Azersun Holding to build paper recycling factory in Sumgayit
Azersun Holding has begun construction of a paper recycling factory
in Azerbaijan`s third largest city, Sumgayit, the company has
announced.
Mehran Mammadov, head of Azersun`s department of business development and investment, told a news conference Thursday that the project would provide an incentive to the development of a new industry in the country.
The factory, which will be built on a 20-hectare area, is expected to have an annual output capacity of 50,000 tons. The project is initially estimated to cost 30 million euros. 19-20 million of the amount will be spent to buy and deliver manufacturing equipment from Europe. The rest of the funds will be channeled into construction work and creating the required manufacturing infrastructure.
Part of the expenses will be undertaken by Azersun Holding. Foreign lenders will also be involved in the financing. The company is currently in talks on the issue with the Islamic Development Bank.
The factory, which will begin operating in the fourth quarter of 2009, will permanently employ 1,150 people. 900 employees will be engaged in collecting paper for recycling, while the remaining 250 will work in production. The project is expected to return the investment of its owners within four to five years.
The factory will produce various types of paper products, napkins, and other items. Facilities receiving paper for processing will operate in 30 locations across Azerbaijan, and citizens will be able to sell waste paper for recycling there.
Mammadov said the country`s annual demand for paper currently makes up 42,000 tons, which means the new factory will fully meet the needs. The remaining part of goods will be exported to Georgia, Turkmenistan and other countries.
Mehran Mammadov, head of Azersun`s department of business development and investment, told a news conference Thursday that the project would provide an incentive to the development of a new industry in the country.
The factory, which will be built on a 20-hectare area, is expected to have an annual output capacity of 50,000 tons. The project is initially estimated to cost 30 million euros. 19-20 million of the amount will be spent to buy and deliver manufacturing equipment from Europe. The rest of the funds will be channeled into construction work and creating the required manufacturing infrastructure.
Part of the expenses will be undertaken by Azersun Holding. Foreign lenders will also be involved in the financing. The company is currently in talks on the issue with the Islamic Development Bank.
The factory, which will begin operating in the fourth quarter of 2009, will permanently employ 1,150 people. 900 employees will be engaged in collecting paper for recycling, while the remaining 250 will work in production. The project is expected to return the investment of its owners within four to five years.
The factory will produce various types of paper products, napkins, and other items. Facilities receiving paper for processing will operate in 30 locations across Azerbaijan, and citizens will be able to sell waste paper for recycling there.
Mammadov said the country`s annual demand for paper currently makes up 42,000 tons, which means the new factory will fully meet the needs. The remaining part of goods will be exported to Georgia, Turkmenistan and other countries.
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