Iran, Good Partner for Foreigners
It would be no exaggeration if we say that Iran is among top countries in the region in the plastic industry. The growth of companies involved in this sector and their efforts to win bigger shares of global markets have led foreign companies to show interest in cooperation with Iranians.
At this year’s "Iran Plast", what was marking was the foreign companies’ trust in Iranian companies for business and trade. They described Iranian companies as reliable and honest partners, saying Iranian companies were supplying highest quality plastic products all across the region.
At "Iran Plast", the number of foreign companies was lower than last year, but Iran’s relative advantage in the energy sector could not be ignored easily by foreign companies. It becomes specifically important in the plastic industry, in which Iran claims to be a front-runner.
The presence of 15 business delegations from 13 countries, as well as individual visits by foreign investors indicate that involvement with Iran’s polymer and plastic industry would remain economical for foreign companies. That comes against the backdrop of threats by US President Donald Trump to foreign companies to stop doing business with Iran under the penalty of sanctions.
Most foreign companies interviewed by "Iran Petroleum" touched on the high quality of Iran’s plastic products. For them, Iranian companies are producing one of the best polymer and plastic products across the region. They noted that there were still mechanisms for sustainable cooperation between Iran and foreign firms despite attempts made by the United States to drive Iran out of energy market.
Interbanking Network a Must
The marketing manager of a Turkish company said he was happy with the level of cooperation with Iranian firms. He said a bright horizon was awaiting Iran’s plastic market, noting that he was interested in broader cooperation with Iranian companies.
The chief of Turkish exhibitors at Iran Plast said the reason for the participation of Turkish firms resulted from increased Iran-Turkey trade exchanges.
He expressed hope that Iran and Turkey would bring their trade exchanges to the highest level possible in coming years.
He said that removing foreign exchange rate fluctuations creating an interbanking network between the two nations, trading in the Turkish and Iranian currencies and removing customs hurdles would help facilitate Iran-Turkey business. He insisted that the US was alone in imposing sanctions on Iran.
Abbasev Aleskarovic, who represented a Turkmen company at Iran Plast, said broadening business ties with Iran would be of high significance.
When asked to explain why cooperation with Iran had taken up added importance, he replied: “It’s crystal clear. Iranian plastic industrialists and Iran’s market are reliable for us. Iranian companies are supplying high-quality products. That is why due to Iran’s relative advantage in the energy sector, their prices are appropriate for us.”
Iran, KRG First Choice
The chief delegate from the Kurdistan Regional Government (KRG) referred to the high quality of Iranian plastic products, saying: "Iran is unique in terms of manufacturing plastic industry products, particularly raw materials, across the region."
The Kurdish industrialists receive raw materials for their plastic products from Iran. According to them, Iran remains their top priority for raw materials they need in their disposable vessels.
Asked if they could also import raw materials from other countries, he said: "Sure we can, but the Iran market has so far been our only reliable market and we prefer cooperating with Iran."
He also highlighted some problems causing difficulties in the purchase of raw materials from Iran.
"Among obstacles currently in the way are the changing price of raw materials, fluctuations in rapid succession and subsequently unpredictable increase in the price of materials," he added.
Reliable Partners for Germans
A total of 17 German companies active in the field of plastic industry machinery and parts, were present at this year's "Iran Plast". Ina Vettkötter, affiliated with the plastic and rubber sector of Germany's Mechanical Engineering Industry Association (VDMA), said German companies would remain highly willing to cooperate with their Iranian partners.
"The Germans have reliable partners in Iran," said Vettkötter, who was also chief coordinator of German exhibitors at "Iran Plast".
"Owing to growing demand in the Iran market for plastic products, young and educated manpower have led the Germans to consider the Iran market as burgeoning," she added.
Vettkötter said that despite attempts made by the United States in recent months to scare foreign investors away from Iran, the European Union continues to respect Iran's nuclear agreement with six world powers, known as the Joint Comprehensive Plan of Action (JCPOA). The US pulled out of the JCPOA in May.
"Despite the US JCPOA withdrawal, the agreement remains alive and the EU backs investment in Iran," she said.
Asked how German companies would behave to overcome restrictions slapped on Iran, she expressed hope that the German government and the EU would close ranks in a bid to take effective steps for facilitating ties and serving public interests.
The representative of a German company present at the event said the main idea was to further know Iranian companies involved in raw materials production and export.
He noted that there were also foreign companies seeking non-oil transactions and business with Iran.
Technology-Based Firms
Italian trade commissioner in Tehran Augusto Di Giacinto said most Italian companies present at "Iran Plast" were technology-based ones.
Di Giacinto, who had organized the participation of Italian exhibitors at "Iran Plast", said Italian firms were ready to share their cutting edge technology with Iranian petrochemical industry in a bid to help Iran reach its export objectives.
"With the removal of obstacles in the way of banking transactions and money transfer, we hope to be able to facilitate ties between the two countries," he said.
Bhavin Vora, who heads the Indian exhibitors at the exhibition, said nearly 40 Indian delegates representing producers, importers and consumers of plastic and polymer were present at "Iran Plast" this year.
Referring to cooperation between Iranian and Indian companies, he said: "Iran's access to abundant hydrocarbon reserves has helped boost relations between Iran and India."
He said that Iran-India cooperation for developing Chabahar Port was aimed at deepening trade ties between the two nations.
Hyung-June Joo, foreign trade director at South Korea's Smajin Polytech, expressed hope that his company would be able to share technology with Iranian firms.
"We are well aware of potentialities in Iran's market and we need to maintain our contacts with the market in this country in a bid to benefit from future cooperation," he said.
He added: "In the future when ground would be paved for cooperation between us and the Iranian side, we will be able to study plans for the transfer of technology and training staff."
No Intention to Cut Iran Ties
A large number of European and Asian private companies that have entered Iran's polymer and plastic industry in recent years are happy with their cooperation with Iranian companies. When asked about the impact of US sanctions, they say they have no intention of cutting cooperation with Iran, citing the attractiveness of Iran's market.
Rudi Scheman, director of exports at a Swedish company, said his company had two representative offices in Iran.
"Sanctions may cause such problems as foreign currency fluctuations and make money transfer difficult; however, we will be present at the Iran market regardless of US pressure," he said.
Jean-Clause Girgenti, manager of trade development at a French firm, expressed hope that transfer of technology and equipment to Iran would face no US-led obstacles so that "our presence in Iran's petrochemical industry" would be strengthened more than ever.
"Political tensions and US-led pressure have caused problems for working at Iran's market. But we follow the French government's rules and regulations for external cooperation and I firmly believe that the current situation will change soon," he said.
Merlijn van Essen, sales manager at Austrian PureLoop (Erema Group), said Erema was one of the most reputable companies in plastic recycling. Erema Group has been present at "Iran Plast" from the first edition.
Referring to restrictions imposed by the US on doing business with Iran, he said: "The Iran market enjoys numerous potentialities and I hope for a bright perspective in our cooperation with the Iranian party."
Yannis Haritakis, export sales manager at Greece's PLASTIKA KRITIS S.A., said: "We are one of customers of Iran's petrochemical industry. Our minimum expectation from the Greek government is to bring back ties with Iran to the past levels."
The representative of China's Ruigao Machinery Factory said his company had markets mainly in the Middle East – Iran, Lebanon and Saudi Arabia – and South America –Argentina and Brazil.
"US sanctions could not hinder cooperation between Chinese companies and the Iranian side. I personally believe that a brighter horizon will open for Iran's petrochemical industry by the end of the year," he said.
"In addition to transfer of technology to Iran's petrochemical producers, we are willing to hold training courses for the staff," he added.