Integrated Value Chains Key to Successful Petchem Divestments – NPC Chief

Integrated Value Chains Key to Successful Petchem Divestments – NPC Chief
(Tuesday, May 27, 2025) 09:43

TEHRAN (NIPNA) – Iran’s Deputy Petroleum Minister and CEO of the National Petrochemical Company (NPC) said that a value chain-based structure is essential for ensuring the success of future privatizations in the country’s petrochemical sector.

Speaking to NIPNA, Hassan Abbaszadeh warned that past divestments—conducted without regard to production continuity—had fragmented the petrochemical value chain, leading to structural inefficiencies and reduced productivity.

He announced that preliminary talks are underway between Persian Gulf Petrochemical Industries Company (PGPIC) and Tamin Petroleum & Petrochemical Investment Company (TAPPICO) to examine the transfer of certain TAPPICO subsidiaries to PGPIC. The move aims to consolidate related operations and establish a more cohesive value chain.

“This is currently under expert review by both parties and no final decision has been made,” Abbaszadeh noted. “However, the priority is to ensure synergy and integration across the sector.”

The NPC chief stressed the importance of tight regulatory oversight, saying the company is closely monitoring all transfer processes to avoid repeating past missteps. He added that any successful privatization must be based on a holistic, chain-oriented vision that prioritizes operational efficiency.

Abbaszadeh also highlighted the constructive role of major petrochemical holdings such as PGPIC and TAPPICO in enhancing industry productivity through internal consolidation and strategic realignment.

Calling for merit-based appointments, he said the petrochemical sector should be run with technical expertise and efficient, analytical management. “The 14th government is committed to empowering professionals, and the President himself insists on appointing qualified individuals to lead key sectors,” he stated.

He concluded by underscoring the need for transparency, expertise, and a program-driven approach to restore the petrochemical industry to its rightful position in the economy.

 


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