Karoon Petrochemical Company

What Karoon Petrochemical Company does

Karoon Petrochemical Company (شرکت پتروشیمی کارون) is Iran's sole producer of isocyanates and the first isocyanate manufacturer in the Middle East. Founded in 2002 and inaugurated in 2008, the company operates a vertically integrated petrochemical complex in the Bandar-e Emam Khomeini (Mahshahr) Special Economic Zone, with corporate headquarters in Tehran. Its product portfolio centers on toluene diisocyanate (TDI, 40,000 t/yr capacity) and methylene diphenyl diisocyanate (MDI, 40,000 t/yr), complemented by intermediates and by-products including aniline (30,000 t/yr), nitrobenzene (40,000 t/yr), nitric acid (92,300 t/yr), hydrochloric acid, and toluene diamines. The company also produces a suite of knowledge-based specialty polyurethane prepolymers branded under the KLM, KP, KHR, KCS, KMT, and KM designations.

The company's core technology is in-house developed — Karoon is the first Iranian licensor of isocyanate production technology, having commercialized its own TDI and MDI processes including catalyst systems, and it has executed advanced maintenance operations such as hydrogenation reactor coil replacement internally. Revenue is generated primarily through B2B sales of isocyanates and ancillary chemicals, with a roughly 30% domestic / 70% export sales mix, distributed via direct field sales, dedicated isotank logistics, and an e-procurement portal. The company is privately held under Bandar Imam Petrochemical Company, which sits within the Hengam Holding / Persian Gulf Petrochemical Industries Group ecosystem. In FY1403 (ending March 2025), Karoon produced 311,275 tonnes across ten products and reported operating revenue of 48,239,505 million Rials, with the company signaling a strategic expansion into technology licensing and a Polyurethane Chain Co-creation Center in partnership with Iran's Vice Presidency for Science and Technology.

Name

Karoon Petrochemical Company

Legal name

Karoon Petrochemical Company (شرکت پتروشیمی کارون)

Website

https://krnpc.ir

Company type

Private

Founded year

2002

Operating status

Operating

Headcount range

501–1,000 employees

Short description

Karoon Petrochemical Company is Iran's sole isocyanate producer, manufacturing TDI, MDI, and related polyurethane precursors. Founded in 2002, the company serves polyurethane, pharmaceutical, footwear, and coatings industries with a 70% export-led business model.

Ownership category

akta.pro rank

Product category

Petrochemical Manufacturing (Isocyanates and Polyurethane Raw Materials)

NAICS

Petrochemical Manufacturing (325110), All Other Basic Organic Chemical Manufacturing (325199)

SIC

Industrial Organic Chemicals (2860)

akta.pro primary industry

Base Aromatics (BTX: Benzene, Toluene, Xylenes) (IMAEADAB)

akta.pro secondary industry

Aromatics (BTX: Benzene, Toluene, Xylenes) (EUALAHAC)

Keywords

• Isocyanate production
• Polyurethane raw materials
• Petrochemical manufacturing
• Toluene diisocyanate TDI
• Methylene diphenyl diisocyanate MDI

Headquarters

HQ city

Tehran Dasht

HQ country

Iran

HQ region

Middle East

Offices3 records

Markets served

GTM type

B2B

Offering type

Hardware or Manufacturing

Cost components

Supply Chain, Operations, Infrastructure, Personnel, Technology or R&D, Marketing or Sales

Revenue model

1. Isocyanate product sales (TDI and MDI): Primary revenue stream from sale of toluene diisocyanate (TDI) and methylene diphenyl diisocyanate (MDI), along with various polyurethane grades and intermediate/ancillary products. Revenue mix: approximately 30% domestic sales, 70% exports to global markets. Operational revenue for fiscal year ending March 2025 was reported at 48,239,505 million Rials.
2. Ancillary and derivative chemical sales: Sales of secondary/byproduct chemicals including Aniline, Nitrobenzene (NB), Ortho-toluene diamine (OTD), Meta-toluene diamine (MTD), Hydrochloric acid (HCL), and Nitric acid (HNO3). Some products (nitric acid, aniline, nitrobenzene) serve the pharmaceutical industry as raw materials.
3. Technology licensing (دانش فنی): Karoon Petrochemical has announced readiness to sell its domestically developed isocyanate production know-how (دانش فنی) to other companies, representing a potential new revenue stream from technology licensing and intellectual property.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels5 records

Core offering

Karoon Petrochemical Company manufactures and sells isocyanates — primarily toluene diisocyanate (TDI) and methylene diphenyl diisocyanate (MDI) — as well as by-products including aniline, nitrobenzene, nitric acid, hydrochloric acid, MTD, and OTD, plus a portfolio of eight knowledge-based polyurethane prepolymers. It is Iran's only isocyanate producer and the first isocyanate licensor in the Middle East.

