Ardabil Petrochemical Company (Private Joint Stock) was founded on February 17, 2007 (coincides with the date of 28/11/1385) under No. 6458 in Ardabil Companies and Industrial Property Registration Office. The company was registered with the subject of producing petrochemical products (Urea and Ammonia). The registration was approved according to the minutes dated 26/05/2006 of the esteemed board of the government of the time, with “Issuance of necessary licenses and support and provision of foreign exchange facilities for setting up Ardabil urea and ammonia fertilizer petrochemical unit from the Foreign Exchange Reserve Fund by Shazand Arak Petrochemical”. After that, the initial measures to set up a urea fertilizer production with a capacity of 300,000 tons per year began. The implementation of the plan took a long time and led to the loss of the market and economic justification; therefore, it was emphasized to change the urea and ammonia design to production of Polypropylene from natural gas for added value and more employment based on the technical and economic studies and feasibility study. This was decided in the meeting held on May 30, 2015 (09/03/1394) with the presence of Honorable President of the Islamic Republic of Iran, Dr. Rouhani, the Executive Vice President and Governor of Ardabil and representatives of various ministries. After the technical, economic and feasibility study, in a meeting with the presence of the honorable Minister of Oil, he also expressed his full support for the proposed plan. It was decided to establish a polypropylene production unit with a capacity of 500,000 tons of natural gas. The shares of Ardabil Petrochemical Company were transferred to the private sector on June 7, 2017 (17/03/1396).

By obtaining the license of Ardabil Petrochemical Industrial Town, downstream petrochemical units were set up, which create good employment and added value with less investment than the main plan. The above-mentioned projects are being completed and launched quickly, which will be briefly described in the following.

Geographical Location of the Complex

Ardabil province is adjacent to the Republic of Azerbaijan to the north and has about 282.5 km of land and water border with this country. This province is also adjacent to Gilan province in the east, Zanjan province in the south and East Azerbaijan province in the west. Ardabil province is one of the cold mountainous areas. The average rainfall is between 250 and 600 mm per year. The latest national decisions indicate that Ardabil province with an area of 17,951 square kilometers occupies about 1.09 percent of the total area of the country.

Ardabil Petrochemical Complex is being constructed at 17 km of Ardabil-Khalkhal road, located in Hir city, Nowshahr village, with an area of 60 hectares.

Company Capital

The company was registered with an initial capital of 20 billion rials divided into 20 million ordinary shares of 1000 rials. In the Extraordinary General Meeting on Aguest 20, 2008 (30/05/1387), the increase of the company’s capital for 290 billion rials was approved and given to the Board of Directors to be realized frequently. The first round was approved by the Board of Directors in the 28th meeting of the Board of Directors on March 16, 2009 (26/12/1387) with a 50% increase. Therefore, the company’s capital increased from 20 billion rials to 155 billion rials. In the second round, the company’s capital increased from 155 billion rials to 180 billion rials and was registered on February 12, 2012 (23/11/1390). In the third round, the capital increased from 180 billion rials. The company’s capital is currently 3700 billion rials divided into 2680 million ordinary shares of 1000 rials.