Domestic and foreign companies make investment proposals
Economy09 February 2016, 18:07 1612
On December 21, 2011, President Ilham Aliyev signed a decree "on foundation of Sumgait Chemical Industrial Park”. The head of state attended the groundbreaking ceremony of the Sumgait Chemical Industrial Park (SCIP) on October 3rd, 2013.
Deputy Director of Sumgait Chemical Industrial Park LLC Zaur Memmedov has answered to questions of "Kaspi”.
What is the purpose of establishing the SCIP ?
At this stage, main goals are ensuring balanced and sustainable development of the state economy, promoting social welfare, growth of non-oil sector and enlarging the export potential. Foundation of industrial parks may be assessed as one of significant steps in this direction. The Sumgait Chemical Industrial Park has been established in order to support entrepreneurship and provide sustainable development of the non-oil sector, as wel as to establish competitive industrial enterprises with modern standards and increase enployment in production field. The "Sumgait Chemical Industrial Park" LLC is under subordination of the Ministry of Economic Development and responsible for granting of permits, preparation and coordination of projects, infrastructure maintenance and other general activity of the Park. In 2013, a groundbreaking ceremony of the Park was held and construction works have kicked off.
At first, the park's territory was 167.66 hectares, however taking the interest and future prospects shown to the Park into account, additional land allocated for the park. Thus, the current area of the Chemical Industrial Park is 295,62 hectares. 35-40 enterprises were planned to operate at the Park. The Chemical Industrial Park is divided into two zones: Industrial and social zones.
According to master plan of the SCIP, the industrial zone of the park will be 192 ha. Those will include territories planned for production of agricultural, medical, consumer, construction industry, electronics and automotive chemicals, polymers and industrial equipments.
Great opportunities will be set up in the social zone, which was designed in modern style and covers 21 ha, for residents of the park. Here, a 16-floor and a 20-floor administrative buildings, exhibition-conference complexes, vocational school, laboratory, workshops, kids care center, open-air and covered sports complexes, health center, dormitory complex, also other objects to serve residents and workers will operate. Offices of category "A” and and business services for various purposes will be provided for residents here. Office of the Sumgait Chemical Industrial Park LLC, workrooms, business incubators, conference halls, meeting rooms, Scientific-Technical Center, VIP boutique hotel, business restaurants and other services will be located in these buildings. As well as, residents of the park will be provided with 24-hours security, firefighting and medical services.
Two years have passed since the groundbreaking ceremony of the park. What works have been done so far ?
According to master plan of the Chemical Industrial Park, works for establishing extensive infrastructure network have been kicked off from the beginning of 2013 and works are underway. Construction of underground infrastructure network of the Park has already finished. Waste water, sewerage and drainage lines on the territory of the Sumgait Chemical Industrial Park have been set up. At the same time separate lines flow of domestic, processing and rain waters were set up. Special drainage and sewerage system will provide flow of processing water into channel.
The Azerbaijani government funds all infrastructure of the Industrial Park. The Logistic Center will operate at the Park in order to create condition for the supply of various goods and commodities. The center will provide transportation of various types of cargo, including raw materials, finished products and equipment. So as to serve residents a railway junction connecting to the main railway line will be constructed in the Sumgait Chemical Industrial Park. Loading-offloading point will be located near the railway junction. Administrative building of railway station will be constructed near the loading-offloading point of the Industrial Park. Front offices, working and technical rooms will be in these buildings. Furthermore, Vocational Training Center that 500 sutedents could study will open in the area of the Park. Here close to 30 vocational trainings on chemical, construction and mechatronics spheres will be carried out. At the industrial park 3 oractice workshops expected to be built.
How many enterprises operate at the SCIP currently and what do they produce ?
Despite passing little time since establishment of the Industrial Park, 4 companies: "Azertexnolayn” LLC, "SOCAR Polymer” LLC, AzerFloat” CJSC and "Azerbaijan Fibro Cement” LLC have got residential status of the Sumgait Chemical Industrial Park.
