RoydadNaft –  Iran has resolved one of the country’s longest-running petrochemical disputes after a decade, with Labor Minister Ahmad Meydari announcing that the legal battle between Jam Petrochemical and Mehr Petrochemical has officially come to an end. Under the finalized agreement, workers at Mehr Petrochemical will begin signing employment contracts with Jam Petrochemical next week, ensuring uninterrupted production and salary payments.

According to Roydad Naft, speaking on Thursday, July 30, 2026, during a visit to Mehr Petrochemical in Asaluyeh, Meydari said the decade-long dispute was resolved following extensive government efforts, close coordination among senior state authorities, and a directive issued by the head of Iran’s Judiciary.

He described the settlement as one of the government’s major achievements, emphasizing that cooperation among key institutions played a crucial role in bringing the case to a successful conclusion.

Meydari also thanked provincial officials for their support, noting that the Governor of Bushehr Province, the provincial prosecutor’s office, and other local authorities significantly accelerated the implementation process.

Production and Jobs Secured

The labor minister confirmed that all legal and administrative procedures have now been completed.

Under the agreement, Mehr Petrochemical has officially become part of Jam Petrochemical. Employees who have been working at Mehr Petrochemical will sign new employment contracts with Jam Petrochemical starting next week.

Meydari stressed that production operations will continue without interruption and that employees’ salaries will be paid on time, with no disruption during the transition.

He added that the resolution reflects effective coordination between Iran’s judiciary, national government officials, and provincial authorities, bringing one of the country’s most significant and long-standing petrochemical legal disputes to a close.

Background of the Legal Dispute

According to Iran’s Ministry of Cooperatives, Labour and Social Welfare, the dispute between Jam Petrochemical and Mehr Petrochemical originated from a long-term ethylene supply agreement. Over the years, the case evolved into one of the most important legal disputes in Iran’s petrochemical industry.

Although a final court ruling had been issued, enforcement of the judgment remained stalled for years.

The ministry said the case was ultimately resolved through government follow-up efforts, intervention by the National Inspection Organization, and a directive from the head of Iran’s Judiciary to remove obstacles preventing enforcement of the ruling.

With the implementation of the judgment, Jam Petrochemical has recovered a substantial portion of its claims, while the transfer of assets and the final settlement of the dispute have now been completed.