BASF calls $4bn investment plan in Iran "rumors"

Business Materials 14 February 2016 19:55 (UTC +04:00)

Baku, Azerbaijan, Feb.14

By Dalga Khatinoglu - Trend:

BASF called the Iranian top official's statement about this company's $4-billion investment plan in Iran "a rumor".

The managing director of Iran's National Petrochemical Company (NPC), Marzieh Shahdaei announced on Feb.12 that the world's largest chemical company, Germany's BASF, has announced readiness to invest $4 billion in a petrochemical project in Iran.

"BASF intends to take a 60 percent stake in the first phase of investment in Parsian Special Energy Zone, southern Iran, Shana news agency quoted her.

She said that the remaining 40 percent investment will be secured by Iranian companies, Shahdaei said, adding that the German company is willing to raise the volume of investment in the next phases of the project.

Answering to Trend about the issue, the Vice President at Communications & Government Relations of BASF Group Elisabeth Schick said on Feb.14 that "BASF does not comment on rumors".

Before, the NPC director for planning, Hamid Reza Rostami also said in December 2015 that BASF was ready to invest $6 billion in Iran's petrochemical sector.

"The foreign company has decided to make direct investment in Iran and also transfer technology and management, and secure guaranteed market. We welcome such opportunities," the official added.

Part of the investment will be related to steam crackers and olefins, while other parts are related to propylene, gas-to-polymers and methanol-to-olefins, he explained.

Iranian media also quoted Kurt Bock, chairman of the board of executive directors of BASF who visited Iran in late 2015 that "German technology and quality of work are highly respected. So, we have good chances to reestablish links with Iran. Iran's petrochemical industry is progressing. When Iran rejoins the global economy, it will affect the markets."

There is not any information about BASF's negotiations with Iran on the company's official website.

Iran is planning to attract about $70billion in foreign direct investment in its petrochemical sector by 2025.