Istanbul-based petrochemicals firm Bayegan Group plans to spice up home output of polypropylene by establishing a manufacturing facility in Türkiye’s southern province of Hatay, at a price of roughly $1.9 billion (TL 57.2 billion), in line with a report Tuesday.
Bayegan intends to construct a facility capable of produce 450,000 tons of polypropylene in Hatay’s Erzin district, the corporate mentioned in a mailed observe to Bloomberg.
The facility is predicted to fulfill roughly 20% of the annual polypropylene demand in Türkiye, which varies between 2 million and a pair of.5 million tons, thus decreasing imports of the polymer used within the nation’s well-known carpets.
“The investment is in line with Bayegan’s mission of expanding its business across the value chain,” it mentioned.
The fastened funding value of the plant was estimated at TL 27.7 billion in a authorities decree providing state advantages to the challenge in January final yr, or $1.5 billion on the trade fee then, in line with the Official Gazette.
That was for an annual manufacturing of 350,000 tons. The determine elevated to $1.9 billion tons as manufacturing capability was revised to 450,000 tons.
The plant in query is predicted to allow Türkiye, the highest importer of polypropylene after China, to save lots of about $500 million a yr, and assist it scale back the present account hole, in line with Bayegan.
Bayegan is the Turkish distributor of petrochemical merchandise, together with polypropylene.
According to the assertion, Switzerland-based BGN International, which is a world power and commodity dealer and one of many world’s largest liquified petroleum fuel (LPG) merchants, affiliated with Bayegan, would provide uncooked supplies to the power.
Underscoring the energy of native demand, one other group is already creating a $1.7 billion polypropylene plant not distant, in Adana’s Ceyhan.
Turkish conglomerate Rönesans Holding and Algeria’s Sonatrach are in search of to boost 1 billion euros ($1.1 billion) for the 472,500-ton-a-year challenge, in line with a Bloomberg report from Jan. 10. Bayegan dropped out of the Rönesans-Sonatrach challenge in 2018.
The agency mentioned it might tackle a associate for its personal challenge and is holding talks with potential traders.
“Currently, the project team is actively involved in exploring various options for potential collaborations and partnerships,” the corporate mentioned as a part of the assertion.
An analogous plan by Bayegan in 2012 to arrange a $1 billion petrochemical plant in southern Türkiye with a Saudi associate didn’t go forward.
Bayegan expects to signal an engineering, procurement and development (EPC) contract quickly, and development would then take 34 months, it mentioned.
Petkim Petrokimya Holding A.Ş., owned by Azeri crude oil large Socar, is the nation’s solely polypropylene producer and produces roughly 100,000 tons every year from a capability of 144,000 tons, in line with Pagev, an area group of plastics producers.
Source: www.dailysabah.com