The zone has attracted investment of more than 53.089 trillion rials
and $1.185 billion through the newly issued permits, while projects brought
into operation during the period have added about 249,000 metric tons a year of
production capacity, according to the Petrochemical Special Economic Zone
Organization.
The development strategy under President Masoud Pezeshkian’s
administration has moved beyond simply increasing nominal production capacity,
with greater emphasis on completing industrial chains, expanding downstream
production and improving the productivity of existing assets.
Idle projects return to production
The organization said 22 inactive projects and companies were brought
back into the development cycle through measures including restarting existing
projects, restructuring projects, changing land use and facilitating
partnerships with third parties.
The reactivation of those assets returned about 17.6 hectares of
previously inactive land to productive use and attracted approximately 366.4
trillion rials and $18 million in investment.
The projects are expected to add about 652,000 tons a year to the
zone’s production capacity and create 651 direct and 1,581 indirect jobs.
Fourteen projects already under construction also entered operation
during the two-year period. They added roughly 250,000 tons a year of capacity
and attracted more than 50 trillion rials and $96 million in investment,
creating 607 direct and 1,371 indirect jobs.
Investment and existing capacity
Total investment made in projects under execution during the two-year
period reached more than 791.439 billion rials and $2.742 billion, according to
the organization. The funds have been directed toward priority projects,
infrastructure and integrated industrial chains.
The zone currently has 21 petrochemical complexes with combined annual
production capacity of about 27 million tons, total investment of nearly $50
billion and employment of about 37,000 people.
The organization says several projects remain unfinished or stalled.
Their completion has been constrained by financing, permits, feedstock
availability, infrastructure requirements, shareholder issues and, in some
cases, external restrictions and sanctions.
$30 billion second phase
The second phase of the Petrochemical Special Economic Zone is
approaching final approval and is designed around a different infrastructure
model, with greater emphasis on new energy technologies and resource
efficiency.
Plans include treating unconventional water for industrial use,
developing power-generation capacity, allocating part of the electricity
produced to neighboring cities and installing advanced solar panels under the
supervision of the country’s science and technology parks.
Around 30 proposed projects have been prepared in coordination with
the National Petrochemical Company, with estimated investment requirements of
about $30 billion.
The expansion is intended to provide additional room for industrial
development while addressing some of the infrastructure constraints that affect
the existing zone.
Infrastructure becomes a strategic priority
Infrastructure development has become increasingly central to the
zone’s operating strategy, particularly after disruptions exposed
vulnerabilities in electricity, steam, gas, water and telecommunications
systems.
The organization has expanded gas, electricity and water networks,
upgraded aging infrastructure and strengthened communications systems. The
measures are intended not only to support new projects but also to ensure
continuity of operations during emergencies.
The experience of recent conflicts accelerated that shift. The
organization said the approach to infrastructure management has moved from
conventional maintenance toward a resilience- and crisis-oriented model.
War tests resilience
During the second and third wars referred to by the organization, most
companies in the zone continued operating at maximum possible capacity, except
for units that were required to shut down to reduce operational risks.
Following attacks on petrochemical facilities on April 4, 2026,
electricity and steam generation capacity was severely disrupted. Emergency
teams worked to restore electricity and steam supplies to strategic units,
while reconstruction activities began shortly afterward.
The experience highlighted the importance of redundancy in critical
infrastructure and faster recovery mechanisms, particularly for utilities that
can affect several production units simultaneously.
Focus shifts from capacity to value
The zone’s development strategy reflects a broader attempt to increase
the economic value generated by existing petrochemical infrastructure rather
than relying solely on additional headline production capacity.
Completing downstream chains, reviving dormant assets and directing
investment toward projects capable of generating higher value are now central
priorities.
The approach also seeks to ensure that new investment is matched by
adequate infrastructure, reliable utilities and greater operational resilience.
Employment and regional impact
Projects implemented under the 14th administration have generated 4,829
direct and 14,942 indirect jobs, according to the organization.
The employment impact extends beyond petrochemical plants to
construction, engineering, logistics, services and other supporting industries
in the Mahshahr region.
The next phase
The zone’s immediate challenge is to turn its pipeline of investment
and stalled projects into operating assets while addressing financing,
feedstock and infrastructure constraints.
With 22 dormant projects already reactivated, 14 projects brought into
operation and a second phase carrying a potential $30 billion investment
requirement, the development agenda is increasingly centered on making better
use of existing industrial capacity while building a more resilient platform
for future growth.
For one of Iran’s main petrochemical hubs, the emphasis is shifting
from building more capacity to extracting more value from the capacity already
in place — while ensuring that power, water, communications and other critical
infrastructure can withstand the disruptions that have tested the industry in
recent years.