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PGPIC Approves $22 Million Corporate Venture Capital Fund

PGPIC Approves $22 Million Corporate Venture Capital Fund
(Wednesday, January 15, 2025) 13:07

KISH ISLAND (NIPNA) — The Persian Gulf Petrochemical Industries Company (PGPIC) has announced the establishment of a corporate venture capital (CVC) fund valued at IRR 10 trillion ($22 million) to promote innovative projects within the petrochemical sector.

Speaking at the opening ceremony of the second PetroChem event on Kish Island, Mohammad Shariatmadari, CEO of PGPIC, highlighted the strategic significance of the initiative. “The creation of this fund marks a pivotal step in fostering innovation and advancing knowledge-based activities in the industry,” he said.

Commitment to Innovation

Shariatmadari underscored the necessity of leveraging advanced technologies to achieve Iran’s target of eight percent economic growth. “The key to accelerated growth lies in embracing cutting-edge innovations and fostering creativity,” he remarked.

The CEO acknowledged the challenges of localizing technology amid limited access to international markets. He stressed the importance of consistent investment in domestic production capabilities and strategic innovation.

Industry Challenges and Regulatory Needs

Discussing industry challenges, Shariatmadari pointed out the repercussions of ill-structured privatization efforts, which disrupted value chains and harmed the sector. He emphasized the need for a robust regulatory framework to address these issues.

“The absence of effective regulatory oversight has created uncertainties, particularly regarding supply chains and economic viability of certain projects,” he noted. Shariatmadari expressed optimism about enhanced coordination between key industry players, including the National Petrochemical Company (NPC) and the Ministry of Petroleum.

Strategic Partnerships and Financial Solutions

Highlighting recent discussions with the Minister of Petroleum, Shariatmadari mentioned promising collaborations to develop the Marun Khami and Ahvaz Khami oil fields. He also identified financing and feedstock procurement as critical hurdles for advancing development projects.

With banking sector leaders actively participating in the PetroChem event, Shariatmadari expressed confidence in the formation of financial consortia leveraging resources from domestic and international banks, including institutions in China and Russia.

Market Expansion and Innovation

PGPIC’s market value, estimated at IRR 850 trillion, presents a strong financial foundation for expanding operations in regions such as Makran and Kish, Shariatmadari stated. He also announced the issuance of directives to promote digitalization and efficiency improvements across PGPIC subsidiaries.

Vision for the Future

Shariatmadari praised the dedication of PGPIC’s workforce, expressing pride in the group’s ability to cultivate world-class managerial talent. “Our goal is to continuously train and nurture the next generation of industry leaders,” he concluded.

The PetroChem event serves as a platform to showcase advancements and collaboration opportunities in Iran’s petrochemical industry, with PGPIC playing a central role in driving innovation and sustainable growth.

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