According to NPC, Hassan Abbasszadeh said Saturday at the opening of the ninth Local Manufacturing Exhibition for the Oil, Gas, Refining and Petrochemical Industries in Assaluyeh that promoting a culture of supporting local production and reviving self-confidence is essential. He noted that the perceived value of “Made in Iran” goods has weakened among youth, partly due to negative advertising, and warned that regulations alone cannot counter this erosion.

Abbasszadeh said it is vital to understand the value behind Iranian-made products and the workforce that produces them. He added that exhibitions and industrial site visits can help strengthen public confidence, especially among younger generations.

A $2b Market for Domestic Firms

The deputy oil minister said the petrochemical sector remains dependent on imported equipment, which he divided into complex, high-tech items and simpler machinery. Petrochemical companies purchase about $2 billion worth of foreign-dependent equipment annually, he said — a major strategic market local companies could capture. Supplying this demand domestically would sharply reduce reliance on imports and create significant jobs.

Abbasszadeh said about 95% of fixed equipment — which is less technologically sensitive than rotating machinery — is now sourced inside the country. Only about 5% still comes from abroad, mostly because foreign licensors require Iranian producers to buy specific equipment tied to their technology packages.

He cited methanol-to-propylene and polypropylene conversion as a key proprietary technology now owned by NPC’s Research and Technology Co. Possessing this know-how, he said, allows NPC to require local manufacturers to produce specialized equipment, mirroring what foreign suppliers demand.

 Foreign Firms Dictating Purchases Through Licensing

Abbasszadeh said foreign companies leverage Iran’s dependence on their licenses to force the purchase of their equipment, often at several times the normal price. Domestic technical know-how, he said, frees Iran from those constraints.

He pointed to recent achievements: Apadana Petrochemical manufactured reactor internals for synthesis reactors domestically for the first time, and at Dena Petrochemical (Sabalan 2), the entire synthesis reactor was localized.

He said that in one project in which Iran owned the full methanol-to-polypropylene technology chain, the Economic Council required NPC to establish its own project company. The goal was to raise the localization rate at least 10 percentage points above the industry norm. Localization for this project has been set at 85%, compared with the usual 70% to 75%, he said. Aside from a reactor requiring special technical specifications, all towers, drums and static equipment have been localized. He expressed hope that once the project starts up, most of these items will be formally recognized as domestically produced, making foreign purchases unnecessary.

 Most Static Equipment Now Sourced Domestically

Abbasszadeh said Iran has made major progress in supplying fixed equipment domestically. In compressors — highly specialized and strategic equipment — and pumps, he said the country has advanced significantly, and nearly all process pumps used in petrochemical facilities are now locally manufactured.

He stressed that the petrochemical sector, with its advanced processes and operational complexity, stands apart from other oil and gas industries. Highly sensitive equipment such as pumps, compressors and reactors make localization especially critical.

He added that two areas still need improvement to reduce foreign dependence: control systems and certain specialized control hardware. Installation, commissioning and integration pose no issues, he said, but key control components remain dependent on imports.

 Open Opportunities to Compete With Foreign Products

Abbasszadeh said several sensitive, high-precision instrumentation items still require domestic development. If needed, NPC will publish a list of such items to guide local companies toward areas with open capacity and competitive potential.

He said high-power electromechanical motors also remain incompletely localized but have strong development potential. Some chemicals and catalysts, despite extensive domestic production, still have room for further expansion.

Abbasszadeh emphasized that developing domestic manufacturing requires managers to accept risk and trust Iranian companies. If senior and mid-level managers insist on using Iranian equipment, he said, the country can become a major industrial manufacturing center for the oil, gas and petrochemical sectors.

 Need to Raise Manufacturing Standards

Addressing local manufacturers, he said two factors underpin the success of foreign companies: consistent quality and on-time delivery. Delays of even weeks can impose heavy costs on petrochemical projects, he warned.

While delays may be manageable for spare inventory at operational complexes, they are critical in active projects, where a single undelivered item can halt progress.

He said inconsistent quality remains a major challenge among some domestic suppliers, who may produce a high-quality item once but fail to maintain standards or market continuity. Foreign companies, he noted, spend decades refining products and offering continuous support.

The ninth Local Manufacturing Exhibition for the Oil, Gas, Refining and Petrochemical Industries opened Thursday at the Pars International Exhibition Center in Assaluyeh. The event focuses on strengthening domestic capabilities, expanding technological cooperation, building a stable supply chain and supporting new technology-based firms. It runs through Dec. 10.