By Ofeliya Afandiyeva
The State Oil Company of Azerbaijan (SOCAR) has supplied the first batch of polypropylene exported to Russia’s Rostov region and the total volume of deliveries will exceed $23.4 million, Rostov’s governor Vasily Golubev has said.
The delivered polypropylene will be used for the production of packaging film in Volgodonsk city in the region.
“Azerbaijan’s SOCAR Polymer has already delivered the first batch of polypropylene to Rostov Oblast for high speed lines on biaxially oriented films production at Waterfall LLC in Volgodonsk. This project was the first step towards long-term cooperation in a new, high-tech field. According to expert estimates, the volume of deliveries will exceed $23.4 million,” Governor Vasily Golubev told local media on November 25.
The governor added that Donetsk Excavator LLC plant is planning to sign a contract for the supply of agricultural equipment to Baku by late 2019.
Furthermore, Golubev invited Azerbaijani authorities to the opening ceremony of the military-historical museum complex “Sambek Heights” created in the memory of solders, including those who fought under two Azerbaijani divisions in that territory during the Great Patriotic War.
SOCAR Polymer was established by the State Oil Company of Azerbaijan in 2013.
SOCAR Polymer commissioned its polypropylene plant in July 2018 with a design capacity of 184,000 tons of polypropylene per year. SOCAR Polymer's revenues from the operation of these plants are expected to reach $6.6 billion while net profit will be $1.98 billion. For the entire period of operation of the plants, tax payments to the state budget of Azerbaijan will amount to $600 million.
In February 2019, the company commissioned a plant for the production of high density polyethylene with a capacity of 120,000 tons of manufactured products per year.
In general, SOCAR Polymer plants are designed to produce 10 types of polypropylene and four types of high density polyethylene.
Total investments in construction projects of factories in Sumgayit for the production of polypropylene and polyethylene amounted to $816 million. Sixty percent of the investments were covered with a loan from Gazprombank, the remain 40 percent were financed by SOCAR, Vitol, PASHA Holding, Gilan Holding and Azersun Holding.
Follow us on Twitter @AzerNewsAz