Azerbaijan, Baku, April 11 / Trend I.Khalilova E.Ismayilov /
The State Oil Company of the Azerbaijan Republic's (SOCAR) Azerkimya intends to move to profitable production, Azerkimya Chief Mukhtar Babayev told Trend.
"Unfortunately, our industry isn't profitable yet, but we are trying to move to cost-effective production by late 2011 by optimizing production and reducing costs," Babayev said.
However, he said, some Azerkimya production facilities are cost-effective, while others are in dire need of repair and reconstruction.
He said the company is advancing the first quarter's planned indicators at five to six percent. However, production will be suspended for 1.5-2 months in the summer due to repair work.
"The company plans to carry out high-quality repairs at chemical plants, which will reduce losses and help us to achieve the planned production figures for 2011," Babayev said.
In addition, the company plans to enter the lucrative industry in 1-2 years. This will be possible through the renovation and reconstruction of the company's enterprises included in the software. There are eight companies producing chemical products in Azerkimya's balance.
Azerkimya attracted funds from the International Bank of Azerbaijan (IBA) for the repairs and raw material imports.
"We have established a good partnership with the IBA, and today the company's credit backlog to the bank is $40 million," Babayev said.
The company also expanded its resource base for chemical production.
Previously, Azerkimya used naphtha as a raw material. Now, it uses C3-C4 gas gasoline and fractions, as well as dry gas.
The company expects to obtain in 2011 a feedstock of 200,000 tons of naphtha, 21,000 tons of natural gasoline from SOCAR's gas processing plant, and 50,000 tons of C3-C4 gas fractions.
The company will get dry gas from the Heydar Aliyev Baku Oil Refinery.