Plastics News Europe - October 2019 - 10

MARKETS & BUSINESS

➡ Continued from page 8
Indicative of this is Japanese investment this past year. Sumika Polymer Compounds acquired Turkey's
Emas Plastics, a leading producer,
while Japan's DIC Corporation group
acquired Makro Chemical Industrial,
a polyeurathane producer. India's Varroc acquired Sa-Ba Industrial Products
Manufacturing, one of the Turkish
automotive sector's plastics suppliers,
according to Türker.
Such investments have added to
the growing pool of foreign shareholders in the industry, with stakes in
389 producers. According to PAGEV,
of 202 foreign plastics producers operating in Turkey, 52% are European
(12% are German, 8% are Italian,
and French and Dutch investors account for 6%), 14% Syrian, and 7%
are Iranian. Syrian investment increased following the outbreak of the
Syrian conflict and resulting civil war
in 2011, with Syrian manufacturers
setting up in neighbouring Turkey because of its proximity and safety.
As for basic plastics supplies, new
investments in polyethylene and
polypropylene are soon expected to
reduce the costs of final product
manufacturers.

Sumika Polymer Compounds Europe has signed an agreement
to acquire Turkish plastics group Emas. The deal includes three
compounding sites with "extensive compounding expertise"

A consortium of Turkish investment firm Rönesans Holding and
Algeria's Sonatrach are planning to
build a USD1.2 billion, 450,000
tonnes per year polypropylene production facility in Ceyhan in southern Turkey that is slated to be operational by 2023, while a joint
venture between Qatar's Fusion Dynamics and Turkey's Metcap Energy
to build a USD4 billion natural gas
chemical plant in the Thrace basin
will produce 400,000 tonnes of PE
and 600,000 tonnes of PP. Another
project, financed by Istanbul-based
CFS Petrochemicals, in Adana, will
produce 500,000 tonnes of PP per
year.

Such investment will raise Turkey's
production capacity to 846,000
tonnes of PE, and 1.69 million tonnes
of PP by 2023. Henceforth, "about
33% of PE and 58% of PP domestic
consumption will be able to be met
by local production, the remainder by
imports," said Demirci. He forecasts
domestic Turkish consumption of
plastic raw materials will reach 7 million tonnes, valued at USD9.4 billion,
by the end of 2019.
So, while Turkey's plastics sector
maybe facing some tough economic
headwinds at present, its longer-term
future looks solid, with demand and
supply both domestic and overseas
looking sustainably balanced.

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Plastics News Europe - October 2019

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