SOCAR speaks of chances to buy Turkish assets of EWE AG

The enterprise exported large volumes of cable products for construction of the large shopping center, Kyzylorda Plaza in Kyzylorda, one of the largest cities in Kazakhstan.

Kyzylorda Plaza, which is constructed on an area of 30.000 square meters, will be one of the largest shopping centers in Kazakhstan.

The company with wide range of products in foreign markets has concluded a large-scale contract on cable export with Georgia, Kazakhstan, Tajikistan and Kyrgyzstan. Currently, the signed contracts are being executed.

The STP sets goals to increase its operations in the Asian market in the following years, as well as to access Western European and African markets.

The enterprise's cable plant produces medium, high and extreme high voltage power cords of up to 500 kV in 28,000 types, stationary and non-stationary, control, XLPE, coaxial, shipbuilding, cable for armored oil wells, various types of optical telephones, high-temperature resistant, tin-coated cable for grounding. The plant’s high-tech manufactured products are competitive and widespread in both domestic and foreign markets.

STP is a pioneer in the creation of technology parks in the region and is a complex of giant factories specializing in various manufacturing areas. In 2017, it received a status of a resident of Sumgayit Chemical Industry Park.

STP, a unique project in the region, fully meets the needs of the domestic market and is capable of exporting enough products to the foreign market. At present, 2000 people work in the company, and there are 12 factories equipped with the latest technological equipment in Europe and Japan and more than 30 production areas. Raw materials used in the production process meet international standards. All factories of the Techno Park are equipped with European-produced laboratories and accredited in accordance with the AZS ISO / IEC 17025-2009 standards. All products have relevant certificates. ISO 9001, ISO 14001 and OHSAS 18001 international standards are also applied at the STP.

He was commenting on the information about SOCAR’s interest in the assets of the Turkish division of the German giant EWE AG – EWE Turkey Holding.

Turkish media have earlier reported that EWE AG is preparing to withdraw from the energy market of Turkey and to sell its stake in gas distribution networks Bursagaz AS and Kayserigaz AS. It was reported that the management of EWE Turkey Holding has already held a number of meetings with potential buyers.

The price of the German company’s share in the gas distribution enterprises in Bursa and Kayseri offered for sale is $200-250 million. EWE AG owns 80 percent of the shares of Bursagaz AS and Kayserigaz AS, and the remaining 10 percent is owned by Calik Enerji energy and the relevant municipalities.

“There were no specific meetings in this regard. In general, we are constantly studying and evaluating various investment opportunities within our activity. They must be in line with our activity and strategy,” LeCompte said.

He added that following the principle of “one nation – two states,” SOCAR Turkey Enerji will continue its activity and will invest in Azerbaijan and Turkey with the aim to improve the welfare of the two countries.

It is expected that SOCAR Turkey Enerji’s consolidated turnover will reach $15 billion in 2018, and the company will become the second largest industrial company in Turkey with 5,000 employees and $3 billion of export potential.

SOCAR Turkey Enerji aims to become the largest Turkish industrial company by 2023. The company also owns a controlling stake (51 percent) in the Petkim petrochemical complex on the Aliaga Peninsula.

Founded in 2008, SOCAR Turkey Enerji is one of the most wellestablished oil and natural gas companies of the world. With its total investment volume of $19.5 billion to be realized by 2020, SOCAR is the biggest foreign investor of Turkey. Similarly, SOCAR’s group companies in Turkey, namely Petkim, STAR Refinery, Petlim Container Terminal and Trans-Anatolian Natural Gas Pipeline (TANAP), represent the largest-scale investment Azerbaijan has made to a single country to date.