SOCAR intends significantly increase Petkim share at Turkish petrochemical products market
Azerbaijan, Baku, April 16 / Trend, E. Ismayilov /
After the construction of oil-processing plant of SOCAR (State Oil Company of Azerbaijan) in Turkey, the share of petrochemical complex Petkim at the Turkish market will reach 40 percent, SOCAR vice-president on processing David Mammadov said at a meeting with members of the Caspian-European Integration Business Club (CEIBC).
"Petkim, in which today we own a controlling stake, provides 24 per cent of the demand for petrochemical products in Turkey. After implementing the plan on construction of oil refinery for providing Petkim with feed stock, we can achieve 40-percentage share," - Mammadov said.
According to Mammadov, a new oil refinery in Turkey will be constructed within five years after receiving permission for construction. A feasibility study of the project has already been prepared, as well as the Turkish government approved a report on environmental impact. Currently, it is expected to submit a permit for construction of the oil refinery.
According to Mammadov, despite the fact that Petkim operates in a competitive conditions, the enterprise's work is effective, because Turkey - a country with a population of 80 million has only four oil refineries and one petrochemical plant.
Mammadov said that the main range of Petkim production are different types of polyethylene, pipes, special types of plastic coatings, polypropylene, glycols and other products. The total capacity of Petkim for plastics production is 1.2 million tons.
At present, Petkim operates almost at full capacity. Its capacity for ethylene is 520,000 tons per year, however, now it is able to produce 530,000-540,000 tons. In the future it is planned to increase production capacity of this type of product. According to calculations, without a significant investment it will be possible to increase production by 10-11 percent, Mammadov said
Currently, range of produced products is under review, and the range at the Turkish market will be expanded in case of need," - Mammadov said.
Formerly the Turkish Administration for Privatization approved the alliance Socar/Turcas Petrol/Injaz Projects as the winner of the tender on the sale of the 51% share of Turkish Petrochemical Holding 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 only producer of these goods in Turkey exporting the fourth part of the output.