ALGIERS, Algeria

The CEO of Algeria's state-run Sonatrach Hydrocarbons, Toufik Hakkar, said the Turkish leadership attaches great importance to the petrochemical plant being developed by the Algerian company in the Turkish city of Ceyhan in southern Turkey.

"The importance of this project lies in the fact that it is located in one of the largest areas consuming this material (polypropylene), and it is the first petrochemical project in Turkey," Hakkar told the state television in an interview.

Hakkar said the project is accorded importance by Ankara, citing President Recep Tayyip Erdogan's presence during the signing ceremony of the project.

On Oct. 9, Sonatrach announced the signing of three contracts to develop a petrochemical plant in Ceyhan city.

The project's total investment is estimated at around $1.7billion, according to the CEO.

Seventy percent of the cost is expected to be funded by international banks, while the remaining 30 percent will be provided by Sonatrach and its Turkish partner, Renaissance Holding.

The project aims to produce polypropylene used in several industries, including cars and textiles.

In December 2019, Algeria adopted a new hydrocarbons law which, according to officials, included incentives for foreign companies such as tax and customs exemptions, especially during research and exploration.

*Writing by Ibrahim Mukhtar in Ankara