SPAC to export 1st consignment of ESBR in months

EghtesadOnline: Sadaf Petrochemical Assaluyeh Company's Managing Director Ahmad Jazayeri said the first consignment of ESBR will be marketed in the first half of the next Iranian calendar year of 1396 (to start on March 20)

News ID: ۷۷۲۱۴۰

10 December 2016

Jazayeri told IRNA reporters on the sidelines of their tour to certain Assaluyeh petrochemical companies After meeting domestic need the products will be exported to India, China, and Turkey which will be the main target markets.

Jazayeri said Sadaf Petrochemical Assaluyeh Company yields 136,000 ton/year of artificial caoutchouc and operates with a prospective feed supply to the domestic and foreign markets.

The official said the ESBR (A kind of polymer used for downstream and polymer industries as well as downstream tire industries) is a strategic project, commissioned by Sadaf Petrochemical Company.

The industries using petrochemical products or refinery products as raw material are called downstream petrochemical industries. The downstream petrochemical products can be classified into end consumer products, which are at the disposal of the final consumers. The end products are phone, auto cover and so on and the mid-products (that are used as raw materials necessary for production of end products, whose production complete and improve chain of petrochemical products and final products as a priority).

Jazayeri said tire is among seven strategic projects of the Ministry of Industries, Mines and trade and on this basis the technology used by Sadaf Petrochemical Company is the latest such project. The products are both qualitative in terms of standard and environment friendly.

The official said ESBR is the first such project in the Middle East and the global manufacturers of the technology abandon touching the industry due to its unique nature.

He noted that ground breaking of the project started in October 2015 and will yield its final product as of September 2017.

The official said 78,000 tons of the ESBR greasy tire and 59,000 tons of rough tire will be products of the company, which will use 84,000 tons of butadiene, 26,400,000 tons of styrene, 25,200,000 tons of aromatic oil and other additives as feedstock.

He went on to announce that the company's products will primarily meet domestic needs and then for exports and India, China and Turkey are the target markets.

He specified there is no foreign investment in the project but foreign financing has been used to produce part of it. He put the amount of foreign investment at 102.056 euros (5,000 billion rials).

The managing director of Sadaf Petrochemical Assalouyeh Company said the quality of the product depends on the licensor and the licensor of this company's projects is Italian Versalis and this will affect the price of the end product.

He went on to say that India is the main rival of the company's ESBR, which is active under the license of Versalis but his company tries to defeat the rival.

The official said the income and profit of the project heavily depends on oil price and it seems that as of next year, his company will reach maximum price out of sales.

The official said one more reason for uniqueness of the project followed by his company is the local and due to the same reason, the intensiveness of the project in the altitude is compensated and all operations are done in 23 meters of altitude and even in higher altitude.

The most important effects of commissioning of the project is addressing market need and competition with other world producers and raising the forex income.

The Sadaf Petrochemical Company's products include different kinds of the Styrene and butadiene rubber (SBR) in different grades and their application is in the tire industries, rubber parts, mechanic equipment and so on based on international statistics.

Earlier, Director of the Control department of National Petrochemical Company (NPC) Ali-Mohammad Bosaqzadeh said that in German Dusseldorf Exhibition there had been good talks on more exports of petrochemical products to West and East European states like Germany, the UK and Hungary.

Bosaqzadeh said by October 20, 28,700,000 tons of petrochemical products were produced and more than 21 petrochemical companies experienced increase in output level in the first seven months of the year compared to the figures in the same period the previous year.

The country's pegged petrochemical production capacity is nearly 63 million tons a year, which will reach 130 million tons by next nine years.

Assalouyeh port is 280 kms south of Bushehr Province and hosts the South Pars Gas Field development projects. It has 27 jetties with the capacity of more than 43 million tons/year and concurrently high tonnage ships can berth in the port.