Tekfen Holding Makes 100 Million Dollar Purchase in Azerbaijan

Tekfen is strengthening its position in Azerbaijan by making a purchase worth 100 million dollars.

TechInvestments LLC, a subsidiary of Tekfen Holding, has signed an agreement in Baku with regards to its purchase of a 10% stake in SOCAR Polymer Investments LLC, a company producing petrochemicals with a paid-in capital of 375 million US Dollars. SOCAR Polymer LLC, which has an annual production capacity of 184,000 tons of PP and 120,000 tons of HDPE, has identified Azerbaijan, Turkey, Russia and the countries of Western and Central Europe as its target markets, the first two of these being the main priority. The polypropylene (PP) unit of the production plant, which represents an investment of 820 million US Dollars, went into operation in September 2018; the High Density Polyethylene (HDPE) unit, meanwhile, commenced operation this year.

In Baku for the signing of the agreement, which took place on 13 December, Tekfen Holding Board Chairman Murat Gigin had the following to say about the purchase: "Up to now, as contractors, we have participated in projects worth more than 6 billion dollars in Azerbaijan, these being the most fundamental investment initiatives required for the country's development. Over the 25 years during which we have been active in this country, we have gained the trust of the state of Azerbaijan; we have formed partnerships, and have realised major transfers of know-how - especially in the areas of engineering, contractorship and the manufacturing of industrial facilities. In the process of doing all this, we have provided opportunities for thousands of people with technical or managerial ability to receive training. Now, with the signature of this agreement, we are opening a new chapter by becoming a 10% stakeholder in a production facility in our role as industrialists. This initiative will not only enhance our ability to participate to a greater extent in the new investments that are being made in this country, but will also be a valuable preparatory step towards the setting up of our own polypropylene plant in Mersin, an investment we are making in Turkey; with a production capacity of 500,000 tons per year, and of which we are currently completing the necessary environmental impact assessment and prefeasibility phase. We believe that the making of the initiative outlined in this agreement is fully in accord with our mutual watchword 'Two states, one nation', and I would like to express the hope that it will be beneficial for all concerned."