Germany’s BASF Reopens Bureau in Tehran

Although negotiations between the National Petrochemical Company (NPC) and BASF of Germany kicked off more than a year ago, no new agreement has been signed between the two sides yet, though the German company’s office has been reopened in the Iranian capital.

Commercial and Executive Director of Jam Polypropylene Company Kambiz Mirkarimi announced the news, stating, “The opening of the new office will accelerate and facilitate the talks with BASF SE over investment and exports of petchem products to Europe and Germany in particular.”

A few months ago, a €6bn Memorandum of Understanding (MoU) was sealed between the German firm and an Iranian petrochemical company for construction of a huge petrochemical complex. On the basis of the MoU, BASF will undertake construction of a petrochemical complex in development phase 2 of Assaluyeh.

The complex is planned to produce ethylene in its first production phase, and will later produce various grades of polyethylene.

Deputy Director of Iran’s Petrochemical Employers Association Parviz Sahafzadeh had recently noted that “On the basis of preliminary agreements, a portion of the products by Germany’s BASF will be consumed locally while the rest will be deployed abroad. Final negotiations on gas prices, formation of process and value chain units are still going on with BASF, and a final accord is expected to be inked with the German company in near future.”