Commissioning of rigs for the production of polypropylene and high density polyethylene that are to be built on the territory of Sumgait Chemical Industrial Park will be implemented in 2016-2017, the head of the Azerkimya Production Association (the main manufacturer of chemical products in Azerbaijan) of SOCAR (State Oil Company of Azerbaijan) Mukhtar Babayev told Trend.

He said that according to the plan, construction and commissioning of new plants will take between two and two and one-half years. In particular, preparation of the territory for construction works is carried out within the construction of the rig for the production of polypropylene, and part of the equipment has been already received. Contract work within the framework of the rig creation on production of high density polyethylene also continues.

“Under the plan, launch of the companies will account for 2016-2017,” said Babayev. “Although a correction in the plan is possible, but we do not know in which direction this correction will take place.”

Babayev previously said that rig for production of polypropylene will be commissioned first, and after that the rig for the production of high density polyethylene.

It is scheduled to accommodate 35-40 enterprises, which provides discovery to 10,000 new jobs on the industrial area of Sumgait Chemical Industrial Park. The territory of Sumgait chemical industrial park will be divided into two parts – the administrative and social and industrial zones.

In order to increase the investment attractiveness of the park its residents are exempt from income, land and property taxes for seven years. Also equipment and technology used in the park are exempt from value added tax. Two residents have been already registered there – SOCAR-Polimer and Azertekhnolayn limited liability companies.

The authorized capital of the SOCAR Polimer Company, which was established as part of the development of polymer production in Azerbaijan, was increased from 51 to 100 million AZN. State Oil Company, which is a 100 percent plant founder, sold 49 percent of the share capital to private companies.