Turkish company acquires part of SOCAR Polymer’s shares

14 December 2019 17:01 (UTC+04:00)

By Rasana Gasimova

Turkish Tekfen company signed a document on the acquisition of a part of the shares of SOCAR Polymer.

The document was signed by SOCAR Overseas Manager Firudin Hasanov and Chairman of the Board of Tekfen Holding Murat Gigin in Baku on December 13, SOCAR reported.

It provided for the acquisition of five percent of SOCAR’s shares and five percent of PASHA Holding’s shares. The amount of the transaction was not disclosed.

Tekfen Construction and Installation is engaged in construction activities including power generation, airports, petroleum, and roadways. Tekfen primarily operates in Turkey, the Commonwealth of Independent States, Middle East, North Africa, and Europe.

The company has been providing contracting services to the oil and gas industry in Azerbaijan since 1992.

In 1996, SOCAR and Tekfen established a joint venture - Azfen company, which is engaged in high-level construction and engineering activities for oil companies.

In 2016, the company won a supply and construction contract worth $457 million from the Trans-Anatolian Natural Gas Pipeline Project (TANAP) project that was successfully commissioned in November 2019.

Earlier this year, SOCAR and Tekfen signed a memorandum on the construction of a new carbamide plant in Azerbaijan.

SOCAR Polymer, which is a subsidiary of Azerbaijan's state oil company, commissioned a polypropylene plant. The design capacity of the plant is 184,000 tons of polypropylene per year.

In February 2019, the company put a plant for the production of high density polyethylene into operation with a capacity of 120,000 tons of finished products per year.

In general, SOCAR Polymer plants are designed to produce 10 types of polypropylene and four types of high density polyethylene.

Total investments in construction projects amounted to $816 million. Sixty percent of the investments were covered with a loan from Russia’s Gazprombank, the remaining 40 percent were invested by SOCAR, Vitol, PASHA Holding, Gilan Holding and Azersun Holding.

SOCAR Polymer's revenues from these plants are expected to reach $6.6 billion, with net profit will being $1.98 billion. For the entire period of the plants’ operation, tax deductions to the state budget will amount to $ 600 million.

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