Iran’s Persian Gulf Petrochemical Industries Company (PGPIC) has made a letter of intent with Germany’s Siemens to bolster their cooperation on petrochemical grounds.
The two companies signed the deal at the venue of the annual Iran Oil and Gas Show in Tehran. The document would upgrade the nature of their relationship from seller-buyer to trade partnership.
PGPIC is the biggest profit-making company in Iran’s petrochemical industry and has struck the memorandum with Siemens, which is Germany’s technology major and supplier of oil, gas and petrochemical machinery.
The letter of intent was signed by the CEOs of the two companies.
"The message of this MoU is that our relationship with Siemens would no longer be limited to commodity purchase; rather the two companies would cooperate in such domains as maintenance and upgrading the quality of products," Jaafar Rabiei, CEO of PGPIC, said.
"Iran's petrochemical industry will have long-term cooperation with Siemens. In the past, cooperation with Siemens was based on separate agreements and in case we needed identical products, we have to go through the same lengthy process," he added.
"That would help reduce the price of foreign commodities. We can also link domestic companies with big international firms," Rabiei said.