Turkish Petrochemical Industry. October

Transcription

1 Turkish Petrochemical Industry October

2 AGENDA COMPANY SNAPSHOT WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR TARGETS OF TURKISH INDUSTRY TRADE RELATIONS WITH D-8 COUNTRIES SUPPORTING PROGRAMS OF GOVERNMENT FOR TURKISH INDUSTRY STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY 2

3 AGENDA COMPANY SNAPSHOT WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR TARGETS OF TURKISH INDUSTRY TRADE RELATIONS WITH D-8 COUNTRİES SUPPORTING PROGRAMS OF GOVERNMENT FOR TURKISH INDUSTRY STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY 3

4 COMPANY SNAPSHOT SOCAR&Turcas Enerji A.Ş. STEAS STRAS SOCAR&Turcas Rafineri A.S PETKİM Petrochemical Holding Co OTHER SUBSIDIARY COMPANIES Group Structure 4

5 Company Overview PETKİM Established in 1965/Second complex commissioned in 1985 The sole petrochemical producer in Turkey 25% domestic market share and well positioned assets in an ever growing market FACILITIES MAIN FEEDSTOCK PRODUCTS 15 main plants, 8 auxiliary units Located in Aliağa near Izmir Sits on a land of 19 mn sqm Harbour, water dam, power generation unit (226 MW) Adjacent to Tüpraş Aliağa Refinery Naphtha, LPG, Main product goups: olefins, polyolefins, vinyl chain, aromatics and other basic chemicals PRODUCTION Gross production about 3 mllion tons a year Capacity utilization rate (CUR) was about 98% 5

6 AGENDA COMPANY SNAPSHOT WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR TARGETS OF TURKISH INDUSTRY TRADE RELATIONS WITH D-8 COUNTRİES SUPPORTING PROGRAMS OF GOVERNMENT FOR TURKISH INDUSTRY STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY 6

7 WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR World chemicals sales : 1998: $ 1.2 trilyon 2008: $ 2.8 trilyon Petrochemicals 25% 29% Source: Cefic Chemdata International, *Asia excluding China, Japan and India

8 WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR Source: 2011 World Petrochemical Conference, CMAI 8

9 WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR Global Petrochemical Sector Turkish Petrochemical Sector Increase on demand for petrochemicals after crisis Growth expectation with an annual rate of 5.5 % between Floating and upward price of raw materials/products Increasing feedstock costs caused depression of margins Globally, especially Asia and growing markets are driving forces Consolidation/rationalization of high cost, inefficient capacities Political & economical uncertainties Strong demand on petrochemical products; market reached to the condition as in the times before crisis Strong growth domestically (In 2010, market grew by 15 % compared to previous year) Expectation for sector volume to rise over 8 billion $ by the end of * Source: BMI Industry View Q1 2011

10 PETROCHEMICALS GLOBAL PERSPECTIVES Middle East Market Advantage goes towards Asia Developed countries tend to produce value-added products * Renewed gulf reemerges (Gulf of Mexico) * New gulf (ME) advantage is kept 10

11 REFINERIES AND PETROCHEMICAL INDUSTRIES IN TURKEY-LOCATIONS BLACK SEA Aksa Korteks Tupras Petkim IZMIR Tupras ANKARA MEDITERRANEAN AdvanSA/Artensa Basic Ind.(Baser) Refinery Petrochemical Complex Fiber Producer 11

12 Overview Plastic Processing in Turkey Annual Production Capacity 4th biggest country in Europe in 2004, with Spain Company Number ( Included Plastic Processing Machine Manufacturer Company Number whit foreign Investor 2010 : 6.1 million tons Employment (necessities educated personnel each year) Production value Value added in economy 2009: 14.5 Billion $ 2010: 16.5 Billion $ 2009: 5.8 Billion $ 2010: 6.6 Billion $ Plastics Production Value/GDP 3 % Total Export (E) 8 Billion $ Number of Company in the biggest 1000th

13 COMPARISON OF PLASTICS PROCESSING CAPACITY (TURKEY & EUROPEAN COUNTRIES) Turkey: With approx. 5 million tons plastics processing capacity, the 4th biggest country in Europe, with Spain. Sector Vision: To Be The Biggest In Europe Million Tons CHINA : 37 INDIA : 12 BRAZIL : 5.4 MILLION TONS/YEAR 2 0 Germany Italy France Spain Turkey UK Capacity

14 AGENDA COMPANY SNAPSHOT WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR TARGETS OF TURKISH INDUSTRY TRADE RELATIONS WITH D-8 COUNTRİES SUPPORTING PROGRAMS OF GOVERNMENT FOR TURKISH INDUSTRY STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY 14

15 WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR THE WORLD EUROPE Türkiye World s 16. biggest economy Türkiye Europe s 6. biggest economy Biggest World Economies With Respect to Purchase Power Index GDP, Tril. Dolar, 2009 Source: IMF, World Economic Outlook, October

