Polyvinyl chloride (PVC) is among the most widely used consumer polymers globally and is the only thermoplastic whose production depends on oil and gas feedstocks at a rate of about 43%. The history of PVC dates back to 1835, when French chemist Henri Victor Regnault and his student Justus von Liebig first synthesized vinyl chloride. The story of PVC began in the 19th century with a chance discovery: in 1872, German chemist Eugen Baumann observed the formation of a white solid inside a flask of vinyl chloride gas exposed to sunlight. This marked the first documented discovery of PVC, although industrial-scale production did not materialize for several decades.
In the early 20th century, several chemists sought to commercialize PVC. Russian chemist Ivan Ostromislensky and German scientist Fritz Klatte explored applications for the new polymer, but its rigidity and brittleness limited processing and industrial use. In 1913, German chemist Friedrich Klatte succeeded in producing high-quality PVC—known as “Syntapren”—which found use across various industries. During World War I, Germany manufactured rigid and flexible PVC-based products as substitutes for corrosive iron materials.
In the 1920s, U.S.-based B.F. Goodrich achieved industrial-scale production of high-quality PVC, commonly referred to as “Bakelite,” expanding its applications. From then on, PVC gained widespread use in industries such as automotive manufacturing, construction, and electronics due to its physical and chemical properties. Further advances in production processes and material performance occurred in the 1960s, followed by major improvements in PVC processing and recycling technologies in the 1980s.
PVC is both one of the earliest discovered plastics and one of the most widely used today. It is the world’s third synthetic plastic product and ranks second globally in consumption after polyethylene. In Iran, 49 years after industrial PVC production began worldwide, a contract was signed in 1966 with U.S.-based Lummus to build the country’s first PVC plant using B.F. Goodrich technology. Construction began in 1967, and the plant came onstream on Nov. 5, 1969. Iran now has more than 56 years of experience in PVC production, compared with around 32 years for other polymers.
If propylene is considered the “caviar” of value-creating petrochemical industries, the chlor-alkali industry and its value chain can be described as the chemical and petrochemical sector’s true golden goose. While per capita sulfuric acid consumption was once a key indicator of industrial development, today per capita consumption of chlorine and caustic soda serves as a more accurate benchmark of industrial advancement. Ethylene is a base product for polyolefins such as polyethylene, polypropylene, and PVC; however, while the conversion factor of ethylene to polyethylene is less than one, the conversion factor of ethylene to PVC exceeds 2.3.
Despite its strategic importance, development of the chlor-alkali industry and its downstream value chain in Iran has received limited attention, largely due to the absence of sector specialists among top decision-makers. Polyethylene prices currently range between $1,000 and $1,100 per ton, while general-grade suspension PVC trades at $750–$800 per ton and emulsion PVC at around $900 per ton. The value added from converting one ton of ethylene into the lowest-grade PVC is more than 1.56 times the price of the highest-grade polyethylene. Processed salt used in chlor-alkali electrolysis costs $35–$50 per ton, compared with raw salt prices of just $2–$3 per ton in Iran, underscoring the urgency of accelerating investment in this value chain.
At the same time, Iran faces growing water stress due to its arid climate, climate change, ecosystem disruption, and excessive resource extraction. High evaporation rates exceeding 5,000 millimeters per year and extremely hot summers in southwestern Iran and along the Persian Gulf represent an underutilized natural advantage. This report seeks to draw the attention of senior policymakers, the petrochemical sector—particularly Persian Gulf Holding—and long-term investors to the integrated salt–chlorine value chain, seawater desalination, and PVC as a flagship downstream product.
Global PVC Production and Outlook
Global production of various PVC grades reached 57 million tons in 2024 and is forecast to rise to 60 million tons in 2025 and 80 million tons by 2035, reflecting a compound annual growth rate of 3.56%. By 2060, global PVC output is projected to reach 131 million tons, with its share among polymers remaining stable. Iran’s PVC output stood at around 580,000 tons in 2024—about 1.17% of global production. Without serious investment, Iran’s share could fall to 0.44% by 2060, turning the country into a net importer across all grades. Iran was the first PVC producer in the Middle East. The global PVC market was valued at $92.97 billion in 2024 and is expected to reach $146.89 billion by 2029, growing at a CAGR of 3.8%.
Leading Global PVC Producers
Major global players include Japan’s Shin-Etsu Chemical, with plants in Japan, the United States, and Europe; Taiwan’s Formosa Plastics, operating in Taiwan, China, and the United States; Westlake Corporation and OxyChem of the United States; INEOS/Inovyn in Europe; and China’s BCIG.
Types of PVC and Applications
- Rigid PVC (uPVC/PVC-U): Non-plasticized, rigid, cost-effective, and resistant to impact, weathering, chemicals, water, and corrosion.
- Flexible PVC (PVC-P): Plasticized PVC offering enhanced flexibility and transparency.
- Modified PVC (PVC-M): Enhanced durability and impact resistance through modifiers.
- Chlorinated PVC (CPVC): Produced by chlorinating PVC resin, offering superior chemical, flame, and temperature resistance.
- Molecularly Oriented PVC (PVC-O): Reoriented amorphous structure, providing higher strength, lighter weight, and improved fatigue resistance.
Key Applications
PVC is widely used in water pipes, construction materials (window profiles, cable ducts, roofing, wall panels), electrical insulation, disposable medical equipment, household furniture, packaging for pharmaceuticals and consumer goods, and household items such as bowls, shower curtains, and bins.
Per Capita PVC Consumption Trends
PVC consumption is a key indicator of industrial development, public health standards, and quality of life. In 2015, per capita PVC consumption stood at about 2 kg in India, compared with 11.8 kg in the United States and more than 10 kg in China. By 2024, the highest per capita consumption levels were recorded in the United States (14 kg), Germany (13 kg), and Turkey (11 kg). U.S. per capita consumption increased by 18.6% from 2015 to 2024.
New Projects in the Middle East and Worldwide
Major new projects include Qatar’s first suspension PVC plant (350,000 tons per year), ADNOC’s $1.99 billion PVC complex in Abu Dhabi (1.9 million tons per year), Thailand’s AGC Vinythai chlor-alkali and PVC expansion, BCIG’s new suspension and emulsion PVC plants, Shin-Etsu’s 400,000-ton expansion in Rotterdam, OxyVinyl’s $1.1 billion project in the United States, India’s Adani Group’s 1-million-ton PVC project in Gujarat, and Orbia’s planned integrated complex by 2028.
Iran, the Region, and Imports
Due to the absence of domestic production of certain PVC grades—particularly CPVC—Iran relies entirely on imports for these products. Arvand Petrochemical is Iran’s sole producer of emulsion PVC and the country’s largest suspension PVC producer, with the capability to manufacture eight grades, including specialized medical grades. Turkey, one of the world’s largest PVC consumers, imported a record 936,000 tons in 2023—1.7 times Iran’s annual production—mainly from the United States, Egypt, and France, while Iran ranked last among suppliers. India is projected to require an additional 3.3 million tons of PVC by 2030.
Southwestern Iran, between the ports of Mahshahr and Mahruyan, remains one of the world’s most promising locations for developing the chlor-alkali and PVC value chain. While past opportunities have been missed, experts warn that further delays could permanently sideline Iran from the global and regional PVC market and turn the country into a long-term importer.
Source: Shargh Daily, Petrochemical Industry Special Supplement