An official from Iran’s National Petrochemical Company (NPC) has said his company is in talks with the major German chemical producer BASF for a giant joint investment project.

According to SHANA, Vice-President of the company Mohammad Hassan Peyvandi said, “In the negotiations with foreign firms, we stress on joint production of equipment and development of the petrochemical industry rather than purchase of goods.”

He made the remarks in a press conference on Iran Petrochemical Forum (IPF) 2015 to be held in Tehran on December 13-14.

The NPC official referred to the achievements gained by Iranian firms under sanctions and introduced the capacities to develop Iran’s petrochemical industry.

“Iran’s coastlines of Persian Gulf and Oman Sea are one of the best locations for investment to launch petrochemical projects,” he added, “Iran’s private sector enjoys the advantages of skilled manpower and available feedstock,” he said.

“The oil price slump in world markets, rise of ethylene and propylene production in China and the US shale oil and gas boom are the biggest challenges the petrochemical industry is faced with in the world and Iran remains the only stable and safe Middle Eastern country which is still attractive for investors,” he added.

He said Iran has defined dozens of major projects to revamp its petrochemical industry and dramatically boost output, whereas under sanctions it had to reduce exports by 5 million tons a year during 2011-2013.

“Iran’s petrochemical production capacity stands at 60 million metric tons per year but the country produces 45mt/y which is because of feedstock shortages in petrochemical plants. Plans are underway to add 60mt/y to Iran’s output which will bring Iran’s total petrochemical production capacity to 120mt/y by the end of the 6th Five-Year Development Plan (2016-2021),” said the official.

Peyvandi also told reporters that some 97 foreign companies from 25 countries have confirmed their participation in the IPF 2015 which shows an increase of 120 percent compared to IPF 2014.

“More that 1,500 representatives from domestic and foreign firms including Australia, Azerbaijan, Canada, Denmark, France, Germany, Japan, the Netherland, Russia, and US will take part in the event,” he said.

In addition to the foreign firms who are sending above 800 delegates, some 368 Iranian companies are going to attend at IPF 2015.

Peyvandi said the high number of foreign firms ready to participate in IPF 2015 indicates their interest in taking part in Iran’s petrochemical projects after sanctions are lifted.