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Ghadir Petrochemical Company to Increase PVC Output, Reduce Costs

Executive operations to build the chlor-alkali unit has recently started at Ghadir Petrochemical Company in Mahshahr, Khuzestan Province, to increase output, the chairman of the company’s Board of Directors said.

“One of the strategic raw materials for the production of polyvinyl chloride (PVC), the main product of the company, is chlorine, which is to be produced at the new unit,” Khosrow Emamqoli was also quoted as saying by Neftema website.

“The project will help Ghadir Company to be self-sufficient in chlorine production and cut dependence on getting the feed from Arvand Petrochemical Plant,” he added.

The chlor-alkali electrolysis process is used in the manufacture of chlorine, hydrogen and sodium hydroxide (caustic) solution. Of these three, the primary product is chlorine. Chlorine is one of the more abundant chemicals produced by industry and has a wide variety of industrial uses.

“It will also help reduce the cost of the PVC product and create employment. The unit has been designed to have a capacity of 150,000 tons per year,” he said.

“One of our main goals for the coming years is to increase our PVC output to 300,000 tons per year.” 

The project is scheduled to be completed within 36 months at a cost of $170 million.

 

Production Record

Ghadir Petrochemical Company broke a 15-year production record during the first 11 months of last Iranian year (March 2022-February 2023) with an output of over 123,000 tons of PVC.

This indicates a 125% increase compared to the output in the same period of the previous year.

Established on a 15-hectare area, the plant also produces vinyl chloride monomer (VCM). It also succeeded in expanding its VCM production last year to 100% of its nominal capacity. The company's daily VCM output hit a record of 460 tons per day.

The use of cutting-edge technology and innovative methods has led to the higher output.

The company's feedstock is ethylene supplied via pipeline and chlorine supplied by Arvand Petrochemical Company. Its products are used in manufacturing various types of pipes, hoses, electrical insulation, door and window frames, cabinets and automotive parts.

Plans are underway to further increase PVC output in the country. Iran currently produces close to 700,000 tons of PVC per year.

PVC is the world's third-most widely produced synthetic plastic polymer (after polyethylene and polypropylene). It is a vinyl chain polymer and retains its position among top three polymers, coming as it does after polyethylene and polypropylene. 

The global PVC market size is estimated to reach $108.12 billion by 2026, growing at a CAGR of 7.2% during the forecast period.

The market is mainly driven by high demand in some of the high-profile industries that include electrical and electronics, building and construction, automotive and packaging.

Polyvinyl chloride possesses fire-retardant properties and oil/chemical resistance. It is identified with further properties such as being lightweight, having good mechanical strength, abrasion resistance and durability.

An ever-increasing population has led to the proliferation of industries using polyvinyl chloride. A spurt in consumer electronic products and lightweight automotive products has increased demand for polyvinyl chloride.