5 Oct 2018 19:19

SOCAR ships first lot of propylene to Turkey, to export 15,000 tonnes in Oct-Dec

BAKU. Oct 5 (Interfax) - SOCAR Polymer, a subsidiary of Azerbaijani state oil company SOCAR, has shipped out the first lot of polypropylene produced at the new plant in Sumgait.

"Today SOCAR Polymer is shipping out the first export shipment to Turkey amounting to 170 tonnes. Before the end of 2018, export of 15,000 tonnes is planned," SOCAR Polymer General Manager Farid Jafarov told journalists on Friday.

The plant started up operations in July this year. It has capacity to produce 184,000 tonnes of polypropylene a year. It will sell 30% of its output in Azerbaijan and the rest abroad, chiefly in Turkey, Russia, Europe and possibly China. Jafarov said 6,000 tonnes of output has been produced so far.

SOCAR Polymer is also building a plant to produce up to 120,000 tonnes of high-density polyethylene per year in Sumgait that is scheduled for launch in December 2018.

The plant will deliver "about 35%-40% of output" to the domestic market and export the rest, mainly to Turkey, Russia and Ukraine.

Jafarov said SOCAR Polymer expects sale of the polypropylene and high-pressure polyethylene to generate $350 million in revenue a year. "About 75%-80% of output will be exported," he said, adding that this would boost Azerbaijan's non-oil exports by 16%.

The production facilities cost $816 million to build, of which 60% was financed with a 10-year loan of $489 million from Russian Gazprombank. The remaining 40% was provided by SOCAR and Vitol (a SOCAR Polymer shareholder), as well as Pasha Holdinq, Gilan Holdinq and Azersun Holdinq.

Italy's Maire Tecnimont S.p.A is the Engineering, Procurement and Construction contractor.

SOCAR currently owns 57% of SOCAR Polymer. Other shareholders include Vitol Black Sea V.L.L. and Ecoland.