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PRESS RELEASE 18 May 2017

Iran unchained: new opportunities for forest products trade?

When many of the economic sanctions against Iran were lifted over a year ago, doors were opened for international investments. Among those, one of the most obvious opportunities can be found in the forest products sector. Pöyry’s latest Point of View article examines the opportunities and challenges that the market poses for foreign investors.

Iran is sparsely forested with only some 7 million hectares of forest covering less than 5% of the nation’s land area. While the forest products market is likely to grow, they are also facing some challenges such as a costly and limited supply of wood or fiber, a need to modernise mill assets and the threat of strong international competition.

These challenges open doors for foreign capital and investment in a market with high demand and little production. The demand arises from the modernisation of the society and retail trade along with the rise of the middle class, which will eventually lead to the rise of packaging industry as well as the tissue and hygiene sector. Investments that are enhancing cost competitiveness and product quality will be on the front burner.

Access to relevant market information is necessary for companies that want to discover trading and investment opportunities in Iran. The checklist should include collection of market data and finding the right local partners, ensuring that business is conducted by the book as well as finding transaction services facilitating trade with Iran. Businesses need to understand the nature and extent of the current remaining restrictions and at the same time, be prepared for challenges.

Download the full article (PDF format)

Contact:

Timo Suhonen
Principal, Pöyry Management Consulting

+358 10 33 22600

Otto Leskijärvi
Principal, Pöyry Management Consulting

+358 10 33 22025

Did you know? Pöyry has almost 60 years of experience in Forest Industry consulting.

About Pöyry

Pöyry is an international consulting and engineering company.  We deliver smart solutions across power generation, transmission & distribution, forest industry, chemicals & biorefining, mining & metals, transportation and water. Pöyry's net sales in 2016 were EUR 530 million. The company's shares are quoted on Nasdaq Helsinki (POY1V). Approximately 5500 experts. 40 countries. 130 offices.