UPDATE - Algerian, Turkish energy firms agree on $1B investment

UPDATES WITH MORE REMARKS FROM ERDOGAN; OTHER EDITS THROUGHOUT

By Ozcan Yildirim, Enes Duran, and Sinan Uslu

ANKARA (AA) - A state-owned Algerian energy firm and two Turkish energy companies have agreed to make a $1 billion investment in the petrochemical sector, President Recep Tayyip Erdogan said Tuesday.

Erdogan made the announcement in Algeria where he attended a Turkey-Algeria Business Forum as part of an official visit.

The investment by Algeria’s SONATRACH and Turkish firms Ronesans and Bayegan will be made in the Yumurtalik Free Zone, located in Turkey's Mediterranean province of Adana.

Erdogan said the plant at the economic zone would produce 450,000 tons of polypropylene a year, with raw material provided by Algeria.

Polypropylene is a thermoplastic polymer used in various sectors such as spare automotive parts as well as textile and food packaging.

The new plant will help Turkey improve its current account deficit, said Erdogan.

"I believe we should rapidly advance our cooperation with Algeria in energy. We should develop joint projects," the president said.

Erdogan added that Algeria and Turkey remain determined to give necessary support to the business community to invest in the energy sector.

The president’s visit to Algeria -- the first stop in a four-nation African tour -- is the second Turkish presidential trip to the country. After Algeria, Erdogan will head to Mauritania on Feb. 28, followed by Senegal and Mali.

Since 2004, Erdogan has paid official visits to 24 African countries and witnessed the signing of numerous bilateral pacts.

- Boosting bilateral trade

Though Algeria is Turkey’s biggest trade partner in Africa, said Erdogan, the trade volume falls short of its potential.

"The trade volume of $3.5 billion is too low for two countries with such a great potential. Hopefully, we can collaboratively bring it to $5 billion to begin with, then to $10 billion, and afterwards even higher, there’s no reason we can’t do this," Erdogan said.

Erdogan underlined that Turkish companies generate more jobs in Algeria than any other foreign firms.

Erdogan urged Turkish businesses to utilize opportunities in various sectors in Algeria such as agriculture, food, tourism, and energy which are priorities for the country to diversify its economy.

Stating that seven cooperation agreements were signed between Turkey and Algeria on Monday, Erdogan said these will be important for diversifying and promoting various business sectors.

Turkey is open to any collaboration with Algeria, Erdogan said.

He said cooperation between the countries especially in the energy field should be advanced rapidly, so joint projects should be developed.

"Both counties' governments are determined to give necessary support to our businesspeople who invest in energy," said Erdogan.