New metallurgical complex to reduce dependence on steel imports [PHOTO]

By Azernews

By Amina Nazarli

The industrial sector of Azerbaijan is expected to see a large increase, as a huge metallurgical complex will be built in the country's third largest city Sumgayit. 

The complex, consisting of five plants and worth 1,225 billion euros, will allow the country to save millions of dollars it spends on import and create opportunity for opening new jobs. 

An agreement on the complex construction was signed between Azerbaijan’s Baku Steel Company and Italian Danieli Group in Baku on December 20.

The document was inked by Chairman of Supervisory Board of Baku Steel Company Rasim Mammadov and Chairman and CEO of Danieli Group Gianpietro Benedetti as part of the event titled “Development of metallurgical industry: new challenges and goals”.

Economy Minister Shahin Mustafayev, adressing the ceremony, said that creation of the metallurgical complex will reduce the dependence on import, expanding export potential of the country. 

“This is a very important project both in terms of creating new job spots and reducing the dependence on import, while the export potential of the country will be boosted,” he said, noting that a half of the complex’s products will be exported.

Azerbaijan will be able not only to fully meet its demand in metallurgical products, but also export the remaining part of the products, added the minister.

 “The construction of the complex is planned to be completed in three years. During the construction work, 4,000 new job places will be opened, and more than 1,200 permanent jobs will be created after commissioning of the complex,” said Mustafayev.

The minister further mentioned that the project will be fully implemented thanks to private investments.

Gianpietro Benedetti, for his part, said that the creation of the complex will allow Azerbaijan saving about $500 million per year from the import of steel products.

Baku Steel CEO Ramin Karimov talking to journalists stressed that the project of metallurgical complex in Sumgayit is the largest non-oil sector of Azerbaijan.

"We have a lot of companies that import steel products, and the creation of the complex will ensure not only our demand, but also allow to export it to neighboring countries," he said.

The uniqueness of the complex, according to Karimov, is that it will allow carry out the entire production process without additional logistical lines. 

"The complex with the length of about 2 km will allow obtain a concentrate of iron finished products for 20 hours. The annual production capacity will be 1.2 million tons of metallized pellets, 800,000 tons of which will be directed to the needs of the complex for the production of finished products. The remaining 400,000 tons will be purchased by Baku Steel Company for it needs,” he said.

Plants on the territory of the complex will be put into operation gradually, according to the CEO.

"The construction of the entire complex should be completed within 38 months, but the plants will be put into operation when they are built," he said.