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Growth in Azerbaijan's cardboard production foreshadows progress in other sectors

31 January 2024 16:02 (UTC+04:00)
Growth in Azerbaijan's cardboard production foreshadows progress in other sectors
Qabil Ashirov
Qabil Ashirov
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Thanks to the rapid development of the country's economy, paper and cardboard packaging production is constantly increasing in Azerbaijan. Despite the fact that paper and cardboard production has never been among the largest segments of industrial production in the country, as is known, the paper and cardboard packaging sector is closely related to other sectors, and the fluctuation in this sector gives us a clue into the general economic condition.

Currently, Azerbaijan meets over 60 percent of its potential production, and it increases year by year.

According to official state statistics, paper production in the country in 2020 grew by almost 12.3%, and the growth is currently ongoing. It is worth noting that the country’s food packaging sector is diverse. With Azerbaijan’s government aiming to improve export levels and position Azerbaijan as a regional food production powerhouse, new opportunities for local and foreign companies are emerging. This boosting economy in Azerbaijan will continue to drive demand for packaging. In addition to the four large paper and cardboard factories in the country, there are dozens of small enterprises located in Baku and the surrounding regions. With the growth of the manufacturing and service sectors, the number of such enterprises is undoubtedly increasing day by day.

Recently, the Azerbaijani Economy Minister noted in his X social account that Baku Cardboard and Box Factory LLC has obtained residency in the Sumgait Chemical Industrial Park. The company is set to establish a cardboard paper manufacturing facility for packaging construction materials and agro-industrial products. This enterprise, with an investment volume of AZN20 m ($11,8m), is expected to create permanent jobs for 100 individuals.

In a comment to Azernews on the issue, economist Eyyub Karimli noted that in general, the development of cardboard packaging was related to the development of production and service in the country, as well as the rise of service to a higher level. If we pay attention, earlier we used to see the packaging in ordinary plastics or wooden packaging. He emphasised that now even fruits and vegetables are placed in cardboard boxes. The economist added that the development of the packaging sector indicates the export potential of Azerbaijan as well.

“As we know, most of the products exported abroad are placed in cardboard containers. On the other hand, the level of service within the country has increased. As we know, cardboard packaging is less expensive. That is, it does not increase the weight of the product. It is also environmentally safer and more hygienic.

Also, cardboard packaging is more aesthetic and eye-catching compared to other packaging. It is also the packaging standard in this world that it is recommended that most of the packaging be in cardboard boxes. As we know, we are already seeing a decrease in the number of packages made of wood, polyethylene, and plastic all over the world. It goes without saying that the demand for cardboard boxes produced in the country increases. Today, industrial production and processing of food products are increasing in the country, and at the same time, the increase in paper and cardboard production is continuing in parallel in this direction,” the expert concluded.

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Qabil Ashirov is AzerNews’ staff journalist, follow him on Twitter: @g_Ashirov

Follow us on Twitter @AzerNewsAz

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