Due to U.S. sanctions that blocked Iranian plastics supplier, the National Petrochemical Company (NPC), from exporting plastic products to the American market, the company has shifted its focus toward expanding into markets in Asia, Africa, and Europe. In response, NPC has accelerated the launch of several major plastic production projects, positioning Iran as the second-largest thermoplastic producer in the Middle East after Saudi Arabia. Despite currently facing overcapacity in the plastics sector, NPC remains committed to increasing its production capacity significantly. By mid-2006, the company aims to reach an annual output of 770,000 tons, covering a wide range of plastics such as HDPE, LLDPE, LDPE, PP, PS, ABS, and epoxy. Looking further ahead, by 2008, NPC's planned new projects are expected to boost total thermoplastic production by nearly tenfold, reaching 7 million tons per year. One key development is the 50% joint venture between NPC and South Africa’s Sasol Corporation. This partnership will construct facilities capable of producing 300,000 tons per year of high-density and medium-density polyethylene, as well as 300,000 tons per year of low-density polyethylene. These projects are set to begin operations in the second half of this year, with additional plastic production units related to the initiative expected to come online between now and 2008. This expansion reflects NPC’s long-term strategy to strengthen its global presence despite ongoing trade restrictions.

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