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SOCAR Polymer to launch new production lines [PHOTO]

1 August 2017 14:52 (UTC+04:00)
SOCAR Polymer to launch new production lines [PHOTO]

By Sara Israfilbayova

SOCAR Polymer, one of the biggest companies in Azerbaijan’s petrochemical industry, will launch new production lines.

By early 2018, it is planned to open up polypropylene production line with a capacity of 180,000 tons per year based on Canadian technology and a production line for high density polyethylene with a capacity of 120,000 tons based on Austrian technology.

SOCAR Polymer Director Farid Jafarov announced about this at an event, organized by Azerbaijan’s Economy Ministry, "Support of domestic production on the basis of inter-industry relations".

Jafarov noted that low density polyethylene is produced in the country for export, while the country itself imports high density polyethylene. The main goal of the SOCAR Polymer project is to eliminate imports in this sector.

“The products will be exported to the Turkish and European markets along with the domestic market,” he said.

Deputy Economy Minister Niyazi Safarov, in turn, noted that in industrial parks, which are an important factor in the development of industry, the necessary infrastructure is being created, which attracts more and more entrepreneurs.

Moreover, the government issues document of investment incentives to improve the business climate in the country.

He went on to say that recently Azerbaijan’s Economy Ministry has issued 182 investment incentive documents worth 1.6 billion manats ($940.7 million). The implementation of these projects will help to create 12,000 new work places. About 62 percent of these projects relate to industry.

Azerbaijan businessmen became eligible to get the investment incentives documents following the approval of amendments proposed to the Tax Code of the country.

Under the investment incentives document, half of the revenue of an individual entrepreneur, profits of legal entity are exempted from income tax for seven years. Import of equipment for the implementation of the projects is also exempt of VAT and customs duties.

Vilayat Valiyev, Director of the Institute for Scientific Research on Economic Reforms (ISRER) under the Economy Ministry noted the importance of SOCAR Polymer and added that it is important to create clusters around the company in the future.

SOCAR Polymer was founded on July 16, 2013 in order to reinforce the development of the chemical industry of the country. The company’s production facilities consisting of polypropylene and high density polyethylene plants are under construction within the territory of the Sumgayit Chemical Industrial Park.

SOCAR is a wholly state-owned national oil company headquartered in Baku, Azerbaijan. The company produces oil and natural gas from onshore and offshore fields in the Azerbaijani section of the Caspian Sea.

The company includes such production associations as Azneft (the enterprises producing oil and gas onshore and offshore), Azerikimya (the chemical enterprises) and Azerigas (distributor of gas produced in the country), as well as oil and gas processing plants, service companies, and the facilities involved in geophysical and drilling operations.

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SOCAR Polymer to launch new production lines [PHOTO] - Gallery Image
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