4 March 18, 2021 ECONOMIC NEWS Annual Foreign Trade in Iran to Iran Takes Boldest Step Toward Industrialization Hit $70 Billion in Days: Official Under Sanctions Speaking at a meeting with the exporters, Za- TEHRAN (Press TV) - Iran is taking its boldest step yet toward industrialization under dboom said,”The value of the country’s foreign the country’s “resistance economy” blueprint, sinking billions of dollars into its leading businesses with the aim of building top-notch industrial groups. trade in the Iranian year 1399 (March 2020- The resistance economy is a concept proposed by Leader of the Islamic Revolution March 2021) is going to hit $70 billion after Ayatollah Seyyed Ali Khamenei in 2016 to leverage domestic capabilities in order to clearance of the last trade shipments.” overcome gaps resulting from U.S. policies to restrict business with Iran and insulate Zadboom also praised the country’s success in the economy from sanctions or hostile foreign activity. preserving the flow of exports and imports under Five Iranian companies signed “resistance economy cooperation” agreements worth the tough sanctions and economic war imposed $6.1 billion to remedy sanctions-related gaps and fallouts from the exit of foreign firms, Deputy Industry, Mining and Trade Minister Saeed Zarandi said. by the U.S. Chadormalu Mining and Industrial Company, Machine Sazi Arak, Al Mahdi Alu- He noted that the administration and the parlia- minum Complex, Shirin Asal Food Industrial Group and Sepahan Oil Company were ment are resolved to keep supporting the export among 23 companies which have announced readiness to participate in the program. of non-oil products in the next Iranian year. “By implementing this plan, we can make up with the help of national capital resourc- The governor of the Central Bank of Iran had es for the absence of the countries that have turned away from the Iranian economy due announced in January that Tehran has adopted to sanctions,” Zarandi said. The government, he said, has invited 100 leading companies operating in Iran’s petro- such plans that domestic production and foreign chemical, mining, automotive and non-metal industry sectors to undertake investment trade would not be harmed even if the sanctions activities. are kept in place. Increasingly in recent years, Iran’s state planners have called amid the sanctions for Abdolnasser Hemmati emphasized that Iran shifting the economy from its dependence on technology imports and construction of would never return to previous conditions be- industrial facilities by foreign companies to focus on home-grown industries. cause of the Central Bank’s policies, the ongoing Innovative Economy Zarandi underlined the need to establish tech-driven productivity in Iranian enter- TEHRAN (Tasnim) – Head of the Trade Pro- said that the value of Iran’s foreign trade in the year plans, tools designed to handle the situation, and prises, saying the future of improving the country’s overall economy hinges on this motion Organization of Iran Hamid Zadboom has ending on March 20 will reach $70 billion. monetary policies to eliminate the budget deficit. concept. “Manufacturing firms need to invest in research and development because any im- provement in the rating of companies occurs with innovation in large corporations,” he said. Arvand Petrochemical Plant Registers New Research and innovation is regarded as the key driver of national economic and social advance. The government is pushing the companies to invest in R&D while shielding Production, Profitability Records them from competition. The plan is to bring industry R&D and production infrastructure together with local TEHRAN (Shana) -- Arvand Petrochemical Plant, as one of the and national universities and research facilities to create an innovative economy adept at turning ideas from laboratories into products and industries. largest PVC production chains in the world, succeeded in breaking This close collaboration between government, industry, and the academic community production and profitability records in the current calendar year, is hoped to lead to the emergence of small to medium-sized businesses. Zarandi underlined the importance of networking between big and evolving busi- which began on March 21, 2020. nesses, saying “this can save the country’s industry”. According to Arvand Petrochemical Company, after the record- The aim is to create industry clusters to promote job creation and economic growth. A breaking production of chlorine in December this year, the record- cluster-based approach starts with the industries and assets that are already present in the region and regional stakeholders pursue initiatives to make those industries better. breaking production of E-PVC in February, realization of a net An approach for creating entirely new clusters in a region is a strategy to improve profit equal to 128% of the approved budget and a 228% growth overall business environment conditions by upgrading skills, access to finance and in- frastructure, streamlining government