Chekapa (KAPA) to Cut Production Capacity by Up to 50 Percent After Arvand Petrochemical Halt

Iran's Chekapa paper and pulp company (ticker KAPA) disclosed on October 5, 2026 (13 Mehr 1405) that the temporary shutdown of the Arvand Petrochemical complex, a major producer in the chlor alkali chain, following recent clashes, has tightened caustic soda supply and pushed up its market price. Chekapa's preliminary estimate says that if current conditions persist, its own production capacity will fall by about 50 percent versus normal, cutting expected sales by roughly 2,700 billion rials (about 270 billion tomans) by fiscal year end. The company said it is working to secure raw materials and manage its cash resources.