December 5, 2016 

Japan’s ITOCHU signs €320m petchem deal in Iran

Japan’s general trading firm ITOCHU has signed a contract, worth €320 million, for financing petrochemical projects in Iran.

The deal was signed with Iran’s Persian Gulf Petrochemical Industries Company (ペルシャン・ガルフ石油化学工業 PGPIC) in Tehran on Saturday, Shana reported.

Back in September, Japan’s integrated trading and investment business conglomerate, Marubeni, signed a deal with the same value with PGPIC on financing petrochemical projects in Iran.

PGPIC has announced that it plans to attract €1.5 billion in foreign investment within the framework of short-term (usance) and medium-term contracts by the end of the current Iranian calendar year (March 2017).

Managing Director of Iran’s National Petrochemical Company Marzieh Shahdaie said in August that Iran needed more than $50 billion for completing its semi-finished projects in the petrochemicals sector.

Companies from Germany, France, Spain, Italy, the Netherlands, South Korea, Japan and even the U.S. have indicated readiness to participate in Iran’s petrochemical projects, she noted.

Last year, Iranian companies exported about $12.8 billion of petrochemical products. Iran currently produces 60 million tons of petrochemicals a year. This capacity will increase by 8.5 million tons by March 2017 when a number of new projects become operational.


September 26, 2016

Japan’s Marubeni to finance €320m petchem projects in Iran

Japan’s integrated trading and investment business conglomerate, Marubeni, has signed a €320 million short-term (usance) agreement on financing petrochemical projects in Iran, IRNA reported on Sunday.

The agreement was signed between Iran’s Persian Gulf Petrochemical Industries Company (PGPIC) and Japan’s Marubeni insured by Japanese NEXI Nippon Export and Investment Insurance 日本貿易保険.

No further details have been released on the agreement.

Another contract with the same value and increasable to €640 million is being finalized and will be formally signed in the near future between the two sides, the report added.

Iran now has a production capacity of 60 million tons of petrochemical products per year and plans to increase the figure to 120 million tons by 2026.

April 16, 2017 Financial Tribune (Iranian Economy Daily)  

Japan Firm in Talks for $1 Billion Petrochem Project in Iran

Talks are underway between the National Petrochemical Company and Japan’s Sojitz Corporation on building a petrochemical plant with a total investment of €1 billion ($1.06 billion), said Hossein Alimorad, a NPC deputy for investment.

“We started studying the project, after signing an agreement last year… currently we are finalizing negotiations over direct investment in a petrochemical project,” NIPNA, the NPC's official news service quoted Alimorad as saying on Saturday.

In October, the two companies signed a memorandum of understanding to study establishment of a methanol-to-propylene plant in Iran.

“We are in advanced talks over the petrochemical plant with the Japanese company and expect the deal to be finalized in the near future," the official said.

Sojitz will hold a stake in the petrochemical plant, Alimorad said without elaboration.

Polypropylene is a thermoplastic polymer with wide applications, including packaging and labeling, textiles, laboratory equipment and automotive components.

The Tokyo-based company operates in an array of industries, namely energy, minerals, chemicals, automobiles, agricultural and forestry resources, consumer goods and industrial parks. It is the largest seller of commercial aircraft in Japan.

The deal is part of effort to raise installed petrochemical production capacity to 130 million tons annually by 2020.



NPC inks MoU with Japanese firm in petchem cooperation

Iran’s National Petrochemical Company (NPC) has signed a memorandum of understating with Japan’s Sojitz for carrying out studies over construction of a methanol to propylene plant in Iran.

Held at the locality of the NPC in Tehran, the signing ceremony of the MoU was attended by Managing Director of the NPC Marziyeh Shahdaei and Masaru Sato, Sojitz’s senior representative on Saturday.

Speaking during the ceremony, Marziyeh Shahdaei, who is also deputy petroleum minister in petrochemical affairs, said the project is of crucial importance for Iran given the vast gas reserves it is sitting atop.

Sojitz has been active in Iran over 50 years and is the first foreign company active in Iran’s petrochemical sector, said Sato during the meeting.
Sojitz Corporation is a general trading company based in Tokyo, Japan.

It is engaged in a wide range of businesses globally, including buying, selling, importing, and exporting goods, manufacturing and selling products, providing services, and planning and coordinating projects, in Japan and overseas.

Sojitz also invests in various sectors and conducts financing activities. The broad range of sectors in which Sojitz operates includes automobiles, energy, mineral resources, chemicals, foodstuff resources, agricultural and forestry resources, consumer goods, and industrial parks.



