MOSCOW (MRC) -- BASF SE CEO Kurt Bock plans to rebuild the business of the world’s biggest chemical maker in Iran, saying a visit to the country this week showed him the market potential for German companies, according to Hydrocarbonprocessing.
"German technology, German quality work and German reliability are very highly regarded and so we see good chances to tie again into old developments," the CEO, who was part of a delegation that traveled to Iran with Economy Minister Sigmar Gabriel, said on a conference call Friday.
BASF could do with orders from new markets after the German chemical company reported second-quarter profit that missed analyst estimates as the slump in the oil market forced it to cut prices. Iran has the second-biggest natural gas reserves, the fourth-biggest oil reserves, and a developing petrochemical industry, which will have an impact when Iran is more strongly integrated into the world economy, Bock said.
The German government plans to be Europe’s vanguard in reviving economic ties with Iran when US and European sanctions end early next year after an accord was brokered for the peaceful development of nuclear technology.
While BASF adhered very exactly to sanctions, the Ludwigshafen, Germany-based chemical maker retained a small team in the country, Bock said, adding that the company had been doing business in Iran since 1959.
As MRC reported previously, earlier this month, BASF and Linde have sent their representatives to Iran with German Minister of Economy Sigmar Gabriel to resurrect the projects which were put on ice after sanctions were imposed on Tehran in 2011.
BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
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