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High expectations key to success: Italian business in Azerbaijan

1 June 2016 09:00 (UTC+04:00)
High expectations key to success: Italian business in Azerbaijan

In an exclusive interview with Azernews, Italian Trade Commissioner Luigi D’Aprea talked about the expectations from the Caspian Oil&Gas exhibition opening in Baku on June 1, and shared his views about the cooperation between Azerbaijan and Italy.

Question: Mr. Luigi D’Aprea, how do you estimate the current dynamic of the relations between Azerbaijan and Italy?

A.: The relations are excellent, especially the commercial relations.

Goods turnover between Azerbaijan and Italy made up roughly 600 million euros from January to December 2015. The main sectors that we cooperate are related to consumer goods, interior design, building material, industry, ICT, and, of course, the energy sector that enjoys huge opportunities.

This year we are having a very big Italian participation in the 23rd International Caspian Oil&Gas exhibition for the first time. STAND ITALIA, will host n. 12 Italian companies: Asco Pompe Srl – Pumps and Fluids handling, CAPRARI SPA, pumping power, CIESSE SRL, heat exchanger, DRILLMEC SPA – Oil Equipment, GORIZIANE GROUP SPA – Pipe facing machines, Pipe Bending Machines, Mandrels, Internal Line-up Clamps, Double/Quadruple Joint Plants, Pipe handling plants for vessels, INDUSTRIE COMETTO SPA – Road semitrailers, modular heavy trailers, self-propelled modular trailers and transporters – RUBINETTERIE UTENSILERIE BONOMI – Wireless and actuators – SENSITRON SRL – Gas detection Technologies .

The Italian presence at the exhibition is not only limited to our stand but also fostered by the other Italian companies participating with individual stands for a total participation of 18 Italian companies and this confirms the extraordinary relationships in these sectors in particular.

The Italian participation will be represented by solid and better structured companies focused for foreign markets, confirming their willingness to cooperate with Azeri companies.

Q.: By the way, what benefits will the TAP project bring to the Italian economy in general?

A.: . Italy is a strategic partner for (TAP) Trans-Adriatic Pipeline. The big project as the better enhances relations between Azerbaijan and Italy and now Italy’s SNAM company owns 20 percent of shares in the project. We could see benefits for our internal tariff in Italy and Europe as a provider of energy -- so for us it’s very important. It's a big challenge and opportunity for Italy, as well.

Q.: Over the past few years Italy has remained the biggest trade partner of Azerbaijan. Do the two countries expect growth in trade turnover?

A.: We hope to continue and increase bilateral relationships and of course the bilateral inter exchange, I mean export and import between the two countries. During the last five years the bilateral exchange, especially the export of Italian companies to Azerbaijan, increased by more than 70 percent.

We know that we are very close to Azerbaijan and the country relies on Italian quality, style, and technologies and especially to willingness of our companies. That’s why I think that this will be a focus point to develop the relations.

The Italian Trade Agency has a target to enhance bilateral cooperation and to help small and medium enterprisers to get in touch with new economic opportunities of this market. We operate in Azerbaijan for more than 15 years and act as trade promotional section of Italian Embassy, so we are a governmental agency. I believe the two countries will see very big successes in terms of future relations.

Question: What is the expectation of Italian companies from the Caspian Oil&Gas exhibition?

Q.: We have more different participants and new commerce, compared to other big companies, which are already present in this market. We have big expectations from this new commerce, because they are considering very interesting offers including pumps, fluid handling, heat exchanger, oil field equipments, gas detection technologies, and transport and logistics sectors specialized in oil and gas.

Italy has an international leadership in Oil & Gas Industry, our products and high added value services such as valves, equipment, machineries, instruments, engineering, drilling, energy solutions, maintenance etc., are part of our economy’s sector which world’s export are more than 55 billion of USD (if we consider the entire “valves sector” the Italian world’s export is about 8 billion of USD. Italy is the second world’s leader in this branch).

There are a lot of small sectors involved in oil and gas market, and for most of them this is the first exhibition, but there are also companies, which participated in many other large exhibitions around the world. They are interested to get in touch with local opportunities, economy and companies including big and small.

We know that the Azerbaijani market enjoys very high level quality. So, Italian companies are ready to cooperate and compete with local and international companies in the Azerbaijani market. We are ready to prepare big offers. Of course, the participation at the exhibition suggests different steps for sides and they should better verify all feedback after the exhibition to stay in contact with companies and prepare the right offer.

Azerbaijan invested a lot of quality products in this sector and of course requires very high quality in specialization to cooperate in this branch, because it’s not easy and not related to the consumer goods. All the technologies, material and instrumental and implants are involved in these sectors. And the offer of Italian companies is of high level: high level of technology, their expertise, and their customer assistance. They are ready to prepare tenders or to participate in the local tenders. This step will have challenges.

Q.: May we see larger Italian participation in the oil and gas sector of Azerbaijan? How do you view the prospects in this regard?

A.: Italy is a very long cooperator. Italian presence in oil and gas field of Azerbaijan has begun with the work and commissioning of SAIPEM, which is operating in oil and gas.

I hope to arrange the next participation of Italy for the next year, as well. I would like to verify Italian participation at the exhibition. I personally guess that this exhibition is a starting point in terms of opportunities in this sector. Next year I wish to receive very big participation at the exhibition compared to this year. This year Italy is participating characterized with institutional stand with individual participations. Our target for the next year will be to arrange an Italian pavilion. This will not be easy, but we will work on it.

Q.: Which other fields do you see as perspective to enhance cooperation?

A.: We are the first partner of Azerbaijan, operating in the country for the past 19 years. Italy is ready to cooperate for better diversification of the Azerbaijani economy in agriculture, and ICT. We could offer very big support for this achievement.

The main sectors of bilateral exchange are consumer goods, furniture, projecting, building materials, light system and all in this branch, which is relating to building, home, wood and interior design Italy is really a big competitor.

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