SOCAR to build two new chemical production facilities in Azerbaijan
Azerbaijan, Baku, September 19 /Trend, E.Ismaylov/
The active phase of the construction of plants for the production of polypropylene and polyethylene at low pressure will begin in 2014, SOCAR's Azerkimya production association head Mukhtar Babayev told Trend on Wednesday.
According to him, SOCAR in 2012 signed a contract to build a plant for the production of polypropylene and high density polyethylene with an annual capacity of 200,000 and 100,000 tons respectively.
"Construction of these facilities is planned in the Sumgait Chemical Technology Park," he stressed.
The head of Azerkimya, said that on the basis of the contract, the basic project is already developed, equipment ordered and a large amount of technical work is being carried out. Negotiations with the licensors were held, an agreement on the provision of technical support was reached.
At present, the work is done for the detailed design and selection of contractors for construction work and other technical services, work on the construction site on dismantling and demolition of the existing engineering structures and communications, as well as geological and exploration work on the site of the future buildings.
"The implementation of the projects belonging to the SOCAR Polimer Company is established. Some of the equipment of the facility will be delivered to the construction site before the end of this year," Babayev stressed.
Products of polypropylene production and high density polyethylene are widely used in such fields as agriculture, medicine, chemical and engineering industries, construction, electrical engineering, electronics and manufacturing of household goods, Babayev said.
According to him, production of these chemical products will give impetus and conditions to create new production facilities on the basis of Sumgait Chemical Technology Park.
SOCAR Vice President for Economic Affairs Suleyman Gasimov earlier said that the State Oil Company has already established an enterprise with authorized capital of $51 million. SOCAR plans to keep its share in this project at 51 per cent and the remaining part will be offered to private companies.
SOCAR plans to attract up to $200 million from local banks within creation of polymer production in Azerbaijan. The total volume of anticipated investments in SOCAR Polimer plant in Sumgait Chemical Technology Park amounts to $500 million.
According to him, nearly 30 per cent of investments in this project will be attracted from shareholders and a large part is planned to be attracted from banks and through issuing of long-term nominal bonds which will be placed in the country's domestic market.