Iran Petchem, Plastic Tempt Foreign Firms
Similar to previous years, a large number of foreign firms attended Iran Plast. But it was clear that this time the companies were not present to test the waters for future cooperation.
The representatives of foreign companies were in talks with Iranian entities all through the exhibition. It was definitely an outcome of the implementation of Iran's 2015 nuclear deal with six world powers, known officially as the Joint Comprehensive Plan of Action (JCPOA), in January 2016.
In the past couple of years, transactions have increased significantly between Iranian and foreign companies thanks to the implementation of the JCPOA. Before the sanctions were removed, foreign companies were banned from even responding to emails Iranian companies sent them.
The 11th Iran Plast was timed to coincide with post-JCPOA growth and removal of international restrictions, particularly in the area of technical savvy. That has created the ground for further diversification of the basket of petrochemical and polymer products in the existing petrochemical units. It is currently possible to develop new grades of polymer products for the first time in some petrochemical plants.
Foreign petrochemical companies and downstream industry in foreign countries know quite well that Iran is instrumental in supplying basic needs of other countries.
Iran's share of petrochemical production in the Middle East would reach 41% when development projects in petrochemical sector have become operational by 2020 which marks the end of the country's 6th Five-Year Economic Development Plan.
Machinery Exports to Iran at €22mn
Mario Maggiani, director of Italy's AMAPLAST, said he had managed to bring more than 40 Italian companies to Iran.
He expressed hope that the European Union (EU) would make independent decisions with regard to economic cooperation with Iran without being influenced by the US.
He said that Italy sold more than €22 million worth of machinery to Iran in 2016.
Maggiani said AMAPLAST comprised more than 160 members, adding: "Most members of this association are medium-sized manufacturers of products, equipment and machinery of plastic in Italy. This association is currently the second largest manufacturer in Europe."
Maggiani highlighted his personal presence in all Iran Plast exhibitions in Tehran, noting that the event has been progressing both in quantity and quality over years.
He said that European and American companies that failed to attend some Iran Plast events in the past years due to international sanctions had suffered losses.
"Given the implementation of the JCPOA, the international conditions for presence in Iran's plastic market have improved drastically over the past 1.5 years. According to available statistics, this association's trading with Iran peaked in 2008, but dropped sharply in 2012," said Maggiani.
He said Italy was one of the first countries to host Iran's presidential delegation post-JCPOA, adding that Iran-Italy ties remained strong.
He said the AMAPLAST members had always been eager to work in Iran, but the United States was continuing to pressure the companies for cooperating with Iran.
Maggiani expressed hope that the current trend of trading would continue between Iran and Italy. He said that Italy had exported machinery worth over €11 million to Iran in the first half of 2017.
Shocking Market
Sylvie Montaigne, the sales manager of a French company present at Iran Plast said she was shocked by Iran's market and the hospitality of Iranians.
She said she had come to take advantage of the exhibition to prepare the ground for agreements with Iranian companies.
She said her company was getting 80% of its revenues from exporting products and equipment.
"As someone who has visited all plastic exhibitions in the world, I believe that markets in Iran and neighboring countries are very attractive for foreign companies," said Montaigne.
She highlighted the production of synthetic textile fabrics at her company, saying: "My first presence in Iran coincided with the 11th Iran Plast and so far we have conducted marketing in Iran. Many of our experts had spoken very highly of the attractions of the Iran market."
Spain Eyes Iran Petchem
Juan Carlos Eliva Mateo, director of trade development section of Spain's Top Machine, said its company was experiencing its second ever presence at Iran Plast.
He said his company was a major exporter of machinery used in polymer and petrochemical industry.
Mateo said his main objective was to establish sustainable ties with the Iranian side, expressing hope for broader cooperation.
He said that over the past eight years his company has had very good cooperation with big Iranian companies, adding that he was seeking to preserve the current standing of the company, while trying to broaden its cooperation with medium-sized and growing plastic companies in Iran.
Mateo said Top Machine is cooperating with a large number of companies from around the world in the supply of plastic industry machinery.
He noted that Iran Plast provided a very good chance for petrochemical and polymer businesspeople to get together.
Mateo said he was representing the only Spanish company at Iran Plast, expressing hope for a stronger presence of Spanish companies in the Iran market.
French Firms Make Comeback
Denis Vaillant, head of France's plastic and rubber union SFNCP, highlighted the high quality of Iran Plast, saying he would try his best for a stronger presence of French companies in future editions of Iran Plast.
Vaillant complained that the booth allotted to French firms did not meet their expectations.
He also said that SFNCP had signed a memorandum of understanding with Iran's Polymer Research Center during Iran Plast.
"Unfortunately, sanctions imposed against Iran in recent years had partly restricted the country's access to new technologies.
"We hope that the new MOU would partly facilitate exchange of technical knowhow between Iranian and European companies.
"Access to rich resources, skilled and quite low-cost manpower is among the most important attractions of Iran's market for France," said Vaillant, adding that Iran was among the leading producers of raw materials for petrochemicals in the world.