The SOCAR Polymer LLC, a subsidiary of Azerbaijan's state oil company, will reach full capacity in the production of high density polyethylene in 2023.
According to the updated government forecasts, by the end of 2019, 48,200 tons of high density polyethylene and 110,000 tons of polypropylene will be produced at the company's plants, local media report.
Meanwhile, the high density polyethylene production at the SOCAR Polymer plant will amount to 97,400 tons in 2020, 110,000 tons in 2021, 115,000 tons in 2022, and 120,000 tons in 2023.
Thus, in 2023, the plant will reach full capacity in the production of high density polyethylene.
As to the production of polypropylene, SOCAR Polymer will increase production to reach 140,000 tons in 2020, to 150,000 tons in 2021, 160,000 tons in 2022, and 170,000 tons in 2023.
In July 2018, SOCAR Polymer commissioned a polypropylene plant. The design capacity of the plant is 184,000 tons of polypropylene per year.
In February 2019, the company put a plant for the production of high density polyethylene into operation with a capacity of 120,000 tons of finished products per year.
In general, SOCAR Polymer plants are designed to produce 10 types of polypropylene and 4 types of high density polyethylene.
The total investment costs of the project are estimated at $816 million. The credit in the amount of $489 million has been allocated to SOCAR Polymer by Russian Gazprombank for a period of 10 years.
SOCAR Polymer was established by SOCAR, the state-owned national oil company, producing oil and natural gas from onshore and offshore fields in the Azerbaijani section of the Caspian Sea.
Currently, SOCAR's share in the company’s capital amounts to 52.2 percent. Other shareholders are Vitol Black Sea V.L.L (19 percent), PASHA Holding (9.9 percent), Ecoland (9.8 percent), Polimer Investment (5 percent) and AKKIK (4.1 percent).
SOCAR Polymer is a project of international standing and the first of its kind and scale to be implemented in the petrochemical industry of Azerbaijan over the past 40 years.