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SOCAR Carbamide Plant starts supplying carbamide to Azerbaijani domestic market (PHOTO/VIDEO)

Economy Materials 15 July 2019 17:44 (UTC +04:00)

Baku, Azerbaijan, July 15

By Kamala Mammadli – Trend:

The SOCAR Carbamide Plant, which focuses on the production of mineral fertilizers, has begun the sale of carbamide to Azerbaijan’s Agroleasing company, Trend reports referring to the plant’s director Khayal Jafarov.

The volume of the first batch delivered to Agroleasing consisted of 25,000 tons of fertilizers.

“This is our first collaboration with Agroleasing. 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, ensure food security in the country and help reduce the cost of agricultural products," Jafarov said.

He also noted that the plant expects to sell up to 30 percent of its products in the local market, with the rest being reserved for exports.

Agroleasing is the main supplier of fertilizers on the domestic market. Prior to the start of carbamide production in the city of Sumgayit, the fertilizers (in their entire volume) were being imported into the country.

According to Chairman of Agroleasing Elmin Rahmanov, carbamide fertilizers produced in Azerbaijan will contribute to increasing 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 sent to the local Azfert company.

As previously reported, Agroleasing signed a contract with the Marketing and Operations Department of SOCAR for the purchase of carbamide fertilizers worth 10.5 million manats in July 2019.

The SOCAR Carbamide Plant was commissioned on January 16, 2019. The plant contains production sites for the production of ammonia, carbamide and carbamide granules, with 1,200 tons of ammonia and 2,000 tons of carbamide to be produced daily. The company expects to receive up to 160 million dollars from exports annually.

The total cost of the plant’s construction amounts to 780 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.

Agroleasing company is a part of the structure of the Ministry of Agriculture of Azerbaijan.

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