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2 Billion USD Polypropylene (PP) Production Plant and Terminal Investment to Contribute $300 Million Annually to Türkiye's Trade Balance

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2 Billion USD Polypropylene (PP) Production Plant and Terminal Investment to Contribute $300 Million Annually to Türkiye's Trade Balance
Business

Business

2 Billion USD Polypropylene (PP) Production Plant and Terminal Investment to Contribute $300 Million Annually to Türkiye's Trade Balance

2025-04-25 21:36 Last Updated At:21:55

ISTANBUL, April 25, 2025 /PRNewswire/ -- Rönesans Holding, one of Europe's leading contracting and investment groups, has initiated one of the largest private sector investments in Türkiye to date: the construction of a new Polypropylene (PP) Production Plant and Liquid Bulk Terminal in Ceyhan. With a total investment of $2 billion, these strategic projects aim to increase Türkiye's industrial self-sufficiency, reduce foreign dependency, and enhance the country's position in global trade.

Dr. Erman Ilıcak, Honorary President of Rönesans Holding, said: "Once operational, these projects will directly contribute USD 300 million annually to reducing Türkiye's current account deficit."

Rönesans Holding recently announced that it has secured total of $1.3 billion in financing for these projects –from the U.S. International Development Finance Corporation (DFC) and Spain's Export Credit Agency (Cesce).

Dr. Ilıcak highlighted the group's longstanding role in advancing Türkiye's economy through value-added projects: "Our story began with international contracting services. To date, we have undertaken projects worth a total of USD 50 billion. Seventy per cent of this, approximately USD 35 billion, was carried out abroad, and we have pioneered many firsts in the world in this field. We have worked on a wide range of projects, from Europe's longest tunnel to its tallest building, from the world's largest GTG facility to the world's largest seismically isolated building. Following this, we became a large-scale investment holding company operating in real estate, social infrastructure, renewable energy, and more recently, industrial facilities. Over the past 15 years, with the significant contributions of stakeholders such as the World Bank's investment arm IFC and the EBRD, we have structured our business in line with sustainable development goals."

He continued: "Our model is centred on developing the right project with the right partners, and delivering it at the right time. We have successfully implemented this model with partners such as Singapore's sovereign wealth fund GIC, Meridiam Infrastructure from France, Japan's Sojitz, Samsung C&T, and TotalEnergies. Together, we have completed $10 billion worth of investments in Türkiye. These initiatives have laid the foundation for broader transformation, and we will continue to focus on projects that help reduce our country's trade gap."

Ceyhan Projects Developed with Expertise from 12 Countries

Reflecting on shifting global economic trends, Dr. Ilıcak said: "Protectionism is increasing, and supply chains are being reshaped. Energy and production are becoming localised. This transformation holds significant opportunities for countries like ours. In particular, strategic heavy industry investments are needed to reduce the foreign trade deficit arising due to imports of industrial machinery, plastics and chemicals, as well as industrial and precious metals. Over the past 10 years, industrial investments totalling approximately USD 20 billion have been made in Türkiye, including projects worth over USD 500 million. But this is not enough."

He further emphasised: "To close the gap, Türkiye needs to allocate at least $12 billion annually over the next five years, totalling $60 billion. If an investment initiative of this scale is undertaken, we could see a USD 15 billion annual increase in GDP and a USD 10 billion reduction in the foreign trade deficit. At Rönesans Holding, we have secured international financing for our Ceyhan Polypropylene Production Facility and Liquid Bulk Terminal investments, totalling USD 2 billion, which serve this very purpose. The construction of these projects, developed in collaboration with expert solution partners from 12 countries, are ongoing. Once operational, these investments will directly contribute USD 300 million annually to reducing Türkiye's current account deficit."

Attracting Foreign Investment Through Strong Partnerships

Dr. Ilıcak also reflected on the importance of international collaborations: "Perhaps the most challenging project we undertook with the EBRD was Türkiye's transformation in healthcare. The EBRD shared its expertise from around the world. As a result, Türkiye was able to attract USD 15 billion in financing from abroad and carry out its healthcare transformation. We also worked with the IFC for many years on project financing. In difficult conditions, IFC has always stood by our side. We have formed company partnerships with them. Most recently, we have been developing a PPP hospital in Kazakhstan together. In every project we have undertaken, the first question they asked was, 'What will be the social impact of this?' Profitability was always the last topic. Those are the reasons why I am grateful to both banks."

He concluded: "Our relations with Central Asian countries, in particular, have developed substantially. Then, our ties with African countries began to strengthen. Today, Türkiye has become a hub that serves a population ten times its own, meeting needs such as healthcare and education. We closely follow these developments and ensure that growing diplomatic relations are also reflected in trade. We are working to support the progress of Türkiye's industrialisation initiative. We secure financing from abroad to carry out our projects wherever possible instead of using our country's limited resources."

