OREANDA-NEWS. June 03, 2011. Iran will set up two new petrochemical centers in China to increase exports to this Asian nation, announced managing director of Iran's Petrochemical Commercial Company (PCC).

Pointing to the country's plan to diversify target markets, Reza Hamzehlou told Mehr News Agency that India and China would be the major destinations for Iran's petrochemical and polymer products.

He explained that currently Iran operates a petrochemical office in Shanghai, adding another one would be established in Beijing in the near future. This will enable the proper distribution of petrochemical products, he underlined.

In addition, he said, storage facilities in Chinese cities will help boost export of petrochemical products. Hamzehlou predicted that close to 2 million tons of petrochemical products will be exported to China by the end of the current Iranian year in March 2012.

At present, China, with annual imports worth USD 2.5 billion, is considered as Iran's largest market for petrochemicals.

India has also become one of the biggest customers of Iran's petrochemical products. The Indians have bought Iranian petrochemical products such as PVC grades in advance. Even the first consignment of caustic soda, manufactured by Arvand Petrochemical Complex, has been exported to India.

Vietnam, South Korea and Malaysia are the other East Asian buyers of petrochemical products.

44m Tons Output Planned
In another development, a senior National Petrochemical CompanyNational Petrochemical Company official gave news that close to 44 million tons of petrochemical products would be manufactured during the current Iranian year to March 2012, IRIB reported.

Ali-Mohammad Bosaghzadeh explained the petrochemical units will undergo maintenance and overhaul to achieve the highest productivity. He elaborated that petrochemical units are overhauled annually. The official put the production capacity of petrochemical units at 51 million tons, naming Iran as the second largest producer of petrochemicals in the Middle East. Moreover, by commissioning new units, close to 6.5 million tons would be added to domestic petrochemical capacity, he pointed out.

65 Projects in Pipeline
About 65 new petrochemical projects with an annual production capacity of 66 million tons are expected to come on stream during the Fifth Five-Year Economic Development Plan (2010-15), announced managing director of National Petrochemical CompanyNational Petrochemical Company.

Speaking at the 9th International Petrochemical Conference last week, Abdolhussein Bayat estimated the total capital investment in the projects at USD 50 billion, Mehr News Agency reported.

The company's plans include the construction of 8 methanol and 9 ammonia projects, Bayat said, adding Iran seeks to become the top producer of petrochemical products by 2025.