On loan from Gazprom SOCAR is building together with Pasha, Gilan and Azersun a plant amounting half a billion

On 19  June  in St. Petersburg within the framework of international economic forum Gasprombank  and SOCAR signed an agreement on financing the construction of plants for the production of polypropylene and high density polyethylene in Azerbaijan.

 According to the report on the website of Gasprombank, the agreement was signed by head of Gasprombank Andrey Akimov and  by the President of SOCAR , Rovnag Abdullayev.

The loan amount will be  $489 million for 10 years.

The contract has a total value equal to EUR350 million, and it relates to the realization of a 180,000 t/y (tons per year) polypropylene plant and relevant utilities and off sites facilities on a Engineering, Procurement and Construction (EPC) Lump Sum basis which will be located in the Sumgayit Petrochemical Complex.

The Sumgayit Polypropylene plant will be the first to be realized in Azerbaijan, enabling the country to grow its petrochemical industry entering the production of this segment of plastics market. Polypropylene is a basic product used for several consumer goods in a wide variety of applications, such as packaging, textiles, stationery, automotive components, electronic and electrical appliances, and several other uses. Plant is located within SCIP (Sumgait Chemical Industrial Park), which supports innovative industrial initiatives in Azerbaijan. 
SOCAR Polymer, a joint venture between SOCAR, Pasha Holding, Azersun Holding and Gilan Holding has been established in relation with construction of a plant manufacturing polypropylene (PP) and high density polyethylene (PE) products in  construction of the PE unit with 120 thousand ton/ year capacity and commencing operation in 2018. Lyondell Basel is the licensor of Polypropylene unit, while Ineos Company is the licensor of the HDPE unit. It is planned to sell the 30% of manufactured products in local market, exporting the remainder to Turkey, Europe and CIS. -02D-