Turkey consortium to invest over $1bn in Petkim

Author: Prema Viswanathan


SINGAPORE/LONDON (ICIS news)--Socar-Turcas-Injaz, the consortium which is to be awarded a 51% stake in Petkim, is planning to invest more than $1bn (€701m) in the petrochemicals major to make it competitive, a source close to the consortium said on Thursday.


In addition, the consortium plans to build a new refinery and mega power plant to guarantee feedstock supply for Petkim, the source added.


The consortium comprises State Oil Co of Azerbaijan (Socar), Turkish petroleum products distributor Turcas and Injaz, a Bahrain-based Saudi investment fund.


Petkim operates a 520,000 tonne/year cracker and produces polyolefins, aromatics, chlor-alkali products, purified terephthalic acid (PTA) and phthalic anhydride (PA) at its plants in Aliaga and Yarimka.


Ankara decided to cancel the sale of its 51% stake in Petkim to a Kazakhstan-based consortium to sell to to Socar-Turcas-Injaz, the second highest bidder, for $2.04bn.


Petkim was not immediately available for comment.


($1 = $0.70)