'Chemport' to be Established in Biga with an Investment of 5 Billion Dollars

'Chemport' will be established in Biga with an investment of 5 Billion Dollars. The chemistry specialization area is embodied. The feasibility of the project, which can reach 5 billion euros, has been completed. The chemistry specialization area is embodied. The feasibility of the project, which can reach 5 billion euros, was completed with the instruction of Deputy Prime Minister Ali Babacan to 'bring the feasibility' given a year ago. Babacan, this time instructed the start of the project. Timur Erk, President of the Chemical Industrialists Association, explained these developments. Erk said, “A presentation was also made to our Minister of Industry, Fikri Işık. We learned that a technical committee was established in the Ministry of Industry”.

The importance of this project comes from: Turkey, fuel, oils etc. Except for chemicals, it gives a deficit of 25 billion dollars in foreign trade. This region aims to produce these products, which are subject to import, and intermediate inputs. According to Erk's analysis, it is possible to produce at least half of this $25 billion deficit… That's what the Chemical Specialization Region will do. This project has another feature: It will have a more complex structure than any specialized region established in Turkey so far. This will ultimately require an investment of 5 billion euros, including infrastructure and superstructure. 5 billion euros, if we express it in dollars, it means 7 billion dollars!

AT Kearney made feasibility

AT Kearney made the feasibility of the project. Company officials were present at the presentation made to Deputy Prime Minister Ali Babacan on 29 April. Timur Erk, President of the Chemical Industrialists Association, said, “I brought the subject up at the TOBB Economy Council before, but we have been working on it for 1.5 – 2 years. One year ago, Mr. Babacan had instructed you to work. He wanted a healthy feasibility study to be carried out through specialist companies. We completed it, we did it with AT Kearney. The project turned out to be very feasible. A Technical Committee was established in the Ministry of Industry. The foreign trade deficit of the chemical industry is $25 billion, excluding oils and fuel... If this project had been realized earlier, we would have saved half of it. In addition, such a project is mandatory in terms of the sector's 2023 export target," he said.

During the feasibility, the thousands of acres of land required for the project were also investigated. Erk said, “An area of ​​30 thousand decares has been identified between Biga and Bandırma. Initially, it can be started with 15 thousand acres. Here, 20-25 companies can start the production of products with high added value, which are intermediate inputs that are not produced in Turkey.

Unit kilo price is 3 dollars criteria

Companies that support each other and produce intermediate inputs with high imports from Turkey will be preferred in order to create a cluster, rather than every company that wants in the region, which is considered to have the status of "Specialization Region". Another criterion is to produce products with high added value. Timur Erk said, “One of the criteria is that the unit kilo price in exports is over 3 dollars”. The unit weight value in Turkey's total exports is around 1.5 dollars! Erk gave the following information about the next developments: “Now we will create a structure like the Chemport Chemical Industrialists Platform. Expropriation will be done. There are public lands and small private estates in the area. A sloping land. Close to sea. The power line runs behind it. The railway passes. This place will be allocated to industrialists for 30 years, at a price per square meter to be determined. Clustering model. Each manufacturer will produce products that support each other. We are considering pipeline connections between factories.”

The most important building is the port.

What will happen in the project? Where will this 5 billion euro investment go? Timur Erk's statements are as follows: “This place cannot be without a port. The port is mandatory to prevent the passage of dangerous chemicals through the Straits. According to the AT Kearney report, 3 billion euros of infrastructure investment is required. Port, pier, water, electricity, power lines etc. When we say 2 billion euros with a comfortable superstructure, it is a 5 billion euro project. There are examples of this in the world. We have already set out from those examples.”

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Source : echo detail

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