Turkey, Saudi Arabia sign Memorandum of Understanding

Turkey’s Bayegan and Saudia Arabia’s Advanced Petrochemicals are to invest 1 billion dollars in constructing a plastics plant on Turkey’s eastern Mediterranean coast.

A memorandum of understanding for the plant was signed in Istanbul on May 3 and a full joint venture agreement for the plant will be signed before September, a spokeswoman for Bayegan told dpa Friday.

Advanced petrochemicals will hold 70 per cent of the equity in the new venture with Bayegan holding the other 30 per cent, she said.

The plant will produce up to 500,000 ton of polypropylene per year for sale to manufacturers in Turkey and surrounding markets and will supply up to one third of the annual needs of the Turkish market.

The plant will produce the polypropylene from propane gas which will be bought from producers in the Middle East and transported to Turkey by tanker.