Turkish firm's petrochem project to receive foreign investment

DAILY SABAH
ISTANBUL
Published 12.07.2019 00:29

One of Turkey's leading polyester manufacturers, Sasa, which was acquired by Erdemoğlu Holding in 2015, has received a partnership offer from seven foreign companies for the new petrochemical investment the company will make in the Yumurtalık industrial region of the Eastern Mediterranean province of Adana.

In a statement concerning the new investment project, Erdemoğlu Holding Chairman İbrahim Erdemoğlu explained that the petrochemical facilities, to be operational by 2031 - at a cost of $11.8 billion will produce 13 million tons of raw material and chemicals.

The new petrochemical plant, expected to decrease Turkey's current account deficit, will operate under Sasa and will consist of five different companies. Already in the planning phase, the company has received offers of partnership from seven firms, including two operational partners and five financial partners, the Erdemoğlu chairman said without mentioning the names of the interested parties.

The environmental impact assessment report for the new Sasa petrochemical facility is currently being prepared and will be finalized in October or November. Three of the five companies to be established for the operation of the new petrochemical investment have received investment demand from Japan, while the South Koreans expressed an intention to invest in the two companies. A Kuwaiti and a European firm also contacted Sasa executives for the investment. Erdemoğlu added: "The new petrochemical projects will create an additional 8,000 jobs and will reduce the current account deficit by $5.2 billion once completed. Sasa manufactured 350,000 tons of polyester in 2018, and the company aims to double that number this year and reach 1.4 million tons by 2020.

When Erdemoğlı Holding acquired Sasa in 2015, the company had a turnover of $400 million, and this year, the expectation is to raise the turnover to $786 million. Next year, the company plans to invest $410 million, while raising the turnover to $1.5 billion. In 2021, the firms will create 2,750 jobs and generate $1.9 billion in turnover.

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