Business

China to develop business ties with Azerbaijan, builds new tyre plant

Azerbaijan has signed agreements with Chinese companies worth 821 million US dollars, including the construction of a new Chinese tyre plant with a proposed annual capacity of 3.3 million tyres.

The construction will be carried out in Azerbaijan’s Sumgayit Chemical Industrial Park by Chinese state electrical engineering giant CNEEC, with the Azerbaijan Investment Company taking a 10 per cent share in the project.

“The annual capacity of this enterprise is designed not only for the local market. Tyres will be exported to neighbouring countries, which will naturally serve to increase the export potential of Azerbaijan,” said Azerbaijani economy minister Shahin Mustafayev.

Signed by Azerbaijani president Ilham Aliyev at the second One Belt, One Road International Forum in Beijing, the country’s government will open two new trading houses to promote products on the Chinese market.

“Three Azerbaijani trading houses are currently operating in China. This market is especially interesting for us in terms of the supply of alcoholic beverages and agricultural products,” the economy minister said, adding that trade turnover between the countries exceeded 1.3 billion US dollars in 2018, and that trade volume more than doubled in the first quarter of 2019.

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