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SURVEY ON IRANIAN MARKET OF PRODUCTS

September, 2018

SEPTEMBER 2018

Table of Content Share of Italy as Iran’s Import of Plastic Prelude ...... 1 Products ...... 28 Iran’s Economy Overview ...... 2 Gross Domestic Products...... 3 Annexes Inflation ...... 5 Employment ...... 7 KEY RELATED PUBLIC ORGANIZATIONS, SOCIETIES AND ASSOCIATIONS Introduction to Iran’s Plastic Sector .. 9 RELATED PREVIOUS AND UPCOMING TRADE FAIRS

Production ...... 11 AND EXHIBITIONS Terephthalate (PET) ...... 11 PLASTIC-INDUSTRY RELATED MAGAZINES Polyethylene (PE) ...... 12 (PP) ...... 14 (PS) ...... 16 (PC) ...... 17 of Acrylic (PMMA) ...... 18 (PVC) ...... 19 Butadiene Styrene (ABS) ...... 20 Trade ...... 21 Import ...... 21 Export ...... 24 Import Regulation...... 27 The Prospect of Iran’s Plastic Sector...... 28

Prelude Materially all nuclear-related sanctions were lifted, these Iran is the second largest economy in developments along with a reform- the Middle East and North Africa minded government provide a (MENA) region after Saudi Arabia, favorable environment for economic with an estimated Gross Domestic reforms. These also arise in the Product (GDP) of US$ 603 billion in context of the new five-year 2016. It also has the second largest development plan started May 15, population of the region after Egypt, 2017, which targets a rate of annual with an estimated 79.9 million people real GDP growth of 8 %. in 2016. Iran’s economy is characterized by the hydrocarbon, agriculture and services sectors, and Figure 1: Iran Key Figures in 2016 a noticeable state presence in manufacturing and financial services. Iran ranks second in the world in natural gas reserves and fourth in proven crude oil reserves. Economic activity and government revenues still depend to a large extent on oil revenues and therefore remain volatile. The economy of Iran is a mixed and transition economy with a large public sector. with the implementation of the Joint Comprehensive Plan of Action (JCPOA) between Iran and the P5+1 (United States, United Kingdom, France, Russia, China, and Germany), that was signed in July 2015, meant Iran reached Implementation Day on Source: Central Bank of Islamic Republic of Iran (based on 2016-17 data) January 16, 2016, at which point

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the development of a resilient as petroleum products, water, economy, progress in science and electricity, and bread, which has Iran’s Economy technology, and the promotion of resulted in a moderate improvement cultural excellence. in the efficiency of expenditures and Overview economic activities. The overall indirect subsidies, which were estimated to be equivalent to 27 Iran is an emerging economy that percent of GDP in 2007/2008 owes this status not just to its oil and (approximately US$ 527 billion), have gas wealth but also to factors such as been replaced by a direct cash a diversified industrial structure and transfer program to Iranian its population’s high educational households. The second phase of the level. subsidy reform plan began in spring 2014 which involves a more gradual Iran's economy is marked by statist fuel price adjustment than previously policies, inefficiencies, and reliance envisaged and the greater targeting on oil and gas exports, but Iran also of cash transfers to low-income possesses significant agricultural, households. Around 3 million high- industrial, and service sectors. The income households have already Iranian government directly owns and been removed from the cash transfer operates hundreds of state-owned recipient list. As a result, the enterprises and indirectly controls expenditures of the Targeted many companies affiliated with the Subsidies Organization (TSO) are country's security forces. On the economic front, the development plan envisages an estimated to have declined to 3.4 annual economic growth rate of 8 percent of GDP in 2016 from 4.2 Iranian authorities have adopted a percent and reforms of state-owned percent in 2014. comprehensive strategy enterprises, the financial and banking encompassing market-based reforms sector, and the allocation and as reflected in the government’s 20- management of oil revenues among year vision document and the sixth the main priorities of the government five-year development plan for the during the five-year period. 2016-2021 periods.

The Iranian government has The sixth five-year development plan implemented a major reform of its is comprised of three pillars, namely, subsidy program on key staples such

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Gross Domestic Products In 2016 the service sector with a share The largest contribution to growth of 50%, has the largest share in Iran's was from the oil and gas sector as the Based on Central Bank of Islamic gross domestic product after that oil sector’s production increased by a Republic of Iran statistic, in 2016 and gas with a share of 23% and staggering 62%, mainly as a result of Iran’s real GDP (2011 constant prices) industry with a share of 12% Are the sanctions relief. reached US$ 603 billion, which major components. reflects 12.5% economic growth. Recovery in non-oil GDP, however, In 2016, the economy registered a was limited at 3.3%, although this International monetary fund statistic strong oil-based rebound, with an represents the highest growth rate in th also indicates that Iran ranked 18 in annual headline growth rate of 12.5%, the last five years. terms of GDP PPP and by 2022, Iran compared to a contraction of 1.6% in is expected to rank 15th in the world. 2015.

