It is the first petrochemical project whose agreement was signed
between Iran and a foreign company since the implementation of Iran's landmark
nuclear deal with six world powers, dubbed the Joint Comprehensive Plan of
Samad Kargar, CEO of Sadaf Petrochemical Plant, said that Versalis,
the chemical arm of Italy's energy group Eni, and Italy's Tecnimont had
provided the Iranian party with all necessary documents for the construction of
the petrochemical plant under a 14.7-million-euro deal.
"The petrochemical plant which has an SBR unit with a capacity
of 136,000 tonnes a year has been designed by using the technology of Versalis
and the engineering of Tecnimont of Italy", Kargar told Iran Petroleum in
"The project, which has registered a 37% physical progress, is
under construction on 8.1 ha of land at Styrene Park of Assaluyeh. Due to being
located at Styrene Park, the project requires less infrastructure costs ",
"Given the 8-year history of development of Sadaf
Petrochemical Plant, we hope to be able to accelerate the pace of the
project," he said.
Kargar said more than 102 million euros had been borrowed from the
National Development Fund of Iran (NDFI) with Tose'eh Tavon Bank serving as
He added that the project, which has been operated by the Persian
Gulf Petrochemical Industries Company, was also in the process of attracting
Latex Production Line
Kargar said talks were under way for launching a latex production
line during the phase of development.
"Sadaf Petrochemical Plant receives butadiene and styrene from
Jam and Pars petrochemical plants for conversion to synthetic rubber. Before
this product is achieved we witness the production of latex," he said.
"We took the initiative to hold talks with Latex Co. for location so that
the feedstock for this material would reach 50% and be usable in more
"The Sadaf petrochemical project entered the operating phase
in 2013, and in case it could attract IRR 5,000 billion plus 187 million euros
over 26 months, it would be completed," he said.
Kargar said more than 98% of the project is owned by the Iranian
Investment Petrochemical Group Company, adding that Persian Gulf Petrochemical
Industries Company had a 67% share in the project.
He said that 83,000 tonnes of butadiene and 45,000 tonnes of
styrene would be annually needed for 136,000 tonnes of products a year at Sadaf
Petrochemical Plant, adding that Sadaf products would be mainly used in tire
and rubber manufacturing industries.
Exports to India and China
Kargar said the synthetic rubber production capacity in Iran stood
at 75,000 tonnes, which is expected to reach 125,000 tonnes in coming years.
"The surplus production of Sadaf Petchem Plant is planned to
be exported to China and India because for instance India annually needs more
than 200,000 tonnes of this product, while its current output stands below
18,000 tonnes," he added.
Kargar said the rate of return on investment in this project would
be more than 18.4%, adding: "We have always tried our best to cut costs
and diversity products in a bid to increase the margins of investment in this
He said that the JCPOA implementation had removed hurdles to the
granting of Italian licenses.
"Currently qualified Iranian companies are involved in this
project. Based on the current plans and instructions in effect at the Persian
Gulf Petrochemical Industries Company, we are required to supply our commodity
and equipment domestically. For instance, we have used chillers and cooling
systems developed by domestic manufacturers," he said. "Meantime an
agreement has been signed with Petrochemical Commercial Company which is a
leading entity in domestic manufacturing of equipment. The knowhow and capacity
of domestic manufacturers will be used as much as possible."
New European Markets Sought
Kargar said Sadaf project would face no problems with regard to
feedstock. "Since the Persian Gulf Petrochemical Industries Company has
agreements with the major suppliers of feedstock to this petrochemical plant it
seems that we will face no specific problem with feedstock supply."
He said synthetic rubber production
has started in the world since World War II (WWII), adding: "Since
we use Italian technology to obtain this product at Sadaf Petchem Plant, we are
hopeful to export this product to Europe because we comply with all
Europe-recognized standards in our production line."
Job Creation and Youth Recruitment
Kargar said around 300 people had been hired at Sadaf Petrochemical
Plant regularly, adding that the figure trebles under certain circumstances.
"Once this project has been launched, direct job creation at
this petrochemical plant will reach 500. Meantime, by launching this project in
compliance with the European standards a major change will happen in Iran's
rubber manufacturing industry," he said.
said the average age at the Sadaf project was 35 years, adding: "Our main
source of hope in this project is the high capacity and motivation of
Courtesy of Iran Petroleum