The annual general assembly of KPIC was held on Saturday, July 11, 2025 at the Olympic Hotel in Tehran. In this meeting, Zahir Heydarinejad, CEO of Kermanshah Petrochemical Industries Company, presented the company’s performance report for the fiscal year ending March 20, 2025. He also presented the production performance, sales, financial measures, Phase 2 project, ongoing projects, and other important measures taken in the fiscal year to the assembly in a comprehensive manner.
The CEO of Kermanshah Petrochemical Industries Company stated that last year, due to various reasons including the drop in the global price of urea, repairs and overhauls, and problems with gas outages, the petrochemical company was unable to operate at its full potential and satisfy its shareholders as it should. He noted that the first three months of spring 2025 showed that the company is back on track and next year the conditions will be completely different from last year. He said the 60 percent increase in the company’s revenue this spring compared to last year and the 40 percent increase in production this spring compared to last year show that the company has a different year ahead.
He noted that if the recent increase in urea prices is added to the increase in production and the company’s activity on the roller coaster, a very good trend can be expected for the company’s performance in 2025. He also referred to the 12-day aggression of the Israeli regime and the suspension of production of the largest urea producer in western Iran and said with the efforts of the employees at Kermanshah Petrochemical Industries Company, the complex was able to record a jump in production in the first quarter of 2025 compared to the same period last year.
Accordingly, in the first three months of this year, the cumulative production of urea and ammonia reached 265,000 tons, with urea production increasing from 167,000 tons and ammonia production increasing to 100,000 tons. Urea production increased by 38 percent compared to last year, and ammonia production increased by 43 percent. The CEO of KPIC said the important point about the jump in production of Kermanshah Petrochemical Industries in the first quarter of 2025 is that the production-to-capacity ratio increased by 138 percent. He said this ratio for the ammonia unit increased by 143 percent. At the annual meeting, Heydarinejad stated that last year, with 102 days, the record for gas outages in Kermanshah Petrochemical Industries was broken. He noted a 45 percent decrease in the net profit of this petrochemical company in the fiscal year 2024-2025, and said last year, feed gas supply decreased by 23 percent, but the price of feed gas increased by 56 percent.
The CEO of KPIC cited the high price of feed and the 14 percent increase in the cost price affected by the increase in gas prices as one of the most important reasons for the 45 percent decrease in net profit. He added that the average price of urea exported last year decreased from $348 to $310. And at the peak of the world price, gas was cut off for 102 days in the company. He said the export share to Turkey increased to 35 percent last year and noted that in addition to Turkey, Iraq, Kuwait, Jordan, Thailand, and Armenia are other export markets.
Regarding the latest status of the construction of the second phase of KPIC’s Development Plan, Heydarinejad stated that the progress of this plan has reached 82 percent and that if financial resources are provided, it will be ready for operation by the second half of the next year. He said sustainable supply of gas feedstock and the electricity deficit of the national grid are the most important challenges facing this urea and ammonia production plan if it is operated. The CEO of KPIC stated that one of the problems facing the construction of this plan is the power outage in the country’s industrial towns and added due to the power outage in the industrial towns, many manufacturers are unable to build equipment according to the schedule.
He also referred the signing of a contract with a consultant to implement the Kermanshah urban wastewater treatment and recycling project with the aim of replacing water resources and said the project’s sustainable electricity supply is also facing challenges due to the 25,000 MW deficit. This has led to the construction of power plants. Heydarinejad also referred to the issue of drought and water challenges in the country and announced the implementation of water consumption optimization projects in the company. According to him, the water consumption recycling project and the Kermanshah province urban wastewater utilization project are forward-looking projects to ensure the continuity of the company’s activities and the possibility of future developments with the aim of providing sustainable water resources.
The CEO of Kermanshah Petrochemical Industries Company mentioned the company’s self-sufficiency committee as one of the best self-sufficiency committees of petrochemical companies and added by strengthening this committee and the Research and Innovation Center and launching the Domestic Development Engineering Department the company succeeded in providing over 5,200 maps of 12,000 industrial equipment using reverse engineering. He said the company has contacted about 200 domestic manufacturing companies and is in the process of localizing the equipment. This, he said, would strengthen domestic manufacturers.
