Azernews.Az

By Nigar Orujova

The state energy company SOCAR put into operation two new facilities at the ethylene-polyethylene plant of Azerkimya production association, a state-run chemicals producer, in the industrial city of Sumgayit, some 30 km north of the capital Baku, on May 21.

The company commissioned a water-cooling complex with cooling speed of 21,000 cubic meters per hour and a nitrogen-oxygen facility.

The commissioning ceremony was attended by SOCAR President Rovnag Abdullayev and other senior representatives of the state oil company, the head of the Executive Power of Sumgayit Eldar Azizov, and Azerkimya head Mukhtar Babayev.

SOCAR includes Azneft production association, which runs onshore and offshore oil producing companies, Azerkimya and gas supplier Azerigas.

According to Rovnag Abdullayev, SOCAR plans to launch two new high-pressure polypropylene and polyethylene facilities at Azerkimya by the end of 2015. Currently, the Azerkimya production association produces low-pressure polypropylene and polyethylene.

The commissioning of the new facilities will provide suitable conditions to produce more expensive produce, which will considerably affect Azerkimya's revenues.

Abdullayev noted that recently much work has been done to modernize and reconstruct the enterprises operating on the Azerkimya basis, which allows lowering production costs by 35 percent.

The development of the Sumgayit chemical-industrial park and the opening of enterprises will require investments to the tune of 400 million manats (over $500 million), according to Abdullayev.

"Work on creating the Sumgayit chemical-industrial park is being carried out jointly with the Azerbaijani Economic Development Ministry. In particular, designing projects of enterprises, which are planned to be set up in the park area, is underway," he said.

Submission of investment bids will start at the end of 2013, Abdullayev said.

The Sumgayit Chemical Industrial Park is being established according to a presidential decree signed in December 2011. The Economic Development Ministry was entrusted to take measures supporting the creation and development of the production and processing chemical industry enterprises at the park.

The park has registered capital of 500,000 manats (over $630,000).

It is being created to provide favorable conditions in the country to develop competitive industrial production based on innovative and high technologies, ensure business support in this area and sustainable development of the non-oil sector, as well as increase employment in the manufacturing sector.

Creating the park can take up to three years, which will be followed by the commissioning of enterprises on its territory.

Territory covering 167,66 hectares was allocated for the park. Design specification and estimates for road junctions, gas lines and the project to build domestic infrastructure were completed.