Domestic Machinery Revival Key to Petchem Growth

Domestic Machinery Revival Key to Petchem Growth
(Saturday, November 1, 2025) 11:34

TEHRAN, Nov. 1 (NIPNA) — Iran can strengthen and expand its petrochemical value chain only by revitalizing its domestic machinery industry, the head of the Association of Employers of Machinery Manufacturers and Polymer Equipment Producers said on Wednesday.


Mohammadreza Shakeri, chairman of the association’s board, described machinery manufacturing as the “industry of industries,” noting that it underpins productivity, innovation, and technological progress across multiple sectors. “Machinery manufacturing is the most crucial link in the petrochemical and polymer value chain,” he told NIPNA. “Yet, domestic producers’ share of the market has dropped from about 70% to nearly 30% due to import-related rent-seeking.”

Shakeri said a strong machinery industry is essential for achieving true industrial independence. “Countries capable of building advanced machinery can also develop aerospace, missile, and nuclear technologies,” he said, warning that current policies still favor imports over domestic production.

He added that nations such as Germany, Turkey, and India have treated machinery manufacturing as a strategic sector, investing heavily over the past two decades to secure long-term industrial growth. “No one becomes a machine builder in five or ten years; it can take decades of experience,” he said.

According to Shakeri, Iran has more than six decades of experience in polymer machinery production and remains competitive in several categories. Iranian producers hold around 70% of the domestic market for mills and granulators, 60% for blow molding machines, and about 30–35% for injection machines. However, unregulated imports and subsidized foreign exchange for importers have sharply eroded local manufacturers’ market share.

“Each industrial machine consists of roughly 3,000 components, making machinery manufacturing the country’s most employment-intensive industry,” Shakeri said, adding that fluctuations in exchange rates and raw material costs have further strained producers. Roughly 25–30% of each machine’s value depends on imported parts, he noted.

He said informal exports of Iranian polymer machinery to neighboring countries such as Iraq, Afghanistan, Syria, Tajikistan, and Turkmenistan are already taking place, but “over 90% of these exports are unofficial.” With proper regulatory and financial support, Shakeri argued, the industry could become a significant source of foreign exchange, as regional demand for polymer machinery remains high.

Shakeri concluded that machinery manufacturing is a “strategic foundation” for Iran’s petrochemical and polymer sectors. “Every gain in speed, precision, and efficiency originates from machine innovation,” he said. “To regain its rightful place, the government must adopt a long-term industrial strategy that recognizes machinery manufacturing as the backbone of a resilient, value-added petrochemical industry.”

 


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