Bayegan Group unveils $1.9-B petrochemical plant project in Turkey
Originally reported by Bloomberg
Turkish petrochemicals company Bayegan Group is set to enhance domestic polypropylene production with a planned $1.9-B plant in Hatay province. The facility, expected to produce 450,000 tpy, aims to meet about 20% of Turkey's demand for polypropylene, a key material in the country's carpet industry.
Bayegan's investment aligns with its strategy to expand across the value chain. The plant is projected to save Turkey approximately $500 MM annually, making it less dependent on imports and reducing costs.
The Turkish government is supporting the project with tax breaks and reduced power and labor costs, as part of efforts to boost core industries amid economic challenges, including a 65% inflation rate. The proposed site near Gaziantep, known for its carpet-making heritage, positions the project strategically.
Bayegan is exploring potential partnerships for the venture and continues discussions with export credit agencies. Construction is expected to take 34 months once the engineering, procurement, and construction (EPC) contract is signed. The initiative reflects a broader trend, with another group also developing a $1.7-B polypropylene plant nearby in Ceyhan. Turkey, a significant importer of polypropylene, seeks to strengthen its domestic production capabilities in collaboration with local and international investors.
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