Iran to rival Saudi Arabia for petchem market

TEHRAN, May 16 (MNA) – Deputy oil minister has urged Iranian petrochemical plants to begin a new round of competition with SABIC (Saudi Arabia Basic Industries Corporation) by reaching a consensus on petchem distribution.

Managing Director of the National Petrochemical Company (NPC) Marzieh Shah-Daei criticized the current trend in exports of petrochemical and polymer products saying “previously, Iran played an influential role in sales of petrochemical products across the region.”

“Now a rival, SABIC used to have commercial cooperation with Iran over some cases,” she continued.

The official said SABIC of Saudi Arabia is currently the fifth largest petrochemical company in the world with an export volume of 50 million tons; “thus, if manufacturing firms develop a sphere of consensus and solidarity, they could easily exploit the existing capacities in the petrochemical industry to promote the country’s global ranking.”

Deputy oil minister estimated that Iran’s production would reach 160 million tons per year in ten years’ time urging leaders of holdings and petrochemical companies to pursue sales of petchem products to target markets with more seriousness and coordination.

“The National Petrochemical Company (NPC) is rigorously seeking to create coherence in the field of petrochemical industry,” Shah-Daei noted.

She emphasized that adverse competition in consumer countries works only to the benefit of those states as China is importing Iranian petchem goods at low prices to balance its market while manufacturing of these products are extremely costly inside the country.

NPC managing director underlined that lack of integration in formulation of a strategy for taking part in export markets has led to loss of unrivaled opportunities in target markets stressing “products, which are produced by massive investment and great effort, would not bring in the maximum benefit for stakeholders at production units mainly due to lack of integrity in target markets.”

Marzieh Shah-Daei said the most major defect pertains to lack of control over the market and the need to take advantage of domestic and foreign business firms in target markets which is currently way too far from favorable control over market shares; “we need to adopt a coordinated strategy for integrated sales channels to exert desired effects at the international level.”

 

HA/3659784

 

 

News Code 116611

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