CEO of Hemgan Petrochemical

All urea produced in the country should be exported as a unit and under the Iranian brand

Competition of urea manufacturers for export is detrimental to national interests

But he noted that with the synergy that took place between urea producers, the exports to Europe, Africa, and South America. He said the policy must be strengthened

Gholamreza Jamshidi, the CEO of Hemanga Petrochemicals, has said the first phase of Hengam Petrochemicals has reached production after 17 years, and the opening of the first phase has been accomplished.

According to him, so far 25 ammonia ships have been exported, which has earned almost 75 million dollars. He also noted that for the first time, the company has entered the Indian market, which has good potential. This was done through the Persian Gulf Trading Company, which sells petrochemicals of the PGPIC. He also noted that the price of ammonia is a very good price and needs to be one to maintain this trend. He said the 2^nd phase of the project will be inaugurated by the end of the year.

With regards to clearing the claims of urea producers by handing over the shares of state companies, he noted that the proposal has been made to the government and parliament members based on previous experiences. He further noted that bartering with gas feed and fuel was not possible since gas prices are based on subsidies. He said the issue of transferring shares of government to urea producers is under consideration.

He said another issue under consideration is plans by the government to reduce its 50 thousand billion tomans debt to urea producers because if no action is taken, the amount of debt will be heavier in the future. He also called for a fundamental solution to this crisis, which includes trading urea in commodity exchange like other petrochemical products.

With regards to the dumping of urea products by some Iranian and Russian companies, he noted that previously almost 80% of Iran’s urea was re-exported through Turkey and 20% of it went directly to other places. But he noted that with the synergy that took place between urea producers, the exports to Europe, Africa, and South America. He said the policy must be strengthened.

He noted that when a company sells its products cheaper than the market price, other companies will also be negatively affected because it lowers the minimum price. That’s why the company should try to bring back the markets and eliminate domestic competition with internal synergy.

Source: Hengam Petrochemical Department of Public & International Affairs