A refinery company Bazen plans to invest $ 240-170 million in the activities of the polymer sector

A refinery company (Bazen), managed by Malachi Alper, plans to invest $ 240-170 million in the activities of the polymer sector (raw materials for the plastics industry), and especially in the field of recycled and biodegradable polymers, by 2030. Bazen estimates that the investment will generate additional cash flow (Ebitda). ) In the amount of $ 70-55 million per year, compared to the current level of $ 250 million in January-September 2021.

The polymer sector is concentrated in the subsidiary Carmel Olefins (CAO), and the polypropylene market, currently estimated at 80 million tons, is expected to grow by 80% by 2040. The polyethylene market, currently estimated at 25 million tons, is expected to grow by 50% Until 2040.
Carmel Olefins will invest in three growth engines: strengthening its position in the polymer market in Israel, growth in the field of plastics recycling and innovation in the field of biopolymers, ie biodegradable polymers of plant origin. Kaul, which currently holds 70% of the polypropylene market in Israel Plans to increase its market share by increasing the range of products the company provides to its customers - 300 plastics plants in Israel - and developing specific solutions to customer needs by developing additional products and improving the efficiency of production facilities.
Carmel Olefins intends to invest $ 20 million in the Israeli market and expects the investment to yield an additional Ebitda of $ 10-5 million per year. 2020, to 15% in 2025, and to 30% by 2030. As part of this effort, Carmel Olefins' research and development team has located a biopolymer technology that is in a relatively initial development stage, in order to produce a plant-based substitute for uses such as disposable packaging.