Italy-based Maire Tecnimont, a leading engineering company, has signed an agreement worth €1 billion ($1.11 billion) with the Persian Gulf Petrochemical Industries Co (PGPIC) to construct refineries and petrochemical plants in Iran, a report said.

The agreement includes providing finance, parts and equipment, as well as solutions to Iran's processing issues, added the report.

Speaking at the signing ceremony, Maire Tecnimont’s CEO Pierroberto Folgiero said that Italy is seeking to open a new chapter in its cooperation with Iran, especially in the oil and petrochemical industries.

Maire Tecnimont will help Iran build an acrylonitrile butadiene styrene (ABS) and rubber plant in the industrial city of Asaluyeh, said the report.

The ABS product has a variety of applications including in the automotive industry, it added.