Iran Plans to Boost Polymer Exports to $1b, Targets $300m African Market

TEHRAN (Iran News) According to Omid Koushki, a board member of Iran’s Polymer Association, capturing just 10% of Africa’s polymer market could generate significant foreign exchange revenue. “If we succeed in this goal, we can bring in approximately $300 million,” he stated.

Speaking to ILNA, Koushki highlighted energy imbalances as a key obstacle for the industry. He called for support from the power sector to ensure reliable energy supply for small industrial units.

“We realized years ago that domestic demand alone cannot sustain our polymer industry,” he said. “With increasing competition, our only viable option is to expand into export markets.”

Koushki, who also chairs the Iranian Association of Masterbatch and Polymer Compound Manufacturers, emphasized the need to look beyond neighboring markets. “Africa is an untapped market that we are actively working to enter,” he noted.

Currently, Africa imports over $3 billion worth of polymer compounds, mainly from China, India, and Turkey. Koushki believes Iran has a competitive edge in pricing and could secure a substantial share of the market.

Iran’s Central Bank’s strict financial policies and rising costs have increased the industry’s need for working capital. Additionally, challenges in importing machinery due to regulatory hurdles have complicated production expansion.

The industry is also making strides in environmental sustainability. “We have developed technology to recycle plastic materials efficiently, allowing us to produce high-quality PET bottles from recycled materials,” Koushki explained.

Power outages have severely impacted exports. “For three consecutive years, we secured clients but lost business opportunities due to electricity shortages, making it impossible to sign long-term contracts,” Koushki said.

Despite these setbacks, Iran’s polymer industry has managed to maintain $700 million in exports. “If we can successfully penetrate the African market, we can push this figure to $1 billion,” he added.

Currently, Iran exports polymer compounds to Central Asia, Afghanistan, Iraq, and Turkey. About 50% of these exports go to Uzbekistan, Tajikistan, Kazakhstan, and Azerbaijan, while the rest is distributed among the other target markets.

Mehdi Khorasani, head of the Trade Commission of the Masterbatch and Polymer Compound Association, pointed out that the industry faces high production costs and financial constraints. “With a production capacity of 5 million tons and domestic demand at just 1 million tons, exports remain crucial,” he stated.

However, production levels have dropped by 30-40% due to ongoing challenges. Khorasani warned that if these issues persist, the industry will struggle to maintain growth.

Despite increasing exports over the past four years, energy shortages continue to pose risks. “If the energy imbalance remains unresolved, the industry’s export growth could reverse,” Khorasani cautioned.

To mitigate risks, the focus is shifting toward high-value products rather than high-volume exports. “We need to enhance the industry’s added value so that even if export volumes decline, we can compensate with premium products,” he said.” African Market”

Khorasani also emphasized the impact of Iran’s lack of membership in the Financial Action Task Force (FATF) on trade. “Many countries require direct bank transfers, but we don’t have this option. As a result, we must use foreign accounts, increasing costs and reducing competitiveness.”

He urged authorities to address this issue, stating that FATF membership could significantly boost Iran’s polymer exports.

Despite regulatory, financial, and energy-related challenges, Iran’s polymer industry remains determined to expand its global footprint. With a strong push into African markets and a shift toward high-value exports, industry leaders are optimistic about achieving their $1 billion export target.