BAKU, Azerbaijan, March 18
By Nargiz Ismayilova – Trend:
The volume of investments of the Turkish biggest foreign investor – SOCAR Turkey will reach $19.5 billion soon, Director General of Petkim petrochemical complex of Azerbaijan’s State Oil Company SOCAR Anar Mammadov said, Trend reports.
“SOCAR Turkey’s investment projects are complementary,” Mammadov added.
“For this purpose, an integrated process that covered all companies for more efficient production was launched,” the director general added. “SOCAR Turkey Oil Refining and Petrochemical Business Association, SOCAR Turkey Gas Business Association, SOCAR Turkey Innovative Technology Business Association and SOCAR Turkey Logistics Business Association have been created."
“Petkim, STAR refinery, SOCAR Depolama and SOCAR distribution companies in Aliaga town of Izmir province operate under the name "SOCAR - Turkish Refining and Petrochemical Association".
“I can say that STAR refinery was the most specific indicator of the benefits of this integration,” Mammadov said. “In our financial results we also saw the success of the integration of STAR refinery and Petkim in October 2018. Instead of importing raw materials from refineries in different parts of the world, Petkim saved logistics costs by receiving naphtha directly from STAR refinery through the pipeline. This advantage positively affects Petkim's balance sheet."
“The raw materials received by Petkim from STAR refinery reached 554,000 tons in the first nine months of 2019,” Mammadov added. “Instead of raw materials of different quality that were previously imported, receiving high-quality naphtha from STAR refinery means an increase in the volume of production, productivity and guaranteed supply of raw materials for Petkim. Moreover, the partnership services in our business union and our joint infrastructure created an additional impetus to strengthen our cooperation and increase profitability."
The director general said that additional investments worth about $100 million have been made in Petkim a year, reaching a total of $1 billion since 2008.
Petkim manufactures plastic packaging, fabrics, PVC, detergents, and being the only Turkish manufacturer of these products, the company exports a quarter of its production.
The complex includes 14 factories manufacturing 20 different types of products. Petkim's production capacity is 3.6 million tons per year.
Equity participation of shareholders in the complex’s capital is as follows: SOCAR Turkey Petrokimya A.S. - 51 percent, and 49 percent of the shares are in free float on the stock exchange.
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