Türkiye Approves $25 Billion SASA Industrial Zone to Reshape Petrochemical Sector

A major step has been taken in Türkiye’s industrial transformation. In a decree published in the Official Gazette at 00:18 on Saturday, President Recep Tayyip Erdoğan officially designated an area in Adana’s Yumurtalık district as the “SASA Polyester Special Industrial Zone.”

The decision, enacted under Article 4/Ç of the Industrial Zones Law No. 4737, clears the way for a massive petrochemical and textile-oriented investment by Erdemoğlu Holding, the parent company of SASA Polyester Sanayi A.Ş.

“The Environment Is Ready for Investment”

Speaking after the decree’s publication, Erdemoğlu Holding Chairman İbrahim Erdemoğlu confirmed that the long-awaited decision finally enables the start of the project. “For now, no additional step is needed. The details will be handled with the Ministry of Industry and Technology,” he said.
This milestone officially launches an investment journey that began in 2017, when SASA announced plans to produce raw petrochemical materials domestically—a project expected to transform Türkiye’s position in global polyester production.

From 2017 Vision to 2025 Reality

The story traces back to June 2017, when President Erdoğan referenced an unnamed investor at an iftar dinner at Huber Mansion. He mentioned a businessman preparing a $3.5 billion factory investment and promising to have Erdoğan inaugurate it. The investor turned out to be İbrahim Erdemoğlu, who later confirmed plans to build a $3.6 billion raw-material production facility on land in Hatay’s Dörtyol district.
Negotiations with the Ministry of Economy and the Ministry of Energy over land owned by TPAO initially delayed the process. Later, SASA identified a new opportunity when a pipeline allocation in Yumurtalık, previously granted to Çalık Holding, expired. Erdemoğlu swiftly applied for that land—setting the stage for Türkiye’s largest private industrial investment.

Expanding the Scale: Land, Capital, and Vision

Erdemoğlu explained that the project grew substantially over time. “We first applied for 11 million square meters. We acquired 4.5 million m² from the Treasury through an auction and 2.5 million m² from private owners. So far, we’ve spent ₺4 billion on land alone.”
With 6.5 million m² secured and all ministry approvals obtained—including the Ministry of Agriculture’s final clearance—SASA can now proceed with groundwork. The first phase will break ground in 2026 with an initial investment of $5.5 billion, fully funded by SASA.

A $25 Billion Industrial Ecosystem

According to Erdemoğlu, the project will unfold in three-year phases, ultimately totaling $25 billion. The plan includes facilities for producing paraxylene, propane, ethylene, and eventually refinery and port operations—covering the full chain from raw hydrocarbons to finished textile fibers.
Once operational, SASA’s Yumurtalık complex will replace Türkiye’s $22 billion annual petrochemical imports, significantly reducing dependency on foreign raw materials.

Foreign Interest and Global Partnerships

Erdemoğlu has already attracted global attention. “We will establish five companies, all 100% owned by SASA, for this project,” he said. “However, we are open to offering 49% shares in these subsidiaries to international investors.”
He confirmed that four major foreign companies have already initiated discussions. In recent interviews, Erdemoğlu revealed that two leading global energy producers and a sovereign wealth fund from a major oil-and-gas-producing nation have expressed serious interest in joint ventures covering both capital partnerships and supply-chain cooperation.

Strategic Leap for Türkiye’s Industrial Future

The Special Industrial Zone status provides SASA with regulatory advantages, tax incentives, and infrastructure support—accelerating the start of construction and positioning the project as a cornerstone of Türkiye’s petrochemical independence strategy.