Hyosung Corp signs MoU with Iran petchem firm
17 April 2017
South Korea-based Hyosung Corp, a leading chemical and textile company, has signed a memorandum of understanding (MoU) with Iran's state-run National Petrochemical Company for setting up a polypropylene (PP) plant in Iran.
The South Korean company said that it has been in talks with its Iranian counterpart to determine the feasibility of a PP business in the country, but has not made any conclusion yet, added the Iran Daily News report, citing pulsenews.co.kr.
Industry experts expect Hyosung, looking to expand its offshore manufacturing network, would set up a PP production base in Iran. The company also inked an agreement with Vietnamese government to build a PP plant at a cost of $336 million in February last year.
Iran has been attracting investments from abroad on expectations on economic renaissance following the lifting of international sanctions. The country has the world's largest natural gas deposit and the fourth-largest crude oil reserve on top of its geographical advantage offering easy access to other Middle Eastern markets as well as Europe and Africa.
Currently, South Korean companies are working on nearly 60 petrochemical projects in Iran. Cho Hyun-sang, Hyosung president who visited Iran as a member of the business delegation when former South Korean President Park Geun-hye made a state visit to the country in May last year, has been building business networks with the Iranian government since then.
Iran has signed a flurry of deals with Western companies over the past year since the easing of international sanctions on Tehran after an accord was reached over its nuclear programme.
Iran needs foreign investment for repairs and upgrading of its oil and gas fields. It also seeks the transfer of technology to its oil industry after a decade of sanctions, added the report.