Investments in Petkim's development important for Turkey

Oil&Gas Materials 5 April 2011 12:52 (UTC +04:00)

Azerbaijan, Baku, April 5 / Trend E.Ismayilov /

Large investments in the development of the Turkish petrochemical complex Petkim are creating conditions for increasing employment in Turkey and improving welfare. Petkim is co-owned by the State Oil Company of the Azerbaijan Republic (SOCAR), the company reports.

Petkim is to invest in 2011 in construction of the wind power-regeneration station with a capacity of 25 megawatts, which will be used to supply additional energy required in terms of increasing the enterprise's capacity. The company has already received a license for the construction of the station.
A major investment project is the construction of a new refinery, which will provide Petkim with raw materials. The license to build a new refinery was received in 2010. The foundation of a new processing facility will be laid in the near future, Petkim said.

The company reported that the petrochemical products make up 10 percent of the semi-finished products, amounting to $72 billion needed in the production process, which Turkey imports. The complex should produce competitive products to prevent this.

The cost of a new refinery is projected at $4.8-$5.2 billion. Its total refining capacity will hit 10 million tons per year and an output of finished goods of 92-93 percent.

In 2008, the alliance between SOCAR and Turcas Petrol-Injaz Projects has won a tender to sell a 51 percent stake of chemical concern Petkim, offering $2.04 billion. Now Turkey imports 70-75 percent of the necessary chemical products. Investments of SOCAR-Turcas-Injaz to the development of Petkim will reduce imports by 30 percent.

The company Petkim Petrokimya Holding manufactures plastic packaging, fabric, PVC and detergents. It is the only Turkish producer of such products. The company exports a quarter of its production.

The total refining capacity output is 10 million tons of finished goods per year, at 92-93 percent.