Azerbaijan: Petrochemicals Socar Polymer Constructs High-Density Polyethylene Plant
With the establishment of the new plant in Azerbaijan, the company aims to meet the growing demands of high-density polyethylene in the domestic market as well as export the remaining 75 % to the Turkish and European markets.
Baku/Azerbaijan – On February 18, the high-density polyethylene plant was officially opened within the Socar Polymer project in the Sumgayit Chemical Industry Park. The opening ceremony was attended by the President of the Republic of Azerbaijan Ilham Aliyev, Socar senior officials and representatives of the companies involved in the construction of Socar Polymer plant.
According to preliminary plans, the Socar Polymer plant will produce 184,000 tonnes of 10 varieties of polypropylene and 120,000 tonnes of 4 high-density polyethylene varieties. During the operation period, the plant is expected to bring 6.6 billion dollar revenues, 30 per cent of which will be the company's net profit.
In addition, the company is expected to pay a total of 600 million dollar taxes to the state budget. High-density polyethylene is still an imported product in the country, but now Socar's new industrial complex will fully meet the demand of the domestic market and export the remaining 75 % of the product to the Turkish and European markets.
According to preliminary estimates, the complex at its full capacity will increase the export revenues of the country's non-oil sector by 15 % and gross domestic product of the Absheron economic region by 14 %.
Socar Polymer is the first petrochemical company in Azerbaijan based on a public-private partnership. Shareholders of the firm are Socar (52.2 %), Vitol (19 %), Pasha Holding (9,9 %), Ecoland (9.8 %), Polymer Investments (5 %) and AKKIK (4.1 %). The project was delivered in cooperation with well-known brands such as Maire Tecnimont, Fluor, Lyondell Basell, Ineos, Golder Associates.