Mohammad Javad Badri, CEO of Takhte Jamshid Petrochemical Industries Company, has highlighted several issues, including new production, sales, and profit records, despite the increase in overhead costs. He said 2024 was a good year for the company. According to him, the company increased its sales from 3200 billion tomans in the previous fiscal year to 5300 billion tomans in the fiscal year 2024. It also had very good coordination in sales with other producers in Shazand Petrochemical and Bandar Imam Petrochemical.
Badri referred to the production sector and said the company has been able to focus specifically on its supply chain and improve it. He further added that this year, it was able to record an eight-month production record, and in Farvardin (March-April2024), the monthly production record was broken with 8,200 tons. In addition, the net department took very good measures, and it managed the overhaul time, all of which were thanks to coherent planning in the production, sales, and other components of the company.
Regarding the decrease in butadiene rubber elastomer (SBR) exports last year and the decrease in production and increase in polybutadiene rubber (PBR) sales, the CEO of Takht Jamshid Petrochemical said the 1712 SBR grades produced by the company are mostly domestic and not for export. Therefore, its policy should be to move from production-oriented to customer-oriented and commercial-oriented. He said it is examining the suitable markets and grades. Given that Takht Jamshid Petrochemical has the ability to produce various grades, this year it moved towards producing grade 1502, which will also improve exports. The domestic and export market for Takht Jamshid PBR has a good market, which is why it had better exports, but its best effort is to maintain the export market while giving priority to supplying the domestic market. For this purpose, it has the production of various grades in the work plan.
Regarding whether the target of achieving an operating income of 7.1 thousand billion tomans in the fiscal year 1404 will be possible given the company’s bottleneck in sustainable feed supply, Badri stated that it will definitely have problems in supplying feed, but the feed suppliers have had good cooperation with the company, for which he thanked Amirkabir Petrochemical and Jam Petrochemical. With the planning, the export sales rate was $1,100 per ton last year, and it is $1,500 this year. He expressed hope that the projected operating income for the current fiscal year will be achieved very easily.
He also referred to the profitability of the strategy of diversifying the export market and decentralizing from the Chinese and Indian markets to Turkey and said the company cannot be successful if it is not present in the target markets. The main focus of TJPC’s market was China, with 70 percent, which has its own problems. The second place was allocated to India. It also had a minimal amount of exports to Turkey. Right now, its entire focus is to increase the share of the Turkish market, and that’s why it attended the late Plast Eurasia exhibition 2024 in Istanbul, had very good meetings and negotiations, and signed good contracts, the effects of which will be seen after the exhibition in the improvement of the Turkish market. Considering those other players, such as Russia, are present in the Turkish market, the company must try to reduce its impact and make its presence more prominent. For example, its netback may differ slightly from another netback, but its policy is to have export market share at any cost, and it is not logical to focus on just one market and not consider its risks.
Regarding the latest construction status, investment, and return on investment of the TJPC’s Butadiene Project, Badri noted that the butadiene project is very vital for Takhte Jamshid Petrochemical and has $52 million in financing, and its early work has been completed, and the major shareholder is making every effort to put it into operation in the shortest possible time. According to him, the tender has been held, the tender package work has been completed, and the company has set up a focused team to put this project into operation in the shortest possible time.
About this project, he said that it has two methods of return on investment, and since it has a 37% return on investment rate, it is very good for the country to pursue the butadiene project seriously. Regarding the company’s receipt of the Environmental Conscientiousness Award, the CEO of TJPC’s said Iran cannot pursue development without paying attention to the environment. Therefore, development must be sustainable. Badri said he put the environmental approach and sustainable development among the top priorities, and good measures have been taken. The wastewater treatment unit of Takhte Jamshid Petrochemical in the Mahshahr special zone is unique, but the company is not satisfied with that, and it will have a plan to return this water to the complex. As a result, the Department of Environment also sees these measures and awarded the Environmental Conscientiousness Award to Takhte Jamshid Petrochemical.