Chart 1: Iran’s GDP by economic sectors (2004-2017)

Source: Central Bank of Iran 3 | P a g e

Table 1: Iran’s GDP by economic sectors

Real GDP (2011 Constant Prices) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Agriculture 27 30 33 33 27 29 30 31 33 35 37 38 40 41 Oil & Gas 125 125 128 129 128 122 128 126 80 76 79 85 137 139 Mine 2 2 2 3 3 3 4 4 4 5 5 5 5 5 Industry 44 49 53 54 56 60 67 70 68 64 69 66 70 74 Construction 30 31 30 38 43 41 41 44 42 38 38 31 27 28 Utilities (Water, Power, Gas) 21 22 25 27 28 30 32 32 33 34 36 37 40 43 Services 205 220 235 257 253 256 270 281 285 291 295 289 299 312

Total 455 479 506 541 538 540 571 588 545 543 560 551 618 642 Real GDP 446 469 494 527 527 527 557 574 530 528 545 536 603 626

Inflation 15.2% 10.4% 11.9% 18.4% 25.4% 10.8% 12.4% 21.5% 30.5% 34.7% 15.6% 11.9% 9.0% 9.6% Source: Central Bank of Iran

Chart 2: Share of economic sectors in Iran’s GDP

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Inflation In 2016 Average producer price index The service group, according to its (PPI) increased 5% which indicates weight, has had the largest share in Over the past 40 years, inflation has slowdown compared to previous the index increase, after that there are always been one of the economic years. The highest weight in the manufacturing group and agriculture, challenges facing Iran, which is calculation of this index was related forestry and fishing group. mainly due to the mismanagement of to the manufacturing group (51.99%) natural resource revenues. . services with the weight of 30.89% One of The reasons for the slowdown and agriculture, forestry and fishing in the growth of the PPI index is the During the mentioned period, Iran has with the weight of 17.12% are another decline in Iran’s economy. (Chart 4) always experienced inflation of over component of the index. 10%.

Chart 3: Iran’s Inflation Trend (2004-2017)

Source: Central Bank of Iran

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Chart 4: Iran’s PPI Trend (2013-2016)

Source: Central Bank of Iran

In 2016 the average consumer price Also, the weight of the goods group in Iran’s inflation rate went below 10% index (CPI) increased by 9% market basket is 52.8% and weight of for the rolling year ending June 20. compared with the previous year. the services group is 47.32%. (Chart This was the first time the country 6). was experiencing single-digit inflation Housing & utilities and Food & in about a quarter century. Beverage with the weight of 32.82% The Rouhani administration in the and 27.38% have the highest weight past year managed to considerably among CPI’s constituent parameters. reduce the rate of inflation, which had (Chart 5). exceeded 40% before he took office Iran’s inflation rate went below 10% for the rolling year ending June 20. This was the first time the country was experiencing single-digit inflation in about a quarter century.

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Chart 5: Weight of the constituent parameters of CPI Chart 6: Weight of the Special group in CPI

Employment The total population in Iran was Another Challenge in Iran's Labor estimated at 80.9 million people in Market is over education. In 2015- Alongside many other economic 2017, according to the latest census 2016, more 4.3 million students were problems that inflict great economic figures. Looking back, in the year of studying in Iran’s universities. This challenges on Iran, the rising 1960, Iran had a population of 22.0 means that more than 5% of the unemployment problem in the million people. country’s total population or 7.4% of country is adding fuel to the fire. the country’s adult population (aged Based on Iranian Statistical Center 19 and above) were enrolled in Iran’s Due to the population boom that Active population in Iran estimated at higher education system. occurred in the 1980s, Iran now has 25.9 million, of this 3.2 million are one of the youngest populations in jobless which indicates an This is where Iran’s higher education the world, which must be provided unemployment rate of 12.6%. system is in crises: producing far with jobs. more college graduates (and often of low quality) than the domestic economy can absorb.

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Chart 7: Unemployment Rate in Iran

Source: Statistical Center of Iran

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In recent years Iran has tried to Iran is one of the biggest consumer of Introduction to Iran’s Plastic develop Plastic derivatives industry plastic in the world, the total demand Sector to create more added value and of plastic industry in Iran estimated to strengthen its economy in the face be 3 million ton per year. aren’t just one material. sanctions, but due technological Plastics are a family of hundreds of weakness and lack of access to different materials with a wide variety modern machinery couldn’t riches its of properties. They are designed to goals. meet the needs of every single application in the most efficient manner.

Plastics materials are organic materials that can be either fossil fuel based or bio-based. Both types of plastic materials are recyclable and it is possible to produce bio- degradable plastics with both types of feedstocks. Currently, most plastics materials are derived from fossil feedstocks such as natural gas, oil or coal.

Plastic industry is making a significant contribution to the economic development and growth of various key sectors in the country such as Automotive, Construction,

Electronics, Healthcare, Textiles, and FMCG etc.

Iran due to its vast hydrocarbon resources is one of the main producer of polymer and plastic material in the Middle East and even in the world.

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Market Dimension and Main Chart 8: Plastic Demand Based on Application Segments

Due to the dominance of a small number of large-scale companies, Iran’s plastic market is an Oligopoly market.

Oligopolies can result from various forms of collusion which reduce competition and lead to higher prices for consumers.

Of course, the global market, which Iran is one of its main actors, is a competitive market and in Chart 9: Plastic Industry Production Process accordance with the rules of free trade.

Plastic markets main segments based on the application are as chart

8 also the sector segmentation based on the production process is shown in chart 9.

