Tekfen strengthens its presence in Azerbaijan with an acquisition of 100 million USD.
TechInvestments LLC, a subsidiary of Tekfen Holding, signed a contract in Baku to own 10% of the shares in SOCAR Polymer Investments LLC, a petrochemical manufacturing company with a paid-up capital of 375 million USD.
The Polypropylene (PP) unit of the facility, with an investment size of 820 million USD, went into operation in September 2018, followed by the High-Density Polyethylene (HDPE) unit this year. SOCAR Polymer LLC, has a production capacity of 184 thousand tons of PP and 120 thousand tons of HDPE per year and targets the Russian and the Western and Central European markets, with a special focus on Azerbaijan and Turkey.
Tekfen Holding Chairman Murat Gigin, who was in Baku for the signing which took place on December 13, commented the acquisition with the following words: “As a contractor in Azerbaijan, we have undertaken projects with more than 6 billion USD of value in the most fundamental investment moves toward the development of the country. During our 25 years of presence in the country, we have won the trust of the Azerbaijani state, we have established partnerships and transferred important know-how, especially in the fields of engineering, contracting, and industrial plant manufacturing, and we have been instrumental in training thousands of people with technical and managerial skills. And now, with this signing, we turn a new page by creating a 10% partnership in a production facility as an investor. This initiative, while increasing our potential to sign for new investments in the country, will be a valuable preliminary for our Mersin PP plant in Turkey which has an annual capacity of 500,000 tons and whose investment stages of EIA and pre-feasibility studies are about to be completed. With the belief that this investment will be an initiative that will contribute to the 'one nation, two states' slogan, I hope this investment will be beneficial for all parties.”