An Investment-type Development Project
GS Engineering and Construction (E&C) will participate in a US$1.4 billion petrochemical plant project in Turkey as a major investor.
The company announced on Oct. 8 that it signed a shareholder agreement with Rönesans Holding of Turkey to acquire a 49 percent stake in Ceyhan Petrokimya Endustriyel Yatrim (CPEY), a subsidiary of the Turkish business group. A signing ceremony was held in Istanbul, Turkey on Sept. 26. When the project plan is finalized, the specific stake acquisition cost will be determined.
The deal allows GS E&C to participate in CPEY’s Ceyhan Propane De-Hydrogenation-Polypropylene (PDH-PP) project, a plan to build a large-scale petrochemical complex in Turkey. The Korean contractor will take part in the project as a front-end engineering (FEED) designer and as an EPC contractor. Through this shareholder agreement, GS E&C will not only carry out basic design (FEED) and EPC tasks for the project but will earn profits from the operation of the completed plant as a major investor.
The Ceyhan PDH-PP project aims to build a plant to produce 450,000 tons of propylene and polypropylene annually at a sprawling petrochemical complex in the Jayhan region of Adana Province, Turkey. The project’s EPC work is scheduled to begin after a basic design is provided by licensors Honeywell UOP and Lyondell Basell. The plant is scheduled to start commercial production in 2024.