Azerbaijan, Baku, 30 May / corr Trend Y.Aliyev / A ceremony to hand over 51% shares of the Turkish petrochemical holding Petkim, purchased by the alliance of SOCAR (State Oil Company of Azerbaijan) Turcas Petrol/Injaz Projects, was held in Turkey.
A takeover contract was signed by Rovnag Abdullayev, the President of the SOCAR, Erdal Aksoy, the Executive Director of Turcas and the representatives from privatization and social privatization organizations of Turkey.
SOCAR/Turcas/Injaz acquired 51% share of the holding at $2.04bln. The alliance is going to launch a concrete work at the enterprise in the second half of 2008.
From the second half of 2008 onwards, the alliance of managing companies intends to set up work at the enterprise, an official of SOCAR said. The alliance intends to invest $10bln in the enterprise in the next seven to eight years.
Investments by the alliance SOCAR/Turcas/Injaz to modernize 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 after 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 6-8mln tons oil per year.
Petkim Petrokimya Holding is specialized in the production of plastic packages, fabric, detergents and is the sole producer of these goods in Turkey, exporting one fourth part of its output.
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