Turkish firm eyes Iran petchem business
Tehran, December 10, 2013
Turkish fertiliser maker Gubre Fabrikalari may invest in more petrochemicals businesses in Iran as some international sanctions against Tehran are eased, its general manager said.
Gubretas already has an Iranian subsidiary, Razi Petrochemical, that it purchased in 2008 for $650 million.
"Easing of sanctions may bring new investments into our agenda. We've already received offers in Iran due to Razi's success. We may make a new petrochemicals investment there," Gubretas General Manager Osman Balta told Reuters.
The breakthrough deal between world powers and Iran on November 24 will halt Iran's most sensitive nuclear activity and ease sanctions by the United States and the European Union on some sectors of Iran's economy for an initial six-month period.
Gubretas' Iranian subsidiary, Razi Petrochemical Company, acquired an 87.5 per cent stake in a company called Arya for $15.5 million in 2012. The company plans to pay $2.9 million for the remaining stake.
"We are in talks to buy the remaining 12.5 percent stake in Arya, aiming to complete the process in a few months," he added.
The easing of sanctions will also help reduce production costs for Razi, Balta said, adding that it was early to say to what extent that would affect profit.
Gubretas, which produces only in Turkey and Iran, had consolidated sales of 2.2 billion lira ($1.1 billion) in 2012.-Reuters