TODAY.AZ / Business

SOCAR Polymer signs four-party Memorandum on making polymer products in Azerbaijan

30 July 2018 [12:45] - TODAY.AZ

By Azernews


By Sara Israfilbayova

“Sumgayit Chemical Industrial Park” LLC, Agency for development of small and medium-sized enterprises, “SOCAR Polymer” LLC and companies-consumers of polymer products have signed a Memorandum of understanding in Baku on July 28.

The signing took place during the event, entitled “Organization of the production chain from raw materials to finished products”.

The signing of agreements on the production of polymer products with 18 companies took place on July 30.

The event was attended by Deputy Minister of Economy of Azerbaijan Niyazi Safarov, Chairman of the Board of the Agency for development of small- and medium-sized enterprises Orkhan Mammadov, Director General of the Sumgayit Chemical Industrial Park Nazim Talibov, and Director General of SOCAR Polymer company Farid Jafarov.

Addressing the event, Azerbaijani Deputy Economy Minister Niyazi Safarov said that SOCAR Polymer is the largest project implemented in recent years in the non-oil sector of the economy of Azerbaijan.

“It is planned to create clusters around the enterprise, and local companies will be able to use the products manufactured by those clusters. The project is important in terms of creating a production chain,” he noted.

Safarov went on to say that the role of industry in the development of the economy is invaluable, adding that Azerbaijan’s non-oil industry has grown by nine percent in the first six months of 2018.

In turn, Farid Jafarov stressed that some 200 million manats ($117.65 million) were saved during implementation of the SOCAR Polymer project.

“Azerbaijani enterprises will be able to use the factory’s products as final products. We are ready to provide them with technical support and establish partnerships with them,” he said.

The SOCAR Polymer project is being implemented at the Sumgayit Chemical Industrial Park. The production capacity of SOCAR Polymer factory at the first stage will amount to 120,000 thousand tons of polyethylene and 180,000 tons of polypropylene. The total capacity of the factory can reach 570,000 tons of products by 2021.

The factory will produce 19 types of products made of polypropylene and 12 types of products made of high-density polyethylene. The products will be used, in particular, in the food and medical industry, as well as in agriculture and automobile production.

The total investment costs of the project are estimated at $816 million. The credit in the amount of $489 million has been allocated to SOCAR Polymer by Russian “Gazprombank” for a period of 10 years.

Speaking at the event, Nazim Talibov said that the total amount of investments in five industrial parks on the territory of Azerbaijan is $2.6 billion.

Talibov noted that it is planned to create an additional 7,500 new work places.

“In 2011, it was expected that about 10,000 people will be employed in industrial parks, today this figure is 11,000.In the future, in industrial parks, an additional 7,500 new work places will be created,” he explained.

Touching upon the activities of the Sumgayit Chemical Industrial Park, Talibov noted that currently the investment in the park is about $2 billion, while at the initial stage this figure was $860 million.

“Today there are about 8,000 people working in the industrial park, although at the initial stage this figure was several hundred. The turnover of the industrial park is growing every year, if in 2015 this figure was 24 million manats ($14.12 million), in 2017 it was 140 million manats ($82.35 million). This year we expect a turnover of about 200 million manats ($117.65 million),” Talibov underlined.

Taking his turn, Orkhan Mammadov stressed that the effectiveness of the Agency’s activities in the development of small and medium-sized businesses will be determined by the level of justification of the expectations of entrepreneurs from the work of this structure.

Speaking of the measures implemented in such areas as the Agency’s creation of mechanisms that stimulate the activities of small and medium-sized businesses, the protection of the interests of entrepreneurs, further improvement of the business environment, support services that will be provided in connection with the proper organization of work of entrepreneurs, etc., the head of the Agency stressed that special attention will be paid to the needs of entrepreneurs.

“One of the priority areas of our activity is to support the small and medium business sector within the framework of organizational models successfully applied in the world practice. From this point of view, work is being done to create clusters and the necessary legal and economic bases,” Mammadov said.

In this regard, the head of the agency invited entrepreneurs to close cooperation with the structure.

URL: http://www.today.az/news/business/172385.html

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