Speaking during a media tour of the complex, Karimi highlighted
Arvand’s readiness to enter the capital market, noting that despite market
conditions delaying the initial plan, the company remains fully prepared for a
stock exchange listing. He emphasized a sustainable, predictable profit growth
strategy aimed at maintaining long-term shareholder confidence.
Karimi outlined key competitive advantages including transparent
governance, stable supply of raw materials and utilities, and strong product
profitability. The company benefits from secure access to industrial salt and
ethylene feedstock, supplied via the Western Ethylene Pipeline and long-term
contracts with major producers, notably subsidiaries of the Persian Gulf
Petrochemical Industries Company (PGPIC).
The CEO also pointed to Arvand’s position as one of the region’s
largest providers of auxiliary production services, with minimal downtime
ensuring steady output across all units. Among its portfolio, caustic soda
stands out as a major profit driver, serving customers nationwide across
multiple industries.
On exports, Karimi reported regular shipments of caustic soda
averaging one vessel per month, balancing domestic demand with growing
international orders. Export prices are closely aligned with domestic rates,
preserving profitability regardless of export volume. Arvand aims to increase
its share in the Middle Eastern PVC market, currently experiencing a
200,000-ton deficit largely filled by imports from the U.S., China, and Taiwan.
Arvand’s PVC product, manufactured under a leading European technical
license set to remain state-of-the-art through 2025, has attracted regional
buyers, including Qatar and the UAE, where similar plants are being established.
Speedy delivery—within 7 to 10 days to clients in Iraq, Afghanistan, and
Central Asia—provides a competitive edge over six-month lead times typical of
Chinese suppliers.
Karimi detailed that over the past five years, the company’s profit
reached approximately 30 trillion tomans, with 20 trillion tomans earned in the
last three years alone. The goal is to sustain this profitability through
effective distribution and continuous production.
Looking ahead, Arvand plans long-term investments focused on maintenance,
modernization, and asset management to secure stable production and returns for
at least the next 15 years. Karimi criticized companies relying on short-term
profits without infrastructure upgrades, underscoring Arvand’s commitment to
consistent growth rather than transient gains.
He noted that while feedstock accounts for roughly 32% of Arvand’s
costs—significantly lower than other regional petrochemical complexes—this cost
structure strengthens its competitive position amid rising raw material prices.
All production stages from raw salt to final PVC output are internally
managed, ensuring operational independence and higher efficiency. The facility
produces five PVC grades meeting domestic needs, recently adding a sixth grade
developed through research and now entering the market.
Karimi described Arvand as a strategic asset vital to national supply
chains, warning that any disruption could force the government to spend close
to one billion dollars to secure alternatives. Investment in upkeep and development,
backed by patient shareholders, remains crucial to the company’s sustainable
success.
The 108-hectare plant recently shared its product list with Almas
Petrochemical, where Arvand holds a 10% stake, to secure future feedstock
supplies. Management adopts rigorous international-style controls and ongoing
performance evaluations, while also addressing cybersecurity and critical
infrastructure protection with increasing vigilance.
Karimi concluded by emphasizing that safety, efficiency, and operational
stability are core priorities at Arvand, aiming to reinforce its role as a
leading petrochemical company in Iran and the broader region.