NPC Initiative to Aid Domestic Equipment Producers

EghtesadOnline: The National Petrochemical Company is stepping up efforts to support domestic manufacturers of oil, gas and petrochemical equipment.

News ID: ۷۴۱۵۴۳

16 May 2017

Ali-Mohammad Bosaqzadeh, NPC deputy for production affairs, said the state-run company is considering a bylaw which will require petrochemical contractors to use locally manufactured equipment and (then) be eligible for financial assistance from the National Development Fund of Iran.

"Companies seeking help from the NDFI will have to buy 50% to 70% of all equipment for their petrochemical plants from domestic producers," Bosaghzadeh was quoted as saying by Shana on Monday. He did not provide details on the loans nor say when the new requirement will come into effect.

NDFI was established in 2011 to direct a portion of oil and gas revenues toward productive, sustainable investments, Financial Tribune reported.

"They will be allowed to turn to foreign markets and still benefit from NDFI facilities if a certain piece of equipment was not being produced inside the country."

Bosaghzadeh went on to say that manufacturers whose products have already met NPC's technical standards and requirements will have priority in petrochemical projects under the new scheme.

"The measure will help us reduce reliance on foreign equipment and help ensure that domestic producers of industrial and energy equipment will continue to function."

NPC is the chief regulatory body in the petrochemical sector. The state-owned company used to be a conglomerate of dozens of petrochemical firms that were privatized as part of the  privatization drive and downsize the bloated bureaucracy.

The company aims to institute policies that will help attract foreign investment and technology and speed up the expansion of the petrochemical sector which was battered by years of international restrictions and lack of funding.

Tehran says it hopes to attract more than $70 billion in the petrochemical sector and boost annual production to 130 million tons in five years.