President of the Republic of Azerbaijan Ilham Aliyev has visited the city of Sumgayit.
The head of state first attended the inauguration and groundbreaking ceremonies of new manufacturing enterprises in Sumgayit Chemical Industrial Park.
The Sumgayit Chemical Industrial Park was established by a Decree of the President of the Republic of Azerbaijan dated 21 December 2011. This is the first Industrial Park established in Azerbaijan. Enterprises of the petrochemical, chemical, construction materials and other priority industries are operating in the largest industrial park of the South Caucasus. New production and processing enterprises are being established in the park as well.
Minister of Economy of Azerbaijan Mikayil Jabbarov informed the head of state of the work done in the Sumgayit Chemical Industrial Park.
It was noted that 31 business industrial facilities with a total investment of more than 3.27 billion US dollars had been granted residency status in the Industrial Park. So far, about 3.1 billion US dollars have been invested in the Industrial Park by its residents. Seventeen out of 31 registered residents are already active. The commissioning today of the “Glassica” Closed Joint Stock Company and “Azersulfat” Limited Liability Company brings the number of enterprises operating in the Industrial Park to 19.
In total, more than 5.86 billion manats worth of products have been sold by residents of the park, of which more than 2.15 billion manats (36.7 percent) worth were exported.
It was brought to the attention of the President that there were positive dynamics in the area of production and exports of goods of the Sumgayit Chemical Industrial Park. According to statistics, 794 million manats worth of products were produced in the Industrial Park in the first half of 2021, while 1.2 billion manats worth of products were manufactured in the corresponding period of 2022, which is 52.14 percent more. Exports compared to the first half of last year (267.5 million manats) have increased 1.9 times, amounting to 508 million manats in the first six months of this year.
It was reported that the products manufactured in the Industrial Park are sold in Turkiye, Japan, the USA, Canada, Italy, China, Russia, Ukraine, Belarus, Taiwan, Bulgaria, Romania, Poland, Finland, Netherlands, Macedonia, Lithuania, Austria, Estonia, Denmark, Kazakhstan, Uzbekistan, Turkmenistan, Tajikistan, Georgia, Kyrgyzstan, Brazil, Egypt, the UAE, Lebanon, Iraq and other countries.
One of the key indicators is that more than 6,000 people have been provided with permanent jobs at the Sumgayit Chemical Industrial Park.
First, President Ilham Aliyev reviewed the “Glassica” Closed Joint Stock Company, which produces glass containers.
The founder of the Closed Joint Stock Company, Ibrahim Hasanov, gave information about the enterprise.
It was mentioned that the total investment value of the company, the foundation of which was laid by the head of state on 18 January 2021, was more than 20 million manats. It will produce 90 million pieces of colored glass containers (bottles) a year. The products will fully meet the domestic demand and will also be exported to foreign countries. The company permanently employs a total of 160 people. Its territory covers an area of 2.6 hectares of the Industrial Park. The enterprise was designed and equipped with advanced technologies by German company “HORN Glass Industries AG”, an international company with more than 135 years of experience in the field of glass melting technologies.
The President of Azerbaijan launched the enterprise.
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Another resident of the Sumgayit Chemical Industrial Park is “Az-Tex-Import” Limited Liability Company. Established on an area of 4 hectares of the Industrial Park, the LLC will produce light, medium-sized and heavy tonnage “IVECO” trucks and special purpose vehicles with the application of advanced Italian technologies. Ninety people will be provided with permanent jobs in the enterprise, which has an investment value of 19.2 million manats. The enterprise will manufacture 100 automobiles a year. The vehicles will be sold in the domestic market and exported to Russia, Georgia, Turkmenistan and Iran.
The founder of “Az-Tex-Import” Limited Liability Company, Samir Ibadullayev, informed President Ilham Aliyev about the project.