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Production

Polyethylene Terephthalate (PET) It should be noted that 70% of Given that the date of obtaining the Tondgoyan products exported to license and physical progress of each Polyethylene terephthalate foreign countries. unit it seems mentioned projects will (sometimes written poly(ethylene not be exploited in the near future. terephthalate)), commonly abbreviated PET, PETE, or the There are 3 planned plants with total obsolete PETP or PET-P, is the most capacity of 270,000 tons per year. common polymer resin of the family and is used in Table 1: PET Production Capacity fibers for clothing, containers for liquids and foods, for Production Capacity Producer Note manufacturing, and in combination (Ton) with glass fiber for engineering resins. 309 thousands ton bottle grade, 367 thousands ton Tondgoyan 746,000 textile grade and 132 thousands ton chips polyester chips In Iran, the PET mainly is used to produce drinking bottles. Shimi Nasr 11,664 Operation Started in 2005 Aram Plastic Damavand 5,990 Operation Started in 2006 Tondgoyan petrochemical is the Source: Ministry of Industry, Mine and Trade & Iran’s National Petrochemical Company (NPC) biggest producer of PET in Iran. Table 2: PET Planned Projects The production in the PET-1 unit in two grades of bottles and fibers is 412 Production Capacity thousand tons per year, of which 177 Producer Note thousand tons of bottles and 235 (Ton) Aria Plast Nava 2,500 40% progress, operation date N/S thousand tons of fiber grade. Also, in the PET-2 unit, the amount of Yazd Polymer Industry 2,500 44% progress, operation date N/S Navab Petrochemical Industry 220,000 3% progress, operation date N/S production in two grades of bottles and fibers is 396 thousand tons per Source: Ministry of Industry, Mine and Trade & Iran’s National Petrochemical Company (NPC) year, of which 132 thousand tons of bottle-grade and 132 thousand tons of polyester chips and 132 thousand tons of yarn fibers.

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Table 3: PE Production Capacity Polyethylene (PE) Polyethylene is the most popular Production Capacity Producer Note plastic in the world. This is the (Ton) polymer that makes grocery bags, Basparan Bandar Imam Co. 250,000 150 thousands ton HDPE, 100 thousands ton LDPE shampoo bottles, children's toys, and Aria Sasol 300,000 150 thousands ton HDPE, 150 thousands ton LDPE even bulletproof vests. For such a 140 thousands ton HDPE, 300 thousands ton LDPE, 260 Amir Kabir Petrochemical Co. 700,000 versatile material, it has a very simple thousands ton LLDPE structure, the simplest of all Marun Petrochemical Co. 300,000 300 thousands ton HDPE commercial . Laleh Petrochemical Co. 300,000 300 thousands ton LDPE Tabriz Petrochemical Co. 102,000 102 thousands ton HDPE Iran’s PE production capacity is Kermanshah Polymer 300,000 300 thousands ton HDPE approximately 4 million ton per year. Mehr Petrochemical Co. 300,000 300 thousands ton HDPE Kordestan Petrochemical Co. 300,000 300 thousands ton LDPE Due to a shortage of raw material Lorestan Petrochemical Co. 300,000 150 thousands ton HDPE, 150 thousands ton LDPE specifically ethylene, PE producers in Ilam Petrochemical Co. 300,000 300 thousands ton HDPE Iran couldn’t have been able to use Shazand Petrochemical Co. 160,000 85 thousands ton HDPE, 75 thousands ton LDPE their full capacity. Although in recent Mahabad Petrochemical Co. 300,000 150 thousands ton HDPE, 150 thousands ton LDPE years Iran has made a significant Total 3,912,000 1977 thousands ton HDPE, 1635 thousands ton LDPE investment in olefin production units. Source: Ministry of Industry, Mine and Trade & Iran’s National Petrochemical Company (NPC)

Amir Kabir petrochemical is the largest PE producer in Iran with a total capacity of 700 thousand ton per year from which 140 thousand ton belonged to HDPE, 300 thousand ton LDPE and 260 thousand tones LLDPE.

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Table 4: PE Planned Projects There are several projects in progress in Iran that which in case of Production Capacity Producer Note exploitation, the total production (Ton) capacity of PE in Iran will reach 6.8 Andimeshk Petrochemical Co. 300,000 300 thousands ton LDPE- 15% progress, Operation Date N/S million ton per year. 175 thousands ton HDPE, 125 thousands ton LDPE - 15% Jahrom Petrochemical Co. 300,000 progress, Operation Date N/S 81% of planned PE capacity Darab Petrochemical Co. 220,000 300 thousands ton HDPE- 10% progress, Operation Date N/S belonged to HDPE and the remaining 175 thousands ton HDPE, 125 thousands ton LDPE - 14% belonged to LDPE. Kazeron Petrochemical Co. 300,000 progress, Operation Date N/S Gachsaran Polymer Industry 500,000 500 thousands ton HDPE- 3% progress, Operation Date 2020 Boushehr Petrochemical Co. 300,000 300 thousands ton HDPE- 0% progress, Operation Date N/S Mahan Shimi Zagros 600,000 500 thousands ton HDPE- 6% progress, Operation Date N/S Kerman Petrochemical Co. 200,000 200 thousands ton HDPE- 10% progress, Operation Date N/S Urimeh Pterochemical 200,000 200 thousands ton HDPE- 53% progress, Operation Date N/S Total 2,920,000 2370 thousands ton HDPE, 550 thousands ton LDPE Source: Ministry of Industry, Mine and Trade & Iran’s National Petrochemical Company (NPC)

