Turcas to double Petkim output, raise revenue

10 December 2007 16:39  [Source: ICIS news]

PRAGUE (ICIS news)--Turkish petrochemical firm Petkim should double production to 6.4m tonnes/year from the current output of 3.2m tonnes/year under a $2m (€1.36m) investment plan, the new owners of the company said on Monday.

A spokesman for Turkey’s Turcas Petroleum - which has purchased a 51% majority stake in Petkim with State Oil Company of Azerbaijan (Socar) and Saudi Arabia-based developer Injaz Projects - said it was hoped the capacity increase could be achieved by 2015.

“This should see Petkim’s annual revenues rise from a yearly $1.5bn to $4bn,” he added.

The three partners have agreed to pay Ankara $2.04bn for control of Petkim.

Turcas anticipates that the stake could be transferred very soon in the new year but the union at Petkim is challenging the deal through the Turkish courts, arguing it is neither in the interest of workers nor the state.

The Turcas spokesman added that Socar is moving ahead with a plan to establish a refinery, at a cost of up to $5bn, near Petkim’s main production units in the west of Turkey.

This should supply an annual 6-8m tonnes/year of feedstock to Petkim.

Based in Izmir, Petkim employs around 4,000 people and runs a 520,000 tonnes/year ethylene cracker.

It makes a range of polyolefins, aromatics and chlor-alkali products as well as purified terephthalic acid (PTA) and phthalic anhydride (PA) at its plants in Aliaga and Yarimka.

($1 = €0.68)

By: Will Conroy
+44 20 8652 3214

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