Profitability of Turkish Petkim to Increase after Transferring Its Assets to Alliance

Oil&Gas Materials 3 April 2008 15:48 (UTC +04:00)
Profitability of Turkish Petkim to Increase after Transferring Its Assets to   Alliance

Azerbaijan, Baku, 3 April / Trend / The profitability of the Turkish petro-chemical holding Petkim will increase this year after it transferred to energy company Turcas TRCAS.IS, the Chairman of Turcas Board of Directors, reported to Reuters.

In January alliance SOCAR/Turcas/Injaz had to acquire 51% share in Petkim, which totaled $2.04bln in July. However, the deal was postponed. Turcas intends to conclude the deal this year. "Even if our revenues do not increase in the first year, we plan to make the activity of the enterprise more effective," the Executive Director of Turcas, Erdal Aksa, said.

Earlier Aska said that by 7 May SOCARr/Turcas Petrol/Injaz will acquire 51% shares of Petkim. The payment for the acquired share will be made known on 14 April, he said. The alliance intends to invest $10bln in the enterprise in the next seven to eight years. Two electric power stations will be constructed on the basis of the enterprise.

Investments by the alliance SOCAR/Turcas/Injaz to modernise the production capacity of the Turkish Petrochemical Holding Petkim will increase the enterprise's share in Turkey's market from the current 27% to 40%. The investments of the alliance over the next 1 to 2 years may total $50-60bln. 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%. The annual increase of chemical product demand in Turkey totals 12%.

Investments may pay for themselves in the next 5-6 years, depending on the market. SOCAR/Turcas/Injaz alliance intends to construct a refinery near Petkim to supply raw material to the enterprise. Initially the capacity of the refinery will make 6mln tons of oil per year.

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. The capitalization of the company comprises approximately $1.6bln.