Downstream Petchem Development Needs Government Support: Leader

Downstream Petchem Development Needs Government Support: Leader
(Saturday, January 25, 2025) 15:35

TEHRAN (NIPNA) – Mohammadreza Shakeri, Chairman of the Board of the Machine Manufacturers and Polymer Equipment Producers Association, has called for greater government support to ensure the growth and development of Iran’s downstream petrochemical industries.

Speaking to NIPNA, Shakeri highlighted the significant challenges faced by the sector, citing energy shortages as a major obstacle.

"In 2024, production units experienced electricity outages for two days a week on average, and in some months, the outages extended to three days a week. This situation has led to a reduction in production capacity by an average of 33 to 50 percent," he said.

Shakeri emphasized that stable feedstock supply, coupled with uninterrupted gas and electricity, could enable the sector to achieve significant production growth using existing capacities.

Energy imbalances and insufficient investment in machinery were identified by Shakeri as critical challenges. He warned that these issues have led to reduced output, increased production costs, and diminished competitiveness among manufacturers in the downstream petrochemical sector.

The chairman also underlined the strategic importance of the machinery manufacturing sector in enhancing the petrochemical value chain, describing current investment levels in the sector as inadequate.

Shakeri urged the government to reform foreign exchange policies and provide practical support for domestic production. He further called for the establishment of strategic councils between petrochemical companies and industry associations to address the sector's pressing issues.

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