Subordinate to the Atomic Energy Organization of Iran (AEOI); involved in Iran's proliferation-sensitive nuclear activities at Arak Heavy Water Complex, according to the United Nations; according to the U.S. Department of the Treasury, procures products for the Arak complex.

Intended recipient of liquid level gauges, the procurement of which was denied on July 3, 2003, by a member state of the Nuclear Suppliers Group (NSG); intended recipient of steam traps and components for steam traps, the procurement of which (through Azar AB Industry Company/Industries Company (AIC)) was denied on April 14, 2003, by a member state of the NSG; intended recipient of pressure relief valves and specially designed components, the procurement of which was denied on December 4, 2002, by a member state of the NSG; intended recipient of high grade steel pipes and components, the procurement of which was denied on April 30, 2002, by a member state of the NSG; attempted to procure filters, screens, and gaskets for pumps for Pars Oil and Gas Project (POGP), but the procurement was denied on February 18, 2002, by a member state of the NSG.

Intended recipient of pressure switches, micro switches, components and accessories, the procurement of which was denied on February 12, 2002, by a member state of the NSG; intended recipient of tank gauges, components, and accessories, the procurement of which was denied on February 12, 2002, by a member state of the NSG; intended recipient of cooling towers, the procurement of which was denied on March 26, 2001, by a member state of the NSG; intended recipient of software and glass filter sets for a spectrophotometer, the procurement of which was denied on December 13, 2000, by a member state of the NSG; intended recipient of a Fourier transform infra-red spectrometer with control software and sampling accessories, the procurement of which was denied on November 8, 2000, by a member state of the NSG.

Director General Ali Hajinia Leilabadi was listed in an annex to U.N. Security Council resolution 1737 as a person involved in Iran's proliferation-sensitive nuclear activities.

Sanctions

Designated by the U.N. Security Council on December 23, 2006, pursuant to resolution 1737 (2006), as an entity involved in or supporting Iran's proliferation-sensitive nuclear activities or development of nuclear weapon delivery systems; with some exceptions, the designation requires states to freeze assets that are owned or controlled by the entity, directly or indirectly, and to ensure that assets are not made available to the entity.

Previously removed from the U.N. list on January 16, 2016, pursuant to the Joint Comprehensive Plan of Action (JCPOA); returned to the U.N. list on September 28, 2025, as part of the reimposition of sanctions on Iran.

Listed by the European Union on April 20, 2007, as an entity linked to Iran's proliferation-sensitive nuclear activities or Iran's development of nuclear weapon delivery systems; with some exceptions, E.U. member states must freeze assets owned or controlled by the entity, directly or indirectly, and prevent assets from being made available to it.

Previously removed from the E.U. list on January 16, 2016, pursuant to the JCPOA; returned to the E.U. list on September 29, 2025, as part of the reimposition of U.N. sanctions on Iran.

Added on January 4, 2006, to the Specially Designated Nationals (SDN) list maintained by the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC), freezing its assets under U.S. jurisdiction and prohibiting transactions with U.S. parties, pursuant to Executive Order 13382, which targets proliferators of weapons of mass destruction (WMDs) and their delivery systems; also designated pursuant to Executive Order 13599, which targets entities controlled by the Government of Iran and Iranian financial institutions; also subject to the Iranian Financial Sanctions Regulations, which restrict the use of the U.S. financial system for transactions involving Iranian entities.

Foreign parties facilitating transactions for the entity or otherwise assisting the entity may be subject to U.S. sanctions; foreign financial institutions facilitating transactions for the entity may be prohibited from opening or maintaining correspondent or payable-through accounts in the United States.

Previously removed from the SDN list on January 16, 2016, pursuant to the JCPOA; returned to the SDN list on November 5, 2018, as part of the reimposition of U.S. sanctions on Iran.

Added on July 12, 2007, to the U.S. Department of Commerce's Entity List of end users subject to heightened export license requirements due to involvement in proliferation activities or other activities of national security concern.

Sanctioned by the governments of Australia, Japan, and the United Kingdom, restricting business and financial transactions with the entity and/or freezing its assets in those countries.

Listed by the British government in 2015 as an entity of potential concern for WMD-related procurement, but removed in 2017 after the U.K. withdrew its Iran list.