(MENAFN - AzerNews) By Mirsaid Ibrahimzade
Increasing number of plants operating in the non-oil sector promises very good prospects for Azerbaijan to diversify economy, reduce its dependence on oil and gas sector and increase the inflow of foreign currency into the country which feeds the investments in non-oil sector.
Khayal Jafarov, Director of Mineral Fertilizer Plant SOCAR Carbamide said the plant has begun selling carbamide to Azerbaijan's Agroleasing company.
The volume of the first batch delivered by Agroleasing amounted to 25,000 tons.
Jafarov noted that this is the first collaboration of SOCAR Carbamide with Agroleasing and as a result, farmers in the country will be able to purchase carbamide, which is one of the most sought-after fertilizers, at affordable prices.
'This, in turn, will lead to increased productivity, food security of the country and helps to reduce the cost of agricultural products, he added.
Khayal Jafarov emphasized that the plant expects to sell up to 30 percent of its products in the local market and the rest is intended for export.
SOCAR carbamide plant is the biggest project in Azerbaijan, implemented in the non-oil sector. Its total cost is about 800 million euros, 197 million euros of which were allocated from the state budget of Azerbaijan, 500 million euros were provided via borrowed funds, and 80-85 million euros were allocated from tax and other deductions to the budget during construction, which SOCAR paid for from its own funds.
SOCAR Carbamide Plant reportedly began exporting carbamide in June.
Agroleasing is the major supplier of fertilizers in the local market and before the start of carbamide production in Sumgayit, the entire volume of fertilizers was imported into the country.
Chairman of Agroleasing Elmin Rakhmanov said carbamide fertilizers produced in Azerbaijan will contribute to improving productivity in agriculture.
Since May, when production began at the plant, about 60,000 tons of carbamide were produced here, 45,000 of which were exported to Turkey and Ukraine and the local company Azfert.
As previously reported, Agroleasing signed in July 2019 a contract with the SOCAR Department for Foreign Economic Relations for the purchase of urea fertilizers worth 10.5 million manat.
Interesting fact is that Azerbaijan's domestic demand for carbamide is from 100,000 to 150,000 tons per year. So taking into account that the plant's capacity for the production is approximately 660,000 of carbamide, up to 500,000 tons per year of finished products will be exported.
The primary market of the exports is Turkey, the countries of the Black Sea region and the Mediterranean.
Mirsaid Ibrahimzade is AzerNews' staff journalist, follow him on Twitter:@MirsaidIbrahim1
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