Before Starting the 25 Billion dollars worth Investment in Yumurtalık, They Requested a New 10 Million Square Meter Area
İbrahim Erdemoğlu said, "The main topic of this tour is Merinos," and then mostly handed the floor to Mehmet Erdemoğlu, Chairman of the Board of Merinos Halı. Towards the end of the conversation, he stood up and turned to Güler Eruğur, Corporate Communications Manager of Erdemoğlu Holding, and Mehmet Ali Ergün, who provides external communication consultancy services:
- If our conversation about Merinos is over, now we can talk about Sasa and the investment in Yumurtalık.
As İbrahim Erdemoğlu went to the world map hanging on the wall, Prof. İbrahim Turhan, former chairman of the Istanbul Stock Exchange, and former deputy governor of the Central Bank, and a member of the Board of Directors of Sasa spoke:
"Sasa experienced a period that could be described as a "perfect storm." The Ukraine-Russia War, the February 6, 2023 earthquakes, macroeconomic instability, some setbacks causing delays in investment plans, and unfair competition from China…"
Upon Professor İbrahim Turhan's mention of "unfair competition from China," I recalled İbrahim Erdemoğlu's message during our conversation at Sasa's Adana facilities in December 2024:
- "Since 2015, our investment in Sasa in Adana has reached 4 billion dollars. With these investments, another Sasa, at a level of 75%, has been added. Excluding India and China, we are becoming the world's largest polyester producer." Professor İbrahim Turhan continued:
- "Sasa's 'net financial leverage ratio' (showing the debt burden and financial risk level) had risen to 33 times. Last year, we reduced it to 16 times. We issued convertible bonds, and they were converted into shares," he said, adding that the leverage ratio has fallen below 9 times. It will drop to 4 by the end of this year. Regarding the "convertible bonds," he provided the following information:
- We issued 415 million euro worth of "convertible bonds" with a 5-year maturity. We received three times the demand. The interest rate was 4.75%. When asked about the "ideal level for the net financial leverage ratio," he replied:
- The ideal level is below 4 times.
İbrahim Erdemoğlu reminded us of the investment plans in Yumurtalık, totaling 25 billion dollars:
- We need to get Sasa ready for the investments we have planned in Yumurtalık. Therefore, the leverage level needs to be much lower by 2027. Pointing out that Türkiye imported 23 billion dollars worth of petrochemical products in 2025, he then moved on to discussing the issue using a map:
- If America aims to confine China to the Asian region in the long term, it needs an alternative production base in our geography to achieve this. Türkiye, Iraq, and to a lesser extent Egypt stand out in this region. He underlined the following point:
- If you don't have some of the products that China produces today manufactured in this geography, you cannot create an alternative. This idea is at the heart of the master plan we created 8 years ago. The idea of a 25 billion dollars worth investment in Yumurtalık is also based on this. Emphasizing that Türkiye is the strongest alternative, he asked the following question:
- So, will Türkiye be the only one producing?
He answered his own question as follows:
- No… According to our prediction, Türkiye will assume a leading, central, or "big brother" role in the region. It will be surrounded by Syria, Iraq, Jordan, and Egypt. Türkiye will be the central country in the production and supply system of this geography.
He then emphasized the importance of Yumurtalık for this investment:
- Yumurtalık is practically at the center of this geography. Another factor strengthening this is the presence of oil and gas resources in the Eastern Mediterranean. The importance of the Ceyhan-Yumurtalık region and Türkiye may increase steadily. İbrahim Erdemoğlu then discussed another project in Yumurtalık:
- Behind our land in Yumurtalık, a 33 million square meter chemical industry area has been allocated. A Special Chemical Specialization Industrial Zone. We have already requested 10 million square meters of land from that area.
Sasa prepared its project and waited a long time for the tender for the land in Yumurtalık. After acquiring the land, the declaration of the "Special Industrial Zone" also took time.
When we spoke with Erdemoğlu in Adana in December 2024, there was intense foreign interest, primarily from Saudi Arabia, in partnering with Sasa for its investment in Yumurtalık. Sasa is now trying to reduce its debt and revive foreign interest in order to begin the first phase of its 5.5 billion dollars investment in Yumurtalık…
When we spoke in December 2024, Erdemoğlu's goal was to lay the first foundation stone in 2026… Economic conditions have shown that it is necessary to wait for the completion of partnerships and financial solutions for the project…
This is actually a national project
İbrahim Erdemoğlu, Chairman of the Board of Directors of ERDEMOĞLU Holding, gave the following message regarding the petrochemical and refinery investments in Yumurtalık, which will have a total value of 25 billion dollars:
- This is actually not just Sasa's project, not just a company's project, but a national project. The government also views the project that way. The Ministry of Industry and Technology's declaration of it as a "Special Industrial Zone" and the strengthening of the incentive mechanism by the Ministry of Treasury and Finance reinforce this view. He recalled that they had made an agreement with Vitol last year:
- Besides that, there are other organizations that want to work with us on our project in Yumurtalık. There was interest from Qatar before. Saudi Arabia and Aramco were also interested. Naturally, developments in the Gulf affected these processes. Erdemoğlu had previously described the stages of the investments in Yumurtalık in our meetings, including those in December 2024, as follows:
• The first investment will be 5.5 billion dollars. These investments, 100% owned by Sasa, will continue step by step with paraxylene, propane, and ethylene production, then a refinery and a port.
