Part of Chemical Industries and Development of Material Group (CIDMG), which is a branch of Iran's Defense Industries Organization (DIO); produces ammunition, explosives, and solid propellants for rockets and missiles.

According to the U.S Department of the Treasury, acts on behalf of DIO by importing and exporting chemical goods; according to the U.S. Department of the Treasury, was identified in April 2007 as the final recipient of sodium perchlorate monohydrate, a chemical precursor for solid propellant oxidizer, possibly to be used for ballistic missiles; according to the European Union, has worked on propulsion for Iran's ballistic missile program.

Develops and produces explosives, including nitrocellulose, dynamite, ammonium nitrate, and detonating cord; other products include diethyl ether, ethanol, and sulfuric acid; in 2018, began producing "Nanel" relays to use in explosives, construction, and mining; also reportedly produces chemical solvents and nano-materials.

According to the National Council of Resistance of Iran (NCRI), has served as a center of chemical and biological weapon work containing storage and "glass body" gas production equipment that has allegedly been repaired by its manufacturer, Lampert of Hungary.

Managing directors are Naser Sobhani and reportedly Saeed Soltan Abadi; commercial manager is Naser Majidi.

Established in 1939.

Sanctions

Designated by the U.N. Security Council on March 24, 2007, 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 October 18, 2023, following the expiration of targeted sanctions on Iran; 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 21, 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.

Added on July 8, 2008, 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 (WMD) and their delivery systems; 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; subject to heightened U.S. export license requirements (with a presumption of denial) due to involvement in activities related to WMD proliferation.

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

Listed by the Japanese government in 2025 as an entity of concern for proliferation relating to chemical weapons and missiles.

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.