and the biggest listed company in the Tehran Stock Exchange, accounting for over 11% of market capitalization of domestic stock market. It accounts for 37% of the total domestic petrochemical production.
PGPIC is also first among 500 Iranian firms in terms of profit making. It is Iran’s largest exporter and generated $2.7 billion in overseas sales in 2019.
Besides PGPIC, Zagros, Laleh, Pars, Fanavaran, Maroon, Amir Kabir, Jam, Mobin, Arya Sasol, Shazand, Commercial Petrochemical, Arvand, Khark, Shiraz, Tondgouyn and Jam Polypropylene are other top petrochemical producers.