• After seeing the results of the first investment, we will start a 10 billion dollars investment. Our investments in Yumurtalık will continue in 3-year intervals. The total will reach 25 billion dollars.
• We will have gone from crude oil-based raw materials and intermediate products to the final product, yarn.
He also calculated the import substitution estimate as follows:
- When our investments in Yumurtalık become operational, we will have the chance to substitute our country's 22 billion dollars worth of imports in this area.
He also shared his plans regarding partnering in the Yumurtalık project as follows:
- We will establish 5 companies, 100% owned by Sasa, for the investment in Yumurtalık. We are open to offers to give 49% of the shares in the companies to be established to foreigners, not Sasa itself. The required production could reach 80 billion dollars.
İbrahim Erdemoğlu, Chairman of the Board of Directors of ERDEMOĞLU Holding, pointed out the following regarding the "Chemical Specialization Industrial Zone" planned to be established in Yumurtalık:
- The Ministry of Industry and Technology has been working on the 33 million square meter area for 5 years. The aim is to establish an organized industrial zone structure, attract investors, and relocate some industrial establishments in the Marmara Region to Yumurtalık. He noted that there haven't been enough advantages or attractions to draw investors to Yumurtalık until now:
- The situation will change after Sasa establishes a petrochemical plant and refinery in Yumurtalık. Because the raw materials needed by chemical companies will be produced right next to them. We believe that chemical companies will turn to the region over time. He drew attention to the impact that these investments will create:
- What will happen in the end? Türkiye will become one of the largest production bases in the region and an important chemical center in a wide geographical area encompassing Europe. He reminded that Türkiye's petrochemical product imports are at the level of 23 billion dollars:
- If the "Chemical Specialized Industrial Zone" planned to be established in Yumurtalık reaches its targeted capacity and production begins, the volume of petrochemical products needed could reach 70-80 billion dollars.
News Source: NB Ekonomi
- If our conversation about Merinos is over, now we can talk about Sasa and the investment in Yumurtalık.
As İbrahim Erdemoğlu went to the world map hanging on the wall, Prof. İbrahim Turhan, former chairman of the Istanbul Stock Exchange, and former deputy governor of the Central Bank, and a member of the Board of Directors of Sasa spoke:
"Sasa experienced a period that could be described as a "perfect storm." The Ukraine-Russia War, the February 6, 2023 earthquakes, macroeconomic instability, some setbacks causing delays in investment plans, and unfair competition from China…"
Upon Professor İbrahim Turhan's mention of "unfair competition from China," I recalled İbrahim Erdemoğlu's message during our conversation at Sasa's Adana facilities in December 2024:
- "Since 2015, our investment in Sasa in Adana has reached 4 billion dollars. With these investments, another Sasa, at a level of 75%, has been added. Excluding India and China, we are becoming the world's largest polyester producer." Professor İbrahim Turhan continued:
- "Sasa's 'net financial leverage ratio' (showing the debt burden and financial risk level) had risen to 33 times. Last year, we reduced it to 16 times. We issued convertible bonds, and they were converted into shares," he said, adding that the leverage ratio has fallen below 9 times. It will drop to 4 by the end of this year. Regarding the "convertible bonds," he provided the following information:
- We issued 415 million euro worth of "convertible bonds" with a 5-year maturity. We received three times the demand. The interest rate was 4.75%. When asked about the "ideal level for the net financial leverage ratio," he replied:
- The ideal level is below 4 times.
İbrahim Erdemoğlu reminded us of the investment plans in Yumurtalık, totaling 25 billion dollars:
- We need to get Sasa ready for the investments we have planned in Yumurtalık. Therefore, the leverage level needs to be much lower by 2027. Pointing out that Türkiye imported 23 billion dollars worth of petrochemical products in 2025, he then moved on to discussing the issue using a map:
- If America aims to confine China to the Asian region in the long term, it needs an alternative production base in our geography to achieve this. Türkiye, Iraq, and to a lesser extent Egypt stand out in this region. He underlined the following point:
- If you don't have some of the products that China produces today manufactured in this geography, you cannot create an alternative. This idea is at the heart of the master plan we created 8 years ago. The idea of a 25 billion dollars worth investment in Yumurtalık is also based on this. Emphasizing that Türkiye is the strongest alternative, he asked the following question:
- So, will Türkiye be the only one producing?
