He said that the modernization process of the Ethylene-polyethylene plant has three stages.
The first stage will be completed in October 2017, the second stage – in the summer (in July-August) of 2018 and the final stage of modernization will be completed in the summer of 2019, when automatic machinery, furnaces and others will be fully installed, explained Babayev.
In general, the work is being conducted in line with schedule, he said adding that expenditures for modernization amounted to nearly 30 million euros in 2016.
“We will have to pay additional 80 million euros in the coming month so that the work can be carried out. The financing is carried out both thanks to the loans, and by Azerbaijan’s state oil company SOCAR,” he added.
Babayev went on to say that the SOCAR Polymer project is currently being implemented on the territory of the former factory of organic synthesis.
“Today, the Azerikimya Production Union includes two enterprises. However, the main task was to gradually evaluate the prospects of old production facilities and the territory of unviable and economically unprofitable facilities should have been cleaned and given to the Sumgait Chemical Industrial Park. This process continues. Nine residents have already been registered there and construction is being carried out. The Sumgait industrial zone is still developing. Not only petrochemical, but also textile enterprises are operating there and a large production park has been created,” he said.
The Sumgait Chemical Industrial Park (SCIP) was created in 2011. Currently, nine residents are operating in the industrial park. Total volume of investments to be injected in the park is $1.1 billion.
Residents of industrial parks have a number of preferences in Azerbaijan, including exemption for seven years from taxes on profit, land and property. Meanwhile, the equipment imported by them is not a subject to value-added tax and customs duties.
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