February 14, 2017

Japan’s Sojitz to study Iran steel project

Japan’s Sojitz Corporation – the country’s sixth largest trading enterprise – has signed a basic agreement to study the production of steel sheets in Iran’s southeastern port of Chabahar.

The Japanese company signed the agreement with Iran’s Industrial Development and Renovation Organization (IDRO) – the operations arm of the country’s Ministry of Industry, Trade, and Mine.

IDRO Managing Director Mehdi Karbasian was quoted by the domestic media as saying that the project would mark a major milestone in Iran’s efforts to increase its production of steel products to as high as 55 million tons per year.

Karbasian said that Sojitz would present its research findings to IDRO by September, adding that this would be followed by two months of negotiations to seal a final agreement over production of steel sheets.

The official further emphasized that the agreement would be implemented in line with a credit line of above $10 billion that Japan has allocated for Iran, IRNA reported.

Another Japanese company – Kobelco – is developing Mokran Steel Complex in Chabahar with a production capacity of 3 million tons of sponge iron per year.

The project that Sojitz is studying is meant to be launched once Mokran Steel Complex reaches the production capacity of 1.6 million tons per year, IRNA added.

Iran is the biggest steel producer in the Middle East after Turkey, according to the World Steel Association. Output rose to 1.5 million tons last April from 1.3 million tons at the end of the previous year before the international sanctions were lifted in January.

The country has already devised serious plans to increase its steel production capacity to 55 million tons per year from the current level of roughly 17 million tons per year by 2025. The country’s export capacity is also expected to rise to above 13 million tons per year.

神戸製鋼は2003年3月、イラン国営鉄鋼公社の傘下にあるChador Malu Mining and Industrial Companyに、鉄鉱石ペレット製造プラント(年産340万トン)を、丸紅、三菱商事と共同で納入することが決 ったと発表した。



@ グレート方式
A キルン方式

Chabaharにも鉄鉱石ペレット製造プラントを建設する模様。記事では、能力 は年産300万トン。双日は、この能力が160万トンになった時点で鋼板事業を実施する。


February 15, 2017

Japan signs MOU in Tehran to study steel project

Japan’s Sojitz Corporation signed a memorandum of understanding (MOU) with the Iranian Mines and Mining Industries Development and Renovation Organization (IMIDRO) to study the production of steel sheets in Iran’s southeastern port city of Chabahar.

According to a report by IRNA, the MOU was signed at the IMIDRO building in Tehran on Monday and it will be implemented using the $10 billion credit line that Japan has allocated for Iran.

In the signing ceremony the head of IMIDRO, Mehdi Karbasian, said that Iran and Japan have a long history of cooperation in various sectors such as petrochemicals, iron ore, car tire and etc.


10 Sep 2015

Iran starts major steel, petchem plans

Iran on Thursday started construction of two major industrial units in the country’s southeastern province of Sistan-and-Baluchestan – projects that are expected to lead to a major leap in the province’s industrial growth.

The projects involve the construction of a large steel mill as well as a mega petrochemical plant in the port city of Chabahar.

Both are located in Mokran industrial zone and were kick-started by Defense Minister Hossein Dehqan and Industries Minister Mohammad-Reza Ne’matzadeh, respectively.

The steel mill – Mokran Major Steel Complex – is projected to have an annual output capacity of 3.2 million tons and its products will include sponge iron, iron pellets, steel wires, and hot roll steel.

The project that requires an investment of $4.3 billion will be complete within three years. The objectives of the project are to provide supplies to satisfy domestic needs and also export the products. Creation of 1,000 jobs for residents in Sistan-and-Baluchestan is also a prime objective.

A second project – whose construction started along with the steel mill – involves a collection of 20 projects with a total investment of $20 billion for production of various petrochemical products including methanol, ammonia urea, ethylene and propylene.

Negin Mokran Petrochemical Project will have an overall production capacity of 30 million tons and officials say it will create jobs for 20,000 people.

The required natural gas feed for both projects will be provided from IGAT VII – a pipeline that has been constructed from Assaluyeh energy hub in the southern province of Bushehr to the border with Pakistan. The same pipeline is projected to be used for future exports to Pakistan.

Iranian officials said earlier in April that Indian enterprisers have voiced interest to invest in petrochemical projects in Sisitan-and-Baluchestan.

On a related front, India is working over a plan to develop Chabahar – what Iran expects would help turn the key port to a major regional trade and transit hub.