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Industrial development remains priority

27 October 2016 13:54 (UTC+04:00)
Industrial development remains priority

By Nigar Abbasova

Energy-rich Azerbaijan, which has recently faced with the negative influences of the global economic crisis, takes serious steps to develop non-oil sector, while creation of industrial parks and districts is considered to be an important element of modern innovative economy.

Deputy Economy Minister Niyazi Safarov said that the establishment of industrial parks and districts in the country is an essential step taken with a view to minimize oil dependence and develop industrial sphere.

Moreover, such parks will give an impetus for the development of regions and diversification of economy, he believes.

Safarov mentioned that some nine residents have already been registered in the Sumgayit Chemical Industrial Park. Moreover, Azertexnolayn, one of the plants located in the Park, has already launched its activity.

Safarov went on saying that residents of the park will launch output of products in 2017-2018, mentioning that SOCAR Polymer, one of the largest residents of the Park, will start test production in the second half of 2017, and will operate in its full capacity in 2018.

SOCAR Polymer project envisages construction of polypropylene and polyethylene plants in Azerbaijan, while the output will be used for the production of high pressure gas, sewage and water pipes, packaging, textiles, stationery, automotive components, electronic and electrical appliances, and medical industry.

The Sumgayit Chemical Industrial Park, the first large industrial park of the country, was established on an area of 295.5 hectares to promote industrial production, employment, sustainable development of non-oil sector, and business support in Azerbaijan.

The Park is expected to host about forty enterprises creating up to 10,000 new jobs. The park is divided into two parts - administrative and social zone and industrial zone.

The investment attractiveness of the Park is increased by the fact that its operating companies are exempt from income, land and property taxes for seven years. In addition, equipment and technology used in the Park are exempt from the value-added tax.

Main objective of the establishment such parks in the country are the creation of favorable conditions in the country for further development of industrial production, provision of support to entrepreneurs, and increasing employment of population in the sphere.

The deputy minister also spoke about other industrial parks, mentioning that the work on provision of infrastructure in the created industrial parks is currently underway.

He said a number of pharmaceutical companies will be soon founded in the Pirallahi Industrial Park.

One of the residents of Garadagh Park, a shipbuilding company, is implementing a number of large-scale projects in the country.

Moreover, some five residents have already registered in Balakhani Park, he said, adding that work on the creation of Mingachevir Park, which will specializes in light industry, is also underway.

Moreover, the deputy minister said that all installation work has been completed in the Neftchala industrial district and its first residents have already been registered, mentioning they are engaged in the supply of their equipment to the district’s territory.

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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova

Follow us on Twitter @AzerNewsAz

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