Plans for Construction of Metallurgical Complex Frozen

The creation of a complex for the production of steel in the city of Ganja is not on the agenda of the government. This is a direct consequence of the decline in oil revenues, out of which the construction of this complex was planned in 2013.

In 2015, public investments were not allocated for this. This is not expected this year either, although it was previously assumed that the complex with a capacity of 1.5 million tons per year will be commissioned in 2018.

On April 23, 2013, CJSC Azerbaijani Complex for the Production of Steel (ACPS) was established in order to create the steel industry. To carry out these plans, the JSC in the city of Ganja was granted 140 acres of land. There were negotiations with equipment suppliers from Germany and Japan, as well as with design companies for the design of plants producing pellets, direct reduction, steel and steel products, and with construction companies. It was planned that in the initial stage, the company will focus on the requirements of various segments of the domestic market (construction, shipbuilding, oil and gas, defense industry, and others.

Last year the Chairman of the Board of the CJSC was dismissed and his powers are exercised by the Vice Minister of Economy and Industry Niyazi Safarov.

The CJSC includes Dashkesan Filizsaflashdyrma OJSC. The Dashkesan mining and processing enterprise in the 11 months of 2015 produced 124.6 thousand tons of iron ore, which is 39.1% more than in the same period of the previous year.

In 2014, in order to organize activities of ACPS the President allocated 5 million AZN from the state budget. In March last year the Cabinet of Ministers in the framework of the construction project for the steel production complex, freed ACPS from paying VAT on imported goods and equipment. ---08B