Azerbaijan, Baku, April 23 Trend Capital
The Turkish petrochemical holding Petkim whose 51 percent of stakes belong to the State Oil Company of Azerbaijan Republic (SOCAR) in alliance with Turcas will build a petrochemical plant in Iran which will produce methanol and polyethylene. Turcas Board of Directors Chairman Erdal Aksoy said, Petkim’s official Web site reported.
The Turkish Petkim company and the National Petrochemical Company of Iran signed a contract to construct the plant. A joint enterprise with 50/50 stakes will be formed with this purpose.
Capacity of methanol producing plant is 1.6 million tons per year and polyethylene – 300,000 tons.
Aksoy said the holding is interested in implementing projects in other countries. The negotiations are being held with Egypt and Saudi Arabia.
Forming the enterprise in Iran is explained with low cost of raw material (gas) in the Persian gukf countries and low cost of power.
Earlier, SOCAR in alliance with Turcas Petrol and Injaz Projects possesses 51 percent participation share in Petkim. Turkey currently imports 70-75% of the necessary chemical products, but developing Petkim, the investment alliance SOCAR/Turcas/Injaz will provide an opportunity to increase the import up to 30%.
Petkim Petrokimya Holding is specialized in the production of plastic packages, fabric, detergents and is the only producer of these goods in Turkey exporting the fourth part of the output.
SOCAR intends to by 2015 increase the volume of the incomes of this enterprise to $4 billion from $1.9 billion today. Now the production capacity of this holding is 3.2 million tons. By 2015 this index will grow to 6.3 million tons. Today the needs of Turkey for the petrochemical production equal $6.1 billion, and this demand will annually grow 11-12 percent. Today the production of Petkim covers nearly 25 percent of the market of Turkey.
As a result of the measures planned to be taken, the production of Petkim will cover 40 percent of the Turkish market. SOCAR invested approximately $2 billion in the development of petrochemical complex.
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Source: capital-en.trend.az, April 23 2009