It was noted that there were a number of enterprises specialized in automobile production in the industrial zones of Azerbaijan. In particular, the Hajigabul Industrial Estate is home to an enterprise with an annual production capacity of 1,500 “GAZ” and “ISUZU” trucks and buses and 5,000 “Chevrolet” cars. The Neftchala Industrial Estate is home to a plant with an annual production capacity of 10,000 “Khazar” and “Peugeot” cars. At the next stage, there are plans to implement the “IVECO Daily” truck production project in the “Araz Valley Economic Zone” Industrial Park located in Jabrayil district, as well as the Iran-Azerbaijan joint project on the production of agricultural equipment and machinery.
It was reported that work on the establishment of automobile service centers in industrial zones was also underway. In Aghdam and the “Araz Valley Economic Zone” industrial parks, projects involving maintenance of various types of vehicles and equipment, as well as the restoration and production of spare parts, are on the agenda. Spare parts for vehicles are also manufactured in industrial zones, which creates additional opportunities for the expansion of local production.
President Ilham Aliyev laid the foundation of the enterprise for the production of trucks and special purpose vehicles.
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Then the head of our state familiarized himself with the newly-built sulfuric acid production facility of “Azersulfat” Limited Liability Company.
It was noted that the sulfuric acid production facility, the foundation of which was laid with the participation of the head of state on 18 January 2021, was built on an area of 1.5 hectares of the Industrial Park. The enterprise is engaged in the production of sulfuric acid, which is used as a cleaning agent in the production of mineral fertilizers (superphosphate, ammonium sulfate), in the chemical industry and metallurgy, and in the oil industry. The annual production capacity of the enterprise is 20,000 tons. Of this, 10,000 tons are intended for the domestic market and the other 10,000 tons will be exported. A contract has already been concluded with the “Rustavi Nitrogen” enterprise from Georgia. Requests for sulfuric acid are also coming in from Kazakhstan and Russia. Demand is also on the increase in the domestic market.
It was noted that products of the enterprise with a total investment of more than 10 million manats will initially be supplied to the meeting domestic market and will be exported to Georgia and Russia at subsequent stages.
President Ilham Aliyev: What is the number of employees here?
Director of LLC: Thirty-four, and all of them are residents of Sumgayit. Four of them are veterans of the Patriotic War. We also have a ghazi. All of them have been provided with jobs.
President Ilham Aliyev: Very good!
President of Azerbaijan Ilham Aliyev launched the enterprise.
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Then the President of Azerbaijan laid the foundation of the “Azerbaijan Vanhong Ceramics Co” Limited Liability Company, which specializes in the production of ceramic tiles.
Fan Jian Shan, the founder of the enterprise, informed President Ilham Aliyev of the project.
It was reported that according to the project, “Azerbaijan Vanhong Ceramics Co” Limited Liability Company, a resident of the Sumgayit Chemical Industrial Park, will build a ceramic tile production facility on an area of 22.8 hectares of the Industrial Park. High-quality ceramic tiles of various sizes will be produced at the enterprise using advanced Chinese technologies. In addition to being sold in the domestic market, the company's products will be exported to the region and the CIS countries.
It was noted that the investment value of fully Chinese project was close to 70 million manats. A total of 400 people will be permanently employed in the enterprise with an annual production capacity of 18.5 million square meters of ceramic tiles.
Fan Jian Shan, the founder of the enterprise, said: Our company was founded in 1992, and currently we have five factories in China and five elsewhere in the world. The total investment value of our enterprises is 300 million US dollars. The number of employees working in our factories is 4,000 people. The total annual production capacity of our factories is 80 million square meters and the total annual revenue is 400 million US dollars.
President Ilham Aliyev: Very good! I noticed that you had established enterprises in only four countries outside of China. Azerbaijan is the fifth country. As you said, this shows that the investment climate in Azerbaijan is very good. Four hundred people will work here and receive good salaries. The volume of investments is quite large – close to 70 million manats. But this is only the first stage. I am sure that you will expand your activities in other areas as well.
The head of state laid the foundation of the enterprise.
