The contract to build the plant to produce high density polyethylene signed between SOCAR and Italian Maire Tecnimont company on February 5, 2016 will be worth $180 million.
Italian company will execute Engineering, Procurement and Construction (EPC) contract as a part of the SOCAR Polymer project in Sumgait city.
The contract has been signed by SOCAR President Rovnag Abdullayev and Fabrizio di Amato, chairman of Board of Directors of Maire Technimont.
“The works to build the plant for production of high density polyethylene with the capacity of 120,000 tons a year will begin this year,” SOCAR President said.
The contract envisages providing technical services, logistic services, assembly works, construction of the plant and the trial.
The polyethylene plant is planned to be launched at the end of 2018.
As soon as the local demand is met, the remaining part of the product will be exported. According to the preliminary marketing plan, the product will be exported to the Far Abroad, Western Europe, Turkey and etc.
SOCAR Trading will export products of the plant.
* The project to build the high density polyethylene and polypropylene plant in Azerbaijan is implemented by SOCAR Polymer.
Total cost of the project of the plant construction is $750 million, of which 40% is the shareholder capital and 60% is credit. SOCAR Polymer has borrowed $489 million for the period of 10 years from Gasprombank.
SOCAR Polymer was established by SOCAR with the authorized capital of $100 million. Since the end of 2013 SOCAR owns 51% shares of the company and Pasha Holding, Gilan Holding and Azersun Holding own 49%.