Infrastructure problems delay new Mehr HDPE plant

18 February 2008 08:45  [Source: ICIS news]

TEHRAN (ICIS news)--Iranian-foreign joint venture Mehr Petrochemical has delayed the mechanical completion of its $182m high density polyethylene (HDPE) project by three months to the end of this year due to infrastructure problems, a source close to the company said on Monday.

 

He declined to elaborate on the problems at the site at Assaluyeh, Iran, which was now 83% complete.

 

The 300,000 tonne/year plant was supposed to be completed in the third quarter of 2008 after a previous delay.

 

It will receive ethylene feedstock from Jam Petrochemical and plans to export 60% of its output which will be mainly film grade material.

 

Mehr is a joint-venture of Iran’s National Petrochemical Co (40%) and a group of foreign companies.

 

These comprise Thailand’s Cementhai Chemicals (38%), Itochu (12%) and PTT Chemical (10%). The joint venture marked the first time that foreign companies have a larger stake than an Iranian firm in a petrochemical project.

 

Japan’s Mitsui Engineering & Shipbuilding (MES) and Iranian firm Rampco was awarded the turnkey contract in mid-2005 for the project.

 

($1 = €0.68)

 


By: Florence Tan
+65 6780 4359



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