Yumurtalik investment will include 5 companies
Sasa, a leading polyester fiber producer, has reached the final stages of a major investment that is expected to reduce Turkey’s current account deficit by $5.2 billion. The details of the investment plans were announced at a press conference last week.
According to Erdemoglu Holding Chairman, Ibrahim Erdemoglu, the investment - $11.8 billion until 2031 – is slated for Yumurtalik, a city in eastern Adana province, and will involve five separate companies, both foreign and domestic, established under Sasa.
The investment, one of Turkey’s 23 ‘super promotion’ investments, will include a port company in which Sasa will be either a fifty-fifty partner or hold a minority stake but with speaking rights.
Speaking at the press conference, Erdemoglu said 7 companies are interested in participating in Sasa’s investment, three from Japan, two from South Korea, one from Kuwait and another from Europe. Two are interested in a strategic partnership, he added. “We will meet these companies after the environmental impact assessment report and approvals,” Erdemoglu said. “Sasa itself will not take partners but its sub-companies will. This partnership will not exceed 50 percent and the control mechanism will be at Sasa.”
Sasa was acquired by Erdemoglu Holding in 2015 when the turnover of the company was $400 million. “We researched the company for one and a half years before starting investments,” Erdemoglu said. “One of these investments is a new fiber plant with an annual 350,000-ton capacity. The plant has started production. We will complete our other investments by 2020. When these are completed, turnover will reach $1.9 billion.”
Erdemoglu also noted that the company has started work on a petrochemical investment in Adana-Yumurtalik. “6.8 million square meters of land in the region has been allocated and work on the project has been accelerated. We will invest $11.8 billion in Yumurtalik until 2031.”
He stressed that these investments will contribute in Turkey’s current account deficit by $5.2 billion when they are completed. The indirect contribution to the country’s CAD will be $12-15 billion, he added.
Erdemoglu pointed out that the environmental impact assessment report will be completed in October. “Our expropriation files are with the Industry Minister Mustafa Varank. We are waiting for the expropriation process to be completed. In 2020, we will start the production of PTA and MEG raw materials worth $1.5 billion, which Sasa needs.”
Erdemoglu stated that their shares in Borsa Istanbul have doubled since their acquisition of Sasa in 2015. Former Deputy Prime Minister, Mehmet Simsek, representing the Dome Group Financial Advisers Limited, based in London, also attended the meeting with former Borsa Istanbul Chairman and former MP Ibrahim M. Turan. Deputy general managers Guven Kaya and Irfan Baskir also made a presentation at the meeting.