#Turkey #Rönesans Holding #Ceyhan #Polypropylene Plant #Turkey Investment

Rönesans Holding's Transformational Investment in Turkey

On April 17, 2025, Rönesans Holding, one of Turkey's largest construction and investment companies, announced its ambitious plan to invest $2 billion in a new polypropylene (PP) production facility and terminal in Turkey. This project is set to not only bolster Turkey's industrial capabilities but also enhance its position in the global market by significantly reducing its dependency on imports.

A Historic Investment

This venture is highlighted as one of the largest industrial investments ever made by the private sector in Turkey and represents the most substantial investment to date for Rönesans Holding. The initiative is expected to add $300 million annually to Turkey's balance of payments, emphasizing its financial significance for the country's economy.

The funding includes $1.3 billion, primarily sourced from the U.S. International Development Finance Corporation (DFC) and Spain's Export Credit Agency (Cesce), underscoring the global importance and collaborative nature of this initiative. Rönesans has partnered with SONATRACH, Africa's largest company, and Stolt-Nielsen, a leader in integrated supply solutions for liquid specialty chemicals, further enhancing the project's credibility and international reach.

Project Components

The development consists of two major components: the PP production plant and the terminal facility. The production plant will be developed in collaboration with SONATRACH and is designed to have an annual production capacity of 472,500 tons, meeting approximately 17% of Turkey's polypropylene demand. Erman Ilıcak, the Honorary President of Rönesans Holding, expressed the company's commitment to sustainable investments that support Turkey’s economic ambitions, stating,

“This development will not only create hundreds of new jobs in the region but will also ensure a more resilient and competitive supply chain for PP, a vital raw material for the industry in Turkey and Europe.”

Technological Advancement

This project will utilize cutting-edge, environmentally friendly technology aimed at achieving the lowest greenhouse gas emissions per ton of PP produced globally. It will operate on 100% renewable electricity, employing highly efficient production methods.

Economic Impact

Given that Turkey is among the world’s largest importers of polypropylene, the local market's demand is driven by key sectors like automotive, textiles, and packaging. Currently, Turkey's total annual consumption of PP stands at about 2.7 million tons, while domestic production is only able to supply 100,000 tons. The Ceyhan PP production plant is strategically located within Turkey's DAPEK industrial zone, offering logistical and financial advantages that will support the local economy and aim to reduce the trade deficit by approximately $300 million annually.

Job Creation and Community Development

This venture is anticipated to generate around 4,500 jobs at its peak during construction and 300 permanent jobs post-commissioning. Rönesans is also committed to promoting local skills and employment through programs such as a welding school established for the factory, which aims to enhance education and capacity building in the region.

About Rönesans Holding

Rönesans Holding, headquartered in Ankara, is the fifty-third largest construction company globally and one of the largest in Europe, operating in 30 countries across Europe, Central Asia, and Africa. The conglomerate has been focusing on sustainable development while actively investing in projects that foster innovation and social progress.

Additionally, Rönesans Holding has positioned itself as a significant player in various sectors, including renewable energy and industrial development, with its commitment to social initiatives and global partnerships.

Conclusion

The announcement of this $2 billion investment marks a decisive step towards reinforcing Turkey’s industrial landscape while fostering international collaborations that promise sustainable economic growth. With its strong financial backing and innovative operational strategies, this initiative is poised to make a lasting impact on Turkey's economy and its position in global trade.