GS Engineering and Construction said Sunday it had bought a nearly 50 percent stake in a $1.4 billion project to construct a petrochemical plant in Turkey.
The South Korean builder has signed a shareholder agreement with Ronesans Holding of Turkey to acquire a 49 percent stake in Ceyhan Petrokimya Endustriyel Yatrim (CPEY), a subsidiary of the Turkish business group, the firm said. The signing ceremony was held in Istanbul on Sept. 26.
Kim Tae-jin (third from right), vice president of GS E&C, poses for a photo with Erman Ilicak (second from right), president of Ronesans Holding and other officials after inking a shareholder agreement in Istanbul, Turkey, on Sept. 26. (GS E&C)
By buying the stake, GS E&C will also earn profits from the operation of the completed plant as a major investor.
The value of the deal will be determined after the Turkish firm finalizes its future project plans.
Under the contract, GS E&C will participate in CPEY’s Ceyhan Propane Dehydrogenation-Polypropylene (PDH-PP) project to build a large-scale petrochemical complex in Turkey. Its role will be as a front-end engineering designer and as an EPC contractor.
The Ceyhan PDH-PP project aims to build a plant to produce 450,000 metric tons of propylene and polypropylene annually at a petrochemical complex in the Jayhan region of Adana Province, Turkey. The plant will start production in 2024.
By Kim Da-sol (firstname.lastname@example.org