Chinese Bank to Invest in Iran's Petrochemical Projects

Chinese Bank to Invest in Iran's Petrochemical Projects

The agreement was made in the form of a memorandum of understanding (MoU) signed between ICBC and Iran's Petro Saman Zagros Company.

"A sum of 85 percent of the share will be provided by the Chinese bank," local official Heidar Nemati said on Tuesday.

Nemati said that the Iranian partner undertook 15 percent share of the joint venture investment project.

"The development of the petrochemical complex in Mehran city is aimed at setting up a natural-gas-to-polypropylene conversion process," he added.

Nemati expressed the hope that the project would provide jobs for more than one thousand technicians.

In a relevant development in early November, Vice-President of Iran-China Joint Chamber Majid-Reza Hariri said a Chinese company was to make $400 million investment in a project for production of petrochemical catalysts.

Hariri said China is the major purchaser and the best market for Iranian petrochemical products.

He said there is no impediment on the way of Chinese partnership in the catalyst project.

Alike their other international rivals, Chinese companies want to contribute to various Iranian petrochemical projects.

Based on a deal signed between Iran and China, bilateral transactions will by the next 10 years reach 60 billion dollars and the volume of trade will stand at 60 billion dollars on average.

As owner of the highest number of plants worldwide, China is in need of Iranian petrochemicals as basic material for different industries, said the official, adding, "So, there is no problem with sale of petrochemical products to China and major portion of Iranian petrochemical products are exported to China."

Source:Fars