Hyosung Corp., South Korea’s leading chemical and textile company, is accelerating its foray into Iran, a country rich in natural gas and oil reserves and dubbed as the gateway to other markets in the Middle East, Europe and Africa, reported Pulse.
According to chemical industry sources on Sunday, Hyosung recently signed a memorandum of understanding (MoU) with Iran’s state-run National Petrochemical Company in the business of polypropylene (PP), thermoplastic polymer used in making plastic products and home appliance, products. The Korean company said it has been in talks with its Iranian counterpart to determine the feasibility of its PP business in the country, but has not made any conclusion yet.
Industry experts expect Hyosung looking to expand its offshore manufacturing network would set up a PP production base in Iran. The company has inked an agreement with Vietnamese government to build a PP plant at a cost of $336 million in February last year.
Iran has been attracting investments from abroad on expectations on economic renaissance following the lifting of international sanctions. The country has the world’s second largest natural gas deposit and the fourth largest crude oil reserve on top of its geographical advantage offering easy access to other Middle Eastern markets as well as Europe and Africa.
Currently, Korean companies are working on nearly 60 petrochemical projects in Iran. Cho Hyun-sang, Hyosung president who visited Iran as a member of the business delegation when former Korean President Park Geun-hye made a state visit to the country in May last year, has been building business networks with the Iranian government since then.