Advanced Machinery Key to Transforming Iran Downstream Petchem Industry

Advanced Machinery Key to Transforming Iran Downstream Petchem Industry
(Wednesday, February 5, 2025) 09:53

TEHRAN (NIPNA) – The development of advanced machinery is vital for boosting efficiency and value creation in Iran’s petrochemical industry, particularly its downstream sector, according to industry experts.

Amir Hekmatmehr, Secretary of the Polymer Equipment Manufacturers and Machinery Producers Guild Association, emphasized the critical role of machinery in enhancing productivity and ensuring sustainable growth in the petrochemical value chain. "Producing energy-efficient, high-performance machinery not only supports the downstream industry but also drives value creation across the sector," he said.

Hekmatmehr highlighted the challenges posed by Iran’s energy imbalances, which have significantly affected small and medium-sized enterprises (SMEs) in the downstream sector. "The downstream segment, being the most vulnerable, bears the brunt of energy shortages and mismanagement. This disrupts production and undermines investments, halting the progress needed to end crude exports and focus on value-added production," he explained.

He warned that energy supply issues could lead to capital flight from the sector, further weakening the entire petrochemical value chain. "Without reliable energy supplies and a conducive environment for investment, we risk stalling development and losing the competitive edge of our downstream industry," Hekmatmehr added.

Hekmatmehr stressed that advanced machinery forms the backbone of the petrochemical industry, enabling efficiency from raw material extraction to the production of final goods. "We need cutting-edge machinery with high energy efficiency and superior performance to drive growth. However, energy shortages and mismanagement have also impacted the machinery manufacturing sector, which is critical for the entire value chain," he said.

He called for a coordinated approach to ensure balanced growth across all segments of the petrochemical industry. "For the value chain to thrive, every link—from raw material processing to downstream production—must grow in harmony," he noted.

On the current state of investments, Hekmatmehr said, "While the polymer and plastics industries have seen substantial growth and offer attractive investment opportunities, inconsistent policymaking and energy mismanagement have undermined the potential of downstream industries. SMEs, in particular, suffer the most due to limited capital and unfavorable conditions."

He emphasized the importance of aligning government policies with industry needs to channel investments into production-oriented sectors. "We need a strategic approach to support downstream industries, as they directly impact key sectors like automotive and construction, which are heavily reliant on polymer products," he explained.

Hekmatmehr outlined key demands from the private sector for the Iranian government, including better management, reduced political interference, and greater inclusion of specialized experts in decision-making. "The private sector seeks to act as the government’s partner, not just a subordinate. Mismanagement has led to energy shortages despite the country’s vast resources, forcing businesses to look elsewhere for investments," he said.

He also called for stronger collaboration between industry associations and government agencies. "Associations and guilds serve as valuable advisory bodies due to their experience and cost-efficiency. Establishing a strategic council involving these organizations can help the National Petrochemical Company (NPC) make informed decisions with minimal expenses," he suggested.

Hekmatmehr proposed forming a quarterly council comprising polymer industry associations to act as a think tank for the NPC. "Such a council could provide valuable insights, enabling the NPC to achieve its goals with minimal costs while maximizing efficiency," he concluded.

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