Guildford, United Kingdom -- Iran’s PU production could reach 200kT/year within five years according to UK-based research organisation Labyrinth Research and Markets.
The report estimates that PU production declined during the current Iranian year – which ends during March 2016 - to just over 125kT, but with investment production could easily reach 200kT within the next 4-5 years, it added.
“Overall, the Iranian economy can be seen as similar to the Turkish economy plus oil but minus political stability. If Iran can be reintegrated into the world economy and stability restored, it is possible that Iran’s polyurethane demand can easily double to approach that of Turkey,” said Labyrinth Research & Markets director Angela Austin.
Unlike other economies, Iran already has sufficient manufacturing capacity in most sectors from the pre-sanction era to meet demand in the near future. There are at least 70-80 polyurethane processors established in Iran ready to start production, the report said.
It added that the country is well-placed to become a Middle East/South West Asia manufacturing hub as the region’s raw material capacity – especially Dow and Saudia Aramco’s Sadara complex in Saudi Arabia can support Iran’s PU industry,
PU will be needed for cryogenic insulation associated with the country’s plans to build new 4 LNG terminals, with potential demand for PU binders from the composite wood panel industry the report added.
Residential and commercial insulation, furniture and bedding, footwear and protective coating are also expected to be PU market drivers.
The World Bank foresees a recovery driven by oil production over the next 2-3 years with GDP growth in the range of 5-7%. Iran’s 5-year plan has an 8% target growth, the report said.
To buy a pdf copy (£1,000) of the report email Angela Austin at: [email protected]