First cars of Azerbaijan-Iran joint production launched

The Azerbaijani-Iranian automobile plant, Khazar, located in the Neftchala Industrial Park, launched production of the first cars on April 5.

Manufacturing of Dena, Rana, Soren and Samand models under the Khazar brand as well as a number of Peugeot models is established at the plant.

The Khazar plant plans to export about 20 percent of cars that will be produced before 2020 within the first stage of production, Emin Akhundov, the chairman of the board of AzerMash company, which is a co-owner of the plant, told journalists.

He noted that the main export market of the enterprise is the CIS countries. Akhundov added that negotiations are already underway with representatives of foreign countries.

“Orders on the local market are also being considered. The Ministry of Economy became the first customer,” he added.

The cost of cars to be produced at the Khazar plant will amount to 14,000-16,000 manats ($8,200$9,411), according to Akhundov. By the end of 2018, the plant plans to launch production of new models, which will cost a little more - 18,00020,000 manats ($10,588-$11,764), he noted.

The factory under the Khazar brand produces cars of the brands Dena, Rana, Soren and Samand, as well as a number of Peugeot models.

Thus, a basis will be created for the formation of an efficient and sustainable logistics chain that will ensure the concentration of cargo flows entering the country along the corridors from the north, south, east and west in the new port complex and their transportation from here along the Baku-Tbilisi-Kars railway line to Europe or in an easterly direction by ships.

Also, the creation of the Free Trade Zone (FTZ) that will ensure a wider transit and transport potential of the country is envisaged on the territory of the port.

Deputy Prime Minister of Azerbaijan Abid Sharifov and Chinese Ambassador to Azerbaijan Wei Jinghua signed the acceptance certificate on new equipment.

At the presentation of the equipment handed over to the Port, Sharifov said that over the recent years, the Chinese government has allocated grants worth $70 million to Azerbaijan.

He noted that Azerbaijan has already received more than $60 million in the form of various equipment, and it will further receive equipment worth $7-8 million in the near future.

“In particular, more than 20 units of various necessary agricultural equipment were transferred to Nakhchivan at the end of last year. At the same time, equipment for Azeravtoyol – bulldozers, excavators, graders and other construction equipment – was supplied for several years until the end of July last year,” Sharifov said.

He added that thanks to the Chinese grants, Azerbaijan purchased more than 150 garbage trucks, water trucks, sewer trucks, dump trucks and graders during three years and distributed them among the country’s regions.

“We also ordered a batch of new communal vehicles for the fleet renewal next year,” said Sharifov.

The deputy prime minister added that the Cabinet of Ministers is regularly in touch with the relevant Azerbaijani structures in any sphere and solves issues on the delivery of equipment according to their requests.

“We appreciate the wishes and consider the possibility of acquiring this or that equipment with Chinese grants. The fact is that, according to the conditions, we can only purchase Chinese-made equipment, and there are such types of equipment that are not manufactured in China,” Sharifov said.

He also noted that last year showed a record indicator of trade turnover between China and Azerbaijan – about $1.2 billion.

Ambassador Jinghua noted, in turn, that regular mutual visits of the leadership of the two countries and the signing of numerous documents determined the development of relations between the two countries.

“China pays great attention to the special advantages of Azerbaijan in the Eurasian transport hub. Thus, Chinese companies support cooperation with Azerbaijan in the field of transport and logistics,” the ambassador said.

He added that the equipment transferred to the Baku Port will further increase Azerbaijan’s capacity to receive cargoes and strengthen its role in the region as a trade and logistics center.

Jinghua noted that China hopes that Baku will soon become a major logistics hub on the route from Asia to Europe.

“The Great Silk Road connected our peoples more than 2,000 years ago. After Azerbaijan regained its independence, our historical ties were restored, and now they are being strengthened within the framework of the One Belt and One Road project,” said the ambassador, noting that both countries support each other on all issues.

In 2013, China proposed the One Belt and One Road project that focuses on connectivity and cooperation between Eurasian countries. The strategy consists of two main components: the land-based Silk Road Economic Belt and the ocean-going Maritime Silk Road. The initiative envisages creation of a trade corridor for direct supplies of goods from the east to the west on preferential terms. It is believed that the Baku International Sea Trade Port will become one of the most promising logistics zones throughout the New Silk Road.