During the visit, Arvand CEO Mohammadreza Karimi highlighted the company’s strategic position, supplying 50% of Iran’s PVC demand and controlling over 90% of the domestic caustic soda market. He revealed the complex's replacement value is estimated at approximately $1.3 billion.
Karimi introduced the "Arvand 2" expansion plan, a $509 million investment aimed at boosting PVC production capacity by 300,000 tons annually. The project is expected to enhance the company’s export capabilities and profitability.
Discussions are underway with regulators to secure discounts on feedstock prices—an initiative that could further improve margins. Karimi also emphasized that the company’s earnings remain resilient despite rising utility costs, with feedstock and utilities each constituting 32% of total expenses.
Although the company’s tax exemption period has ended, a second PVC phase could restore eligibility. The firm’s integrated production chain, reliance on domestic inputs, and minimal exposure to currency volatility were also underscored.
Over the past five years, Arvand has distributed over 30 trillion tomans in net profit. The company’s IPO is aimed at enhancing transparency and leveraging capital market opportunities. However, export tariffs for its products are yet to be finalized, a factor that may influence future earnings.