He answered his own question as follows:
- No… According to our prediction, Türkiye will assume a leading, central, or "big brother" role in the region. It will be surrounded by Syria, Iraq, Jordan, and Egypt. Türkiye will be the central country in the production and supply system of this geography.
He then emphasized the importance of Yumurtalık for this investment:
- Yumurtalık is practically at the center of this geography. Another factor strengthening this is the presence of oil and gas resources in the Eastern Mediterranean. The importance of the Ceyhan-Yumurtalık region and Türkiye may increase steadily. İbrahim Erdemoğlu then discussed another project in Yumurtalık:
- Behind our land in Yumurtalık, a 33 million square meter chemical industry area has been allocated. A Special Chemical Specialization Industrial Zone. We have already requested 10 million square meters of land from that area.
Sasa prepared its project and waited a long time for the tender for the land in Yumurtalık. After acquiring the land, the declaration of the "Special Industrial Zone" also took time.
When we spoke with Erdemoğlu in Adana in December 2024, there was intense foreign interest, primarily from Saudi Arabia, in partnering with Sasa for its investment in Yumurtalık. Sasa is now trying to reduce its debt and revive foreign interest in order to begin the first phase of its 5.5 billion dollars investment in Yumurtalık…
When we spoke in December 2024, Erdemoğlu's goal was to lay the first foundation stone in 2026… Economic conditions have shown that it is necessary to wait for the completion of partnerships and financial solutions for the project…
This is actually a national project
İbrahim Erdemoğlu, Chairman of the Board of Directors of ERDEMOĞLU Holding, gave the following message regarding the petrochemical and refinery investments in Yumurtalık, which will have a total value of 25 billion dollars:
- This is actually not just Sasa's project, not just a company's project, but a national project. The government also views the project that way. The Ministry of Industry and Technology's declaration of it as a "Special Industrial Zone" and the strengthening of the incentive mechanism by the Ministry of Treasury and Finance reinforce this view. He recalled that they had made an agreement with Vitol last year:
- Besides that, there are other organizations that want to work with us on our project in Yumurtalık. There was interest from Qatar before. Saudi Arabia and Aramco were also interested. Naturally, developments in the Gulf affected these processes. Erdemoğlu had previously described the stages of the investments in Yumurtalık in our meetings, including those in December 2024, as follows:
• The first investment will be 5.5 billion dollars. These investments, 100% owned by Sasa, will continue step by step with paraxylene, propane, and ethylene production, then a refinery and a port.
• After seeing the results of the first investment, we will start a 10 billion dollars investment. Our investments in Yumurtalık will continue in 3-year intervals. The total will reach 25 billion dollars.
• We will have gone from crude oil-based raw materials and intermediate products to the final product, yarn.
He also calculated the import substitution estimate as follows:
- When our investments in Yumurtalık become operational, we will have the chance to substitute our country's 22 billion dollars worth of imports in this area.
He also shared his plans regarding partnering in the Yumurtalık project as follows:
- We will establish 5 companies, 100% owned by Sasa, for the investment in Yumurtalık. We are open to offers to give 49% of the shares in the companies to be established to foreigners, not Sasa itself. The required production could reach 80 billion dollars.
İbrahim Erdemoğlu, Chairman of the Board of Directors of ERDEMOĞLU Holding, pointed out the following regarding the "Chemical Specialization Industrial Zone" planned to be established in Yumurtalık:
- The Ministry of Industry and Technology has been working on the 33 million square meter area for 5 years. The aim is to establish an organized industrial zone structure, attract investors, and relocate some industrial establishments in the Marmara Region to Yumurtalık. He noted that there haven't been enough advantages or attractions to draw investors to Yumurtalık until now:
- The situation will change after Sasa establishes a petrochemical plant and refinery in Yumurtalık. Because the raw materials needed by chemical companies will be produced right next to them. We believe that chemical companies will turn to the region over time. He drew attention to the impact that these investments will create:
- What will happen in the end? Türkiye will become one of the largest production bases in the region and an important chemical center in a wide geographical area encompassing Europe. He reminded that Türkiye's petrochemical product imports are at the level of 23 billion dollars:
- If the "Chemical Specialized Industrial Zone" planned to be established in Yumurtalık reaches its targeted capacity and production begins, the volume of petrochemical products needed could reach 70-80 billion dollars.
News Source: NB Ekonomi