A giant petrochemical project in Iran - a joint venture between Siam Cement Group and other companies will be one the largest such operations in the world. . The facility is located in a special economic zone, which exempts it from corporate taxes and qualifies it for other government privileges. The SCG venture comes with the implementation of new investment rules in Iran, with which the government has said it hopes to bring new money into its oil-based economy.
Iran exports almost US$59 bln worth of oil every year and produces more than 4 mn barrels of crude per day. But the country only produces about 460,000 barrels of refined product. Iran has shifted focus from exports of unprocessed oil and gas to value added downstream products. Projects like these will place Iran in top gear to produce value-added, refined products including plastics and chemicals.