4th QUARTER 2019 SOCAR Polymer Newsletter / Issue 27 / 2019 1 Mission brought to completion Dear colleagues, 70th anniversary of the city celebrated with a festive parade of uniformed SOCAR Polymer employees duly representing We are leaving behind the year 2019 which holds record our company as a new proud resident of the Sumgayit city. of many remarkable events for SOCAR Polymer, the brightest of which is the launch of the HDPE plant by Irrefutably one of the most successful of our educational Azerbaijan Republic’s President Ilham Aliyev who once projects, the Summer Internship Program once again gave again emphasized SOCAR Polymer plants’ significant bright youths an opportunity to dedicate 8 weeks of their role in Azerbaijan’s social and economic wellbeing, thus, graduate year or career path to gaining experience directly reaffirming our being on the right track and inspiring us to from professionals in a real production facility setting. A reach for further achievements. total of 29 interns – a record number so far – have benefitted from this opportunity to improve their knowledge and skills This year has seen plenty of productive collaboration and in different plant sections and company departments. 21 tasks fulfilled jointly with all our stakeholders, partners, of them subsequently received a job offer to make best contractors, consultants and team members. We have use of their qualifications and contribute to our company’s remained true to the 4-years-old tradition of participating in sustainable development. annual international exhibitions, and this year our company has aptly exhibited its products to potential customers at the It has been a fruitful year and I would like to thank you all for 26th International Caspian Oil & Gas Exhibition and broadly your commitment to this year’s goals of the SOCAR Polymer declared its “zero harm” environmental policy at the 10th company. My best hopes call upon the upcoming year to Anniversary Azerbaijan International Ecology exhibitions. We bring plenty of success and achievements to the company readily joined the “Make Azerbaijan greener” project held as a whole and to each of you personally! at the initiative of Azerbaijan Republic’s first vice-president Mehriban Aliyeva and in its framework our employees Happy New Year! planted 1500 trees in support of our republic’s clean environment policy. Furthermore, in November, we shared Farid Jafarov several thousand Sumgayit residents’ pride and joy at the General Manager 2 3 HDPE plant launched by president Ilham Aliyev Diplomatic corps representatives at SP plant Monthly awardrisk recognition instituted for HSE 4 Bringing Novruz joy to poor families SP contributed to Students’ 1st Scientific Conference at BHOS HDPE export initiated to Turkey and Russia SP mentioned in the context of Azerbaijan-Russia cooperation Caspian region’s and Central Asia’s business representatives at SP plant 5 SP at the annual Caspian Oil & Gas Exhibition SP at SOCAR’s IV International Forum SP at Baku Marathon 2019 SP employees support BHOS students 14. Summer interns make the most of the given opportunities SP employee shares experience with ASOIU students 6 SP mentioned in the context of Serial production of a PP grade the non-oil sector’s development for fiber/carpet manufacturing launched LyondellBasell’s new 5th-generation polymerization catalyst applied in PP production Serial production of a PP grade for fiber/ carpet manufacturing launched Serial production of a PP grade for BOPP Blown Film Extruder training held for film production launched laboratory staff 7 Interns visit a buyer company, El-Plastic Ltd Interns’ starring hour with presentations ‘Green Energy Management’ Summer School members at SP plant Wood scrap donation initiative US Embassy delegation at SP plant approved 8 Contribution to the Eid al-Adha celebration for the elderly Charity contribution to the blood bank Certificates to SP employees for contribution and achievements SP representatives at K 2019 Dusseldorf exhibition Corporate celebration of reached milestones 9 SP in Sumgayit’s 70th anniversary parade SP at Tecnimont Seenergy Meeting SP at an annual Ecology Exhibition Family Day festivities A gift of 1500 trees to nature Contributioncharity to the event Red Crescent 10 Plant employees marching in honor of Sumgayit’s 70th anniversary Family Day festivities n November 19, SOCAR Polymer participated in the Ofestive celebrations organized by the Sumgayit city Executive Authorities on the occasion of the 70th anniversary of Sumgayit’s receiving the status of a city. Pursuant to President Ilham Aliyev’s decree on “Celebration of Sumgayit city’s 70th Anniversary” as of 14 February 2019, the Executive Authorities organized city-wide celebrations and a festive parade in front of the municipality office building to mark the 70th anniversary of the Sumgayit city. SOCAR Polymer was represented in The event was attended by the parliament members, representatives the event by hundred plant employees Head of the Sumgayit city Executive of foreign embassies, and thousands in uniforms