SOCAR Polymer’s Polypropylene Plant starts export of its products

Baku. 5 October. REPORT.AZ/ SOCAR Polymer LLC’s Polypropylene Plant in Sumgayit Industrial Park today starts to export its products, said the SOCAR Polymer Director General Farid Jafarov, Report informs.

According to him, firstly, 170 tonnes of products are planned to be exported to Turkey. The export capacity of the plant is planned to reach 15,000 tonnes by the end of the year.

Jafarov said that the plant has produced nearly 6,000 tonnes of polypropylene so far. He noted SOCAR Trading’s role in successful implementation of SOCAR Polymer project and export of the first production: "The successful implementation of the project was mainly ensured through the state support. As a result of tax concessions, infrastructural support of the state, nearly AZN 200 million was saved. Taking into consideration the first sale, which is carried out today, it’s needed to underline SOCAR’s commercial support. As you know, SOCAR Trading has brought additional $1.5 billion to the state budget by increasing Azerbaijani oil price compared to other oils, including Brent. As SOCAR Polymer, we see significance of being a part of a big centralized trading system. As is known, the new producers, particularly, polymer producers have to sell their products at 10-15% discount in order to get a market share. However, our products will be sold at the average market price and will bring hundred millions of dollars in the long run."

Jafarov added that the products will also be exported to Russia, Europe, Ukraine in the future.

The opening ceremony of the Polypropylene Plant was held on July 18 of this year with participation of Azerbaijani President Ilham Aliyev and Italian President Sergio Mattarella.

The polypropylene plant will produce three types of propylene (homopolymer, impact resistance so-polymer, statistical so-polymer) and 19 brands.

The project costs EUR 350 million.