Iran: Domestic Firms Can Meet $2b Petchem Demand

Iran: Domestic Firms Can Meet $2b Petchem Demand
(Tuesday, December 9, 2025) 14:06

TEHRAN, Dec. 5 (NIPNA) – Iran’s deputy petroleum minister and head of the National Petrochemical Company (NPC) said domestic manufacturers are now reliable suppliers for the country’s petrochemical industry, but stronger managerial confidence and stricter commitments to quality and delivery schedules are needed to reduce reliance on imported equipment, local media reported on Saturday.

Hassan Abbaszadeh, speaking at the opening of the 9th Asaluyeh Local Manufacturing Exhibition, said Iran’s petrochemical sector purchases roughly $2 billion worth of foreign-dependent equipment annually, representing a “large, strategic” market that could be captured by local firms if supported consistently by mid-level managers.

He said nearly 95% of fixed equipment used in petrochemical plants is already supplied domestically, with only around 5% still imported due to foreign licensors’ restrictions and proprietary know-how. By contrast, rotating equipment such as compressors and process pumps has seen “significant progress,” with most pumps now produced inside the country.

Abbaszadeh highlighted recent milestones including the domestic production of reactor internals in Apadana, full localization of a synthesis reactor in Dena (Sabalan-2), and construction of major fixed equipment for a methanol-to-propylene and polypropylene chain where Iran owns full process technology. The project has targeted an 85% local-content level, well above the industry norm of 70–75%.

He said some high-tech areas still require focused development, including advanced control systems, precision instrumentation, and high-power electromechanical motors. Certain specialty chemicals and catalysts also remain dependent on imports despite substantial recent progress.

Abbaszadeh warned that local suppliers must maintain consistent quality and on-time delivery to gain lasting industry trust. Even minor delays, he said, can impose heavy costs on petrochemical construction projects. He added that some domestic firms deliver a high-quality item once but fail to sustain standards or stable market presence, whereas foreign competitors improve products continuously and offer long-term support.

He said stronger commitment among senior and mid-level managers to prioritize Iranian equipment could turn the country into “a vast industrial fabrication hub” for the oil, gas and petrochemical sectors.

The exhibition, held at the Pars International Fairgrounds in Asaluyeh, features 150 domestic companies, regional petrochemical producers and over 100 knowledge-based firms showcasing equipment and technologies through December 9.

 


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