Baku, Azerbaijan, April 25
By Ilkin Shafiyev - Trend:
Azerbaijan’s AzerMash OJSC and Russia’s GAZ Automobile Plant Ltd. plan to invest 14 million manats in the construction of a plant in the Hajigabul industrial district in Azerbaijan, AzerMash OJSC told Trend April 25.
The joint plant’s construction is envisaged as part of the Memorandum of Cooperation signed by the sides April 23 within the visit of Russian Minister of Economic Development Maxim Oreshkin to Baku.
AzerMash OJSC said that 1,000 light-duty trucks will be produced annually at the plant, which is planned to be launched in 2019. The plant will meet the needs of the Azerbaijani market, and in the future, it is planned to supply trucks to other countries.
It is expected that at the initial stage, 80 people will be provided with work at the plant, and later, when the plant reaches full capacity, 150 people will be provided with work.
GAZelle Next and GAZelle Business light-duty trucks, as well as GAZon Next medium-duty trucks, will be assembled at the plant. A number of components for the trucks will be produced in Azerbaijan. In addition, a GAZ branded dealer center will open in Baku in May this year.
Azerbaijan has already established production of some trucks and cars at the Ganja and Nakhchivan automobile plants. However, current production volumes don’t meet the demand in the Azerbaijani market.
Thus, vehicles worth almost $200.75 million were imported to Azerbaijan in the first quarter of 2018, which is three times more than in January-March 2017, according to the country’s State Customs Committee.
Opening of new car plants in Azerbaijan will help reduce import volumes and stabilize prices for cars, according to experts.
(1.7 manats = 1 USD on April 25)