02 May 2013 15:34 [Source: ICIS news]
LONDON (ICIS)--Turkey's fast growth rate will offer producers a unique growth opportunity in the country's petrochemical market over the next decade, Erste Group Bank said on Thursday.
The bank backed as “realistic” figures from sole major Turkish petrochemical maker Petkim that show the compounded annual growth rate (CAGR) in Turkey's petrochemical consumption is expected to be 7.4% for 2010 to 2015 and 9.1% for 2015-2023.
“Petrochemical consumption usually grows by 1.5 to 2.0 times the GDP growth in emerging economies,” said Erste analyst Tamas Pletser.
“Turkey’s current annual consumption of 61 kg/capita of petrochemical products is roughly 40% of the west European level of around 150 kg/capita,” he added.
Petkim is a price taker that presently has a 25% share of the domestic petrochemical market, Pletser said.
Owned by the State Oil Company of the Azerbaijan Republic (SOCAR), Petkim is investing approximately $10bn (€7.6bn) in creating a petrochemical 'supersite', complete with its own 10m tonne/year refinery for feedstock and container port, on a peninsula in Aliaga, near Izmir on western Turkey’s Aegean coast.
The production complex should enable Petkim to gradually more than triple its petrochemical capacity to 10m tonnes/year by 2023.
($1 = €0.76)
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