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Polypropylene (PP) Discovered by Italian scientists in the Table 5: PP Production Capacity mid-1950s, polypropylene today is surpassed in production volume only Production Capacity by polyethylene, discovered a couple Producer (Ton) decades earlier. Some of the PP characteristics is as follows: Jam Petrochemical Co. 300,000 Marun Petrochemical Co. 300,000

 It has a high melting point, so it’s Navid Zar Shimi 160,000 used for many microwave Polynar 65,000 containers; Rajal Petrochemical Co. 225,000  It doesn’t react with water, detergents, acids, or bases, so it Shazand Petrochemical Co. 75,000 won’t break down easily; Total 1,125,000 Source: Ministry of Industry, Mine and Trade & Iran’s National  It’s resistant to cracking and stress, even when flexed, so it’s Petrochemical Company (NPC) used in lots of hinges;

 It’s quite durable, so it withstands daily wear and tear. Table 6: PP Planned Projects Iran’s total capacity of PP is Production Capacity estimated to be 1.12 million ton per Producer Note year. (Ton) Mehr Petro Kimia 250,000 26% progress, Operation Date 2020 Jam and Marun petrochemical with a Sabz-Dasht Sarvestan 436,000 6% progress, Operation Date N/S production capacity of 300 thousand Khomein Petrochemical Co. 175,000 Operation Date 2019 ton are the biggest producer of PP in Iran. Total 861,000 Source: Ministry of Industry, Mine and Trade & Iran’s National Petrochemical Company (NPC)

There are several projects in progress in Iran which in case of exploitation, Iran’s total production capacity of PP will reach 2 million ton per year.

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Jam Petrochemical Co.

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Polystyrene (PS) Polystyrene is a versatile plastic used Table 7: PS Production Capacity to make a wide variety of consumer products. As a hard, solid plastic, it is Production Capacity often used in products that require Producer clarity, such as food packaging and (Ton) laboratory ware. When combined with Tabriz Petrochemical Co. 95,000 various colorants, additives or other Sahan Polystyrene Industry 60,000 plastics, polystyrene is used to make appliances, electronics, automobile Petro Pak Mashregh-Zamin 99,600 parts, toys, gardening pots and Takht-e-Jamshid Petrochemical 65,000 equipment and more. Entekhab Polystyrene Industry 250,000 Gonbad Baniar Polymer 120,000 Iran’s total production capacity of PS is around 888 thousands ton per year. Other Producers 198,521 Total 888,121 Source: Ministry of Industry, Mine and Trade & Iran’s National The biggest producer of PS in Iran is Petrochemical Company (NPC) Entekhab Polystyrene Industry with a production capacity of 250 thousand tones per year. Table 8: PS Planned Projects Iran has the plan to add 275 thousand ton to current production capacity in Production Capacity near future. Producer Note (Ton)

Taha Sazan Pishtaz 30,000 93% progress, Operation Date 2019 Gonbad Baniar Polymer 60,000 97% progress, Operation Date 2018 Payaresine 15,000 49% progress, Operation Date N/S Dalahou Petrochemical Co. 120,000 90% progress, Operation Date 2019 Petroramesheh Polystyrene Co. 50,000 8.5% progress, Operation Date N/S Total 275,000

Source: Ministry of Industry, Mine and Trade & Iran’s National Petrochemical Company (NPC)

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Polycarbonate (PC) Polycarbonate is a dimensionally stable, transparent thermoplastic Table 9: PC Production Capacity with a structure that allows for Production Capacity outstanding impact resistance. With Producer high-performance properties, (Ton) Polycarbonate is the leading plastic material for various applications that Khozestan Petrochemical Co. 25,000 demand high functioning Source: Ministry of Industry, Mine and Trade & Iran’s National temperatures and safety features. Petrochemical Company (NPC) Because of its durable make-up, polycarbonate is often the preferred thermoplastic over materials like PMMA and Acrylic. are unique in its working Table 10: PC Planned Projects temperatures and ability to experience minimal degradation Production Capacity between heating and cooling points. Producer Note (Ton) Polycarbonate features a high working temperature of 266 degrees Ramesheh Industrial Town 2,000 67% progress, Operation Date N/S Fahrenheit and cooling temperatures at -40 degrees Fahrenheit. Source: Ministry of Industry, Mine and Trade & Iran’s National Petrochemical Company (NPC)

Currently, there is only one producer of PC in Iran with a capacity of 25 thousand tones per year.

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The polymer of Acrylic (PMMA) Currently, there is no production capacity for PMMA in Iran, however, polymers belong to a group studies were undertaken and of polymers which could be referred investment has been made to to generally as plastics. They are produce a polymer of acrylic in Iran in noted for their transparency, near future. resistance to breakage, and elasticity. They are also commonly known as Table 11: PMMA Planned Projects acrylics or polyacrylates.