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

2 Billion USD Polypropylene (PP) Production Plant and Terminal Investment to Contribute $300 Million Annually to Türkiye's Trade Balance

2 Billion USD Polypropylene (PP) Production Plant and Terminal Investment to Contribute $300 Million Annually to Türkiye's Trade Balance

2 Billion USD Polypropylene (PP) Production Plant and Terminal Investment to Contribute $300 Million Annually to Türkiye's Trade Balance

2 Billion USD Polypropylene (PP) Production Plant and Terminal Investment to Contribute $300 Million Annually to Türkiye's Trade Balance

The launch coincided with ChangAn's 28.59 millionth vehicle rolling off the assembly line, marking a key milestone in its international expansion.

RAYONG, Thailand, May 16, 2025 /PRNewswire/ -- ChangAn Automobile ("ChangAn" or "the Company"), an intelligent low-carbon mobility technology company, officially opened its first international new energy vehicle (NEV) manufacturing base in Rayong, Thailand, integrating sustainable, low-carbon, flexible manufacturing, and intelligent digital systems that focus on efficiency, cost, and quality. The launch marks a key milestone for ChangAn in its international manufacturing structure and injects advanced intelligent manufacturing power into Thailand's automotive industry.

The opening of ChangAn's Rayong Factory marks a new phase of its Vast Ocean Plan, shifting from product exports to industrial globalisation. It showcases the Company's potential in global expansion across products, smart manufacturing, branding, and green, digital innovation.

As a key production hub, the plant features five intelligent workshops — including welding, painting, general and engine assembly, and battery — with 90% automation at key quality control stations, among the highest in Thailand's auto industry. The factory incorporates energy-saving and eco-friendly features aligned with green development goals. A 14MW photovoltaic system will provide 45% of the plant's electricity. Recirculating air towers, louvers, natural lighting, and rainwater recycling will cut energy use for lighting and ventilation, improve water efficiency, and lower energy costs by an estimated 5%.

ChangAn has implemented an innovative and flexible production system to lower manufacturing costs and efficiently build high-value vehicles. The welding workshop features 39 robots and advanced material-joining methods, including FDS, EPS, and SPR, delivering strength beyond traditional connection techniques. The painting workshop uses 29 robots and advanced spraying to extend paint life to 15 years and reduce emissions by 40%, while the assembly line features 140 stations, including 18 fully and 125 semi-automated units. Technologies such as automated seal adjustment and AGV vehicles allow for multi-model and multi-power production. The power workshop supports engine and battery production, including ultra-precise engine tile-matching and visual guidance across 22 battery processes. Forty-five AGVs create a flexible, responsive manufacturing and transport system.

As a digital-first factory, ChangAn employs a full-stack digital ecosystem with a microservice architecture for 100% online operations. The entire manufacturing process is scheduled in real time, improving supply chain coordination and reducing the order delivery cycle from 21 days to 15 days. The ChangAn Quality Operating System (CAQOS) ensures comprehensive quality management across supplier parts, vehicle production, and market services. During production, 77 surveillance cameras and 62 foolproof checkpoints are used, creating 71 quality containment processes to ensure end-to-end quality across parts, production, and market services.

Looking forward, ChangAn aims to localise 80% of production at its Rayong Factory, create 30,000 jobs, and support low-carbon growth and talent development for Thailand's green transition. Positioned as a hub for Southeast Asia, Australia and New Zealand, ChangAn plans to exceed 5 million global and 3 million new energy vehicle sales by 2030. Over the next three years, it will launch 12 new energy models and expand AI features. A new Rayong parts centre will support right-hand drive markets with 24-hour delivery.

"After 556 days of dedication from over 2,000 employees and partners around the world, we have built a factory that is efficient, modern, and smart," said Shen Xinghua, Managing Director of ChangAn Automobile Southeast Asia Business Unit. "We are here for the long run. Together, we will help shape a cleaner, smarter, and stronger automotive future — In Thailand, For Thailand, and For the world."

** The press release content is from PR Newswire. Bastille Post is not involved in its creation. **

ChangAn Launches Rayong Factory, Focusing on Sustainable Manufacturing, Efficiency, Cost, and Quality

ChangAn Launches Rayong Factory, Focusing on Sustainable Manufacturing, Efficiency, Cost, and Quality

ChangAn Launches Rayong Factory, Focusing on Sustainable Manufacturing, Efficiency, Cost, and Quality

ChangAn Launches Rayong Factory, Focusing on Sustainable Manufacturing, Efficiency, Cost, and Quality

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