Iran to postpone merge of petrochemical companies

Oil&Gas Materials 18 May 2019 09:15 (UTC +04:00)

Tehran, Iran, May 18


The issue of merging Iranian petrochemical companies with private sector for boosting exports has been postponed until further notice.

Iran's petrochemical industry faced a set back after privatization, where each production unit follows it own needs and product sale separately, and while there are possibilities of merging petrochemical holdings, the issue is still not resolved, Trend reports citing IRNA.

It was expected that two giant firms - Persian Gulf Petrochemical Industries company and Tamin Petroleum & Petrochemical Investment Company (TPICO) - merge together to increase the exports but the set of problems on the way has stalled the move.

"There have been many problems from the start , the legal obstacles and evaluation are the issues that prevented the merge of the two," said the CEO of Tamin Petroleum & Petrochemical Investment Co Mahmoud Makhdomi.

"The shares of some subsidiary companies of TPICO holding were on bail that made the merge difficult," he added.

Referring to Iranian Oil Minister's comment on suspending the merger, Makhdomi said that considering the diversity and number of companies that are shareholders in oil, cellulose, refining industries, the merge faced difficulties,"

Experts believe the development of domestic market and reducing international limitations would prepare the grounds for merge of Iran's petrochemical companies.