Algeria's state-owned energy company SONATRACH and Turkey's Ronesans and Bayegan energy firms have agreed on $1 billion investment in the petrochemical sector, President Recep Tayyip Erdoğan said Tuesday.
Erdoğan made the announcement in Algeria where he attended a Turkey-Algeria Business Forum.
The investment will be made in the Adana Yumurtalik Free Zone, located in Turkey's Mediterranean province of Adana.
Erdoğan said the plant at the economic zone would produce 450,000 tons of polypropylene per year; raw material will be provided by Algeria.
Polypropylene is a thermoplastic polymer, which is used in various sectors such as spare parts used in the automotive industry, packaging of textile and food.
Once the plant becomes operational, Turkey will surpass issues in its current account deficit and external dependence will also be reduced by 25 percent, he added.
"I believe we should advance our cooperation with Algeria in the energy field rapidly. We should develop joint projects," the president said.
Erdoğan added 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 presidential trip to the country. After Algeria, Erdoğan will head to Mauritania on Feb. 28, followed by Senegal and Mali.
Since 2004, Erdoğan has paid official visits to 24 African countries and witnessed the signing of numerous bilateral pacts.
