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NPC CEO Announces Increased Polymer Sales as Testament to Support for Downstream Industries

NPC CEO Announces Increased Polymer Sales as Testament to Support for Downstream Industries
(Monday, September 9, 2024) 10:17

TEHRAN (NIPNA) - The CEO of the National Petrochemical Company (NPC) announced a significant increase in polymer sales, underscoring the company’s commitment to supporting downstream industries.

Speaking at the 18th IranPlast International Exhibition, NPC CEO Morteza Shahmirzaei highlighted that credit sales of petrochemical products have enabled domestic buyers to purchase over 1.3 million tons of various polymers last year. This initiative has facilitated the purchasing power of manufacturing units.

Shahmirzaei noted that, in line with the Seventh Development Plan, incentives for feedstock discounts for petrochemical units are being planned. Upstream oil industry companies, including the National Iranian Oil Company, National Iranian Gas Company, and National Iranian Oil Refining and Distribution Company, are mandated to supply feedstock to petrochemical units.

Investors in the upstream sector are required to allocate at least 40% of their annual profits to the development of the value chain. This allocation allows them to benefit from feedstock discounts of up to 17% for liquid feedstocks and up to 30% for gas feedstocks, depending on their activities in specific regions and value chain segments.

The NPC has expanded credit sales of petrochemical products in collaboration with the Ministry of Industry, Mine, and Trade to ease the operations of downstream units facing liquidity issues.

Shahmirzaei emphasized that downstream units producing final petrochemicals in complementary industries receive the necessary feedstock to reach the final product stage.

Last year, the domestic sector purchased over 1.3 million tons of various polymers, demonstrating the enhanced purchasing power of manufacturing units. The NPC also facilitated credit sales worth approximately 800 trillion rials, contributing to the industry’s $16 billion in foreign exchange earnings in 2022. Each layer of petrochemical products converted to the next feedstock adds approximately 15% in added value.

Shahmirzaei stated that there are currently no supply restrictions on the stock exchange. According to current guidelines, as long as there is domestic demand and real consumers and producers of petrochemical products are identified, there are no supply limitations. Surplus products may be exported with the approval of relevant authorities.

The IranPlast exhibition plays a crucial role in connecting domestic producers with foreign buyers, with hundreds of contracts expected to be signed during the event.

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