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Mahaban Petrochemical | Credit: Mahabad website, archived page from 2019

The Mahabad production plant is situated at kilometer 15 of the Mahabad–Urmia Road in West Azerbaijan Province, covering a site area of 185 hectares. 

The Mahabad Petrochemical project was initiated in 2004–2005 (1383 Solar Hijri), with construction beginning in 2007–2008 (1386 Solar Hijri). In October 2005, Iran's National Petrochemical Company affiliates Lorestan Petrochemical and Mahabad Petrochemical selected Basell's Spherilene technology for their new LLDPE/HDPE plants as part of NPC's 11^th Olefin project. The engineering, procurement, and construction contract was awarded in February 2008 to an Italian-Iranian consortium consisting of Tecnimont S.p.A. (Italy) as lead EPC contractor and NARGAN Company (Iran) as local partner, with a combined contract value of €428 million covering both Mahabad and Lorestan plants.

The plant achieved commercial startup in 2015 (1394 Solar Hijri). Ethylene feedstock is supplied via the West Ethylene Pipeline, a 1,600–2,700 kilometer pipeline system connecting the ethane gas cracker at Assaluyeh (South Pars Gas Complex) on the Persian Gulf coast to five petrochemical sites in Iran's western provinces, with Mahabad receiving approximately 324,000 tonnes of ethylene annually.