Amir Reza Ilkhan: The lifting of sanctions and the growing importance of Iran on the global markets
----Interview with Amir Reza Ilkhan, Vice President of Industrial Operations for Abadan Silicon Carbide Production Complex
ABASIC, one of the newest silicon carbide manufacturers in the world, is the only production complex of its kind in the Middle East. After many trials and experiments, the plant began operations in 1995 geared for the production of both silicon carbide and aluminium oxide. Silicon carbide production was increased in 3 phrases from 1997 through to 2006, before reaching its current production limit in 2012.
Asian Metal: Hello Amir, and thank you for agreeing to an interview with Asian Metal. Firstly, would you be able to provide a brief introduction to ABASIC?
Amir: Abadan Silicon Carbide Production Complex (ABASIC) is the only production facility of its kind in the Middle East and North Africa. Beginning operations in 1995, geared for the production of both silicon carbide and aluminium oxide. The company has since specialized in the production of silicon carbide exclusively, producing approximately 20,000 metric tons annually.
Asian Metal: Thank you for the introduction. Many manufacturers are finding this year to be particularly difficult, how is ABASIC finding the current state of the market in 2015?
Amir: Excess supply of Chinese materials has been the theme for the past 5 years and we don’t see that changing in the near future. We are also monitoring the over saturated markets in Asia and the EU with traders taking advantage of the excess supply in China to take delivery of cheap materials. Overall, 2015 looks to be one of the least profitable years for manufacturers.
Asian Metal: Are there any positive points about the market that stand out to you?
Amir: We are optimistic that we will be able to increase of market share in the Western EU, once the sanctions have been lifted. However, as a whole we are looking at a flat market with little deviation from the status quo.
Asian Metal: The lifting of sanctions imposed upon Iran has been the focus of a lot of media attention lately. There has been a lot of speculation about the impact on the energy industry, but how do you think this will effect ABASIC and the silicon carbide industry?
Amir: In general the lifting of the sanctions will provide us with a much better market position with the ability to provide materials with much more ease. Due to the sanctions we have been working in an environment of ever increasing costs in general; this is most apparent in the shipping sector, where we pay approximately 55-65% more than our competitors in Asia to EU Ports.
ABASIC represents roughly 1% of total silicon carbide production worldwide. At the moment we realize our largest markets in West Asia and Eastern Europe. We don’t foresee the lifting of sanctions changing the industry in any significant way.
Asian Metal: Outside of the silicon carbide industry, how do you think these recent events will affect the mining and metals sector in Iran and internationally?
Amir: International companies are already showing their presence in Iran. There has been much anticipation for the return of Iran to the global markets and this can be felt with the visit from German and French delegations to Iran in the last 2 weeks. Iran will surely provide a needed boost to European exports in the coming months. This is especially true in the mining, iron and steel sectors where much needed upgrades are required.
Asian Metal: In light of this, what does the future hold for ABASIC? Are there any plans for business development?
Amir: We are very optimistic of the future and although it is very early for any significant move in terms of business development outside of our present markets, the opportunities for an Iranian company with our strengths and abilities are immense in an unrestricted global environment.
Asian Metal: Is there anything that you would like to add?
Amir: The lifting of sanctions and the simultaneous expansion and promotion of steel, copper, aluminium, and the mining industry by the government of Iran, presents special investment opportunities. Tarmita Holding Company, (ABASIC’s parent company) is actively working on projects in the steel, ferroalloy, and petroleum industries with the cooperation of international companies. There are waves of investments pouring into Iran in light of the recent agreements; companies looking for expansion or investment opportunities should take a much closer look at the Iranian environment. It should be an amazing one to watch and participate in.
Asian Metal: Thank you very much for taking the time to speak with Asian Metal we wish you and your company the best moving forward.