The involved investment volume of residents in accordance with projects is 1,1bln dollar. The first resident of the Sumgait Chemical Industrial Park "Azertexonlayn” Limited Liability Company’s three factories operate. They are the Steel Pipe Plant, the Polyethylene Production Plant and the Technical Equipment Plant. The enterprise situated in 24 ha area of the industrial Park manufactures steel pipes, polyethylene pipes in various diameters and injection products on the basis of Turkish, German, Italian, Japan, Chinese technologies. More than 630 employees have been provided with job.
Other resident of the SCIP is the "SOCAR Polymer” that situated in 30 ha area of the PARK. The "SOCAR Polymer” will manufacture 180 thousand tons of polypropylene (PP) per year on the basis of Canadian "LyondellBasell Varennes” technology, 120 thousand tons of polyethylene (high density) HDPE a year on the basis of Austrian "Borealis Schwechat” technology.
Raw materials that to be produced (PP and HDPE) will stimulate creation of hundreds small and medium-sized businesses. President of Azerbaijan Ilham Aliyev attended the groundbreaking ceremony of HDPE Plant of the "SOCAR Polymer” LLC on October 25th, 2015. The enterprise will use domestic raw material, propylene and ethylene produced in "Azərikimya” Production Union in production. During construction period 1200 employees, then while production process 300 employees will be provided with permanent job. 750 mln dollar has been invested by the company.
The SCIP resident "AzerFloat” CJSC will produce glass sheets on Float technology at the area of the industrial park. Within the project it is planned to build a sheet glass maker plant with production capacity of 8 million sq m a year. The plant’s staff will consist of 150 people. The enterprise’s output will also be directed for exports.
Anotehr resident of the industrial Park is "Azerbaijan Fibro Cement” LLC will produce fiber cement sheets. The plant is expected to produce over 6 million m3 of the fiber cement products per year.
Are goods manufactured in the enterprises located at the Park area exported abroad ?
- "Azertexnolayn” LLC signed contract totaling 40 mln dollars with Turkmenistan on sale of pipes for construction of Turkmenbashi port. Initially, 20 thousand tons of pipes was ordered. In general, sale of 60 thousand tons of pipes is expected by the end of 2016. A part of raw material for productions of "Azertexnolayn” LLC is brought from neighbouring countries. After putting into operation of Azerbaijani Steel Production Complex domestic raw material will meet demand.
Do domestic and foreign investors show an interest in the SCIP?
-Famous companies specialized in the chemical industry show an interest in investment in the Sumgait Chemical Industrial Park. Thus, companies of Canada, Germany, Japan, France, Italy and Turkey, as well as, domestic companies have expressed their intention to be a resident of the Sumgait Chemical Industrial Park. Moreover we have got near 20 potential investment proposals. Proposals are mainly projects on petrochemical, pharmaceutical, chemicals, construction industry fields. The proposals are being reviewed and they are in a validation stage.
What are the future plans of the park ?
For ensuring long-term development of the industrial park, establishment of "research and development" is an important and necessary aspect. Existence of Vocational Training Center, training center and practice workshops, Science and Technology Center, modern laboratory complex at the the Sumgait Chemical Industrial Park allow to establish work in "research and development” sphere. In addition, an agreement has been reached with leading Azerbaijani Universities, Research Centers and Institutes and specialized agencies in line with international research and development. Moreover business incubators will be established within the Sumgait Chemical Industrial Park. In 2014, a memorandum of understanding (MoU) has been signed with some companies. As an example, the SCIP signed MoU with a French company "Air Liquide” on exploring the possibilities of industrial gases. Furthermore, "Azərbaycan İnvestisiya Şirkəti” OJSC, "Sumqayıt Kimya Sənaye Parkı” LLC, "SouthWest NanoTechnologies” (SWeNT) signed trilateral memorandum of understanding.
According to the memorandum, AİŞ and "SWeNT” will corporate on production of carbon naotubes in the area of the SCIP. MoU has been signed with French company " ALSTOM” in order to support the organization of "research and development” work at the Sciences and Technologies center, to be established at the Park for growth of scientific –technological potential.