Azernews.Az

Azerbaijan on Friday signed agreements on establishing two enterprises with German investors.
Under the memoranda, signed by the Azerbaijan Investment Company (AIC) with Germany’s RAO AgroMilk and RAO Global Group companies, the Agstafasud Complex comprising four enterprises will be built in a village of Azerbaijan’s Aghstafa district and the Aghstafa AgroService company will be set up in a settlement of the district.
Afgan Isayev, the AIC’s Executive Director, said the Agstafasud Complex will produce 50 tons of milk per day under the project. In the initial two years, five types of sterilized milk, yogurt, sour cream and other products will be produced. Over 18 million liters of dairy products per year will be produced, as well as milk-and meat-yielding and pedigree cattle bred at the enterprise. During the third year of operation, production of butter and other animal husbandry products will begin.
According to preliminary estimates, the project is valued at a total of 30 million euros. The start-up capital stock of the Agstafasud Complex will be 5m euros. 4m euros of the amount will be contributed by foreign investment, while the AIC will hold the remaining 20% of the capital.
The Aghstafa AgroService company, to be set up under another project, worth 3m euros, will have a capital stock of 1m euros, with the Azerbaijani investment firm holding a 25% stake. The company, to be provided with agricultural machinery and equipment manufactured by Germany’s industry leaders, will be providing agri-technical services in Aghstafa and nearby regions.*