16 Country GDP: rate and per capita Turkey is expected to be the fastest growing economy of the OECD members during , with an annual average growth rate of 6.7 percent. Source: OECD Economic Outlook No: 86 16

17 TARGETS OF TURKISH INDUSTRY Criterion Türkiye's Rank Among World Economies Export Share in GDP (%) 16.5 % 17.5 % % % Export to Import Ratio (%) 72.5 % 65% 75% 80% Import (billion $) Export (billion $) Annual Export Growth Rate (%) % 11.5 % 12.0 % 12.0 % Türkiye's Share in Total World's Export (%) 0.84 % 1.0 % 1.15 % 1.5 % Source: TIM, 2023 Export Strategic Report 17

18 TARGETS OF TURKISH INDUSTRY Annually Average 12 % Export Increase (billion $) Source: TIM, 2023 Export Strategic Report 18

19 TARGETS OF TURKISH INDUSTRY Annual Average Growth Rate 50.0 Chemistry Industry Export, billion $ (World 2023 forecast 6.6 trillion $) Turkish Chemistry Export Share in Total World Export 0.44 % 0.79 % Türkiye, by its planned investments, foresees that it will have an export share of 0.79 % in World s Total Export 19 Source: TIM, 2023 Export Strategic Report

20 TARGETS OF TURKISH INDUSTRY Source: TIM, 2023 Export Strategic Report 20

21 AGENDA COMPANY SNAPSHOT WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR TARGETS OF TURKISH INDUSTRY TRADE RELATIONS WITH D-8 COUNTRİES SUPPORTING PROGRAMS OF GOVERNMENT FOR TURKISH INDUSTRY STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY 21

22 Export & Import Chemicals (Billion USD) (*) Source: TURKSTAT (*) Annualized as of July 2010 Plastics& Rubber (Billion USD) 22

23 Turkey İmport from D8 Countries Turkey import from D8 7% D8 93% Other Brackdown of Import 8% 6% 7% 6% 5% 11% 57% Pakistan Nigeria Malaysia Iran Indonesia Egypt Total : billion US$ D8 Countries :12.3 billion US$ Bangladesh Source: ITC 23

24 Turkey Export to D8 Countries Turkey Export to D8 5,66 Brackdown of Export 3% 4% 4% 3% Pakistan Nigeria 35% Malaysia 94% D8 Other 4% 47% Iran Indonesia Egypt Total : 114 billion US$ D8 Countries :5.96 billion US$ Bangladesh Source: ITC 24

25 Chemicals Imports Turkey Chemical import from D8 11% Breakdown of Chemicals import 39 Plastics 5% 5% 4% 40 Rubber 12% 8% 43% 39 Miscellaneous chemical 28 Inorganic chemicals, 89% Chemicals Other 23% 31 Fertilizers 29 Organic chemicals Others Total : 28.4 billion US$ D8 Countries :1.4 billion US$ Source: ITC 25

26 Chemicals Exports Turkey Chemical export to D8 88% 12% Chemicals Other 7% 6% 6% 8% Breakdown of Chemicals Export 5% 7% 13% 13% 35% 39 Plastics 40 Rubber 28 Inorganic chemicals, 32 Tanning, dyeing,pigments etc 29 Organic chemicals 39 Miscellaneous chemical products 33 Essential oils, perfumes, 34 Soaps, lubricants, waxes, Others Total : 10.0 billion US$ D8 Countries : 0.72 billion US$ Source: ITC 26

27 Trade Balance by Products Between D-8 and Turkey Product code Product label Trade Balance between D-8 and Turkey TOTAL All products '39 Plastics and articles thereof '40 Rubber and articles thereof '38 Miscellaneous chemical products '31 Fertilizers '28 Inorganic chemicals, '29 Organic chemicals '37 Photographic or cinematographic goods '30 Pharmaceutical products '36 Explosives, pyrotechnics, matches, etc '35 Albuminoids, modified starches, glues, enzymes '34 Soaps, lubricants, waxes, candles, '33 Essential oils, perfumes, cosmetics, toileteries '32 Tanning, dyeing extracts, tannins, pigments etc TOTAL All Chemicals mineral oil excepted Product code Product label Trade Balance between D-8 and Turkey '3901 Polymers of ethylene, HDPE,LDPE '3907 Polyether,PET '3902 Polymers of propylene '3904 Polymers of vinyl chloride '3903 Polymers of styrene Source: ITC 27

28 Global foreign direct investment (FDI) FDI flows, by region and economy (2010) (Millions of dollars) FDI Inflows FDI outflows World Devoloped economies Devoloping economies D8 Total Egypt Nigeria Turkey Bangladesh Pakistan Iran Endonesia Malaysia FDI stock, by region and economy, 2010 (Millions of dollars) FDI inward stock World Devoloped economies Devoloping economies D8 Total Egypt Nigeria Turkey Bangladesh Pakistan Iran Endonesia Malaysia The World Investment Report

