‘Petkim Shouldn’t be Sold For Less Than $900 Million’

Emphasizing that he was not against the privatization of Petkim, Erk explained that Petkim’s market value is $1 billion. Members of the Association of Sectors Foundation, consisting of 41 sector associations, announced financial results yesterday at a meeting hosted by the Mechanics Manufacturers Union. During his speech at the meeting, Erk exmphasized Petkim’s strategic product line. Erk also stated that no progress had been achieved since Petkim entered the privatization process. Pointing out that it was wrong not to make investments in Petkim’s manufacturing capabilities, Erk reported that the company’s ability to fulfill Turkey’s petrochemical needs had declined from 42 to 32 percent.

Erk stated that Petkim should, to a great extent, be privatized through the influx of foreign capital or through joint ventures that included foreign capital, thus allowing Petkim to continue to provide basic crude oil products to the industry. Erk, pointing out that Petkim was in need of a $2 billion investment for expansion and modernization as soon as possible, said that due to the State Economic Enterprises (KIT)’s lack of financial resources, it was hard for local companies to accomplish such an investment. Erk said that the $605 million offer for Petkim was inappropriate and that Petkim’s privatization process should be postponed.

Idriz Cokal / Istanbul / TURKEY