Rönesans Holding Prepares to Become Petrochemical Producer
Rönesans Holding, alongside its primary operations in construction, is entering a new sector which it has been preparing for since 2013 and is readying itself to become an international petrochemical producer in the industrial investment field.
The Ceyhan Polypropylene Production Facility, which Rönesans will bring to life with a USD 1.4 billion investment alongside strong international partners, will be one of the largest greenfield industrial investments ever undertaken by the private sector in Turkey in a single transaction.
The facility, which will begin construction at the end of 2020 in the Ceyhan Petrochemical and Industrial Zone, stands out as one of the most significant industrial investments undertaken by a Turkish company in recent years.
When the Ceyhan Polypropylene Production Facility is completed in 2023, it will reduce Turkey's current account deficit by USD 250 million.
Signatures were affixed to the project's international official partnership and licensing agreements. Among the project's main partners are Sonatrach, Algeria's national energy company, and GS E&C, a South Korean engineering, procurement and construction (EPC) firm.
The technology licensors for the Ceyhan Polypropylene Production Facility will be UOP Honeywell, of U.S. origin, and LyondellBasell, of Dutch origin.
The official partnership signing ceremony held at Çırağan Palace on 26 September was attended by Turkey's Minister of Energy and Natural Resources Fatih Dönmez, Algeria's Minister of Energy Mohamed Arkab, Rönesans Holding Chairman Dr. Erman Ilıcak, Sonatrach CEO Rachid Hachichi, GS Group CFO Tae-jin Kim, UOP EAFSU General Manager Nigel Orchard and LyondellBasell Licensing Director Deputy Maurizio Bacci.
Turkey's Minister of Energy and Natural Resources Fatih Dönmez:
"As a country, we continue to undertake significant moves in every area of energy and to set new records in domestic resource production. For Turkey, the growth story of 2023 will revolve around energy independence. Today we have gathered for the signing ceremony of the Ceyhan Polypropylene Production Facility, which Rönesans Holding will establish together with leading companies in the world, and we feel the pride and joy of reaching yet another one of our targets with this project. The long-term agreement reached by Rönesans Holding and Sonatrach demonstrates that Turkey continues to be a safe harbor for investors." he said in expressing his views.Algeria's Minister of Energy Mohamed Arkab:
"The partnership between Rönesans and Sonatrach will strengthen both countries' positions in the polypropylene field. This cooperation is an opportunity for both countries to increase their strength in the energy sector, develop both countries' economies and further strengthen their friendship." he said.Rönesans Holding Chairman Dr. Erman Ilıcak:
"We are embarking on a project that will bring value-added production to Turkey. Over the past 10 years, we have built important industrial facilities for many national and international energy and petrochemical companies. We will apply the knowledge and experience we have accumulated in this field to our investment in the petrochemical sector, which is among those areas where our country has the largest foreign trade deficit." he said. Dr. Erman Ilıcak stated that given high polypropylene imports and rising consumption demand, Rönesans Holding's target is to minimize Turkey's dependence on foreign sources in the petrochemical field and to focus on exports, and he continued his remarks as follows: "The Ceyhan Polypropylene Production Facility will replace one-fifth of Turkey's polypropylene imports and will contribute USD 250 million positively to the current account deficit. At the same time, we view the project we will implement with a USD 1.4 billion investment at the Ceyhan Petrochemical Industrial Zone, which we will operate, as a beginning." he said.Rönesans Investments Group Chairman Kamil Yanıkömeroğlu:
"A large portion of our country's polypropylene consumption takes place within a 200 km radius of Ceyhan. Gaziantep, approximately 180 km away from the Ceyhan Polypropylene Facility, is among the world's cities with the highest polypropylene consumption. Polypropylene consumption in the city's industry, which is an important raw material, corresponds to approximately two-thirds of Turkey's total consumption. We chose Ceyhan because of its coastline, proximity to the port area and proximity to regions with high polypropylene demand." he said.Advertisement
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