Product overview

Karoon Petrochemical Company is the first isocyanate producer in the Middle East, offering a diversified portfolio of polyurethane-related products. The core products include Toluene Diisocyanate (TDI) with 40,000 tons annual capacity and Methylene Diphenyl Diisocyanate (MDI) with various grades. By-products include Aniline (30,000 tons/year), Nitrobenzene (40,000 tons/year), Nitric Acid (92,300 tons/year), Hydrochloric Acid, Meta Toluene Diamine (MTD), and Ortho Toluene Diamine (OTD). The company also produces knowledge-based products including KLM-100 series (KLM-100-B(H), KLM-100-B(L), KLM-100-C, KLM-100-OT), KP series (KP-200, KP-600, KP-50), KHR-45, KMT-10, KM-70, and KCS-20. The product portfolio covers the full isocyanate value chain serving polyurethane, pharmaceutical, paint, and coating industries.

Differentiator

Problem solved

Functional benefit

Products and services

• Toluene Diisocyanate (TDI) Toluene Diisocyanate (TDI) is Karoon's core isocyanate with an annual capacity of 40,000 tonnes, supplied to polyurethane foam manufacturers for flexible foam (furniture, mattresses) and rigid foam (insulation) applications across domestic and export markets.
• Methylene Diphenyl Diisocyanate (MDI) Methylene Diphenyl Diisocyanate (MDI) is a primary isocyanate offered in various grades for polyurethane manufacturing, supplied to rigid foam, adhesives, coatings, and elastomer producers. Karoon is the first Middle Eastern isocyanate licensor with proprietary MDI process technology.
• Aniline Aniline is an intermediate chemical used in pharmaceutical, dye, and rubber industries with an annual production capacity of 30,000 tonnes at Karoon, also used in MDI production internally.
• Nitric Acid (HNO3) Nitric Acid at 64% purity is produced at 92,300 tonnes/year capacity, used in pharmaceutical manufacturing and various chemical processes including paracetamol production.
• Hydrochloric Acid (HCL) Hydrochloric Acid is a by-product of isocyanate production; Karoon supplies gaseous HCL to Petrochemical Arvand, where it is essential to Karoon's continuous production stability.
• Nitrobenzene (NB) Nitrobenzene is an intermediate product used in aniline and MDI production with 40,000 tonnes annual capacity, also supplied externally for pharmaceutical synthesis.
• Meta Toluene Diamine (MTD) Meta Toluene Diamine is a chemical intermediate used in isocyanate production.
• Ortho Toluene Diamine (OTD) Ortho Toluene Diamine is a chemical intermediate for various industrial applications.
• KLM-100 series knowledge-based polyurethane prepolymers (KLM-100-B(H), KLM-100-B(L), KLM-100-C, KLM-100-OT) The KLM-100 family of knowledge-based polyurethane prepolymers includes high-performance (B(H)), low-viscosity (B(L)), and specialized (C, OT) variants developed in-house for industrial polyurethane applications.
• KP series knowledge-based polyurethane products (KP-200, KP-600, KP-50) The KP series (KP-200, KP-600, KP-50) is a family of knowledge-based polyurethane products developed in-house for varied industrial applications.
• KHR-45 KHR-45 is an in-house knowledge-based polyurethane product for specialized industrial applications.
• KM-70 KM-70 is an in-house developed polyurethane product for various industrial applications.
• KMT-10 KMT-10 is an in-house knowledge-based polyurethane product for specialized applications.
• Isocyanate production technology licensing (دانش فنی) Karoon offers its proprietary isocyanate production know-how (TDI and MDI processes including catalyst systems) for licensing to other companies, as the first Iranian isocyanate licensor, representing a new revenue stream from intellectual property.

Quantifiable outcome

• Production capacity: 40,000 t/yr TDI, 40,000 t/yr MDI, 30,000 t/yr Aniline, 92,300 t/yr Nitric acid. Total production FY1403: 311,275 tonnes across 10 products.
• +3 more outcomes

Named customers4 records

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Seven partnerships are on record, tiered major and core.

