Socar to invest $6.6 bln in Turkey facility

Socar to invest $6.6 bln in Turkey facility

ISTANBUL - Anatolia News Agency
Socar to invest $6.6 bln in Turkey facility

Economy Minister Çağlayan (R) displays an incentives document for Socar. AA photo

Azerbaijan’s state-run energy company Socar’s $6.6 billion investment in the Star refinery in the western province of İzmir has received a government incentive, Socar Turkey President Kenan Yavuz said yesterday at a press conference.

The company aims to reach $15 billion in revenue and $5 billion in export volume, with a total employment of 5,000 by 2018, he said. International rating agency Fitch’s elevation of Turkey’s rating to “investment level,” the government’s incentive, and a minimum of 35 percent of equity capital use in the financing of the investment lowered the financing costs considerably, Yavuz added.

Among the government incentives are value added tax and customs tax exemptions, a 90 percent tax cut, and a 50 percent investment contribution, according to the statement made to the Istanbul bourse by Petkim, which is owned by Socar. The government will also return value added tax for the construction works and give support to Socar in insurance premium and interest payments, according to the statement.

In his own speech at the press conference, Economy Minister Zafer Çağlayan said this was the first strategic investment incentive.

“There are nine more strategic investment applications in six different sectors that are currently being processed. The planned investments include facilities in the petrochemicals, refinery, machinery, paper, drug, ceramics, automotive supply, copper and aluminum sectors,” he said.

The total investments of Socar and these nine other projects amount to 15 billion liras, he added.