The annual ordinary general meeting of Lavan Chemical Company was held on Saturday, December 4, 2022, with the presence of Ali Yari, the CEO, and Farhad Jahangiri, a board member of Sepehr Energy Holding. The meeting was chaired by Hassan Mahmoudi and supervised by Hojatollah Ismaeili, the acting head of the company.
During the meeting, the acting head and board member of Lavan Chemical Company stated: Due to the challenges of not allocating natural gas as feedstock for the urea-ammonia product and the non-renewal of the preliminary approval license by the National Petrochemical Company, a decision was made to evaluate the existing risks. With the goal of completing the value chain in Sepehr Energy Holding, the production of another product was placed on the agenda.
Hojatollah Ismaeili added: Through conducted research on products with different value chain such as acetic acid, MTO/MTP, maleic anhydride, ethanol, and DMF, the strengths and weaknesses of each were thoroughly examined. Based on the evaluations, acetic acid with the methanol value chain, including methanol, acetic acid, vinyl acetate monomer (VAM), and ultimately polyvinyl alcohol (PVA), as well as synthetic ethanol with the DME and MAc value chain, were identified as the best, most accessible, and optimal products, replacing the urea-ammonia project under current conditions.
The supervisor of Lavān continued: According to the plans made, if the license for acetic acid is issued by the National Petrochemical Company, an annual nominal capacity of 200,000 tons is envisaged, with an initial estimated investment of $186 million and the creation of 182 direct jobs, making it the first downstream project to become operational in the holding.
He concluded by stating that conceptual studies, follow-ups on licensing and finance contracts, finalization of the establishment license from the Ministry of Industry, examination for the completion of the administrative building on the site, and finalization of permits for warehouse construction at the project site were among the activities carried out in the past fiscal year. The financial statements and the board of directors’ report were also approved at the end of this session, and Iran newspaper was appointed as the official publication for Lavān Chemical Company.