The Heart of the Industry Beats in the Petrochemical Industry!
“Toothbrushes, grocery bags, food packaging, computers, clothes or furniture…”
Kimsan Petrokimya
Did you know that many products we use in our daily lives come from a common industry? Key word: petrochemical industry. Many petrochemical products such as plastic, rubber, rubber and fiber constitute the raw materials of countless branches of industry today. It provides input to many sectors you can think of, such as automotive, electricity, electronics, agriculture, packaging, textile, pharmaceuticals, paint, construction, detergent and cosmetics.
In a sense, we would not be wrong if we said that we live in a world dependent on petrochemicals.
So, "What are petrochemical products? What is the share of these products in our country and in the global economy? What kind of change awaits us in the future?" Now, let's take a closer look at the petrochemical industry with these questions in mind...
What are the prominent petrochemical products in the world?
Petrochemical products; It includes chemicals obtained from petroleum products or natural gas, such as ethane and naphtha, and their derivatives, polymers. It creates a wide range of products, including raw materials such as plastic, rubber, fiber and other organic intermediate goods. So much so that approximately 90% of the total raw material demand in chemical production is obtained from here. Moreover, 14% of the total primary demand for petroleum products and 8% of the demand for natural gas belongs to petrochemical products.
The most well-known material group in the industry is undoubtedly plastics. Not only are they well known, they represent by far the fastest growing product group within bulk materials. They are widely used in transportation, preservation and consumption, especially in the global food market. Plastic packaging has the largest share in global plastic demand with a share of 36%. However, the 2018 report put forward by the International Energy Agency (IEA) reveals that plastic demand has almost doubled since the early 2000s.
Another prominent material group is fertilizer. Fertilizer, which is used to increase the intake of nutrients that plants need, is vital for the efficiency and product reliability in agriculture. In addition, many other agricultural chemicals provide protection against harmful organisms. Synthetic nitrogenous fertilizers are one of the major factors in world food production today. has a say in almost half of them.
Apart from these, petrochemical products are used in almost all consumer goods around us, from medicines to electronic and medical devices, from toys to kitchen products, clothing, carpets, furniture and decorative items.
What is the situation in Turkey?
According to the latest report published by the Ministry of Industry and Technology, Turkey ranks 44th when we look at the sales of petrochemicals from production in the world. In this respect, we can say that Turkey is at a point open to development in the market. 35% of the petrochemicals imported into the country are intermediate goods such as plastic, rubber and fiber raw materials. Among these, 11% of the domestic demand for plastic and 1% of the demand for fiber are While 27% of the demand for rubber is met by domestic production, almost all of the demand for rubber is imported from abroad.
“35% of the petrochemicals imported into the country are intermediate goods such as plastic, rubber and fiber raw materials. Among these, 11% of the domestic demand for plastic and 27% of the demand for fiber are met by domestic production, while almost all of the demand for rubber "It is imported from abroad."
According to the current picture, it is critical to make investments to reduce the current account deficit in Turkey. Thus, while ensuring the supply security of domestic production, the country will be supported in establishing a strong economy that is not dependent on foreign sources. In this context, Petkim, one of our group companies, is taking firm steps towards becoming a leading force in the sector by meeting approximately 16% of Turkey's petrochemical raw material needs on its own. Operating in Izmir Aliağa, Petkim has a port as well as its advanced facilities in the region. It maintains its potential to attract foreign investors by using opportunities such as dams and power plants.
STAR Refinery, another of our group companies, produces petroleum products such as naphtha, xylene and reformate, which are important raw materials for the petrochemical industry, and diesel, jet fuel, LPG and petcoke, which constitute important items of the current account deficit. Today, approximately 25% of the need for processed petroleum products in Turkey. STAR Refinery, which meets the demand, has an important share in reducing the import dependency of the sectors fed by petrochemical products.
Where is the petrochemical industry heading?
According to the latest report published by the International Energy Agency (IEA) in 2018 on the future of petrochemicals, high-income countries use up to 10 times more fertilizer and up to 20 times more plastic per capita compared to low-income countries. This indicates that there is a significant global growth potential in the petrochemical sector. Another important sign is the difficulties in the production of alternative raw materials to the petrochemical sector. As a result, growing economies, increasing population and technological developments
Considering the current situation, it is predicted that the demand for the petrochemical sector will increase further in the future.
One of the factors supporting the development of the petrochemical industry is the increasing interest in a sustainable future. In this context, many parts of the modern energy system, including solar panels, wind turbines, batteries, thermal insulation in buildings and electric vehicle parts, are obtained from petrochemical outputs. In other words, active growth in the green energy market also feeds the petrochemical sector.
To summarize, it is difficult to imagine a world without petrochemicals. It seems that petrochemical products that give life to countless sectors will remain in our lives for a long time. However, green chemistry studies, carbon capture technologies, recycling methods, zero waste practices and increasing investments in these areas, implemented in the production of environmentally friendly chemicals, bring new alternative market opportunities to the petrochemical sector. brings.