China to invest in Iran's petrochemical project
January 26, 2018 - China is to invest in a petrochemical plant near Kharvanaq city in Iran's East Azerbaijan Province.
A Chinese investor will channel $1.3 million into the joint project, said Reza Hosseini, director general of the Economic Affairs and Finance Department of East Azerbaijan Province, according to Trend News Agency.
Hosseini said that the Chinese side will provide 85 percent of the investment in the project while Kharvana Petropalayesh Company, the project's Iranian partner, will undertake the remaining 15 percent.
Once operational, the plant will have an annual production capacity of 520,000 tons of polypropylene, the official said.
Polypropylene is the world's second-most widely produced synthetic plastic, after polyethylene.
It is a thermoplastic polymer used in packaging and labeling, textiles, carpets, stationery, plastic parts and reusable containers of various types, laboratory equipment, loudspeakers, automotive components, and polymer banknotes.
Iranian petrochemical companies produced 521,200 tons of polypropylene during March-October 2017, which is 6.2 percent more year-on-year.
Kharvanaq plant will be established in an area of 400 hectares, he said, adding that annually 15 million cubic meters of water should be supplied for the plant.
The project will also need infrastructures to supplying 60 megawatts hour of electricity as well as 5 million cubic meters of natural gas, he added.
On completion, the plant will generate 1,500 jobs, he said.
Iranian polymer output is expected to reach 12 million tons by 2022, based on the Sixth Five Year Development Plan (2017-2021).
The Islamic Republic's annual polymer production capacity currently stands at 7.4 million tons.
According to the latest figures released by the Iranian Ministry of Industries, Mining and Trade, over 3.836 million tons of various polymers were produced in the country during March-October 2017.