Iran’s Petrochemical Commercial Company is considering plans to open sales offices in Brazil, Switzerland, Germany and the UK after the removal of western sanctions on its civilian nuclear program, the company’s chief executive said on Saturday.
‘PCC has nine offices worldwide, including in India, Germany, Singapore, the UK and South Korea, while maintaining operations in Switzerland, Brazil and Indonesia under joint ventures,’ Mehdi Sharifi Niknafs said, according to Financial Tribune.
Niknafs added that PCC has established warehouses in all target markets to raise its bargaining power by storing petrochemical products.
‘For instance, PCC has three sales offices, 20 warehouses and two chemical storage units in China,’ he said.
PCC had earlier announced plans to reach out to member states of the CIS (Commonwealth of Independent States) and some EU members such as Spain. It reportedly makes up around 35%, or more than one-third of Iran’s total petrochemical exports.
The official added that Iran had a 30-35% stake in the European petrochemical market, but sanctions dramatically shrank the country’s share over the past few years.
‘We must reclaim Europe’s petrochemical market,’ Niknafs said.
To do so, Iran introduced investment opportunities in post-sanctions petrochemical sector to major international companies, as it aims to land $70 billion in foreign direct investment in petrochemical projects over 10 years.
Nominal production capacity currently stands at 60 million tons a year, but plans call for doubling the volume by 2021 and raising the output to an ambitious 180 million tons a year by 2025.
A Singaporean shipping company, Quincannon Asia Pte Limited, is awaiting the lifting of sanctions against Iran to take a claim in Iran’s ‘lucrative’ petrochemical industry, according to the managing director of the company.
‘Sanctions-removal translates into a unique opportunity to develop Iran’s petrochemical sector,’ Mark Mirosevic-Sorgo was quoted as saying by Mehr News Agency.
The official added that the Persian Gulf country enjoys advantages, including its huge methane-rich gas reserves, which are not found in other regional countries’ petrochemical industries.
‘In addition to Asian firms, which have cooperated with the country before, European companies’ eagerness to enter Iran’s market for the first time is significant,’ Mirosevic-Sorgo said.
Stressing that Quincannon Asia is for the first time mulling over cooperation opportunities with Iran, he said the company is professionally active in gas and petrochemical shipping.
‘In light of Iran’s high potentials and the prospect of global gas and petrochemical markets, bilateral cooperation between the two countries is very promising,’ he said.