Turkey’s plastics conversion to double over next four years

Conversion of plastics in Turkey will double from year-ago levels over the next four years, rising from an estimated 6.5 million tonnes/yr in 2009 to 11.3 million in 2013 and 13 million by 2014. In part to accommodate this increasing demand, domestic upstream petrochemicals output is set to rise as well, with a $3 to $3.5 billion refinery set to open in 2015, according to a Research and Markets' Turkey Petrochemicals Report.

Turkey's ethylene production capacity remained unchanged from last year at 520,000 tonnes, providing feedstock for ethylene glycol, oxide, and dichloride plants, as well as 100,000 tonnes/yr of high-density polyethylene (HDPE) and 310,000 tonnes/yr low-density polyethylene (LDPE). Turkey also has 150,000 tonnes/yr of polypropylene (PP) capacity, plus 150,000 tonnes of vinyl chlorine monomer and polyvinyl chloride (PVC) capacity.

Given the explosive growth in Turkey's processing sector, the report does state that there are "positive signs" that an expansion is likely in coming years. The State Oil Co. of Azerbaijan (SOCAR) announced in 2010 that it intended to invest $10 billion over the next seven to eight years in Petkim's operations.

Turkey's plastics market is forecast to recover strongly and outpace other countries in Central and Eastern Europe. Capacity utilization in the manufacturing sector reached 74.7% in July, its highest level since September and has stayed above 70.0% since April of last year. Turkey's economy is forecast by Research and Markets to expand at a rate 4.7% in terms of real GDP in 2011.

The consumer sector and large-scale infrastructural work over coming years will propel Turkey's economy going forward. Growth will be especially felt in PVC used in construction and PP used in consumer durables and car production. —PlasticsToday Staff