High-tech plant to appear in Azerbaijan
By Nigar Orujova
Azerbaijan, known in the world as the oil producing country, is keen on reviving its production facilities.
While projects on creation of industrial parks around the country are successfully realized, a new industrial equipment plant can be constructed near Baku.
Constructed by AzeriSteel Garadag Metal Construction Plant, the facility will produce equipment for oil, gas, petrochemical, food and pharmaceutical industries based on advanced technologies.
The plant will cost an estimated 32 million euros, creating more than 700 jobs.
Presenting the project to the public, Deputy Economy Minister Niyazi Safarov said that design and engineering work within the project will be carried out by German engineering company EPC Group.
The company will also provide the new enterprise with technological support.
Production of equipment for oil and gas industries is still profitable for energy rich Azerbaijan. Moreover, the country can export its products to other countries engaged in hydrocarbons.
Earlier, economy expert Ogtay Hagverdiyev said that, in the current situation with low oil prices, the industry should be science-driven. One of the main fields in this connection may be connected with oil as well, but not with extraction, he added.
"There is a tendency in decrease of oil extraction. However, it [production] will not stop entirely. For this reason, we have to process the crude oil, create a large petrochemical complex, and obtain modern rival products from this oil with a view to enter the world market. We should use oil as a raw material in the country," Haqverdiyev said.
Currently, the state gives a priority to production of competitive industrial products and equipment in Azerbaijan. AzeriSteel has become one of the leading companies in the country for the production of complex metal structures. The project was financed through a soft loan in the amount of 10 million manats allocated by the National Entrepreneurship Support Fund.
In general, the Fund has allocated soft loans worth more than 410 million manats to finance 130 projects of modern industries with total cost of 981 million manats. More than 115 enterprises as part of these projects have already been already launched.
Another mechanism of the state support to entrepreneurship development is Azerbaijan Investment Company which is a shareholder in the plant for the production of industrial equipment.
AzeriSteel plant that started activity after reconstruction in 2011, has production capacity of 5,000 tons of products per month.
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Nigar Orujova is AzerNews’ staff journalist. Follow her on Twitter: @o_nigar
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