AZERBAIJAN: Socar Polymer to sell its output through sub-companies

Output of Socar Polymer LLC from two Sumgait plants under construction will be sold at local and foreign markets through other sub-companies of the State Oil Company of Azerbaijan Republic (Socar).

Socar Polymer head Farid Jafarov says that the Socar Marketing & Economic Operations Department will deal with sales of future products of the company (polypropylene and high density polyethylene) at the local market and Socar Trading at foreign markets.

"The relevant contracts have already been signed," Jafarov added.

Marketing studies have shown that 30% of the output can go to the domestic market and the rest for export.

The plants will be built turnkey by Italian company Maire Tecnimont by 2018.

High-density polyethylene (HDPE) will be produced on the basis of INEOS Innovene S technology in volume of 120,000 tons and polypropylene – 180,000 tons a year. The project will be financed mainly by  the USD 489 million loan of Russia’s Gazprombank, while total project costs on the two plants is USD 700-750 million.

"We’ve already received two tranches from Gazprombank for the project. Funds are transferred as necessary," Jafarov said.

Socar Polymer was established by Socar with share capital of USD 100 million. Since late 2013 Socar owns 51% of shares of the company, while 49% are distributed between Pasha Holding, Gilan Holding and Azersun Holding.

Source: “Azerbaijan Business Center”, Baku; 26 Apr 2016

(Syed Rashid Ali, Karachi, Pakistan)