New metallurgy company would be beneficial for Azerbaijan

/By AzerNews/

By Aynur Karimova

The establishment of a state-owned or a joint stock company "Azermetal" would be efficient for Azerbaijan, says Rashid Fataliyev, the deputy head of the Oil and Chemistry Department at the Cabinet of Ministers of Azerbaijan, who also holds a PhD in geology and mineralogy.

"Competition in the global metal market is more rigid than in the oil and gas market. Prices on the [metal] market vary sharply. It would be efficient to manage ferrous and non-ferrous metallurgy enterprises through a single structure in order to cope with the pressure of leading foreign companies, to gain a stable sales market and to achieve sustainable financial capacity," he said in an article published in the official press.

Last year Azerbaijan's ferrous metallurgy companies produced nearly 370,000 tons of steel and cast iron (valve, pipes, structures), some 250,000 tons of which were produced by Baku Steel Company JSC.

Azerbaijan has the most potential for metallurgical production in the region. The territory of the country, which encompasses the eastern portion of the Major and Minor Caucasus mountain ranges, is distinguished with its complex geological structure, diversity, and abundance of minerals.

The country is rich in terms of raw materials, natural resources, and the construction sector on the one hand, and enjoys the experienced personnel necessary to open to a range of opportunities for the development of heavy industry, including the metallurgical industry, on the other.

In January-July 2015 period, Azerbaijani companies engaged in the metallurgy industry, produced fabricated metal goods, and rendering services worth 197.8 million manats ($188.7 million). In the reported period, the production of cast iron in Azerbaijan amounted to 283.2 tons, while 18,318.6 tons of steel piping and 146,600 tons of valves were manufactured.

In the first seven months of 2015, Azerbaijan exported 7,107.4 tons of pipes made from ferrous metals worth more than $6.2 million.