MOSCOW (MRC) -- Production of polypropylene and polyethylene of high density in Sumgayit - an industrial city located close to the Azerbaijani capital Baku - will be launched in 2016, a source at the state energy company SOCAR told Trend news agency.
According to the source, as Azernews informs, the construction of two new plants for production of such polypropylene and polyethylene will be completed in 2015. In 2012 SOCAR signed a contract on the construction of a plant producing high-density polyethylene and polypropylene with annual capacity of 200,000 and 100,000 tons respectively. The construction of these facilities is planned in the Sumgayit Chemical Technology Park.
The SOCAR Polimer enterprise with authorized capital of $51 million has been established for the implementation of these projects. The state energy company plans to keep its share in the project at 51 percent and the rest will be offered to privately owned companies. According to the source, work is currently underway to attract shareholders, and the process of financing the construction of new facilities will be carried out on the basis of participating interest.
SOCAR Vice President Suleyman Gasimov said earlier that SOCAR intends to attract up to $200 million from local banks as part of the effort to launch polymer production in Azerbaijan. The total volume of anticipated investment in SOCAR Polimer amounts to USD500 million. According to him, nearly 30 percent of investments in the project will be attracted from shareholders and a large part is to be drawn from banks and through issuing long-term nominal bonds which will be placed in the domestic market.