Fresh signs have appeared that show European companies are gradually getting a strong foothold in Iran’s petrochemical industry. Iran says it has signed an agreement with a European company over the development of polypropylene technology and the relevant catalysts.

The agreement was signed between Iran’s Petrochemical Research and Technology Company (PRTC) and Norway’s Norner.

PRTC Managing Director Esmail Qanbari was quoted by media as saying that the production of polypropylene was expected to play a central role in Iran’s petrochemical industry over the next decade.

The agreement with Norner, he added, was in line with the same mission.

Qanbari added that the PRTC had already launched a plant in northern Iran which had a capacity to produce 2,400 tons of polypropylene a year.

He added that a separate unit for production of catalysts which he said was the country’s first such project. The official further stressed that the PRTC had used indigenous expertise over this.

On a separate front, Amirhossein Zamaniniya, Iran’s deputy petroleum minister for international affairs and trading, told IRNA news agency that Germany’s Linde had announced readiness to participate in Iran’s petrochemical projects.

Zamaniniya emphasized that Linde was prepared to take up several projects in Iran’s petrochemical sector, but did not name them.

He further added that negotiations were underway to determine a mechanism for providing funds to the German company over its Iran investment plans.

Zamaniniya said European banks were still reluctant to fund projects relating to Iran, but emphasized that there were nevertheless several other substitute mechanism.

He emphasized that Linde had announced that it would develop its Iran projects through its internal financial resources.