CEO Urges Greater Private Sector Role in Petchem Value Chains

CEO Urges Greater Private Sector Role in Petchem Value Chains
(Wednesday, December 17, 2025) 16:16

TEHRAN, Dec 16 (NIPNA) — Iran’s Deputy Petroleum Minister and head of the National Petrochemical Company (NPC) said on Tuesday that the country’s petrochemical industry can accelerate development and complete higher-value production chains by relying more heavily on what he described as the “real” private sector.

Hassan Abbaszadeh said the informed and strategic selection of value chains was critical to boosting value creation in petrochemicals, adding that private sector participation had a stronger catalytic effect than state or quasi-state entities.

Speaking at an event marking the 30th anniversary of the Kimyagaran Group, Abbaszadeh said that while value-chain development had featured in policy documents for years, recent efforts had become more focused, operational and results-oriented.

He pointed to pharmaceutical value chains as among the most lucrative in the sector, noting that converting basic petrochemical products into medicines and health-related goods generated the highest added value and social impact.

Abbaszadeh said the Kimyagaran Group had successfully established such a chain and was now entering a more active phase of petrochemical investment, with multiple projects expected to come on stream in stages.

“Our greatest achievement is turning a basic product such as methanol into medicines that reach people through pharmacies,” he said, describing this as the ideal model for petrochemical development based on high value-added final products.

He added that the approach went beyond profit-making, prioritising national value creation and ensuring production continued even under difficult economic conditions.

Abbaszadeh said domestic production had replaced a significant share of previously imported medicines, a development he described as particularly important amid restrictions and challenges facing pharmaceutical imports. He added that some private producers were now also targeting export markets.

The NPC chief highlighted two key factors behind successful private sector participation: the intelligent selection of value chains and development driven by genuine private capital rather than state-linked holdings or pension funds.

“Experience shows that wherever the real private sector enters, projects advance faster and with higher efficiency,” he said.

Abbaszadeh said private investors often adopted more flexible development models, either starting from downstream products such as medicines and moving upstream, or gradually expanding along the chain — an approach that reduced idle capital and generated quicker, more stable revenues.

He also said private sector projects typically cost far less than comparable state-run developments, citing cases where similar facilities built by public entities cost more than double those executed by private investors.

Abbaszadeh praised what he described as the private sector’s alignment with state policies, including cooperation during periods of crisis, and said privately owned petrochemical companies had shown high levels of transparency, including in the repatriation of export revenues.

He called on state institutions to reduce bureaucracy, provide clear timelines for permits and feedstock supply, and ensure fair access to opportunities, saying these were prerequisites for attracting private investment.

“We must clearly map out the future of projects for private investors,” Abbaszadeh said, adding that the NPC would continue efforts to act as a facilitator to open new horizons for Iran’s petrochemical industry.

 


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