Iranian and European companies signed a contract valued at €3 billion ($3.35 billion) to build a petrochemical plant in the Assalouyeh region of southern Iran, said a report.

The funds are expected to be spent towards building a plant that will make two types of polymers for the first time in Iran, Adel Nejadsalim, CEO of the Persian Gulf Petrochemical Industries Company (PGPIC), was quoted as saying in an Iran Daily News report, citing Fars News Agency.

Nejadsalim noted that the two types of polymers will meet international standards.

He added that currently the joint petrochemical project is undergoing feasibility studies and further details about the type of partnership with the European company, production capacity, etc. will be announced following the completion of the negotiations.

Iran expects to draw $10 billion in foreign investments for petrochemical projects, added the report.