Iran says Japan has agreed to fund the development of some of its petrochemical projects – a groundbreaking move that could open the way for similar funding mechanisms for other sectors in the future. Iran’s Ministry of Petroleum announced in a statement that a deal has been signed between the country’s Persian Gulf Petrochemical Industries Company (PGPIC) and Japan’s Marubeni to provide as much as €320 million for the development of PGPIC’s petrochemical projects, IRNA reported. This, the Ministry added, will be carried out through a mechanism known as the Usance Letter of Credit (L/C). (Press TV, "Iran, Japan seal deal to fund petchem plans," 9/25/2016).
Marubeni Corporation is a trading company “involved in the handling of products and provision of services in a broad range of sectors. These areas encompass importing and exporting, as well as transactions in the Japanese market, related to food, textiles, materials, pulp and paper, chemicals, energy, metals and mineral resources, transportation machinery, and includes offshore trading. The Company's activities also extend to power projects and infrastructure, plants and industrial machinery, real estate development and construction, and finance, logistics and information industry. Additionally, Marubeni conducts business investment, development and management on a global level” (Company Profile).
Marubeni has “55 overseas branches & offices and 32 overseas corporate subsidiaries with 63 offices for a total of 118 offices in 71 countries/areas” (Company Profile).
Marubeni lists contact information for its office in Tehran, Marubeni Iran Co., Ltd. (Company website, “MIDDLE EAST Our Company Marubeni Corporation”)
Marubeni-Itochu Steel, a joint venture between Marubeni and Itochu, lists an office in Tehran on its website. (Marubeni-Itochu website)
As of April 2010, Marubeni imports ten thousand barrels of crude oil per day from Iran. (Reuters, "Iran’s Crude Oil Buyers in Europe, Asia," April 18 2010)
"China's Sinopec Group and Japan's Marubeni Corp (8002.T) will work together to see contracts worth over $1 billion in the next five years to build refineries and petrochemical plants, Chinese media said. SEI, Sinopec's engineering unit, recently entered energy infrastructure contracts in Iran and Saudi Arabia, the report said, without giving further details." (Reuters, "Marubeni, Sinopec jointly seek $1 bln deals," July 13, 2010)
"Marubeni has formed a consortium with South Korea's largest rolling stock manufacturer, Rotem Company (Hyundai Motor Group), to win an order worth about 110 million euro (about 15 billion yen) for 120 Diesel Multiple Unit (DMU) cars from Irankhdro Rail Industries Company (IRICO), and signed the contract on November 1."
"Under this contract, the design and production of the rolling stock and the transfer of technology to IRICO will be carried out by Rotem Company, while, as consortium partner, Marubeni will take charge of the commercial task & functions , including accounting & legal support, local procurement back-up and finance & payment facilitation."
"Marubeni has 40 years experience in Iran, particularly with the Islamic Republic of Iran Railway , in areas such as the supply of signal systems and the delivery of diesel locomotives, and is held in high esteem by the Iranian counterparts."
"The DMUs to be delivered under this contract are intended for the use by the Tehran Suburban Railway by Raja Passenger Company (Passenger Trains Company that is a wholly owned subsidiary of the Islamic Republic of Iran Railway ) and comprise 24 complete cars, 24 cars for on-site assembly and 72 cars for on-site production. The transfer of technology to IRICO is also included in the scope of work."
"IRICO is a company set up by Iran's largest car maker, Irankhodro, to enter into railcar production business, which is currently burgeoning in Iran against a backdrop of fast population increase in urban areas, and this contract marks IRICO's first project."
"As the future demand for rail vehicles for suburban rapid passenger transportation and urban rail transit looks firm and steady in Iran, Marubeni plans to expand its business for urban and suburban passenger rail vehicles by lining-up various type of rail vehicles on offer and co-operating Iranian customers and partners in the field of technology transfer and local production" (Marubeni News Release, "Series of Large Orders Won in Railroad Projects for Iran," Nov 4, 2004).
In 2004, Marubeni began dealings with a major Iranian petrochemical company: "Mitsubishi Corp. and two other Japanese trading companies signed initial agreements to buy petrochemicals that may be worth more than $1 billion from Iran Petrochemical Commercial Co., said Mohamad Ehtiati, chairman of the Iranian company.
"It's a new stage of the relationship for Japan and Iran,'' Ehtiati said in an interview last Friday in Tokyo after attending an oil conference.
Iran's National Petrochemical Co. is spending $32 billion to build plants as part of a 10-year plan to boost economic growth and get more value from the nation's oil resources. Iran Petrochemical, the trading unit of National Petrochemical, plans to sell ethylene and other products worth $25 billion by 2014. Liquefied Petroleum Gas output may rise to 7 million tons by 2010 from the current 2.2 million tons a year.
"There have been business talks with Iran Petrochemical and there has been some interest on the Marubeni side,'' said Tsutomu Honda, a spokesman at Marubeni Corp. The talks haven't resulted in any legal obligations, he said.
"The initial agreements known as memorandums of understanding signed by Mitsubishi, Mitsui and Marubeni will lead to shipments of at least 4 million metric tons over five years starting in 2005, Ehtiati said." (Bloomberg, "Japan May Buy $1 Bln of Iran's Chemicals, Iranian Official Says," March 3, 2004).