Failed cotton plants exhibited for privatization

Azerbaijan for privatization through investment competition exhibited 30% stake in two ginneries. On the background of monopolization in the refining and export of cotton fiber, as well as the decline of cotton production, the enterprises are actually bankrupt.

Investors are offered 30.03 % of the shares JSC Imishli-Pambiq and 29.96 % stake in JSC Agjabedi-Pambiq nominal value of 517 300 and 594 400 manat respectively. For those shares applicants must offer at least 142 000 and 165 000 manat. The main requirements to the investor are to improve cotton processing and the expansion of its sales.

These ginneries are controlled by LLC MKT Istehsalat Kommersiya, which also owns 12 other enterprises of the kind. The company has its own textile company in Baku and operates manufacturing facilities at the Ganja cotton spinning mill.

Cotton companies in Azerbaijan after the privatization of their controlling stakes in 1998 almost got into a difficult financial situation. LLC MKT Istehsalat Kommersiya signed an agreement with them, according to which, the cost of services for cotton processing was paid. As a result of the accumulated tax debts, depreciation, etc., as of April 1 this year the commitments of Imishli-Pambiq reached AZN 1,270,800, and those of JSC Agjabedi-Pambiq reached 1,096,400 manats.

In both areas in recent years, the production of cotton declined: in 2012 in the Imishli district there was collected 4212 tons (7.2% less than in 2011), while in Agdjabedi there was collected 5521 tons (down 27.3%) of raw cotton.

In 2013 JSC MKT Istehsalat Kommersiya privatized 30% stake in JSC Beylaqan-Pambiq. The amount of investment in this company is not reported. Trough investment tender the company privatized 30% stake in JSC Sumqayit Khovlu Iplik (Sumgait factory of bulky yarn), which is now idle. - 08B-