Large-scale factory manufacturing began in the 1920s.
During the Iran–Iraq War, Iraq bombed many of Iran's petrochemical plants, damaging the large oil refinery at Abadan bringing production to a halt.
Reconstruction began in 1988 and production resumed in 1993.
In spite of the war, many small factories sprang up to produce import-substitution goods and materials needed by the military.

Iran's major manufactured products are petrochemicals, steel and copper products.
Other important manufactures include automobiles, home and electric appliances, telecommunications equipment, cement and industrial machinery.
Iran operates the largest operational population of industrial robots in West Asia.
Other products include paper, rubber products, processed foods, leather products and pharmaceuticals.
In 2000, textile mills, using domestic cotton and wool such as Tehran Patou and Iran Termeh employed around 400,000 people around Tehran, Isfahan and along the Caspian coast.

A 2003 report by the United Nations Industrial Development Organization regarding small and medium-sized enterprises (SMEs) identified the following impediments to industrial development:
Lack of monitoring institutions;
Inefficient banking system;
Insufficient research & development;
Shortage of managerial skills;
Corruption;
Inefficient taxation;
Socio-cultural apprehensions;
Absence of social learning loops;
Shortcomings in international market awareness necessary for global competition;
Cumbersome bureaucratic procedures;
Shortage of skilled labor;
Lack of intellectual property protection;
Inadequate social capital, social responsibility and socio-cultural values.

Despite these problems, Iran has progressed in various scientific and technological fields, including petrochemical, pharmaceutical, aerospace, defense, and heavy industry.
Even in the face of economic sanctions, Iran is emerging as an industrialized country.
Large-scale factory manufacturing began in the 1920s. During the Iran–Iraq War, Iraq bombed many of Iran's petrochemical plants, damaging the large oil refinery at Abadan bringing production to a halt. Reconstruction began in 1988 and production resumed in 1993. In spite of the war, many small factories sprang up to produce import-substitution goods and materials needed by the military.
Iran's major manufactured products are petrochemicals, steel and copper products. Other important manufactures include automobiles, home and electric appliances, telecommunications equipment, cement and industrial machinery. Iran operates the largest operational population of industrial robots in West Asia. Other products include paper, rubber products, processed foods, leather products and pharmaceuticals. In 2000, textile mills, using domestic cotton and wool such as Tehran Patou and Iran Termeh employed around 400,000 people around Tehran, Isfahan and along the Caspian coast.
A 2003 report by the United Nations Industrial Development Organization regarding small and medium-sized enterprises (SMEs) identified the following impediments to industrial development:
Lack of monitoring institutions;
Inefficient banking system;
Insufficient research & development;
Shortage of managerial skills;
Corruption;
Inefficient taxation;
Socio-cultural apprehensions;
Absence of social learning loops;
Shortcomings in international market awareness necessary for global competition;
Cumbersome bureaucratic procedures;
Shortage of skilled labor;
Lack of intellectual property protection;
Inadequate social capital, social responsibility and socio-cultural values.
Despite these problems, Iran has progressed in various scientific and technological fields, including petrochemical, pharmaceutical, aerospace, defense, and heavy industry. Even in the face of economic sanctions, Iran is emerging as an industrialized country.
Economy of Iran