Azernews.Az

By Gulgiz Dadashova

Azerbaijan’s state energy giant SOCAR and Russia’s Gazprombank inked a deal on financing the project on construction of polypropylene and polyethylene plant by SOCAR Polymer in Azerbaijan.

Gazprombank’s Investment Committee approved a loan worth $489 million for SOCAR Polymer with the repayment period of 10 years, according to the bank report. The total cost of the project is around 700 million euros.

SOCAR Polymer is a joint venture between SOCAR and major industrial players in Azerbaijan - Pasha Holding, Azersun Holding and Gilan Holding. SOCAR Polymer project is implemented in Sumgait Chemical Industrial Park.

The agreement was undersigned by Andrey Akimov, the chairman of the Gazprombank Management Board, and SOCAR head Rovnag Abdullayev during the St. Petersburg International Economic Forum on June 19.

“We focus on a long-term strategic partnership with SOCAR and considered the financing of SOCAR Polymer project as the next stage of cooperation,” said Akimov.

Akimov voiced hope that signing of the financial deal will allow Gazprombank to participate in financing of other major investment projects being implemented by SOCAR group of companies.

United Heavy Machinery Plants Holding (part of Gazprombank Group) is also expected to take part in this cooperation.

The SOCAR Polymer project implementation will make it possible to produce 180,000 metric tons of polypropylene and 120,000 metric tons of polyethylene per year. Production of the propylene polymer is expected to begin in 2016. Most of the production will be sent to markets of Turkey and countries of Western Europe.

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