Arvand Petchem to Double PVC Output

Arvand Petchem to Double PVC Output
(Sunday, May 19, 2024) 14:14

CHABAHAR (NIPNA) - Arvand Petrochemical Company plans to double its PVC production following the implementation of a major development project, the company’s CEO announced on Wednesday.

Mohammadreza Karimi, CEO of Arvand Petrochemical, revealed the company's readiness for an initial public offering and outlined the achievements and future plans. "Leveraging Iranian services is a core strategy at Arvand Petrochemical. We have localized the supply chain from specialized equipment to key catalysts, and we aim to source more domestic knowledge and services to enhance downstream unit feedstock and develop new specialized grades," he said.

Karimi emphasized that the company opposes competition in the PVC market. "We aim to eliminate competition and ensure that every company can easily access our products. By executing our development plan, we will double our PVC output and take over the regional market within three years," he stated.

Addressing the PVC shortage in West Asia, Karimi noted, "The Middle East alone faces a deficit of 1.8 million tons of PVC, currently imported from the U.S., Europe, and China. New projects in the region are essential. If we can meet this demand, we can dominate the regional market."

Karimi highlighted the strategic advantages of developing the PVC value chain in Iran, given the abundant salt resources derived from seawater. "With extensive coastlines and maritime access, we must harness these assets and move towards a maritime-based economy, as emphasized by our Supreme Leader," he remarked.

Discussing future projects, Karimi mentioned the construction of a health-grade caustic soda unit supported by the Persian Gulf Petrochemical Industries Company. "We produce 660,000 tons of 100% caustic soda annually, equivalent to 1.32 million tons of 50% caustic soda. This unique grade is not produced elsewhere in the country, eliminating concerns for domestic caustic soda manufacturers," he said.

Karimi also pointed out the company’s role in fostering investment in downstream industries, aligned with the Supreme Leader's directive for production growth through public participation. "Wherever downstream investors step in, we refrain from entering to encourage their participation," he explained.

Karimi assured that Arvand Petrochemical has achieved stable production levels, alleviating supply concerns for dependent companies such as Bandar Imam, Khuzestan, Karun, Ghadir, Abadan, and Hegmataneh Petrochemicals. "With stable feedstock supply, our downstream affiliates are witnessing increased production," he said.

Regarding the company’s plans to enter the capital market, Karimi stated, "We have prepared the necessary infrastructure and prerequisites for an IPO. Our financial systems and transparency measures are fully operational. We are ready to enter the stock market as soon as the major shareholder deems it appropriate."

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