MARKET ANALYSIS | IRAN
Mehdi Jamali, Saipa Group President and Vice Chairman of the Board (left), with Carlos Tavares, Chairman of the PSA Group Managing Board, at a 2016 signing ceremony for Saipa to produce Citroën vehicles in Iran
Plastics manufacturing Foreign investment in Iran is expected to offer significant opportunity for the further development of the petrochemicals and plastics industries. Iran is already a gas and oil superpower but, with many projects put on hold when UN sanctions were imposed in 2006, it still has enormous potential to develop as a global supplier of feedstocks and polymers. The petrochemical and plastics industries are
expected to grow substantially, with partnerships already being formed and expansion plans being set to increase production post sanctions. Many global firms are eager to enter Iranian markets and have already made initial trips to prepare the ground for partnership or investment in Iran. Under the Iranian government’s Vision 2025 plan for the economic growth and development of the country, it is seeking to become the largest
producer of petrochemicals in the region, as well as a major supplier of downstream products such as paints, polymers and composites. Iran already has the second highest overall polymer demand in the region, at over 3m tonnes/ year, as well as the second largest market for engineering thermoplastics. Polypropylene accounts for the largest share of the polymers processed in the country, driven by its large textile industry and substantial injection moulding operations. One of the drivers for the plastics industry is the automotive sector, which currently accounts for 10% of Iranian GDP and has a 2% share of polymer consumption in the country. As Iran manufactured approximately 1m vehicles in 2015, and is anticipated to further increase production, there is plenty of reason to believe that plastics firms supporting the automotive market in the country will grow. There is also a positive forecast for plastic
packaging. Rigid packaging accounts for just under one-fifth of Iran’s polymer demand. Consumer packaging has increased capacity in response to a growing trend towards organised retailing and supermarket shopping. Industrial packaging is expected to grow in response to improving logistics to serve the retailing industry, as well as growth in manufacturing.
Challenges remain
Although most economic and financial sanctions have now been lifted, some will remain in place as they are not affected by the deal in 2016. In particular, sanctions related to human rights, arms proliferation and Iran’s support for terrorism continue. Investors will need to consider, if they are
Database of Plastics Processors in Iran
https://www.amiplastics.com/pubs/prod.aspx?catalog=Publishing&product=p371 14 INJECTION WORLD | September 2017
Despite the potential of the Iranian plastics industry, discovering opportunities for foreign investors is a huge challenge. Finding in-depth and comprehensive information about the key players in the industry is both time consuming and difficult. AMI has recently released its first Database of Plastics Processors in Iran, providing information on over 300 processing sites. Comprised after hours of telephone interviews, this unique database will provide address, contact and production information on moulders, extruders and compounders in Iran. With the lifting of certain economic sanctions, this is the perfect time to explore opportunities within the Iranian plastics industry. Click here to find out more about AMI’s 2017 Database of Plastics Processors in Iran
www.injectionworld.com
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