TODAY.AZ / Business

Azerbaijan, Iran to build joint industrial town

24 October 2019 [12:13] - TODAY.AZ

By Azernews

By Leman Mammadova

Iran and Azerbaijan have reached an agreement to establish a joint industrial town, and the construction work will start soon, Iranian Ambassador to Azerbaijan Javad Jahangirzadeh has told IRNA. 

In his words, given the great potential for agricultural development in both countries, the construction of the town should create a processing industry for agricultural products.

“The products will be exported first to Azerbaijan and then to the Iranian market as well as to other countries,” he noted.

Jahangirzadeh stressed that the situation in Azerbaijan is satisfactory for Iranian businessmen to develop trade relations with the CIS and Eastern Europe countries.

He underlined that the embassy is ready to give recommendations to Iranian businessmen on the development of economic cooperation with Azerbaijan.

“Both countries are interested in the development of economic relations, and work is constantly underway in this direction,” he said.

Iran exported goods worth $290 million to Azerbaijan in the first half of 2019, which is two times more than the corresponding period last year.

Jahangirzadeh pointed out that the trade turnover is expected to rise to $600 million a year.

Currently, there are 900 free trade and industrial zones in Iran. Azerbaijan has five industrial parks - Sumgayit, Garadagh, Mingachevir, Pirallahi and Balakhani, as well as three industrial districts - Neftchala, Masalli and Hajigabul. In addition, work is underway to launch the Sabirabad industrial zone.

Trade between Iran and Azerbaijan amounted to $400 million in 2018. Over the past years, food products, construction materials and other goods accounted for the largest part of the turnover.

In subsequent years, the structure of trade will change, and its basis will be finished products. The industrial products will enter the trade turnover between the two countries.

The trade turnover between is planned to reach $2 billion in short term perspective. Reaching the $2 billion milestone in trade turnover within 7-8 years can be regarded as success for both countries.

Presently, two countries cooperate within the joint car production plant in Neftchala Industrial Zone, joint pharmaceutical plant Caspian Pharmed in Pirallahi Industrial Park, Khudaferin and Maiden Tower hydro power plants, etc.

Azerbaijan plans to build four terminals in the Iranian city of Astara. These terminals include oil and grain terminals, a terminal for processing containers and a general-purpose terminal.


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