Find out how our Consulting team can help you and your organisation
The Challenge
Polypropylene (PP) is a critical material used across industries such as automotive, packaging, textiles, electronics, and healthcare. Valued for its durability, fatigue resistance, and versatility, it is one of the most widely used polymers globally. Despite this, Türkiye remains heavily dependent on polypropylene imports, contributing to a growing trade deficit and exposure to supply chain risks.
To address this, Ceyhan Polipropilen Üretim A.Ş., a joint venture between Rönesans Holding and Sonatrach Petroleum Investment Corporation B.V., is developing a $2 Billion state-of-the-art propylene plant and terminal investment in Ceyhan. With an annual nameplate capacity of 472,500 tonnes, the plant marks a major step toward import substitution in one of the world’s largest PP-importing nations.
The facility will also support Türkiye’s energy transition by using 100% renewable electricity and internally generated hydrogen, reducing emissions by up to 72% compared to conventional methods.
Despite its strategic value, the project faced several key challenges:
- > USD 1bn Financing Requirement: Demanded a carefully structured, commercially viable financing model.
- Complex Sustainability Integration: Incorporating renewable energy and hydrogen-based fuel raised technical and ESG requirements.
- Cross-Border Complexity: Involved multi-jurisdictional coordination and risk alignment among international stakeholders.
A tailored, consultative approach was essential to address these challenges and support the project’s successful financial close.
Our Role and Approach
Wood Mackenzie acted as Lenders’ Market Advisor (LMA) for the financing of the Project, providing independent, data-driven analysis of global and regional market dynamics, supply-demand fundamentals, and price forecasts relevant to the project's feedstock and product slate.
Our approach included a rigorous assessment of the project's competitiveness, feedstock positioning, and long-term marketability, as well as stress testing key commercial assumptions. We worked closely with lenders and sponsors to ensure market risks were transparently evaluated and aligned with financial structuring requirements, supporting bankability and informed decision-making throughout the financing process.
Wood Mackenzie played a key role in evaluating the commercial viability of the project, providing critical support throughout the financing process. Many thanks to Patrick Campbell and the team at Wood Mackenzie for their valuable contribution to this achievement.
Nergiz Karakurt, Petrochemical Products Sales & Marketing Director, Rönesans Holding
The Result
A total of $1.3 billion in financing has been secured, led by the U.S. International Development Finance Corporation (DFC) for the polypropylene production plant, with additional support from Spain’s Export Credit Agency (Cesce) for both the polypropylene plant and the associated terminal.