Another Foreign Company Leaves Local Market

Another foreign company has closed in Azerbaijan, this time the Italian company Maccaferri - developer of integrated solutions in the field of engineering protection of territories.

Regarding the closure, the Taxes Ministry of Azerbaijan newspaper wrote that the creditors for the settlement of claims should contact the address: Baku, Nasimi district, Rashid Behbudov Street, 59, apartment 63.

Maccaferri, which is more than 130 years old, with its headquarters in Bologna and 70 subsidiaries spread across more than 100 countries around the world, has about 3 thousand employees.

This is not the first such case against the background of the devaluation of the manat and fall of profits from the sale of hydrocarbons. As the State Statistics Committee reported on the results of 2015, 71 foreign companies and their representative offices stopped their activities in Azerbaijan, causing job cuts and decrease in the transfers to the state budget. Moreover, this means investment outflows, which is so often discussed by the country's political leadership. The closing of organizations with foreign capital is in waves - there were two major waves of mass exodus from the local market - after the devaluation of February 21 and December 21 last year.

There are many known examples and they are all connected with companies specializing in servicing oil projects, ICT and development of the state budget funds. An indicative case was with the Italian company Todini, engaged in construction of roads, together with JSC Azeryolservis. Last year, the French Technip Maritime Overseas, affiliates of Italian Maccaferri Azerbaijan and Turkish Anel Telekomunikasyon Elektronik Sistemleri Sanayive Ticaret Anonim, and the representative of the British Amec Process & Energy Limited left Azerbaijan. --17D-