Iran, Japan sign petrochemical deal

Business Materials 4 December 2016 12:39 (UTC +04:00)

Baku, Azerbaijan, Dec. 4

By Fatih Karimov – Trend:

Iran’s Persian Gulf Petrochemical Industries Company (PGPIC) signed a usance (providing finance from international markets on short-term) deal with Japan’s ITOCHU company.

The Japanese firm will provide 320 million euro of finance to the Iranian company under the deal, SHANA news agency reported.

The PGPIC previously signed a similar financing deal worth 320 million euros under NEXI insurance coverage with Marubeni Company in Tokyo on Sept. 1.

PGPIC had already announced that is in talks with Asian companies to secure usance finance to the value of up to one billion euros for an expansion including a methanol project intended to serve China and other Asian customers.

The PGPIC, through its subsidiaries, provides polymers, aromatics, chemical and basic products, and feed stocks. It produces petrochemical products; and markets and sells petrochemical products in the international markets, as well as supplying Iran’s petrochemical downstream industries.

Iran’s actual petrochemical output capacity is around 63 million tons per year.

The country hopes to bring the capacity to 120 million tons by 2020 and 160 million tons by 2025.