SOCAR & Maire Tecnimont Sign EUR 350m EPC Contract

The signing ceremony of Sumgayit polypropylene plant project was held on April 15 in Baku.The contract was signed by Farid Jafarov, General Manager of SOCAR Polymer, and Pierroberto Folgiero, Maire Tecnimont CEO, at the presence of Shahin Mustafayev, Azerbaijani Minister of Economy and Industry, Federica Guidi, Italian Minister of Economic Development, Rovnag Abdullayev, President of SOCAR, Giampaolo Cutillo, Italian Ambassador to Baku, Fabrizio Di Amato, Maire Tecnimont Chairman, and other Azerbaijani and Italian delegates.

The contract has a total value equal to EUR350 million, and it relates to the realization of a 180,000 t/y (tons per year) polypropylene plant and relevant utilities and off sites facilities on a Engineering, Procurement and Construction (EPC) Lump Sum basis which will be located in the Sumgayit Petrochemical Complex.

The Sumgayit Polypropylene plant will be the first to be realized in Azerbaijan, enabling the country to grow its petrochemical industry entering the production of this segment of plastics market. Polypropylene is a basic product used for several consumer goods in a wide variety of applications, such as packaging, textiles, stationery, automotive components, electronic and electrical appliances, and several other uses. Plant is located within SCIP (Sumgait Chemical Industrial Park), which supports innovative industrial initiatives in Azerbaijan.

Maire Tecnimont S.p.A. is a company listed with the Milan stock exchange. It heads an industrial group (the Maire Tecnimont Group) that leads the international Engineering & Construction (E&C), Technology & Licensing and Energy Business Development & Ventures markets, with specific competences in plants, particularly in the hydrocarbons segment (Oil & Gas, Petrochemicals and Fertilisers), as well as in Power Generation and Infrastructures. The Maire Tecnimont Group operates in approximately 30 different countries, numbering around 45 operative companies and a workforce of about 4,300 employees, of whom over half work abroad.

SOCAR Polymer, a joint venture between SOCAR, Pasha Holding, Azersun Holding and Gilan Holding has been established in relation with construction of a plant manufacturing polypropylene (PP) and high density polyethylene (PE) products in order to strengthen the development of the chemical industry in Azerbaijan. It passed State Registration on July 16, 2013 in the Republic of Azerbaijan. Main operation directions of ''SOCAR Polymer” LLC include design and construction of the polymer production plant, procurement, installation and putting into service of necessary equipment, devices and others. It is planned to complete the construction of the PP unit with capacity 180 thousand ton/ year and commencing operation in 2017; to complete the construction of the PE unit with 120 thousand ton/ year capacity and commencing operation in 2018. Lyondell Basel is the licensor of Polypropylene unit, while Ineos Company is the licensor of the HDPE unit. It is planned to sell the 30% of manufactured products in local market, exporting the remainder to Turkey, Europe and CIS.

For more information about related Opportunities and Key Players visit Caspian Region Projects