Rönesans Holding Secures Financing for Polypropylene Production Facility and Terminal Project

Rönesans Holding has secured financing for a polypropylene (PP) production facility and terminal project that will rank among the largest investments undertaken by Turkey's private sector.

This significant venture, with a total investment value reaching USD 2 billion, stands out as a strategic investment for enhancing Turkey's industrial capacity, reducing import dependence and strengthening its position in global trade.

The PP Production Facility and Terminal Facility have been financed separately by international financiers. The first is the PP Production Facility, to be implemented through a partnership between Rönesans Holding and Sonatrach. The facility, which will also have Sonatrach as its raw material supplier, will have a production capacity of 472,500 metric tons per year and will meet approximately 17 percent of Turkey's polypropylene demand.

"This investment is a testament to our commitment to sustainable and value-added investments that support Turkey's economic development and industrial objectives," said Erman Ilıcak, Honorary Chairman of Rönesans Holding, and continued: "The Ceyhan PP Facility will not only create hundreds of new job opportunities in the region but will also ensure a more sustainable and competitive supply chain for PP, a raw material of vital importance for industries in Turkey and Europe. Moreover, the fact that the project is entirely financed with foreign capital demonstrates our competence in attracting international investment and will support inflows of foreign direct investment and financing to Turkey."

Rachid Hachichi, CEO of Sonatrach, said the following on the matter: "In making our decision to invest in Turkey, the presence of a dynamic and growing PP market in Turkey was instrumental. This location stands out as an ideal position with its established and continuously developing industry. In-depth research demonstrates positive economic expectations."

The second investment will be a liquid cargo terminal facility developed jointly with Stolthaven Terminals, the terminal services subsidiary of Stolt-Nielsen. The terminal facility will provide terminal and raw material storage services both to the PP production facility and to potential future customers.

Speaking on the matter, Guy Bessant, Chairman of Stolthaven Terminals, expressed satisfaction at being partners with Rönesans Holding in this important project and said the following:

"Stolthaven Terminals has more than 50 years of experience in the safe and efficient transportation and storage of liquid and gas raw materials and proven expertise in developing complex, large-scale storage projects. This terminal will not only provide storage for the Ceyhan PP Facility but, as part of the DAPEK Industrial Zone, will be able to provide storage and logistics solutions to local and international companies in the future."

STRONG PARTNERSHIPS AND SUSTAINABLE PRACTICES
Both projects will use state-of-the-art environmentally friendly technologies to ensure sustainability and production efficiency. The PP production facility will target the lowest greenhouse gas emissions per unit of PP produced worldwide, utilizing 100 percent renewable electricity and high-efficiency production methods.

The Ceyhan Polypropylene (PP) Production Facility and Terminal project attracted strong international interest with a total of USD 1.3 billion in international financing.

For the PP Production Facility, financing was secured from a consortium of international commercial banks including ING (general coordinator & documentation bank), BBVA, DenizBank AG – Austria, DZ BANK and The Arab Energy Fund - TAEF (formerly Apicorp), along with the U.S. International Development Finance Corporation (DFC) under Cesce insurance. Deutsche Bank served as Cesce coordinator for this transaction. For the terminal, financing was provided by Vakıfbank as well as ING and BBVA under Cesce insurance.

ECONOMIC IMPACT AND CONTRIBUTION TO REGIONAL DEVELOPMENT
Turkey is one of the world's largest polypropylene markets, driven by demand from major sectors such as automotive, textiles and packaging. Although Turkey's total annual PP consumption is approximately 2.7 million tons, current local production stands at approximately 100,000 tons.

The PP Production Facility will be strategically located in the DAPEK Industrial Zone. While supporting the local economy, the project will reduce Turkey's external trade deficit by approximately USD 300 million annually and provide logistical and financial advantages. It is expected to provide permanent employment for up to 4,500 people during the construction phase and 300 people during operations.

The project also includes initiatives aimed at expanding qualified employment opportunities and business skills. Programs implemented, including a vocational school established for the facility, will support education and skills development in the region while contributing to socio-economic development.