Rönesans Holding, one of Turkey’s leading contracting and investment conglomerates, has completed funding for the construction of a huge new PP production plant and port facility, one of the country’s largest private sector projects.
This $2 billion project is designed to increase Turkey’s industrial self-sufficiency and strengthen its global trading position, thereby reducing the country’s reliance on imported goods.
The development is divided into two independent components, each supported individually by international financiers. The first is the PP production plant, which is being developed by Rönesans and SONATRACH (as a stakeholder and feedstock provider), and will have an annual production capacity of 472 500 t, meeting approximately 17% of Turkey’s PP demand.
“This development exemplifies our commitment to sustainable, high-impact investments that support Türkiye’s economic and industrial ambitions,” said Erman Ilicak, Honorary President of Rönesans Holding. “The Ceyhan PP Plant will not only bring hundreds of new jobs to the region but also secure a more resilient and competitive supply chain for PP, a vital raw material for industries across Türkiye and Europe. Furthermore, the fact that the project is fully financed by foreign resources highlights our ability to attract international investment, strengthening both foreign financing and FDI inflows into Türkiye.”
In this regard, Rachid Hachichi, CEO of SONATRACH, stated: “The decision to invest in Türkiye is mainly driven by the dynamic and expanding market demand for PP. This location proves to be ideal considering its well-established and constantly evolving industry. In-depth studies reveal favourable economic prospects and promising profitability indicators.”
The second component is the terminal facility, which will be built in collaboration with Stolt-Nielsen’s global bulk liquid storage company, Stolthaven Terminals, and will provide jetty and feedstock storage services to the new plant and other potential clients.
Guy Bessant, President of Stolthaven Terminals, added: “We are pleased to partner with Rönesans Holding on this landmark project. Stolthaven Terminals has more than 50 years’ experience in the safe and efficient handling and storage of bulk liquids and gases, and proven expertise in developing complex and large scale storage projects. This terminal will not only provide storage for the Ceyhan PP Plant but is also part of the DAPEK Industrial Zone which, in future, could provide storage and logistics solutions for local and international companies looking for distribution services in the region.”
Both projects will employ ecologically sophisticated technologies to assure production efficiency and sustainability. The PP production plant promises to have the lowest GHG emissions per tonne of PP produced worldwide, thanks to 100% renewable electricity and high-efficiency production processes.
The projects have received strong international financial backing, with a loan package totaling US$1.3 billion from international financiers, including, for the production plant, the US International Development Finance Corporation (DFC) together with a consortium of international commercial lenders under Cesce coverage, including ING (also acting as Global Coordinator and Documentation Bank), BBVA, Denizbank AG – Austria, DZ BANK, and TAEF (formerly Apicorp).
Turkey is one of the world’s top importers of polypropylene, with demand driven by important sectors including as automotive, textiles, and packaging. Currently, Turkey’s entire annual PP consumption is roughly 2.7 million t, with local production capable of supplying just about 100,000 t of material to the market.
The Ceyhan PP production factory will be strategically positioned within Türkiye’s DAPEK Industrial Zone, delivering logistical and financial benefits that are expected to boost the local economy and lower Turkey’s trade imbalance by about $300 million per year. The project is estimated to provide 4500 construction jobs at peak and 300 permanent jobs once operational.
The project, which aligns with Rönesans Holdings’ fundamental values, involves activities to improve local skills and employment prospects. Programmes, such as a welding school built for the plant, will promote education and skill development in the region, providing long-term benefits to the Ceyhan community and contributing to Turkey’s socioeconomic development.