Due to U.S. sanctions that blocked Iranian plastics suppliers, particularly the Iranian National Petrochemical Corporation (NPC), from exporting plastic products to the American market, NPC has been actively seeking new international markets in Asia, Africa, and Europe. In response, the company has accelerated its efforts to expand production and diversify its customer base. To meet growing global demand, NPC has launched several key plastic production projects, positioning Iran as the second-largest thermoplastic producer in the Middle East after Saudi Arabia. Despite current overcapacity in the plastics sector, NPC remains committed to increasing its output significantly. By mid-2006, the company aims to reach an annual capacity of 770,000 tons, covering a wide range of plastics such as HDPE, LLDPE, LDPE, PP, PS, ABS, and epoxy. Looking ahead, NPC plans to scale up its operations even further. By 2008, new projects are expected to boost total thermoplastic production to nearly 7 million tons per year—almost tenfold compared to previous levels. A major development is the 50% joint venture between NPC and South Africa’s Sasol Corporation, which will construct facilities capable of producing 300,000 tons per year of high-density and medium-density polyethylene (HDPE/MDPE) and another 300,000 tons per year of low-density polyethylene (LDPE). These facilities are set to begin operations in the second half of the year. Additional plastic production units linked to this project are scheduled to come online gradually from the end of this year through 2008, further solidifying NPC’s position as a major player in the global plastics industry.

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