Foundation of the Azerbaijan-Iran joint pharmaceutical plant in the Pirallahi Industrial Park will be laid in January 2017, Azerbaijani Economy Minister Shahin Mustafayev said.
Iran’s Minister of Cooperatives, Labor and Social Welfare Ali Rabiei will take part in the groundbreaking ceremony of the plant which is an Azerbaijan-Iran joint enterprise, Mustafayev said.
Over $30 million will be invested in the creation of the joint venture.
In April, Iran’s Darou Pakhsh Holding Company inked a memorandum of understanding with the Azerbaijan Investment Company and Azersun Holding in Baku as part of this project.
In the joint enterprise, 49% of the shares belong to Iran, while 25% go to the Azerbaijan Investment Company and 26% to Azersun Holding.
The plant will be commissioned within two years. It is expected to produce dozens of essential drugs for treatment of heart diseases, detox from alcohol, contagious diseases, non-communicable diseases, as well as various types of antibiotics and painkillers.
The minister said the organization of a production site of the Iran Tractor Manufacturing Company in Azerbaijan’s Neftchala industrial quarter is also being mulled.
He reminded that construction of an Azerbaijan-Iran car plant was currently underway in the Neftchala industrial quarter.
A groundbreaking ceremony for the construction of the plant was held in August.
The project is estimated to cost $15 million and the Iranian side is expected to provide 25% of the total cost.
Four Iranian car brands – Dena, Runna, Soren and Samand – will be produced at the new plant with a capacity of 10,000 cars per year.
The project representatives announced that about 20% of the produced cars would be exported. (Trend/Business World Magazine)