Production Capacity Producer Note Acrylate polymer is commonly used in (Ton) cosmetics such as as an Super Absorbent Polymer- 0% . Nil Chemical Industry 10,000 progress, Operation Date N/S

Super absorbent polymer (SAP) is one Super Absorbent Polymer- 30% Petro Fanavari Ofogh 45,000 of the most important polymers of progress, Operation Date 2020 acrylic. Superabsorbent polymers are Super Absorbent Polymer- 5% now commonly made from the Kian Petrochemical Co. 50,000 polymerization of progress, Operation Date 2022 blended with sodium hydroxide in the Source: Ministry of Industry, Mine and Trade & Iran’s National Petrochemical Company (NPC) presence of an initiator to form a sodium salt (sometimes referred to as ). This polymer is the most common type of SAP made in the world today.

Superabsorbent polymers are primarily used as an absorbent for water and aqueous solutions for diapers, adult incontinence products, feminine hygiene products, and similar applications. SAP also is using in the agriculture sector.

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Polyvinyl Chloride (PVC) Polyvinyl chloride is the world's third- It is expected with the start of most widely produced synthetic operation of the Hegmataneh plastic polymer, after polyethylene complex, the total production and polypropylene. capacity of PVC reach 623 thousand ton per year. PVC comes in two basic forms: rigid (sometimes abbreviated as RPVC) Table 12: PVC Production Capacity and flexible. The rigid form of PVC is used in construction for pipe and in Production Capacity profile applications such as doors Producer and windows. It is also used in (Ton) making bottles, non-food packaging, and cards (such as bank or Abadan Petrochemical Co. 115,000 membership cards). It can be made softer and more flexible by the Arvand Petrochemical Co. 340,000 addition of , the most widely used being . In this Ghadir Petrochemical Co. 120,000 form, it is also used in plumbing, Total 575,000 electrical cable insulation, imitation Source: Ministry of Industry, Mine and Trade & Iran’s National leather, flooring, signage, Petrochemical Company (NPC) phonograph records, inflatable Table 13: PVC Planned Projects products, and many applications where it replaces the rubber. With cotton or linen, it is used to make a Production Capacity Producer Note canvas. (Ton)

Despite its vast application, Iran’s Hegmataneh Petrochemical Industry 48,000 92% progress, Operation Date 2019 production capacity of PVC is very Source: Ministry of Industry, Mine and Trade & Iran’s National Petrochemical Company (NPC) limited.

There are three producers of PVC in Iran with a total capacity of 575 thousand ton per year.

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Acrylonitrile Butadiene Styrene (ABS) Table 14: ABS Production Capacity ABS is a low-cost that is easy to machine and fabricates. ABS is an ideal material for Production Capacity Producer structural applications when impact (Ton) resistance, strength, and stiffness are required. It is widely used for Tabriz Petrochemical Co. 35,000 machining pre-production prototypes Ghaed Basir Petrochemical Co. 36,000 since it has excellent dimensional stability and is easy to and glue. Total 71,000 Natural (beige) ABS and black ABS Source: Ministry of Industry, Mine and Trade & Iran’s National are FDA compliant for use in food Petrochemical Company (NPC) processing applications. The following physical property Table 15: PVC Planned Projects information is based on typical values of the base acrylonitrile-butadiene- Production Capacity styrene resin. Producer Note (Ton) Iran’s ABS total capacity is 71 260 thousands ton ABS, 60 thousands thousand tone per year. Pad Jam Polymer Co. 260,000 ton SBS/SB/LCBR- 33.5% progress- Operation Date 2020 136 thousands ton ESBR- 60% progress- Sadaf Chemical Co. 136,000 Operation Date 2019 Total 396,000 Source: Ministry of Industry, Mine and Trade & Iran’s National Petrochemical Company (NPC)

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Trade Chart 10: Iran’s Plastic Import

Import During the last five years on average Iran has imported $1.1 billion worth of plastic each year.

Iran’s largest import accrued in 2013 with $1.3 billion and the lowest were in 2015 with $794 million.

The largest share of Iran’s plastic import belongs to a group of polycarbonates with a share of 20% after that polymers of styrene with a share of 16%, polymers of ethylene with a share of 15% have the largest Source: Iran’s Customs Administration share.

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Table 16: Iran’s Import of Plastic Products

Import ($) HS Code Description 2013 2014 2015 2016 2017

3901 Polymers Of Ethylene, In Primary Forms 152,052,482 152,711,598 153,576,751 190,792,071 183,714,814

3902 Polymers Of Propylene Or Of Other Olefins, In Primary Forms 129,678,371 111,730,303 51,719,945 64,281,270 129,543,758

3903 Polymers Of Styrene, In Primary Forms 400,963,033 205,674,375 138,953,212 103,468,170 48,180,440

3904 Polymers Of Or Of Other Halogenated Olefins, In Primary Forms 53,214,285 43,906,000 25,758,636 50,114,267 62,366,203

3905 Polymers Of Vinyl Acetate Or Of Other Vinyl , Other Vinyl Polymers 17,917,997 15,291,872 14,745,414 15,059,819 19,265,532

