Sumgait Chemical Industrial Park attracts $1.2B in investments

Economy Minister Shahin Mustafayev has revealed that investments in the Sumgait Chemical Industrial Park (SCIP) reached $1.2 billion as of today.

He announced about this at an event dedicated to presenting a certificate to one more resident of the SCIP on April 14.

“Ten residents have been registered in the Sumgait Chemical Industrial Park alone. Of these, I would like to mention Azertexnolayn CJSC that has already started production,” Mustafayev said, adding that 52 percent of the company's products are being exported.

Mustafayev noted that five more enterprises will start operating in the Park in 2017, which will be engaged in production of import-substituting and export-oriented products.

The Park, which was established to promote industrial production, employment, sustainable development of non-oil sector, and business support in Azerbaijan currently covers an area of 295.5 hectares. All residents are exempted from property, land, corporate income taxes, as well as VAT for imported equipment.

The minister further added that next industrial zone will be created in Azerbaijan’s Hajigabul region.

“Currently, a number of projects are being implemented in the Neftchala industrial zone,” said the minister.

The construction work is underway on creation of the Masalli industrial zone, he said, adding that the selection of regions for new industrial zones continues.

The economy minister further said preparations are ongoing for start of the work of enterprises in the Balakhani Industrial Park as well.

“I believe five companies will start functioning in the Balakhani Industrial Park in May-June 2017,” Mustafayev said.“As for other industrial parks – a shipyard is already operating in the Garadagh Park and foundation of two plants, construction of which will begin soon, has already been laid in the Pirallahi Industrial Park. I believe one of these plants will start functioning in 2018.”

Mustafayev noted that the creation of industrial zones will significantly affect the development of non-oil sector of the country.

Main objective of the establishment such parks in the country are the creation of favorable conditions in the country for further development of industrial production, provision of support to entrepreneurs, and increasing employment of population in the sphere.

Later, the certificate of the 10th resident of the Sumgait Chemical Industrial Park was presented to the STDC LLc.

Farid Jafarov, director general of SOCAR Polymer company, which is one of the SCIP residents, said that a new polypropylene production plant is planned to be commissioned in the Park in the first quarter of 2018, while a polyethylene production plant in the third quarter of 2018.

The construction of the biaxially oriented polypropylene film production plant is estimated at $32 million, he said addressing the event.

The total cost of SOCAR Polymer’s project is $750 million, 60 percent of which is financed through Gazprombank JSC. Gazprombank granted a ten-year loan for the project in June 2015.

The products of the SOCAR Polymer will be used for the production of high pressure gas, sewage and water pipes, packaging, textiles, stationery, automotive components, electronic and electrical appliances, and medical industry.

Thirty percent of the plant’s output will be directed to domestic market, while 70 percent – for export to Turkey, Europe and CIS countries.