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Iran Petchem Strategy: Value Chain Completion, Product Diversification

Iran Petchem Strategy: Value Chain Completion, Product Diversification
(Saturday, December 28, 2024) 17:11

TEHRAN (NIPNA) – The Iranian petrochemical industry is prioritizing value chain completion and product diversification to accelerate its growth, leveraging global knowledge and advanced technology, according to Saeed Baghbani, Production Control Manager at the National Petrochemical Company (NPC).

Baghbani highlighted Iran's 2.7% share in the global petrochemical market and its 30% share in the Middle East, emphasizing the potential for growth with increased investment and production. "The petrochemical industry plays a pivotal role in the country's economy by supporting downstream industries with a diverse range of products," he noted.

In the past year, the sector supplied 12.7 million tons of petrochemical products domestically, meeting the needs of approximately 15,000 downstream units. Baghbani stressed the importance of shifting towards final product manufacturing and reducing raw material exports to create greater value.

"Products such as methanol, ammonia, and propylene should be further processed into diverse outputs to minimize raw material exports and enhance value addition in the industry," he said.

Baghbani also discussed the significance of attracting new investments, revealing that the Seventh Development Plan includes over 60 projects with an average completion rate of 50%, valued at $24 billion. While half of the required funding has been secured, an additional $12 billion is needed to complete these initiatives.

Modern technology and skilled human resources are vital for sustainable growth, he added, emphasizing that domestic capabilities can facilitate the planned expansion.

He also highlighted the recent inauguration of a wastewater transfer project to Khorasan Petrochemical, aimed at protecting the environment and ensuring a sustainable water supply for the facility.

The Iranian petrochemical industry remains committed to advancing its strategic goals, aligning economic development with environmental stewardship.

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