Azernews.Az

By Nazrin Gadimova

Based on an agreement signed between Azerbaijan's Nakhchivan automobile plant (NAZ) and the Chinese Lifan company, Azerbaijan will sell Chinese cars in Central Asia.

The document was signed during a visit of the delegation of the NAZ to Chongqing.

Head of the NAZ Musa Abdullayev said technicians of Azerbaijan's plant are working on a step-by-step plan to localize component parts imported from China.

He added that China is supposed to set up a service center in Azerbaijan.

Abdullayev went on to note that this year Azerbaijan plans to manufacture 2,500-3000 cars of Lifan brand. Moreover, the country will construct three updated models of Lifan in May.

During the meeting, the Chinese side appreciated the Azerbaijani leadership's role in expanding the Azerbaijan-China economic and trade relations as well as creating some favorable conditions for business development in the country.

It is noteworthy that Azerbaijani government policy has promoted its economic development and strengthened its status as a key industrial player in the region.

Construction of Nakhchivan automobile plant began in 2008 and was completed on January 11, 2010. The plant, with an area of about 2.6 hectares uses the latest models of equipment made in Germany, Belgium and Italy.

Lifan Industry, a privately owned Chinese motorcycle and automobile manufacturer is based in Chongqing. Founded in 1992, it began its manufacturing in 2005, with license-built microvans and a small sedan developed by Lifan itself.

NAZ and Chongqing Lifan Industry (Group) Imp. & Exp. Co., Ltd. signed a contract to expand cooperation as part of an agreement approved in an Azerbaijani-Chinese Business Forum in May, 2009.

Azerbaijan and China have signed nine agreements on technical and economic cooperation, totaling over $ 36.5 million to date.

Over 160 pieces of equipment for domestic purposes were delivered to Azerbaijan in the framework of these agreements in 2012. Negotiations on delivering 155 pieces of construction equipment to the country are underway.

Azerbaijan has called on the Chinese government for an additional 50 units of equipment for domestic purposes at the same time.

Diplomatic relations between the two countries were established in April, 1992. The legal framework for bilateral cooperation has been elaborated in 44 documents.