Iran – Lifting of sanctions could drive growth in the Iranian plastics industry. The sanctions refer to certain economic sanctions imposed on Iran that were lifted in January 2016, thereby opening doors to trade and opportunity.
Many companies were laying the ground-work for their expansions back in 2015. However, boasting large automotive, construction and rigid packaging markets, as well as significant sectors for other industry segments, together with a youthful population of over 80 million and improving GDP growth, the business opportunties for plastics processing in Iran remain substantial.
• Capacity for 1 million + vehicles
• Building and infrastructure account for 23% of polymer demand
• Packaging projected to grow
Iran has the second highest polymer demand in the region, at just over 3 million tonnes, as well as, the second largest market for engineering thermoplastics. Both of which are expected to expand following the lifting of economic sanctions. The automotive sector, whilst only consuming 2% of polymer demand in the country, accounts for 10% of its GDP. Manufacturing approximately 1 million vehicles in 2015, which is anticipated to grow over the coming years, there is plenty of reason to believe that the plastics industry supporting the automotive market in Iran will expand, according to Applied Market Information Ltd. (AMI).
AMI says such positive forecast is the same for packaging. Rigid packaging accounts for just under a fifth of polymer demand. Consumer packaging has increased capacity in response to a growing trend towards organised retailing and supermarket shopping whilst industrial packaging is expected to grow in response to improving logistics to serve the retailing industry and the growth in polymer manufacturing.
Despite the potential of the Iranian plastics industry, discovering opportunities for investors outside of the country is a huge challenge. Information on the players in the industry is not readily available. AMI has just released its first, unique, Database of Plastics Processors in Iran, providing information on over 300 processing sites. This database provides address, contact and production information on moulders, extruders and compounders in Iran.