Iran 2017 | ENERGY | B2B

Petrochemicals form a key part of the Iranian industrial matrix, adding value to the export basket.

Hassan Amouzadeh
Managing Director
Petrochemical Industries Investment Co. (PIIC)
Mostafa Taheri Najafabadi
Chairman of the Board
Petro Farhang Company

How does your organization create value?

Hassan Amouzadeh From the first day this company was established, it has aimed to be a company that drives the development of investment in the petrochemical industry in Iran. PIIC started under the supervision of the National Petrochemical Company (NPC), which is also a subsidiary of Ministry of Petroleum. Some of the largest petrochemical companies in Iran started with the support of PIIC, and we are shareholders in some of them. PIIC, which was the first private company in the petrochemical industry in 1992, works on three levels. First, we work as an investment company that is active in the Iranian stock exchange market. Second, we are an engineering and technical services company that is mostly active in the downstream petrochemical industry. Third, we are a production company, active in the downstream petrochemical industry. PIIC has continuously been able to grow and improve by selling its portfolio and shares. Today, it is considered as one of the biggest private companies on the Tehran Stock Exchange.

Mostafa Taheri Najafabadi Iran has the second-largest natural gas reserves in the world and this gives us many advantages in the petrochemical industry. These include the stability of the national gas price and the highly competitive prices for gas-based raw materials. We are devel direct chemical conversion of natural gas to end products such as polyethylene, polymers, and plastics. The added value of polymers against natural gas makes it attractive to move in this direction. We have to make the most out of our resources and use them to develop value added industries. Petro Farhang is one of the subsidiary companies of the Teachers Investment Fund (TIF), an economic institution founded initially in association with about 1 million teachers. Petro Farhang was established in 2008 as a private company based in Tehran and our policy is to be a major player in the gas, oil, and petrochemicals industries. As a holding company that is part of an investment company, we have many subsidiaries ourselves. Our vision is to be ranked among the five best oil, gas, and petrochemicals holding companies in the next 10 years. We pursue proficient and wise investment in economic activities, especially in the oil, gas, and petrochemical industries, but also in business and commercial affairs. Petro Farhang endeavors to increase its international market share by means of advanced technologies, proper investments, domestic and overseas strategic partnerships, and optimal managing of the organization and its financial resources. We have major goals and objectives such as improving economic efficiency and sustainable profitability, improving the stakeholders' satisfaction, empowering human resources, and increasing investments in developing partnerships.

Which countries are interesting export markets for PIIC?

HA Until last year we were not allowed to export many of our products, because they were strategic. We could only export 20% of our production. After receiving necessary permits, this year 35% of our production will be exported. The first priority is increasing our footprint in the regional markets. For some petrochemical products, like MTBE and MEK, we are trying to negotiate with some international commercial companies to make some facilities in the ports of Iran to export our products to overseas markets including Africa. We are best positioned in countries such as Afghanistan, Pakistan, Iraq, and Turkey because these are economically and culturally linked.

How can partnerships and joint ventures help you in realizing your goals?

MTN One of the most important things we focus on is attracting foreign investments. We want to increase the exports of our production and are already negotiating this with foreign partners. However, we are open to talk with more investors and financers because the value of the projects we have is high. We need to expand our projects and find good investors and contractors that can help us in developing our projects, increasing our production and achieving our goals.