Project-Based State Aid for Polypropylene Production Facility Investment

A presidential decree has brought into effect a decision regarding project-based state aid for a polypropylene production facility investment to be built in Adana province. İKMİB Board Chairman Adil Pelister issued a written statement regarding this decision, which was finalized by presidential decree on 4 September 2019 and published in the Official Gazette on 5 September 2019. In his written statement, Pelister pointed out that 82 percent of raw material supply for plastics and plastic products—one of the chemical industry's top export subsectors—comes from abroad, and emphasized the necessity of making petrochemical production and its derivatives our first priority in chemical investments. Pelister stated: "As İKMİB, we consult with our Ministries on these matters related to the chemistry sector, and we express our proposals and our sector's needs. In this context, establishing large-scale petrochemical facilities in the Çukurova region, completing major investments to be undertaken in the Ceyhan Energy Specialization Industrial Zone and establishing an integrated production structure including basic petrochemicals, supporting companies that can source composite materials with very high heat resistance needed for nuclear power plant construction from domestic production, and utilizing biomass and waste efficiently as alternative inputs in chemical production—our proposals were included in the Eleventh Development Plan," he stated.

Continuing in his written statement, İKMİB Board Chairman Adil Pelister said: "Under the leadership of our Presidency, the Eleventh Development Plan designated our Ceyhan Industrial Zone as a priority investment area for petrochemicals.

Ceyhan Polypropylene Production A.Ş. will implement a polypropylene production facility project with an annual capacity of 450,000 tonnes in the Ceyhan district of Adana, and has qualified for state support under the Decision on Providing Project-Based State Aid for Investments. The state's support for this major investment in the petrochemical sector is very welcome news for our industry. The investment is expected to be completed within 5 years. We wish success to Rönesans Holding, the owner of this investment that will provide added value to our country, and I thank everyone who contributed to the project, particularly our President and the relevant Ministries. I hope the groundbreaking will take place soon and the project will be completed. As İKMİB, we will continue to work for the development of our sector and to support our companies. It is important to take concrete steps regarding this and similar high-volume investments. We believe these projects will accelerate our sector and contribute to reducing import dependency in our subsectors. We expect large-scale investments in our chemistry sector to increase in the coming period," he concluded.