CEO Says Value-Chain Completion Key to Balanced Growth

CEO Says Value-Chain Completion Key to Balanced Growth
(Wednesday, January 7, 2026) 14:10

TEHRAN, Jan 6 (NIPNA)– Iran’s petrochemical industry must focus on completing its value chain to secure balanced and sustainable growth, the head of the National Petrochemical Company (NPC) said, highlighting the sector’s role in supporting downstream industries, exports and domestic self-sufficiency despite sanctions.

Hassan Abbaszadeh, deputy petroleum minister and chief executive of NPC, said the industry now underpins more than 15,000 small and medium-sized downstream enterprises, supplying raw materials to domestic manufacturing and agriculture while remaining the country’s largest non-oil source of foreign currency earnings.

“The development of downstream industries and meeting domestic demand is one of the most enduring achievements of Iran’s petrochemical sector,” Abbaszadeh said in an interview with Iran newspaper. “This has created thousands of businesses and strengthened industrial value creation inside the country.”

Iran’s petrochemical industry, one of the few sectors to expand under prolonged sanctions, has evolved from basic commodity production to more complex and higher value-added products, he said. The next strategic priority is to reduce exports of semi-raw materials by completing production chains over the next decade.

According to Abbaszadeh, the sector currently supplies around $13 billion worth of products annually to domestic industries and agriculture, while about 70% of total output is exported. Despite international restrictions, petrochemical exports generate nearly $15 billion a year in foreign currency, which is channelled through the central bank to support the wider economy.

He acknowledged that roughly $2 billion of industrial demand is still met through imports, but said the government has identified the relevant product chains and introduced investors to accelerate domestic production and close the gap.

Abbaszadeh said a series of strategic decisions over past decades had shaped the industry’s trajectory, including the continuation of the Bandar Imam petrochemical complex after foreign partners withdrew during the Iran-Iraq war, the development of the Mahshahr petrochemical hub based on liquid feedstock, and the creation of the Assaluyeh gas-based petrochemical zone linked to South Pars.

He said using shared gas resources to produce export-oriented products such as methanol, ammonia and urea generated far greater value than alternative options such as raw gas exports, helping Iran capture revenue that might otherwise have gone to regional competitors.

Sanctions, while disruptive, have also accelerated domestic technological capability, Abbaszadeh said, citing the localisation of catalysts and equipment once seen as critical vulnerabilities. Iran has now become an exporter of certain catalysts, he added.

Looking ahead, Abbaszadeh said younger managers would play a decisive role as experienced executives retire, urging them to combine innovation with a deep understanding of the industry’s strategic importance.

“The future of the petrochemical sector depends on informed decision-making, investment in human capital and completing the value chain,” he said. “This is the path to resilient growth.”

 


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