Petkim plans to establish two new enterprises

Baku. 1 May. REPORT.AZ/ Aromatics and Purified Terephthalic Acid (PTA) enterprises are planned to be established in Petkim petrochemical complex (Turkey, Izmir).

Report informs, said Bilal Guliyev, Petkim Holding Deputy Director General for Projects and Maintenance.

"After launching of STAR oil refinery, which is under construction in Petkim peninsula, we plan to implement a new project on the basis of the raw material obtained. This project is a new Aromatics Plant. Mainly, paraxylol and benzol will be produced in the plant. The other new plant will produce 1.2 mln tons of purified terephthalic acid using about 800,000 tons of paraxylol. This product is mostly used as raw material to manufacture plastic packaging and fibers for textile", B.Guliyev said.

According to him, Turkey imports about 700,000 tons of terephthalic acid per year: "Import of this product is expected to exceed 1 mln tons in the next 5 years. By realizing this project, we aim to reduce Turkey's dependence on imports and increase Petkim market share".

Petkim official said that it is believed that the Turkish Government will also provide support to implement the project: "Thus, the Turkish Government has developed new Incentive Packages as well as strategic approach exists towards the projects to reduce import. Petkim financial performance is high, so we can met a part of the project. However, possibility of creating joint ventures with potential partners interested in the project will be evaluated. Turkish state-owned companies are not excluded to be shareholders".

According to him, projects each costs approximately 1 bln USD: "However, exact results will be known after completion of the Feasibility Study. These projects will be implemented in phases. Firstly, Aromatics Plant will be put into operation. Taking into account that product of one enterprise is raw material for the other, then establishment of the other will be carried out in parallel as possible. The purpose is to obtain terephthalic acid from the raw material of the Aromatics Plant, which is in great demand in Turkey", B.Guliyev added.

The Deputy Director General said that the enterprises will be commissioned in stages after 2022.