CEO of Takht-e- Jamshid Petrochemical Company, said on the sidelines of the company’s extraordinary general assembly about the capital increase to build the butadiene project: It has been clear for several years that with the construction and start-up of new projects such as Sadaf Petrochemical and Padjam Polymer company, we would face feedstock shortages. For that reason, the preliminary studies for this project were carried out within the company, and it was ultimately approved to be implemented as a development project.
Davood Radmehr said: “Its land was acquired from the special zone adjacent to the complex and preliminary work began. So only the issue of financing remained. Today’s extraordinary assembly was the first step by the shareholders to provide funding, and 260 billion tomans was approved. We expect that at this year’s annual general meeting the shareholders will also allow us, from retained earnings, to carry out a second capital increase.
Regarding reports that the Japanese have been building a butadiene project in Singapore for several years, and asking what strategy Takht-e-Jamshid Petrochemical has for diversifying and securing its market—given that it is also entering Turkey—Radmehr said: We have serious plans to be present in various markets. For example, last year and this year we participated in exhibitions in China, India and Turkey and were able to add new customers in those countries to our existing clients and expand our market. We will continue this work to add different customers in targeted emerging markets, such as African countries, which are on our agenda, to our export portfolio. At the same time, while diversifying export markets, we are working to diversify product grades through R&D and knowledge-based programs and bring them to market.
On whether the company currently exports SBR, he said: We are currently exporting PBR, but SBR exports do not take place because of a directive prioritizing supply to domestic customers. If domestic needs are met, we are permitted to export any surplus.
On the company’s sales revenue of 750 billion tomans in the first 11 months of the current fiscal year—which represents a 65% increase compared with the previous fiscal year—and on the impact of the butadiene project on stable revenue and profitability, the CEO of Takht-e-Jamshid Petrochemical said: First and foremost, the butadiene project will reduce our feedstock supply risk, and in terms of production records we can hope to set new records after the launch of this development project. Also, feedstock price and transportation cost will be reduced because feedstock will be received by tanker, so our overall cost of goods sold will certainly decrease and profit margins will increase. Additionally, it can have a very positive effect both on sales and on the company’s profitability.
