Iran has achieved a major milestone by exporting polymer products to South America for the first time, marking the culmination of over a decade of strategic efforts. While initial discussions on tapping into the South American market began in 2011, it wasn’t until 2024 that these ambitions materialized into actual exports.
Previously, Iran’s exports to the region were limited to chemical fertilizers. The move into polymer exports signals a notable shift in trade strategy and is expected to positively impact profit margins within the country’s petrochemical sector. Targeted marketing campaigns in countries such as Brazil and Argentina had been laying the groundwork for this expansion.
This breakthrough follows years of investment in Iran’s petrochemical infrastructure and a significant scaling-up of production. In particular, the polymer industry—led by products like polyethylene—has seen considerable growth, gaining traction in global markets and now securing a foothold in South America.
The global polymer market is expanding rapidly, and Iran is positioning itself as a significant supplier, leveraging its abundant petrochemical resources, cost-effective pricing, and growing production capacity. Iranian polymer compounds are increasingly utilized across a range of industries, including packaging, automotive, construction, healthcare, and electronics.
Iran exports a significant volume of polymer compounds to international markets, particularly to Asia, Europe, and the Middle East. Countries such as Turkey, India, China, the UAE, and European nations rely on Iranian polymers.
Iran’s exports of masterbatch and polymer compounds doubled in the past Iranian calendar year, which ended on March 19, 2024.
The sector’s production capacity reportedly stands at five million tons, with 500 manufacturers, including over 100 knowledge-based companies.
The CEO of Aryasasol Polymer Company, Mohammadreza Heydarzadeh, announced in February that the company has doubled its export reach, expanding from 16 countries in 2022 to 32 countries, driven by a shift toward direct sales.
Speaking at a briefing, Heydarzadeh reviewed the company’s performance over the past three years. He reported that Aryasasol’s production rose from 1.784 million tons in 2022 to a record 1.961 million tons by the end of March 2024—a 3% increase. He projected that this record would be surpassed by the end of the current year.
In the Iranian calendar year 1402 (ended March 2024), the company saw a 5% increase in sales volume, reaching 1,163 tons. Sales revenue surged by 23% to 338 trillion rials, marking the highest in the company’s history. By January 19, the end of the first 10 months of the current Iranian year, sales revenue had already reached 383 trillion rials—a 41% increase year-over-year.
Heydarzadeh also noted a 5% growth in operating profit, accompanied by a corresponding 5% rise in net profit.
Looking ahead, the CEO emphasized the company’s strategic focus on completing key developmental projects, particularly the construction of a new high-density polyethylene (HDPE) unit. Launched in 2020, the project had achieved just 18% progress by the end of 2021 (Iranian year 1400), but has now surpassed 50% completion. The company aims to finalize the unit by September 2026.
Key equipment for the project, including extruders, has already been ordered. Heydarzadeh explained that the new unit will allow Aryasasol to stop exporting raw ethylene and instead process it in-house. The company also plans to utilize excess ethylene from other petrochemical plants. Once operational, the new facility is expected to generate an additional $100 million in annual profit.