• Pardis Technology Park, Tehran (پارک علم و فناوری پردیس تهران)majorStrategic or Co-development Partner · 1 September 2024A cooperation agreement was signed between Karoon Petrochemical and Pardis Technology Park at the 22nd Annual Summit of Pardis Tech Park. The agreement covers collaborative construction of technological equipment and development of indigenous technology in Karoon's value chain. An office was opened at the park to foster closer interaction with startups and knowledge-based companies.
• Vice Presidency for Science and Technology / National Innovation Fund (معاونت علمی ریاست جمهوری)majorStrategic or Co-development Partner · 1 May 2024A cooperation agreement was signed to establish a 'Polyurethane Chain Co-creation Center' (مرکز هم‌آفرینی زنجیره پلی یورتان) at Karoon Petrochemical. The Vice Presidency provides support including tax credits, innovation fund financing, guarantees for contracts with knowledge-based companies, and infrastructure subsidies. The center aims to develop new polyurethane products and leverage Karoon's excess production capacity for new product development with startups.
• Petrochemical Arvand (پتروشیمی اروند)coreStrategic or Co-development PartnerPetrochemical Arvand receives gaseous HCl (hydrochloric acid) from Karoon Petrochemical's production process. This is critically important for Karoon's continuous production — without Arvand's HCl uptake, Karoon's production would be constrained. This symbiotic relationship is central to Karoon's production stability, and Arvand's expanded reception capacity is key to Karoon reaching 100% nameplate capacity.
• Petrochemical Fanavaran (پتروشیمی فن آوران)coreStrategic or Co-development PartnerPetrochemical Fanavaran is a key upstream supplier providing CO (carbon monoxide) feedstock to Karoon. Disruptions in Fanavaran's supply have historically caused emergency shutdowns at Karoon. This supply chain dependency is a major challenge for Karoon's production continuity.
• Persian Gulf Petrochemical Industries Group / Hengam Holding (گروه صنایع پتروشیمی خلیج فارس)coreStrategic or Co-development PartnerHengam Holding (گروه صنایع پتروشیمی خلیج فارس) is Karoon's parent holding company. The holding provides regulatory oversight, strategic direction, capital support, and coordinates cross-company synergies. Hengam's deputies regularly visit Karoon to review project progress and production performance. The holding plays a regulatory (رگولاتوری) role in coordinating Karoon's operations.
• Persian Gulf Petrochemical Industries Company (PGPIC) subsidiaries — joint projectscoreStrategic or Co-development PartnerMultiple subsidiaries of Hengam Holding (Arvand, Bandar Imam, and others) collaborate with Karoon on production optimization, feedstock sharing, and waste treatment. Joint meetings between Karoon, Arvand, and Hengam's deputies focus on removing production bottlenecks and increasing capacity utilization.
• Iranian domestic knowledge-based companies and manufacturersmajorStrategic or Co-development PartnerKaroon actively partners with Iranian domestic companies for equipment localization and equipment manufacturing. At Petrocem Kish 2024, 12 cooperation agreements were signed with Iranian companies for building critical equipment including cooling tower packages, graphite exchangers, compressors, pumps, and magnet pumps. The company works with domestic manufacturers to replace foreign suppliers, including for catalyst localization.

Scale indicators9 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Wanhua Chemical: Wanhua is the world's largest MDI producer and a major TDI producer, making it the closest direct comparable to Karoon's isocyanate-focused product portfolio and process technology. Both compete for the same downstream polyurethane applications globally.
• Mitsui Chemicals: Mitsui Chemicals produces TDI, MDI, and polyurethane intermediates via its industrial chemicals division and serves many of the same downstream polyurethane applications as Karoon, making it a strong Asian-region direct comparable.
• Huntsman Corporation: Huntsman is a global polyurethane specialty producer with material MDI/TDI exposure, serving similar downstream foam, coatings, and elastomer end-markets. Its MDI-focused strategy mirrors Karoon's emphasis on MDI technology and licensing.
• Covestro: Covestro (formerly Bayer MaterialScience) is one of the leading global producers of MDI and TDI and a direct isocyanate competitor, with comparable downstream exposure to foams, coatings, and adhesives. Karoon's licensing ambitions in isocyanate process technology directly compete with Covestro's established licensing business.
• Tosoh Corporation: Tosoh is a Japanese chemical producer with meaningful MDI and isocyanate operations, similar in scale profile to Karoon and overlapping in downstream polyurethane applications across Asia.

Broad incumbents

• Dow Inc. Dow is a diversified global chemicals incumbent with isocyanate-related polyurethane feedstocks and intermediates as part of a much broader portfolio. It competes with Karoon indirectly through polyurethane raw material supply chains.
• BASF: BASF is a global chemicals incumbent with a substantial isocyanates business (MDI/TDI) bundled within a much broader petrochemicals and specialties portfolio. It is a direct isocyanate competitor but also a broad incumbent across many adjacent chemistries in which Karoon and its parent ecosystem operate.
• SABIC: SABIC is one of the largest Middle East petrochemical incumbents and produces a broad slate of basic and intermediate chemicals that overlap with Karoon's aniline, aromatics, and downstream polyurethane-feedstock chain. Comparable as a regional petrochemical platform, though not a pure isocyanate specialist.

Regional players

• Petrochemical Industries Company (Kuwait): PIC is the Kuwaiti state-owned petrochemical producer operating in aromatics and polyurethane feedstocks. It is comparable to Karoon as a regional, state-linked petrochemical player supplying isocyanate-related intermediates to the polyurethane industry from a different geography.
• Sadara Chemical Company: Sadara is a Saudi-based integrated petrochemicals joint venture producing a range of performance chemicals and isocyanate-related intermediates for the Middle East and Asia. It is a regional peer for Karoon in serving Middle Eastern and export polyurethane customers, but operates from a different geography.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks7 records

Key highlights7 records

Customer concentration

• LinkedInlinkedin.com/company/krnpc

Compliance12 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

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Frequently asked questions about Karoon Petrochemical Company