AZERBAIJAN INDUSTRY
Modern industry is one of the aforethought, crucial programs for Azerbaijan`s future development. industrialization of the sustainable economy accelerated in the last years as a result of the successful policy pursued in accordance with the requirements of the new era. Industrial parks and industrial districts play a crucial role in the sustainable development of the non-oil industry in Azerbaijan. Industries created by using local resources, reduction of the infrastructure costs in the organization of the production process, strengthening cooperation between entrepreneurs increases industry in employment. Hundreds of modern industrial institutions started their operations and new industries have been created. The demand for local products has increased significantly. The volume of exports has also increased. If we look at the works done in the previous years, we can clearly see that our country gained some achievements in this area.
According to the Republic of the President of Azerbaijan`s strategic line, which is "Azerbaijan's future development should be involved via the development of the industry", the development of industrialization and the non-oil industry is one of the significant factors of the policy of economic diversification.
The main goal of the approved by the Decree dated December 6, 2016, ”Strategic Roadmap for the development of heavy industry and machinery manufacturing in the Republic of Azerbaijan” is modern regulation in heavy industry and machinery manufacturing. Also, ensuring the dynamic development of the non-oil industry by application of incentive policy is another goal of this decree.
According to the successful industrialization policy, in order to ensure the sustainable development of the non-oil sector and increase the population`s employment in the manufacturing sector, the process of the creation of industrial parks and industrial districts continues successfully. The creation of industrial parks with modern manufacturing infrastructure aimed to develop industrial institutions and ensure the balanced development of the country's economy. Also, it provides development of production and innovation in accordance with the implementation of state policy. increasing the export capacity of the country's economy, as well as the production of competitive, increase of the import-substituting products are important factors in terms of the establishment of industrial parks and sustainable development of the country's non-oil sector. Also, employment in the other regions, investment, and attraction of modern technology play a significant role in this area.
For the development of the country’s industrial production competitiveness by means of innovative and high technology in the country, Sumgait Chemical Industrial Park was established under the Decree of December 21, 2011, of the President of the Republic of Azerbaijan. It is considered to create institutions for the production and processing of competitive products in the petrochemistry and other priority industries in the Sumgait Chemical Industrial Park. The territory of Sumgait Chemical Industrial Park is 508.14 hectares.
Sumgait Chemical Industrial Park already has 24 institutions and 15 of them have already started their operation. In the industrial park, 5.000 billion manats have been allocated for existing projects of institutions, and as well as more than 5.400 jobs have been created.
On January 18, 2021, the foundation of Azersulfat LLC sulphuric acid production plant and Glassica CJSC glass container production plant was laid in Sumgait Chemical Industrial Park. Also, Azerfloat CJSC thermoforming sheet glass plant at the Sumgayit Chemical Industry Park was inaugurated.
Great opportunities are created in the industrial zone of the park, for the activities of institutions in the field of the chemical industry, construction industry, and other industries. There are also some institutions that exist to provide vocational educations.
In addition, Balakhany Industrial Park was established in Baku by the Decree of the President of the Republic of Azerbaijan dated December 28, 2011, for the purpose of supporting of entrepreneurship in the country, organization of industrial enterprises based on modern technologies, and increase of employment. The territory of Balakhany Industrial Park is 10.15 hectares. Totally, 19 institutions were registered in the Park and 16 of them started their operations. The main goal of the establishment of this park is about creating opportunities for potential entrepreneurs and investors interested in the field of reproduction.
Garadagh Industrial Park was established in Garadagh under the Decree №1255 dated June 3, 2015, of the President of the Republic of Azerbaijan. The administrative organization of Garadagh Industrial Park is “Sumgayit Chemical Industrial Park” LLC operating under the Ministry of Economy of the Republic of Azerbaijan. Garadagh Industrial Park has an institution - "Baku Shipyard" LLC. 847.1 million manats were allocated to the industrial park and 2,000 jobs were created.
İn addition, Mingachevir Industrial Park was established under the Decree №1077 dated February 26, 2015, of the President of the Republic of Azerbaijan. Mingachevir Industrial Park is a place that contributes effective operation and development of entrepreneurs. For entrepreneurship, Mingachevir Industrial Park is an area with its necessary infrastructure and management structures. This institution organized for competitive productions based on modern technologies. The administrative organization of the Mingachevir Industrial Park is “Sumgayit Chemical Industrial Park” LLC operating under the Ministry of Economy of the Republic of Azerbaijan.
The groundbreaking ceremony of Mingachevir Industrial Park was held on September 21, 2016, with the participation of the President of the Republic of Azerbaijan. “Mingachevir Tekstil” LLC`s two factories are registered as an institution in the Mingachevir Industrial Park. These factories were put into operation on February 27, 2018, with the participation of the President of the Republic of Azerbaijan. Also, these factories' annual production capacity is 20,000 tons of yarn. The equipment was brought leading companies in Germany, Switzerland, Spain, and Japan. In the factories, more than 700 permanent jobs have been created.
In order to develop the pharmaceutical industry in the country, Pirallahi Industrial Park was established under the Decree №2336 dated September 14, 2016, of the President of the Republic of Azerbaijan. On the other hand, necessary infrastructure services and other services are provided to entrepreneurs in the industrial park where established on an area of 30 hectares. Currently, there are 5 institutions registered in Pirallahi Industrial Park, and 2 of them have already started their operation. Totally, institutions invested 29.1 million manats in the industrial park and 110 jobs were created. Additionally, it is assumed to invest an additional 47 million manat on existing projects and create more than 500 permanent jobs.
In the last years, hundreds of industrial institutions built and started their operations based on the state programs of socio-economic development of the regions of the Republic of Azerbaijan, and thousands of new jobs have been created.
With the order of the President of the Republic of Azerbaijan, No. 288 of 8 October 2014 "On Creation of Industrial Districts and Organization of their Activity" was determined. The main goal of the creation of the industrial districts is about providing favorable conditions for the development of small and medium-sized businesses operating in the industry and increase employment in production and services.
It is determined in the decree that industrial districts are an area for the necessary infrastructure for entrepreneurial activities and these districts are used by small and medium-sized enterprises for the production of goods. İndustrial districts have great importance in terms of reducing infrastructure costs, strengthening cooperation, developing small and medium enterprises, etc. Currently, industrial districts continue their operation in Neftchala, Masalli, Hajigabul, and Sabirabad districts of the Republic of Azerbaijan.
As a result of the Patriotic War, the liberation of the territories occupied for almost 30 years paved a way for the development of the economy of Azerbaijan and created favorable conditions. The industrial potential of the liberated territories is high. Rich water supply, electricity, rich minerals, and industrial recreation opportunities form the basis of the industrial potential of the liberated territories. These factors show that the industrial potential of the liberated territories will contribute value to the country`s economy in the next years.
Azerbaijan became the strong industrial center of the region in the last years and this is proved with the indicators that show the achievements in the field of industry.