Garadagh Cement facing shutdown threat
Azerbaijan's biggest cement producer, Garadagh Cement, may halt
output over an emerging problem with supplies.
The company said it had to modify prices for its products as of May 1 due to a price increase of about 50% of an important raw material - volcanic sand - which is supplied mainly from the western Azerbaijani districts of Agstafa and Tovuz. Garadagh Cement now offers to sell the product for seasonal prices, just like in Russia.
Due to sluggish demand in winter, the company says it is ready to sell cement for a low price during that season.
The price for cement produced by Garadagh Cement OJSC has increased since May by 20 per cent to reach 9-10 manats per sack (up to $12).
Despite significant price rises, there are still certain logistics issues related to the continuous supply of volcanic sand to Garadagh Cement. The shortage of supply may lead, in an extreme case, to a halt of cement production, the company said.
Economic Development Minister Heydar Babayev said that despite the increase, the price for cement in Azerbaijan is still below that in a number of other CIS states.
"The price has risen not only here but in a number of world countries," he added.
In January-April, Garadagh Cement produced some 350,000 tons of cement and had domestic market share of about 33 per cent.
The company said it had to modify prices for its products as of May 1 due to a price increase of about 50% of an important raw material - volcanic sand - which is supplied mainly from the western Azerbaijani districts of Agstafa and Tovuz. Garadagh Cement now offers to sell the product for seasonal prices, just like in Russia.
Due to sluggish demand in winter, the company says it is ready to sell cement for a low price during that season.
The price for cement produced by Garadagh Cement OJSC has increased since May by 20 per cent to reach 9-10 manats per sack (up to $12).
Despite significant price rises, there are still certain logistics issues related to the continuous supply of volcanic sand to Garadagh Cement. The shortage of supply may lead, in an extreme case, to a halt of cement production, the company said.
Economic Development Minister Heydar Babayev said that despite the increase, the price for cement in Azerbaijan is still below that in a number of other CIS states.
"The price has risen not only here but in a number of world countries," he added.
In January-April, Garadagh Cement produced some 350,000 tons of cement and had domestic market share of about 33 per cent.
Here we are to serve you with news right now. It does not cost much, but worth your attention.
Choose to support open, independent, quality journalism and subscribe on a monthly basis.
By subscribing to our online newspaper, you can have full digital access to all news, analysis, and much more.
Subscribe
You can also follow AzerNEWS on Twitter @AzerNewsAz or Facebook @AzerNewsNewspaper
Thank you!