Giant petrochemical investment in Adana to cut Turkey’s current account deficit by $2 billion

by on 26 March 2019

Located at the intersection of consumer and producer markets, Turkey’s southeastern province of Adana is welcoming an $8 billion petrochemical investment. The project, to be realized with Turkish, Algerian, Dutch and South Korean partners, will reduce the current account deficit by an estimated $2 billion

The Ceyhan Petrochemical Industry Zone project slated for Ceyhan, Adana, an intersection in terms of supply and demand, will contribute $2 billion to the reduction of foreign dependency and thus the current account deficit in petrochemical products. Standing out as the biggest project of the petrochemical industry, one of the most important development resources of developed countries, the Ceyhan Petrochemical Industrial Zone project will position Turkey as the global production base in the field. Gearing up for the first investment in the Ceyhan Petrochemical Industrial Zone with Algeria’s national energy company Sonatrach and South Korean GS Engineering and Construction (E&C), Rönesans Holding will undertake the management and infrastructure development of the region with the Dutch Port of Rotterdam, which is also serving as a front in attracting international investors to Ceyhan.

The introductory meeting of the Ceyhan Petrochemical Industry Zone, in which Rönesans Holding is taking part as the managing company in cooperation with the Dutch Port of Rotterdam and the Adana Chamber of Industry (ASO), was held yesterday in Adana. Participating in the event was Environment and Urbanization Minister Murat Kurum and Rönesans Holding Chairman Erman Ilıcak along with the representatives from the Algerian, South Korean and Dutch partners of the $8 billion investment.

In his speech at the meeting, Environment and Urbanization Minister Kurum said the annual production capacity of the Polypropylene Production Facility to be realized in Ceyhan will be 450,000 tons, which will pave the way for domestic production and prevent foreign dependency on the raw material. Minister Kurum further noted that once the facilities are completed, Turkey will close an annual deficit of $2 billion and generate revenue of $4 billion to $5 billion.

“This project, which will reduce our dependence on foreign countries, will make our economy stronger in all respects. External dependence breaks the resistance of all sectors. These companies will now be able to stand firm against the fluctuations in the currency,” he said.

Rönesans Holding Chairman Ilıcak pointed out that they have taken the first step to establish a petrochemical industry region in Ceyhan, which is included in President Recep Tayyip Erdoğan’s medium-term economic program covering the period between 2019 and 2021 as a priority project, to produce many petrochemical products, including polypropylene, polyethylene and PVC, which cost about $ 15 billion every year, in this scope, and to provide employment for at least 10,000 people.