The company aims to establish a propane dehydrogenation and polypropylene production facility with an investment of approximately 1.9 billion dollars.
According to the written statement made by its owner Ercüment Bayegan, BY Polimer Sanayi ve Ticaret A.Ş., a special purpose company, was selected for the management of the facility, which will produce 450 thousand tons of polypropylene annually. was established. According to the decree signed by President Recep Tayyip Erdoğan in the Official Gazette last year, the project will also benefit from state aid.
The fixed investment cost of the project increased to 1.9 billion dollars with the revised production capacity, instead of the initially estimated 1.5 billion dollars. The company aims for this facility to meet approximately 20% of Turkey's polypropylene demand and reduce the country's current account deficit.
Bayegan plans to start active work in 2024 after completing the environmental impact assessments of the project. In addition, it will evaluate partnership opportunities in the project by holding meetings with potential investors.
The raw material supplier of the facility will be provided by BGN International, a subsidiary of Bayegan. Polypropylene is known as an important material used in carpet production, packaging, medical equipment and defense industry.
The region where the investment will be made will be close to Turkey's largest polypropylene market and will contribute to the southeastern province known for its carpet production. While it was stated that the construction will last 34 months after the EPC contract is signed, it was stated that negotiations regarding the financial package and EPC contractors continue.
Bayegan had previously experienced a situation where he planned to realize a similar project in Saudi Arabia, but it did not materialize. The company is currently evaluating a joint venture between Rönesans Holding and its Algerian partner Sonatrach, which plans to build a petrochemical plant in Ceyhan.
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