Hossein Mehrzad, the CEO of Ahvaz Polymer Industry Company, in an interview with Asre Tolid on the sidelines of the 19th Iran Plast International Exhibition, while introducing the company’s capacities, pointed to the problems caused by frequent power outages; an issue which, according to him, has posed serious challenges to the production and exports of this complex.

He explained that Ahvaz Polymer Industry Company, located in Ahvaz Industrial Town No. 3, annually produces 30,000 tons of products in the field of adhesives and coatings for steel, oil, gas, and petrochemical pipes. However, in recent months, the company has faced 12 to 18 hours of power outages per week.

According to him, currently about 20 to 25 percent of the company’s production and sales capacity has decreased due to power instability, and power fluctuations have also caused serious damage to sensitive and advanced equipment. The CEO of Ahvaz Polymer Industry Company estimated the cost of equipment repairs to be between 150 to 250 million Tomans per month.

He added that this situation has not only led to reduced production but has also caused employee dissatisfaction, disruptions in salary payments, delays in fulfilling banking and tax obligations, and dissatisfaction among domestic and foreign customers.

The CEO of Ahvaz Polymer Industry also, referring to the company’s export situation, stated that although exports to countries such as Russia, Turkey, and Iraq continue, the persistent power outages have also affected foreign markets.

He warned that if they are unable to deliver goods on time, they will be forced to pay compensation to customers, and this directly negatively impacts the company’s profitability.

Stating that the company’s fixed costs persist, he said: The company has about 70 to 80 personnel who must receive salaries, insurance, and benefits, regardless of whether there is electricity or not. Also, expenses such as taxes, transportation, water, and others must be paid monthly.

The CEO of Ahvaz Polymer Industry emphasized that these costs are imposed on the company while its income has severely decreased due to energy imbalance, and this problem has placed many of the country’s producers in a critical situation.

In conclusion, he expressed hope that authorities would consider serious measures in the second half of the year to compensate for the damages inflicted on industries. According to him, the company has incurred significant losses in the first six months of the year, and it is expected that some of these pressures will be compensated in the remainder of the year.

The CEO of Ahvaz Polymer Industry also noted that using diesel generators is not cost-effective for many companies due to high costs and fuel supply issues, and for this reason, alternative solutions are also practically unfeasible.