3906 Acrylic Polymers In Primary Forms 119,023,476 119,298,333 58,958,086 80,661,348 101,573,595

3907 Polyacetals, Other Polyethers And Epoxide Resins, Polycarbonates, Alkyd Resins, Polyallylesters 210,779,562 234,681,604 145,569,096 281,833,186 249,737,681

3908 In Primary Forms 51,206,718 67,794,870 36,652,588 52,169,443 58,754,234

3909 Amino-Resins,Phenolic Resins And , In Primary Forms 144,928,728 100,087,733 103,643,168 154,102,059 249,638,647

3910 Silicones In Primary Forms 24,605,834 24,802,114 21,879,770 19,834,003 26,736,996

3911 Petroleum Resins, Coumarone-Indene Resins, Polyterpenes, Polysulphides, Polysulphones 24,234,573 13,228,059 13,113,353 13,541,856 13,776,491

3912 Cellulose And Its Chemical Derivatives 32,229,505 32,874,162 25,211,023 20,459,767 24,873,077

3913 Natural Polymers And Modified Natural Polymers 6,711,155 7,329,608 3,919,233 2,078,417 3,220,271

Total 1,367,545,719 1,129,410,631 793,700,275 1,048,395,676 1,171,381,739

Source: Iran’s Customs Administration

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The main exporters of Plastic Italy during the last 5 years on products in Iran are countries like average, was the origin of 1.3% of South Korea, China, and UAE, Turkey, Iran's imports. and Germany.

On average during the last 5 years, 36% of Iran’s Import were from South Korea after that, China with a share of 19% and UAE with a share of 15% was the biggest exporter of plastic products to Iran. Chart 12: Share of Main Origin Countries as Total Import

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Chart 13: Iran’s Plastic Export Export During the last five years on average

Iran has exported $3.8 billion worth of plastic each year.

During the mentioned period Iran’s export increased from $3.2 billion in 2013 to $4.6 billion in 2017.

Polymers of ethylene with a share of 83% have the largest share among Iran’s export of plastic products. After PE, polypropylene and PVC with a share of 6% have the largest share. Source: Iran’s Customs Administration With increased in production capacity of PE and PP it is expected that Chart 14: Share of Plastic Products as Total Iran’s Export export of these two important plastic increase in the coming years.

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Table 16: Iran’s Export of Plastic Products

Export ($) HS Code Description 2013 2014 2015 2016 2017

3901 Polymers Of Ethylene, In Primary Forms 2,779,799,941 3,371,857,588 3,090,493,530 3,122,808,061 3,692,639,893

3902 Polymers Of Propylene Or Of Other Olefins, In Primary Forms 190,957,172 216,204,190 265,171,050 195,534,301 204,203,443

3903 Polymers Of Styrene, In Primary Forms 12,587,941 57,064,866 53,282,936 75,572,853 217,135,492

3904 Polymers Of Vinyl Chloride Or Of Other Halogenated Olefins, In Primary Forms 133,887,525 132,458,477 290,827,006 324,973,965 293,896,991

3905 Polymers Of Vinyl Acetate Or Of Other Vinyl Esters, Other Vinyl Polymers 1,224,702 1,397,060 1,024,677 932,238 2,263,245

3906 Acrylic Polymers In Primary Forms 700,455 1,960,890 868,604 1,209,838 2,185,148

3907 Polyacetals, Other Polyethers And Epoxide Resins, Polycarbonates, Alkyd Resins, Polyallylesters 108,967,374 147,528,375 84,776,097 113,375,109 173,696,104

3908 Polyamides In Primary Forms 236 14,125 561 5,489 91,424

3909 Amino-Resins,Phenolic Resins And Polyurethanes, In Primary Forms 6,890,328 7,500,526 6,270,304 7,768,401 9,899,000

3910 Silicones In Primary Forms 9,728 70,562 90,951 274 92

3911 Petroleum Resins, Coumarone-Indene Resins, Polyterpenes, Polysulphides, Polysulphones 680 13,200 241,637 250 6,205

3912 Cellulose And Its Chemical Derivatives 630,715 531,578 244,101 22,840 91,549

3913 Natural Polymers And Modified Natural Polymers 22,000 0 0 0 0

Total 3,235,678,797 3,936,601,437 3,793,291,454 3,842,203,619 4,596,108,586 Source: Iran’s Customs Administration

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The main importers of plastic Iran’s export to Italy during the last products from Iran are countries like five years only has counted for 0.3% China, Turkey, UAE, CIS Countries, of Iran’s total export of plastic and Iraq. products.

On average during the last 5 years, 61% of Iran’s export were to China after that, Turkey with 12%, UAE with 7% have the largest share.

Chart 15: Share of Main Destination Countries as Total Ex port

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Import Regulation Iran’s government, in order to protect and support the local producers, has imposed tariffs on plastic imports.

Also due economical and Rial value crisis and withdrawal of USA from nuclear deal, Iran’s government temporarily banned the import of 1399 goods, however, because of the importance of plastic as raw materials in the production of other industries, the ban did not include the entry of these materials.

