Iran adding 0.5m tonnes of PVC to be net exporter

SINGAPORE (ICIS news)–Iran is planning to bring on stream 417,000 tonnes/year of additional polyvinyl chloride (PVC) capacity by the end of 2008, turning it into a net exporter, a source close to National Petrochemical Co (NPC) said on Tuesday.

“The new capacities will help ease the tight supply of PVC in Iran and provide export opportunities,” a Tehran-based trader said.

Arvand Petrochemical Co’s 340,000 tonne/year PVC plant, located at Bandar Imam, will start up in December this year, the source said, comprising 300,000 tonnes/year of suspension grade and 40,000 tonnes/year of emulsion grade.

The complex would also include vinyl chloride monomer (VCM) and ethylene dichloride (EDC) plants, with a capacity of 340,000 tonnes/year each and a 635,000 tonne/year caustic soda line, a second source said.

Abadan Petrochemical is also planning to double its PVC capacity to 120,000 tonnes/year by the end of the year, the first source added.

And Bandar Imam Petrochemical Co (BIPC) will debottleneck its 175,000 tonne/year PVC plant at Bandar Imam by 17,000 tonnes/year.

Iran’s current installed PVC capacity is 235,000 tonnes/year, while consumption in 2007 was estimated at about 260,000 tonnes/year.

“Demand for PVC is robust from the construction, water supply and synthetic leather segments,” the trader added.

Once the new capacities come on stream, Iran is set to become a net exporter, with a surplus of an estimated 390,000 tonnes/year, after the plants achieve full output.

Arvand and BIPC are subsidiaries of NPC, while Abadan Petrochemical is a privately owned Iranian company.

For more on PVC visit ICIS chemical intelligence