SOCAR Builds Polyethylene Production Plant for $ 180 million

The cost of the contract signed between SOCAR and the Italian company Maire Tecnimont on the construction of a plant for the production of high-density polyethylene is $ 180 million.

The Italian company will execute the contract for EPC (Engineering, Procurement and Construction) within the SOCAR Polymer project in the city of Sumgait.

The contract was signed by the head of SOCAR Rovnag Abdullayev and the Chairman of the Board of the Council of Maire Tecnimont Fabrizio Di Amato.

“Works on construction of the plant for the production of high density polyethylene with capacity of 120 thousand tons per year will start already this year,” said the head of SOCAR.

The contract provides for the provision of comprehensive technical services, procurement, installation and construction of the project until the commissioning, performance tests.

The launch of the polyethylene plant is scheduled for the end of 2018.

After meeting domestic demand the rest of the products will be exported. According to the preliminary marketing plan, the production will be exported to the CIS countries, Western Europe, Turkey, etc.

The export of the plant’s products will be arranged by SOCAR Trading.

The construction project for factories for the production of high density polypropylene and polyethylene in Azerbaijan is arranged by SOCAR Polymer.

The total cost of the plant construction project is $ 750 million, of which 40% is equity and 60% is borrowed funds. The project SOCAR Polymer has obtained a loan from Gazprombank in the amount of $ 489 million for 10 years.

SOCAR Polymer was established by SOCAR and its registered capital is $ 100 million. Since the end of 2013, SOCAR owns 51% shares of this company and 49% is owned by Pasha Holding, Gilan Holding and Azersun Holding. -12C--