Azernews.Az

By Fatma Babayeva

State owned energy company SOCAR’s Polymer investment project, which is first of its nature and scale implemented for the last 40 years in Azerbaijan’s downstream oil and gas industry, will make $10-11 billion of revenues during the plant’s lifetime.

Some 30 percent of this sum will be the net profit of the company. In the meantime, cooperate taxes and property taxes worth $800 million and value added tax worth $700 million will be paid to the government, reports the company’s official website.

Polypropylene and High Density Polyethylene plants of SOCAR Polymer are being built within the Sumgayit chemical industrial park’s territory which was established by the decree of the President Ilham Aliyev and provides a number of significant privileges for its residents.

Upon completion of the project, 180,000 tons of polypropylene and 120,000 tons of high density polyethylene will be produced annually.

At the moment, Azerbaijan exports low-density polyethylene and imports high -density one. The main aim of the project is import substitution and increase of the country’s export potential.

As much as 30 percent of the production output will be directed to the domestic market while the remaining 70 percent will be exported to Turkey and other European countries.

The products of the SOCAR Polymer will be used for the production of high pressure gas, sewage and water pipes, packaging, textiles, stationery, automotive components, electronic and electrical appliances, medical industry, etc.

The overall investment cost of SOCAR Polymer project (2014-2018) will amount to $750 million.

At this project SOCAR is partnering with the country’s leading industrial group- Pasha, Azersun and Gilan Holdings.

On 16 July, 2013 a separate company- SOCAR Polymer was established to expedite the development of the country’s chemical industry. The company is opening new frontiers in the petrochemical industry of Azerbaijan.

Polymer investment project will contribute to expanding the national economy of the country.

SOCAR is involved in exploring oil and gas fields, producing, processing, and transporting oil, gas, and gas condensate, marketing petroleum and petrochemical products in domestic and international markets, as well as, supplying natural gas to industry and the public in Azerbaijan.

Three production divisions, one oil refinery and one gas processing plant, a deep water platform fabrication yard, two trusts, one institution, and 23 subdivisions are operating as corporate entities under SOCAR.

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Fatma Babayeva is AzerNews’ staff journalist, follow her on Twitter: @Fatma_Babayeva

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