Bayegan Group Announces $1.9 Billion Investment in Polypropylene Production Facility in T"urkiye

Bayegan Group, a renowned Turkish petrochemical company, is set to revolutionize the polymer industry in T"urkiye with its proposed polypropylene production facility in Hatay, a southern province. The staggering investment of $1.9 billion indicates the colossal scale and potential impact of this project. With an expected annual production of 450,000 tons of polypropylene, it is estimated to satisfy approximately 20% of T"urkiye's yearly demand for the polymer, which fluctuates between 2 million to 2.5 million tons.

Transforming T"urkiye's Polymer Landscape

The implications of this venture extend far beyond the petrochemical sector. Polypropylene is a crucial component in the manufacturing of T"urkiye's world-renowned carpets. By bolstering domestic production of this vital material, Bayegan Group's move could potentially save the country about $500 million annually, thereby playing a significant role in narrowing the nation's current account deficit. The initial investment cost for an annual output of 350,000 tons was pegged at TL 27.7 billion. However, as production capacity escalated to 450,000 tons, the cost was revised upward to $1.9 billion.

Collaborations and Partnerships

In a strategic move to ensure the project's success, Bayegan is considering partnerships and is currently in discussions with potential investors. A significant contributing factor to the project's viability is the involvement of Switzerland-based BGN International, an associate of Bayegan. BGN International will be the primary supplier of raw materials for the upcoming facility, ensuring a consistent and quality supply chain.

Bayegan Group's Vision

This development is not an isolated strategy; it is part of a broader industrial shift. Another polypropylene plant, a $1.7 billion project in Adana's Ceyhan, is currently under development by Turkish conglomerate R"onesans Holding and Algeria's Sonatrach. Bayegan Group had initially been part of this venture but decided to withdraw in 2018. Despite a previous failed attempt in 2012 to establish a petrochemical plant with a Saudi partner, Bayegan Group remains undeterred in its vision. The company is on the brink of signing the engineering, procurement, and construction contract. The construction is expected to span 34 months, signaling a new era in T"urkiye's polypropylene production. Currently, Petkim Petrokimya Holding A.Ş. stands as the sole producer of polypropylene in T"urkiye, with production hovering around 100,000 tons annually from a capacity of 144,000 tons. Bayegan's upcoming facility signals a significant shift in this landscape.