Germany-based BASF, a leading chemical company, is planning an investment of $4 billion in Iran, said a report.

Together with an Iranian company, BASF wants to build new petrochemical plants near Iran's petrochemical and gas industry hub in Assaluyeh, Bushehr Province, added Iran Daily News, citing a Handelsblatt report.

In April, BASF signed a memorandum of understanding with National Iranian Oil Company on future cooperation, it said.

The German company has been in business with Iran since 1959. In addition to a sales office in Tehran, BASF maintains a polyurethane system house for production of plastics northwest of the capital, but its operation is currently very limited.

Additionally, Munich gas manufacturer Linde was also interested in investment worth billions of dollars in the Iranian petrochemical industry jointly with the Japanese Mitsui Group.

According to Handelsblatt, Linde CEO Wolfgang Büchele has been in "pre-business talks" with the Iranians for some time. Neither BASF nor Linde commented on the report, the paper said.

Iran wants to use its huge reserves of raw materials to establish itself as the largest supplier of basic chemicals in the Gulf, added the report.