Iran Petchem Industry Turns Sanctions into Domestic Innovation Drive

Iran Petchem Industry Turns Sanctions into Domestic Innovation Drive
(Wednesday, January 28, 2026) 14:04

TEHRAN, Jan 27 (NIPNA) – Iran’s petrochemical sector has leveraged international sanctions as a catalyst for domestic self-sufficiency and technological innovation, officials said on Tuesday, highlighting the industry’s growing role in the national economy.


Ghodratollah Nasiri, Director of Research, Technology, and Domestic Production at the National Petrochemical Company, said Iran’s petrochemical industry accounts for more than 30% of the country’s non-oil exports and has transformed sanctions from a threat into an opportunity for local capacity building.

“With decades of investment in regions such as Asaluyeh and Mahshahr, the industry has developed a broad value chain from hydrocarbon resources to advanced polymers and chemicals,” Nasiri said. “Sanctions have accelerated innovation and self-reliance, building on a culture of domestic capability that dates back to the Iran-Iraq war.”

The sector now works with more than 1,700 domestic knowledge-based companies and has invested over 12 trillion rials ($285 million) in developing local production capacity in the past year alone. Projects include the full domestic production of 29 key chemicals and catalysts by Petrochemical Nouri and the conversion of methanol to propylene and polypropylene using homegrown technology.

Nasiri said a five-year plan in collaboration with the Ministry of Industry, Mining, and Trade aims to gradually replace imported equipment with locally produced alternatives while meeting strict international safety and quality standards.

The upcoming Petrochemical Technology Development Roadmap, expected to be finalized in April 2026, will outline strategies for completing value chains, deepening domestic production, advancing new technologies, and enhancing global competitiveness. The roadmap emphasizes innovation systems, technology planning, and smart manufacturing solutions.

“The objective is clear: to transform sanctions from a warning signal into a source of domestic strength, fostering the growth of knowledge-based companies and Iranian industry,” Nasiri said.

 


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