Economy Society Environment

As a confident sector in a stable country, the Iranian petrochemical industry offers an attractive investment package for partnership

Economy, society and the environment. By most advanced definitions, these are
the three interdependent pillars of sustainability. Nations do business in and out of their countries to enhance their economy. Now how far will they go to serve their ethical values? Are they correctly exploiting the resources? How concerned are they about the interest of future generations? What importance do they attach to transfer of technology? Is the environment preserved through industrial growth? What is their interpretation of "sustainable development"?

A definition of sustainable development put forward by the United Nations World Commission on Environment and Development in 1987 states: "Sustainable development meets the needs of the present without compromising the needs of future generations."

In the industrial world, actual progress toward implementation of this concept is no easy task. This is due to the simple fact that translating sustainability to the business world has proven to be quite challenging. The challenge is more critical to industries that deal with national assets such as oil and gas reserves. The petrochemical industry is one example.

Sound business decisions and systematic technical progress are currently required by all petrochemical companies; one of them is no longer enough. The world is becoming increasingly aware of an economic growth that does not deplete irreplaceable resources, does not destroy ecological systems and helps reduce some of the world’s social inequalities. There is a pressing need to focus on emission reduction, resource conservation, and financial strength.

Here is an industry that mostly runs on feedstock provided through the exploitation of natural gas resources. At the same time, it essentially requires progress in technology associated with environmental protection measures. It is expected to diversify exports, bring further revenues and create more jobs. The business, industrial, environmental, social and cultural aspects are all involved.

In some countries in North America and Western Europe, the petrochemical industry is mature enough to be export-dependent. But from now on, they will not only be exporting petrochemicals to customers, but also petrochemical expertise to partners. Through international developments, the petrochemical industry has not been an island. Expertise and raw materials will no longer be two individual sides of the give-and-take story. Governments and companies are now presenting their competitive advantages in form of attractive packages. Transfer of technology, long-term commitment, financial strength, project procurement, on-the-job training and expert advice are on one side; and abundant feedstock, cost-effective energy, inexpensive workforce, ideal location, tax holiday and easy market access are on the other side.

Such examples of partnership and cooperation can best take place between regional and neighboring countries. It will serve nobody’s purpose to develop the same technology to manufacture the same products for export to the same markets. This case holds true particularly in the Middle East where the Iranian petrochemical industry continues strategic planning for an ambitious growth.

To the world’s amazement, war and economic sanctions strengthened Iran’s petrochemical industry. With customers in China, India, Indonesia, Japan, Korea, Malaysia, Singapore, Taiwan, the Philippines, Vietnam, Germany, Italy, the Netherlands, Turkey and the U.A.E., the Iranian petrochemical industry intends to increase its share in the country’s GDP while diversifying non-oil exports. As a confident sector in a stable country, the Iranian petrochemical Industry offers an attractive investment package in return for a mutually beneficial partnership.