Table 16: Average Customs Duty & Commercial Benefit for Import of Plastic Products

Average Customs Duty & HS Code Description Commercial Benefit (%) 3901 Polymers Of Ethylene, In Primary Forms 6.11

3902 Polymers Of Propylene Or Of Other Olefins, In Primary Forms 5.9

3903 Polymers Of Styrene, In Primary Forms 7.5 3904 Polymers Of Vinyl Chloride Or Of Other Halogenated Olefins, In Primary Forms 5.38 3905 Polymers Of Vinyl Acetate Or Of Other Vinyl Esters, Other Vinyl Polymers 10.1 3906 Acrylic Polymers In Primary Forms 7.27 3907 Polyacetals, Other Polyethers And Epoxide Resins, Polycarbonates, Alkyd Resins, Polyallylesters 7.91 3908 Polyamides In Primary Forms 7 3909 Amino-Resins,Phenolic Resins And Polyurethanes, In Primary Forms 7.5 3910 Silicones In Primary Forms 5

3911 Petroleum Resins, Coumarone-Indene Resins, Polyterpenes, Polysulphides, Polysulphones 6.25

3912 Cellulose And Its Chemical Derivatives 6.42

3913 Natural Polymers And Modified Natural Polymers 5 Source: Iran’s Customs Administration 27 | P a g e

Chart 16: Italy’s Export of Plastic to Iran The Prospect of Iran’s Plastic Sector Iran has planned to double its plastic production by 2025, increased its share to 4.1 percent as world plastic production.

However, with the withdrawal of US from nuclear deal, all of the post- nuclear agreement predictions have been thwarted.

One of the industries that new US sanctions have been targeted is the petrochemical industry and consequently Iran’s plastic industry.

Future of Iran’s plastic industry Chart 17: Share of Plastic as Italy’s Total Export of Plastic to Iran depends on several parameters, including Europe and China role during sanction by the US.

The share of Italy as Iran’s Import of

Plastic Products Italy’s import of plastic products to Iran has increased significantly from 7$ million in 2013 to $32 million in

2017.

55% of Italy’s import belonged to amino resins after that polyacetal has the largest share.

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Table 17: Italy’s Export of Plastic to Iran

Import ($) HS Code Description 2013 2014 2015 2016 2017

3901 Polymers Of Ethylene, In Primary Forms 153,287 213,257 178,076 186,103 696,549

3902 Polymers Of Propylene Or Of Other Olefins, In Primary Forms 183,042 719,917 933,262 1,389,381 308,269

3903 Polymers Of Styrene, In Primary Forms 102,528 80,669 236,135 165,006 8,485

3904 Polymers Of Vinyl Chloride Or Of Other Halogenated Olefins, In Primary Forms 1,477,799 1,412,268 1,572,280 821,363 848,326

3905 Polymers Of Vinyl Acetate Or Of Other Vinyl Esters, Other Vinyl Polymers 110,333 105,859 0 32,199 20,179

3906 Acrylic Polymers In Primary Forms 214,366 430,729 517,095 985,667 1,357,470

3907 Polyacetals, Other Polyethers And Epoxide Resins, Polycarbonates, Alkyd Resins, Polyallylesters 985,961 1,843,807 1,800,740 1,847,092 2,087,887

3908 Polyamides In Primary Forms 10,871 99,819 148,055 1,060,725 1,337,992

3909 Amino-Resins,Phenolic Resins And Polyurethanes, In Primary Forms 2,267,879 2,630,248 2,320,814 9,675,339 24,091,557

3910 Silicones In Primary Forms 777,020 717,841 1,251,465 569,707 189,093

3911 Petroleum Resins, Coumarone-Indene Resins, Polyterpenes, Polysulphides, Polysulphones 99,576 201,258 0 36,171 4,965

3912 Cellulose And Its Chemical Derivatives 227,382 540,781 122,965 765,808 1,236,276

3913 Natural Polymers And Modified Natural Polymers 1,439 11,202 29,485 0 5,519

Total 6,611,483 9,007,655 9,110,372 17,534,561 32,192,567 Source: Iran’s Customs Administration

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Annexes

• Key related Public Organizations, Societies and Associations • Related Previous and upcoming trade fairs and exhibitions • Plastic-Industry related magazines Annex 1 • Key related Public Organizations, Societies and Associations Iran National Petrochemical Company

Headquarter: Tehran

Overview:

The National Petrochemical Company (NPC), a subsidiary to the Iranian Petroleum Ministry, is owned by the government of the Islamic Republic of Iran. It is responsible for the development and operation of the country’s petrochemical sector. Founded in 1964, NPC began its activities by operating a small fertilizer plant. Today, NPC is the second largest producer and exporter of in the Middle East .Over these years, it has not only expanded the range and volume of its products, but it has also taken steps in areas such as Research and Technology to achieve more self-sufficiency.

Contact Info:

 : [email protected] ☎: +982188059760-76  : http://english.nipc.ir  : Tehran Province, Tehran, No.144, North,, Sheykh Bahayi St Iran National Plastic and Polymer Industries Association

Established: 2012 Headquarter: Tehran

Overview:

The company mission is to identify and remove the obstacles for the development of member firms in order to increase the rate of return on investment and competitiveness. National Plastic and polymer Industries Association will continue its mission to the development of the Iranian plastic industry to the world class and together with the country’s grand goals in order to be known as a worthwhile and reasonable reference for the members, consumers and society and also to be at the service of the government as an expert and honest executive arm and decision maker. Serving scope of Iran National Plastic Industries Association covers includes all the plastic industry guild forums, manufacturers (Raw Materials and ...), suppliers and so on.

