The event was organized by the Oil and Energy Think Tank of Imam Sadiq
University, in cooperation with Arvand Petrochemical Company. The session
featured remarks from senior industry figures including Hossein Najabat, former
CEO of the National Petrochemical Company (NPC), and Bahman Behzadi, deputy CEO
of Arvand Petrochemical. Participants discussed Iran's historical trajectory in
the petrochemical sector, structural challenges, and overlooked opportunities
within the chlorine-alkali industry.
Historic Foundations and Structural Hurdles
Najabat opened with a retrospective on Iran’s petrochemical evolution,
beginning with the establishment of the Shiraz Petrochemical Complex in 1958
and the formation of NPC in 1964. He recalled the heavy reliance on foreign
expertise in early decades and noted Iran’s post-revolution shift toward
domestic self-reliance, particularly after the Iran-Iraq war disrupted
production facilities.
Highlighting Iran’s 20-year development vision launched in 2005,
Najabat said the country had aimed to reach 220 million tonnes of annual
petrochemical production by 2025. “We ended up at just 90 million tonnes—a 62%
shortfall that deserves serious reflection,” he said.
Najabat was critical of the way Iran implemented privatization
policies under Article 44 of the Constitution, asserting that the fragmentation
of NPC into smaller units weakened Iran’s global competitiveness. He pointed to
a €6.5 billion finance deal once backed by NPC as a measure of its former
international standing, now diminished due to poor policy execution.
He also drew a sharp distinction between self-sufficiency and self-reliance,
arguing that Iran never sought total independence from imports but aimed to
ensure strategic domestic production capabilities. “Despite having 100%
capacity in project engineering and fixed equipment manufacturing,
mismanagement has constrained our potential,” he added.
Salt and the Chlorine-Alkali Chain: An Untapped Goldmine
Behzadi focused on the role of salt in the chlorine-alkali industry,
calling it a strategic yet underappreciated feedstock. “Salt is the cornerstone
of producing caustic soda, chlorine, and PVC,” he said. He lamented that both
industry players and the public have overlooked its potential.
He noted Iran’s natural advantages—such as high salinity in the
Persian Gulf and low humidity zones like Mahshahr—and stressed that neighboring
countries are eager importers of Iranian salt. However, he said this demand
remains unmet due to infrastructural and policy barriers.
Behzadi said the global market for PVC—estimated at $97.92 billion in
2024—is expected to reach $146.89 billion by 2029. By contrast, Iran’s annual
PVC output stands at 790,000 tonnes, trailing behind regional demand such as
Turkey’s 923,000 tonnes of PVC imports.
He also criticized the lack of intra-industry knowledge transfer,
noting that while Arvand Petrochemical has successfully implemented membrane
technology in its chlor-alkali units, other major producers, such as Bandar
Imam Petrochemical, have not followed suit. “This is not merely a technical
gap—it is a strategic loss,” he said.
Call for Managerial Reform and Human Capital Development
Both Najabat and Behzadi emphasized the need for competent leadership
and better governance. Najabat argued that managing a $3.5 billion
petrochemical project requires a different level of professional expertise than
smaller ventures, stressing the importance of appointing capable executives.
Behzadi echoed the sentiment, announcing the drafting of new
guidelines for assessing managerial competence. “Pipes, towers, and exchangers
don’t make this industry—people do,” he said, underscoring the central role of
skilled human capital in driving innovation and growth.
Both speakers called for stronger ties between academia and industry
to ensure a more resilient and future-ready petrochemical sector.
The Second National Conference on Development and Foresight in the
Petrochemical Industry is scheduled to take place later this year, continuing a
broader dialogue on strategic reform and investment in Iran’s industrial
future.