#Turkey #Rönesans Holding #SONATRACH #Ceyhan #Stolthaven

Rönesans Holding's $2 Billion Investment in Turkey

Rönesans Holding, a major player in Turkey's construction and investment sector, is making waves with its latest project—a $2 billion polypropylene (PP) production plant and terminal facility. This investment marks one of the largest undertaken by the private sector in Turkey, showcasing an ambitious initiative that could elevate Turkey’s industrial self-sufficiency and global market presence.

Located strategically within Turkey's DAPEK Industrial Zone, the new plant aims to leverage local resources while significantly reducing the dependency on imports. The project is anticipated to inject around $300 million annually into Turkey's balance of payments, illustrating its positive economic impact.

Funding and Partnerships

The financing for the project involves a total of $1.3 billion led by the U.S. International Development Finance Corporation (DFC) for the PP plant, alongside support from the Spanish Agency for Export Credit Insurance (Cesce) for both the plant and terminal. Notably, the collaboration with SONATRACH, Algeria's largest company, underscores the significance of this initiative on a global scale, enhancing the integrated supply chain for specialty liquid chemical products.

Erman Ilıcak, Honorary President of Rönesans Holding, emphasized the project's commitment to sustainable and impactful investments that align with Turkey's economic ambitions. He stated, "The Ceyhan PP Plant will not only generate thousands of jobs in the region but also create a resilient and competitive supply chain for PP, which is vital for various industries in Turkey and Europe."

The Plant and Its Contributions

The Ceyhan PP production plant is designed to have an annual production capacity of 472,500 metric tons, contributing to approximately 17% of Turkey's PP demand. This strategic setup not only fills the gap in local supply but also stems from extensive research into market dynamics, reflecting a deep understanding of Turkey's evolving industrial landscape. Rachid Hachichi, CEO of SONATRACH, added, "Investing in Turkey is driven by the dynamic market demand for PP, placing us ideally in a sector poised for growth."

The project is also gearing up to create 4,500 temporary construction roles and 300 permanent positions upon operational launch. This aligns with Rönesans’ core values of enhancing local skills and employment through targeted initiatives, such as a welding school established specifically for this project.

Terminal Operations and Logistics

Complementing the plant is a terminal developed in partnership with Stolt-Nielsen's Stolthaven Terminals, which specializes in liquid bulk storage. This facility will ensure that the new plant, along with other potential clients, has reliable access to necessary raw materials and effective logistics services. Guy Bessant, President of Stolthaven Terminals, remarked on the historical significance of this partnership, bringing over 50 years of expertise in safely handling and storing liquid commodities.

Commitments to Sustainability

Sustainability remains integral to this project, with both the plant and terminal expected to utilize cutting-edge technologies that minimize environmental impact. The PP plant aims to achieve the lowest greenhouse gas emissions rate per ton of PP produced globally, utilizing 100% renewable energy and efficient production methods. Such commitment not only positions Rönesans as a leader in sustainable practices within the industry but also as a catalyst for the transition towards greener manufacturing in Turkey.

Economic Impact and Future Prospects

Currently, Turkey is one of the largest importers of polypropylene, with an annual consumption of about 2.7 million metric tons but domestic production only providing around 100,000 metric tons. The Ceyhan plant is set to close this gap significantly, yielding logistical advantages that will bolster local economies and decrease the trade deficit by approximately $300 million each year. Moreover, the project fulfills a social responsibility agenda by offering educational and skills development programs to local communities.

About Rönesans Holding

Established in Ankara, Rönesans Holding is recognized as the 53rd largest international contractual company globally. With operations across 30 countries, Rönesans engages in construction, real estate, concessions, renewable energies, and industrial investment, focusing on resilience and growth through innovative and sustainable practices. The organization is a signatory to the UN Global Compact and actively supports educational initiatives through scholarships and academic programs, reinforcing its commitment to corporate social responsibility.

Conclusion

Rönesans Holding's ambitious $2 billion polypropylene project not only signifies a monumental leap forward for Turkey's industrial capabilities but also reinforces its position as a competitive player in the global market. As this project unfolds, it promises to bring substantial economic growth, job creation, and sustainable practices that will benefit local communities and industries for years to come.