New producer of tobacco products to appear in Azerbaijan

Tabaterra, the manufacturer of tobacco products, became the 13th resident of the Sumgayit Chemical Industrial Park.

Economy Ministry reported that the volume of production of tobacco products at the company’s plant will be 7 billion cigarettes. In total, Tabaterra will produce three types of tobacco products and 200 people will be involved in the production process.

Following significant cigarette import in the amount of 9 billion costing $150 million to Azerbaijan, the state made a call to increase tobacco production.

With 47-percent smoking population, who use in the average 15 cigarettes a day, Azerbaijan produce only 1.6 billion cigarettes from over 10 billion consumed in the republic.

Today the government targets to double production of tobacco by 2021 from the current 3,200 to about 6,000 hectares, by increasing the capacity of the existing cigarette factories and establishing the new ones.

The recent five-year program approved for the development of the tobacco production in Azerbaijan, is going to decrease import of foreign products. Today, domestic production provides only 16-17 percent of consumer demand, and the implementation of the state program will bring this figure up to 70 percent.

The Sumgayit Chemical Industrial Park (SCIP) was established by the decree of President Ilham Aliyev, dated December 2011.

The main goal in establishment of the SCIP is acceleration of economic development of Azerbaijan, increasing competitiveness in comparison with other countries that are leading in terms of development of innovative industry.

Territory of the Sumgayit Chemical Industrial Park, which has huge infrastructure, is 466.3 hectares. Industrial zone of the park will be 192 ha, according to master plan of the SCIP.

The priority of the economic policy realized in the country is development of non-oil sector. With this purpose, basing on “Azerbaijan 2020: Vision” stronger measures are taken for development of innovative entrepreneurship in the country, establishment of favorable environment for promotion of new activity types and products, transfer and appropriation of cutting-edge technologies. Technoparks and innovation zones are established for processing and application of scientific products in Azerbaijan.

Petro-chemical industry is an inseparable part of development of the country economy. This sector provides production chains with engineering-installation, machine-making, automobile, food and other industry fields with technical and wares. Countries rich with oil and gas possess cheaper raw materials resources and by using this advantage they establish industrial facilities, including technoparks and industrial parks.

Apart from that, there are four more Industrial Parks in the country, mainly Balakhani, Garadagh, Mingachevir and Pirallahi Industrial Parks.

Earlier, Economy Minister Shahin Mustafayev stressed that as much as $800 million have been invested in five operating industrial parks of Azerbaijan so far, adding that about 5,000 new work places have been created thanks to the industrial parks.

Moreover, industrial zones operate in the country and one of them is Neftchala Industrial Zone.

Next such a zone is planned to be created in Hajigabul district. A total of 4 million manats ($2.35 million) is allocated from the Presidential Contingency Fund for the establishment of the Hajigabul Industrial Zone.

Residents of Azerbaijan’s industrial parks, zones are exempted from property, land, corporate income taxes, as well as VAT for imported equipment.



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