Ten years ago, half of the imported plastics and rubber machines sold in Iran came from Germany, reports Plastics News.
Today, after years of sanctions, it’s virtually zero, but Germany’s machinery industry is very interested in returning.
Plastics machines weren’t covered under the sanctions, but with Iran excluded from global financial systems it was increasingly difficult to do business.
Peter Neumann (pictured), CEO of Engel, which maintained its services organization in Iran with a local partner during the sanctions, says:
“Chinese injection molding machinery producers have gained market share in Iran dramatically, especially this year.
“It has something to do with financing: Iran is the main supplier of crude oil for China and there is an instrument applied on using export of crude oil to finance purchase of machines.”
Germany’s K Fair, the world’s largest plastics trade fair, announced a deal in September with the Iran Plast Fair to organize international visitor participation from Europe and parts of Asia.
Iran Plast is scheduled for April 13-17 in Tehran. The last edition, in 2014, had 68,000 visitors and 800 exhibiting companies, with 250 from outside Iran.
At the Plast Eurasia 2015 show in Turkey this month, Iran’s Jam Petrochemicals Co. said the sanctions relief would allow it to shift 20-25 percent of its polyethylene exports from Asia to Europe, as the ending of sanctions essentially allow Iran back into the world economy.
(Source: Plastics News)