rules and regulations and supporting local de- in year-on-year profitability of the company were achieved by the mand. company during the year. Clusters consist of companies, suppliers and service providers, as well as government agencies and other institutions that provide education, information, research and tech- The historic record of production of 2.02 million tons of petro- nical support to a regional economy. chemicals at Arvand Petrochemical Plant was made possible with They help create a competitive advantage for the related firms in a particular re- proper planning, continuous endeavors, commitment and benefit- gion. This advantage then becomes an enticement for similar industries and suppliers to those industries to develop or relocate to a region. ing from the knowledge and expertise of local employees. Developing industry clusters has become a key goal for economic development as they have been shown to strengthen competitiveness by increasing productivity, stimulating innovative new partnerships, even among competitors, and presenting opportunities for entrepreneurial activity. Trade Through Khorramshahr Port Up 16% Creating large industrial groups TEHRAN (Dispatches) - Man- tor and the launch of refrigera- Each of the five companies which signed investment contribution agreements has an established industrial jurisdiction in a particular geographical locality in Iran. aging Director of Khorramshahr tor container line,” Assadi said. Chadormalu Mining and Industrial Company in central Yazd is the main iron ore Ports and Maritime Organization He also said that the anchor- concentrate producer in the Middle East. It is based close to a constellation of heavy Nourollah Assadi has said that age time for vessels waiting to industries such as steel, automotive and refining plants in Isfahan, Shiraz and Kerman. 3.173 million tons of goods were be unloaded has decreased by Machine Sazi Arak is an Iranian manufacturing corporation established in Arak - loaded and unloaded in the port launching a container terminal nicknamed as the “industrial capital of Iran” - with the aim of supporting underlying during the current Iranian year and leveraging strategic equip- industries and meeting the industrial needs of the country. Al Mahdi Aluminum Complex in Bandar Abbas in the Persian Gulf accounts for 60 (March 20, 2020-March 20, 2021) ment. percent of Iran’s production of aluminum ore. The $1.6 billion agreement signed with showing a considerable increase Khorramshahr port, spanning the company Monday calls for investment in downstream industries for higher value- compared to the year before. an area of 230 acres, has 20 added production and localization of industrial machinery, provincial industry, mine “Khorramshahr port saw a 16 wharves and is placed in the Ar- and trade head Khalil Qassemi said. percent increase in the total vol- vand free trade zone. The port is Shirin Asal Food Industrial Group is based in the northwestern city of Tabriz, known ume of container loading and connected to Imam Khomeini as the capital of Iran’s food industry. The company is involved in cultivation in Africa unloading, with container load- port, Iran’s 3rd largest port, and and elsewhere under Iran’s strategic food security policy. Sepahan Oil Company in the central city of Isfahan is the largest producer of base oil ing experiencing a 49 percent enjoys a strategic position in in the Middle East. The company is also one of the main producers of diesel and engine increase due to Kuwait’s market the vicinity of Iraq and Kuwait oil in the Mideast. demand growth in the food sec- markets. Iran’s state planners believe that the absence of large industrial groups is a key miss- ing link, which with increased R&D intensity can be driven towards new heavy indus- tries, including the country’s sprawling petroleum and petrochemicals, car manufactur- ing, shipbuilding, electronics and other fields and fire up its economy, besides playing a India Readies Saudi Oil Import Cut as Stand-Off buffer against foreign pressure. Zarandi cited the example of South Korea where 10 leading industrial groups such as LG, Lotte and Samsung play a key role in the country’s and world’s economy. Escalates - Sources Samsung which started life as a grocery trader in 1938 is now South Korea’s largest group, operating in industries as diverse as electronics, insurance, construction and NEW DELHI (Reuters) - Indian a month, the sources said. shipbuilding. In 2018, it produced roughly 15% of the nation’s gross domestic product. state refiners are planning to cut India, the world’s third-biggest In Turkey as well, 10 brands have been targeted to become world leaders in a variety oil imports from Saudi Arabia by oil importer and consumer, imports of industries, according to Zarandi. Knowledge-based start-ups about a quarter in May, in an esca- more than 80% of its oil needs and In recent years, the number of knowledge-based enterprises has increased in Iran, lating stand-off with Riyadh follow- relies heavily on the Middle East.