Azerbaijani combi boiler producer discloses timeframe to resume activity

Business Materials 12 May 2020 14:12 (UTC +04:00)

BAKU, Azerbaijan, May 12

By Matanat Nasibova - Trend:

Elektrogas LLC, an Azerbaijani-Chinese joint venture, producing heating systems, practically suspended its activity since April of this year due to lockdown amid coronavirus pandemic, the company’s Director Elnur Jamilli told Trend.

Jamilli added that in addition, China fully suspended export of respective raw materials to Azerbaijan, which also impacted on suspending the plant’s activity.

According to him, the plant will restart at full capacity in June 2020.

“We expect to resume the production in early June. Earlier, it was planned to restart the enterprise in April, but due to extension of the quarantine regime the enterprise’s work was fully suspended,” Jamilli said.

“There is a great demand for the plant products in the domestic market, therefore, we are going to significantly increase production after the plant starts operating again at full capacity," the director noted.

He said that last year the enterprise sold more than 3,000 units of combi boilers domestically.

“The plant produces combi boilers with power from 24 through 52 kW. In the future, we are going to increase these indicators to 100 kW. The enterprise produces six types of combi boilers, three of which are intended for export. The cost of one combi boiler in the local market is 450 manat [$264.7], with a two-year warranty period,” added Jamilli.

The plant for production of combi heating systems established through the support of the Agency for Development of Small and Medium-Sized Enterpises was opened in August 2019.

Local and Chinese investments in the amount of 2 million manat (over $1.1 million) were attracted to establish the company. In the future, it is planned to increase investment to 11 million manat ($6.4 million).

The Elektrogas LLC is located in Baku’s Zabrat settlement.

The production capacity of the plant, which is a joint Azerbaijani-Chinese venture, is 120,000 units per year.

The current number of employees at the plant is 30, and further it’s planned to open another 200 jobs.

(1 USD = 1.7 AZN on May 12)