Azerbaijan's Aghdam Industrial Park Eyes To Launch Tobacco Production

(MENAFN- Trend News Agency) AGHDAM, Azerbaijan, January 9. The Aghdam Industrial Park plans to launch a tobacco production plant, Elchin Kazimov, spokesperson for the Azerbaijan Economic Zones Development Agency (EZDA) told reporters during a media tour to the park, Trend reports.

According to him, at present, there are 13 industrial zones up and running in Azerbaijan, with nine holding the title of industrial parks and four being classified as industrial districts.

"The Aghdam Industrial Park was established by a presidential decree on May 28, 2021. The goal of creating the industrial park is to restore the liberated territories, develop industrial potential, and ensure employment for the population relocating to the liberated territories.

Entrepreneurs show great interest in the Aghdam Industrial Park, with over 65 percent of its territory already occupied by businesses. Notably, despite its short existence, the Aghdam Industrial Park ranks second in the country in terms of the number of residents, only behind the Sumgayit Chemical Industrial Park," he said.

As per his insights, a total of 29 dynamic business entities have successfully secured resident status, showcasing an impressive investment volume of 271 million manat ($159 million), while four innovative entrepreneurs maintain a non-resident status.

"These 33 business entities in the park are expected to create over 2,400 jobs. To date, residents have invested around 97 million manat ($57 million) in the park, creating 380 permanent jobs. Currently, there are nine operational enterprises in the park.

These businesses produce electrical distribution equipment, electrical sockets, concrete substations; roofing and facade coverings; ventilation and fire-fighting equipment and various metal products; wallpapers; various types of footwear; automation and telemechanics systems; and porous construction blocks," he emphasized.

The spokesperson also pointed out that wallpaper churned out in the industrial park is shipped off to Georgia.

"Products manufactured in the Aghdam Industrial Park are widely used in construction work on the liberated territories and are also sold extensively in the domestic market. Success has already been achieved in the export sector. For instance, wallpaper produced in the park was exported to Georgia, marking Azerbaijan's first wallpaper export. Moreover, negotiations are underway for exporting wallpaper to CIS countries, Türkiye, Iraq, and others," he mentioned.

Kazimov highlighted that roughly 10 enterprises are in the works by different residents of the Aghdam Industrial Park.

"Negotiations are ongoing with European countries for exporting construction footwear produced by one of the residents of the Aghdam Industrial Park. The company has already received a certificate that allows it to export products to European countries.

Overall, industrial zones in the country provide the most convenient business platform for investors. These zones offer all the necessary conditions for entrepreneurial activities, including ready-made infrastructure funded by the state, enabling businesses to implement their projects on a plug-and-play basis," he further noted.

Kazimov also discussed the conditions and opportunities for getting the entrepreneurial ball rolling.

"Residents of industrial parks are fully exempt from property, land, and income taxes, as well as from VAT and customs duties on the import of machinery, technological equipment, and installations for production needs for 10 years from the moment of their registration.

Due to the strategic implementation of VAT and customs duty exemptions on imports, stakeholders in industrial parks overseen by the Economic Zones Development Agency have realized substantial savings exceeding 501 million manat ($294.7 million). Notably, in the initial 11 months of 2024, a remarkable 40.68 million manat ($23.9 million) have been conserved.

Moreover, special benefits apply in the industrial parks located in the liberated territories. These include preferential bank loans, subsidies for social insurance payments, a 20 percent discount on utility services, customs duties on imported raw materials and materials, and full VAT exemption on a specified list," Kazimov concluded.

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