MOSCOW (MRC) -- Italian Maire Technimont and Azerbaijan’s SOCAR-Polymer signed an EUR350 mln-agreement on construction of Sumgayit polypropylene (PP) plant at the Azerbaijan-Italy business meeting on 15 April, 2015, reported APA-Economics.
According to APA-Economics, the agreement was signed by SOCAR-Polymer Director-General Farid Jafarov and Chief Executive Officer Maire Tecnimont Pierroberto Folgiero.
Maire Technimont and SOCAR-Polymer have carried preliminary engineering works and agreed on construction of polypropylene plant and general economic block on EPC agreement. This agreement costs €350 mln. The project envisages engineering, procurement and construction.
The Polypropylene plant with the yearly capacity of 180,000 tonnes will allow to use propylene as a raw material. This plant is planned to be constructed in Sumgayit Chemical Industrial Park.
Currently, Azerbaijan import polypropylene and High-density polyethylene (HDPE).
SOCAR-Polymer Deputy Director General Emil Eminov todl APA-Economics that according to conditions of the agreement, the polypropylene plant will be completed by end of 2017, polyethylene plant by end of 2018.
“The construction works are planned to start in August, 2015. The project of the construction has already been developed and sent to Italian company. The project envisages construction of polypropylene and polyethylene plants. Total worth of the project with both two plants makes EUR700 mln”, Eminov said.
He added that SOCA-Polymer will invest USD420 mln in these projects, which it borrowed from Russia’s Gazprombank in December, 2014.
Main shareholder of the project is SOCAR.
"Moreover, PASHA Holding, Gilan Holding and Azersun Holding will also be involved in the project. 40% of the project will be paid by these companies", Eminov said.
According to him, no problem will occur in the financing of the project and it will be implemented in time: "30% of projects to be produced in the project will be put up to sale to the domestic market. 70% will be exported".
As MRC wrote before, SOCAR announced last summer that it plans to commission PP plant in Azerbaijan in 2016.
SOCAR, which is keen on expanding operations in the retail oil products market abroad, is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in the domestic and international markets, and supplying natural gas to industry and the public in Azerbaijan