TOCHU Corporation (headquartered in Minato-ku, Tokyo; Masahiro Okafuji, President & CEO; hereinafter “ITOCHU”) announced today that a consortium (hereinafter “international consortium”), consisting of ITOCHU, Técnicas Reunidas, S.A (Spain), Saipem S.p.A. (Italy) and GS Engineering & Construction Corporation (South Korea), has received an order to construct an oil refinery from STAR Rafineri A.Ş in Turkey. and signed an EPC contract in Istanbul on May 20.
This project will construct a new oil refinery with 10 million tons of yearly refining capacity in the city of Aliaga located in the southwestern area of Turkey. The value of the order received by the international consortium is around US $4.0 billion (around JPY 400.0 billion), and the project is slated for completion in the second half of 2017. ITOCHU, as part of the international consortium, will procure equipment from Japan as well as arrange the financing accordingly.
Demand for petroleum products in Turkey is showing rapid growth on the back of an increase in population as well as economic development. As such, the volume of imports of petroleum products is showing a significant increase. The realization of this project is anticipated to lower Turkey’s dependence on imports of petroleum products and contribute to the Turkish economy through the creation of employment on the planned construction site as well as the development of peripheral industries.
ITOCHU has positioned Turkey as an important market since it opened its office in Ankara in 1963 and in Istanbul in 1981, and is working on activities that include the construction of the İzmit Bay Crossing Bridge, a construction project for a coal-fired power plant and sales of automobiles. The Company will continue to be proactive in its sales activities in Turkey, where further economic development is anticipated.