#Turkey #Rönesans Holding #Ceyhan #Polypropylene

Major Investment in Turkey's Economy

Rönesans Holding, a prominent European construction and investment group, has recently announced one of the largest private investments in Turkey - a monumental $2 billion project dedicated to building a polypropylene (PP) production plant and a liquid bulk terminal in Ceyhan. This strategic initiative aims to boost Turkey's industrial self-sufficiency and diminish its reliance on foreign imports, ultimately strengthening the country's position in global trade.

"Once operational, these projects will generate a direct yearly contribution of $300 million to Turkey's current account deficit," stated Dr. Erman Ilıcak, Honorary President of Rönesans Holding. This substantial investment not only seeks to foster economic growth but also addresses crucial issues regarding Turkey's trade balance by reducing the dependency on imported plastics and chemicals.

The financing for this ambitious project includes $1.3 billion secured from international sources, specifically from the U.S. International Development Finance Corporation (DFC) and the Spanish Export Credit Agency (Cesce). Dr. Ilıcak expressed gratitude towards these stakeholders, emphasizing the collaborative global effort to support Turkey's economic development through value-added projects.

Rönesans Holding boasts an impressive track record with a complete project portfolio valued at $50 billion, with about $35 billion generated from international endeavors. The group, formed nearly 30 years ago, has been involved in a diverse range of sectors, including renewable energy, social infrastructure, and industrial facilities. Notably, they have completed numerous groundbreaking international projects, earning a reputation as one of the largest contractors globally.

Revolutionizing Industrialization in Turkey

Reflecting on global economic trends, Dr. Ilıcak pointed out the increasing protectionism and reshaping supply chains as significant factors impacting the resource landscape. He stressed the urgent necessity for strategic investments in heavy industry to adequately bridge the deficits tied to industrial machines, plastics, and chemicals that the Turkish market heavily imports.

Over the last decade, Turkey has seen roughly $20 billion in industrial investments, but Dr. Ilıcak insists that this is not enough. “To effectively close the existing gap, Turkey must allocate at least $12 billion annually over the next five years, totaling $60 billion. Achieving this level of investment could lead to an annual GDP growth increase of $15 billion and a reduction in our trade deficit by $10 billion,” he asserted.

At Rönesans Holding, this modern PP production facility and terminal in Ceyhan exemplify their commitment to addressing these economic challenges collaboratively with expert partners from twelve different countries. Upon completion, this investment will provide substantial annual contributions to Turkey’s economic framework.

Significance of International Partnerships

Dr. Ilıcak also highlighted the importance of robust international partnerships in attracting foreign investments. The collaboration with the European Bank for Reconstruction and Development (EBRD) has proven pivotal, particularly in the transformation of Turkey's healthcare sector, which successfully drew $15 billion in foreign funding. Rönesans has also demonstrated its resilience by partnering with the International Finance Corporation (IFC), engaging in various development initiatives under challenging conditions.

The dedication to the social impact of their projects always takes precedence over profitability, forming the backbone of their mantra for sustainable growth. The company’s increasing ties with Central Asian nations and strengthening relations with African countries underscore Turkey's position as a key player in satisfying continuous demands for health and education services surrounding a vastly growing population.

Overall, Rönesans Holding is not just focused on current investments but is keen to continue bolstering Turkey's industrialization efforts, aiming to have foreign funding support their projects rather than solely depending on limited national resources.

About Rönesans Holding

As the primary investment entity of the conglomerate headquartered in Ankara, Rönesans Holding ranks as the 53rd largest international contractor worldwide. With operations in 30 countries across Europe, Central Asia, and Africa, Rönesans has emerged as a leader in construction, real estate, and renewable energies, embracing innovation and sustainability across all its projects. The company has been committed to social development initiatives, including scholarships and academic programs, and has partnered with notable institutions such as GIC, Meridiam Infrastructure, and TotalEnergies. Led by Dr. Erman Ilıcak, Rönesans exemplifies dedication towards not just building facilities, but also laying down the groundwork for a prosperous future in Turkey’s economy.