Soroush Khosravi, Ghadir’s chief executive, said
the company’s annual output has exceeded its nameplate capacity of 120,000
tonnes since July last year. Despite higher production, he said PVC makers face
mounting challenges that threaten profitability.
“The sharp increase in feedstock costs relative
to sales prices is our biggest concern. Without support from decision-making
bodies, the government and the National Petrochemical Company (NPC), the
industry has no clear future,” Khosravi was quoted as saying.
He noted that while Ghadir faces no serious
supply issues in electricity or gas, high power prices remain a burden. Gas,
used only as fuel and not as feedstock, does not pose a significant challenge.
Khosravi highlighted that export tariffs on PVC
were raised from 0.5% to 10% two years ago, a move that has cut the industry’s
exports to less than one-twentieth of previous levels. “The government must
urgently propose a solution,” he said, adding that multiple appeals from
producers, trade associations and NPC have so far failed to bring relief.
Ghadir has also launched production of a new S57
grade of PVC, used in pipe fittings, but Khosravi said pricing policies fail to
reflect true costs. “We incur more than 20% in additional costs to produce this
grade but only receive 10% higher prices, which is not economically viable,” he
added.
On localization, he said Ghadir had achieved some
success by replacing imported drying centrifuges with domestically built
equipment developed by a knowledge-based company. “The local unit is as good
as, if not better than, its foreign counterpart,” he noted.
However, Khosravi cautioned against excessive
reliance on self-sufficiency policies. “Each country has its area of
expertise—some in oil, others in IT, automotive or food industries. Expecting
one country to cover all areas is unrealistic. An excessive focus on
localization risks misguiding policymakers and ultimately leads to failure,” he
said.