Azerbaijan can be most advanced green cement exporter in S Caucasus
Nigar Hasanova
Read moreThe country's growing building activity and the need for cement in both local and regional markets have led to the development of the cement sector. Due to its advantageous location, Azerbaijan is also able to export cement to its Caucasus and Caspian neighbors. Potential buyers for Azerbaijani cement exports include Georgia, Russia, Turkmenistan, and Kazakhstan. Because of this, Azerbaijan's cement sector is expanding, and it now has integrated cement facilities capable of producing 4.7 million tons annually.
Azerbaijan produced 3 million 418.4 thousand tons of cement between January and November of 2023 according to the State Statistics Committee's monthly report. Comparing the same time of previous year to this one, cement production rose by 4.1%. Azerbaijan manufactured 3 million 509.6 thousand tons of cement clinkers between January and November of 2023. Production rose by 10.4% over the same time in the previous year.
It should be mentioned that this year's successes were largely due to the Azerbaijani government's involvement and assistance in this area. As of right now, state policy is concentrated on fostering the growth of the local economy by protecting consumers against imports of cement and clinker that are the result of unfair competition and by providing advantageous conditions for local manufacturers. Cement production companies "Norm" in Azerbaijan LLC, "Holcim-Azerbaijan" JSC, "Arkoz Gazakh Cement Plant" LLC, and "Nakhchivan Cement Plant" MMC are some of the significant contributions to this result. The State Statistics Committee estimates that the total amount of cement produced in the country in the first half of 2023 was 1.76 million tons. This translates into a 1.9% annual increase above first-half 2022 levels.
With current plans to enhance the sector, it is anticipated to provide even more income in the future. The Economic Zones Development Agency states that two businesses that are scheduled to open in 2024 will invest over 11 million manats in the "Araz Valley Economic Zone" Industrial Park by the following year, potentially creating up to 150 jobs. Thus, in the 5-hectare Industrial Park, the "Improtex Karabakh Industrial Complex" MMC has already begun construction on a mine-clearing, special-purpose equipment, and metal products production facility. Planning and excavation are currently taking place in the region. The business is anticipated to employ 124 people with a 7.4 million manat investment volume. The firm will manufacture two types of mine-clearing equipment: the "Revival P" model, which is designed to remove mines for troops, and the "Revival T" model, which is intended to clear mines for tanks. The plant will also run a service department for these devices concurrently. The firm intends to create one hundred demining machines annually. The equipment that will be manufactured will be exported and utilized in de-occupied areas.
These improvements demonstrate that the progress is based not just on the cement manufacturing sector but also on its relationship and integration with other sectors, leading to an expansion of the economy across a number of sectors and the creation of jobs. In the grounds of the Industrial Park, "Holcim Azerbaijan" OJSC intends to commission a 2,000-ton cement terminal in phases starting in 2024. The business will construct a facility in the second phase to produce dry adhesive and commercial concrete. With a 3.4 million manat investment, the company will give stable employment to more than 20 people. The domestic market will be the outlet for the generated goods.
Azerbaijan is also creating strategies for the industry's sustained growth in addition to its economic contribution. The first green cement, ECOPlanet, is introduced under the Optimal and Inshaatchi brands. Both goods are cements with a limestone basis that are frequently used in home construction. These are prime illustrations of the Azerbaijani cement industry's dedication to providing creative and sustainable solutions to our partners and clients while also accelerating the advancement of sustainable building practices.
"We aim to bring new methods to build sustainably to the construction industry. Through Inshaatchi and Optimal, we step in the race for CO2 reduction and the usage of alternative raw materials. Holcim Azerbaijan is the first company in the Caucasus offering Green solutions to its partners," Sergiu Stoicov, the Commercial director of Holcim Azerbaijan, said.
The most urgent climate goals and the fact that there is now no perfect or nearly ideal substitute for cement in the industry must both be taken into account on the route towards decarbonizing the cement sector. In order to reduce pollution and environmental deterioration, Azerbaijan invests in sustainable cement production because country recognizes the necessity of adopting more eco-friendly and sustainable practices.
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