Saudi’s Advanced Petrochemical Company and Turkish petrochemical trading firm Bayegan Group have agreed to jointly invest in building a Propane Dehydrogenation (PDH) and Polypropylene (PP) plant in southern Turkey
After signing a MoU, Bayegan's chairman Ercument Bayegan stated that the firm would establish the plant jointly with Advanced Petrochemical with a US$1 billion investment.
The project will not only include the construction of a state-of-the-art PDH-PP plant, but will also include the building of port facilities.
Construction is expected to start in the second quarter of 2013 and is scheduled to be completed by the fourth quarter of 2015.
The plant will have an annual capacity of 500,000 tonnes and will supply up to one third of the annual polypropylene needs of Turkey.
The plant will produce polypropylene from propane gas, which will be bought from producers in the Middle East and transported to Turkey by tanker.
This deal marks Advanced Petrochemical’s first overseas investment and is part of the firm’s wider growth strategy in the region, according to the company’s chairman Khalifa Abdullatif Al Mulhem.
Advanced Petrochemical will hold 70 per cent of the equity in the new venture with Bayegan holding the remaining 30 per cent.
