Italian engineering group Maire Tecnimont has signed an agreement worth €1 billion with Persian Gulf Petrochemical Industries Co (PGPIC) to build refineries and petrochemical facilities in Iran. Other projects in planning include plastics and rubber plants.

The company will provide financing, parts and equipment for Iranian petrochemical companies as well as solutions for solving processing problems and boosting production capacity, said Maire Tecnimont’s CEO, Pierroberto Folgiero, at a signing ceremony in Tehran.

Among the projects the Italian company will be involved in an ABS polymerization plant and a synthetic rubber plant in the industrial city of Asaluyeh in the Pars Special Energy Economic Zone.

Folgiero told media attending the signing ceremony that Italy has been seeking to open a new chapter in a new era of cooperation with Iran in the country’s oil and gas sector. Tecnimont reportedly was active in Iran even before the removal of sanctions and is said to have begun negotiations about new projects more than a year ago.

The contractor is the fourth Italian company to seal an agreement with Iran to pursue projects in oil, gas or petrochemicals. Oilfield services group Saipem has inked a $4 billion deal with Iranian authorities. Other Italian investors are said to include energy giant Eni and refinery specialist Saras.