2 billion dollars for Ceyhan; total investment in Türkiye to reach 14 billion dollars within three years
Dr. Erman Ilıcak, President Emeritus of Rönesans Holding, shared updates on the Ceyhan project.Ilıcak began with a brief history of Rönesans Holding:
- We laid the foundations of Rönesans in 1993 in Russia through the work we undertook in St Petersburg. For 32 years, we have operated abroad under the most challenging, most competitive conditions. We started with engineering and expanded into contracting.
He noted that Rönesans had become Türkiye’s largest contracting company, ranking among the top 50 worldwide and the top 10 in Europe:
- To date, we have undertaken 50 billion dollars of overseas contract work. We have grown into a global company with operations in more than 30 countries. We employ 35,000 people. More than half of our revenue comes from abroad.
He reported that Rönesans had invested 10 billion dollars in Türkiye over the past 20 years:
- We have carried out these investments with the foreign capital and international financing we have attracted to the country.
He added that Rönesans began preparations for the Polypropylene (PP) production plant and liquid bulk terminal in Ceyhan at the end of 2018:
- We will invest 2 billion dollars in the project. Including the PP plant in Ceyhan, we plan to invest a total of 4 billion dollars in Türkiye over the next three years. This will bring our total investment in the country to 14 billion dollars.
He stressed that, alongside infrastructure and Public-Private Partnership (PPP) projects, they are continuing to invest in renewable energy and commercial real estate:
- We are preparing to implement the newest example of our investment model in Ceyhan. With this 2 billion dollars investment, including 1.3 billion dollars in international financing, we are establishing a polypropylene production plant with a capacity of 472,500 tonnes and a liquid bulk terminal.
He underlined that they had partnered with Algeria’s Sonatrach for the polypropylene plant and Norway’s Stolt-Nielsen for the liquid bulk terminal:
- Together with our partners, we are providing 700 million dollars in equity. We are working with more than 30 companies from 12 countries on the project. Behind this lies a six-year journey of development and financing.
About a year ago, we secured one of the largest private-sector financings provided entirely by international financiers and, as a result, commenced construction.
Erman Ilıcak highlighted that they would also implement an industrial zone project in Ceyhan that includes the majority-owned polypropylene plant:
- During preparations for the Eastern Mediterranean Petrochemical Cluster and Port (DAPEK) project, we examined the Port of Rotterdam and Jurong Island in Singapore. Drawing inspiration from the world’s best examples, we launched the DAPEK project.
With the DAPEK Industrial Zone initiative, set to become one of Türkiye’s largest, the company reinforced its ambitions in the petrochemical sector.
DAPEK is expected to attract 20 billion dollars in investment
Dr. Erman Ilıcak, President Emeritus of Rönesans Holding, stated that the Eastern Mediterranean Petrochemical Cluster and Port (DAPEK) project launched in Ceyhan is set to become one of Türkiye’s largest industrial zones:- DAPEK covers a total area of 2,750 hectares, including 1,340 hectares on land. The polypropylene plant we have begun constructing with Sonatrach will be one of the investments within the DAPEK Industrial Zone. We will prepare the infrastructure with an expenditure of between 1 and 1.5 billion dollars.
He stated that, in addition to the liquid bulk terminal, a container port is also planned within DAPEK:
- We will complete critical infrastructure works in DAPEK, including electricity, natural gas, water, and railway connections. The DAPEK Industrial Zone will be open to investors in the petrochemical sector.
We expect the DAPEK Industrial Zone to attract investments totalling around 20 billion dollars. With its infrastructure, logistics advantages, and incentives under the industrial zone framework, DAPEK will be a fully equipped investment area.
Erman Ilıcak noted that they would expand the DAPEK Industrial Zone together with their global partners:
- Investors need not look far. DAPEK in Ceyhan can easily become Türkiye’s petrochemical production hub.
A 300 million dollar improvement in the current account balance
He stated that Türkiye’s annual import volume of plastic raw materials is around 8 million tonnes:- After China, we are the world’s second-largest importer of plastic raw materials. Polypropylene and polyethylene are among the products with the highest share in our foreign trade deficit.
He noted that the polypropylene plant under construction in Ceyhan is scheduled to become operational in 2027:
- Our polypropylene production will replace imports worth 300 million dollars, contributing to an improvement of this level in the current account balance.
He emphasised that Gaziantep, Adana and Kayseri are among the cities where polypropylene is most widely used in Türkiye:
- We have signed a long-term propane supply agreement with Algeria’s Sonatrach, securing the supply of raw materials.
He also shared the partnership structure of the polypropylene investment:
- Rönesans will hold a 66% stake, while Sonatrach will hold 34%.
We established a welding school and safely released 9,000 green sea turtles
He underlined that they will focus on “green energy” in Ceyhan:- We are preparing to meet the entire electricity demand of our polypropylene plant from renewable energy sources. In doing so, our carbon emissions will be 60% lower than those of comparable facilities.
He stated that 65% of employment would be provided from the local region:
We have established the Ceyhan Welding School, which has seen 400 trainees graduate since 2022.
He gave examples of their environmental initiatives:- We have safely released 9,000 sea turtles into the sea.
- We have protected 2,600 plants of the endangered species locally known as “hoşnergis.”
Our turnover is 4 billion euros; we have a growth model built on global partnerships
Dr. Erman Ilıcak, President Emeritus of Rönesans Holding, stated that they closed last year with a turnover of 4 billion euros and highlighted the company’s contracting operations:- We are undertaking projects in more than 30 countries. We prefer to operate in countries where we can employ Turkish engineers and workers. We have significant operations in the Netherlands, Germany, and Switzerland, while Kazakhstan, Uzbekistan, and Turkmenistan are among our major markets.
He stated that Rönesans’s business model is built on innovation, development, and partnerships, giving several examples:
- The International Finance Corporation (IFC), part of the World Bank Group, became a shareholder in our holding company, demonstrating its confidence in us.
- Singapore’s GIC is a partner in our real estate company. We have created Türkiye’s largest investment platform in commercial real estate, and we listed this company on the stock exchange last year.
- In our healthcare investments, we work together with Japan’s Sojitz, South Korea’s Samsung C&T, and France’s Meridiam.
- In the energy sector, we have a partnership with TotalEnergies.
We built six of Türkiye’s 18 city hospitals and transferred the model to Kazakhstan
Dr. Erman Ilıcak, President Emeritus of Rönesans Holding, stated that they are among the key players in Türkiye’s healthcare transformation:- We have built six of Türkiye’s 18 city hospitals together with our international partners, such as Meridiam, Sojitz, and Samsung C&T. We financed the Elazığ City Hospital through a green bond.
He underlined the following point:
- The pandemic and the 6 February earthquakes have shown that city hospitals are strategic and vital invtments.
He emphasised that the engineering and financing models developed for city hospitals have become international benchmarks:
- We have transferred the model to Kazakhstan, and we foresee that it can serve as a reference for other countries as well.es
Source: Vahap Munyar / Ekonomim