Rönesans Holding Unveils Landmark $2 Billion Polypropylene Facility in Türkiye

Rönesans Holding's $2 Billion Investment in Türkiye

Rönesans Holding, one of Türkiye's leading investment and contracting companies, is set to enhance the country's economic standings with a groundbreaking investment of $2 billion in a new polypropylene (PP) production plant and terminal facility. This ambitious endeavor, poised to be the largest private sector investment in Türkiye's history, is expected to generate a remarkable $300 million annually for the nation's balance of payments.

The investment comes with substantial international support, including a $1.3 billion financing package led by U.S. International Development Finance Corporation (DFC), along with the backing of Spain's Export Credit Agency, Cesce. This underscores the project’s crucial role in global supply chains and highlights Türkiye's industrial potential.

Significance of the Investment

The polypropylene production plant, developed in conjunction with SONATRACH—Africa's largest oil and gas company—will enable Türkiye to meet approximately 17% of its PP demand, which is crucial for various industries such as automotive, textiles, and packaging. Currently, Türkiye's consumption of polypropylene is around 2.7 million metric tons annually, yet the country produces only about 100,000 metric tons. This new plant, capable of producing 472,500 metric tons of PP each year, aims to address this significant gap in production and reduce import reliance.

Erman Ilıcak, the Honorary President of Rönesans Holding, expressed optimism regarding the project. He stated, "This development exemplifies our commitment to sustainable, high-impact investments that support Türkiye's economic and industrial ambitions. The Ceyhan PP Plant will create hundreds of new jobs for the region and enhance the resilience and competitiveness of Türkiye’s supply chains. Our ability to secure foreign investment reflects a growing confidence in our market."

Sustainable Practices and Environmental Impact

A vital component of the investment is its commitment to sustainability. The production facility will incorporate advanced technology aimed at achieving the lowest greenhouse gas emissions per tonne of polypropylene produced globally. It will utilize 100% renewable electricity and efficient production methods, setting a benchmark for environmental responsibility in the industry.

The second aspect of this project includes a terminal facility developed in association with Stolt-Nielsen's Stolthaven Terminals, which will manage the storage and distribution of feedstock essential for the new production plant. Stolthaven Terminals boasts over 50 years of experience in handling and storing bulk liquids safely, ensuring that this project supports a robust supply chain.

Economic Growth and Job Creation

The location of the Ceyhan PP production plant within the DAPEK Industrial Zone offers logistical advantages that can significantly boost the local economy. It is projected that the project will create around 4,500 jobs during its construction phase, followed by an additional 300 permanent roles once operational.

The investment not only targets economic growth but also aligns with Rönesans Holding's mission to enhance local skills and employment. The company plans to launch educational programs, including a welding school, to foster skill development within the Ceyhan community, thereby contributing to Türkiye's socio-economic advancement.

Partnerships and Future Endeavors

Strong collaborations play a crucial role in the realization of this project. Rönesans Holding’s partnerships with SONATRACH and Stolthaven Terminals bolster its international positioning and strengthen supply chains. Guy Bessant, President of Stolthaven Terminals, remarked on the collaboration’s value, noting the terminal’s potential to serve both the new PP plant and other businesses in the region.

As the project moves forward, it is anticipated to fundamentally transform Türkiye's industrial landscape, fostering not only self-sufficiency in polypropylene but also enhancing the nation’s global trade stature. With Rönesans Holding at the helm, this investment signals a promising future for Türkiye's economy, characterized by innovation, sustainability, and robust international partnerships.

About Rönesans Holding

Founded over 30 years ago, Rönesans Holding stands as a pillar of construction and investment in Türkiye and beyond, boasting operations in 30 countries. Recognized as one of the largest contractors in Europe, the conglomerate emphasizes resilience, innovation, and a commitment to improving quality of life through sustainable practices. As the company continues to pursue groundbreaking projects like the Ceyhan PP plant, it remains dedicated to driving economic growth and social development in the regions it serves.