According to PGPIC, Iran’s largest company hosted a delegation consisting of the president and members of the Federal Association for the Support of German Economy and Foreign Trade, Iran’s ambassador to Germany Mahmoud Farazandeh, head of the German desk in Iran’s Ministry of Foreign Affairs, and Ehsan Ghazizadeh Hashemi, a member of the Islamic Council.

In this meeting, which was held with the aim of cooperation in the production of petrochemical products, facilities and equipment, and the revival and expansion of relations between the two countries in the petrochemical industry, Mahmoud Farazandeh, Iran’s ambassador to Germany, referring to the 20-year history of this association with 1,300 companies as members, said: “The Federal Association for the Support of German Economy and Foreign Trade, which is represented in more than 70 countries, is cooperating with the world’s largest companies, and this is the first trip of this association to Iran.”

Referring to the background of this union in the field of energy, he added: “This union seeks to find new markets for German products and meet the needs of this country from new destinations, and the petrochemical field is one of the attractive fields for this prestigious and long-standing union.”

Michael Schoon, the head of the Federal Association for the Support of German Economy and Business, expressed his satisfaction with the trip to Iran, stating: “Preparations for this trip started two years ago; we have come to work with Iranian companies with mutual trust, and the correct the false images that are on both sides. We seek constructive and mutually respectful relationships.”

Abdul Ali Ali Askari, CEO of PGPIC, also said in this meeting: “We hope that this trip will create a better impression of Iran as a fertile, young and talented country.”

He added: “In a situation where countries like the United States are struggling with several thousand billion dollars in debt, Iran is a country that not only has no debt at the international level, but also has significant demands due to unscrupulous sanctions, and this is a suitable capacity for economic development.”

The CEO of the Persian Gulf Petrochemical Industries Company (PGPIC) emphasized: “Iran, with its remarkable human capacities, is a country that is very prone to grow every economic and technical seed planted in it, given that during the unscrupulous era of the American embargo, its growth continued and we are progressing.”

Ali Askari continued: “Sanctions were a threat to our country, but with the efforts of these young people and Iranian scientists, it became an opportunity, and today we have thousands of knowledge-based companies that move at the edge of technology; if until a few years ago we were a dependent country in the petrochemical industry, today we make about 80% of petrochemical industry equipment and catalysts domestically.”

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Speaking in the holding’s annual general assembly, Jafar Rabiei said: “The Persian Gulf Holding Group’s operational income increased by 71 percent, consolidated operating profit increased by 164 percent, net profit rose 148 percent and earnings per share increased by 146 percent [during the mentioned period].”

According to the official, PGPIC subsidiaries currently account for 12.3 percent of Iran’s capital market, Shana reported.

PGPIC is currently ranked 37th among the world’s top 100 petrochemical companies in terms of value and sales, and it is the region’s second-biggest holding after Saudi Arabia’s Saudi Basic Industries Corporation, known as SABIC, Rabiei said.

He put the total production capacity of the holding at 27.6 million tons and expressed hope that with the completion of the company’s new projects the figure will reach more than 50 million tons by the Iranian calendar year 1406 (begins in March 2027).

The official further pointed out that PGPIC produced 19.6 million tons of products in the previous Iranian calendar year, which was the highest production record in the history of the company.

“Of this amount, 15.2 million tons were cumulative sales, of which about 920 trillion rials (about $21.9 billion) were domestic sales and 590 trillion rials (about $14 billion) were exports,” he specified.

As Iran’s largest petrochemical group which extends to 39 subsidiaries and foreign-based sales agents, PGPIC has been considered one of the most profitable entities in the country’s economic body.

In June 2019, the United States hit PGPIC with economic sanctions due to what they claimed to be tied with the country’s Revolutionary Guards (IRGC), however, the move, in fact, was aimed to choke off financing to the country’s largest and most profitable petrochemical group.

The PGPIC group holds 40 percent of Iran’s total petrochemical production capacity and is responsible for nearly 50 percent of the country’s petrochemical exports.

After the imposition of the U.S. sanctions, many thought the impact of the sanctions to be very significant on the performance of the holding and consequently on the country’s economy, however contrary to expectations, PGPIC is continuing to thrive, and according to Rabiei its production and exports haven’t been affected greatly by the U.S. sanctions.

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The ground breaking ceremony of the mentioned project was attended by senior petrochemical officials including the PGPIC Managing Director Jafar Rabiei, and the project’s managing director Mehdi Gharouni.

Speaking at the ceremony, Rabiei noted that this complex is the biggest petrochemical complex in Mahshahr Petrochemical Special Economic Zone and when completed it will provide direct job opportunities for 5,000 people.

The said petrochemical complex, is comprised of one olefin unit with a production capacity of 1.26 tons of ethylene and 420,000 tons of propylene, as well as five polymer units including two units of high-density polyethylene (HDP), one unit of linear low-density polyethylene (LLDPE), one unit of polypropylene, one monoethylene glycol (MEG) unit and a butadiene unit, according to the project’s managing director.

The project will be implemented in two phases, the first phase of which includes the construction of the olefin unit with five relevant storage tanks and cooling towers, and the rest of the units will be built and commissioned in the second phase.

“Persian Gulf Holding, while making serious efforts to complete previous projects, feels a responsibility to begin new large-scale projects for developing the petrochemical industry,” Rabiei said in the inauguration ceremony.

The official noted that PGPIC is collaborating with Bandar Imam and Arvand petrochemical companies as shareholders in this mega-project.

“The important characteristic of Mahshahr Petrochemical Project is that all its feed is produced by PGPIC and there is no concern about the feed in the future, so in this regard, Mahshahr Petrochemical is a significant project,” Rabiei said.

He further noted that another mega-complex is also going to be constructed in Assaluyeh, saying: “the construction of this project will hopefully begin in the near future and when completed it will be the biggest petrochemical complex in the region.”

Mahshahr Petrochemical Special Economic Zone in Iran’s southwestern Khuzestan Province is one of the major petrochemical zones of the country.

In July 2019, the managing director of Iran’s National Petrochemical Company (NPC) unveiled a plan for the construction of a new petrochemical hub in Mahshahr Petrochemical Special Economic Zone in order to add up to six million tons of new capacity to the zone.

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