Local company launches furniture export to U.S.

By Azernews

By Leman Mammadova

Azerbaijan eyes to diversify its economy, widely focuses on an export-led growth strategy and aims to expand the list of its foreign trade partners. “Made in Azerbaijan” is an initiative aimed at entering new markets.

Launched in 2016, the “Made in Azerbaijan” brand envisages a large-scale promotion of local non-oil products in foreign markets.

The successful organization of export missions to overseas to promote national products under the Made in Azerbaijan brand boost the non-oil sector of the Azerbaijani economy as well as strengthen business ties with foreign countries.

Foriella, a resident of the Balakhani Industrial Park, has begun exporting furniture to the U.S. under the “Made in Azerbaijan” brand.

The company has already exported the first batch of furniture in the amount of 3,000 sets.

Foriella, operating since 2017, specializes in the manufacturing of furniture products, as well as the production of other types of products from recycled waste.

Up to 4 million manats have been invested by the company to create a production area in the industrial park. The resident was granted the preferential loan by the Entrepreneurship Development Fund under the Ministry of Economy.

About 170 permanent jobs were provided in the enterprise, which bases its production on German, Turkish and Italian technologies.

The company's products are sold in the local market as well as are exported to Georgia, Ukraine and Kazakhstan, and the U.S.

The Balakhani Industrial Park was commissioned in 2017 in order to develop green economy in Azerbaijan. The main goal of this park is to create favorable conditions for potential entrepreneurs and investors interested in recycling industry.

Currently, there are 17 residents in the industrial park, 8 of which are operating. The investments of residents in projects are estimated at 41.5 million manats ($24 million). About 400 employees are currently employed at enterprises in the park and their number is expected to reach 680 due to the implementation of new projects. Taking into consideration the interest of entrepreneurs, the territory of Balakhani Industrial Park has been expanded to 8.3 hectares.

Investors in Balakhani Industrial Park were exempt from various taxes and customs duties for seven years. The management company of the Balakhani Industrial Park is Tamiz Shahar OJSC.

Furniture and other household items are among the most demanded products in Azerbaijan. Today, there is very wide range of furniture choices, and one can found stores for every taste at every corner of the capital and in the regions. 

The furniture industry began to steadily develop in Azerbaijan about ten years ago and now the country has more than 20 companies operating under the national brand. The furniture production in the country grew by 27.7 percent in the first half of 2019.