A ferroalloy production plant to be constructed in Sumgayit Chemical Industrial Park is intended to accelerate economic development of Azerbaijan.
The contract about the establishment of the plant was inked between Baku Non-Ferrous Metals & Ferroalloys Company and Turkish Demora company, as part of the "State support for development of the industry” conference held in Baku by Azerbaijan’s Economy Ministry on February 23.
The Baku’s Company has become the fifth resident of Sumgayit Chemical Industrial Park, which will be engaged in the production of ferrosilicon and ferrosilicon manganese.
Other four companies that will operate on the territory of the Park are "Azerbaijan Fibro Cement", "AzerFloat", "SOCAR Polimer" and "Azertexnolayn".
A plant for the annual production of 20,000 tons of ferrosilicon and 36,000 tons of ferrosilicon manganese will be built within the project.
Opening of the plant will create 150 new jobs. The plant's products will be directed both to the domestic market, and to export.
Presidential decree on the establishment of Sumgayit Chemical Industrial Park was signed in December 2011, in order to increase the capacity of the chemical industry, the establishment of private enterprises in this field and produce competitive products from local raw materials, as well as to promote and support entrepreneurship and stable development of non-oil economy in the country.
The area of the Park constitutes 295.62 hectares and resides nearby Sumgayit city that is 32.5 km away from Baku.
The establishment of such an Industrial Center in Sumgayit city not only lead to a boost in economic development of Azerbaijan, but also is a restoration of the historical traditions of Sumgayit founded as an industrial center in the Caucasus in the 20th century.
Established under the Economic’s Ministry, the Park plans to build 35-40 companies, which will open 10,000 new jobs.
In order to increase the investment attractiveness of the park its residents are exempt from paying income, land and property taxes for seven years. Moreover, equipment and technology used in the park are also exempt from value-added tax.
Chemistry and petrochemical industry based on oil and gas processing plays an important role in the economy of the country. Enterprises involved in this sector are located in Baku, Sumgayit, Ganja, Salyan and Neftchala.
Last year, the value of chemical products produced in Azerbaijan constituted 200.1 million manats ($128 million).