Turkey eyes to create JV with Azerbaijan for production of fertilizers

Business Materials 24 May 2019 14:39 (UTC +04:00)

Baku, Azerbaijan, May 24

By Matanat Nasibova - Trend:

Turkish company “Gubretas” (Gubre Fabrikalari T.A.S.) plans to establish a joint venture (JV) with SOCAR Turkiye Enerji (Turkish subsidiary of Azerbaijan’s state oil company SOCAR) for operations on the sale and export of urea, the company’s Director General Ibrahim Yumakli told Trend.

He said that the work in this direction is progressing actively.

"We plan that the new joint venture in Turkey will start operating by the end of this year, and its activity will be carried out on an equal footing - 50 to 50 percent," he noted. "According to our calculations, the SOCAR Carbamide plant located in Sumgait city will produce about 600,000 tons of urea and roughly 70 percent of the production will be exported. In particular, the Turkish-Azerbaijani JV will purchase and send urea produced in Azerbaijan to foreign markets."

SOCAR commissioned a carbamide plant in Azerbaijan in January 2019 and investments in the project amounted to 800 million euros.

Gubretas was founded in 1952 to supply fertilizers for the needs of Turkey's agricultural sector. The company provides Turkish consumers with over 100 types of products through 2,800 distribution points.

SOCAR Turkiye Enerji currently owns the controlling stake (51%) of the petrochemical complex of Petkim Petrokimya Holding in Turkey.


Follow the author on Twitter: @MatanatNasibova