By Mirsaid Ibrahimzade

The state oil company SOCAR made decisive steps by establishment of new plants for the production of polymer products and carbamide fertilizers in Azerbaijan, thus opening up a very good prospect for Azerbaijan to increase the inflow of foreign currency into the country.

President of SOCAR Rovnag Abdullayev has met with Murat Gigin, Chairman of Turkey’s Tekfen. Within the framework of the meeting, the parties signed a memorandum on the construction of a new carbamide plant in Azerbaijan.

Taking into account its own experience in the construction of the existing carbamide plant, SOCAR is planning to build a new production complex in Sumgayit with a capacity of 1,200 tons of ammonia and 2,000 tons of carbamide per day.

The memorandum also provides for cooperation in the marketing of existing and new complex fertilizer products. Also, a joint working group will be created at the next phase, so issues relating to the construction of a new plant will be analyzed.

These include the possible participation of companies of Tekfen Contracting Group based on EPC (engineering, procurement and construction) in construction facilities at the plant; the marketing of the plant by Toros Tarım, Tekfen’s subsidiary, to enter regional markets with finished products, as well as its sales; participation of the parties as shareholders.

It is noteworthy that SOCAR carbamide plant is the biggest project in Azerbaijan, implemented in the non-oil sector. Its total cost is about 800 million euros.

SOCAR Polymer was established in 2013. On October 25, 2015, with the participation of President Ilham Aliyev, the foundation was laid for the plants based on the highest standards and modern technologies. The plant for the production of high-density polyethylene was launched on February 18, 2019.

SOCAR Polymer, the project of international standing, is the first of its kind and scale in the petrochemical industry to be implemented in Azerbaijan over the past 40 years.

This is the first company in the petrochemical industry in Azerbaijan, established on the basis of partnership between the state and the private sector. Such companies as Maire Tecnimont (Italy), Fluor (Netherlands), etc. are involved in the project.

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Mirsaid Ibrahimzade is AzerNews’ staff journalist, follow him on Twitter: @MirsaidIbrahim1

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