Azerbaijan-Russia joint venture makes profit for first time
Azerbaijan, Baku, June 30 / Trend , N. Ismayilova/
Azerbaijan-Russia AzRosPromInvest joint venture which is specialized at refining bentonitic clay made profit in the first half of 2009 for the first time, company's Director Natig Shirinzade said.
"The plant for production and refining of bentonitic clay from Dash Salahli field in the Gazakh region started work in January 2009. It made profit in June despite world financial and economic crisis," Shirinzade said.
To manufacture its products, the JV leased industrial areas in the territories of Azerbaijan and Russia, which prevented the company from making profit. But in January the plant was completely built and has begun to work independently, which helped it to make profits.
He said the crisis has a positive impact on the development of the venture and its profits are enough to repay all debt and make future plans. The company employs about a hundred people and the payment of salaries is delayed for a month and a half.
"The company is constantly improving technology and restructuring and we are already thinking about expanding marketing of their products," Shirinzade said.
Production capacity of the plant is 250,000 tons of mechanoactivated bentonite clay per year, 100,000 of which accounts for recycled bentonite powder.
Total of $24 million will be allotted for the project of extraction and processing of bentonite clay from the Dash Salakhli field in Gazakh compared to the previous $12 million. Azerbaijan will pay $12 million of the amount. Previously, Azerbaijan had to make $6million in real estate under the territory of the plant, while the Russian had to invest $12.5 million in cash. Today $18 million have already been invested.
The area of the JV is 345 hectares, of which 180 hectares of which is located under the field.
The term of the contract for the joint project has been revised and prolonged from 25 years age to 50 years.
The reserves of the Dash Salahli field are 83 million tons.
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