SOCAR to raise up to US$200 mln to fund polyolefins plant by new subsidiary at Azerbaijan

26-Sep-13

SOCAR, the state oil company of the central Asian nation of Azerbaijan, is planning to raise up to US$200 mln from local banks and private investors to fund its new subsidiary, SOCAR Polymer. The petrochemicals offshoot is to establish a low density PE and PP production facility at the newly created Sumgayit Chemical Industry Park (SKSP) petrochemicals zone 30kms from Azerbaijan’s capital Baku on the Caspian Sea, as per European Plastics News. Construction is scheduled for next year. SOCAR has provided its new subsidiary with share capital of €41 mln to enable it to begin the process of ordering technical equipment for the polymers project. The state group intends to retain a 51% share in the firm, while later transferring the remaining equity stake to private investors. Total investment in the SKSP polymers project is estimated to be up to almost €370 mln, according to SOCAR.