Baku, July 19, AZERTAC

“Azerbaijan used the model of project financing for the first time using the example of a polypropylene plant within the framework of the SOCAR Polymer project. The decision was made in order to reduce risks”, SOCAR president Rovnag Abdullayev stated at the official opening of “SOCAR Polymer” held with the participation of Azerbaijani President Ilham Aliyev and the Italian President Sergio Matarella.

Noting high standards of construction, Abdullayev stressed that the main feature of project financing is that there is no guarantee from the state or SOCAR. This means that all debt obligations will be paid out of income from the project and the project itself is a pledge. At his words, the production plants of SOCAR - the Heydar Aliyev Oil Refinery, Sumgait ethylene-polyethylene plant of SOCAR's Azerikimya Production Unit in Sumgait and the SOCAR Polymer are closely integrated with each other what would make the production process more effective. The enterprise will employ over 500 people.

The total cost of SOCAR Polymer is about $ 800 million. It is planned that the project will pay off within seven years from the beginning of production.

“Maire Tecnimont” is a reliable partner in our joint projects, has proved its high professionalism in numerous operations. “The revival of the chemical processing industry in Sumgayit is a new and sustainable source of income for our country. Three major projects of SOCAR in the processing and chemical industry are to be completed this year. Commissioning of the STAR Refinery in Turkey, SOCAR Carbamide and SOCAR Polymer in Azerbaijan this year will give extra momentum to the next stage of the overall mission, which adds value to our national wealth,” Abdullayev underlined.

Note, the largest chemical enterprises - SOCAR Polymer and SOCAR Carbamide, built in the region in recent years, will be put into operation this year. An important feature of SOCAR's projects in the chemical industry is that these enterprises will establish a value chain with other companies of SOCAR. The Heydar Aliyev Oil Refinery will be integrated into the value chain with an Ethylene-Polyethylene Plant of Azerikimya and two plants of SOCAR Polymer in Sumgayit, which will ensure higher efficiency in the production. By contributing to the raw material supply of the Petkim Complex, another strategic asset of SOCAR, STAR Refinery in Turkey will connect the two enterprises in a single value chain.