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Petkim in talks on acquisition of Star Refinery

8 September 2016 15:00 (UTC+04:00)
Petkim in talks on acquisition of Star Refinery

By Nigar Abbasova

Turkey's petrochemical giant Petkim is currently in talks on the acquisition of a share in Star Oil Refinery, which will be the first oil refinery built by the private sector in Turkey.

Petkim’s newly-appointed CEO Anar Mammadov talking to reporters in Izmir said that talks on the issue are currently underway and no specific comments may be made at present.

Petkim’s board of directors earlier gave permission for the launch of talks on the purchase of 12-14 percent share of Rafineri Holding from SOCAR Turkey Enerji, which will allow Petkim to become an owner of a 7-9 percent share in Star Refinery.

Mammadov also said that Petkim invested some $87 million in production development in January-July 2016 reaching record-high levels on EBITDA (earnings before interest) and revenues, while indicators of the last year stood at $57 million.

“2016 became the most effective economic year in the history of the company. The sum is expected to increase by the end of the year, however, the main portion of investments for the current year have already been made. The funds were directed at the project on construction of a wind power plant in the Petkim Peninsula, as well as works on the increase of production capacity, infrastructural projects on the integration of Petkim and Star Refinery,” he said.

Mammadov stressed that the increase of production capacity is a strategic goal pursued by the company.

Highlighting the construction of a wind power plant, Mammadov said that the process is expected to be completed by 2017, mentioning that there is a need to get a relevant permission from the government.

The capacity of the plant is expected to be 51 megawatts. The project worth €55 million ($ 62.01 million) is expected to provide for some 12 percent of Petkim’s energy needs.

Commissioning of the plant will become a serious contribution to the development of the sphere of alternative energy in Turkey. Works on the construction are implemented jointly with French Alstom Company.

Petkim produces plastic packages, fabrics, detergents, and is the sole Turkish manufacturer of such products, a quarter of which is exported. The annual production capacity of Petkim is 3.6 million tons.

Petkim’s shareholders are SOCAR Turkey Petrokimya AS – 51 percent, SOCAR Turkey Enerji AS – 5.3216 percent, while 43.6784 percent of the shares are in free float on the stock exchange.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

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