The German company struck the deal on May 26 with Masjed Soleyman Petrochemical Industries Company (MSPIC). The contract’s value could rise as high as €10bn in future.
The money will be invested in the first phase of a petrochemical project in Masjed Soleyman, said ADKL’s Bernd Lenzen, after signing the deal.
Ever since the landmark deal Iran struck with world powers in Vienna over its nuclear program and the removal of US-led sanctions on its key economic sectors, Tehran has been trying to position itself as a safe investment destination, and dozens of high-profile delegations from all continents have made the trek to the country for securing deals in a race to win a bigger market share in a ban-free Iran.
The deal with ADKL was signed during Garrelt Duin’s visit to Iran, the state minister for economic affairs and energy of Germany’s Nordrhein-Westfalen State.
Accordingly, the ADKL will assist the Masjed Soleyman Petrochemical Industries Company (MSPIC) in providing funds, transferring technology and implementing contracts for the project, within the framework of engineering, procurement, construction and finance (EPCF).
MSPIC is keen on working with European enterprises, the company’s Managing Director Yousef Davoodi told reporters after signing the deal.
The project, to be developed in northern parts of Khuzestan province, will produce urea and ammonia as its key products. The daily production target of each in the first phase will be 3,250 tons of urea, and 2,050 tons of ammonia.