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“4MAPS Information Technologies” Limited Liability Company, one of the residents of the Sumgayit Chemical Industrial Park, will implement a project entitled “Organization of research and development, cartography and navigation services” on an area of 1.5 hectares of the Industrial Park. Within the framework of the project, a 7-storey business center will be built in the Industrial Park, which will offer a number of services. The center will be equipped with high-precision technology and a smart sensor. There are plans to create 750 permanent jobs in the enterprise with an investment value of 10 million manats.
Abdulla Demirtas, the founder of “4MAPS Bilgi Teknolojileri” LLC, informed President Ilham Aliyev of the project.
It was reported that “4MAPS Bilgi Teknolojileri” LLC is a representative of “Apple Maps” and “Here Technologies” applications in the CIS, Middle East and Azerbaijan, and “Yandex Maps” application in Azerbaijan. Although the main field of the company’s activity is geographic (map) data collection, 3D and 4D map production services, it also intends to develop software products, games and “metaverse” application development services in the newly built center. The project will enable the operation of a processing center for Eastern Europe, Georgia, CIS, Central Asian countries in Azerbaijan.
President Ilham Aliyev: You are probably aware that various projects have been implemented between Turkiye and Azerbaijan in many fields. We are seeing the restoration work we are doing together in Karabakh. But there has been no work in this field yet. This is the first such project.
Abdulla Demirtas: Armenian names have been changed to Azerbaijani on three maps. With God's grace, we will go to Karabakh again in a week’s time, this time to “fight” with Google. Because we are not a partner of Google, but we will send Google our devices from here, transfer our coordinates and inform that Azerbaijan already owns this place.
President Ilham Aliyev: Yes, the names of streets, villages, cities.
Abdulla Demirtas: We have changed everything. We have changed everything in “Apple”, “Here” and “Yandex”. When the updated map of “Here” installed in your vehicle recently, I hope, the next time you visit Karabakh, you will see the names in Azerbaijani.
President Ilham Aliyev laid the foundation of the center.
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One of the most important directions of the economic policy being implemented in Azerbaijan is the rapid development of industry, the non-oil industry in particular. Proceeding from President Ilham Aliyev’s principle that “the successful development of the country must be ensured by the non-oil industry”, special importance is being attached to the development of the non-oil industry, the effective use of existing natural and economic resources, the expansion of industrial production through innovative methods, the creation of new production areas. Systematic and result-oriented measures are being implemented to manufacture competitive goods that create high added value and to extensively apply state-of-the-art technologies. From this point of view, the application of progressive mechanisms compatible with the requirements of economic development of the current period and the resulting establishment of industrial zones is of particular importance. Industrial zones have become an important factor in expanding entrepreneurial activity, increasing business innovation and efficiency, manufacturing competitive products based on high technologies, reducing dependence on the oil and gas factor, developing the non-oil sector, and increasing the level of employment.
In order to improve governance in industrial zones, the Economic Zones Development Agency was established under the Ministry of Economy by a Decree of the President of the Republic of Azerbaijan dated 22 January 2021. The Agency is responsible for organizing the operation of six industrial parks (Sumgayit, Pirallahi, Mingachevir, Garadagh, Aghdam and the Araz Valley Economic Zone industrial parks located in Jabrayil district), four industrial estates (Sabirabad, Masalli, Neftchala, Hajigabul industrial estates) and 51 agriparks. The Agency also prepares action plans and ensures their implementation to facilitate management and development.
A favorable investment and business environment has been created for entrepreneurs in industrial zones. In particular, residents of industrial parks are provided with complete infrastructure at the expense of the state. Residents are exempted from value added tax, property, land, income or profit taxes for a period of 10 years from the date of their registration, and from customs duties for a period of seven years during the importation of machinery, technological equipment and facilities being imported for production purposes.
So far, 108 business entities have been granted residency status in industrial zones, and 58 of them have already started production. Entrepreneurs have so far invested more than 6.4 billion manats in industrial zones and created more than 10,100 permanent jobs. In the next phase of existing projects, more than 450 million manats will be invested in industrial zones and more than 4,500 new jobs will be created.
To date, products worth more than 7.17 billion manats have been produced in industrial zones, of which 2.3 billion manats (about 32.7 percent) worth of products have been exported.
