Advanced Petrochemical and Bayegan to Form Polypropylene Joint Venture in Turkey - Deal Analysis from GlobalData

Advanced Petrochemical and Bayegan to Form
Polypropylene Joint Venture in Turkey - Deal Analysis from
GlobalData

Published: May 2012 No. of Pages: 6

Price: Single User: US $ 500 Corporate User: US $ 1500



Advanced Petrochemical Company, a Saudi polypropylene producer and Bayegan Group, a Turkish
trading company, have signed a Memorandum of Understanding (MoU) to jointly establish a
polypropylene plant in Turkey. Advanced Petrochemical will have a 70% stake in the joint venture while
Bayegan will have the remaining 30% stake. Construction of the polypropylene plant will start from the
second quarter of 2013 and commercial operation is expected to start in the fourth quarter of 2015. The
plant, with an initial investment of approximately $1 billion, will have an annual production capacity of 0.5
MMtpa.
The joint venture will seek to benefit from Advanced Petrochemical's expertise in polypropylene
production and Bayegan's distribution network. Advanced Petrochemical already owns an integrated
polypropylene complex in Saudi Arabia and is striving to achieve higher growth by directly establishing
production facilities in the fast growing markets. Bayegan will also complement its partner in the joint
venture using its strength in trading and distribution of chemicals, petrochemicals, steel products and
other commodities in the domestic and international markets.

Scope

- Rationale behind Advanced Petrochemical and Bayegan for polypropylene joint venture
- Strategic Benefits for Advanced Petrochemical and Bayegan
- Geography covered - Brazil
- Deal Financials and Valuations

Reasons to buy

- Develop a sound understanding of the major M&A''s, partnerships and joint ventures taking place in
petrochemical industry
- Identify the most lucrative segments to leverage on the growth opportunities available in the
petrochemical industry
- Take better decisions based on detailed analysis of the deal
- Know about the major companies, which are adopting a divestment or acquisition
Advanced Petrochemical and Bayegan to Form Polypropylene Joint Venture in
Turkey

1 Table of Contents

1 Table of Contents 1
1.1 List of Tables 1
1.2 List of Figures 1

2 Summary 1

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3 Advanced Petrochemical and Bayegan to Form Polypropylene Joint Venture in Turkey 1

3.1 Deal Overview 1
3.2 Deal In Brief 1
3.3 Joint Venture in Turkey will Expand Advanced Petrochemical's Market Beyond Saudi Arabia 2
3.4 Planned Plant will Satisfy Polypropylene Demand from the Fast-Growing Automotives Sector 2
3.5 Joint Venture will Enable Advanced Petrochemical to Replace Polypropylene Imports with Domestic
Production 3
3.6 Deal Financials and Valuations 4
3.6.1 Companies Involved 4
3.6.2 Detailed Partner Information 4
3.6.3 Detailed Partner Information 4

4 Appendix 5

4.1 Bibliography 5
4.2 Methodology 5
4.2.1 Coverage 5
4.2.2 Secondary Research 5
4.2.3 Primary Research 5
4.2.4 Expert Panel Validation 6
4.3 Contact Us 6
4.4 Disclaimer 6

1.1 List of Tables
Table 1: Advanced Petrochemical Company, Petrochemical Plant Details, 2012 2
Table 2: Turkey Automotive Industry, Production (Million Units), 2001-2012 3
Table 3: Turkey Polypropylene Industry, Imports (MMtpa), 2001-2011 3
Table 4: Companies Involved 4
Table 5: Partner Information 4
Table 6: Partner Information 4

1.2 List of Figures
Figure 1: Turkey Automotive Industry, Production (Million Units), 2001-2012 2
Figure 2: Turkey Polypropylene Industry, Imports (MMtpa), 2001-2011 3

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