A new player has been created in Iran’s industrial gas industry, as The Linde Group and Delvar Afzar Industrial Gases have teamed up in a joint venture.
The Tier One corporation and Delvar Afzar Industrial Gases, part of the Delvar Afzar Industrial Group, have united under the name ‘Linde Delvar Afzar Industrial Gases’ (LDAIG).
It is understood that in pooling strengths and leveraging the assets of both parties, LDAIG aims to become a leading supplier of industrial merchant gases and healthcare gases in the Middle Eastern country. The company also aims to implement an industrial gas culture and develop new sales for molecules including both liquids and gases.
Delvar Afzar’s facilities will provide the majority of the company’s liquid gases supply.
Linde CEO Professor Dr. Aldo Belloni, Linde Board Member Bernd Eulitz and Dr. Iraj Ghorbani, CEO of Delvar Afzar Industrial Group, signed the agreement to establish the new organisation on 17th January in Iran.
Dr. Ghorbani said that the new collaboration will contribute to the long-term strategy of creating a culture of merchant businesses, including healthcare, in Iran.
“The bright future of the joint venture company is supported by the Delvar Afzar Industrial Group, as the Iranian industrial gas leader, which shall assist technically with its existing resources to make LDAIG a game-changer in Iran,” he underlined.
Linde’s Adam Jennings-Frisby added, “We see great business opportunities in Iran’s fast-growing merchant gases market, particularly in the specialty gases, healthcare, food and beverage sectors and the manufacturing industries.”
The International Atomic Energy Agency (IAEA) lifted international sanctions on Iran at the beginning of 2016, following the country’s compliance with a deal to monitor its current and future nuclear capabilities. As a result, the Iranian merchant gas market is expected to double by 2025.
The news had been expected to signal the start of a flood of investments into the Middle Eastern country, with the industrial gas industry amongst the sectors to profit from the opportunities that the lifted sanctions opened for the market.
The Linde Group was among a number of European companies reported to have been interested in reviving its presence in Iran’s petrochemical sector. Linde did have a sizeable presence in the country, but exited in 2010 under political pressure to leave from countries in the West.
gasworld Business Intelligence valued the industrial gas market in Iran at around $270m in 2015 and identified over 100 captive production facilities in the country.