Shearman & Sterling advised Algerian energy company Sonatrach on the shareholders’ agreement with Turkish conglomerate Rönesans Holding for the development of a $1.2 billion polypropylene production facility in the Ceyhan Petrochemicals Industry Zone, located in the province of Adana, Southern Turkey.
Set to be completed in 2023, the facility will process propane gas into polypropylene, a raw material used in the manufacturing of plastic and rubber. With a capacity of around 450,000 tons per annum, the plant is expected to satisfy Turkish demand and reduce the country’s foreign trade deficit.
This new partnership is in line with Sonatrach’s international expansion and diversification strategy. It will strengthen economic relations between Algeria and Turkey and allow Sonatrach to place its propane on the Turkish market through a long-term contract.