Contact Info:

 : [email protected] ☎: +98-21-88927986-7  : http://www.inpia.ir  : Unit 22, 4th Floor, No.76, Kalantari St., Sepahbod Gharani Avenue.,Tehran, 1598833916 Association of Plastic Industries

Headquarter: Tehran

Overview:

The association is comprised of different commissions providing different services to the member companies. The commissions are: • Public relation • Economic and politic • Education and welfare • Financial and administration • Cultural commission • Technical and statics The main goal of the association is establishing databases, identifying consumer product markets, the status of competitors in the markets, retailers of raw materials and trade information required by members as well as the assistance in the organization of practical and vocational schools and specialized staff and management of the members and employees of the member units (with the fullest possible use of existing facilities in the country).

Contact Info:

 : [email protected] ☎: 009821-88757808  : http://assoplast.com/english rd  : 3 Floor, o 2 ,12th Alley, Bokharest St , Arjantin Sq., Tehran, Iran Iran Master batch and compound Producers Association

Established: 2013

Headquarter: Tehran

Overview:

With regard to increasing development of plastic industry and its importance, constitution of specialized association as a complementary for developing petrochemical industry seemed essential. Iran Master batch and Compound Producers Association was founded and registered on 24 February 2013, with cooperation of Iran Chamber of Commerce Industries, Mines and Agriculture, in order to solve the trade problem of this guild community and also improving technical knowledge of mentioned industry.

Contact Info:

 : [email protected] ☎: 021 44787134  : http://imbpa.com/  : Pajohesh bulivard, pajohesh city complex, 15 Kilometer to Karaj Highway, Tehran. Trade Promotion Organization of Iran (TPO)

Established: 1995 Headquarter: Tehran -Iran

Overview:

TPO is the active , knowledgeable ,participatory organization based on the management principles which tries to fulfill the strategic plan , develop and strengthen foreign trade in order to achieve the greatest market share. This organization pursues development of the trade considering creation of effective interactions with the parties to the business and the beneficiaries, efficient human resources and application of new science and technology and always tries to develop proper conditions for macro management of export and fortification of substructures and the capacities necessary to facilitate and develop the overseas trade of the state through planning, policy making, high maintenance and supervision. Moreover, achieving perfect overseas trade of the state, towards having active interaction with the world economy and centrality of market-based economy are considered the essential policy of this organization.

Contact Info:

 : [email protected] ☎: (+98-21) 21919  : (+98-21) 22664044-22664045  : http://eng.tpo.ir/  : 1148 Tadjrish, Tehran-Iran Industrial Development and Renovation Organization

Established: 1967 Headquarter: Tehran

Overview: ​​In the course of its 40 years of activity, IDRO has gradually become a major shareholder of some key industries in Iran. In recent years and in accordance with the country’s privatization policy, IDRO has made great efforts to privatize its affiliated companies. While carrying on its privatization policies and lessening its role as a holding company, IDRO intends to concentrate on its prime missions and to turn into an industrial development agency. IDRO has focused its activities on the following areas in order to materialize such strategy and to expedite the industrial development of Iran: • Promotion of local and foreign investment with minority holdings owned by IDRO (less than 50% of the shares) with particular emphasis on new, hi-tech and export-oriented industries. • Restructuring the existing industries through participation of reputable foreign companies in order to transfer new technologies and to enhance the non-oil exports of Iran. • Development of general contracting activities with the participation of the Iranian private sector and credible foreign companies.

Contact Info:

@: Mr. Mohammadreza Nematzadeh  : [email protected] ☎: +982122044101-9  :http://www.idro.ir/en  :Jam e Jam St, Vali Asr Ave, Tehran, Iran Annex 2 Plastic Industry related Magazines in Iran Magazine

Plastic Industries monthly magazine Monthly Published Farsi and English http://www.magiran.com/magtoc.asp?mgID=1113&number= 338

Hamgen Plastic Industries magazine Farsi http://www.eranico.com/pooyasoftpublisher/storage/file s/20160518124635-240_1.pdf

Polymers & Coatings Magazine Online Polymer and coating e-magazine https://www.iranpolymer.com/ Magazine

Baspar magazine Monthly Published Farsi

Iranian Journal of Polymer science and technology Bimonthly published Farsi http://jips.ippi.ac.ir/ Annex 3 Plastic related Trade Fairs in Iran Trade Fairs (Previous)

The 11th Iran Plast exhibition 26 – 29 September 2017 Tehran Permanent Fairground Tehran, Iran

The 7th international exhibition of plastic, rubber and relevant machiney & equipment 22-25 August 2017 Esfahan, Iran Trade Fairs (Upcoming)

The 12th Iran Plast exhibition

International Exhibition of Plastics, Rubber, Machinery and Equipment 24 – 27 September 2018 Tehran Permanent Fairground Tehran, Iran

The 11th Esfahan Plast exhibition August 2018 Esfahan, Iran

ICE-Teheran

Africa Express Way, Before Jahan Kodak Junction, Navak Bldg, N.17, 7th Fl., Apt. 15 Tehran – Iran Tel. 0098 (21) 88889828 [email protected] www.ice.it