Downstream Industries Development Bureau

Introduction of downstream industries’ development management

• The increasing growth achieved by launching petrochemical projects in terms of the volume and variety of products of these industries has provided a suitable platform for the development of downstream industries as consumers of petrochemical products and complementing the value chain of the petrochemical industry. Development of private sector activity in the downstream field related to oil, gas and petrochemicals and better interaction between upstream and downstream petrochemical industries while creating added value and employment Higher, it provides a better ground for the competition of domestic products in the global markets and strengthens the process of realizing the resistance economy.
• The emergence of the downstream petrochemical industry in the country dates back to the years 1976 to 1971, which mostly started in the form of small workshops consisting of several extruders, to produce household consumer products such as ducts, electrical wires, switches and  sockets.The raw materials of these workshops were mostly supplied from imported PVC, especially from Japan. With the end of the imposed war and the establishment of the units of Bandar Imam Petrochemical Company, with the arrival of domestic polymers, the guilds in Tehran and other cities were expanded, and the relevant unions and cooperatives were formed to coordinate between the units and sometimes to allocate the needs of the units.
• Due to the importance of these industries in the country's economic growth and in line with the development of downstream petrochemical industries, since the beginning of 2002, with the aim of supporting, supporting and directing investment,  the Petrochemical Downstream Industries Development Department has started its activities in the National Petrochemical Industries Company.
• Definition of downstream petrochemical industries
• Industries that use petrochemical products such as feedstock and raw materials and  are small and medium-sized (SMEs) in terms of size  are known as downstream petrochemical industries.
• The downstream petrochemical industries can be classified into the following two categories:

A. Intermediates: In fact, feedstock and raw materials are required for the production of final products, whose production is a priority in order to complete and improve the petrochemical product chain and the production of final products.

B. Consumer Products: Materials that reach the end consumers, such as auto parts, polyethylene pipes and fittings, which can be mentioned in the following category:

1. Plastic
2. Rubber
3. Paint & Resin
4. Combination Fertilizers and Pesticides
5. Chemicals & Solvents
6. Fibers & Textiles
7. Cosmetics
8. Composite
9. Medicines & Medical Packaging

• Petrochemical Downstream Industries Development Management Mission

Policy making and facilitation in order to complete and improve the value chain of petrochemical products based on the horizon of the development of the petrochemical industry

• Objectives of Petrochemical Downstream Industries Development Management
• Developing strategic plans for the development of downstream petrochemical industries
• Improving the business environment in the ecosystem of small and medium-sized petrochemical industries
• Supporting investment in downstream petrochemical industries
• Pathology of downstream industries and planning for maximum use of existing capacities
• Attracting and directing investments by providing technical, market and economic information
• Creating interaction with the relevant agencies and attracting their support to the downstream petrochemical industries
• Identify and introduce business opportunities
• Market Development and Introduction of New Markets
• Balanced development with a focus on eliminating deprivation in less developed and deprived areas
• Facilitating the investment process through the establishment of coordination between the relevant organizations
• The most important tasks of the downstream petrochemical industries development management
• Policy making:
• Cooperating in the formulation and implementation of plans for the integration of the organization's macro and micro policies in the upstream, midstream and downstream fields of petrochemicals in line with the goals of sustainable development of the organization and the country
• Cooperating in the formulation of strategic and executive plans of petrochemical as a development organization in the field of downstream petrochemical industries in order to complete the value chain of petrochemical products and gain domestic and foreign target markets.
• Coordination and cooperation with the Ministry of Oil, the Ministry of Industries, Mines and Trade, Customs, Stock Exchanges, Petrochemical Companies, Downstream Manufacturing Companies, Petrochemical Distribution Cooperatives and Unions to propose and follow up on the approval of laws, laws and legal notes as well as their implementation
• Studies and Designs:
• Supervising the preparation and compilation of technical-economic evaluation reports of downstream petrochemical production projects and other studies related to this field in order to update the existing technical and commercial knowledge
• Industrial, geographical and native study and monitoring of the country in order to investigate the potentials in the establishment of industrial parks, petrochemical parks in order to complete the value chain of petrochemical products and the development of industrial clusters and provide consulting services in this field
• Proposing and following up on providing the necessary facilities and incentives in order to encourage domestic and foreign investors to invest in the field of downstream petrochemical industries
• Providing consulting services regarding the export and export destinations of downstream petrochemical products
• Facilitation in the updating and development of technologies of production units in order to guide the downstream petrochemical industries to the knowledge industries
• Regulation of the Petrochemical Products Market:
• Announcing the basic price of petrochemical products and submitting a report to the Commodity Exchange and Customs
• Determining the supply floor of petrochemical products in the commodity exchange in order to maintain market stability and supply of feed to downstream petrochemical production companies, and monitoring and following up on the accuracy of its implementation and correspondence with judicial authorities and violating companies.
• Coordination with petrochemical companies in the conditions of overhaul and suspension of production in order to meet the needs of the market
• Supervising the distribution of petrochemicals and supplying domestic needs in addition to verifying the accuracy of the distribution process
• Petrochemical and Materials Produced in the Downstream Industries Market Analysis
• Informing the downstream petrochemical industries of the repair stops
• Determining the specifications and specs of petrochemical products to provide new grades in the commodity exchange, as well as identifying the grades required by the downstream industries market as well as the global market, and submitting proposals to petrochemical complexes.
• Responsibility of the Secretariat of the Petrochemical Specialized Committee
• Facilitation:
• Coordination and cooperation with distribution cooperatives, unions, the Organization for the Administration of Non-Governmental Specialized Estates and Downstream Industries and other relevant bodies to facilitate the distribution of petrochemicals and production in downstream industries
• Facilitation in the supply of feed, technology, technical knowledge, export and trade of downstream petrochemical industries
• Updating and coordinating the system, creating intelligent systems and using artificial intelligence
• Benefit of development of downstream petrochemical industries:
• Preventing crude sales, increasing non-oil exports and realizing a resilient economy
• The ability to create in the country and the factor of escaping population and industrial concentration
• Creating high added value
• Contributing to the equitable distribution of wealth in the country
• Helping to increase the national security factor, especially in the border areas
• The engine of the country's economy
• The need for less financial resources for investment compared to the upstream and midstream industries
• High rate of return on investment compared to basic and intermediate petrochemical industries
• Ability to develop downstream industries beyond borders, especially in the countries of the region
• A suitable platform for attracting foreign investment, especially the capital of Iranians abroad, as well as small capitals stranded in the country
• Developing and strengthening associations at the national level
• Very high job creation with low cost compared to high cost of basic and intermediate petrochemical industries
• The existence of cheap labor force and talented graduates looking for jobs in the fields related to the country's downstream petrochemical industries
• A suitable platform for production outside the factory using the potential of home businesses
• Simple and obtainable technical knowledge of the upstream petrochemical industries and spending a short time for installation and commissioning of downstream industries plants
• Very limited volume of required ancillary services such as (water, electricity, steam, etc.)
• Confronting the conditions of sanctions through exports without interception and the need for bank credit lines
• The development of petrochemical-related industries, including automobiles, construction, etc.
• Taking advantage of the existing potentials of regional markets
• Diversity taxes include manual, plastic, lustick, color and razor, chasbe, composit, shovinda ha and...
• Comparative advantage in access to some of the required raw materials in the country
• Much less pollution of these industries compared to other manufacturing industries