Introduction

Polypropylene Plant
Investment opprotuinty ,Polypropylene factory, Asalueyh industrial zone,Capacity 480000mt/year,400000 squar meter, Total Capital 870 Billion USD,Payback 2-3 Years
Investment on establishing plant for producing polypropylene which will be produce raw material for plastic industries 
Investment on Polypropylene Plant in Iran

One of biggest holding companies in Iran with more than 50 factories and various investments is going to establish a big refinery for producing polypropylene raw material in Asaloyeh .
Title of Project  
Production of Polypropylene via Propane Dehydrogenation Process (PDH to PP)
Annual Capacity 
480,000 ton/Yr (Based on 450,000 Tons/Yr Propylene) 
Product Applications 
Injection Molding (33%), Film & Sheet (24%), Raffia (19%), Fiber (13%), Pipe & Extrusion (3%), Coating Extrusion (1%), Blow Molding (1%), Other (6%) 
Main Raw Material  Propane
Raw Material Source Production via PDH Process 
Land Area  400,000 Square Meters 
400,000 Square Meters 190 Employees
Date of Studies Q-1,2017
Total Fixed Capital with Loan 870 BILLION USD
Payback Period  (without discount rate) 2 Years
Payback Period  (with discount rate)  3 Years

According to the latest reports, as presented in the following graphs, although Iran’s proportion of world proven oil reserves is 9.4% and world proven gas reserves is 16.4% , Iran’s share percentage of total world petrochemical production is just 2.16% (in 2013). 
Fig (3) World production of petrochemical products 2013 (thousand metric tons) 
Iran has rich hydrocarbon resources and the development potential of petrochemical industry is higher than the current progress.  
In addition, it is noteworthy to take other advantages of investment in Iran’s petrochemical industry into account which, include available hydrocarbon resources closed to sea in the south of the country and available infrastructures to develop petrochemical industry in south offshores. 
Such advantages lead to an access to regional and international markets. Therefore, this factor results in reducing shipping costs of products which leads to an increase in financial and economic efficiencies of investment in Iran.  
For the development of investment in Iran’s industry, development of petrochemical industry is the projected goal.  
1-2- Reason of development in propylene chain.
According to the information provided by the SRI institute, share percentages of raw materials production for petrochemical industry in the world are presented in the following graph. 
Propylene is one of the main basic raw materials and its production share is 14% of total basic raw material production in the world petrochemical industry. 
Fig (4) Share percentage of basic raw materials in the world petrochemical industry 
production of propylene is 5% of total production of basic raw material in Iran’s petrochemical industry. 
Fig (5) Share percentage of basic raw materials in Iran’s petrochemical industry 
Propylene chain is one of the chains with high potential for the development of the petrochemical industry in comparison with other chains and its share of production in Iran is much lower than the global average. 
On the other hand, because of limited production of polypropylene in Iran and problems of external supply for downstream units, development of downstream units is limited (in spite of existing demand). In other words, the potential of development in downstream units in current situation is significant. 
It is also noteworthy that, it is predicted that global consumption of propylene will increase 6.4% annually by 2019, which represents the global approach in the development of downstream links of propylene chain. Therefore, propylene chain would be the selected chain for the development of Iran’s petrochemical industry. 
1-3- Reason of selecting polypropylene for the development of propylene
chain 
According to global information, international trade of propylene is just 4% of its production which represents that global approach in the development of propylene chain is planning simultaneously for developing downstream links in the place of production. Furthermore, according to the information published by SRI institute in 2014, about 64% of total propylene produced for chemical uses worldwide went into the manufacturing of polypropylene resins.  
Global consumption of propylene for polypropylene product

Global consumption of propylene for polypropylene production is projected to increase at an average rate of 5% annually over the next five years, which is the highest growth rate among the various applications. 
The following table represents growth rate of propylene consumption for polypropylene production and polypropylene consumption growth rates in different regions of the world by 2020. 
1-4- Polypropylene trade analysis
In current situation in domestic market, there are six plants with 1055 thousand metric tons total capacity, producing polypropylene and with 77% operation rate they produced 812 thousand metric tons in 2014. 
660 thousand metric tons consumed in domestic market and the rest exported to Korea, China, Turkey, and other regions of the world. It is noteworthy that, during 2014, 36 thousand metric tons of propylene were imported to Iran. It is forecasted that by 2020, 800 thousands of metric tons of new propylene production capacity will be brought on-stream and supply will be 600 thousand metric tons higher than domestic demand, so focuses should be on sell of export market. 

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Specification of Polypropylene Plant