TODAY.AZ / Business

Paper processing plant to open in Azerbaijan

09 October 2008 [15:30] - TODAY.AZ
Azersun Holding has started construction of a new paper wastes processing plant in Sumgayit.
At a press conference today the holding representatives announced that the paper processing plant will have an annual capacity of 50,000 tons. "Construction works have started and equipment, meeting present-day world standards, has been purchased", said chief of department for business and investment management of Azersun Holding Mehran Mamedov.

The overall volume of investments to the project makes $30 mln with a certain part likely to be raised as a loan. "Currently, we are negotiating with the Islamic Development bank, which usually assumes crediting of up to 40% of the project cost. But it is now difficult to specify the volume of the credit and conditions, under which it can be allocated", said Mamedov.

He noted that consultations are also held with the Azerbaijan Investment Company about its possible participation in the project. "AIC is already a participant of two projects of Azersun Holding and we would be glad if it joins this project as well", Mamedov told Day.Az correspondent.

As for the crude for the plant, it is planning to create 30 points of paper waste collection throughout the country. This wastes will be purchased by the country. "The waste prices will be set by the moment of the enterprise launching, planned for the fourth quarter of 2009", said the holding representative.

The processing will produce industrial paper. "Currently the internal need of Azerbaijan for paper makes 40-42 mln tons. we will export the remaining part of the production abroad", said Mamedov.

The new plant will help create 1150 jobs of which 900 will be opened at the paper wastes collection points and 250 directly on the plant.

/Day.Az/
URL: http://www.today.az/news/business/48102.html

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