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Iran signs polyethylene deal with Japan

Business Materials 7 May 2017 16:03 (UTC +04:00)

Baku, Azerbaijan, May 7

By Fatih Karimov – Trend:

Iranian petrochemical holding signed a deal with Japanese Itochu Corporation for selling polyethylene.

Under the deal, Persian Gulf Holding Company will send 11,000 tons of polyethylene per month to various markets through Itochu, Mohammad Hossein Kakouei-Nejad, head of the Persian Gulf petrochemical industry Commercial Company, said, IRIB news agency reported May 7.

The annual value of the exported polyethylene will be $150 million, Kakouei-Nejad said.

He added that the deal will become operational in coming months.

The aforementioned deal follows a finance agreement signed between the two parties last year.

Managing Director of Persian Gulf Petrochemical Industries Company (PGPIC) Adel Nejad-Salim ‎and the Itochu executive Vice President Ichiro Nakamura signed the Usance Letter of Credit worth ‎of 320 million euros in December 2016.

Iran has the annual capacity of producing up to 63 million tons of various types of petrochemical products and the Islamic Republic plans to increase it to 130 million tons in the next decade.

According to the official sources, Iran should absorb $50 to $70 billion to complete its half-finished petrochemical projects.

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