who marched in the Authority Zakir Farajov, the Head of Sumgayit residents. parade line with banners, flags and of the State Border Service colonel The industrial enterprises, companies flowers. general Elchin Guliyev, other officials, and organizations, too, did not stay 11 aloof from the event and were well represented by their teams. It is worth mentioning that Sumgayit received the status of a city by decision of the Azerbaijan SSR’s Higher Council Presidium on 22 November 1949. The past 70 years have seen rapid development of Sumgayit which turned into a famous industrial hub. The implementation of such infrastructural projects as the Sumgayit Technology Park and the Sumgayit Chemical Industrial Park has boosted the city’s role as an industrial hub. 12 SOCAR Polymer General Manager delivered a keynote speech at ‘Seenergy-2019’ event n 18 November 2019, our General Manager, Farid OJafarov attended the Maire Tecnimont company’s important annual “Seenergy” event as a keynote speaker. The event at its third edition dedicated to Supply Chain issues was a chance for Maire Tecnimont and its key partners to meet and build a new way to compete in the market, leveraging on synergies and creating value through industrial cooperation. It involved over 100 top managers from Italian and foreign multinationals, representing more than €900 billion of revenues and a workforce of almost 4 million people from all over the world. In previous years, guest speakers were Mr. Luca Cordero di Montezemolo, former Chairman of Fiat Group, Ferrari, 13 Maserati and Alitalia, and Mr. Andrea Guerra former CEO Maire Tecnimont, F.Jafarov mentioned the Methanol Project of Luxottica. and the Antipinsky Refinery in Russia, the SOCAR GPC Project in Azerbaijan, and Expansion of the STAR Refinery in Turkey. In his speech, F.Jafarov touched upon the long history of In conclusion, he underlined Azerbaijan’s role as a regional Italian-Azerbaijan relations, gave brief yet broad information hub, and its advantages including effective time-saving about SOCAR as a fully integrated oil and gas company, routes, multilingual population, favourable investment and and listed the projects implemented with Tecnimont, legal environment, major privileges for taxes and customs, including Baku Oil Refinery’s Modernization. Further on, he low transportation costs, availability of industrial parks, and underscored the strategic role played by SOCAR and SOCAR transport corridors passing Azerbaijan. Polymer in the economic growth of Azerbaijan, the SOCAR- related companies’ expectations of an EPC contractor, and Maire Tecnimont’s advantages as a skillful and reliable EPC partner in the light of its cooperation with SOCAR Polymer within the framework of the SOCAR Polymer Project in Sumgayit. The General Manager also touched upon the expectations of a primary EPC contractor to play a pivotal role in the engagement of the Supply Chain considering a plant’s long-term lifecycle, and making the right long-term equipment choice, as well as to lead a partnership with key vendors at the lowest capital/operational/service costs, at the best quality, at the shortest plant delivery time, with availability of replacement parts, maintenance facilities, and readiness of an equipment supplier to enter into service contracts. “With MET we saw an opportunity to develop a relationship of trust to establish a win-win strategy. Mixing our know-how in construction of plants could increase the number of projects and our expectations”, - F.Jafarov said. Among the potential projects for future cooperation with 14 Exploring the world of plastics at K-2019 hree SOCAR Polymer repre- sentatives visited the K-2019 TDusseldorf exhibition held in Germany on 16-23 October and known as “The World’s No. 1 Trade Fair for Plastics and Rubber”, the per- formance barometer for the entire industry and its global marketplace for innovations. Over 3000 compa- nies from more than 60 countries are represented in the fully booked fair to demonstrate the industry’s capabilities, discuss current trends and set the course for the future. The exposition occupied the entire Düsseldorf exhibition grounds with some 175,000 m² of net exhibition space, and more than 200,000 trade visitors from all over the world at- tended the event, 71% coming from abroad. SOCAR Polymer’s Deputy Operations Manager Alexander Lazarev, Lead Process Engineer Orkhan Hasanov, Technology Manager Vadim Gaifiyev, and Production and Sales Analyst Javad Aghayev have shared the outcomes of their visit, their impression of the event, and considerations on the topic. 15 Vadim Gaifiyev synchronization, meetings, discussions, networking, or Technology Manager exhibiting as well. We have plenty of time to plan out our next visit by autumn of 2022, and depending on the format of - The purpose of our trip was our participation, we will come up with ways to enhance the to participate in the event as benefits to be gained from the event. visitors. I aimed at meeting Speaking of this year, I have achieved the results I was counteragents, finding alternative aiming at.