TURKEY: Turkish Rönesans, Sonatrach to invest USD 1.2 billion in petrochemical plant
Turkish conglomerate Ronesans Holding and Algeria’s Sonatrach have announced they will invest USD 1.2 billion to build a petrochemical facility in southern Turkey. In a press conference in Istanbul on 28 November 2018, the companies said that the facility would be built in the Ceyhan industrial zone in Adana in a bid to produce polypropylene, a product on which Turkey is highly dependent on imports.
Industry and Technology Minister Mustafa Varank said that the facility would produce 450,000 t/y of polypropylene when it becomes fully operational in 2023 - more than one-fourth of Turkey’s demand. He noted that Turkey imported $38 billion worth petrochemical products last year with the petrochemicals sector posting a USD 13 billion foreign trade deficit, which was 17 % of the country’s total trade deficit. “We have highly depended on imports in a series of petrochemical products, including plastics. In this vein, such investments are of great importance for us on the way to reducing Turkey’s current account deficit and enabling Turkey to achieve a production-based growth model,” Varank said.
Rönesans Holding President Erman Ilıcak said that more than USD 1.2 billion would be invested in the project. “This project will enable Turkey to cut its trade gap by USD 450 - 500 million on yearly basis,” he also noted. Nearly 2,500 jobs are planned to be created during the construction phase, according to the project partners. Sonatrach will provide propane gas for 15 years to the facility, they also noted, adding that the company’s share in the project would be around 30 %.
Source: “Hurriyet Daily News”, Ankara; 29 Nov 2018
(Syed Rashid Ali, Karachi, Pakistan)