Shazand Petchem Set for Major Overhaul, Eyes Product Diversification Amid Export Challenges

Shazand Petchem Set for Major Overhaul, Eyes Product Diversification Amid Export Challenges
(Tuesday, June 3, 2025) 15:14

ARAK (NIPNA) – Shazand Petrochemical Company (ARAK) is preparing for a large-scale maintenance shutdown starting June 6, its CEO said, marking the facility’s first overhaul of this magnitude in more than a decade.

Abbas Karimi, CEO of Shazand Petrochemical, told local media the overhaul, which will span approximately one month, involves extensive repairs across all 23 production and utility units. “The last overhaul of this scope was carried out in 2014. This year’s program includes overhauling various compressors and replacing catalysts in the EO/EG unit,” he said.

Some units have already begun gradual shutdowns in preparation for the main maintenance phase.

Shift in Product Strategy Amid Afghan Export Ban

Karimi also revealed that Shazand is shifting its product mix in response to changes in regional trade conditions. Approximately 25% of the company’s sales previously came from A80 hydrocarbon exports to Afghanistan. However, recent regulatory changes by the Afghan government have halted these exports as of May 6.

“Our teams are actively working to introduce new hydrocarbon grades with updated formulations, such as A92, to replace A80 and regain export momentum,” he added.

Feedstock Pricing Reform Offers Financial Upside

Commenting on the company’s feedstock pricing challenges, Karimi criticized the pricing mechanism employed over the past two years, which he said was managed unlawfully by a refinery industry trade association. “We sent more than 35 official letters over the past four months to the relevant authorities,” he said.

Karimi welcomed a recent decision to restore feedstock pricing authority to the National Iranian Oil Products Distribution Company starting in July. “This shift, supported by the Ministry of Petroleum and Parliament, will undoubtedly enhance Shazand’s financial performance and deliver greater value to our shareholders,” he noted.

Shazand Petrochemical, located in Iran’s Markazi province, is one of the country’s major petrochemical producers, supplying domestic and international markets with a range of chemical and fuel products.

 


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