29 AGENDA COMPANY SNAPSHOT WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR TARGETS OF TURKISH INDUSTRY TRADE RELATIONS WITH D-8 COUNTRİES SUPPORTING PROGRAMS OF GOVERNMENT FOR TURKISH INDUSTRY STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY 29

30 SUPPORTING PROGRAMS OF GOVERNMENT FOR TURKISH INDUSTRY The New Incentive Regulation The new investment regulation was enforcement in 2009 Regulation was revised in 2011 Input Supply Strategy in Chemical Industry Coordinated by Ministry of Economy Aim: Support to increase basic raw material production Document of Strategy and Action Plan in Turkish Chemical Industry Coordinated by Ministry of Science Industry and Technology Aim: Become a center in invest in Turkey, by producing high value-added products, 30

31 SUPPORTING PROGRAMS OF GOVERNMENT FOR TURKISH INDUSTRY Document of Strategy and Action Plan in Turkish Chemical Industry Clustering should be supported and widespread Special Chemical Industry Zones should be established on coastal regions By the end of 2012, export share should be increased from 10% to 15% Domestic production is planned to be supported in Public Tenders Chemistry downstream sectors competitive with world should be determined Source: Turkish Chemistry Sector and Strategic Action Plan Paper ( ) 31

32 SUPPORTING PROGRAMS OF GOVERNMENT FOR TURKISH INDUSTRY Research & Development for Domestic Raw Material Source Based Production Production of special and value-added products should be promoted New technoparks should be built wherein chemistry sector has a predominance Prior investment fields should be determined about petrochemicals Chemistry Sector Development Commission should be established Supports should be provided to direct foreign investments within frame of Incentive Regulation Source: Turkish Chemistry Sector and Strategic Action Plan Paper ( ) 32

33 AGENDA COMPANY SNAPSHOT WORLD & TURKISH DOMESTIC PETROCHEMICAL SECTOR TARGETS OF TURKISH INDUSTRY TRADE RELATIONS WITH D-8 COUNTRİES SUPPORTING PROGRAMS OF GOVERNMENT FOR TURKISH INDUSTRY STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY 33

34 STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY SOCAR&Turcas Group targets to be the biggest power generation and production facility by realizing Petkim Value Site Cluster Project within frame of Refinery- Petrochemical-Energy-Logistics Integration on Petkim Peninsula PETKİM LAND DOWNSTREAM WIDE PRODUCT RANGE VALUE-ADDED SPEACIAL/FINE CHEMICALS CLUSTER MODEL (PETKİM VALUE-SITE ) 4 MAIN GROWTH STRATEGIES UPSTREAM SOCAR&TURCAS AEGEAN REFINERY (STAR) ENERGY GENERATION LOGISTICS & TRADE 34

35 STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY With respect to market survey and import amounts, 25 potential new products are prioritized; 25 new potential products PP PVC HDPE PS LDPE PET ACN LDPE PTA MEG CARBON BLACK SBR ABS PA 2- ETHYL HEXANOL LAB TDI CBR POLYCARBONATES PROPYLENE GLYCOL MALEIC ANHYDRIDE ISO-PROPANOL ACRYLIC ACID ACRYLATES POLYETHER ALCOHOLS (POLYOL) 35

36 STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY Import Data for the chosen 25 products (2010 year prices) Amount: tons $ Imports if any other investments are not realized Amount: tons $ Annually average 5.5 % growth 36

37 STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY Türkiye s import amount will significantly be decreased by the planned capacity expansion and new plant investments till 2023 With foreseen increasing capacity of sellable products, Türkiye s import amount will decrease from 7 mn. tons/yr. to approximately 4 mn. tons/yr. as of 2023 Drop about 3 mn tons/yr. of Türkiye s import amount 37

38 STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY Even though in case Naphtha Cracker producing ethylene with a capacity of 2,700,000 tons/year is established by the year 2020, Türkiye will still need nearly 1,300,000 tons/year propylene So, Türkiye Petrochemical Industry should focus on on- purpose propylene production and make plan 38

39 STRATEGIC PLANS & INVESTMENTS FOR PETROCHEMICAL INDUSTRY PETKİM CLUSTER MODEL & JURONG ISLAND FOR AN EFFICIENT CLUSTERING; World scale production, Vertical integration with refinery for basic raw materials production, Integrated structure with downstream sectors as automative, packaging, construction and other chemistry related downstream areas, A synergetic structure equipped with its energy/utility supply, warehouse/logistics capabilities and various service companies, An infrastructure with at least 3 different types of transportations (sea, river, road,railway, pipeline, etc ), A big potential for manpower, PLUG&PLAY management system is an attractive model for investors. 39

40 THANK YOU 40